Survey on Consumer

Buying Behavior of
 2 Comparative Analysis of Laptop Industry

Table of Contents
About the Survey.............................................................................................................................2

Business Statistics Assignment I

Industry Profile................................................................................................................................3
Major Findings and Analysis...........................................................................................................4
Data Summary.................................................................................................................................6
Brand preference..........................................................................................................................6
Budget..........................................................................................................................................7
Preferred screen size....................................................................................................................8
Purpose of buying Laptop............................................................................................................9
Submitted to: Submitted by:
Original Operating System..........................................................................................................9
Dr. SumeetKaur Aditya Negi (191064)
After Sales Service....................................................................................................................10
Ankit Jethani (191073)
Optical Drive.............................................................................................................................11
Ankita Sehjpal (191076)
Promotional offer.......................................................................................................................11
Anshul Kaul (191077)
Khem Singh (191090)
Measure of Location..................................................................................................................12
Prateek Jain (191104)
Mean, Median & Mode..........................................................................................................12
Mean......................................................................................................................................12
Median...................................................................................................................................13
Mode......................................................................................................................................13
Measure of Variability...............................................................................................................14
Variance.................................................................................................................................14
Standard Deviation................................................................................................................14
Coefficient of Variation.........................................................................................................14
Probability of events..................................................................................................................15
Hypothesis.................................................................................................................................17
State the hypothesis...............................................................................................................17
Formulate an analysis plan....................................................................................................17

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3 Comparative Analysis of Laptop Industry

Analyze sample data..............................................................................................................18

Interpret results......................................................................................................................18
Annexure....................................................................................................................................20
Annexure

About the Survey

Consumer Buying Behavior of Laptopis a survey to gather feedback about User’s buying
behavior of laptop and their various preferences and suggestions. The purpose of the survey is to
gather as much information as possible and then to apply various Business Statistics tools to
summarize and analyze the collected data to make out further inferences and trends prevailing.

There were over 77 respondents to the survey. We would like to thank them for their
participation.

As part of the survey, respondents were supposed to state their preferences and opinions on
issues ranging from which Brand they prefer to what is their budget for buying a laptop to what
all they look for in a laptop, etc. The survey was basically weaved around the various parameters
that a consumer considers while buying a laptop and what all factors influences the purchase,
like price, brand, configuration, purpose etc. The demographic variables collected include: age
&gender.

The Questionnaire was administered online, hosted on FOREIAN.COM and apart from
publishing it on the website the survey was promoted through social media websites like twitter
and Facebook.

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4 Comparative Analysis of Laptop Industry

Industry Profile

Laptops were originally considered to be "a small niche market" and were thought suitable
mostly for "specialized field applications" such as "the military, the Internal Revenue Service,
accountants and sales representatives". But today, there are already more laptops than desktops
in businesses, and laptops are becoming obligatory for student use and more popular for general
use. The laptop sales are growing at much faster rate than projected. India's personal computer
market is undergoing a major transition. However, laptop computers cannot completely wipe out
desktop computers, because both are designed to meet different needs or different consumer
segments.

Major Players:
The major players in the laptop category are:
• Hewlett Packard (HP)
• Apple
• Dell Computers
• Sony
Growth Drivers:
• Indian Laptop market in now in sync with global market. It was in 2005 that sales of
laptops surpassed the sales of desktop computers for the first time in India.

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5 Comparative Analysis of Laptop Industry

• 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.
• 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. Laptops prices are now almost at par with the desktop computer
prices.
• The third most important factor is duty free import of Laptops as a personal baggage that
has helped a lot in increasing the penetration level of the product among the consumer
population. Awareness about laptops has also increased over the years.

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6 Comparative Analysis of Laptop Industry

Major Findings and Analysis

• In case of Brand preference, Dell is the leader with 27 respondents opting for it, followed by
Apple with 27 votes, and HP and Sony are tied for third with 16 each. As the survey was
filled mostly by students and working professionals it can be said that Dell covers a majority
portion of the segment of students and working professionals.
• The preferences of people opting for a budget range of 30000-40000 almost half of all the
response.
• More than 50% of all the respondents preferred to choose thin & light i.e. 13``-14`` screen
sized laptop. The fact that majority of the sample wish to buy a laptop for work and study
makes it obvious that they preferred and thin and light laptop but a very low portion of the
sample selected ultra-light laptops. So customer wants the laptop to be thin and light but do
not want to compromise on the functionality. Dell should invest on its R&D to develop
smaller and lighter laptops but having the same configuration as the bigger laptops.
• When asked about the reason to buy a laptop, majority of the replies were related to either
work or study, followed by portability and animation & gaming.
• Most the consumers opt for the promotional offers offered by the companies only if they
don’t cost them anything extra.
• In case of optical drives, consumers are very indifferent, as most of the respondents said that
they would go for any optical drive. Thus Dell should give customize option to its customer
in optical drive. This would reduce the financial risk of purchasing its laptops.
• The most important aspect that was found was that of after sales service. 69% of the
respondents said that they consider after sales service as very important aspect before
deciding upon the brand to be preferred.
• 68% of the consumers opt for original OS while buying the laptops.
• The mean rating on “please rate various brands of laptop on the basis of looks and
stylishness” on a scale ranging from 0= bad to 5 = excellent, Apple got the highest mean
rating witha rating of 4.337 followed by Sony 3.480, Dell 3.272 and HP 3.246.
• The median rating on “please rate various brands of laptop on the basis of looks and
stylishness”was highest for Apple but there is uncertainty over the 3rd position in between
Dell and HP with both having a median rating of 3, thus mean is preferred over here as there
is no such extreme low or large values.
• The mode rating on “please rate various brands of laptop on the basis of looks and
stylishness” was again rating Apple as the most preferred brand in case of looks and style.
• The sample variance comes out to be 5.48427,and the sample standard deviation is 2.3418
years. Thus we can say here that, in general each value of age varies from the mean value by
a difference of 2.3418 years.
• The coefficient of variation is 9.864 %. This means that sample standard deviation is 9.864 %
of the value of sample mean.

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7 Comparative Analysis of Laptop Industry

• The probability of a female to choose Apple is the highest and Apple has got the highest
rating in terms of looks and style. So we can say that for female customer style and looks of
the laptop is the top priority. So Dell should try and make its laptops more stylish or could
launch a new line of laptops for women.
• The probability of a male to choose Dell is the highest. Good after sales service could be a
reason for them choosing Dell as 69% of the total sample thinks that after sales service is an
important factor in making buying decision. Dell should try to find new ways to increase
customer satisfaction.

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8 Comparative Analysis of Laptop Industry

Data Summary
Brand preference
Brand preference is the measure of brand loyalty that a consumer will opt for. In our survey
following data was collected and summarized accordingly.

Frequen
Brand
cy
Apple 18
Dell 27
HP 16
Sony 16
Total 77
Table 1: Frequency distribution

This frequency distribution provides a summary of how the Laptop preferences are distributed
across the four brands. Viewing the frequency distribution, we see that Dell is the leader with 27
respondents opting for it, followed by Apple with 27 likes, and HP and Sony are tied for third
with 16 each. The relative frequency and percent frequency can be worked out.

Relative Percent
Brand
Frequency Frequency
Apple 0.23 23
Dell 0.35 35
HP 0.21 21
Sony 0.21 21
Total 1 100
Table 2: Relative and Percent Frequency Distribution

The Relative and Percent Frequency data can be depicted graphically by using bar graph or pie
chart. This graphical device for depicting qualitative data summarized in a frequency, relative
and percent frequency distribution are utilized for better understanding of the collected data.

Pie chart of Brand Preference

From the above summarized data various analysis could be made out like Dell is the most
preferred Brand among the customers with 35% share of mind. We can also note that together
Dell and Apple, with 35% + 23% = 58%, occupy almost 3/5th of the total preferred brand.

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9 Comparative Analysis of Laptop Industry

Budget
This segment summarizes the budget preference that all the respondents have opted for. The data
is then compiled into frequency distribution table, given below:

Budget
frequency
Range
<20000 3
20000-30000 7
30000-40000 40
40000-50000 22
>50000 13
Table 3: Budget Frequency

The above data is then graphically summarized to provide a better view of the findings i.e. the
preference of people opting for a budget range of 30000-40000 almost half of all the response

Preferred screen size

More than 50% of all the respondents preferred to choose thin & light i.e. 13``-14`` screen sized
laptop, as it is easy to handle and is lighter in weight, thus making it more convenient.

Preferred screen size Frequency

Ultraportable; 12" screen or less 5
Thin and Light; 13" - 14" 42
Mainstream; 15" - 16" 29
Desktop Replacement; 17"+ 2
Table 4: Screen Size Preference

Preferred screen size

Purpose of buying Laptop

When asked about the reason to buy a laptop, majority of the replies were related to either work
or study, followed by portability and animation & gaming. This gives an idea that animation and
gaming laptop are still less preferred and thus more work needs to be done in order to increase its
demand.

Purpose of Buying Laptop Frequency

portable 29

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10 Comparative Analysis of Laptop Industry

work 46
Animation & gaming 20
study 46
Table 5: Purpose

As can be seen from the figure, work and study together comprises of 46 responses. Here,
multiple choices were counted, hence no. of response are more.

Purpose of buying Laptop

Original Operating System

On the given criteria of preferring original Operating System for laptops, more than 65% of the
respondents preferred original OS while very few preferred duplicate ones.

Original OS Frequency
Yes 52
No 25
Table 6: Operating OS

Operating OS

After Sales Service

When viewed in Indian scenario, the users prefer their commodities being of rough use. So, we
asked people for importance of after sales service in case of laptops and we found out that about
69% of the respondents felt that the after sales service is an important criteria for selecting a
brand. So, for a brand to promote themselves in the Indian market it is essential to provide

After Sales Service Frequency

Yes 53
Maybe 20
No 4

excellent after sales service to the consumers.

Table 7: After sales service

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11 Comparative Analysis of Laptop Industry

Optical Drive
Through the responses collected for the preferred optical drive, it was found that most of the
users don’t really bother about specifications of the optical drive. Although, rest majority of the
users prefer Blu-Ray, maybe because of the technology advancement and the quality offered by
the Blu-Ray drives.

Optical Drive Frequency

DVD 15
Blu-Ray 20
HD-DVD 15
Any of the above 27
Table 8: optical drive

Promotional offer
In case of promotional offers offered by various brands, most of the consumers opt for them only
if they don’t have to pay any extra cost for the same. And also, the number of users opting for no
offers is much lesser than the ones preferring offers even at some cost.

Promotional Offer Frequency

Yes, if it doesn't cost me anything extra 53
Yes, absolutely 20
No 4
Table 8: optical drive

Measure of Location
Mean, Median & Mode
The respondents were asked to rate the laptops on the basis of their looks and stylishness, on a
scale of 0 (poor) to 5 (excellent). The response was then collected and further analysis was done
using mean, median & mode. The findings are summarized below.

Ratings Apple Dell HP Sony

1(poor) 0 2 1 9
2(average) 4 13 13 11
3(good) 8 28 34 7
4(very good) 23 30 24 32
5(excellent) 42 4 5 17
Table 9: Ratings

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12 Comparative Analysis of Laptop Industry

Mean

Ratings Apple Dell HP Sony

1 0 0 2 2 1 1 9 9
2 4 8 13 26 13 26 11 22
3 8 24 28 84 34 102 8 24
4 23 92 30 120 24 96 32 128
5 42 210 4 20 5 25 17 85
Sum 77 334 77 252 77 250 77 268

Mean 4.337662 3.272727 3.246753 3.480519

Table 10: Mean Values

When the no. of response were multiplied by the values i.e. 1 – 5 and finally summed up, we got
the sum total of the values of responses. This was then divided by the no. of response i.e. 77, thus
giving us the mean value for different brands of laptops. The inference can be sought out that,
the mean rating for Apple is highest with a rating of 4.337 followed by Sony 3.480, Dell 3.272
and HP 3.246

Median
As we are considering 77 responses, therefore for an odd number of observations the median is
the middle value. Thus the values are:

Apple Dell HP Sony

Median 5 3 3 4

Table 11: Median Values

Contrary to the mean ratings, the value of median is preferred in some cases as it is not
influenced by outliers i.e. extremely small and large values. But here as the range is only from 1
to 5, thus mean ratings are more accurate in this case and gives a better idea of the ratings. Here
also the median rating was highest for Apple but there is uncertainty over the 3 rd position in
between Dell and HP.

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13 Comparative Analysis of Laptop Industry

Mode
This is the value that occurs with greatest frequency. It provides the information about the
interest.

Apple Dell HP Sony

Mode 5(42) 4(30) 3(34) 4(32)

Table 12: Mode Values

In this case, the mode for the rating of 5 (excellent) occurs mostly in the case of Apple. Thus any
customer going out for looks and stylishness will choose Apple as its preferred laptop followed
by Sony, Dell and HP.

Measure of Variability

From the entire sample data Age was taken into account to measure the variability. The sample
data included age ranging from 19 to 32. This data was then calculated for different
mathematical tools and following summarized values were obtained:

No. of
Sum of Age Mean ∑ (Xi - X`)2
Responses
1828 77 23.74025974 416.81
Table 12: Sample Variance (Annexure)

Variance
Here the data being analyzed are for a sample, thus sample variance is taken into account.It
describes how far values lie from the mean. We have taken sample variance of Age and
following results were obtained :

S2 = ∑ (Squared deviation about the mean) / n-1

S2 = 416.81/76 = 5.48427 (years)2

Standard Deviation
It is the positive square root of the variance. It is the measure in the same unit as the original data
and thus is more easily compared to the mean and other statistics that are measured in the same
unit as the original data.the standard deviation statistic is a number that marks a distance on the
measurement scale. The sample variance was 5.48427, thus the sample standard deviation is

S = √S2

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14 Comparative Analysis of Laptop Industry

S = √5.48427 = 2.3418 (years)

We can say here that, in general each value of age varies from the mean value by a difference of
2.3418 years. In very general terms it is the average difference between each score and the mean
average.

Coefficient of Variation
It gives us the descriptive statistics that indicates how large the standard deviation is relative to
the mean. From the above calculated data we got the values of standard deviation and mean,
which can be then further used to calculate coefficient of variation.

(Standard Deviation / Mean) * 100

2.3418/23.7402 * 100 = 9.864 %

This means that sample standard deviation is 9.864 % of the value of sample mean.

Probability of events
Probability is the numerical measure of the likelihood that an event will occur. Thus,
probabilities can be used as measures of the degree of uncertainty associated with the known
events. If probabilities are available, we can determine the likelihood of each event occurring.
For a manager it is very important to know how many people will buy or have the company’s
product. This is essential to know what the customer thinks about the product or the brand. The
brand may be in the heart of the customer or in his/her mind and knowing that helps the manager
to estimate the market share of the brand/product.

Brand Male Female Grand Total

apple 9 9 18
Dell 23 4 27
HP 9 7 16
Sony 12 4 16
Grand Total 53 24 77

Table 13
Brand Male Female Person
apple 0.17 0.38 0.23
Dell 0.43 0.17 0.35
HP 0.17 0.29 0.21
Sony 0.23 0.17 0.21

Table 14

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15 Comparative Analysis of Laptop Industry

We can see from the above table that the probability for a male to choose Dell is the highest
(0.43) and the probability of a female to select apple is highest (0.38). Also the probability of a
person to select Dell is highest among all the other brands (0.35).

Specification Male Female Grand Total

>4 GB, 500 GB 7 1 8

3 or 4 GB, 320 or 500 13 3 16

<3 GB, 250 3 0 3

Grand total 23 4 27

Table 15

Dell Specification Probability

>4 GB, 500 GB 0.10

3 or 4 GB, 320 or 500 0.21

<3 GB, 250 0.04

Table 16
The probability of selecting 3 or 4 GB, 320 or 500 specification of Dell is the highest (0.21).

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16 Comparative Analysis of Laptop Industry

Hypothesis

Hypothesis is a concept that is not yet verified but that if true would explain certain facts or
phenomena. As the data that we are concerned about in this section deals about the rating of
various brands on a scale of 1(bad) to 5(excellent), thus we cannot use the population mean.

We have to conduct a hypothesis test about a population proportion. This approach consists of
four steps:

(1) State the hypothesis

(2) Formulate an analysis plan

(3) Analyze sample data

(4) Interpret results.

State the hypothesis

Every hypothesis test requires the analyst to state a null hypothesis (H0) and an alternative
hypothesis (Ha). The hypotheses are stated in such a way that they are mutually exclusive. That
is, if one is true, the other must be false; and vice versa.

Here, our null hypothesis is that proportion of consumer purchasing Dell laptops does not prefer
looks and stylishness as a factor before buying laptops.

For this, we conducted a survey and asked people to rate various laptop brands on a scale of 1 to
5. We found out that from a sample (n) of 77, 34 people were satisfied by the looks and style
factor of Dell laptop. Thus, our sample proportion (P) comes out to be:

P= 34/77 = 0.441

And from the secondary data, we found out that the population proportion (P0) is the market
share of Dell laptop in India that is 27 %. Thus, our population proportion is:

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17 Comparative Analysis of Laptop Industry

P0= 0.27

Therefore, the hypothesis statement can be written as

H0: p<= 0.27 and H1: p > 0.27

Formulate an analysis plan

The analysis plan describes how to use sample data to accept or reject the null hypothesis. It
should specify the following elements.
• Significance level: Often, researchers choose significance levels equal to 0.01, 0.05, or
0.10; but any value between 0 and 1 can be used. We have assumed the significance level
to be 0.05.

ά = 0.05

• Test method: we are using Z-test method to determine whether the hypothesized
population proportion differs significantly from the observed sample proportion.
Analyze sample data
To analyze a given sample data, we have to find out the test statistic and the P value associated
with it.

Test statistic: The test statistic is a z-score (z) defined by the following equation.

z = (P – P0) / √P0(1-P0) / n
WhereP0 is the hypothesized value of population proportion in the null hypothesis, P is the
sample proportion and n is the sample size.

From the stated value of P0, P and n,

i.e.P0= 0.27, P = 0.441 and n = 77, the value of z comes out to be:

z = 3.0379

Using the table of areas for the standard normal distribution, we find that the area between the
mean and z = 3.03 is 0.4988

Thus the p – value for the test is

0.500 – 0.4988 = 0.0012

p – Value = 0.0012

Interpret results
The final decision to accept or reject null hypothesis can be made by using any of the two
methods:

1. p – value approach

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18 Comparative Analysis of Laptop Industry

2. Critical value approach

We have taken p – value approach to come to the results. This involves comparing the p – Value
to the significance level (ά). If the p – value is less than the significance level than the null
hypothesis (H0) is rejected and alternate hypothesis is accepted.

Rejection Rule: Reject H0 if p – value <= ά

Since, here the p – value which is 0.0012 is lesser as compared to the significance level of 0.05

i.e. 0.0012 < 0.05

Thus this gives us sufficient statistical evidence to reject H0at the 0.05 level of significance and
alternate hypothesis Ha is accepted. Thus the test provides support to the conclusion that
proportions of the consumers that buy Dell laptops surely prefer looks and stylishness as a major
factor that influences their buying behavior.

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19 Comparative Analysis of Laptop Industry

Annexure
1. Computation of the Sample Variance for the Data

Deviation about
Sample Mean Squared deviation about
the mean
Age( Xi )
(Xi - ) the mean ( Xi - )2
21 23.74025974 -2.74025974 7.509023443
26 23.74025974 2.25974026 5.106426043
28 23.74025974 4.25974026 18.14538708
29 23.74025974 5.25974026 27.6648676
24 23.74025974 0.25974026 0.067465003
25 23.74025974 1.25974026 1.586945523
24 23.74025974 0.25974026 0.067465003
26 23.74025974 2.25974026 5.106426043
27 23.74025974 3.25974026 10.62590656
23 23.74025974 -0.74025974 0.547984483
29 23.74025974 5.25974026 27.6648676
24 23.74025974 0.25974026 0.067465003
19 23.74025974 -4.74025974 22.4700624
24 23.74025974 0.25974026 0.067465003
24 23.74025974 0.25974026 0.067465003
28 23.74025974 4.25974026 18.14538708
25 23.74025974 1.25974026 1.586945523
26 23.74025974 2.25974026 5.106426043
24 23.74025974 0.25974026 0.067465003
22 23.74025974 -1.74025974 3.028503963
22 23.74025974 -1.74025974 3.028503963
23 23.74025974 -0.74025974 0.547984483
24 23.74025974 0.25974026 0.067465003
21 23.74025974 -2.74025974 7.509023443
22 23.74025974 -1.74025974 3.028503963
22 23.74025974 -1.74025974 3.028503963
25 23.74025974 1.25974026 1.586945523
24 23.74025974 0.25974026 0.067465003
32 23.74025974 8.25974026 68.22330916
22 23.74025974 -1.74025974 3.028503963
26 23.74025974 2.25974026 5.106426043
22 23.74025974 -1.74025974 3.028503963
26 23.74025974 2.25974026 5.106426043
21 23.74025974 -2.74025974 7.509023443
25 23.74025974 1.25974026 1.586945523
23 23.74025974 -0.74025974 0.547984483

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20 Comparative Analysis of Laptop Industry

22 23.74025974 -1.74025974 3.028503963

21 23.74025974 -2.74025974 7.509023443
28 23.74025974 4.25974026 18.14538708
24 23.74025974 0.25974026 0.067465003
22 23.74025974 -1.74025974 3.028503963
24 23.74025974 0.25974026 0.067465003
23 23.74025974 -0.74025974 0.547984483
27 23.74025974 3.25974026 10.62590656
22 23.74025974 -1.74025974 3.028503963
25 23.74025974 1.25974026 1.586945523
25 23.74025974 1.25974026 1.586945523
22 23.74025974 -1.74025974 3.028503963
22 23.74025974 -1.74025974 3.028503963
21 23.74025974 -2.74025974 7.509023443
25 23.74025974 1.25974026 1.586945523
22 23.74025974 -1.74025974 3.028503963
24 23.74025974 0.25974026 0.067465003
25 23.74025974 1.25974026 1.586945523
22 23.74025974 -1.74025974 3.028503963
22 23.74025974 -1.74025974 3.028503963
26 23.74025974 2.25974026 5.106426043
22 23.74025974 -1.74025974 3.028503963
23 23.74025974 -0.74025974 0.547984483
22 23.74025974 -1.74025974 3.028503963
20 23.74025974 -3.74025974 13.98954292
26 23.74025974 2.25974026 5.106426043
21 23.74025974 -2.74025974 7.509023443
22 23.74025974 -1.74025974 3.028503963
22 23.74025974 -1.74025974 3.028503963
25 23.74025974 1.25974026 1.586945523
23 23.74025974 -0.74025974 0.547984483
22 23.74025974 -1.74025974 3.028503963
25 23.74025974 1.25974026 1.586945523
22 23.74025974 -1.74025974 3.028503963
25 23.74025974 1.25974026 1.586945523
24 23.74025974 0.25974026 0.067465003
25 23.74025974 1.25974026 1.586945523
22 23.74025974 -1.74025974 3.028503963
22 23.74025974 -1.74025974 3.028503963
21 23.74025974 -2.74025974 7.509023443
22 23.74025974 -1.74025974 3.028503963

∑(Xi - )= ∑(Xi - )
0.00 = 416.81

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