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A FINAL RESEARCH PROJECT On

Study of Consumer buying behaviour Towards Smart Phone

A report submitted in partial fulfilment of the requirements of PGDM (2010-12)

Under the guidance of PROF. PUNEET RAI


(PROFESSOR)

Submitted By
VIKRANT AWASTHI ROLL NO. 1421 PGDM 2010-12

TO WHOM SO EVER IT MAY CONCERN

This is to certify that Mr. Vikrant Awasthi student of full time PGDM course (2010-12) at Dr. Gaur Hari Singhania Institute of Management & Research with Marketing as major and Information Technology as minor has completed satisfactorily final research project of Study of Consumer buying Behaviour Towards Smart Phone under the guidance of the undersigned in partial fulfilment of PGDM-FULL TIME course.

Prof. Puneet Rai Associate Professor GHS-IMR

DECLARATION

I hereby declare that this Project Report entitled Study of Consumer buying Behaviour Towards Smart Phone in the partial fulfilment of the requirement of Post Graduate Diploma of Business Management (PGDM) of Dr. Gaur Hari Singhania Institute of Management & Research is based on primary & secondary data collected by me from various departments, books, magazines and websites under guidance of my faculty guide Prof. Puneet Rai. It is my own work to the best of my knowledge & contains no material written by any other person.

DATE: 18/01/2012

VIKRANT - AWASTHI 1421 GHS-IMR

ACKNOWLEDGEMENT
I would like to express my gratitude to all those who gave me the possibility to complete this thesis. I would like to thank my college authorities and I am particularly appreciative to Prof. Puneet Rai who gave his time to assist with my requests for information, as well as for his guidance and valuable assistance from the offset of this project. His insights and remarks were of great value. I want to thank all other trainees for all their help, support and valuable hints. Especially, I would like to give my special thanks to my parents, their love and blessing enabled me to complete this work.

VIKRANT-AWASTHI

Table of Content

Topic 1. Executive summary 2. Introduction o Industry overview 3. Research Objectives 4. Research Methodology 5. Analysis & Interpretation 6. Conclusion & Recommendation 7. Bibliography 8. Appendix

PREFACE
Final Research Project is a part of management studies which is very important for each and every management student. The purpose of the Project is to enhance the knowledge and skills of the student and generate scope for the implementation of his/her acquired skills and knowledge during his/her PGDM. It also helps to acclimatize the student with the organization and the industry in which this organization exists. The objective of the summer training is to see how an organization works and gain knowledge of the happenings in the business world. Management trainees are trained to manage the matters of the organization in a planed and systematic manner.

This training has helped us a lot in sharpening our knowledge and has also made us aware about the happenings of the business world. This learning experience has increased our competence which would help us in the management of corporate sector.

The main objective of this study was the Study of Consumer buying Behaviour towards smart phone.

EXECUTIVE SUMMARY

This project has been a great learning experience for me. At the same time it gave me enough scope to implement my analytical ability. The first part of the project gives the overview of smart phone brands. Here we talk about the various types of factors affecting smart phones purchase and also give an overview of consumer buying behaviour. All the topics have been covered in a very systematic way. The language has been kept simple so that even a layman could understand.

The Second part consists of research and their analysis, collected through a survey done on 75 people. The study was carried out in Kanpur in at various outlets and major markets of the city. The data collected have been well organized and presented. Hope the research findings and conclusions will be of use. The Third part consists of conclusion and recommendation which is actually drawn apart from the result of survey done on 75 peoples. The basic thing that i analyzed from data collected is that there is great variation in the perception of consumers towards smart phones.

Introduction
Apple
EY COMPETITORS

Strong competitor in the prosumer customer segment 15% of current smart phone market share Advantages: Brand awareness and variety of application downloads Disadvantages: Price point and limited to AT&T GSM network

Blackberry
Low cost OS with open development Advantages: Scalable and flexible functions on a variety of smart phones Disadvantages: Low adoption and low number of available apps (both are rapidly increasing). Blackberry and Apple are the two major smart phone manufacturers of the world, and both has a huge number of fan following and users. Though it is a matter of personal choice and preference, as to what to choose. In this study we are going to analyse customer preferences and characteristics in order to better define customer segments, determine which customers to focus marketing efforts on, and what features are most important to those customers. Globally, RIM holds 15% of the smart phone market share. Although this is a rather substantial portion of the available market, RIM faces threats from close smart phone competitors and is constantly rivalling to stay on top. Smart phone competitors consist of: High Tech Computer (HTC), Apple, Nokia, Googles Android, Samsung and Palm. Apples smart phone net sales for the fiscal year end September 2009 was $11.8 billion. In 2010, research shows that Apple smart phones seized 13.3% of the global market share as their 3GB iphone is growing in popularity selling for $199 with a service contract (Data monitor, 2009; Toronto Star, 2009). Additionally, the iPhone

provides a competitive advantage, as the device is able to run upwards of 85,000 applications providing higher utility for customers.

HTC:
HTC Corp, (TAIEX: 2498) produces powerful handsets that continually push the boundaries of innovation to provide true mobile freedom. Founded in 1997 by Cher Wang, Chairwoman, HT Cho, Director of the Board & Chairman of HTC Foundation, and Peter Chou, President and CEO, HTC made its name as the company behind many of the most popular operatorbranded devices on the market. It has established unique partnerships with key mobile brands, including the leading five operators in Europe, the top four in the US, and many fast-growing Asian operators. It has also brought products to market with industry leading OEM partners and, since June 2006, under its own HTC brand. HTC is one of the fastest-growing companies in the mobile sector and has achieved remarkable recognition over the past couple of years. Business Week ranked HTC as the second best performing technology company in Asia in 2007 as well as giving the company the number 3 spot in its Global listing in 2006. Since launching its own brand 18 months ago the company has introduced dozens of HTC-branded products around the world. Products & Innovation HTC is known for its innovation. It is constantly broadening the range of devices it offers introducing devices to support specific applications and new form factors that meet the increasingly diverse needs of its customers and partners. HTC's product portfolio offers easy-to-use solutions that embrace the full range of mobile multimedia resources, wireless anytime and Internet on the go.

First Microsoft Windows 5.0 Smartphone (2006) First Tri-band UMTS PDA First intuitive touch screen to allow finger tip navigation (June 2007)

In early 2006, HTC launched a powerful new device with a groundbreaking form factor: the HTC Advantage. The HTC Advantage is the worlds most powerful office, boasting a 5" screen and full detachable QWERTY keyboard. This was followed in early 2007 with the introduction of the HTC Shift.

Equipped with Windows Vista this device includes a brilliant 7-inch widescreen touch display and a 40 gigabyte hard drive. HTC launched the HTC Touch in June 2007 as the result of extensive R&D and the conviction that fingertip control would enable more intuitive navigation. The groundbreaking HTC Touch is equipped with TouchFLO so that consumers just sweep their finger across the screen to get access to the most commonly used content, contacts and features in a simple finger flick. HTC aims to continually develop smart new devices that empower users on the go, providing more freedom in the way they live their lives.

SAMSUNG:
From its inception as a small export business in Taegu, Korea, Samsung has grown to become one of the world's leading electronics companies, specializing in digital appliances and media, semiconductors, memory, and system integration. Today Samsung's innovative and top quality products and processes are world recognized. This timeline captures the major milestones in Samsung's history, showing how the company expanded its product lines and reach, grew its revenue and market share, and has followed its mission of making life better for consumers around the world. The digital age has brought revolutionary change and opportunity to global business, and Samsung has responded with advanced techno-logies, competitive products, and constant innovation. At Samsung, we see every challenge as an opportunity and believe we are perfectly positioned as one of the world's recognized leaders in the digital technology industry. Our commitment to being the world's best has won us the No.1 global market share for 13 of our products, including semiconductors, TFT-LCDs, monitors and CDMA mobile phones. Looking forward, we're making historic advances in research and development of our overall semiconductor line, including flash memory and non-memory, custom semiconductors, DRAM and SRAM, as well as producing best-in-class LCDs, mobile phones, digital appliances, and more.

OBJECTIVE

To study consumer motivation for buying a smart phone. To analyze the consumer preference for brands of smart phone. To determine whether there is a significant difference between preferences for features of smart phones on the basis of gender. To identify the most effective medium for advertisement of smart phone. Hypothesis Hypothesis-1:
Ho: There is no difference between preferences for features of smart phones on the basis of gender. H1: There is a difference between preferences for features of smart phones on the basis of gender.

Hypothesis-2:
Ho: There is no association between gender and consumer method of buying a Smart phone. H1: There is association between gender and consumer method of buying a Smart phone.

Hypothesis 3:
Ho: There is no association between consumer method of buying and future purchase options for buying smart phone. H1: There is an association between consumer method of buying and future purchase options for buying smart phone.

Research Methodology Research Design: It is the plan, structure of investigation conceived so as to obtain answer to research question. It is the specification of methods and procedures for acquiring the information needed.

It is concerned with: Overall operational pattern Framework of the project Stipulates what information is needed

The first step that undertakes in the report was the selection of research. The research design, which was adopted for the study was descriptive in nature.

The two types of research are as follows:

Exploratory research: It is to generate new ideas. Descriptive research: They are well structured. It can be complex, a high degree of scientific skill on the part of the demanding a high degree of scientific skill on the part of the researcher. It can be taken in certain circumstances. When the researcher is interested in knowing the characteristics of certain groups such as, gender, profession, a descriptive study may be necessary.

In this I did descriptive research also because I want to know the consumer buying behaviour and preferences towards smart phone.

Primary Data The descriptive nature of research necessitated collection of primary data from smart phone users through survey. Personal Interview method will be used and interview would be conducted through structure questionnaire. Secondary Data RIM Marketing Presentation. websites

RESEARCH INSTRUMENTS I prepared a structured questionnaire to collect the data and it consisted of Multiple-choice questions, direct questions and open-ended question.

SURVEY LIMITATIONS Time Constraint - Sampling was not a perfect representation, could have been larger. Survey Length - Questions, wouldve liked more to capture more critical data but there were concerns about the impact on participation.

Research Instruments

I prepared a structured questionnaire to collect the data and it consisted of Multiple-choice questions. The main function of the questionnaire was to know the consumer behavior towards smart phone.

Sample Plan:

A part of a population or a subset from a set of units which is provided by some process or other.

Sample Size:

The sample size considered was 75 for consumers.

Method of Sampling: Convenience sampling.

DATA INTERPRETATION AND ANALYSIS

1). Motivation Factor For Buying a Smart phone:


Statistics N Mean Valid Missing 75 0 1.8800 Valid Required for Work Features Status Symbol Reasonforpurchase Multitasking Total Frequency 27 36 6 6 75 Percent 36.0 48.0 8.0 8.0 100.0 Valid Percent 36.0 48.0 8.0 8.0 100.0 Reasonforpurchase Cumulative Percent 36.0 84.0 92.0 100.0

Reasonforpurchase

40

30

Frequency

20

10

0 Required for Work Features Status Symbol Multitasking

Reasonforpurchase

Interpretation:
48% of consumer said that the reason for purchase of a smart phone is its features followed by its utility for work (36%).

2).Most Preferred Brand:


Statistics Mostpreferredbrand N Valid Missing Mean Mostpreferredbrand Cumulative Percent 41.3 52.0 74.7 100.0

75 0 2.3200

Valid

Apple Blackberry HTC Samsung Total

Frequency 31 8 17 19 75

Percent 41.3 10.7 22.7 25.3 100.0

Valid Percent 41.3 10.7 22.7 25.3 100.0

Mostprefferedbrand

40

30

Frequency

20

10

0 Apple Blackberry HTC Samsung

Mostprefferedbrand

Interpretation:
Apple (41.3%) is the most preferred brand by consumers followed by Samsung (25.3%) and HTC (22.7%).

3). Features Preferred while purchase of a smart phone: 1).Touch Screen


Statistics Touch Screen N Valid Missing Mean Touch Screen Cumulative Percent 5.3 26.7 42.7 80.0 100.0

75 0 3.4533

Frequency Valid Least Preferred Somewhat Preferred Neutral Preferred Most Preferred Total 4 16 12 28 15 75

Percent 5.3 21.3 16.0 37.3 20.0 100.0

Valid Percent 5.3 21.3 16.0 37.3 20.0 100.0

TouchScreen

30

20

Frequency
10 0 Least Preferred Somewhat Preferred Neutral Preferred Most Preferred

TouchScreen

Interpretation:
37.3 % of consumer said that touch screen is preferred as a feature while 21.3% of consumer prefers it somewhat.

2).Wi Fi
Statistics Wifi N Mean

Valid Missing

75 0 3.5867 Wifi Cumulative Percent 22.7 44.0 74.7 100.0

Valid

Somewhat Preferred Neutral Preferred Most Preferred Total

Frequency 17 16 23 19 75

Percent 22.7 21.3 30.7 25.3 100.0

Valid Percent 22.7 21.3 30.7 25.3 100.0

Wifi

25

20

Frequency

15

10

0 Somewhat Preferred Neutral Preferred Most Preferred

Wifi

Interpretation:
30.7% of consumer preferred Wifi and 25.3% of consumer said it is most preferred for them.

3).Apps:
Statistics Apps N Mean

Valid Missing

75 0 3.5067 Apps Cumulative Percent 25.3 26.7 45.3 52.0 100.0

Valid

Least Preferred Somewhat Preferred Neutral Preferred Most Preferred Total

Frequency 19 1 14 5 36 75

Percent 25.3 1.3 18.7 6.7 48.0 100.0

Valid Percent 25.3 1.3 18.7 6.7 48.0 100.0

Apps

40

30

Frequency

20

10

0 Least Preferred Somewhat Preferred Neutral Preferred Most Preferred

Apps

Interpretation:
48% of consumers said that Apps is the most preferred feature for them.

4).G.P.S:
Statistics
GPS N Mean Valid Missing 75 0 1.6133

GPS
Frequency Valid Least Preferred Somewhat Preferred neutral Preferred Total 43 22 6 4 75 Percent 57.3 29.3 8.0 5.3 100.0 Valid Percent 57.3 29.3 8.0 5.3 100.0 Cumulative Percent 57.3 86.7 94.7 100.0

GPS

50

40

Frequency

30

20

10

0 Least Preferred Somewhat Preferred neutral Preferred

GPS

Interpretation:
57.3% of consumer said that they prefer the GPS technology the least in smart phone and 29.3% of consumer prefer it somewhat.

4). Information Source: (a).Where did you look for the information before purchasing a smart phone?
Statistics Info Source N Valid Missing Mean

75 0 2.6133 Info Source Cumulative Percent 14.7 50.7 73.3 100.0

Valid

In store Promo Display Internet retailer/ review/ technology websites Television/ Newspaper Word of mouth Total

Frequency 11 27 17 20 75

Percent 14.7 36.0 22.7 26.7 100.0

Valid Percent 14.7 36.0 22.7 26.7 100.0

InfoSource

30

20

Frequency
10 0 In store Promo Display Internet retailer/ review/ technology websites Television/ Newspaper Word of mouth

InfoSource

Interpretation: Mostly consumer collects the information from internet


websites (36%) and then they trust word of mouth (27%).

(b). Did you take advice from someone else?


Statistics Advice N Mean

Valid Missing

75 0 2.1467 Advice Cumulative Percent 29.3 66.7 89.3 100.0

Valid

Someone Tech Savvy Someone Recently Bought the same Someone already used Can't Say Total

Frequency 22 28 17 8 75

Percent 29.3 37.3 22.7 10.7 100.0

Valid Percent 29.3 37.3 22.7 10.7 100.0

Advice

30

20

Frequency
10 0 Someone Tech Savvy Someone Recently Bought the same Someone already used Can't Say

Advice

Interpretation:
37.3 % of consumer said they had consulted with someone recently bought the same while 29.3 % of consumer consulted with someone tech savvy.

(5). Future Purchase and Mode of Purchase of Smart phone


(a).Statistics
MethodOfBuying N Valid Missing Mean 75 0 1.6800

MethodOfBuying
Frequency Valid Search options with in a particular brand Go for different brand Total 24 51 75 Percent 32.0 68.0 100.0 Valid Percent 32.0 68.0 100.0 Cumulative Percent 32.0 100.0

MethodOfBuying

60

50

40

Frequency

30

20

10

0 Search options with in a particular brand Go for different brand

MethodOfBuying

Interpretation: For future purchase 68% of consumers said they will go for
different brands and 32% search options within a particular brand.

b). Future Purchase


Statistics Future Purchase N Valid Missing Mean Future Purchase Cumulative Percent 38.7 52.0 73.3 100.0

75 0 2.3600

Valid

Apple Blackberry HTC Samsung Total

Frequency 29 10 16 20 75

Percent 38.7 13.3 21.3 26.7 100.0

Valid Percent 38.7 13.3 21.3 26.7 100.0

FuturePurchase

30

20

Frequency
10 0 Apple Blackberry HTC Samsung

FuturePurchase

Interpretation:
For purchase of smart phone in future consumer are more interested in brands like Apple followed by HTC and Samsung.

6).Most Effective Advertising Media


Statistics
Effective advertising N Valid Missing Mean Effective advertising Cumulative Percent 21.3 30.7 40.0 100.0

75 0 3.0800

Frequency Valid Television Newspaper Magazine Internet Websites Total 16 7 7 45 75

Percent 21.3 9.3 9.3 60.0 100.0

Valid Percent 21.3 9.3 9.3 60.0 100.0

Effectiveadvertising

50

40

Frequency

30

20

10

0 Television Newspaper Magazine Internet Websites

Effectiveadvertising

Interpretation:
The most effective medium for advertisement as per consumers view is internet websites (60%) followed by T.V (21%).

Hypothesis1
Ho: There is no association between gender and consumer method of buying a Smart phone. H1: There is association between gender and consumer method of buying a Smart phone.

gender * MethodOfBuying Cross tabulation


Count

gender Total

Male Female

MethodOfBuying Search options Go for with in a different particular brand brand 19 41 5 24 10 51

Total Search options with in a particular brand 60 15 75

Chi-Square Tests
Value .015(b) .000 .015 Df 1 1 1 Asymp. Sig. (2-sided) .901 1.000 .902 1.000 .015 75 1 .902 .564 Exact Sig. (2-sided) Exact Sig. (1-sided)

Pearson Chi-Square Continuity Correction(a) Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association N of Valid Cases

a Computed only for a 2x2 table b 1 cells (25.0%) have expected count less than 5. The minimum expected count is 4.80.

Interpretation:
Here sig. P- Value is more than .05 so null hypothesis is accepted, so there is no dependency between gender and brand loyalty for Smart phone.

Hypothesis 2
Ho: There is no association between consumer method of buying and future purchase options for buying smart phone. H1: There is an association between consumer method of buying and future purchase options for buying smart phone.
MethodOfBuying * Future Purchase Cross tabulation Count Future Purchase Apple MethodOfBuying Search options with in a particular brand Go for different brand Total Chi-Square Tests Asymp. Sig. (2-sided) 3 3 1 .176 .177 .288 9 20 29 Blackberry 2 8 10 HTC 3 13 16 Samsung 10 10 20 Total Apple 24 51 75

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 4.943(a) 4.930 1.130 75

df

a 1 cells (12.5%) have expected count less than 5. The minimum expected count is 3.20.

Interpretation:
Here sig. P- Value is more than .05 so null hypothesis is accepted, so there is no association between consumer method of buying and future purchase options for buying smart phone.

Hypothesis 3
Ho: There is no difference between preferences for features of smart phones on the basis of gender. H1: There is a difference between preferences for features of smart phones on the basis of gender.
Group Statistics
gender Male Female Wifi Apps GPS Male Female Male Female Male Female N 60 15 60 15 60 15 60 15 Mean 3.5333 3.1333 3.6167 3.4667 3.5000 3.5333 1.5833 1.7333 Std. Deviation 1.21386 1.06010 1.10610 1.12546 1.62084 1.92230 .76561 1.16292 Std. Error Mean .15671 .27372 .14280 .29059 .20925 .49634 .09884 .30026

Touch Screen

Independent Samples Test

Levene's Test for Equality of Variances

t-test for Equality of Means 95% Confidence Interval of the Difference Lower

F Lower TouchScree n Equal variances assumed Equal variances not assumed Wifi Equal variances assumed Equal variances not assumed Apps Equal variances assumed Equal variances not

Sig. Upper

t Lower

df Upper

Sig. (2tailed) Lower

Mean Difference Upper

Std. Error Difference Upper

Lower

.239

.626

1.168

73

.246

.40000

.34234

-.28229

1.08229

1.268

24.068

.217

.40000

.31540

-.25086

1.05086

.000

.994

.468

73

.641

.15000

.32038

-.48852

.78852

.463

21.283

.648

.15000

.32378

-.52280

.82280

2.526

.116

-.069

73

.945

-.03333

.48580

-1.00152

.93486

-.062

19.274

.951

-.03333

.53864

-1.15964

1.09297

assumed GPS Equal variances assumed Equal variances not assumed

6.838

.011

-.607

73

.546

-.15000

.24717

-.64261

.34261

-.475

17.151

.641

-.15000

.31611

-.81650

.51650

Interpretation:
We have checked preference for all features and one by one sig. P- Value of all variable is more than .05 so null hypothesis is accepted so there is no difference between preferences for features of smart phones on the basis of gender.

CONCLUSION:

Most preferred brand in smart phone market is Apple followed by Samsung and HTC. The main reason for smart phone purchase is its features. Internet retailers / review / technology websites is an important source of information to consumer. Mostly consumer wants to opt for different smart phone brands instead of looking for same brand. So consumer is not brand loyal in case of smart phone. The most effective medium of advertisement of smart phone is internet websites. There is no difference between preferences for features of smart phones on the basis of gender. There is no association between gender and brand loyalty for Smart phone.

RECOMMENDATION:

1. Smart phone companies should focus more on advertisements on internet websites. 2. As consumer wants more and more features so smart phone manufacturers should increase the number of features. 3. As the consumer prefers word of mouth or consulting someone tech savvy, so smart phone brands must maintain their good will and increase services.

Bibliography
Books Referred

Marketing Management Marketing Research Business Statistic

by Phillip Kotler by Naresh Malhotra by Ken Black

Website Referred:

1. 2. 3. 4. 5. 6. 7.

www.scribd.com www.blackberry.com www.htc.com www.apple.com www.samsung.com www.wikipedia.com www.google.com

Appendix

Name-______________________ Mobile-_____________________

Q1. Demographics: Gender-_______ Age-____ Educational Level-_________ Profession-________________ Q2. What one reason makes you purchase a smart phone? 1).Required for Work 2).Features. 3).Status symbol. 4).Multi Tasking. Q3.Which brand of smart phone you prefer the most? 1). Apple. 2). Blackberry 3). HTC 4). Samsung Q4.Please tick as per your preference for feature you were looking while buying a smart phone? (1- Least Preferred & 5- Most Preferred) Feature Least Preferred Somewhat Preferred Neutral Preferred Most Preferred

Touch Screen Wi-Fi Apps GPS

Q5. (a).Where did you look for the information before purchasing a smart phone? 1).In Store promo Display. 2).Internet retailers/ reviews / technology websites. 3).Television / Newspaper. 4). Word of mouth (b). Did u take advice from someone else? 1). someone having latest technological update. 2). someone recently bought the same. 3). Someone already used. Q6. Tick the appropriate option: (a).Which method of buying will you use for future purchase? 1). Search options with in a particular brand. 2).Go for different brand. (b). If in case you will buy a smart phone in future you will go for which brand? 1). Apple. 2). Blackberry 3). HTC 4).Samsung 5).Cant say now. Q7). Which type of advertising do you feel is most effective for smart phones? 1).Television. 2).Newspaper. 3).Magazine. 4).Internet websites.