Siva 1

Mlardalen University
Program: MIMA International Marketing

Course Name: Master Thesis
Tutor: Per Nordqvist
Course: EX0110

Consumers Attitude Towards
Dell laptop Computer in Sweden

Authors: Group 1529
Pichan Kuasirikul
Kamran Zaheer
Honoratus Kikalugaa

ABSTRACT

Date: 30 May 2007


Course Name: Master Thesis [ EX0110 ]


Authors: Pichan Kuasirikul
Kamran Zaheer
Honoratus Kikalugaa

Group: No.1529

Title: Consumers Attitude towards Dell laptop Computer in Sweden

Problem: What are the problems Dell encounters towards the student consumers
focusing on controllable environments?
What is Dells attitude towards the student and students attitude towards
dell laptop computers?

Purpose: To examine the problem Dell is facing in Sweden on the laptop
computer market when it comes to student consumers where there are
many competitors with different marketing techniques. The study is
even examining the attitude of consumers who are students towards Dell
laptop computers and Dell attitude towards the student market.

Conceptual The marketing mix theory and consumer behaviors were selected in
Framework: order to understand consumer attitude towards Dell laptop and Dells
attitude towards the student market of laptop computers.

Method: Quantitative and qualitative method has been used in the thesis. The
questionnaire was carried out to the students of Mlardalen University,
Vsters, Eskilstuna and Stockholm University and the interview has
been carried out to Dell Marketing Manager, Sweden branch
respectively. Firstly the questionnaire is constructed of some
demographic questions, second questions on the respondents general
attitude towards laptop computers and thirdly the respondents attitude
towards Dell laptop computers. The interview to Dell Marketing Unit is
constructed of general questions asking Dells attitude towards the
laptop computers market to students.

Findings: The students are positive about Dell laptop computers. However,
students are reluctant in buying Dell laptop due to the Dells advertising,
distributional and selling channel. Student prefers buying laptops from
retailers where they physically see and try the laptop while Dell deals
with internet and telephone order.

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Analysis: The student consumer attitude towards Dell laptop computers and Dell
attitude towards the student consumers of the laptop computer is
affected by Dells marketing strategy. Dells strategy is low prices and
student consumers appreciate that but the promotion and channel of
distribution makes the student reluctant, most of them prefer buying
laptop computers from retail shops of laptop computers.

Conclusion: Dell inc. understand the student consumers of laptop computers by
selling the laptop computers in low prices due to reduced costs of selling
through the internet and making a computer after It is ordered, however
Dell misunderstands the elements of place, promotion and distribution
channel of laptop computers to the student market.

Acknowledgement

The success of this research would not have been appreciative without conscientious
corroboration, endurance, tolerance and support from different people, at their official
and individual capacities. Due to the fact that it is difficult to mention each by name the
authors are hereby indebted to convey their cordial thanks to them.

Our special gratitude goes to our Supervisor Mr. Per Nordqvist who gave us a
resolutely firm supervision and productive criticisms throughout the research. His
experience, knowledge, theoretical assistance and suggestions were very useful in
improving the quality of this research. His endurance, willing to help and
accommodating attitude is greatly appreciated.

We also sincerely appreciate the guidance from Professor Carl Thurman. His lectures
and advises really encouraged us on familiarize ourselves with the research. The clearly
PowerPoint clarification and the way of teaching was both fun and educative at the
same time.

Our sincere credit to our favorite lecturers through ought the Program which is result of
this research. The importance of Mr. Tobias Eltebrandt and Ms Charlotta Edlund in the
MIMA Program is unchallenging. Unselfish transfer of knowledge, cooperative attitude
and helpful advice during the program is highly cherished.

We are as well genuinely grateful to the Marketing Manager of Dell, Sweden Mr.
Mattias Marle for his assistance in furnishing us with the information concerning Dell
marketing strategies. His information was useful in this research making it useful to
Dell, Sweden.

We are furthermore indebted to our families for their unrelenting, vigorous and
endeavoring love facilitated this research.

Finally we are thankful to Mlardalen University who gave us chance to complete our
Masters degree and MIMA students whose happiness, loving and cooperativeness
clearly defined and specified the uniqueness of the internationally program with
students from different cultural backgrounds. They all made our study for the Masters
easier, thank you guys.

The Authors

II
TABLE OF CONTENTS
Abstract I
Acknowledgement II
1 Introduction.............................................................................................................. 1
1.1 Background of the research ............................................................................. 1
1.2 Reason for the choice of topic ......................................................................... 1
1.3 Problem statement............................................................................................ 2
1.4 Purpose of the study......................................................................................... 3
1.5 Scope of the study............................................................................................ 3
1.6 Delimitation ..................................................................................................... 4
1.7 Consumer Attitude........................................................................................... 4
2 The laptop computer ................................................................................................ 5
2.1 Laptop .............................................................................................................. 5
2.2 Laptop in the World Market ............................................................................ 5
2.3 Laptop market in European countries.............................................................. 5
2.4 Market strategies of laptop computer in Sweden 2006.................................... 6
2.5 Dell Inc............................................................................................................. 7
3 Conceptual Framework............................................................................................ 8
3.1 Marketing Inputs.............................................................................................. 8
3.2 Purchase Decision............................................................................................ 8
3.3 Psychological Inputs ........................................................................................ 9
3.3.1 Consumer Attitude................................................................................... 9
3.3.2 Consumer Perception............................................................................... 9
3.4 Demographic Variable................................................................................... 10
3.5 Consumer Attitude and Behavior Theory...................................................... 10
3.6 Consumer Perception..................................................................................... 10
3.7 Marketing Mix ............................................................................................... 11
3.7.1 Price ....................................................................................................... 11
3.7.2 Product ................................................................................................... 11
3.7.3 Place....................................................................................................... 11
3.7.4 Promotion............................................................................................... 12
3.8 Brand Equity.................................................................................................. 12
4 Research Methodology .......................................................................................... 13
4.1 Research Model ............................................................................................. 13
4.2 Sampling Procedures ..................................................................................... 15
4.2.1 Define the population of interest............................................................ 15
4.2.2 Determine whether to sample or census ................................................ 15
4.2.3 Choose a sampling method.................................................................... 16
4.2.4 Determine sample size ........................................................................... 16
4.2.5 Implement the sampling procedure........................................................ 16
4.3 Research Group.............................................................................................. 17
4.4 Research Instruments..................................................................................... 17
4.4.1 Qualitative.............................................................................................. 17
4.4.2 Quantitative............................................................................................ 17
4.5 Primary........................................................................................................... 18
4.5.1 Interview................................................................................................ 18
4.5.2 Questionnaire ......................................................................................... 18
4.5.2.1 Questionnaire Development............................................................... 19
4.5.2.2 Questionnaire Description ................................................................. 20
4.5.2.3 Pre-Testing......................................................................................... 21
4.6 Secondary data............................................................................................... 21
Literature Review................................................................................................... 21
4.7 Research Review............................................................................................ 22
4.8 Analysis Method............................................................................................ 22
4.8.1 Data Analysis & processing................................................................... 23
4.8.2 Method used for Hypothesis .................................................................. 23
4.9 Reliability and Validity.................................................................................. 24
4.10 Criticism......................................................................................................... 25
5 Empirical Finding .................................................................................................. 26
5.1 Demographic of respondents ......................................................................... 26
5.1.1 Gender.................................................................................................... 26
5.1.2 Age......................................................................................................... 26
5.1.3 Occupations............................................................................................ 26
5.1.4 Nationality.............................................................................................. 26
5.1.5 Education ............................................................................................... 27
5.1.6 Income per month .................................................................................. 27
5.2 General information about consumer attitude toward laptop computer ........ 27
5.3 Consumer attitude towards Dell Laptop ........................................................ 30
5.3.1 Product ................................................................................................... 30
5.3.2 Price ....................................................................................................... 31
5.3.3 Place....................................................................................................... 32
5.3.4 Promotion............................................................................................... 32
5.3.5 Overall consumer attitude towards Dell laptop ..................................... 33
5.4 Interview........................................................................................................ 33
Dells attitude towards student market ...................................................................... 33
6 Analysis.................................................................................................................. 37
6.1 Hypothesis Test.............................................................................................. 37
6.2 Marketing Inputs............................................................................................ 40
6.2.1 Price ....................................................................................................... 40
6.2.2 Product ................................................................................................... 40
6.2.3 Place....................................................................................................... 41
6.2.4 Promotion............................................................................................... 42
6.2.5 Consumer Attitude & Perception........................................................... 42
7 Conclusion ............................................................................................................. 43
8 Recommendation ................................................................................................... 45
Reference Lists 46

LIST OF TABLES
Table 1: Frequencies of respondent classified by Gender ............................................. 26
Table 2: Frequencies of respondent classified by Age .................................................. 26
Table 3: Frequencies of respondent classified by Nationality....................................... 26
Table 4: Frequencies of student respondents classified by Education........................... 27
Table 5: Frequencies of respondent classified by Income per month............................ 27
Table 6: Frequencies of respondent classified by brand................................................ 27
Table 7: Purpose of buying a laptop computer .............................................................. 28
Table 8: price for a Laptop computer for general used.................................................. 28
Table 9: The most important influence of buying decision........................................... 28
Table 10: the popular place for buy a laptop ................................................................. 29
Table 11: Information distribution & Marketing of laptop computer............................ 29
Table 12: The element of laptop effected to consumer buying decision. ...................... 29
Table 13 : The favorite sale promotion program........................................................... 30
Table 14: Consumer attitude towards elements of product ........................................... 30
Table 15: Consumer attitude towards elements of price................................................ 31
Table 16: Consumer attitude towards elements of place ............................................... 32
Table 17: Consumer attitude towards elements of promotion....................................... 32
Table 18: Summary of consumer attitude towards Dell laptop ..................................... 33
Table 19: Relationship between consumer attiude toward Dell laptop and product ..... 37
Table 20: Relationship between consumer attitude toward Dell laptop and price ........ 38
Table 21: Relationship between consumer attitude toward Dell laptop and place........ 38
Table 22: Relationship between consumer attitude toward Dell laptop and advertisment
........................................................................................................................................ 39
Table 23: Relationship between consumer attitude toward Dell laptop and promotion 39

LIST OF FIGURES
Figure 1: Sweden PC Units comparison between 2005 and 2006................................... 6
Figure 2: Worldwide laptop computer Market Share ...................................................... 7
Figure 3: Conceptual framework of consumer attitude towards Dell laptop................... 8
Figure 4:Purchase decision of the customer .................................................................... 9
Figure 5: Marketing Mix................................................................................................ 11
Figure 6: Research Model.............................................................................................. 13
Figure 7: Number of men and women in universities in Sweden 2006......................... 15
Figure 8: Number of students in Stockholm University, Mlardalen University Vsters
and Eskilstuna ................................................................................................................ 16
Figure 9 : The questionnaire design process.................................................................. 19
Figure 11: Analyze process............................................................................................ 23
Figure 12 : Hypothesis statement & Statistic used ........................................................ 24

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1 Introduction
This part describes the background of the research study. It contains a description of
the research problem and purpose used for investigation in this study. The scope and
significance of the research are discussed along with the objectives.

1.1 Background of the research
Computer is electronic device operating under software and million of chips in a
circuit board. At earliest time, it was used to calculate simple number such as plus,
minus, multiple, and divide. Then, it was frequently used in military activities such as
to calculate the gravity and trajectory. However, the rapid development that came
from the war situations led human beings to achieve the highest performance of the
computer at that time by developing computer capabilities for communication.

According to IDC Research in 2007, the world development in science and
technology reduced the size of computer with high performance (Mayers J 2001,
pp.1-8). There is a powerful chipset integrated in every computer.

Nowadays, the number of laptop sold is increasing every year while the number of
desktop computer is dropping. As the price of laptop computers went down and close
to the price of desktop computer. It is the best alternative to the consumer for buying a
laptop computer.

In the world laptop market, there are many brands. HP is the most popular brand
which has the highest sale volume over the world (IDC Research 2007). In this study,
the author is interested on Dell which has a second place in global market but Dell is
unique in its ordering process which emphasizes on selling its product only through
the internet and telephone. In the Swedish market Dell is a famous and successful
brand where it had a second position in total sales. But in the end of 2006, Dell
Sweden lost the market share to other brands especially Taiwanese brand (Gartner
2007). The loss of market share was not only in Sweden but also in the United States
of America where it dominated the main market (Darlin D 2007). According to Acer
official website and IDC research, they show that Dell still losing its market share to
HP and other brands.
1.2 Reason for the choice of topic
It is undoubted that the computer industry is growing rapidly since the beginning of
the computer era and so is the market. The growth of the industry encourages
continuous development and innovations on computers.

The first reason for choosing the topic is our interest in computers, its continuous
developments and innovations. Then the next choice complementary to the interest in
computers was the kind of computers we should research on, and here there were no
other interesting type of computers than laptop computers. Moreover, the author
found that Dell is very popular for Swedish students and the authors think that laptop
computer will replace the normal computer (Desktop computer) in the nearly future
that while the authors select this topic to do the research. In global, the author can say
that it has 5 top brand including HP, Dell, IBM, Acer, Toshiba. But the author

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selected Dell because the author found that Dell has facing urgent problem in sale
volume which New York Times (Darlin D,2007) reported that Dell has still losing
market share to competitors.

The second reason for choosing the topic was finding out a computer manufacturing
company that will satisfy our inquisitiveness. Then we chose Dell Inc. in Sweden. The
reason being our doubt on Dell Inc. Dell is a big company that just fifteen years ago
was not involving itself in intensive advertisement. Intensive advertisement was an
expensive venture that Dell could not think of indulging into due to its strong market
shares all over the world (Darlin D 2007). However, all of a sudden Dells computers
became inexpensive with a lot of advertisements for example in terms of daily mails,
news papers and flyers. Thus we thought it is worth researching to find out what went
wrong.

Connected to the second reason the third reason was the increased interest of
connecting Dell to the International marketing program to find out where it fits
squarely on the Market shares in Sweden in relation to the rising competition in the
Computer Market by new computer companies. Therefore this led to the need for
narrowing down the topic but still keeping our interest to research on laptop
computers instead of all kinds of computers, research on the student market instead of
all the market.

The research is not only useful for Dell Inc but also beneficial to other related
businesses to understand the student consumer attitude towards laptop computer in
Sweden. For the author point of view, laptop is a major market for computer
manufactures. Marketers must understand student consumers attitude and trend of
products to manage their brand position. Moreover, the author found that there is no
research conducted on the student consumers attitude toward Dell laptop in the
Swedish market.
1.3 Problem statement
In order for Dell to maintain and increase market share, the author need to understand
the student consumers attitude in Sweden towards Dell Laptop computers especially
while bearing the fact that Dell lost its market share to the second position in the
Swedish market share to Acer in the end of 2006 (Gartner, 2007). The urgent strategy
will be able to solve the problem and help marketers to create and develop marketing
techniques based on students consumer demand.

The problem statements:

What are the problems encountering Dell Inc on the student market of laptop
computers focusing on student consumers attitude towards Dell laptop
computer?
What is the problem facing Dell Inc on the student market of laptop computers
in Sweden focusing on the product, price, promotion and place of distribution?
What is Dell Inc attitude towards the student consumer of the Laptop
computers?
What is the most suitable marketing strategy for Dell Inc in the student laptop
market in Sweden?

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1.4 Purpose of the study
The major aim of this study is to examine the attitude of consumers who are students
towards Dell laptop computers and Dell attitude towards the student market.
Moreover, this study aims at examining the problems which Dell is facing in Sweden
on the laptop computer market when it comes to student consumers where there are
many competitors with different marketing techniques.

These objectives of this research are;
To understand student consumers attitude towards Dell laptop computers in
Sweden.
To understand the Dell inc. attitude towards the student consumer market of
the laptop market in Sweden.
To study the relationship between marketing stimuli and student consumer
attitude
To compare Dell attitude towards the student market of laptop computer and
student consumer attitude towards Dell laptop computers, investigate the
problem and find the proper solution for Dell.
To find the best marketing technique and suitable strategy for Dell in the
Swedish laptop market on student consumers.

Benefits of the study
This study will be beneficial to Dell especially the marketing unit. Dell can use the
information gathered on this study to enhance its marketing techniques in the Swedish
competitive market especially the student market. It will also be used to rate the
customer attitude towards Dell business technique and Dell will be able to know how
much students appreciate their marketing techniques. Together with it is the economic
reason that Dell will be able to increase their sales through the studys findings by
correcting or solving the problems that might exist.

1.5 Scope of the study
This research studies on the overall environments of the Dell Swedish laptop market
to students consumers which is affected by marketing stimuli (Price, Place, Product,
Promotion) and consumers attitude towards Dell focusing on student consumers.

The conceptual framework has been set up for controlling the process in order to get a
desired result. The qualitative and quantitative will be used to analyze and summarize
data. In terms of data collection the study will interview the student population
situated in Vsters, Eskilstuna and Stockholm. These will be the area of focus for the
purpose of the interviews of customers as well as the author will conduct the
interview with Dell marketing department either by email or phone interview in order
to find out Dells attitude towards the student Market of Laptop computer so as to
compare with the student consumers attitude in order to know the problems and come
up with the solutions therewith.

The study will focus on the challenges of the marketing mix as far as Dells business
activities are concerned. Efforts will be put on finding out the student consumers
attitude towards Dells business activities of laptop computers through digging up the
problem Dell is facing in the Swedish laptop computer Market. Concentration will be

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put on the Student consumers who are the major target group in this thesis. Theories
will be formulated to the extent of the problem Dell is facing with the Swedish laptop
computer student market under the marketing mix theory.

1.6 Delimitation
The limitation of this thesis is the study on 3 cities which is convenience and
economical to the author to gathering the data. Mlardalen University has a good
choice both Vsters and Eskilstuna which has approximately 15,000 students and
grows rapidly. Moreover, the author was given a permit to access and get information
from both international and local students (www.mdh.se). In the other hand,
Stockholm University has been chosen for this research, because of the high number
of students 39,000 students and Stockholm City is close to Vsters (www.su.se).

In the Swedish laptop market, there are varieties of types of laptop. The author
decided to pickup 5 laptops which have similar specifications from top 5 brands
selling in Sweden, that is Dell, HP, ACER, Toshiba, and Sony. The feedback from
student consumer will be used for comparing strength, weakness, opportunity and
treat. Moreover, this study has limited investigation only on the marketing mix and
domestic environments of Dell laptop.

1.7 Consumer Attitude
The student consumer attitude is important for a marketer because it can be used to
make decision about favorable or unfavorable and satisfaction or dissatisfaction
towards consuming products. Each person has similar or different way to look on a
product or service based on his/her point of view. Some people may like the design
while others like brand name. Paul and Jerry (1994) stated that an attitude is a
persons overall evaluation of a concept. It came from variety objective such as
products, brands, model and people based on marketing strategy that marketer used to
build image of product and brand. Solomon, Bamossy and Askegaard (1999) stated
that there are three components of attitude which can see in different ways to create
attitudes. There are cognitive, behavior and social learning process. All of
components will be used to evaluate the student consumers attitude in this research.

In this research, the author tries to understand consumer attitude through marketing
stimuli; product, price, place and promotion; which is the core influence of student
consumers buying decision for laptop computers. Marketers take responsibility to
predict and understand consumers attitude based on existing theory, research, and
report. There are many kinds of laptop brands in the Swedish market but the author is
solely focusing on student consumers attitude towards Dell laptop computer because
of the high growth rate of sales of laptop computer in 2007. It shows that laptop
marketing strategy is really important for Dell to improve and recover its positioning
in the Swedish market. Moreover, to know consumers attitude is a core of success for
doing every business.

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2 The laptop computer
In this part, the general information about global, European, and Sweden laptop
market has been described by table and statistical data from articles, website, and
research companies.
2.1 Laptop
Today, the use of a computer is common at home and at work or anywhere. It
provides more flexibility to users. Everyone uses it as helping equipments for
education, calculation, entertainment, and communication purpose.

Laptop computer is capable and nearly similar to a Desktop PC but it is different in
size and price. Because of the small size and extremely light weight of laptop
computer, it is easy to handle when users are traveling or moving around the job site,
school, and meeting place. The wireless capabilities and accessibility of laptop
computer created value to either private or business consumers.

2.2 Laptop in the World Market
According to IDC Research, the author forecasts that the demand of laptop computer
was growing more than 25% over the past 3 years against the approximate 10 % in
Desktop computer. The laptop is expected to totally eclipse desktops in mature market
by late of 2007 or early 2008. Moreover, the gap of desktop and laptop is expected to
nearly reach a 50/50 desktop/laptop in 2010 which includes 75% for private consumer
and 15% for corporate use. (Hook R 2003)

The growth sales of world laptop market is driven by the increasing of processor
performance, connectivity capabilities (ex Wi-Fi, Wi-Max and cellular wide area
network), wide-screen LCD as well as longer battery and lower pricing. There are 5
popular computer manufacturers in the world market including HP, Dell, Lenovo
(IBM), Acer, and Toshiba. (Moskalyuk A 2007)

2.3 Laptop market in European countries
The European countries are a very big market of laptop computer where 495.6 million
people are living in 25 countries. According to the Euro Stat yearbook 2006/07 On-
Line, 62 percent of families have personal computers. The demand of personal
computer in EU countries is quite high comparing with other part of the world.

The demand of personal computer showed on the total sales jumped almost 20.3
percent in 2006 and expected further expansion in the laptop market by 17.2%.Market
Research Report published by Dinesh (2006) said that the weight and performance of
laptop computer is a strong factor and encourage student group buy computer for
personal use

Moreover, the level of knowledge and income directly affect the sales of computer.
As a result of the high computer skills in Europe which was reported by European
Commissions Statistical Office in 2006, Demunter (2006) it was mentioned that 90%
of young people aged 16 to 24 appear to have basic e-skills.
.

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2.4 Market strategies of laptop computer in Sweden 2006
There is high growth rate of laptop computer since 2003 which created a high
competition in the Swedens laptop PC market. The new brands came from Japan,
Taiwan, and China is alternative choices for budget consumers. The price strategic
used by Asian laptop manufacturers were changed the way of selecting a personal
computer.

The report from David L. (Larsson D 2006) mentions that in year 2006, total PC
including desktop and laptop computer sold in unit in Nordic countries was 1,546,935
units. It was approximate 6% growth from the year 2005.

In 2001, Swedish people used desktop computer instead of laptop. Approximate 56%
was desktop and laptop was used only 11% (Dinesh C 2006) and the other were
workstation and server computers. At that time, there are two giant computer
manufactures exported entire products to Europe and Sweden, HP and Dell, which
had first and second places in Sweden both desktop and laptop market shares.

At end of 2006, the consumer behavior was changing. Most people preferred small
size computer which are powerful. IT Research reported that the sales of laptops are
more than desktop computers that were 269,690 and 260,400 units. The major change
in the computer world came from the efficient in production process which got price
of laptop down. It affected students to switch their behavior from brand loyalty to
price sensitive. That is a major drive of laptop market growth. Sweden laptop market
had the highest growth rate since year 2000.Nowadays; HP is a leader in the Swedish
laptop market followed by Acer who holds second place in the laptop market with
13.4% share in 2006. (Gartner, 2007)

Sweden 2006 Growth,%
Total PC's 548.650 -1%
Laptops(business & consumer) 269.690 +24%
Servers 18.560 +6%
Workstations 11.565 +35%
Desktops, Business 146.510 -8%
Desktop, Consumer 102.325 -33%
(including Home-PC's) 61.725 -30%
Source: Larsson D, 2006 measurement by USD
Figure 1: Sweden PC Units comparison between 2005 and 2006

For the enormous demand of laptops in Sweden, every company wants to get these
market shares as much as possible. They tried open shops to gain consumers
confident and loyalty in their products. Stockholm is one of major attractive city for
them. The distribution channel is important for effective competition. Most of them
sell and promote their products in retail stores for example OnOff, Siba, ElGiganten,
Power, PCCity and expert. However, there are only two manufactures which sell
laptop computers from their own stores, these are Apple and Dell.

Thus, in the intensive competition of laptop computer, it is very important for
marketers to understand consumer and try to satisfy consumer need. Marketers may
be able to identify and develop marketing strategies to create a positive consumer

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attitude toward their brand. Many companies frequently use price competitive strategy
to attract customer.

2.5 Dell Inc
Dell is the second largest computer producer in the world, with has a world market
share of 15 percent in 2006 and shipped at 9.8 millions units with growth rate 3.5
percent (IDC Research 2007).

Dell Inc was established in 1984 by Michael Dell, it is
one of biggest global business in the computer industry. The majority sales of Dell are
computing products and servers both to end use consumers and to corporate
customers. Most of products same directly via Internet and Telephone network.

Source: IDC Research measurement by USD, M means million dollars
Figure 2: Worldwide laptop computer Market Share

Moreover, Dell uses Just in Time technique in inventory management to reduce the
inventory cost. Company doing business based on simple business model by selling
personal computer direct to customers. This model allows company control products
and services to reach highest customer satisfaction. Dells major competitors are HP,
IBM, Sony, Toshiba, and Apple. (Lowe C 2007)

Dell brand is well-known brand in Sweden where has been marketed more than 15
years ago. Because of after-sale services, many enterprises and schools always use
Dell computer.

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3 Conceptual Framework
The development of conceptual framework is the most important part for the research
which describes the relationship between marketing mix (Product, Place, Promotion,
and Price) and student consumers attitude. This model is used as a representation of
the theoretical systems that the author will test, examine, analyze, and conclude.

Source: Marketing Teacher Ltd
Figure 3: Conceptual framework of consumer attitude towards Dell laptop

As it can be seen in the diagram market input, purchase decision and psychological
inputs are directly related to the consumer. These factors affect the buying behavior of
consumer towards different products or services.
3.1 Marketing Inputs
In marketing inputs there are four factors i.e., 4Ps which are price, product, place and
promotion. An increase or decrease of price change consumers attitude toward
different things which the consumer needs .For Dell laptop different people have
different perceptions about price; it depends upon also target customers. For example
young age people may prefer more features in their laptop and ready to pay even some
extra prices where as mature or old age people some times may not want extra
ordinary features; they use computers for limited time. Price also relate to the quality.
Similarly place also matters in consumer behavior. Mostly people may want to
purchase product near their location or in their city.

For the laptop computer case consumers would prefer to buy in their city so that in
case of any problem or for upgrading they do need to wait or travel far to fix the
computer. Different kind of products has different impacts on consumer needs.
Innovation in products also gives new direction to the demands of customers. For the
case of Laptop computers or electronics latest features which were not used or
innovated before becomes the reason for buying products from the user.
3.2 Purchase Decision
Purchase decision can change the behavior of consumers in buying or selling, there
are also four factors which lead to the final decision of the customer to buy products.
These are Product choice, location choice, brand choice and other choices in which
some factors of quality and suggestion of friends also counts.

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Source: iMediaconnection.com
Figure 4:Purchase decision of the customer

Purchase decision, starts from the awareness about the brand, customers first time
hear about the brand and this brand name is some how remains in the mind of
consumers and continues as further learning about the brand. He makes the decision
about the buying of product and finally he buys his desired product. But the purchase
decision has influenced by marketing stimuli.
3.3 Psychological Inputs
Psychological inputs contain four factors which are culture, attitude, learning and
perception. These factors can directly or indirect be connected with consumers.

Cultural factors count whether in the region, his geographical back ground, and
ethical behavior in relation to the goods. Similarly learning about the product and
his/her perceptions about that product also relate to the buying of the desired goods.
Our main focus is on consumer attitude and perception.

3.3.1 Consumer Attitude
In the evaluation stage the consumer forms the preference among the brand in the
choice set. The consumer may also form an intention to buy the most preferred brand.
In this stage his attitude plays important role to buy from different brands. An attitude
is a persons enduring favorable or unfavorable evaluations, emotional feelings, and
action tendencies towards some objects or ideas (Kotler 2000, p 199). The company
would be well- advised to fit its products into existing attitudes rather than to change
peoples attitudes. At the attitude stage the consumer responds affectively taking a
more or less favorable position on the message and thereby establish positive or
negative attitude towards that product.

3.3.2 Consumer Perception
Perception is the cognitive impression usually consumer forms by the reality which in
turn influences the individuals actions and behavior towards some specific product.
Personal interpretation of what one sees, hears, smells etc. It is the process of
selecting organizing and interpreting information inputs to produce meaning.

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3.4 Demographic Variable
Demographic is an important role in market demand, segmentation which effected by
marketing mix in decision making process. The gender, income, age, education, and
occupation are heavily emphasized on this research. The author focused on young and
student group which has high education. According to Wayne D and Deborah J.,
(2007), age counts for difference in processing ability. First of all, young people are
interested on new technology more than older and they have faster learning process.
Moreover, old people consumers take more time to process information and make
decisions to buy laptop more than young people. Thus, this is the reason why the
author is interested on the young people group.

For our project the research has chosen age group of student population in Sweden
from age 18-35 as a target group for this research. This age group is using technology
especially laptop computer and may be many of them are using Dell brand.

3.5 Consumer Attitude and Behavior Theory
Consumer attitude is the most important for marketing literature, it is generally
influential thinking process and decision marketing that is directly related to consumer
behavior. In competitive market especially on laptop computer, the consumer attitude
is playing role effect to consumer decision making both directly and indirectly.
(Evans, M, Jamal, A, Foxall 2006, pp.67-75)

Attitude is coming from learning process in order to judge favorable or unfavorable in
a consumption product based on personal perception and experience. (Schiffman L, G
and Kanum LL 2004)

There are 3 component included in attitude model
Cognitive component - the generally idea which categorized by human
thinking.
Affective component the emotion changes the idea
Behavioral components a tendency to action

Consumer behavior reflects more than how a product is acquired by a single
person at any one point in time. Consumer behavior reflects the totally of consumers
decision with respect to the acquisition, consumption and disposition of goods,
services, activities and ideas by human decision making unit over time.( Wayne D.
And Deborah J. 2007)

3.6 Consumer Perception
It is a degree of knowledge perceived by consumer towards buying product
which evaluated by comparing between product characteristics and consumers need
and want. Mostly depending on the information they received regarding the product
and their experience. Consumers are frequency basing products largely on their
expectation.

On the other hand, consumer perception means that consumers see what they
expect to see depends on their general belief and stereotypes that affected by

11
marketing environment. Consumer may be influenced by marketing stimuli which
different for the different segments. (Leon G 1998, p.64)
3.7 Marketing Mix

Marketing mix theory tries to define the four elements which are price, product,
promotion and place. In the marketing mix each P defines that which benefits are
usually gained by the customers from the product

Source: Trump 360 business briefing
Figure 5: Marketing Mix

3.7.1 Price
Price is an element which the customers perceive and create wants to buy a product.
Sometimes it used to negotiate between buyer and seller to find the equilibrium price
by offering the discount such as discounts on product or service or credit term.
(Ghauri, P, Cateora, P 2006, pp.123-142)

3.7.2 Product
This element is focused on product itself. If looking on laptop computer, this elements
means quality of material, weight, communication capabilities, performance, storage,
design, packaging, warranties and so on. Moreover, it may be services that the
company offers for the target market. (Ghauri, P, Cateora P 2006 pp. 123-142)

3.7.3 Place
The distribution channel is very important to spread entire products to customer.
Computer producer can sell its products in own-shop, retailer, wholesaler, and over
the internet or phone ordering. To choose distribution channel computer producer
must be concerned on its products, market coverage, and logistic to efficient its

12
product available to target consumers as fast as possible. (Ghauri, P, Cateora P 2006
pp.353-380)

3.7.4 Promotion
The communication to persuade target customers to buy a product, there are many
channels to promote such as advertising over television, magazines, newspaper,
internet, radio, personal selling. To distribute information to right customer group,
company must know and select the suitable media that direct to specific group for
example stock portfolio software should advertisement in business and economic
newspaper to get close to business person.( Ghauri P, Cateora P 2006, pp. 387-410)

3.8 Brand Equity
It is value build in brand which is a focal point for of positive and negative
impressions created by the buyer over times which is related directly to the brand or
product. The consumer experience is emphasized on this sector. The brand equity
could be measured by the level of consumer perception toward goods and services.
(David A. 1991)

For some customers, they refer to brand toward goods and services. In the laptop
computer marketing, the producers try to promote their brand to improve brand
equity. For this research, the author has chosen Dell brand which the authors are
going to investigate the popularity and loyalty of Dell brand in the student group.

13
4 Research Methodology
In this research, the primary and secondary data have been used. The primary data
come from interview and survey which formulate questions based on theoretical
framework. The target group had been set in this part. The author focused on 18-35
year old students who live in Sweden. The quantitative data from survey used to
collect the information about customer need, want, attitude and perception. Authors
used it to formulate the question to interview Dell to find out whether Dell understand
consumer. The secondary data come from textbook, flyer, journal, website, e-
database., etc. It provided theories and useful information to do this research.

To analyze, the author used result from questionnaires that collect the information
from the respondents who are studying in Stockholm University, Mlardalen
University Vsters and Eskilstuna. The research used indirectly questions to get the
useful information. The Statistical Package for Social Science (SPSS) was used to
analyze in order to make it more reliable.

4.1 Research Model

Figure 6: Research Model
Source: Own design

The research model is presented in figure 1; it is developed for this study to
show the investigation process and alignment of the research topic, problem,
objective, theory, research method, finding, and conclusion.

Choose the Company
Choose the topic
Scope of project
Identify problem and
purpose
Select theories
Select research method
Data Collection
Analysis
Conclusion

14
In the research model authors tried to be precise and orderly. The research
model was developed gradually and step by step during whole research
authors have acted upon it.

First step is the choice of the company which will be a main focus in the
research. The author chose Dell Company the fact that Dell is a famous brand
in the field of both stationary and laptop computers.

The second step of the research model is the choice of topic; in this the author
was interested in the customers influence towards Dell laptops. Eventually the
author chose the students in the Universities in Sweden and their choice about
laptop computers.

In the third step scope of the study which focuses on the overall environment
of the Laptop computer market in Sweden in relation to the marketing stimuli
(product, place, price and distribution), the conceptual framework and the
means of collecting Data are discussed.

The fourth step focuses on the problem that Dell Sweden facing in Swedish
laptop market. The secondary data has been used in this step to identify the
problem and the author was set up the purpose to answer the problem
statement.

The fifth step of the study is chosen theories. The marketing mix and customer
behavior used to understand Dell customers in Sweden.

The sixth step focuses on the way of doing this study. The author decided to
use both qualitative and quantitative data. In the qualitative, the interview with
Dell marketing manager was important to understand Dell Sweden marketing
strategy and Dell attitude toward student customers in Sweden. In the
qualitative, questionnaire has been used to get the direct information from
students group.

The seventh is data collection. As the research method, the interview in the
way of e-mail and telephone interview with Dell marketing manager was
conducted. However, the information from company could not show the
overall image. The questionnaire to students in Sweden used to get the whole
image of customer attitude toward Dell laptop which shows the problem and
the possible way to improve Dells marketing strategy and techniques.

The eighth step, the analysis has been written based on finding and theories.
The aim of this step is to analyze the empirical finding by SPSS and used
theories to interpret the result.

The ninth step is conclusion; it is focusing on the overall of problems that Dell
has been facing in Swedish laptop market. The aim of this step is to answer the
problem and purpose statement base on the information that the author got
from both primary and secondary sources.

15
4.2 Sampling Procedures
4.2.1 Define the population of interest
The main aim of research was aimed to student consumers in Sweden, their influence
towards Dell laptops compared to others laptops. It was quite difficult for the author
to get the detail or do research on the whole student population in Sweden. So our
target population was young, universities students aged between 20-35 year old from
Eskilstuna, Vsters University and Stockholm University.

The main reason of selecting that target group was that these young people are in the
universities and well educated and may be after few years they have to come in some
managerial posts where they have to make key decisions in their firms about buying
goods. These groups are always interested in buying some latest model of new
technology product and ready to spend more money with high facilities. Therefore
since it was time limited research for the authors the author chose 400 student
respondents in 3 cities i.e., Stockholm, Vsters and Eskilstuna.

4.2.2 Determine whether to sample or census
Census is occurred when data is obtained fro every member of the population of
interest. This is very large complicated and expensive data gathering exercise which
also takes much time. As the authors have limited time for their research so sampling
method was chosen for our research for target population

For target sampling respondents the students from Stockholm, Stockholm University,
Mlardalen University Vsters and Eskilstuna also the campus of Mlardalen
University was selected for the interview. As in the table we have taken the sampling
of young Swedes aged from 18-35. The women and Men from difference ages total
number of women are 1,004,672 and men are 1,048,037 thus total number of
population is 2,052,709 for sampling
Age Women Men Total
18 58707 62,364 121,071
19 56078 58,24 114,318
20 54885 57,733 112,618
21 53656 56,425 110,081
22 51905 54,503 106,408
23 51416 53,887 105,303
24 52218 54,949 107,167
25 53103 55,071 108,174
26 54747 57,098 111,845
27 54002 56,2 110,202
28 52755 54,757 107,512
29 53818 56,183 110,001
30 5511 57,472 112,582
31 57826 59,954 117,78
32 60629 63,08 123,709
33 60402 62,324 122,726
34 61559 63,689 125,248
35 61856 64,108 125,964
Total 1004672 1048037 2052709
Figure 7: Number of men and women in universities in Sweden 2006
Source: Statistiska Centralbyran

16
Vsters Eskilstuna
Stockholm University

Total
10,140 23,106 33,246
Figure 8: Number of students in Stockholm University, Mlardalen University Vsters and
Eskilstuna
Source: Hgskoleverket report 2006

4.2.3 Choose a sampling method
Sampling method can be grouped under two headings, probability and non probability
sampling. We are using non probability sampling method because by using that
method the survey results are projected to the total population (plus or minus the
sampling error); the data is definitive rather than indicative. The sampling errors can
be computed. We can also be sure of obtaining information from a relatively
representative group of the population of interest.

The main types of non-probability sampling methods are:
1. Convenience sampling
2. Judgmental sampling
3. Quota sampling

For our research quota sampling is the most suitable method because this sampling
procedure demands that the number of sample elements possessing in certain control
characteristics (targeted university students) in the sample will be in the same
proportion as the number of elements possessing the same control characteristics in
the population. In that manner the sample derived will be a close replica of population
of interest at least from the view point of the control characteristics

4.2.4 Determine sample size
The target population for this study would be the owners of Dell laptops. But the
exact number of these laptops owners was unknown in the target area i.e., Stockholm,
Eskilstuna and Vsters. Sample size (Cochran, 1963) can be determined by the
following method

Sample Size = Z
2
x p(1-p)
E
2

= (1.96)
2
x (0.5) (1 0.5)
0.05
2

= 384
Z = score based on the confidence level. Standard Z values are 1.96 for 95%
Confidence intervals and 1.65 for 90% confidence intervals.
P = the population proportion for the research calculated by the percentage of
respondent. It assumed to be 0.05 %
Q = 1-p
E = the allowable error (precision), it is 0.05

4.2.5 Implement the sampling procedure
After determining the sample size and allowable sample error we have implemented
this in our research to know the behavioural influence of Swedish targeted customers
towards Dell laptop. The sampling error got i.e. 0.05 percent indicates that the
research is precise

17
4.3 Research Group
This research studied on the attitude of student consumers in Sweden towards a
personal computer. The internal and external environmental and marketing stimuli
affected on consumer measured and decision.

Internal stimuli explained as individuals past experience, characteristic and motive.
External stimuli included family, reference group and social class. Marketing stimuli
included the quality of product, pricing, distribution, promotion.

The author focused on:
Student group: This group is the major group for every computer producers. They
want to try a new thing especially on high technology. Some use computer for study,
surf internet or entertainment but others use it for playing game which required a high
performance system. Leslie M (2004) mentioned that the demand or changing of
laptop computer in this segment is very high comparing with the senior people. The
wireless and communication technology create value to student for using laptop either
at home or at school. Moreover, word of mouth information is important influential
factor affecting the students decision making (Thomas M 2997, pp.1-3). The author
selected students of Mlardalen either Vsters or Eskilstuna campus and Stockholm
University as target market for this research. Furthermore, the author used marketing
stimuli theory to understand student attitude toward laptop compute
4.4 Research Instruments
4.4.1 Qualitative
Qualitative research instrument helps to understand the richness, depth and
complexity of consumers (Malhotra: p 155). The interview conducted to Dell will
provide and help to develop an approach that will assist the author on the overview of
the Customer trend from Dell, especially students. This will be compared with the
consumer attitude to find the misunderstanding of Dell towards their student
customers, their future strategy and the current situation. The interviewee will be sent
by way of e-mail on 12th April 07 to Dell marketing manager Mr. Mattias Malre. It
will then be analyzed and sent back to the Dell again for specific areas after the
comparison with the questionnaires fro the consumers.

4.4.2 Quantitative
To collect the quantitative data, the author used questionnaire that is the best method
to gathering data from consumer side. It used to know the consumer attitude towards
personal laptop computer not only for Dell laptop but also it provides the general
information the overall demand of consumer. The simple and easy for understanding
questions is the major means for generating the questionnaire. Moreover, the
formation of questionnaire was based on the theoretical framework which is adapted
and related to purpose and problem statements.

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4.5 Primary
The research is made out of a quantitative data collection where 400 students at
Stockholm University, Mlardalen University Vsters and Eskilstuna are expected to
be the respondents to the questionnaires. The main aim of a primary data collection is
to get the description of the reality. In this case primary data will disclose whether the
students appreciate Dell laptop computers, and whether the students prefer and buy
Dell laptop computers to other computers. The collected data is analyzed and worked
upon statistically.

The primary data collection is used due to the fact that it gives the preferable result. It
is an advantageous method because the aimed population is questioned and the result
reflects that population. Primary Data will be divided into; Questionnaire and
Interview.

4.5.1 Interview
The interview which is the questions asked to the respondent either under the presence
of the interviewer or telephone interview was conducted. The interviewer would
thereby note down the answers given by the interviewee.

The first interview conducted to Dell Company was more of general questions which
will be analyzed and resend to specific questions after the student questionnaires are
analyzed. This is due to the need to study Dells attitude strength and weaknesses in
marketing of laptop computers to students that will be used in the conclusion and
recommendations.

The first interview questions were formulated and sent to Dell Inc Marketing Unit on
12th April 2007. The questions were sent by way of e-mail and were there by replied
by way of E-mail on 25 April 2007 by Mr. Mattias Marle who is the marketing
manager of Dell Sweden Located at Tby, Stockholm. The interview questions in this
interview were more general to understand Dells general attitude towards student
consumers.

However due to the discontented information provided during the first interview by
Mr. Mattias Marle and after the student respondents questionnaires were analyzed the
author took a decision to conduct another interview by way of a telephone with Mr.
Mattias Malre on 3rd May 2007 so as to cover up the parts which the e-mail reply was
not able to reveal and the queries arose after analyzing the student questionnaire.

All the interview questions to Dell Company were formulated according to the
theoretical framework. The aim was to understand whether Dell correctly understand
the attitude and trend of student customers in Sweden when it comes to the laptop
computers market.

4.5.2 Questionnaire
The questionnaire which comprises of a group of questions to be asked to the
correspondents will be set according to the theoretical framework. The questionnaire
has been constructed into the multiple choice questions and ranking scale which has
been presented to the respondent to answer the questions. The answers to the
questionnaire have been analyzed accordingly. The questionnaire focused on the
student customer.

19

The survey was conducted on April to May 2007 at Mlardalen University, Vsters,
Eskilstuna and Stockholm University where 400 questionnaires were distributed to
students directly by author. The Questionnaires were thereby distributed to the
respondents and the author waited until they were filled and were handed back to the
author. Due to the presence of the author on the scene the author tried to focus on
students who were using laptop computer and understand English language.

4.5.2.1 Questionnaire Development
The author has generated questionnaires for accomplishing a projects research
objective. The author has set up a questionnaire base on Malhortra (1999) design
which the author try to reduce the noise or distortion in the two way communication
in order to make effective questions for each respondent correctly understands what
the question is asking about. The clearly wording and sentence has been used to
eliminate the confusing of respondents. Moreover, the answering box and sequential
number; rating scale between Strong Disagree and Strong Agree; used for collecting
the response answer in the same manner as well as it can easy to analysis.

In this research, the Wilsons theory is helpful for us in the questionnaire design
process in order to enhance questions to fulfill the necessary information for analysis
and further use. The closed questions used for limited the widely opinion from
respondents. To make the result reliable, SPSS has been chosen to analyze the
relationship between marking stimuli and consumer behavior towards Dell laptop.

Source: Marketing Research by Alan Wilson,
Figure 9 : The questionnaire design process

The questionnaire is including 3 parts which have specific questions to identify the
consumer demand and perception toward laptop. There are 33 questions designed
based on theoretical framework to find the strength and weakness of Dell products.
The result from survey will be used by the author for analysis to get more dynamic
meaning.

20

Part I: The questions No. 1-6 are designed to gather the personal information of
respondents. The demographic questions divided to indicate gender, age, occupation,
education and average salary.

Part II: This part used for gathering general information about consumer attitude
towards personal laptop computer. The questions did not specify any brand because
the research needs to know the overall perception and demand that influenced by
brand and marketing stimuli (Price, Product, Place, and Promotion)
Part III: It designed for collecting the in-depth opinions from consumer toward Dell
laptop. The questions used to evaluate the strange and weakness in many factors. It is
useful for Dell to understand consumer attitude and trend of student.

In this part, the ranking scale has been used. The respondents can answer the
questions based on his/her favorite on each factors.
1 = Strong Disagree
2 = Disagree
3 = Neutral
4 = Agree
5 = Strongly Agree
At the last question, the author asks the summary of attitude of respondents towards
Dell laptop Computer. The ranking scale from
1 = Very Bad to 5 = Very good

4.5.2.2 Questionnaire Description
Theory Descriptive Result Questions
Specifications No.15 Product The overall about Dell
laptop computer.
Trustworthiness
Design
Mobility
Accessories
Warranty

No. 17-21
Price The price of Dell laptop
computer towards
consumer perception and
acceptations
Affordable price
Competitive price
Value of money
No. 22-24
Distribution Centers No. 12 Place The marketing channel
used to distribute product
to customer as well as
product accessible and
availability
Distribution Channels
Order Processing
Variety of products in shop
No. 25-27
Promotional Strategy No.15 Promotion The marketing sale
strategy used to attract
new customer and satisfy
the consumer need.
Advertising
Sales promotions
Marketing communications
No. 28-32

21
4.5.2.3 Pre-Testing
The pre-testing used to make sure the questionnaire will be getting the correct answers
from sampling group. Moreover, pre-testing used to identify the errors and problems
which caused by respondents misunderstand. The problem questions and answers will
be revised before distributing the questionnaire to the sampling group. The process of
testing was setting based on The International Development Research Centre (IDRC).
After the pre-testing respondents answered all of the questions, the respondents will
be asked by the author to explain about the opinion with the trial version of
questionnaires. The recommendations were used to improve the question and
eliminate the unclear answering choices.

The pre-testing was conducted on 13 April 2007 at Mlardalen University, Vsters
where 10 questionnaires were distributed to selected respondents. The author tried to
look for the evidence of vague questions by testing all of possible answers from
respondents. The first testing group was students who were using Dell laptop. The
second group was person who were not using Dell laptop and using other brand. The
last group was students who were using desktop computer in the computer room.

4.6 Secondary data
Secondary data are the second hand data that have previously been collected by and
assembled for the study concerned. For the purpose of this research the secondary
data has been collected from different sources i.e. textbooks, internet, databases, old
thesis, and journals.

From the secondary data the theory which sets the boundary of the thesis was
formulated. The collected theory from the secondary data was the marketing mix
theory which is used in this research under the theoretical framework part. The theory
was as well used to formulate the questions for both the questionnaire and the
interview questions.

Literature Review
Literature review has been conducted during our research when we needed important
information used for our research. For our research literature review was conducted
mainly from the Universities library in Vsters, Stockholm and Eskilstuna as well as
city libraries. In some cases authors could not get the latest market information about
laptop therefore different kind of newspapers and journals were also consulted from
time to time.

The background information about marketing mix and segmentation was also
retrieved from web-databases such as Google and Mlardalen university web
databases. For statistics of our target population Swedish Statistical Database website
was consulted and these statistics was used to know the use of computer in young
Swedes and later in the research which gave us idea how much young Swedes spend
on their computer especially on laptops. There was some research already done in the
field of laptop buying behavior which was a guideline for us.

Marketing Management (Philip Kotler), we have used in our marketing research. This
gave us sharp idea about customer relationship, brand building and brand asset

22
management. It gave us also guideline of building customer satisfaction, analyzing
consumer market and buying behavior. Moreover, it is dealing with competition,
designing pricing strategies and programs. We used this book for also broadening our
knowledge in managing sales forces and sales promotion strategies.

Consumer Behavior (Hoyer/McInnis), Consumer behavior by Hoyer and McInnis is
another useful information source for our theories and methodology. It gave us
knowledge of knowing consumer behavior towards different goods especially towards
technology and new innovations. It also gave us knowledge of knowing the behavior
of different genders and their ages towards different goods.

Consumer Behavior (Martin Evans, Ahmad Jamal and Gordon Foxall), Consumer
behavior by Martin Evans, Ahmad Jamal and Gordon Foxall is very informative book
which resembles to our ideas and is very helpful source for our research. It provided
us qualitative information and helped us completely to know culture, consumer gaps
and new trends to different technologies. As the knowledge and statistics in it are
latest so it gave us up-to-date information which was quite useful for us.

International Marketing (Cateora and Ghauri) European Edition, this international
Marketing book was quite relevant to our selected theory of Marketing Mix for our
research. This book was written by Cateora and Ghauri. Moreover it was useful
source to understand the marketing strategy of different companies. There are
planning, entering and customer attractive strategies etc.

4.7 Research Review
During the process, the author found some limitations and weaknesses of our thesis
that could be improved. First of all, the author had facing some problem in gathering
information process. Due to the limited of time range, the author conducted the study
only on 3 cities including Vsters, Eskilstuna and Stockholm which the author
cannot spread the questionnaire to every part of Sweden. Moreover, the major
problem is the time limit which the author can conduct questionnaire only in the area
of April to May 2007. It is impossible to get enough information to summarize the
suggestion of the overall Swedish consumers.

Moreover, lack of secondary sources and literature reviews about Dell in the Swedish
market had taken time for author. Furthermore, the questionnaire was prepared only in
English language.

4.8 Analysis Method
In order to get reliable result, the research used Statistical Package for Social Science
(SPSS) to analyze the questionnaires.

Firstly, the research set the hypothesis to the scope of the research result which should
be related to problem statement and purpose. Moreover, it used for make a decision
whether the authors prediction are correct. Secondly, the research will get useful
information about consumer attitude towards Dell laptop computer it will tell the
strength and weakness of Dell products or services based on marketing mix and
consumer behavior. The author will find the major cause of Dell losing market share.

23
Furthermore, it provided the future trend of students who may be purchase decision
maker in the future. Lastly, the author will used analyzed results from questionnaire to
formulate extra interview questions to get deeper answer.

4.8.1 Data Analysis & processing

Figure 10: Analyze process
Source: Zikmund. 1996 pp 508

Step 1: The author try to translate responses answer into form that is ready for
analysis. The SPSS structure will be formulate in this step.
Step 2: Tabulating technique used to make data easy to understand. There are 2 types
of measurement data used in this research.
1. Nominal Data: the number assigned to selecting choices which don not
have true numeric meaning i.e. Gender (1) Male (2) Female.
2. Interval Data: The interval numbers used for interpret scale for ranking the
range between strongly agree and strongly disagree.
Step 3: The hypothesis used in this step to analyze based on SPSS result.

4.8.2 Method used for Hypothesis
Hypothesis Statement Used
Ho There is no relationship between consumer perception and product
element of Dell laptop
Ha There is relationship between consumer perception and product
element of Dell laptop
Correlation
Ho There is no relationship between consumer perception and price of
Dell laptop.
Ha There is relationship between consumer perception and price of Dell
laptop.
Correlation
Ho There is no relationship between consumer perception and Dell laptop
distribution channels.
Ha There is relationship between consumer perception and Dell laptop
Correlation

24
Hypothesis Statement Used
advertisements.
advertisements.
Correlation
promotions.
promotions.
Correlation

Figure 11 : Hypothesis statement & Statistic used
The authors used hypothesis to help for investigate the problem that Dell has facing.
The number of significant will tell the authors whether or not it has problem in this
hypothesis . If the significant show negative data, it means that Dell has problem on
this argument.

Correlation Coefficient is the direction of a linear relationship between two variables
which are used to analyze whether two variables move together. If the coefficient is
+1.0 means the value of two variable moves in the same direction. Both variables
have relationship. In the other hand, there is no relationship between predicted values
when correlation coefficient is 0.But if correlation coefficient is -1.0; it means the
value of two variables move in the opposite direction (Deacon J 2003).

4.9 Reliability and Validity
Reliability is the degree to which a measure of concept is stable, it refers to the ability
to obtain similar results by measuring an object, trait, or construct with independent
but comparable measures (Marketing Research, Gilbert A, and Churchill JR: p.405).
The less likely measurement error will occur (Marketing research, Robert A Peterson,
281). Validity refers to the extent to which a scale measures what it was designed to
measure. It is also the extent to which differences in scores on a measuring instrument
reflect true differences among individuals, groups, or situations in the characteristics
that it seeks to measure, or true differences in the same individual, group or situation
from one occasion to another, rather than constant or random errors.

The authors interviewed students in three different universities in Sweden. They are
located in quite different parts of Sweden and therefore might have slightly different
kind of views about Dell computers .However, the authors are not inclined to believe
that students in Sweden can be very different in this matter just because they live in
different part of the country. Dell strategy of handling its customers is the same where
the company is providing its services or in which places Dell is operating. Based on
that fact the authors argue that reliability and validity of our sample are sufficient, As
far as outcome is concerned the authors think it is more reliable because the
questionnaires were conducted face to face with the targeted customers rather than e-
mail or other indirect way. The sample size was 400 in the authors view the
reliability would be more certain if the sample size would be greater. It make the
result reliabe because it will be(remove that) reduce the number of errors that come
from bias , loyalty in brand or other environments.

25
4.10 Criticism
As the authors have tried to their best of their capability to get the accurate view of the
students in Sweden towards Dell laptops computers but there is possibility that there
are some areas that might not have been covered due to limited time of the research.

As mentioned before the authors target age was 18-35 in which limited number of
students with sample size of 400 students, if age range would be higher and sample
size bigger there is a high possibility that the validity of the data would have
increased.

Since the authors have researched on the influence of students in Sweden towards
Dell laptop computers but the places the authors have chosen for target customers are
mainly three universities i.e., Stockholm, Vsters and Eskilstuna which are some
how populated cities with students but it would be better if more cities were added in
our interview so that better and more precised view could be obtained.

In the authors overall work they presented research process and all the methods that
they used with the basic aim to provide the readers with clear picture of investigation
and research plan. In this context one limitation is also that the authors interviewed
only the university students who do not represent the whole student group in Sweden.
Therefore this interview provided only very low percentage of the student group in
Sweden.

26
5 Empirical Finding
This part describes a summary of respondents information gathered from surveys.
The result has shown by descriptive, frequency, and correlation in SPSS program.
The information from interview with Dells manager has been presented.

5.1 Demographic of respondents
This descriptive static used for transform raw data from respondents into the form that
easy to understand. The frequency was show both in percentage and number which
classified by gender, age, occupation, nationality, education and average income per
month which shown in the following table.

5.1.1 Gender
Frequency Percent
Male 206 51.5
Female 194 48.5
Total 400 100.0
Table 1: Frequencies of respondent classified by Gender

As it has seen from Table 1, the number of respondents who reply questionnaire was
400 persons including 51.5 % male respondents and 48.5% female respondent who
participated in the questionnaire. All responses came from 400 students who were
studying Stockholm University, Mlardalen University Vsters and Eskilstuna

5.1.2 Age
Frequency Percent
18-23 year old 169 42.3
24-29 year old 185 46.3
30-35 year old 46 11.5
Total 400 100.0
Table 2: Frequencies of respondent classified by Age

From Table 2, the target group investigated in this research was between 18-35 year
olds. We found that age range 18-29 years was mostly of respondents which showed
on age range 24-29 years (46.3%), followed by age range 18-23 years (42.3%) and
age of 30-35 years (11.5%). The respond from less than 18 years old and more than
35 years old had been thrown away.

5.1.3 Occupations
As we conducted survey in three university which focus on student and young people
who age range 18-35. We found that all of respondents were students.

5.1.4 Nationality
Frequency Percent
Swedish 238 59.5
Others 162 40.5
Total 400 100.0

Table 3: Frequencies of respondent classified by Nationality

27
We found that there are a lot of international students who studying in Stockholm
University, Mlardalen University Vsters and Eskilstuna. Table 3 shows 59.2% of
respondents were Swedish and 40.5% were international students.

5.1.5 Education
Frequency Percent
Diploma, High School 156 39.0
Bachelor's Degree 135 33.8
Master's Degree 106 26.5
Doctor's Degree 3 .8
Total 400 100.0

Table 4: Frequencies of student respondents classified by Education

Table 4 shows the level of education of respondents who students are holding the
highest or current education divided into four categories.

The result shows that 39.0% held the Diploma and High school Degree, while 33.8%
held Bachelor Degree. There are 26.5% of respondents held Master Degree and it is
only 0.8% held Doctor Degree.

5.1.6 Income per month
Frequency Percent
Less than 10000 SEK 368 92.0
10001-20000 SEK 21 5.3
20001-30000 SEK 11 2.8
Total 400 100.0
Table 5: Frequencies of respondent classified by Income per month

The income is being referred to be basic in Swedish Krona. Because most of
respondent was student, so they didnt have high income. It shows that 92% of them
had less than 10000 SEK, followed by 10001-20000 SEK (5.3%) and 20001-30000
SEK (2.8%). We didnt found student who had income more than 30000 SEK.

5.2 General information about consumer attitude toward
laptop computer
In this part, the authors designed to collect the consumer opinion, demand and
perception. The filter questions have been used to make sure that respondents have
knowledge and experience about laptop computer. This part consists of questions that
asking about favorite brand, buying purpose, and marketing stimuli factors which
effected to consumer buying behavior.
Frequency Percent
Dell 69 20.4
HP 68 20.1
Acer 45 13.3
Toshiba 41 12.1
Others 116 34.2
Total 339 100.0
Table 6: Frequencies of respondent classified by brand

28

From survey, there are 339 (84.8%) respondents have laptop computer for personal
used. Table 6 indicated that favorite laptop computer brand; respondents were likely
use Dell (17.3%) quite similar percentage with HP (17%) while Toshiba 10.3%, Acer
11.3% and other brands 29%.

Frequency Percent
Missing Value 2 .6
Study Purpose 223 65.8
Work Purpose 34 10.0
Entertainment Purpose 35 10.3
Communication Purpose 45 13.3
Total 339 100.0

Table 7: Purpose of buying a laptop computer

From table 7, it shows that main purpose for buying a laptop computer. Study was a
major purpose for respondents that show 65.8%. While communication purpose
13.3% followed by work 10% and entertainment 10.3%.

Frequency Percent
5001-6500 SEK 63 18.6
6501-8000 SEK 97 28.6
8001-9500 SEK 68 20.1
9501-1100 SEK 80 23.6
More than 11001 SEK 31 9.1
Total 339 100.0
Table 8: price for a Laptop computer for general used

This statement was asking about the affordable price of laptop for general used. The
range of laptop price has arranged by the present price of laptop in retailer store
(OnOff). Table 8 indicates that 28.6% respondents thought that 6501-8000 SEK was
the most affordable price for laptop. However, 23.6% respondents thought the
affordable price range was 9501-11,000 SEK, followed by 8001-9500 SEK (20.1%),
5001-6500 SEK(18.6% ) and 9.1% respondents accept price more than 11,001 SEK.

Frequency Percent
Cheap price 80 23.6
Easy to buy 3 .9
Product quality 193 56.9
Interesting Promotion 13 3.8
Well-know brand 37 10.9
Good in customer service 13 3.8
Total 339 100.0
Table 9: The most important influence of buying decision

The most influential factor for every product is product quality and services which
shows 193 (56.9%) respondents thought that quality of laptop was most important for
buying decision. Cheap price was second important factor that shows on 23.6%

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followed by well-known brand 10.9%. However, Good in customer service 3.8%,
interesting promotion 3.8%, and easy to buy only 0.9%.

N
Retailer 213
Producer 82
Internet 125
Telephone 2
Exhibition 26
Total 448

Table 10: the popular place for buy a laptop

From Table 10, it shows the popular place which respondents expected to buy a laptop
computer. Most of respondents prefer to buy computer from retailer shops which they
can test, touch, and get information directly from sales person. The frequency from
retailer shows 213 responses. However buy over internet 125 responses, producer
owned sale shops 82 responses, exhibition 26 and telephone 2 responses.

N
Television 40
Magazines 84
Radio 15
Internet 243
Flyer 61
People around you 115
Total 690
Table 11: Information distribution & Marketing of laptop computer

The respondents received information about laptop from internet (243 responses) was
more than other channels, followed by people around them 115 responses, Magazines
84 responses, Flyer 61 responses, Television 40 responses and Radio 15 responses. To
understand this information distribution, marketer will know the effective and
efficient advertisement channel that used to create and distribute its message to
customer.

Frequency Percent
Missing Value 4 1.2
Color 37 10.9
Weight 52 15.3
Specification 231 68.1
Battery life 15 4.4
Total 339 100.0
Table 12: The element of laptop effected to consumer buying decision.
From Table 12, it indicated that what is the important element of laptop that consumer
expected. The information gathered from respondents show that they were interested
on specification of laptop 68.1%; such as hard drive, CPU, RAM; was most important
for them. However, weight (15.3%) was in second position. While color was 10.9%
normally there are limited colors of laptop computer, mostly black or silver color. The
battery life was the last at 4.4%.

30
Frequency Percent
Coupon and gift voucher 10 2.9
Discount 201 59.3
Loan at cheap interest rate 56 16.5
Free Offer 72 21.2
Total 339 100.0
Table 13 : The favorite sale promotion program
From table 13, Sales discount was the most popular for consumer which shows
59.3%, followed by free offer 21.2%; such as optical mouse, extra ram, notebook bag,
cheap loan for student 16.5%, and coupon/gift voucher 2.9%.

5.3 Consumer attitude towards Dell Laptop
In this section, authors asked deeply questions about consumer opinion and attitude
towards Dell laptop. Question no 16 used to check whether respondents have
experience about Dell laptop. As the survey conducted, the authors found that there
are only 293 respondents had known about Dell laptop out of 339 respondents who
have own laptop. The question in part 3 has presented in the form of frequency. The
dynamic table helps reader easy to understand.

The questions have formulated based on 4 elements of marketing mix; product, price,
place and promotion. Each statement used ranking scale to define the level of
agreement from respondents. The scale divided into 5 ranks; Strongly Disagree,
Disagree, Neutral, Agree, Strongly agree.

5.3.1 Product
Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
Mean Standard
Deviation
Trustworthy 39 12 109 95 38 3.28 1.160
Design 17 28 109 119 20 3.33 0.949
Weight 17 38 170 55 13 3.03 0.854
Specification 7 36 121 109 20 3.34 0.867
Warranty 1 23 162 85 22 3.35 0.747
Table 14: Consumer attitude towards elements of product

The elements of products are important for consumer to select and buy a product or
services. Table 14 reports that respondent felt neutral (109 responses) in the brand
trustworthy. However, 95 respondents agreed in this statement and followed by
strongly disagreed 30 responses, 38 respondents strongly agreed, while 12
respondents disagreed with the statement.

In product design, 119 respondents agreed that Dell laptop is modern design. While
109 respondents were neutral, 28 respondents were disagreed, 20 respondents were
strongly agreed. In the other hand 17 of them were strongly disagreed.

The weight of laptop is one of majoring factor for students who want handle his/her
laptop to school. The majority 170 respondents were neutral with the statement. The
number of agree were 55 responses and disagree were 38 response. However, 55
respondents strongly agreed that Dell is mobility laptop and only 17 respondents were
strongly disagreed in this statement.

31

The knowledge users may look at specification of laptop at the first thing. Some of
them were interested on speed of CPU, ram or capacity of hard drive. Otherwise, they
were looking on the size of screen. In this statement, 121 respondents felt neutral that
Dell provided good specification, 109 respondents agreed, 36 respondents were
disagreed,20 respondents were strongly agreed and only 7 respondent dislike Dell
laptop specification.

In the high technology product, the warranty encourages consumers confidence in the
product. The majority of respondent were neutral (152 response) with the statement,
85 respondents were agreed, 2 respondents satisfied. While 23 respondents were
disagreed, only one respondent strongly disagree on this statement.

5.3.2 Price
Strongly
Disagree
Agree
Mean Standard
Deviation
Affordable
price
14 50 127 86 16 3.14 0.926
Competitive
price
9 34 146 82 22 3.25 0.871
Value of
money
10 36 155 76 16 3.18 0.841
Table 15: Consumer attitude towards elements of price

Price is key factor to attract customers. The cheap price and premium price focus in
difference class of customers. Table 15 reports that 127 respondents though that Dell
laptops were neutral about affordable price, while 86 respondents were agreed, 50
respondents were disagreed, 16 respondents were strongly agreed and only 14
respondents were strongly disagreed.

The competitive price is important in marketing stimuli to attract customers. Most of
computer used competitive price strategy to increase sales volume and increase
market shares. As the result, it reports that 146 respondents felt neutral through Dell
laptop offered competitive price comparing with other brands. 82 respondents agreed
in the statement and 34 respondents were disagreed, while 22 respondents were
strongly agreed and 9 of them were strongly disagreed.

The last statement about element of price reports 155 respondents were neutral with
the statement that Dell laptop was value of money, 76 respondents were agreed, and
16 respondents were strongly agreed. In other hand, 36 respondents disagreed and 10
respondents were strongly disagreed.

32
5.3.3 Place

Strongly
Disagree
Agree
Mean Standard
Deviation
Dell should
have more
shops
26 42 106 87 32 3.19 1.095
Easy to buy 19 47 108 78 41 3.26 1.088
Available 28 22 156 62 25 3.12 1.000
Table 16: Consumer attitude towards elements of place

The distribution channel is major for get closely to customer. We found 106
respondents were neutral in the statement that Dell Inc should have more owned
shops. 87 respondents were agreed, and 32 respondents were strongly agreed, while
42 respondents disagreed and 26 respondents strongly disagree.

The majority of respondents 108 responses felt neutral in the way of Dell sale laptop
computer; internet and telephone order; 78 respondents agreed, 47 respondents
disagreed, 41 respondents strong agree, whereas 19 respondents strongly disagreed
with the statement.

In the last elements of place, 156 respondents neutral with the statement that Dell Inc
provided variety of laptops. 62 of responds agreed, 28 responds strongly disagree
while 25 responds strongly agreed and 22 responds disagreed.

5.3.4 Promotion
Strongly
Disagree
Agree
Mean Standard
Deviation
Print ads 27 50 117 93 6 3.00 0.970
Television 59 61 108 55 10 2.65 1.103
Internet 50 59 147 32 5 2.60 0.951
Remember 31 73 88 75 26 2.97 1.134
Sale
promotion
16 52 185 32 8 2.88 0.775
Table 17: Consumer attitude towards elements of promotion

From table 17 indicate the best advertising channels should based on consumer
perception as well as consumer attitude towards Dell laptops sale promotion. The
print ads in magazines, newspaper, and billboard were popular to distribute
information to customer. It shows 117 respondents felt neutral toward Dell laptop
information from print ads; whereas 93 responds agreed, 50 responds disagreed, 27
responds strongly disagree and 6 respondents answered strongly agree.

Television is the fastest distribute media to entire customer. It shows that 108
respondents neutral with the statement that Televisions lead them interested in Dell
laptop. 61 respondents disagreed, 55 respondents agreed, 55 respondents were
strongly disagreed and only 10 respondents strongly agreed.

From the rapidly development of internet, the advertisement over internet is a good
chance for every company to promote or sale products and services. The result

33
collected from respondents shows that 147 responds were neutral with the statement
that internet ads lead consumer interest in Dell laptop. While 59 respondents were
disagreed, 50 responds strongly disagreed, however, 32 responds agreed and only 5
respondents strongly agreed with the statement.

To define the effective of Dell advertisement, this statement asked to respondents
about the level of respondents whether they remember Dell laptop advertisement.
There are 88 respondents answered neutral, 75 respondents agreed, 73 respondents
disagreed, 31 respondents strongly disagreed, and 26 of them answered strongly
disagreed.

In the last question of promotion element, the majority of total 185 respondents felt
neutral like sale promotion program of Dell laptop. While 32 respondents agreed, 52
respondents disagreed and 16 respondents were strongly disagreed and 8 respondents
strongly agreed with the statement.

5.3.5 Overall consumer attitude towards Dell laptop

Frequency
Disagree 38
Neutral 118
Agree 107
Strong Agree 30
Total 293

Table 18: Summary of consumer attitude towards Dell laptop

The last question used to define the overall consumer attitude towards Dell laptop.
The question ask about the perception of Dell laptop in every factor such as price,
place, product, promotion, service and etc. The majority of respondents 118 felt
neutral toward Dell laptop, while 107 respondents were agreed and 30 respondents
were strongly agreed and there are 38 respondents were disagreed with the statement.

5.4 Interview
Dells attitude towards student market
In this part the authors conducted the interview with Dell Company in order to
examine and understand Dells attitude towards the Swedish laptop computer market
to students. This will facilitate the comparison with the findings in the consumer side
to come up with an effective conclusion. The interview was conducted with the Dell
representative Mr. Mattias Marle, the marketing manager for the Swedish market. The
questions asked to Dell Inc were general and seek a general overview of the Dell
understanding of the Student laptop market.

The interview was firstly conducted on 12
th
April 2007 where an e-mail with
interview questions was sent to the Dell marketing Department in Sweden at their
offices in Tby, Stockholm. The e-mail was replied but with unsatisfactory answers
together with the analysis of the questionnaires to student respondents necessitated
another interview by way of Telephone with Mr. Mattias Malre, the marketing

34
manager of Dell Sweden office. The authors conducted a second interview by way of
a telephone so as to cover up that part of the interview answers that did not provide
enough information and the new ideas after analyzing the questionnaires from student
respondents.

The first question focused on the strategy; the authors want to be furnished with Dells
general strategy for the laptop computers. From the interview the authors found that
Dell has two strategies namely sell strategy and distribution strategy.

a) Sell strategy (pricing)
In the e sell strategy, Dell focus on the satisfying their customer with low prices. This
is achieved by cutting the costs through selling directly to customer through the
internet and telephone. Coming to distribution strategy

b) Distribution strategy
Under the distribution strategy Dell aims at selling the laptop computers direct to
consumers through a direct internet or telephone shop. This makes the cost low for
Dell due to the fact that the laptops are made and send directly to the consumer after
ordering.

For the case of Dells laptop computer marketing strategy to students the authors found
that Dell has a promotion strategy of its laptop computers to students. This is done
through using for example, student bodies that are responsible for the production of
student identity cards to promote Dell laptop computers. The student body for
example studentskr or the student identity cards producers such as macerate gives is
used by Dell to promote laptop computers to students through giving student who
bear the identity card to get an offer when buying Dell laptop computers. Currently
the promotion strategy to students is 5% less when a student buys Dell Laptop
computer.

On the second question the authors seek to understand whether Dell is using pricing
as a means of competition. The authors were furnished with the information and
found that Dell does use pricing as a means of competition so as to compete with the
other Laptop computer companies. Contrary to what the author thought in the
beginning that Dells image would be affected by lowering the prices the finding
shows that no effect is occasioned to Dell image by lowering the price because this is
sometimes necessary for competition purpose.

On whether Dell has a target group of customers the finding shows that Dell major
target group ranges from the companies, that is big companies, small companies and
medium sized companies, global organizations and the public sector which includes
the students.

On Dell overview on the customer trend, especially students of the laptop market the
authors would like to find out what Dell thinks about the student customers
preference, for example whether the customers prefer cheap laptop with more quality
function standards or expensive computer with more quality functions standards. The
author discovered that Dell view the all customers plus the student customers trend as
the same. All customers prefer laptop computers that are low in price but with more
functions and quality standards. Furthermore, the authors discovered that Dell had to

35
concur with this attitude through coming up with low price laptop computers which
are well equipped with quality functions and of high standard.

On whether Dell lost the market shares last year to Acer laptop computers and
whether Dell has any recovery plan the authors were inquisitive to find out what Dell
has any new marketing strategy. The authors learn that Dell really lost the marketing
share last year and that Dell was force to embark on a recovery plan which was to
establish a good relationship with students who consume Dell laptop computers not
only because they are student but also because student are the future consumers and
decision makers in the organizations they are going to work with. Moreover the
authors discovered that Dell embarked on price wars by reducing the price of Dell
laptop computers so as to match the price of competitors. The last recovery plan was
to increase promotion which was formerly on the internet only to sending flyers and
Letters more often to consumers

The authors were also concerned on whether Dell will have a solution on the loss of
market by considering selling Dell laptop computers in the retailer stores where would
be accessible by consumers who tend to buy products after touching them instead of
the Dell internet direct selling. The authors found out that Dell Company is by no
means planning to sell its computers through the retail stores like its competitors. This
is due to the fact that Dell makes the laptop computer and sells it after it is ordered.
This way was an assurance way according to the Dell representative that It assured
Dell of the security of Dell laptop computers from being copied by the competitors
and it is a cheap way of production because Dell does not need to have the ready
made computers in the inventory, therefore reduce the inventory keeping costs which
ultimately reduces the production cost and the price of a Dell laptop becomes cheaper.

Concerning the promotion of the laptop computers to students the authors wanted to
empirically be refreshed on the kind of promotion used by Dell. The authors would
use these to compare with what the consumers like and find the preferable promotion
that can be used by Dell. As mentioned above Dell Company uses discounts to student
buying the laptop computers as their promotion when students buy Dell laptop they
have to show their student identity card in order to get the discount. Moreover sending
students letters, flyers and engage in educational programs such as giving students
practical jobs at Dell and advertising Dell through internet, TV and magazines
apparently Dagens nyheter is used for advertisement.

Finally on the question concerning how Dell promote its laptop computers to students,
the authors aimed at digging up what kind of promotion Dell is using to send its
marketing message to students so as to come up with the suggestion on whether it is
an excellent method. The authors found out from the interview with Dell
representative that Dell is using the student organization called studentskr during the
production of identity cards to get a discount when purchasing Dell laptop computers.
Another way of promoting Dell to students is through Dell academic competitions in
writing thesis for example. Moreover Dell is using the Universities to promote their
laptop computers to students, according to the Dell marketing manager Mr. Mattias
Malre many universities in Sweden including Mlardalen, Eskilstuna and Stockholm
University buy their computers from Dell, indirectly this promotes Dell computers to
students because these computers are used by students at these Universities. Dell has

36
educational programs such as the practical work for students at Dell Company which
exposes students to Dell laptop computers and thus promotes Dell to students.

Conclusively, the authors found out that Dell Company uses the marketing mix to
promote the Laptop computers to students. In details Dell uses its product that is the
laptop computers of high quality which is sold at a lower price directly from the Dell
company ware house to the consumer that is the students after placing the order on the
internet or telephone.

37
6 Analysis
In this study, the marketing mix; price, place, promotion, product; and consumer
attitude towards Dell laptop has been investigated. The authors tried to find the
relationship between consumer perception and elements of marketing stimuli. The
strength and weakness of Dell marketing strategy will be shown in this part.

6.1 Hypothesis Test

Statement 1
Ho There is no relationship between consumer perception and product element of
Dell laptop
Ha There is relationship between consumer perception and product element of
Dell laptop
Result = Reject Ho

Consumer attitude towards
Dell Laptop computer
Product
Consumer attitude
towards Dell Laptop
computer
Pearson Correlation
1 .669(**)
Sig. (2-tailed) .000
N 293 293
Product Pearson Correlation .669(**) 1
N 293 293
** Correlation is significant at the 0.01 level (2-tailed).

Table 19: Relationship between consumer attiude toward Dell laptop and product

From table 19, it shows the significant was 0.000. It means that there are relationship
between two variable; consumer attitude and Dell Laptop. Both of them is positive
relationship when one of variable increase, another will increase too. Moreover, there
is high positive relationship which shows on 0.669. The consumers are satisfied with
Dell laptop product which provided good specification, product quality and design. It
is positive relationship with overall consumer attitude toward Dell laptop.

38
Statement 2
Ho There is no relationship between consumer perception and price of Dell
laptop.
Ha There is relationship between consumer perception and price of Dell laptop.
Result = Rejected Ho
Consumer attitude
towards Dell Laptop
computer
Price
Consumer attitude
towards Dell Laptop
computer
Pearson Correlation
1 .250(**)
N 293 293
Price Pearson Correlation .250(**) 1
N 293 293
Table 20: Relationship between consumer attitude toward Dell laptop and price

It indicated that the price and consumer attitude have relationship. In the case of
consumer is satisfied with Dell laptop price, it effect positive to overall consumer
attitude towards Dell laptop. That shows on significant .000 less than 0.01 of
correlation significant level. Moreover, there is low relationship which shows on
0.250. The consumers think that Dell laptop is affordable price. But the result is quite
different between respondent who are satisfied and those who are dissatisfied.

Statement 3
Ha - There is relationship between consumer perception and Dell laptop
Result = Failed to Reject Ho
Consumer attitude
towards Dell
Laptop computer
Place
Pearson Correlation
1 -.096
N 293 293
Place Pearson Correlation -.096 1
N 293 293
Table 21: Relationship between consumer attitude toward Dell laptop and place

From the table 21, there is no relationship between consumer perception and Dell
laptop distribution channels. The consumer satisfied in Dell laptop but they did not
like the way of Dell laptop sales its product. The significant was 0.102 more than 0.01
correlation significant level. The two variables have negative relationship with each
others. But the negative relationship is quite low which shows only -0.096. In the
statement, the respondents are not satisfied in the way of distribution. As the result

39
from questionnaire, customer really needs to buy laptop in retailer store in stead of
buy over internet.

Statement 4
advertisements.
advertisements.
Result = Rejected Ho
Consumer attitude
towards Dell Laptop
computer
Advertisement
Pearson Correlation
1 .403(**)
N 293 293
Advertisement Pearson Correlation .403(**) 1
N 293 293
Table 22: Relationship between consumer attitude toward Dell laptop and advertisment

From table 22, the significant was 0.00 which mean there is relationship between
consumer attitude and Dell advertisement and it is moderate positive relationship
between two variables which shows 0.403. Most of respondent satisfy and get good
information from Dell advertisement. In other hand, fewer respondents don not like or
remember advertisement from Dell. Dell needs to improve or adapt effective
advertisement to promote its products in Sweden laptop market.

Statement 5
promotions.
promotions.
Result = Reject Ho
Consumer attitude
towards Dell Laptop
computer Sale promotion
Pearson Correlation
1 .255(**)
N 293 293
Sale promotion Pearson Correlation .255(**) 1
N 293 293
Table 23: Relationship between consumer attitude toward Dell laptop and promotion

In the statement 5, the authors found that there is relationship between consumer
perception and Dell laptop promotions. The significant was 0.000 less than

40
0.01correlation significant level which means positive relationship between Dells
promotion and consumer perception. There are low positive relationship which show
only 0.255. For this statement, consumer satisfies in Dell promotion but Dell should
launch some specific promotion for student to collect this customer group.

6.2 Marketing Inputs
6.2.1 Price
This study focused on young and students who age range 18-35 year old. In this target
group, they spend much time for study in university and do research. Some students
had part-time job which earned only little money, that while this target group didnt
have high income. Most of them had income per month less than 10000 SEK which
effected to budget for buying a laptop for personal used. Due to the low income, the
affordable price for student should not more than 8000 SEK. The authors found that
laptop price is around 6000 - 8000 SEK was popular for student that is laptop in
medium class which provides all basic equipment for home and office used.

The price of Dell laptop is affordable price for consumer. As the result, most of the
respondent felt neutral. The mean of consumer perception at 3.14 is accepted for Dell
laptop price in the market where has high competitors. Moreover, the mean (3.18) and
low of standard deviation (0.814) in the value of money shows that the respondents
thought in the same way towards Dell laptop. The positive in affordable and
competitive price create the strength to Dell brand and it means Dell laptop can
compete with other brands in Swedish laptop market.

It seems like according to Dell price is important in order to realize its sells. The
authors discovered that selling strategy involves getting into the price war with the
competitor. Since Dell tries to satisfy its student customers by lowering the price of
the laptop computers and at the same time aims at producing high quality laptop
computers, accordingly the authors think that Dell becomes a slave of the market and
eventually it still becomes costly to produce a high quality laptop computer and sell it
at a cheap price. In the long run Dell will not be able to lower the price unless another
marketing strategy is invented apart from basing on low price and high quality.
According to the finding Dell uses price as the tool to promote its business among
students that is in combination with the high quality laptop computers production.
This is a good strategy and Dell seems to understand the customer need which is
cheap laptop computers and of high quality. The authors think that the use of low
price and high quality is appealing to the student market. However, the authors
believe that Dell has to be more careful with this strategy because whether the laptop
computer is cheap or not and with high quality or not depends on the consumer in
relation to the competitor.

6.2.2 Product
The purpose of using laptop was study as well as communication; such as surf
internet, chatting. The majority thing which consumer looks before buying a laptop is
quality of product. The durable material is direct effect to consumer buying decision.
There are 6 main elements of product that every customer wants to know before
buying a laptop. There are CPU, Hard Drive, RAM, weight, monitor size, battery life
time. The requirement of customer will relate to the users purpose. If they want to
use just word processing, they do not need high performance laptop. Otherwise, if

41
they want to use it for playing game, they need more powerful laptop. Other elements
are important for some premium customers such as color, design.
Computer producer must to understand the customer demand and adapt their
advertisement to fulfill customer need.

From the result of questionnaire, the respondents have good feedback about warranty,
specification and design of Dell laptop. Three of them are majority influencer to
consumer buying decision especially to new customer who never has a laptop. The
warranty make consumer trust in Dell laptop that all of products have good quality
that while they provided 1 or 2 years warranty. In other hand, there is fluctuating in
trustworthy which have standard deviation (1.160). It means that Dell laptop will get
some problem with their brand in the student market in Sweden in the near future. If
some of respondents don not trust Dell laptop, it will effect to other students around
them who want to buy a new laptop. The words of mouth and reference have the most
influence for customer toward high technology product.

6.2.3 Place
In the high technology product, it has a lot of technique specific which none
experience customer do not understand all of them. So, the store or sales persons have
responsibility to provide important information and explain to customer. Moreover,
the distribution channel is place where customer and computer are meeting. From our
research, the authors found that customer frequencies buy laptop over retailer store
where a lot of laptop brands introduce their latest series. Moreover, the customer can
test, touch, look on the physical product, as well as get direct information from sales
person. They can compare a laptop to other laptop to find out the best one which
suitable for their purpose. Another popular distribution channel is internet. Customer
can visit computer producers website to find the new series and get specification of
laptop. It is convenience channel to producer and customer who do not want to sit in
their home and surf internet. Furthermore, online ordering is good alternative to buy a
product over internet. However, the lowest number of students who use telephone
ordering service. It will be the high cost for Dell Sweden to open this service to
customers.

The interview uncovered that Dell uses only two ways as the distribution channel and
that is internet and telephone order. This is ideal for cutting down the costs of having
a retail store. Therefore as far as costs are concerned the authors remark that this
method is ideal. However when the student consumers are involved thee whole
process becomes the contrary because not every student consumer would like to order
on the internet while there is a lot of retail stores selling laptop computers lively
where the consumer has an opportunity to experiment it.

Dells distribution channel is quite limited because it provides only internet and
telephone order. It is different with the demand of general consumer who wants to buy
a product from retailer shop. As we asked deeply to Dell, we found that place has
mean in the medium satisfy but there are high fluctuation in all questions. It means
that each respondent think every different comparing with other respondents. From
the result, the authors summarized that respondents want to see Dell laptop (physical)
in the retailer or Dell shop and it will good for customers if Dell opens more owned
shop.

42
6.2.4 Promotion
To be successful, the promotion element is very important. As Sweden has high
internet users, internet advertisement will be best channel to introduce products and
service. Moreover, it provides sharply information to people who interested as well as
person who want to buy a new laptop. From questionnaire internet is a major channel
that customer got information about laptop, followed by people around such as
family, friend is influence their buying decision. The public relationship campaign,
events help producer get closely with customers and make well-known brand.
Furthermore, sales promotion will be one of most important for attract new customer.
The authors found that respondents prefer to discount more than other promotion
technique. The student price may be good choice for producer to get in student sector.
It is followed by free offers such as free hand bag, optical mouse, extra RAM, battery
and etc. the promotion can increase the sales volume and sometimes it will be tools
for get in new market.

The use of student bodies such as student organization for promoting the laptop
computers to students by Dell is an easy and effective way of promoting its product.
Since all students get their Identity cards from the Student organization and card
comes with the discount when buying a laptop computer from Dell, then it is highly
likely that students will choose to buy through the student card in order to realize the
discount. However the authors remark that this might as well not be an effective way
to promote the product especially when it comes to those students who would like to
buy their laptop computer from the physical shop, the promotion strategy by Dell is
affected by the distribution strategy.

Dells advertisement is an urgent problem for Dell in Swedish market. The result from
respondents shows that they are not satisfied and lack of information about Dell
laptop. Most of promotion elements got less than 3.As general information, the
authors found that customer gets most information from internet but the result for
consumers who have experience about Dell laptop, and they didnt get Dell laptop
information from Dell website.

6.2.5 Consumer Attitude & Perception
Attitude has been a key concept in Psychology for more than a century and can be
defined as a person overall evaluation of concept. Consumers can have attitude
towards various psychological and social objects including products, brands .models,
and stores etc. Sweden is the country who is all system and databases are
computerized. Large numbers of Swedish customers have their own PC and laptops.
We analyzed that targeted student customer towards Dell laptops are quality
conscious. Their attitude towards laptops quietly depends upon place also. The
students have access to buy from their nearby stores or markets rather than to buy
from other city or places. Mostly targeted customers according to surveys want their
laptops repaired or technical support immediately and for that they do not want to
wait or travel so their main attitude is to buy quality laptops in nearby place. As Dell
has not such policy to sale their laptops by some vendors or franchisee therefore it is
one disadvantage for the company in regards of sale of their product. We also
analyzed from the findings that targeted customers influence towards Dell laptop is
also promotion for the students their attitude for buying that laptops if they also were
being served by any purchasing guarantee or some beneficial scheme.

43
7 Conclusion
The authors found that Dell try to understand the student consumers as well as adapt
company strategy to compete with competitors especially from Asian laptop brands.
The benefit for using competitive price increases the sale volume and attract new
customer. Moreover, Dell realized that the numbers of internet users are increasing
very fast not only in developed countries but also in developing countries. The
number of internet users especially students in Sweden is very high comparing with
other countries.

As well Dell decided to sells its products directly to customers by internet and internet
ordering; these channels are suitable for new generation such as young and students
who have good knowledge about computer and it is convenience for customers who
don not have time to buy computer from shop. Dell differentiates itself from other
brands through this strategy. Dell uses the direct selling strategy to cut down the cost
whereby the computer is send directly to the customer after the order from Dell.

Furthermore, Dells strategy of making a computer after it is ordered which Dell is
cost effective as far as prices are concerned. By doing so Dell decreases inventory
costs and Dell uses that saving cost to reduce the price of computers. This makes Dell
a strong brand which is the key for Dells success. Through reduction of prices Dell
iconic brand is popular around the world. Therefore student Customers believe in Dell
laptop which provides high quality product at cheap price. The overall student
consumer attitude shows that student consumer have good attitude towards Dell
laptop.

However, on the other hand, Dell Sweden misunderstands elements of place and
promotion in the marketing stimuli. That is a reason that Dell lost the market. Starting
with promotion, from this research, the authors found that the urgent problem is
promotion especially on advertisements. The students customers don not get enough
information about Dell laptop as well as they cannot remember it. For example the use
of student identity cards to be associated by Dells offers and discounts has proved
failure due to the fact that students have to visit the Student organization website in
order to access the offers but students do not have the hobby of doing that and if they
visit it they do that for special purpose and not caring less of Dells promotions. The
research has shown that many students dislike the flyers and letters of promotions to
their addresses. This came incidentally to the authors sight during the research by the
most students anti advertising campaign on their doors written Ej reklam meaning
no ads. This problem will be a major drawback for Dell in the students market in
Sweden.

Moreover, the distributing channel is another major problem. The authors found that
most of respondents prefer to buy a laptop from retailer. Most of the student
customers would like to see, touch and physically observe the laptop computers
before they buy it. On the contrary Dell sell products only from internet and telephone
order, the customer can not see products before its deliver to their home. It means that
many students customer do not appreciate the way of Dell selling product that affect
directly the buying decision of some student customers especially those who lack
experience about Dell laptop.

44
Besides, the result from questionnaire show that telephone ordering system is not
popular for use among student customers any more. It shows that only 2 respondents
used telephone to order Dell computer. To the best of the authors understanding this
means that Dell has a high cost on this service that makes it unaffordable to the
student consumers.

Finally, Dells attitude and marketing techniques towards student consumers of Laptop
Computers will not be changed as far as the research is concerned. These to the
authors are Lack of competitive ideas. A good competitor has to adjust its competition
so as to suit the customers. If Dell will stay intact with their marketing techniques e.g.
selling on the internet and telephone towards student consumers of Laptop computers
then they will lose part of the student market to other competitors who would sell their
laptop computers physically to Students which most of the students preference.

45
8 Recommendation
From the scientific research the authors wish to recommend that in order for Dell to
pick up from the market they lost to student consumers they might reconsider their
promotional methods. Since Dell is trying to cut down the costs then it is necessary to
deal with retailer stores and provide trial laptop computer to retailers shelf for
customers. This can be done so that the student customers, who are keen on physical
contact with the laptop computers can test, touch and see the physical computer in
stead of virtual computer in website. However if customers want to buy the laptop
computer they can as well order it through the internet. By putting sample laptop
computers Dell will still cut down the costs at the same time satisfying the two groups
of customers.

Moreover the retailer shop guide is recommended by the authors. This is the case for
those student customers who do not know how to order from the internet, in such a
case the retailer shop should have the ability to guide them on how the whole process
works. However, if by Any chance the customer wants to bypass the retailer after the
guide the retailer can include service fees

Furthermore the authors suggest the removal of telephone order service. The student
customers are the group of customers who mostly do not earn a lot of money as the
research showed. This fact ought not to be avoided by Dell rather it should be taken
into consideration. Since the pockets are not big enough Dell should reconsider not
charging students who will spend their time ordering Dell laptop computer or inquire
for the prices. Consequently Dell should consider student buyers of Laptop computers
as a future investment because students will be future decision makers in for example
buying products when begin working in the offices.

Another recommendation is that since Dell uses professional advertising agency, Dell
should make sure that the agency is monitored on the way the advertising fliers and
letters are sent. The agency should be able to understand the student customers in
Sweden. The use of professional advertisement agents can be unsuccessful to
students. This is due to the sending of flyers and letters in daily basis and sometimes
twice a day; this can be irritating to students. Flyers and letters should be sent
infrequently to make it interesting for students. Due to analysis result, the students get
most of information about laptop from internet. Dell should provide the necessary
information in its website and make it easy to understand, find and provide comparing
function to customer to be able to compare interested laptop with other models.
Moreover, Dell should buy banner spaces in famous websites to promote the new
models or promotions as well as spread it target market.

Nowadays, the wide knowledge of laptop computer and violent competitions is
necessary reasons for Dell should use company strength to make its products and
services differentiate and better than competitors. As Dell is using internet ordering
system to cut cost and reduce inventory, Dell has responsibility to provide extra
laptop features such that customer can customize laptop cover colors, removable
cover capacity, select keyboard languages .,etc. In reality, chipset, CPU and features
are quite similar compare with competitors. It is good for Dell to enhance laptop
design to achieve customer need such as design by famous designer, football player or
celebrities. It encourages student consumers to customize and select a laptop that most
suitable for them.

46
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49
Appendix
Questionnaire
This research is a part of a compulsory thesis for completion of Master Degree
in International Marketing at Mlardalen University. The questionnaire is developed
for a study purpose only. Therefore, please feel free to answer all the questions. Thank
you for your kind co-operation.
-------------------------------------------------------------------------------------------------------
INSTRUCTIONS: Read each statement and mark (X) at the best choice
Part I: Personal information of respondents

1. Gender: Male Female

2. Age:
Less than 18 year old 30 -35 year old
18 23 year old More than 35 year old
24 29 year old

3. Occupation:
Student Government Officer
Private Company employee Entrepreneur

4. Nationality: Swedish Others

5. Education:
Diploma, High School Masters Degree
Bachelors Degree Doctors Degree

6. Average Income per month:
Less than 10,000 SEK 20,001-30,000 SEK
10001 20,000 SEK More than 30,000 SEK
-------------------------------------------------------------------------------------------------------

Part II: General Consumer Attitude toward Laptop computer

7. Do you have laptop computer or do you have a plan to buy a laptop in the
future?
Yes No (STOP)

8. What is your favorite brand for laptop computer?
Dell Toshiba
HP Others
Acer

9. What is your main purpose for buying a laptop computer?
Study Purpose Entertainment Purpose (Game, Music)
Work Purpose Communication Purpose (Internet, VOIP)

50
10. How much would you pay for a laptop?
5001-6500 SEK 9501-11000 SEK
6501-8000 SEK More than 11001 SEK
8001-9500 SEK

11. What is the most important for decision making before buying a laptop
computer?
Cheap price, Student price Interesting Promotion
Easy to buy Well-known Brand
Product quality Good in customer services

12. If you want to buy a laptop computer, how would you buy the Laptop from?
(Can select more than one choice)
Retailer/ computer store Telephone order
Producers own sale shop Exhibition/ computer fair
Internet

13. How do you find out information about laptop? (Can select more than one
choice)
Television Internet
Magazines Brochure/Flyer
Radio People around you (Family, friend, etc)

14. What is the most important element of a laptop computer?
Color, Design Specification (CPU, Hard disk, RAM)
Weight Battery Life

15. What is your favorite sale promotion program?
Coupon/Gift Voucher Loan at Cheap interest rate
Discount Free Offer (Ram, Mouse, Bag)

16. Have you ever heard about Dell laptop?
Yes No (STOP)
-------------------------------------------------------------------------------------------------------
Part III: Consumer Attitude toward Dell laptop
1= Strongly Disagree, 2=Disagree, 3 = Neutral, 4 =Agree, 5 = Strongly Agree

No Statement
Strongly
Disagree
Agree
17 Dell laptop is trustworthy

18 Dell laptop is modern design

19 Dell laptop has light weight

20 Dell laptop offers good specifications(CPU, ram,
hard disk., etc)

21 Dell provide good product warranty

51
No Statement
Strongly
Disagree
Agree
22 Dell laptop has an affordable price

23 Dell laptop competitive price comparing with
other brands (similar specifications)

24 Dell laptop is worth the value of money

25 Dell should have own sale shop

26 It is easy to buy Dell laptop.

27 There are variety models of Dell available in
shops

28 Print ads Magazines, newspapers, Billboards
leads you interested in Dell laptop

29 TV ads lead your interest in Dell laptop

30 Internet Ads(Website) lead you interested in

31 You can remember advertisement of Dell laptop

32 You like sale promotion program of Dell laptop

33. What is your attitude towards Dell Laptop computer?
Very Bad
Bad
Neutral
Good
Very Good

-------------------------------------------------------------------------------------------------------

THANK YOU

52

Course Name: Master Thesis

Authors: Group 1529
Pichan Kuasirikul
Kamran Zaheer
Honoratus Kikalugaa

This is a Questionnaire1 for the compulsory Master thesis as a necessary requirement
for the fulfilment completion of the master of International marketing at Mlardalen
University.
The information given is guaranteed to be used for the purpose of this thesis only, so
please feel free to reply to all questions in details. Your cooperation is appreciated

Please reply to the following questions in details.

1. What is Dell marketing strategy for the Dell Laptop computer? What is the
strategy particularly to students?
Dell Sweden marketing strategy is aiming at selling Laptop computers cheaply
through telephone or internet shop, the strategy is grouped into two parts:
a. Sales strategy- Dell would like to satisfy its customers by selling in low prices
thus is achieved through cutting down prices by using the internet or telephone
order.
b. Distribution strategy: Dell aims at selling direct to consumers through a direct
telephone or internet shop order.
..

2. Is there any effect to the company image that can be resulted by the decrease
in prices on your Laptop computers?
No effect is occasioned by the decreasing the price of the laptop computers but
that is sometimes done for the purpose of competition.

3. What is Dell Company Major Target group of customers for the laptop
computer in Sweden?
The target group ranges from the companies, both big and small and medium,
global organizations and the public in general including students.

53
4. What are your (Dell Company) prospects for the Swedish market of laptop
computers?
(For the next 5 years for example)
Our prospects are high due to the increase use of Laptop computers which boosted
up the sales. Dell has a prospect of selling more due to its low price telephone and
internet shop order which reduces the costs. Dells progressive innovations on the
computer and utilities shine the prospects. Customer loyalty through satisfied
customers shows how positive the Prospects are.

5. What is your overview of the customer trend on the market of laptop
computers?
Such as, do you think customers prefer cheap laptop with more quality standards
in functions?
Dell attitude is low priced but high quality laptop computers. The customer trend
is the same.

54

Telephone interview with Dell, Sweden Marketing Manager

1. Does Dell Sweden have any plan to expand or encourage the Laptop
market to student in Sweden?
I am afraid to say that we are doing what we can so far by sending to
students flyers, letters and use the student organizations Website for
providing promotions for students buying our computers. We have
prices which are lower in the promotion to students.

2. We have conducted a research that shows that customers would like
to buy a laptop from retailer shop, is it possible for Dell Sweden to
open own shop or distribute the products to retailer stores?
Well, that is beyond our plan. We are trying to sell our computers
online and through telephone order as I said earlier on so as to cut
down the costs and eventually have a low price on our product.
Having a retail store will increase the expenses due to the inventory
costs; therefore I would say Dell does not any such plan now
although it is possible to open one.

3. What do you think is the main problem for Dell in the laptop market
to students in Sweden as far as your product, price, promotion and
your means of distributing the laptop computer is concerned?
I do not think we have any problem, our laptop computer are of top
quality, guaranteed, our prices are lower comparing with the quality,
we promote our product as much as we can and we have the easiest
way of sending our computers. Once an order is placed the computer
is made and sent, that is all.

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