Proj

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INSTITUTE OF ENGINEERING & MANAGEMENT KOLKATA

4th Semester

Post Graduate Diploma Marketing Dissertation

PROJECT REPORT

On

Consumer Behavior towards Smartphone Industry in Indian Market

SUBMITTED BY: SUROJEET BASAK

Roll No: PGDM/2013/043

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CERTIFICATE

This is to certify that the project report on


Submitted in the partial fulfillment of the requirement for the award of the degree of

Post Graduate Diploma in Management

To

INSTITUTE OF ENGINEERING & MANAGEMENT, KOLKATA

Is a record of bonafide dissertation carried out by

MR. SUROJEET BASAK

Under my supervision and that no party of this report has been submitted for the award of any other

degree/diploma/fellowship or similar titles or prizes

Faculty Guide: Mr. Shamik Pal

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STUDENT’S DECLARATION

I hereby declare that the project report on


Under the guidance of

Prof. Shamik Pal

Submitted in the partial fulfillment of the requirement for the award of the degree of

Post Graduate Diploma in Management

To

INSTITUTE OF ENGINEERING & MANAGEMENT, KOLKATA

Is my original work and the same has not been submitted for the award of any other

degree/diploma/fellowship or similar titles or prizes

NAME: SUROJEET BASAK

PLACE: Kolkata

DATE: 18-5-2015

ROLL NO.: PGDM/2013/043

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ACKNOWLEDGEMENT

I am using this opportunity to express my gratitude to everyone who supported me throughout the

course of this project. I am thankful for their aspiring guidance, invaluably constructive criticism and

friendly advice during the project work. I am sincerely grateful to them for sharing their truthful and

illuminating views on a number of issues related to the project.

I express my warm thanks to Prof. Shamik Pal for his support and guidance.

Thank you,

Surojeet Basak

Kolkata

May 2015

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CONTENTS

Abstract………………………………………………………………………………………………………………………………….6

Introduction……………………………………………………………………………………………………………………………7

Objectives………………………………………………………………………………………………………………………………8

Literature Review and Key Concepts……………………………………………………………………………………….9

Research Methodology…………………………………………………………………………………………………………...12

Discussion………………………………………………………………………………………………………………………………..34

Conclusion………………………………………………………………………………………………………………………………..35

References………………………………………………………………………………………………………………………………36

Questionnaire…………………………………………………………………………………………………………………………..37

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ABSTRACT

The second decade of the current century sees a sharp rise in the total number of mobile users in the

country. This increase is the result of a new category of mobile phones namely Smartphones which had

arrived in the market. Today, there are approx. 960.58 million [1] mobile phone users in India (77.58

connections per 100 citizens) [2]. India, the second largest smartphone market globally, is expected to

have a smartphone user base of over 650 million in the next four years, according to a study by

networking solutions giant Cisco [3][4].

The major objective of this research is to identify the key factors which have a dominating effect on the

consumers’ minds while making a purchase of Smartphone.

It was found that data is reliable for factor analysis.

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INTRODUCTION

The term ‘Smartphone’, refers to a multimedia phone handset, which is a multifunctional electronic

device that has features ranging from Camera, Audio-Video Playback, Web browsing to a high-density

screen display along with several other multimedia options. As per Businessdictionary.com, Smartphone

is a mobile phone which includes functions similar to those found on personal computers. Smartphone

provides a one-stop solution for mobile calls, email sending, and Internet access. Smartphone is

compact in size and often only slightly bigger than standard mobile telephones. A Smartphone is actually

a mobile phone, based on an Operating System, which possess all the major functions of a Computer,

like web browsing, emailing, video and voice chatting, audio-video playback, and others. A few years

back, a Smartphone was a PDA (personal digital assistant) having the calling features like a mobile -

phone. But nowadays, the mobile phones possess the functionality of added media players, compact

digital camera, GPS etc. Today, almost all the Smartphone's has a high-density screen resolution

allowing the handset to display almost all the websites in their standard formats as they appear on the

computer screens. Nowadays most of the websites are launching their mobile versions as well, and

several applications which can be run on the Smartphone OS directly. For better connectivity, hi-speed

data is also made available through Wi-Fi, 3G and 4G data connections. In the past 2-4 years, the rapid

development of mobile – applications has caused a birth of the new mobile applications market,

allowing a lot of trade to happen through mobile platform as well, which has been a major reason for

people to adopt the Smartphone.

Smartphone Landscape in 2015 India [5]

India witnessed some real action in the smartphone category in 2014 and is considered as the

fastest growing smartphone market in Asia Pacific. The Q3 (July to September) observed a market

share growth of 27 percent due to affordable pricing and the smartphone

figures touched a number of 23.3 million units. The trend will continue for the next year and it is

expected that the global smartphone sales will further rise by 13-15%.

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OBJECTIVES

This research is basically an exploratory research, where it is aimed to explain the relation between the

four independent factors namely price, brand name, features and social influences on the consumers'

purchase decision towards Smartphone. Primary data were collected with convenient sampling of adult

respondents covering varied socio economic classes and cultural groups. The sample of 29 respondents

from mentioning strata was used. All the questionnaires were scrutinized and those with incomplete or

unlikely responses were deleted. The collected data were analyzed and interpreted using Factor analysis

with the help of Statistical Package for Social Sciences (SPSS) v21. 0.

To analyze the consumer preference for brand of Smartphone.

To investigate the determinants in smartphone purchases

To study consumer motivation for buying a Smartphone.

To find out the level of satisfaction that consumer derives out of their Smartphone.

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LITERATURE REVIEW AND KEY CONCEPTS

Characteristics that Influence Consumer Behavior

Kotler & Amstrong (2004) define the characteristic that influence the consumer behavior, they define

cultural, social, personal and psychological are strongly influencing the consumer behavior.

a. Cultural Factors: In cultural factors divide the cultural itself in to three specific variables, they

assuming that marketers need to understand the role played by the buyer’s culture, subculture

and social classes.

Culture: Culture is the most basic cause of a person’s wants and behavior. Human behavior is

largely learned. Growing up in a society a child learns basic values, perceptions, wants, and

behaviors from the family and other important institutions. Culture influence the consumer

behavior through family, friends which borne into a mindset that influence a decision of a

person including their buying decision. An idea of values that people possess are different from

one group of society to another, a cultural shift (consumer’s concern) becomes a great point

influence the demands of consumers in the society.

Subculture: Kotler & Amstrong define subculture as a smaller part of a culture, or groups of

people with shared value systems based on common life experiences and situation. It includes

nationalities, religions, racial groups, and geographical regions. In this context noted four of such

important subculture groups including Hispanics, African American, Asian and Mature

Consumers. Hispanics Markets is a type that is loyal to a brand. Hispanic consumers tend to buy

more branded, higher quality products. They tend to make shopping a family affair and children

have a big say in what brands they buy. Hispanics are very brand loyal and they favor companies

who show special interest to in them. African Americans are also strongly motivated by quality

and selection. Brands are more important, and the consumers of African American seem to

enjoy shopping more than other groups. These consumers are also the most fashion conscious

of the ethnic groups.

Social Class: The added that social class is not determined by a single factor, such as income, but

are measured as a combination of occupation, income, education, wealth and other variables.

b. Social Factors: In social factors divide the factors into several specific parts, such as consumer’s small group, family and social roles and status. Groups: Groups that have a direct influence and to which a person belongs are called membership groups. In contrast reference group serve as direct or indirect points of comparison or reference in forming a person’s attitudes or behavior. People often are influenced by reference group to which they do not belong. Reference groups expose a person to new behaviors and lifestyles, influence the person’s attitudes and self-concept, and create pressures to conform that may influence the person’s product and brand choices.

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Family: Family is the most important consumer buying organization in society and it has been

researched extensively. Husband-Wife involvement varies widely by product category and by

stage in buying process. Children may have a strong influence on family buying decision for

everything from cellphone to restaurants to cars. Buying decision of consumers are influenced

by family’s decision, especially in Asian where its culture to respect the elders and taking their

family a s their priority above all.

Roles and Status: A person belongs to many groups family, clubs and organization, the person’s

position in each group can be defined in terms of both role and status. A role consists of the

activities people are expected to perform according to the person around them. Each role

carries status reflecting the general esteem given to it by society. People usually choose

products appropriate to their roles and status.

c. Personal Factors: A buyer decisions also are influenced by personal characteristics as the

buyer’s age and life cycle stage, occupation, economic situation, lifestyle, and personality and

self-concept.

Age and Life-Cycle Stage: Taste in food, clothes, furniture, and recreation are often age related.

Buying is also shaped by the stage of the family life cycle - the stages through which families

might pass as they mature over time. Traditional family life cycle stage includes young singles

and married couples with children.

Occupation: They added that blue-collar workers tend to buy more rugged work clothes,

whereas executive buy more business suits. Occupation of a consumer itself determines their

buying behavior by the style they do at their working environment.

Economic Situation: Economic situation will influence product choice, marketers of income-

sensitive goods watch trends in personal income, savings, and interest rates. It is obvious that an

economic level of a consumer will determine their choice of buying as they adjust their purchase

power with the goods and services.

Lifestyle: Lifestyle is a person’s pattern of living as expressed in this or her psychographics. It

involves measuring consumers interest which leads to buying behavior. Lifestyle captures

something more than the person’s social class or personality. It profiles a person’s whole

pattern of acting and interchanging consumer values and how they influence buying behavior.

Personality and Self-Concept: Personality refers to the unique psychological characteristic that

leads to relatively consistent and lasting responses to one’s own environment. Personality is

usually described in terms of trait such as self-confidence, dominance, etc. There is an idea that

brands also have personalities and that consumers are likely to choose brands with personalities

that match their own. A brand personality is the specific mix of human traits that may be

attributed to a particular brand.

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d. Psychological Factors: A person’s buying behavior choices are further influenced by four major psychological factors: Motivation, Perception, Learning, and Beliefs and. Motivation: A Person has many needs at a given time. A motive or a drive is a need that is sufficiently pressing to direct the person to seek satisfaction of need. Freud’s theory suggest that a person buying decisions are influenced by subconscious motives that even the buyer may not fully understand. A person tries to satisfy the most important need first. When that need is satisfied, it will stop being a motivator and the person will then try to satisfy the next most important need. Perception: People can form different perceptions of the same stimulus because of three perceptual process; selective attention, selective distortion, and selective retention. Each person fits incoming information into an existing mind-set. Selective distortion describes the tendency of people to interpret information in a way that will support what they already believe. Selective distortions means that marketers must try to understand the mind sets of consumers and how these will influence interpretations of advertising and sales information. Selective retention describes that consumers are likely to remember good points made about brand they favor and to forget good points made about competing brands.

Learning: A drive is a strong internal stimulus that calls for action. A drive becomes a motive

when it is directed toward a particular stimulus effect. When consumers tend to decide which

product they shall buy, they might respond to cues, cues are minor stimuli that determine when,

where, and how the person responds.

Beliefs and Attitudes: Through doing and learning that people acquire beliefs and attitudes.

Beliefs are a descriptive taught that a person has about something. Beliefs may be based on real

knowledge, opinion, or faith and may or may not carry an emotional change. Attitude describes

a person’s relatively consistent evaluations, feelings and tendencies toward an object or idea.

Attitudes put people into a frame of mind of liking or disliking things or moving toward or away

from them. Attitudes are difficult to change, a person’s attitudes fit into a pattern and change

one attitude may require difficult adjustments in many others. The forces of beliefs and

attitudes push a company to fit its products into existing attitudes rather than attempt to

change attitudes.

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RESEARCH METHODOLOGY

The population of interest for the research is the smart phone users in India. The research applied the accidental sampling since the cost of a census for surveying the entire population is too high. Accidental sampling is a type of nonprobability sampling. It involves the sample being drawn from that part of the population, which is close to hand. A population is selected because it is available and convenient.

The questionnaire was distributed via Internet.

Sample Structure

A total of 29 questionnaires were distributed, and 29 of them were collected, comprising the return rate of 100%. Excluding invalid questionnaires, 29 effective questionnaires were collected, comprising the effective return rate of 100%.

Distribution of respondents by Gender Gender was included in the survey in order to find out whether there is a difference between men and women concerning the beliefs towards the factors.

Distribution of respondents by age

Male 19 65.5%

Female 10 34.5%

18-21 1 3.4%

22-25 10 34.5%

26-30 10 34.5%

31-40 1 3.4%

41-50 1 3.4%

Above 50 6 20.7%

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Distribution of respondents by Educational Qualification

Distribution of respondents by Annual Income

Distribution of respondents by Occupation

Class 10th Pass 0 0%

Class 12th Pass 1 3.4%

Graduate (Degree/Diploma) 15 51.7%

Post Graduate (Degree/Diploma) 12 41.4%

Doctorate 1 3.4%

1 lakh-5 lakhs 15 51.7%

5 lakhs-10 lakhs 9 31%

10 lakhs-15 lakhs 2 6.9%

Above 15 lakhs 3 10.3%

Student 10 34.5%

Self-employed 1 3.4%

Government 6 20.7%

Private 8 27.6%

Retired 2 6.9%

Unemployed 2 6.9%

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Analytics of the Responses

1. Reason for owning a Smartphone

51.7% of the respondents said “Smartphones are more useful than normal mobile phones,

irrespective of its cost”, which means a majority of the respondents are willing to spend

whatever it takes to own a Smartphone just because they are more useful.

The rest 48.3% are conscious of the price/quality ratio in Smartphones.

2. Level of satisfaction with existing Smartphone

37.9% of the respondents are satisfied with their existing Smartphones to the extent of 4 out of

5, 5 being “Extremely satisfied”, and 1 being “Not at all satisfied”.

34.5% of the respondents are extremely satisfied with their existing Smartphones.

Not at all satisfied Extremely satisfied

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3. The degree of influence of the various factors on the purchase of a smartphone Below are given the degree of influence of various factors on the purchase of a smartphone, with percentage in brackets indicating the majority of respondents indicating the degree.

Factor

Dominant Degree of Influence

% of respondents who opted for the dominant degree

Family and friends suggestion/ Word of mouth

Influential 48.3%

EMI option

Non-Influential 41.4%

The well-known brand name of the product

Influential 58.6%

The quality of the product

Strongly Influential 51.7%

Your satisfaction for a previous product of certain brand

Influential

55.2%

Your position within the society

Neutral

51.7%

Technical aspect of the product

Influential 58.6%

Festival season/ promotions

Influential 34.5%

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4. Which brand of smartphone do you own?

Advertisement

Neutral 34.5%

After sales services

Influential 37.9%

Age/life cycle stage

Influential 31%

Lifestyle, personality and self-concept

Influential

41.4%

Sony 14%

Samsung 25%

HTC 3% Apple

4%

Micromax 18%

Microsoft 4%

Other 32%

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5. Would you like to switch to another brand?

6. How much are you willing to pay for a smartphone of your choice?

<Rs. 5000 0%

Rs. 5000-10000 4%

Rs. 10001-15000 24%

Rs. 15001-20000 24%

Rs. 20001-25000 24%

Rs. 25001-30000 14%

Rs. 30001-35000

3%

>Rs. 35000 7%

Yes 62%

No 38%

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7. Degree of importance for the following features of a smartphone while purchasing one

8. Where do you usually use your smartphone?

Idle time at work/college

38%

Home 48%

Others (example: bus stand, malls)

14%

Feature Dominant Degree of Importance % of Respondents who opted for the Dominant Degree

User-friendly operating system Extremely Important 58.60%

Long lasting battery life Extremely Important 69%

Processor Extremely Important 48.30%

Fast charging Important 44.80%

Wireless charging capabilities Neutral, Not Important 31%

Front camera resolution Important 38%

Rear camera resolution Important 37.90%

Display (Size) Important 37.90%

Display (Resolution) Important 44.80%

Design Important 48.30%

Multi-SIM capability Important 31%

SIM size Neutral 34.50%

NFC capability Neutral 44.80%

Security features Extremely Important 41.40%

RAM size Extremely Important 58.60%

Body color Important 37.90%

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9. Do you use your computer less now because of smartphone even if the cost of using it is high?

The degree of influence of various factors on the purchase of a smartphone

The factors are:

1. Family and friend’s suggestion/ Word of mouth

2. EMI option

3. The well-known brand name of the product

4. The quality of the product

5. Your satisfaction for a previous product of certain brand

6. Your position within the society

7. Technical aspect of the product

8. Festival season/promotions

9. Advertisement

10. After sales services

11. Age/life cycle stage

12. Lifestyle, personality and self-concept

The reliability and consistency of the data that has been extracted in the study was examined through

reliability test with, Cronbach's α as a coefficient of internal consistency. It is commonly used as an

estimate of the reliability of the data for a sample of examinees. The Cronbach’s α value for the given

set of sample was found to be 0.816.

Yes 55%

No 45%

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As per the ranges provided by George and Mallery (2003), Cronbach’s Alpha value greater than or equal

to 0.5 is considered acceptable. Indeed the value of Cronbach α as 0.816, shows that there is an

acceptable internal consistency in the items taken in the study.

Further, Bartlett’s Test of Sphericity and KMO Measure of Sampling Adequacy were performed to

confirm the suitability of the data for factor analysis. KMO and Bartlett’s Test shows that the result of

the Bartlett’s Test of Sphericity is significant at 0.000 of p values, which meets the criteria of value lower

than 0.05 in order for the Factor Analysis to be considered appropriate. Furthermore, the result of the

KMO Measure of Sampling Adequacy is 0.628, which exceeds the minimum value of 0.5 for a good factor

analysis.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .628

Bartlett's Test of Sphericity

Approx. Chi-Square 162.736

df 66

Sig. .000

Factor Analysis

Descriptive Statistics

The first output from the analysis is a table of descriptive statistics for all the variables under

investigation. Typically, the mean, standard deviation and number of respondents (N) who participated

in the survey are given. Looking at the mean, one can conclude that quality of the product influences

the respondents the most while purchasing a smartphone. It has the highest mean of 4.276. It means

that more than any other factor, the quality of the Smartphone should be looked at by marketers while

persuading a consumer to buy a smartphone.

Reliability Statistics

Cronbach's

Alpha

Cronbach's

Alpha Based on

Standardized

Items

N of Items

.816 .819 12

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Mean Std. Deviation Analysis N

Suggestion 3.379 1.0828 29

EMI 2.276 1.0656 29

BrandName 3.862 .9901 29

Quality 4.276 1.0656 29

PreviousProduct 4.000 .9258 29

PositionInSociety 2.897 .7720 29

Technical 4.138 .8334 29

SalesPromotion 3.310 1.2846 29

Ad 3.138 1.0930 29

AfterSales 3.828 1.1361 29

AgeLifeCycle 3.310 1.2278 29

Personality 3.483 1.0563 29

The Correlation matrix

The next output from the analysis is the correlation coefficient. A correlation matrix is simply a

rectangular array of numbers which gives the correlation coefficients between a single variable and

every other variable in the investigation. The correlation coefficient between a variable and itself is

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always 1; hence the principal diagonal of the correlation matrix contains 1’s. The correlation coefficients

above and below the principal diagonal are the same. The determinant of the correlation matrix is

shown at the foot of the table below.

Some of the values are negative in the matrix.

The showing of advertisement outweighs in influence than the personality.

What that means is that the more appealing the ad is, the lesser will be the influence of personality over

purchase of a smartphone. A person will not look at his/her personality while purchasing if the ad is

appealing.

Quality and Brand Name are highly correlated, which means that higher the quality, higher will be the

brand name.

Kaiser-Meyer-Olkin (KMO) and Bartlett's Test: measures strength of the relationship among variables

Factor Analysis is acceptable as KMO is above 0.6.

At 95% confidence level, NULL hypothesis is not accepted.

Significant Level is <0.05.

There is a correlation between some of the variables.





df 66

Sig. .000

Communalities

Initial Extraction

Suggestion 1.000 .738

EMI 1.000 .630

BrandName 1.000 .787

Quality 1.000 .837

PreviousProduct 1.000 .689

PositionInSociety 1.000 .698

Technical 1.000 .742

SalesPromotion 1.000 .812

Ad 1.000 .782

AfterSales 1.000 .699

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4 factors with eigenvalues greater than 1 created.

74.639% of the responses are explained by 4 factors.

AgeLifeCycle 1.000 .724

Personality 1.000 .818

Extraction Method: Principal Component

Analysis.

Component Matrixa

Component

1 2 3 4

Suggestion .748

EMI .542

BrandName .672 -.542

Quality .666 -.603

PreviousProduct .741

PositionInSociety

Technical .712

SalesPromotion .547 .697

Ad .662

AfterSales .749

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Scree Plot levels out after 4 factors approx.

AgeLifeCycle .695

Personality .501 -.627

Extraction Method: Principal Component Analysis.

a. 4 components extracted.

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Rotated Component Matrixa

Component

1 2 3 4

Suggestion .832

EMI .787

BrandName .873

Quality .896

PreviousProduct .667

PositionInSociety .773

Technical .793

SalesPromotion .785

Ad .639 .542

AfterSales .632

AgeLifeCycle .597

Personality .873

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 6 iterations.

Factor 1: Brand Name, Quality, Technicalities

Factor 2: EMI Option, Sales Promotions

Factor 3: Position in Society, Personality

Factor 4: Friend’s Suggestion

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Degree of Importance of various features on purchase of a Smartphone

The features considered are:

1. User-friendly operating system

2. Long lasting battery life

3. Processor

4. Fast charging

5. Wireless charging capabilities

6. Front camera resolution

7. Rear camera resolution

8. Display (Size)

9. Display (Resolution)

10. Design

11. Multi-SIM capability

12. SIM size

13. NFC capability

14. Security features

15. RAM size

16. Body colour

The Cronbach α value for the given set of sample was found to be 0.916, shows that there is an

acceptable internal consistency in the items taken in the study.

Reliability Statistics

Cronbach's

Alpha

Cronbach's

Alpha Based on

Standardized

Items

N of Items

.916 .920 16





df 120

Sig. .000

The KMO and Bartlett’s Test performed confirms that Factor Analysis can be done on the Features Likert

Scale.

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Factor Analysis


Mean Std. Deviation Analysis N

OS 4.379 1.0493 29

BatteryLife 4.483 .9495 29

Processor 4.172 1.0375 29

FastCharging 3.966 .9814 29

WirelessCharging 3.000 1.1650 29

FrontCamera 3.793 1.0135 29

RearCamera 3.966 1.0171 29

DisplaySize 3.966 1.0171 29

DisplayResolution 4.069 .9232 29

Design 4.069 .9611 29

MultiSIM 3.483 1.2711 29

SIMsize 3.034 1.2387 29

NFC 3.034 1.0516 29

Security 3.931 1.0997 29

RAM 4.448 .7831 29

Color 3.793 1.1765 29

Battery Life seems to be given a higher importance than all other features while purchasing a

Smartphone.

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4 factors with eigenvalues greater than 1 created.

65.974% of the responses are explained by 4 factors.

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Factor 1: RAM, Processor

Factor 2: Wireless Charging

Factor 3: Color of Handset

Factor 4: OS of Handset

Rotated Factor Matrixa

Factor

1 2 3 4

RAM .928

Processor .750

FastCharging .557 .448

WirelessCharging .850

NFC .692

SIMsize .624 .615

Security .426 .500

Color .897

Design .530 .549 .406

BatteryLife .495

MultiSIM .471

OS .753

FrontCamera .618

DisplayResolution .536

RearCamera .451 .533

DisplaySize .516 .518

Extraction Method: Principal Axis Factoring.

Rotation Method: Varimax with Kaiser Normalization.a

a. Rotation converged in 7 iterations.

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Annual Income vs. Ability to Spend for a Smartphone

Pearson’s Coefficient

Correlations

Annual Income WillingToPay

Annual Income

Pearson Correlation 1 .074

Sig. (2-tailed) .704

N 29 29

WillingToPay

Pearson Correlation .074 1


N 29 29

There is no significant relationship between Annual Income and ability to spend for a smartphone.

Low correlation between willingness to pay and quality implies that for the respondents, quality of the smartphone is high on importance but they are not willing to spend more on the smartphones. High correlation between brand name and quality implies that respondents placed equally high importance on brand name and quality.

Correlations

WillingToPay BrandName Quality

WillingToPay

Pearson Correlation 1 .008 .213

Sig. (2-tailed) .966 .267

N 29 29 29

BrandName

Pearson Correlation .008 1 .850**

Sig. (2-tailed) .966 .000

N 29 29 29

Quality

Pearson Correlation .213 .850** 1

Sig. (2-tailed) .267 .000

N 29 29 29

**. Correlation is significant at the 0.01 level (2-tailed).

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Age vs. Ability to Spend for a Smartphone

Pearson’s Coefficient

Correlations

Age of

Respondent

WillingToPay

Age of Respondent

Pearson Correlation 1 .194


N 29 29

WillingToPay

Pearson Correlation .194 1


N 29 29

Age has no effect on ability to spend for a Smartphone.

Another interesting Result: Does age effect the owner of a Smartphone to use it more as against a

Computer?

Correlations

Age of

Respondent

ComputerVsSm

artphone

Age of Respondent

Pearson Correlation 1 -.077


N 29 29

ComputerVsSmartphone

Pearson Correlation -.077 1


N 29 29

So, more the age, lesser the computer usage, because the older people use smartphones more now

instead of the computer.

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Gender vs. Family and friend’s suggestion/ Word of mouth

Correlations

Gender of

Respondent

Suggestion

Gender of Respondent

Pearson Correlation 1 -.190


N 29 29

Suggestion

Pearson Correlation -.190 1


N 29 29

The above table suggests that males place Family and friend’s suggestion/ Word of mouth high on

importance while purchasing a Smartphone.

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DISCUSSION

The major purpose of this study is to explore smartphone consumer behavior by finding the determinants of smartphone purchase.

Some key points to note are:

A majority of the respondents are willing to spend whatever it takes to own a Smartphone just

because they are more useful.

A majority of the respondents are somewhat satisfied with their existing handsets, but 62% of

them want to switch to another handset.

Quality of product plays a major role in the purchase decision

A majority of respondents are willing to spend anywhere between Rs. 10,000-25,000 to get a

quality product from the market, but not more than that

User-friendly operating system, Long lasting battery life, Processor, Security features and RAM

size figure high on the importance list for the respondents

A majority of the respondents (48.3%) use their Smartphones while at home

Also, a majority (55.2%) of the respondents now are using their computers less because of their

Smartphones

More than any other factor, the quality of the Smartphone should be looked at by marketers

while persuading a consumer to buy a smartphone

A person will not look at his/her personality while purchasing if the ad is appealing.

There is no significant relationship between Annual Income and ability to spend for a

smartphone. This means a person is likely to exceed his/her spending limit for a Smartphone if

either the quality is superb or the advertisement is appealing.

For the respondents, quality of the smartphone is high on importance but they are not willing to

spend more on the purchase.

Age has no effect on ability to spend for a Smartphone. This means that it is possible for an older

person to exhibit the same buying behavior as exhibited by a youngster, provided the quality is

up to the standard.

More the age, lesser the computer usage because the older people use smartphones more now

instead of the computer

Male respondents placed Family and friend’s suggestion/ Word of mouth high on importance

while purchasing a Smartphone.

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CONCLUSION

An implication for business bodies would be to concentrate on quality and advertisement. If successful,

people from both genders and all age groups will buy their Smartphones irrespective of their purchasing

power, as Smartphones are considered to be more useful than normal phones by a majority of the

respondents.

A new electronic gadget by the name of Smartphone is rapidly becoming an essential part of the life of

new generation users of mobile. The versatility of this instrument is resulting in the exponential rise of

its market share. People are buying Smartphones irrespective of its prices. Other features like brand,

social image, technology and durability are playing major role in buying decisions of consumers. It is

important to highlight that the results of this paper can provide new marketing dynamics to the leading

mobile companies for a market, that is very soon be contributing a major share in the revenue of these

companies.

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REFERENCES

1. "TRAI Press release". TRAI. 10 April 2015.

2. "Census India 2014". World Bank. 31 December 2014. 3. CISCO VNI Mobile Forecast Highlights, 2014 – 2019 4. http://www.huffingtonpost.in/2015/02/03/cisco-smartphone-forecast_n_6610520.html

5. http://www.pcquest.com/smartphone-landscape-2015-india/, Last updated February 4, 2015

http://www.trai.gov.in/WriteReadData/PressRealease/Document/PR-TSD-Feb-10042015.pdf

http://data.worldbank.org/indicator/SP.POP.TOTL

http://www.huffingtonpost.in/2015/02/03/cisco-smartphone-forecast_n_6610520.html

http://www.pcquest.com/smartphone-landscape-2015-india/

Proj

Marketing

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