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Specialization - Marketing
Members:
TABLE OF CONTENTS
Group 2 Page 1
Page No.
Acknowledgement...................................................................................................4
1. Abstract................................................................................................................5
2. Introduction..........................................................................................................6
3. Literature Review.................................................................................................7
4. Research Problem.................................................................................................9
5. Research Objectives.............................................................................................9
6. Scope of Study.....................................................................................................9
7. Research Methodology........................................................................................9
8.1 Coding.....................................................................................................11
8.4 Analysis...................................................................................................12
9. Research Findings...............................................................................................17
11. Conclusion.........................................................................................................17
12. Glossary….........................................................................................................18
13. Annexure...........................................................................................................19
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ACKNOWLEDGEMENT:
We the members of group 2 would like to thank Dr Sathya Priya, our Marketing
Research professor, for giving us this opportunity to carry out research work.
Her support and guidance helped us to make this project a success and bring out
valuable findings and conclusions.
Specialization - Marketing
Members:
Harpreet Singh
Nitin Malik
Rochak Khanna
Saurav Rawat
Somyata Krishna
Suchita Khanna
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1. ABSTRACT:
The one consumer group which is being successfully and consistently targeted by the laptop
providers is ‘Student Group’. With technology reaching the academic field at a fast pace, laptops
are intended to find a place in this market. The student community has increased the usage of
laptops and it is mutually benefiting.
As a student there are many factors that need to be considered before going for a final purchase
of a laptop. Some prefer the machine to technologically advanced with all the latest updates
while others prefer it cheap and simple. These preferences are equally important for
consideration from marketer’s point of view as it gives a clear insight as what the end consumer
wants and values and accordingly more emphasis can put on the features demanded by the
consumer.
Through this research we have made an effort to understand the prime benefits that a student as a
consumer seeks from purchasing a laptop. For the same purpose a sample of fifty respondents
was interviwed to know about the underlying benefits they seek from a laptop purchase. Degree
of agreement with variables such as price, availability, sales promotion etc. were analysed and
clubbed into factors which should considered primarily from a marketer’s point of view. The
elaborations on the findings have been provided in the following report.
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2. INTRODUCTION:
‘Laptop’, also known as 'notebook computers' has become widely popular and essential for every
business in the last few years in India. "Portability, rather than mobility has emerged as the
`number one' driver for the sustained growth in notebook PC shipments in India. Indian Laptop
market is now in sync with global market. The Laptop market is growing at a fast rate because of
change in work life of consumers. As the need for "anytime anywhere" access to information is
increasing, the sales of Laptops are also increasing. Given the choice of portability, flexibility
and ease of use and narrowing of price-performance gap that once existed between portables and
desktops, consumers are almost overwhelmingly inclined to buy notebook PCs. Other factors that
are responsible for the hike in sales figure are reduction in prices and affordability. Laptops are
now sold at approximately half the price at which they were sold two years ago. An increasing
number of computer operators are switching to laptops for easy working.
The laptop computer market in India grew by 84.8 per cent in the third quarter of 2007 against
the corresponding quarter last year, contributing significantly to the overall PC market growth of
25.1 per cent. More than five lakh notebook PCs were sold in the quarter, according study by
market analyst IDC India.
Notebook PC sale in home and `Small Office and Home Office' (SOHO) grew by 166 per cent
and made up 43 per cent of the total business in 2007-08. The next largest contributiors were
enterprise and education segments.
Thus the education segment is coming up as a lucarative market for the laptops which showing
an unprecedented year on year growth.
3. LITERATURE REVIEW:
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Sachin Mathew (2001), “LAPTOP – The Transformation”.
This research paper ensures that laptops are the future of the computing world. The time is
coming soon when desktops will no longer be in offices and used as home computers because the
tremendous benefits of laptops will become apparent to the general public and the prices will
drop enough for most people to purchase them. Laptops are already gaining in popularity as
employees continue to discover how much more work could be done with a portable computer.
Laptops are now being made better than ever. These machines generally come ready-made with
more memory and free space than your average desktop, and they usually have a faster Internet
connection with the same Internet provider. Some laptops have a reputation of breaking down
after a few years, but the well-made high-quality brands will run well for much longer and even
the lesser brands have about the same life-span as a desktop.
According to previous researches by “Indiana State Laptop Program”, students and faculty
indicated that there were many benefits associated with having laptop computers. The benefits
had to do with convenience, enhanced communication, and in several cases, the broadening and
deepening of learning or skill development. Most faculties believed that the personal laptop
computers enhanced students’ ability to learn the course material and work more collaboratively.
Most students agreed that faculty were using the laptops effectively to help students learn.
Although some frustrations were expressed with technical and practical problems, students and
faculty were able to work through most of these difficulties.
Following are the advantages of laptops derived from the previous conducted research
Productive: Laptops will allow students to become more efficient in their homework
preparation, access to electronic resources, and other research endeavors. This will
increase student productivity and lead to more active learning and better retention of
course materials.
Supported: Technical support for hardware and software issues, including loaner
systems, is available on-campus for program-purchased systems. With the entire campus
more technologically savvy, students have more places to turn to for support.
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Empowered: Mobile computing is available anytime, anywhere. The convenience and
efficiency with which students can conduct academic, administrative, and personal
activities is empowering.
Increased time spent on higher level modeling and analysis rather than tedious low-level
functions.
Integration of lecture and lab activities previously delegated to specific physical space, so
that learning activities are dictated by the educational objectives rather than physical
location.
Use of current, software and web-based information rather than outdated textbooks.
More efficient use of class time through use of electronic documents and anytime,
anywhere resources and information.
4. RESEARCH PROBLEM:
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World is getting globalize every day and so do the competition. Various companies are
competing with each other in different fields and one if the important felid compromises of the
digital equipment. Laptop is one the constituent of the digital world equipments. Numerous
companies are competing in the market to increase their laptop sales. In order to boost their sales,
companies are considering important factors that determine and drive the sales of
laptops/notebooks among student community.
5. RESEARCH OBJECTIVE:
Understand the underlying benefits students seek from a laptop purchase and evaluate which of
them should be considered primarily.
6. SCOPE OF STUDY:
1. It has good scope as marketers and firms can have a good knowledge about the underlying
benefits consumers seek from a laptop purchase and hence be more aggressive towards tapping
the growing student group market.
2. It can help new players get a better understanding of the consumer group before entering the
market.
3. Study can be carried out among consumer group other than student’s community.
7. RESEARCH METHODOLOGY:
7.1 RESEARCH APPROACH:
Quantitative approach i.e. use of statistical tools for quantifying the data and analyzing the data
pattern.
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7.3.1 PRIMARY DATA:
Questionnaire design
It took into account all the necessary aspects of the study variables
1. Price
4. Brand
5. Design
7. Sales promotions
8. Availability
The method is time consuming but it provides better results as it involves face to face to
interaction with the respondent which is missing in case of telephonic, mail and other methods of
interviewing.
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7.4 SAMPLE DESCRIPTION:
Sample size: 50
SAMPLING TYPE:
SAMPLING METHOD:
2. Convenience sampling method – as the sample consisted of student group from Alliance
itself, so the sample was easily available at hand.
8.1 CODING
Ratings of the respondents were coded as
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1 = Strongly Disagree
2 = Disagree
4 = Agree
5 = Strongly Agree
The master schedule for the coded data has been provided in annexure 2
Technique used: Factor analysis: A class of procedures primarily used for reduction and
summarization of data.
Null Hypothesis:
Alternative Hypothesis:
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8.4 ANALYSIS
Following table gives percentage of positive responses (agreement) with the different variables,
among the sample under consideration.
Table 1
Bartlet test of sphercity can be used to test the null hypotheses that the variables are
uncorrelated in the population in other words; the population correlation matrix is an identity
matrix. The test statistic for sphercity is based on a chi-square transformation of the determinant
of the correlation matrix. A large value of the test statistic will favor the rejection of the null
hypothesis. Another useful statistic is the Kaiser-Meyer-Olkin (KMO) measure of sampling
adequacy. This index compares the magnitude of the observed correlation coefficients to the
magnitudes of the partial correlation coefficients. Small values of the KMO statistic indicate that
the correlation between pairs of variables cannot be explained by other variables and that factor
analysis may not be appropriate. Table 2 and Table 3 substantiate the mentioned statistics.
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Table 2: Correlation Matrix
Correlation variable1 1.000 .108 .480 .257 .103 .178 .006 -.216
Now we can see from Table 2 that the population correlation matrix is not an
identity matrix and every variable is correlated with another variable.
Sig. .000
We can analyze from the Table 3 that the null hypothesis that the population correlation
matrix is an identity matrix is rejected by the Bartlet test of sphercity. The approximate chi-
square matrix is 72.217 with 28 degree freedom which is significant at .05 levels. The value
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of KMO statistic (.620) is also large (>0.5) thus the factor analysis may be considered as the
appropriate technique applied to the sample.
Table 4 provides information regarding which components explain the most variance in the
given and hence form the basis for factors formation and thus data reduction. Table is
provided on the next page.
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We determine the number of factors based on eigen values. In this approach, only factors
with eigen values greater than 1 are retained: the other factors are not included in the model.
An eigen value represents the amount of variance associated with the factor. Hence, only
factor with he variance greater than 1 are included. Now we can analyze from the Table3
that there are only three factors whose eigen values are greater than one. It can also be
interoperated that these three extracted factors account for approximately 64%of the total
variance among the sample.
An important output from factor analysis is the Factor Matrix. The factor matrix contains the
coefficients used to express the standardized variable in terms of the factors. These
coefficients, the factor loadings, represent the correlation between the factors and the
variables. A coefficient with the large absolute value indicates that the factor and the
variable are closely related. Table 4 provides the matrix that gives the number of factors with
the respective variables contained in each variable. Degree correlation of each variable with
each factor is given.
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Table 4: Rotated Component Matrix
Component
1 2 3
Now after analyzing the Table 4 we have designed the following table on the basis of
weights(greater than 0.6) of highly contributing variable in the respective factors and by this
way we club the variables in different factors in the following manner.
Factors Variables
Factor 1 V2, V4, V5, V6
Factor 2 V1, V3
Factor 3 V7, V8
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9. RESEARCH FINDINGS:
Factor 1 i.e. the set of variables post purchase service, brand, design and weight of the laptop
are perceived by the consumer in the similar manner. These variables can be labeled under
brand reputation and brand performance.
The above factor contributes to the majority of the variance in the sample and hence is an
important factor for consideration by the company.
If a consumer is price sensitive and gives more weight to price, he/she will not opt for laptop
with advanced technological features. These variables have been included in factor 2.
Students who are least bothered about the ease of availability (distribution) do not give much
importance to sales promotion either. These variables are included in factor 3.
Factor 3 shows significant variance and hence company can go for brand awareness and other
related activities at the cost of this factor.
11. CONCLUSION:
The research provided a good and clear insight regarding the purchase behavior of the student’s
community towards laptop. Overall it can be seen that brand performance plays a major role in
providing consumer with a value for money solution.
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This research just represents a tip of the iceberg and has the scope of further study. With the
growing laptop market such research and the related ones can prove to be a helpful tool for the
companies. Nokia, for instance is planning to enter the laptop market in India and it can go for a
similar research to better position its’ product in stiff competition with the other players.
GLOSSARY:
Some important terminologies used:
1. KMO Statistic – it is used to determine whether the sample is appropriate for factor
analysis.
2. Bartlet’s Test For Sphericity - it is used as a criterion for accepting or rejecting NULL
hypothesis.
3. Eigen Values – these values determine the candidates for factor/component formation.
4. Likert Scale – a rating scale used to determine the preference towards a statement based
on degree of agreement.
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ANNEXURE I
QUESTIONNAIRE
Dear sir/madam,
We are conducting a study that will make us better understand the underlying benefits students
seek from a purchase of laptop. We will value your co-operation in filling this questionnaire for
the same.
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not an important
criterion in purchase of
a laptop
Name:
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V1 V2 V3 V4 V5 V6 V7 V8
1 2 4 2 4 4 3 4 2
2 4 5 2 2 3 4 2 2
3 3 4 2 3 2 4 3 2
4 2 3 3 3 3 4 3 2
5 2 1 4 4 3 4 3 2
6 2 4 2 4 3 4 2 2
7 4 5 2 4 4 5 2 2
8 3 4 1 4 4 4 3 2
9 2 5 1 5 5 5 2 2
10 2 5 2 3 3 4 4 2
11 3 4 2 4 4 4 3 3
12 2 4 2 3 4 4 2 2
13 2 4 1 4 3 4 3 4
14 3 5 2 4 4 5 2 1
15 3 5 1 4 4 5 2 1
16 3 5 2 4 4 5 2 1
17 2 5 2 4 5 5 3 1
18 4 4 4 4 5 4 4 4
19 4 3 4 3 4 4 2 2
20 4 3 4 5 4 4 4 2
21 2 4 2 4 4 5 3 2
22 4 5 4 4 4 4 4 2
23 3 4 2 5 5 5 1 2
24 2 5 1 4 4 4 3 2
25 3 5 4 5 4 3 4 1
26 2 4 3 4 4 4 3 5
27 2 4 2 4 3 4 4 4
28 2 4 3 4 4 4 4 3
29 5 4 5 4 2 5 1 2
30 2 5 2 4 4 4 4 3
31 2 5 5 4 4 4 4 3
32 2 5 3 4 5 5 1 1
33 1 5 1 3 4 5 3 3
34 3 5 1 4 4 4 2 4
35 2 5 3 4 3 5 1 5
36 4 5 5 5 5 4 2 1
37 4 5 5 4 5 5 5 3
38 2 4 3 3 3 2 2 4
39 2 5 2 4 4 4 3 3
40 4 4 2 4 4 3 2 1
41 2 4 2 3 3 4 2 2
42 2 2 1 4 4 4 2 3
43 4 5 2 5 5 5 3 2
44 2 4 2 4 3 4 4 3
45 2 3 2 4 5 5 3 4
46 3 5 4 3 5 5 4 2
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47 5 2 4 3 4 2 3 Page 22
48 2 2 4 1 1 2 5 3
49 5 4 5 5 3 5 5 4
50 3 5 3 4 4 5 3 2
REFERENCES:
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1. In Indiana State Laptop Program. Retrieved 27th February 2008, from
http://www1.indstate.edu/cirt/laptop/benefits.html
2. Tustle Margarette, In Laptop computers – Find the perfect Fit! Retrieved 27th February 2008,
from http://ezinearticles.com/Laptop-Computers-Find-The-Perfect-Fit!&id=125911
3. In The Financial Express – Indian Laptop Market Grows At 85 %. Retrieved 03rd March 2008,
from http://www.financialexpress.com/news/Indian-laptop-market-grows-85/250897/
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