A Report97 03

Management Thesis – I (Class of 2010) A Report On “ANALYSIS CONSIDERED

OF

THE

VARIOUS

FEATURES

BY THE CONSUMERS WHILE PURCHASING MOBILE HANDSET”

PREPARED BY:

KEYUR J. GANDHI (8NBSU048)

UNIVERSITY ID: 0801212280 SUBMITTED TO: MR. VIKASH SINGH CAMPUS HEAD: MRS. MEGHNA DANGI CAMPUS Acknowledgement

: SURAT

Survey is an excellent tool for learning and exploration. No classroom routine can substitute which is possible while working in real situations. Application of theoretical knowledge to practical situations is the bonanzas of this survey. Without a proper combination of inspection and perspiration, it’s not easy to achieve anything. There is always a sense of gratitude, which I express to others for the help and the needy services they render during the different phases of my lives. I too would like to do it as I really wish to express my gratitude toward all those who have been helpful to me directly or indirectly during the development of this Project. I am grateful for finishing this project to many people. First of all, I want to thank Mrs. Meghna Dangi, Campus Head, ICFAI National College, Surat. Secondly I wish to express my profound gratitude and sincere thanks to my esteemed Professor Mr.Vikash Singh who was always there to help and guide me when I needed help. His perceptive criticism kept me working to make this project more full proof. I am thankful to him for his encouragement and valuable support. Working under him was an extremely knowledgeable and enriching experience for me. I am very thankful to him for all of the productive discussions on emerging mobile services and changing business dynamics in the world of manufacture’s & operator’s business. I am grateful to many anonymous experts working in the turbulent environment of mobile communications business, who provided me with better understanding of interrelationships in mobile business ecosystems. These insights helped me in explaining some of the empirical research findings. In addition to industry experts I also thank my research colleagues at ICFAI National College, Surat for constructive comments and lively discussions on mobile services and emerging market trends. Without my friends it would have been difficult to balance between work and free time. Keyur Gandhi (8NBSU048)

Chapter No.

Particulars

Page No.

1

Preface

(1)

2

Introduction

(2)

3

Objectives

(4)

4

Limitation of the Study

(4)

5

Literature Review

(5)

6

Research Methodology

(7)

7

Industry Profile

(9)

8

Company Profile

(12)

9

Analysis and Interpretation

(17)

10

Testing the Hypothesis

(29)

CONTENT

PREFACE

The project gives an insight of the telecom sector. It basically helps understanding the brand preference of students with regard to mobile phones. It helps us to know what is the basis on which consumers chooses a particular brand when he/she purchases a new handset. The project will help to learn about the growing telecom sector in India. The research will also bring to light what all factors a student considers at the time of purchase of a new mobile phone.

Introduction

The Cellular telephone (commonly "mobile phone" or "cell phone" or "handphone") is a long-range, portable electronic device used for mobile communication. In addition to the standard voice function of a telephone, current mobile phones can support many additional services such as SMS for text messaging, email, packet switching for access to the Internet, and MMS for sending and receiving photos and video. Most current mobile phones connect to a cellular network of base stations (cell sites), which is in turn interconnected to the public switched telephone network (PSTN) (the exception is satellite phones. Cellular telephone is also defined as a type of short-wave analog or digital telecommunication in which a subscriber has a wireless connection from a mobile telephone to a relatively nearby transmitter. The transmitter's span of coverage is called a cell. Generally, cellular telephone service is available in urban areas and along major highways. As the cellular telephone user moves from one cell or area of coverage to another, the telephone is effectively passed on to the local cell transmitter. A cellular telephone is not to be confused with a cordless telephone (which is simply a phone with a very short wireless connection to a local phone outlet). A newer service similar to cellular is personal communications services (PCS).

History Information technology dates back to 5000BC, when people started using alphabets as a medium of communication. However, its actual emergence started with the first ever use of the computer. The real modern mechanical computer was conceived in 1822 by Charles Babbage. Then came the electromechanical age in 1840s with the discovery of different ways to harness electricity and the information was converted into electric impulses. This led to the beginning of telecommunication and telegraphy in late 1800s. As the loading coil and vacuum tube made possible the early telephone network, the wireless revolution began only after low cost microprocessors and digital switching became available.Since then, four generations of computers have evolved. Each generation represented a step that was characterized by hardware of decreased size and increased capabilities. The first generation used vacuum tubes, the second transistors, and the third integrated circuits. The fourth (and current) generation uses more complex systems such as Very large- scale integration or System-on-a-chip. Mobile rigs were the beginning of mobile phones for use in vehicles such as taxicab radios, two way radios in police cruisers, and the like. A large community of mobile radio users, known as the mobileers, popularized the technology that would eventually give way to the mobile phone. The concept of using hexagonal cells for mobile phone base stations was invented in 1947 by Bell Labs engineers at AT&T and was further developed by Bell Labs during the 1960s. One of the first truly successful public commercial

mobile phone networks was the ARP network in Finland, launched in 1971.The first hand held mobile phone to become commercially available was the Motorola DynaTAC 8000X, which received approval in 1983. Until the late 1980s, most mobile phones were too large to be carried in a jacket pocket, so they were usually permanently installed in vehicles as car phones. With the advance of miniaturization and smaller digital components, mobile phones got smaller and lighter.

Current scenario Mobile phones have gained a lot of popularity and are the considered to be great multimedia tools. Mobile phones are being used for entertainment purposes due the introduction of new features everyday. They have become more than just call making and receiving devices. Mobile phone handsets now have more business-friendly applications that can enhance anybody’s business. With emerging technology, mobile phones have become more than communication devices; they are the tools to stay ahead of competitors and peers in the present times. Soon mobile phones will evolve from communication tools to integrated communication devices, media terminals, credit cards and remote controls.

Objectives Primary objective

➢ Analysis of the various features considered by the consumers before purchasing

mobile handset.

Secondary objectives ➢ To know which Brand is preferred by the customers most and why? ➢ To know what range of price customer is ready to pay for handset now days. ➢ To know who influences the customers to buy specific brand’s mobile. ➢ To know different factors considered by the customers before buying mobile phones. ➢ To know the reasons why customers are shifting from one brand to another brand.

Limitation of the Study

Though full efforts have been made for the completion of the project, there are some limitations, They are as under. ➢ Some people use handsets just for the purpose of communication so they don’t consider the other features before buying. ➢ In rural area there are lack of awareness about the use of the various features so study results will be limited. ➢ Though primary data collection is done with the help of questionnaire. It is not 100% reliable. ➢ The whole research need a lot of time for accurate result so time Constraint for preparing Management Thesis.

Literature Review According to Business Today (May 3, 09) In India the number of mobile subscribers will cross 400 million, making it the world’s second largest market. Next revolution, the mobile

phones has moved from being a simple communication tool to an all round entertainment & information devices. Services are being enabled increasingly by more & more powerful processors onboard mobile devices. 10% of the 1.2 billion handsets sold in 2008 as smart phones. According to The Economics Times (Apr 2008) B K Modi controlled Spice Mobiles today launched the first Indian branded 3G and CDMA200 handsets in technological collaboration with Qualcomm and said it is targeting half a million of these handset sales in the current fiscal. We aim to sell four million standard handsets in the current fiscal and target half a million 3G handsets sales separately", Spice Mobiles Vice President Dilip Modi said C-810 (the CDMA enabled handset) is priced at Rs 6500 while the GSM 3G handset is priced at Rs 8500. Informa Telecoms and Media (Mar. 09) predicts the global mobile market is expected to add more than 1 billion subscribers and reach almost 3 billion overall or 43 percent penetration by the year 2010. While Asia, the Middle East and Africa will experience the highest growth rates, Informa reports "several countries are already reporting penetration rates of over 100% and Western Europe's regional penetration is set to breach 100% in a couple of years." Indian Cellular Association (March 09). says that a record addition of 15 million new telecom subscribers in January 2009 has cheered the mobile handset market. After a lacklustre 2008 when the Indian cell phone market saw near flat sales growth, the handset turf has grown 10% in January, claims the apex national body of handset vendors. Strategy Analytics offered their thoughts on the potential global mobile market, predicting the "worldwide cellular user base will increase from 1.7 billion at the end of 2005 to 2.5 billion by the end of 2010, a 38 percent penetration rate." According to Union Budget 2008-09, Mobile phone users would now have to shell out more money for buying new handsets, with the government proposing to levy one per cent excise duty on them. Phil Kendall at Strategy Analytics, commented, "Voice usage will increase from 5.6 trillion minutes in 2005 to 12.6 trillion in 2010. GSM based systems will continue to dominate the cellular landscape, accounting for 81 percent of subscribers and 76 percent of service revenues in 2010, though CDMA's more rapid evolution to 3G will see it dominate 3G subscriber volumes in the medium term. " Sony-Ericsson has emerged as the top company for the second consecutive year in overall satisfaction by mobile handset users, edging out market leader Nokia and Motorola,

according to a survey. Motorola is No 2 on overall satisfaction score, displacing Nokia to the third place. DoT to Telcos (Oct 08) Concerned over security lapses in the use of cell phones without proper security codes, government has asked mobile operators to strictly ensure that calls are not processed on such handsets that cannot be tracked by sleuths. The security code known as International Mobile Equipment Identity (IMEI) is a 15-digit number unique to a mobile handset and this can help in tracking or blocking of the mobile phones. Juniper Research estimates the "total mobile subscriber market will reach 2.7 billion by 2010 and that shipments of handsets will break the 1 billion mark by 2009 on the back of emerging Asia Pacific markets and increasing replacement rates in mature markets. 3G subscribers are predicted to grow from 30 million in 2004 to over 300 million by 2010."

Research Methodology This chapter describes the research methodology adopted to achieve the objectives of the study. It includes the scope of the study, research design, collection of data, analysis of data and limitations of the study.

Scope of the study

The scope of the study is to get the first hand knowledge about the various factors affecting buying behavior of consumers towards different brands of mobile handsets in surat city. The scope is restricted to study the factors affecting the preference of consumers while choosing a mobile handset in surat city only. This is done to avoid perceptual bias and for providing objectivity to the study.

Research Design The research design constitutes the blueprint for the collection, measurement and analysis of data. It is the strategy for a study and the plan by which the strategy is to be carried out. The research design of the project is descriptive as it describes data and characteristics associated with the population using mobile phones. Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables in a given situation.

Data Collection Primary Data Primary data is that data which is collected for the first time. It is original in nature in the shape of raw material. For the purpose of collection of primary data, a well structured questionnaire was framed which was filled by the respondents. The questionnaire comprises of close ended as well as open ended questions. Secondary Data Secondary data is the data which is already collected by someone. They are secondary in nature and are in shape of finished product. Secondary data was collected so as to have accurate results. Required data was collected from various books, magazines, journals and internet.

Sampling Design Sampling refers to selecting some of the elements in a population by which one can draw conclusions about the entire population. Universe Universe is the infinite number of elements which the researcher is targeting in his study. Since the study is restricted to Surat city the universe for the study consists of all the mobile phone owners in Surat. Population Population is finite number of elements which the researcher is going to target in particular area. All the mobile phone owners in Surat city form the population for the study.

Sampling Unit Sampling Unit is the single unit of the population. A single individual who owns a mobile phone form the sampling unit of the study. Extent Extent refers to the geographical area where there is a scope of population. The extent of the study is Surat City. Sampling Technique The selection of the respondents was done on the basis of simple random sampling technique. Sample size Sample size is the size of sample drawn from the population which is the true representative of the research. The number of respondents included in the study was 100 for convenience in evaluating and analyzing the data and because of time constraint.

Data Analysis and Interpretation For the purpose of analyzing, raw data was summarized in a master table and from this table the results have been carried out. The questions having multiple alternative choices were analyzed by taking percentages and through various graphs.

Industry Profile The Global Cellular Mobile Industry: The global mobile phone industry is based on many different manufacturers and operators. The industry is based on advanced technology and many of the manufacturers are operating in different industries, where they use their technological skills, distribution network, market knowledge and brand name. Four large manufacturers of mobile phones are today

dominating the global mobile phone industry; Nokia, Sony Ericson, Samsung and Motorola. In addition to these companies there are many manufacturers that operate globally and locally. Brand Nokia Samsung LG Motorola Sony Ericsson Others

Units Sold (in millions) 103.2 52.3 29.8 14.9

Market share 2nd quarter, 2009 41.08 % 15.39 % 9.33 % 9.46 %

13.8

8.22 %

41

16.53 %

Telecom Industry in India ➢ The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. ➢ With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. ➢ Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by the growth in demand in countries like India and China. ➢ India‘s mobile phone subscriber base is growing at a rate of 82.2%.

➢ China is the biggest market in Asia Pacific with a subscriber base of 48% of the total subscribers in Asia Pacific. ➢ Compared to that India’s share in Asia Pacific Mobile phone market is 6.4%. Considering the fact that India and China have almost comparable populations, India’s low mobile penetration offers huge scope for growth.

The cell phones industry has shown a remarkable growth in the last decade. In 1989 the number of its subscribers was zero in India. India’s love affair with cell phones started in the mid-1990s, as the mobile revolution took hold and India had just 10 million mobile and landline connections. Delhi was the first state to launch cell phones in India. Growth then soared in the last four years due to regulatory change and falling costs of calls and handsets. India’s wireless market is a test bed for alternative infrastructure, handsets, billing systems, business models and marketing strategies that will likely prove applicable to other developing countries. On a numerical basis, India is the biggest growth market adding about 6 million cell phones every month.

Company Profile NOKIA Nokia Corporation is a Finnish multinational communications corporation, headquartered in Keilaniemi, Espoo, a city neighboring Finland's capital Helsinki established in 1865. Nokia is focused on wireless and wired telecommunications, with 112,262 employees in 120 countries sales in more than 150 countries and global annual revenue of 51.1 billion Euros and operating profit of 8.0 billion as of 2007. It is the world's largest manufacturer of mobile telephones: its global device market share was about 38% in Q3 of 2008, down from 39% in Q3 2007 and down from 40% sequentially. Nokia produces mobile phones for

every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia's subsidiary Nokia Siemens Networks produces telecommunications network equipments, solutions and services. Nokia has sites for research and development,

manufacturing and sales in many continents throughout the world. As of March 2008, Nokia had R&D centers in 10 countries and employed 30,415 people in research and development, representing approximately 27% of Nokia’s total workforce. The Nokia Research Center, founded in 1986, is Nokia's industrial research unit of about 800 researchers, engineers and scientists. It has sites in seven countries: Finland, Denmark, Germany, China, Japan, United Kingdom and United States. Besides its NRCs, in 2001 Nokia founded (and owns)

INDT – Nokia Institute of Technology, a R&D institute located in Brazil. Nokia's production facilities are located at Espoo, Oulu and Salo, Finland; Manaus, Brazil; Beijing, Dongguan and Suzhou, China; Fleet, England; Komárom, Hungary; Chennai, India; Reynosa, Mexico; Jucu, Romania and Masan, South Korea. Nokia's Design Department remains in Salo, Finland.Nokia plays a very large role in the economy of Finland: it is by far largest Finnish companies, accounting for about a third of the market capitalization of the Helsinki Stock Exchange (OMX Helsinki) as of 2007; a unique situation for an industrialized country. It is an important employer in Finland and several small companies have grown into large ones as Nokia' co subcontractors. Nokia increased Finland's GDP by more

than 1.5% in 1999 alone. In 2004 Nokia's share of the Finland's GDP was 3.5% and accounted for almost a quarter of Finland's exports in 2003. In 2006, Nokia generated revenue that for the first time exceeded state budget of Finland. Finns the have ranked Nokia many times as the best Finnish brand and employer. Nokia brand valued at $35.9 billion, is listed as the 5th US company, and is the world's 88 AMR most valuable global brand in Inter brand/Business Week’s Best Global Brands list of 2008 (1st

non-US company). It is then number one brand in Asia (as of 2007) and Europe (as of 2008), 23rd most admirable Fortune's World's Most Admired Companies list of 2008 (tied with Exxom mobile) 2nd in Network Communications, 5th non US company, and is the world's 88th largest fortune global 500 list of 2008, up from 119 of the previous year. As of AMR research Nokia’s global supply chain ranks number two in the world.

MOTOROLA

MOTOROLA Electronics a wholly owned subsidiary of MOTOROLA Electronics was established in January, 2003 after clearance from the Foreign Investment Promotion Board(FIPB). The trend of beating industry norms started with the

fastest ever nationwide launch by MOTOROLA in a period of 4 and 5 months with the commencement of operations in May 2003. MOTOROLA set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 2004, with an investment of Rs 500 Crores. During the year 2001, MOTOROLA also commenced the home production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit. The Greater Noida manufacturing unit line has been designed with the latest technologies at par with international standards at Korea and is one of the most Eco-friendly units amongst all MOTOROLA manufacturing plants in the world. The year 2001 witnessed MOTOROLA becoming the fastest growing company in the consumer electronics, home appliances and computer peripherals industry. The company had till the month of October 2001 achieved a cumulative turnover of Rs 5000 Crores in India since its inception in 2003 , making it the fastest ever Rs 5000 Crores clocked by any company in the Indian consumer electronics and home appliances industry. Having achieved this milestone, MOTOROLA achieved another benchmark with the first ever sales of One Lakh ACs (Windows and Splits) in a calendar year. MOTOROLA is poised to surpass its turnover target of Rs. 2700 Crores this year and clock a turnover of Rs. 3000 Crores. This year, MOTOROLA has emerged as the leader in Colour Televisions, Semi Automatic Washing Machines, Air Conditioners, Frost-Free Refrigerators and Microwaves Ovens. In Colour Televisions having set the sales target of one million units of Color Televisions for 2002, MOTOROLA has already achieved the one million mark in the month ahead of its target. MOTOROLA Electronics India is the fastest growing company in the consumer electronics, home appliances and computer peripherals industry today. MOTOROLA Electronics is continually providing superior technology products & value for money to over 50 lacs households in India.

SONY ERICSSON Corporate structure Sony Ericsson Mobile Communications is a global provider of mobile multimedia devices, including feature-rich phones, accessories and PC cards. The products combine powerful technology with innovative applications for mobile imaging, music, communications and entertainment. The net result is that Sony Ericsson is an enticing brand that creates

compelling business opportunities for mobile operators and desirable, fun products for end users. Sony Ericsson Mobile Communications was established in 2001 by telecommunications leader Ericsson and consumer electronics powerhouse Sony Corporation. The company is owned equally by Ericsson and Sony and announced its first joint products in March 2002. Sony Ericsson products have universal appeal and are different in the key areas of imaging, music, design and applications. The company has launched products that make best use of the major mobile communications technologies, such as the 2G and 3G platforms, while enhancing its offerings to entry level markets. Sony Ericsson undertakes product research, design and development, manufacturing, marketing, sales, distribution and customer services. Global management is based in London, and R&D is in Sweden, UK, France, Netherlands, India, Japan, China and the US. The management team is led by President Hideki Komiyama, a former senior executive of Sony Europe and one of the key players in the growth of Sony in Europe; and Executive VicePresident and Head of Sales Anders Runevad, the former President Ericsson Brazil.

Industry accolades As new products are introduced to end user acclaim, existing products continue to receive accolades and Sony Ericsson is today accepted as a world leader in design and innovation. The globally acclaimed T610 and later generations of the company’s product portfolio frequently win awards. The GSM Association voted the V800 as Best 3G Handset for 2004, a fully-featured phone made for Vodafone with the full range of mobile entertainment features and multi-directional camera, and the K750i received the TIPA Award 2005/2006 for ‘Best Mobile Imaging Device’, chosen by 31 leading European photography/imagining magazines and judged on quality, performance and value for money. In February 2007 the GSM Association presented Sony Ericsson with the ‘Best 3GSM Mobile Handset’ award for the K800 Cyber-shot phone.

Innovation in partnership Sony Ericsson strives to be a cutting edge provider of applications, forging partnerships with developers and content providers. Strategic agreement with partners such as Sony BMG is one way in which the company is bringing the best and latest in entertainment content to its users. Sony Ericsson has also activated a global sponsorship deal with the Women’s Tennis Association Tour, which was renamed the Sony Ericsson WTA Tour in January 2005. The six-year title sponsorship is an unprecedented opportunity for Sony Ericsson to offer tennis fans new ways to experience the game through mobile technology, connectivity and content.

In the mobile gaming market Sony Ericsson took the lead in 2004, being the first to launch Java 3D-enabled handsets, and is forging ahead to bring 3D gaming to a wider audience

SAMSUNG The Samsung Group is the world's largest conglomerate. It is South Korea's largest chaebol and composed of numerous international businesses, all united under the Samsung brand, including Samsung Electronics, the world's largest electronics company, Samsung Heavy Industries, one of the world's largest shipbuilders and Samsung Engineering & Construction, a major global construction company. These three multinationals form the core of Samsung Group and reflect its name - the meaning of the Korean word Samsung is "tristar" or "three stars". The Samsung brand is the best known South Korean brand in the world and in 2005, Samsung overtook Japanese rival Sony as the world's leading consumer electronics brand and became part of the top twenty global brands overall. It is also the leader in many domestic industries, such as the financial, chemical, retail and entertainment industries. Samsung's strong influence in South Korea is visible throughout the nation, and is sometimes called the 'Republic of Samsung'. The 1990s saw Samsung rise as an international corporation. Not only did it acquire a number of businesses abroad, but also began leading the way in certain electronic components. Samsung's construction branch was awarded a contract to build one of the two Petronas Towers in Malaysia, Taipei 101 in Taiwan and the Burj Dubai in United Arab Emirates (founded by Callum Cuirtis), which is the tallest structure ever constructed. In 1996, the Samsung Group reacquired the Sungkyunkwan University foundation. In 1993 and in order to change the strategy from the imitating cost-leader to the role of a differentiator, Lee Kun-hee, Lee Byung-chull’s successor, sold off ten of Samsung Group's subsidiaries, downsized the company, and merged other operations to concentrate on three industries: electronics, engineering, and chemicals (Samsung Electronics). ➢ Samsung is the world's largest manufacturer of Televisions and various other consumer electronics. ➢ Samsung is the world's second largest mobile phone maker. ➢ Compared to other major Korean companies, Samsung survived the Asian financial

crisis of 1997-98 relatively unharmed. However, Samsung Motor Co, a $5 billion

venture was sold to Renault at a significant loss. Most importantly, Samsung Electronics (SEC) was officially spun-off from the Samsung Group and has since come to dominate the group and the worldwide semiconductor business, even surpassing worldwide leader Intel in investments for the 2005 fiscal year. Samsung's brand strength has greatly improved in the last few years. ➢ Samsung became the largest producer of memory chips in the world in 1992.

Samsung, the world's second-largest chipmaker after Intel, see Worldwide Top 20 Semiconductor Market Share Ranking Year by Year. In 1995, it built its first liquidcrystal display screen. Ten years later, Samsung grew to be the world's largest manufacturer of liquid-crystal display panels. Sony, which had not invested in LCDs, contacted Samsung to cooperate. In 2006, S-LCD was established as a joint venture between Samsung and Sony in order to provide a stable supply of LCD panels for both manufacturers. S-LCD is owned by Samsung and Sony 51% to 49% respectively and operates its factories and facilities in Tangjung, South Korea. ➢ In 2008, Samsung became the largest mobile phone maker in the United States and 2nd largest mobile phone maker in the World.

ANALYSIS AND INTERPRETATION In this part analysis of the various features considered by the consumers while purchasing mobile handset has been done. Therefore this part deals with analysis and discussions of the project.

Results of the study Table 1: Showing number of respondents owing a mobile phone Answer

No. of Respondents

%

Yes

50

100%

No

0

0%

Respondents owing a mobile phone

Table 2: Showing different brands of mobiles phones used by the respondents Brands Nokia Sony Ericsson Motorola Samsung Others Total

No. of respondents 28 4 11 4 3 50

% 56% 8% 22% 8% 6% 100%

Different brands of mobiles phones used by the respondents

Interpretation: From the above table and figure, we can conclude that out of 50 respondents 56% have Nokia hand set, 22% use Motorola , 8% have Sony Ericsson and Samsung each. Apart from these brands 6% of respondents have other brands like LG, China mobile etc. It’s evident from the figures that Nokia is most preferred brand of the people in Surat city but Motorola is also capturing market very fast as Motorola is on 2nd place.

Table 3: Showing respondents using same brand as they had earlier Responses

Respondents

%

Yes

24

55%

No

20

45%

Total

44

100%

Respondents using same brand as they had earlier

Interpretation: From the above, it is interpreted that 55% of the respondents had same brand of mobile hand set earlier while 45% had different brands while few people have there first mobile handset. 45% of people had switched over to new brands because they want new features and advance technology in their handset which is provided by other brand and also due to inefficiency in earlier brand. But above figures conclude that 55% of the respondents are brand loyal and they are totally satisfied with the quality and services in their handset.

Table 4: Showing reasons for using mobile phone by the respondents Reasons Business transactions Status Don’t have landline Others Total

No of Respondents 17 7 11 15 50

% 34% 14% 22% 30% 100%

Reasons for using mobile phone

Interpretation: Above table and figure depict that 34% of respondents use mobile for business transactions as they have business and now a days for a business man or a working person mobile phone is must so majority are using it for business transactions, 14% use it as a status symbol as they are using high priced mobile with various features which shows there status and which is not affordable for everyone, 22% use mobile because they don’t have landline connections at home or at the office and the rest 30% of respondents have other reasons like necessity, reducing communication gap, to stay in touch with friends and relatives or the student who

are living in hostel in other city so to keep in touch with there family etc. But the interesting fact which is come to know is that now a day people prefer mobile phone in place of land line connection so the demand of mobile phone has shown tremendous growth in past few years.

Table 5: Showing the factors considered by respondent while purchasing a mobile hand set Factors

No. of Respondents

Average

Price

32

0.26

Appearance

15

0.12

Brand

27

0.22

Features

38

0.32

Easy to carry/Weight

9

0.08

121

1

Total

The factors considered by respondent while purchasing a Mobile hand set

Interpretation: From above it can be concluded that features in a mobile hand set is the most important factor which is considered by the respondents while purchasing the mobile phone. Price is also an important factor as today many companies in this competitive world providing various features at lower prices and Indian public is also price sensitive so it can also be considered as an important factor. Brand name is also the other very important factor influencing the purchase decision as the brand name reflects the status of the person Blackberry, I-phone, Nokia N-series mobile etc. Easy to carry and appearance are the least important factor that is considered in the purchase decision. It’s clear that people in Surat people give maximum importance to features, price and brand name of a mobile phone. As there are mobile phones from China is also available in the market with the same features people don’t buy due to brand name.

Table 6: Showing the sources which influenced the buying decision of the respondents Name of the source Friend Family member Advertisement Dealer Other

No. of Respondents 20 13 14 1 2

% 40 26 28 2 4

Total

50

100

The sources which influenced the buying decision of the respondents

Interpretation: From the above table it can be concluded that out of 50 respondents, 40% respondents purchased the mobile hand set under the influence of their friends as friends who gave the advice about latest phones as well as there previous experiences so major influencer are the friends and 26% of the respondents are influenced by the family member so the company should design the promotional strategy which can attract the head of the family and many times the head of the family is giving money to purchase the mobile so family members are also the major influencer, 28% respondents under the influence of various advertisements as now days advertisement give all the USP of the mobile hand set and it is the best way of communication so it is also a major influencer, 2% respondents bought the mobile handset on the suggestion of dealer and 4% respondents are influenced by the other like brand name and their previous experience with the brand.

Table 7: Showing different purposes for which mobile is used by the respondents Diff. Purposes Receiving/making calls SMS/MMS Games E-mail/Internet Music Camera Total

No. of Respondents 43 27 11 7 29 13 130

Average 0.33 0.21 0.08 0.06 0.22 0.1 1

Purposes for which mobile is used by the respondents

Interpretation:

From the above figures it can be concluded that in spite of using mobile phone for calls and SMS which are its basic purposes, people of Surat are using them increasingly for Music. People are also frequently using there handsets for taking pictures and playing games. Using Internet on mobile phones is still not common in Surat very few people are using that. They mostly use Internet on their phone to check share prices.

Table 8: Showing ranking of various features of mobile handsets by the Respondents according to their preferences Features

Mean scores

Rank

Bluetooth

3.52

2nd

MP3 Player

2.6

1st

Camera

3.66

3rd

Data Storage Capacity

3.96

4th

GPRS

5.06

5th

Touch Screen

6.46

7th

Motion Game

6.96

9th

Internet & Computer Facility

6.3

6th

Personal information management

6.48

8th

Ranking of various features of mobile handsets by the respondents according to their preferences

Interpretation: Since 1 is given to the most preferred feature and 9 to the least preferred feature in a mobile hand set, therefore from the table, we can conclude that MP3 player is the most preferred feature in a mobile hand set. 2nd and 3rd ranks are given to Bluetooth and camera in the mobile phone respectively. After them the features like Data storage capacity, GPRS, Internet and computer facility, Touch Screen, Personal Information Management. Motion games are the least preferred feature in the mobile phones. Therefore it’s clear from above that people in Surat give more preference to the feature of MP3 player, Bluetooth and Camera.

Table 9: Showing range of price that respondents like to spend on mobile hand set

Range

No. of respondents

%

Below 5000

11

22

5000-15000

29

58

15000-25000

7

14

Above 25000

3

6

Total

50

100

Range of price that respondents like to spend on mobile hand set

Interpretation: From above it is interpreted that 58% of respondents prefer to spend between the ranges of Rs. 5000-15000, 22% people below Rs. 5000, 14% between Rs. 15000-25000 and 6% above Rs. 25000. It concludes that mobile phone user who need mobile phone just for communication are not willing to spend much money behind it. But today there are many mobile handset companies which are providing all the features in the mobile handset at cheaper price like china but people are considering brand name also so many of that are ready to spend between 5000Rs to 15000 Rs. Another segment of people which also consider mobile handset as there status symbol they are ready to spend no matter what amount of the mobile handset but it should suit with there status.

Table 10 Shows the awareness about the company’s punch line and picture in the respondent Company logo/ punch line

No of respondents

%

Sony Ericssion

23

26

LG

20

22

Motorola

14

16

Nokia

32 89

36 100

Total

The awareness about the company’s punch line and picture in the respondents

Interpretation: From the above chart we can conclude that the logos and punch lines of the different companies are very famous and people generally know the different company logos but in that also people recognize Nokia company tagline very fast as Nokia is very famous brand in Surart. On the 2nd rank its Sony Ericssion and after that there are LG and Motorola. But there are people who don’t remember Sony Ericssion’s, LG’s and Motoraola’s punch line they just remember its logo and they found that these companies logo are very attractive.

Table 11: showing features preferred in a particular brand of mobile phone Company Name

Camera No.

Bluetooth of

Music Player

Extendable Memory

Respondents

Nokia

26

25

8

24

Motorola

6

12

4

11

Sony Ericsson

10

6

34

4

Samsung

8

7

4

11

Total

50

50

50

50

Features preferred in a particular brand of mobile phone

Interpretation: From above table and figure it is concluded that people of Surat prefer Camera, Bluetooth and Memory features of Nokia and music player of Sony Ericsson. Other Companies likes Motorola and Samsung, in that companies mobile handset not many people like their features. It’s the

people who are using their first mobile phone of that company and don’t have knowledge about other company’s features are satisfied with the company.

Table 12: Showing agreement level of the respondents on various factors Influencing purchase decision Strongly Disagree (-2)

Disagree (-1)

Neutral (0)

Agree (1)

Strongly Agree (2)

Mean

Repairable

7 (-2)

6 (-1)

1 (0)

12 (1)

24 (2)

40/50 = 0.8

Availability of spare parts

3 (-2)

4 (-1)

5 (0)

17 (1)

21 (2)

49/50 = 0.98

Proximity to service provider

3 (-2)

7 (-1)

6 (0)

23 (1)

11 (2)

32/50 = 0.64

Promotional activities

5 (-2)

5 (-1)

16 (0)

17 (1)

7 (2)

16/50 = 0.32

Factors

Agreement level of the respondents on various factors influencing purchase decision

Interpretation: From the above table we can conclude that respondents strongly agree with the availability of spare parts factor of a mobile phone, the mean score being 0.98. Respondents are also to a large extent agreeing with the factor on it should be repairable and proximity of service provider but as far as promotional activities are concerned they are neutral towards this factor.

Testing the Hypothesis

Ho: Various features do not matter while purchasing a mobile handset H1: Various features matter while purchasing a mobile handset Out of 50 respondents 38 respondents replied that they considered features of mobile handset while purchasing a mobile handset. p = 38/50 = 0.76

n = 50

q = 1- p = 1- 0.76 = 0.24 Now sample size is more then 30 so we will apply z test here Z=

p_____

√

p*q / n

=

0.76

√ 0.76 *0.24/50

= 0.76 0.06

Z = 12.67

12.6 7

= Zcal > Ztab = 12.67 >

1.645

So, Ho is rejected. So, we can conclude that people are considering various features while purchasing a mobile handset, FINDINGS OF THE STUDY

1) Nokia is the most popular and widely used brand by the people of Surat city. 2) Brands like Motorola and Sony Ericsson are also gaining ground with regard to popularity

but they are mostly liked by the young generation.

3) 55% of the respondents used same brand earlier. It shows that most of the population of Surat is brand loyal. 4) But on the other side 45% of response depicts the fact that people constantly switch from one brand to another on the dearth of new features and inefficiency in the earlier mobile. 5) Mobile phone is no more a status symbol now for the people of Surat city. It has increasingly become a necessity to reduce communication gap and to maintain mobility. It has also become an important tool for people specially the working population to carry business transactions easily and quickly. 6) It is clear from the above that people of Surat give due importance to factors like features, price and brand of mobile phones while making purchase decision. 7) Appearance comes after the satisfaction of above factors and easy to carry facility is least considered during purchase decision. 8) It’s clear that people in Surat buy a particular brand of mobile hand sets on the basis of the positive report about their performance received from their friends and family members who already own that brand. 9) Advertisements also play an important role in influencing the buying decision of the people in Surat. 10) Besides receiving and makings calls and SMS people in Surat are also using mobile for listening music and camera. 11) Use of mobile for games has significantly reduced. And still people are not accustomed with the use of internet on their mobile phones. 12) As far features of mobile phones are concerned it’s clear from above that people in Surat give more preference to the features like MP3 player, Bluetooth and Camera. Motion game is the least preferred feature in the mobile phones. 13) People in Surat city prefer to spend between Rs. 5000 and Rs. 15000 on a mobile phone. It again depicts that mobile phones are no longer a status symbol for every one now as it was in past years and it has become necessity.

14) People of Surat city agree that factors like reparability and availability of spare parts are important to consider while making buying decision for a brand of mobile phone. But as far as promotional activities are concerned they are neutral towards this factor. 15) Most of the population is satisfied with their existing brands.

CONCLUSION AND SUMMARY The Mobile phone represents the convergence instrument of the future. It have become a necessity for many people throughout the world. The ability to keep in touch with family, business associates, and storing data are only a few of the reasons for the increasing importance of mobile phones. Cell phone manufacturers have produced a wide range of cell phones, which sell for prices that range from very inexpensive to thousands of rupees. The above findings and results reflected the preferences, expectations and satisfaction level of mobile phones users in Surat city. The study would help the companies in understanding the factors that influence the purchase decision of the consumers and their expectations from the mobile handsets. The results of the study indicate that mobile phones are no longer the status symbol for every people of Surat city. Features in a handset are preferred over their prices. People here are techno savvy and require new innovative features in mobile phones every new day. Since the study was restricted to the Surat city so the there is need to study more in other cities to get the clear view of the findings.

ANNEXURE QUESTIONNAIRE Personal Details: Name: _________________ Gender: _________________ Contact No. ____________________

Age: Occupation:

_________________ _________________

Q1) Do you have a mobile phone? YES NO Q2) a) Which brand of mobile hand set do you have? (Please Tick) i. Nokia ______ ii. Sony Ericsson _______ iii. Motorola ______ iv. Samsung _______ v. Any other (please specify) _______ b) Which model

_________

If it is your first mobile phone then skip Q3 Q3)a) Did you have the same brand earlier? YES

NO

b) If NO then which brand you had earlier (please specify)

_______

c) Why have you switched from earlier brand to latest one? i. Advanced technology ____ ii. New features _______ iii. Inefficiency in earlier mobile _______ iv. Any other( please specify) _______ Q4) Why have you bought the mobile? (Tick one option) i. Business transactions ________ ii. Status ________ iii. Don’t have landline phone ________ iv. Any other (please specify) ________

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

i. Price ________ ii. Appearance ________ iii. Brand ________ iv. Features ________ v. Easy to carry/Weight ________ Q6) Who influenced you to buy this brand? (Tick one option) i. Friend _______ ii. Family member _______ iii. Advertisement _______ iv. Dealer _______ v. Any other (please specify) _______ Q7) Which of the following feature of mobile is used by you most frequently? (can tick more than one option) i. Receiving / making calls ______ ii. SMS/ MMS ________ iii. Games ________ iv. E-Mail/ Internet ________ v. Music ________ vi. Camera ________ Q8) Rank the following features of your hand set according to your preference (rank 1 to most preferred and accordingly) i. Bluetooth _________ ii. MP3 Player/ Video Player _________ iii. Camera _________ iv. Data Storage Capacity _________ v. GPRS _________ vi. Personal information management _________ (Reminders, Meetings etc) vii. Touch screen______________ viii Internet & computer facility____________ ix motion game______________ Q9) If you want to change or buy new handset tick the range of price you would like to spend on a mobile handset? i. Below 5000 ______ iii. 15000- 25000 ________

ii. 5000- 15000 ________ iv. Above 25000 ________

Q10) Out of following tick the picture/ punch line you recognize:

__________

____________

___________

____________

Q11) Tick the following features you like in particular brand: Nokia

Motorola

Sony Ericsson

Samsung

Camera Bluetooth Music Player Extendable Memory

Q 12) Do you agree that following factors must be considered while choosing a brand of mobile hand set? Strongly Disagree Repairable Availability of spare parts closeness to service provider Promotional activities

BIBLIOGRAPHY

Disagree

Neutral

Agree

Strongly Agree

Next Mobile Revolution, Business Today Rural To The Rescue, Business Today “T3-tomororw technology today”, Vol.1, Issue 2 http://www.wirelessdesignasia.com/article-8488globalmobilehandsetshipmentgrew17yoyAsia.html http://www.forbes.com/feeds/businesswire/2009/04/24/businesswire123735951.html http://digital-lifestyles.info/2007/03/05/worldwide-mobile-phone-sales-grow-21-in-2006/ http://www.gartner.com/it/page.jsp?id=501734 http://en.wikipedia.org/wiki/Mobile_phones http://www.rncos.com/Report/COM02.htm http://economictimes.indiatimes.com/News/News-By-Industry/Telecom/Mobilehandsetsaleshttp://www.dailyindia.com/show/121503.php/India-to-be-second-largest-mobile-marketby2010:-Nokia http://www.zinnov.com/presentation/Mobile_VAS.pdf