Beruflich Dokumente
Kultur Dokumente
On
School of Management
Session 2014-2015
1
DECLARATION
UTKARSH VINAYAK
2
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 Ms. Stutu Gupta who gave her time to assist with my requests for
information, as well as for his guidance and valuable assistance from the offset of this
project. Her 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
3
Table of Content
Topic
1. Executive summary
2. Introduction
o Industry overview
3. Research Objectives
4. Research Methodology
7. Bibliography
8. Appendix
4
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 IMBA. It also helps to
acclimatize the student with the organization and the industry in which this
organization exists. The objective of the research 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.
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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.
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INTRODUCTION
ONLINE SHOPPING:
Online shopping is the process whereby consumers directly buy goods, services etc.
from a seller interactively in real-time without an intermediary service over the
internet.
Online shopping is the process of buying goods and services from merchants who sell
on the Internet. Since the emergence of the World Wide Web, merchants have sought
to sell their products to people who surf the Internet. Shoppers can visit web stores
from the comfort of their homes and shop as they sit in front of the computer.
Consumers buy a variety of items from online stores. In fact, people can purchase just
about anything from companies that provide their products online. Books, clothing,
household appliances, toys, hardware, software, and health insurance are just some of
the hundreds of products consumers can buy from an online store.
Many people choose to conduct shopping online because of the convenience. For
example, when a person shops at a brick-and-mortar store, she has to drive to the
store, find a parking place, and walk throughout the store until she locates the
products she needs. After finding the items she wants to purchase, she may often need
to stand in long lines at the cash register.
Despite the convenience of online shopping, not everyone chooses to purchase items
and services online. Some people like the idea of physically going to a store and
experiencing the shopping process. They like to touch the merchandise, try on
clothing, and be around other people. Online shopping doesn't permit shoppers to
touch products or have any social interaction. It also doesn't allow them to take the
merchandise home the same day they buy it.
Online shopping allows you to browse through endless possibilities, and even offers
merchandise that's unavailable in stores. If you're searching for a niche product that
may not be distributed locally, you're sure to find what you're looking for on the
internet. What's even more useful is the ability to compare items, similar or not,
online. You can search through multiple stores at the same time, comparing material
quality, sizes and pricing simultaneously.
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Shopping via the internet eliminates the need to sift through a store's products with
potential buys like pants, shirts, belts and shoes all slung over one arm. Online
shopping also eliminates the catchy, yet irritating music, as well as the hundreds, if
not thousands, of other like-minded individuals who seem to have decided to shop on
the same day.
Say 'goodbye' to the days when you stood in line waiting, and waiting, and waiting
some more for a store clerk to finally check out your items. Online shopping
transactions occur instantly-saving you time to get your other errands done!
Additionally, unlike a store, online shopping has friendly customer service
representatives available 24 hours a day, 7 days a week to assist you with locating,
purchasing and shipping your merchandise.
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iii. PERSONAL FACTORS: A buyer decision is also influenced by his or
personal characteristics, notably the buyers age, lifestyle, occupation,
economic circumstances etc.
PSYCHOLOGICAL FACTORS: a person buying choice is also influenced by four
major psychological factors such as motivation, perception, learning belief and
attitudes.
(B) BUYING DECISION PROCESS
It includes buying roles, types of buying and steps in buying process.
I. BUYING ROLE
The buying role could be classified into four parts. These are initiator, influencer,
decider and buyer.
NEED RECOGNITION
The buying process starts with the buyers recognition of a problem of need. The
buyer senses a difference between his actual state and desired state.
INFORMATION SEARCH
There are different sources from where a consumer can gather information like
personal sources commercial sources, experimental sources.
EVALUATION OF ALTERNATIVES
After gathering information about different products the customer will be in a fuss as
to choose which product among the mainly alternatives consumer usually evaluate the
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alternatives on traditional basis, on the basis of utility function etc. from the many
alternative consumers at last choose the best one for him.
PURCHASE DECISION
A consumer who decides to execute purchase intention will be making up to five
purchase decisions.
advertisement. A dissatisfied customer may take some action against it. They may
try to reduce the dissonance by abandoning returning the product.
Understanding consumer needs and buying process is the foundation of any company.
By understanding how buyers go through problem recognition, information search
evaluation of alternatives, the purchase decision and post purchase behavior marketers
can pick up many clues as to how to meet buyers need.
SMART PHONES
Apple
KEY 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
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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 operator-branded 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.
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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.
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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.
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OBJECTIVE OF STUDY
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.
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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.
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
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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
Sample Plan:
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DATA INTERPRETATION AND
ANALYSIS
1). Motivation Factor For Buying a Smart phone:
Reason for purchase
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%).
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2).Most Preferred Brand:
Statistics
Most preferred brand
N Valid 75
Missin
0
g
Mean 2.3200
Most preferred brand
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Apple 31 41.3 41.3 41.3
Blackber
8 10.7 10.7 52.0
ry
HTC 17 22.7 22.7 74.7
Samsung 19 25.3 25.3 100.0
Total 75 100.0 100.0
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%).
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3). Features Preferred while purchase of a smart phone:
1).Touch Screen
Statistics
Touch Screen
N Valid 75
Missin
0
g
Mean 3.4533
Touch Screen
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Least Preferred 4 5.3 5.3 5.3
Somewhat
16 21.3 21.3 26.7
Preferred
Neutral 12 16.0 16.0 42.7
Preferred 28 37.3 37.3 80.0
Most Preferred 15 20.0 20.0 100.0
Total 75 100.0 100.0
TouchScreen
30
20
Frequency
10
0
Least Preferred Somewhat Neutral Preferred Most Preferred
Preferred
TouchScreen
Interpretation:
37.3 % of consumer said that touch screen is preferred as a feature while 21.3% of
consumer prefers it somewhat.
19
2).Wi Fi
Statistics
Wifi
N Valid 75
Missin
0
g
Mean 3.5867
Wifi
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.
20
3).Apps:
Statistics
Apps
N Valid 75
Missin
0
g
Mean 3.5067
Apps
Apps
40
30
Frequency
20
10
0
Least Preferred Somewhat Neutral Preferred Most Preferred
Preferred
Apps
Interpretation:
48% of consumers said that Apps is the most preferred feature for them.
21
4).G.P.S:
Statistics
GPS
N Valid 75
Missin
0
g
Mean 1.6133
GPS
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.
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4). Information Source:
(a).Where did you look for the information before purchasing a smart phone?
Statistics
Info Source
N Valid 75
Missin
0
g
Mean 2.6133
Info Source
InfoSource
30
20
Frequency
10
0
In store Promo Display Internet retailer/ review/ Television/ Newspaper Word of mouth
technology websites
InfoSource
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(b). Did you take advice from someone else?
Statistics
Advice
N Valid 75
Missin
0
g
Mean 2.1467
Advice
Advice
30
20
Frequency
10
0
Someone Tech Savvy Someone Recently Someone already used Can't Say
Bought the same
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.
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(5). Future Purchase and Mode of Purchase of Smart phone
(a).Statistics
Method Of Buying
N Valid 75
Missin
0
g
Mean 1.6800
Method Of Buying
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Search options
with in a 24 32.0 32.0 32.0
particular brand
Go for different
51 68.0 68.0 100.0
brand
Total 75 100.0 100.0
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.
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b). Future Purchase
Statistics
Future Purchase
N Valid 75
Missin
0
g
Mean 2.3600
Future Purchase
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Apple 29 38.7 38.7 38.7
Blackber
10 13.3 13.3 52.0
ry
HTC 16 21.3 21.3 73.3
Samsung 20 26.7 26.7 100.0
Total 75 100.0 100.0
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.
26
6).Most Effective Advertising Media
Statistics
Effective advertising
N Valid 75
Missin
0
g
Mean 3.0800
Effective advertising
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Television 16 21.3 21.3 21.3
Newspaper 7 9.3 9.3 30.7
Magazine 7 9.3 9.3 40.0
Internet
45 60.0 60.0 100.0
Websites
Total 75 100.0 100.0
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%).
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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 * Method Of Buying Cross tabulation
Count
28
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.
Method Of Buying * Future Purchase Cross tabulation
Count
Future Purchase Total
Blackber
Apple ry HTC Samsung Apple
MethodOfBuy Search options
ing with in a 9 2 3 10 24
particular brand
Go for different
20 8 13 10 51
brand
Total 29 10 16 20 75
Chi-Square Tests
Asymp.
Sig. (2-
Value df sided)
Pearson Chi-
4.943(a) 3 .176
Square
Likelihood Ratio 4.930 3 .177
Linear-by-Linear
1.130 1 .288
Association
N of Valid Cases 75
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.
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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
Std.
Std. Error
gender N Mean Deviation Mean
Touch Male 60 3.5333 1.21386 .15671
Screen Female 15 3.1333 1.06010 .27372
Wifi Male 60 3.6167 1.10610 .14280
Female 15 3.4667 1.12546 .29059
Apps Male 60 3.5000 1.62084 .20925
Female 15 3.5333 1.92230 .49634
GPS Male 60 1.5833 .76561 .09884
Female 15 1.7333 1.16292 .30026
Independent Samples Test
Levene's Test
for Equality of
Variances t-test for Equality of Means
Std. 95%
Mean Error Confidence
Sig. (2- Differe Differe Interval of the
F Sig. t df tailed) nce nce Difference
Lower Upper Lower Upper Lower Upper Lower Upper Lower
TouchSc Equal
- 1.0822
reen variances .239 .626 1.168 73 .246 .40000 .34234
.28229 9
assumed
Equal
- 1.0508
variances 1.268 24.068 .217 .40000 .31540
.25086 6
not
30
assumed
Wifi Equal
-
variances .000 .994 .468 73 .641 .15000 .32038 .78852
.48852
assumed
Equal
variances -
.463 21.283 .648 .15000 .32378 .82280
not .52280
assumed
Apps Equal -
-
variances 2.526 .116 -.069 73 .945 .48580 1.0015 .93486
.03333
assumed 2
Equal
-
variances - 1.0929
-.062 19.274 .951 .53864 1.1596
not .03333 7
4
assumed
GPS Equal
- -
variances 6.838 .011 -.607 73 .546 .24717 .34261
.15000 .64261
assumed
Equal
variances - -
-.475 17.151 .641 .31611 .51650
not .15000 .81650
assumed
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.
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CONCLUSION:
32
RECOMMENDATION:
33
Bibliography
Books Referred
Website Referred:
1. www.scribd.com
2. www.blackberry.com
3. www.htc.com
4. www.apple.com
5. www.samsung.com
6. www.wikipedia.com
7. www.google.com
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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.
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Q5. (a).Where did you look for the information before purchasing a smart phone?
(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.
36