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Mobile Phones - Consumer Buying Behavior

Objective of Study

We all know there is dynamic environment all the way, everything changes continuously. Globalization has created a lot of competition. There are so many companies i.e. domestic as well as multinational. Every company has its own strategy and own rules to do their job. In this way every company is unique from the other company. So some companies go higher and become the market leader; others lag behind.

Customer preferences also changes with time. Now customer is aware about the products and services of mobile companies. Customer sees all the aspects before purchasing anything i.e. cost, quantity etc. and then come to result whether he is going to buy that product or not. The objective of this research paper is as follows:

* To know the consumer buying behavior of mobile phones

* To know which brand is most preferred brand in the market.

* To understand the consumer philosophies when choosing technological products.

INTRODUCTION

Living in a world dominates by technology, we use a range of electronics devices and gadgetry everyday that is supposed to make our life easier, enjoyable, simple and more satisfying. Our generations have mobile phones to stay in touch with loved ones; portable media players keep them stress-free while game consoles entertain them.

One of the fastest growing sectors of our time, technology industry -companies that design, manufacture and distributes electronic devices and services- is unique do to its high investment in research, development and marketing. Due to this, it is also a highly evolving industry. Global leaders in the sector are Apple, Sony, Microsoft, Nokia, Samsung and LG.

In yesteryears, customer had little choice in the market as there were only a handful of players. Traditionally, new features are the primary selling in this sector. This has changed drastically in the last five years. As the industry matured, industry leaders started losing customers to new and upcoming companies, which then prompted the marketers to focus on new selling points like user-friendliness to attract or retain customers. This paradigm shift is the basis of my research.

Research Methodology

Type of research

There are two types of methods:

1. Primary Method.

2. Secondary Method.

1. Primary Method:

The data which we collect from survey & questioners and then make analysis is known as primary method. It is well defined and a simple way to make a research as well as difficult task. Data collected in this way is highly acceptable and correct because each data is collected one by one and there is no chance of any error. Mostly all the project reports make by primary method, because it is more reliable. In my research study the Questionnaire method is used to know the buying behavior of consumers towards mobile phones.

2. Secondary Method:

The data which we collect from earlier reports, books, magazines etc which is there before and you only have to arrange data and made a report. It is very easy method because in this we only have to analyze data and arrange according to our requirement. But it is not so much reliable because it is collected from the past information not present and now days everything changes dynamically.

Questionnaire Design:

All questions related to term paper which is used for the accomplishment of term paper, must prepared before the starting of project. And accordingly I prepared that questions which helps me to know the exactness of market and consumer behavior.

I tagged my questioner along with the term paper in the annexure.

Data Collection

I use Primary Method for my research because it is more reliable and we get exact information. In primary method I do survey and making a questioner. While I am doing work on my term paper I learn a lot about business, consumer behavior, mobile purchasing behavior and different aspects related to it.

Scaling Techniques

The techniques which we use in our survey are known as scaling technique. Different scaling techniques used by me for the completion of my project. There are two types of scaling techniques. They are as:-

* Comparative Technique.

* Non-comparative Technique.

Comparative Technique:

The technique in which we differentiate the different brands according to the rank wise preference relate to their sale wise preference and consumer behavior.

Non-comparative Technique:

Other techniques i.e. continuous and itemized these are use accordingly to the related problem. The questions which are not easy to understand make by non-comparative technique in a way which easily understood by the addressee.

Uses of Scaling techniques

By using scaling technique we get a confined data in which the probability of error or mistake is very less and we get healthy information. It also helps the sender to give correct information because when different options given to him it easily sort out those and give the correct information. If this technique is not used then there are some points which lags behind because they are not comes in mind at that time and may be replacing by other one.

It is mostly for the help of sender to give exact information and moreover the exactness of project or related research.

Sampling Techniques

This technique corresponds to the selection of sample space from where I do my survey i.e. the selection. From the project it is clarified that I must do my survey from the shops only where mobile handsets are sold, because it's only from their where I'll get full information. Moreover they are the one who directly attach to the customers directly. There are two types of sampling techniques. They are as under:-

* Random Sampling

* Non-random Sampling

1. Random Sampling

The data which we collect randomly i.e. what so ever meet you, you ask him about them and carry one with your survey. It is successful only when there is a survey on an open issue.

2. Non-random Sampling

In this method we decide in the starting that from where we should collect our required information. For that purpose I select the retailers. They are the one who directly attached to the customers and easy way for the collection of my information.

Sample Size: 40

In my term paper there is a 15 to 20 age group is 55%, 21 to 25 age group is 40% and 26 to 30 age group is 5%.

Age of respondent

Frequency

Percent

Valid Percent

Cumulative Percent

15 to 20

22

55.0

55.0

55.0

21 to 25

16

40.0

40.0

95.0

26 to 30

2

5.0

5.0

100.0

Total

40

100.0

100.0

Which brand mobile do you have?

In this question there is a 65% of people those who have Nokia phone, 7.5% of people have Motorola phone, 7.5% of people have Sony Ericsson mobile, 15% of people have Samsung phones, and 5% have LG phones.

Statistics

brand mobile do you have?

N

Valid

40

Missing

0

Mean

1.88

Which brand mobile do you have?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Nokia

26

65.0

65.0

65.0

Motorola

3

7.5

7.5

72.5

Sony ericsson

3

7.5

7.5

80.0

Samsung

6

15.0

15.0

95.0

LG

2

5.0

5.0

100.0

Total

40

100.0

100.0


Sum of Squares

Df

Mean Square

F

Sig.

Between Groups

78.257

4

19.564

3.707

.013

Within Groups

184.718

35

5.278

Total

262.975

39

Which brand mobile do you have?

N

Subset for alpha = .05

1

1

Nokia

26

18.1538

Motorola

3

18.6667

Samsung

6

20.5000

Sony ericsson

3

21.6667

Lg

2

22.5000

Sig.

.188

Means for groups in homogeneous subsets are displayed.

a. Uses Harmonic Mean Sample Size = 3.645.

b. The group sizes are unequal. The harmonic mean of the group sizes is used. Type I error levels are not guaranteed.

What are your criteria to choose a brand for you?

In this question I got to know that 5% of respondent goes for money saving, 75% of people look quality in their brand when they goes to choose brand, 2.5% of people goes on consumer demand, 15% of people look brand name and 2.5% people goes for good after sale service.

Statistics

criteria to choose brand?

N

Valid

40

Missing

0

Mean

2.35

Criteria to choose brand?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Profitability

2

5.0

5.0

5.0

Quality

30

75.0

75.0

80.0

customer demand

1

2.5

2.5

82.5

brand name

6

15.0

15.0

97.5

good after sale service

1

2.5

2.5

100.0

Total

40

100.0

100.0

ANOVA

Sum of Squares

Df

Mean Square

F

Sig.

Between Groups

48.275

4

12.069

1.967

.121

Within Groups

214.700

35

6.134

Total

262.975

39

What are the basic features required you?

what the customer want in his handset there is 37.5% of people those who want mp3 in their mobile, 22.5% people want Fm Radio in their phone, 30% of people who want camera in their mobile and 10% of people who want Bluetooth in their phone.

Statistics

feature required by you?

N

Valid

40

Missing

0

Mean

2.35

Feature required by you?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

fm radio

9

22.5

22.5

22.5

Camera

12

30.0

30.0

52.5

mp3

15

37.5

37.5

90.0

blue tooth

4

10.0

10.0

100.0

Total

40

100.0

100.0

ANOVA

Sum of Squares

Df

Mean Square

F

Sig.

Between Groups

37.975

3

12.658

2.025

.128

Within Groups

225.000

36

6.250

Total

262.975

39

feature required by you?

N

Subset for alpha = .05

1

1

fm radio

9

17.6667

Camera

12

18.5000

mp3

15

20.0000

blue tooth

4

20.0000

Sig.

.347

Means for groups in homogeneous subsets are displayed.

a Uses Harmonic Mean Sample Size = 7.826.

b The group sizes are unequal. The harmonic mean of the group sizes is used. Type I error levels are not guaranteed.

What cost does you pay for basic and standard features mobile handsets?

In this finding I got to know that there are 52% people those who pay Rs. 4000 to 7000 for handsets and 32% people would like to purchase handset between the range of Rs. 7000 to 12000.

Statistics

cost pay for basic handsets?

N

Valid

40

Missing

0

Mean

2.18

Cost pay for basic handsets?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

2000 to 4000

6

15.0

15.0

15.0

4000 to 7000

21

52.5

52.5

67.5

7000 to 12000

13

32.5

32.5

100.0

Total

40

100.0

100.0

ANOVA

Sum of Squares

Df

Mean Square

F

Sig.

Between Groups

52.667

2

26.334

4.633

.016

Within Groups

210.308

37

5.684

Total

262.975

39

cost pay for basic handsets?

N

Subset for alpha = .05

1

2

1

2000 to 4000

6

16.3333

4000 to 7000

21

19.3333

7000 to 12000

13

19.7692

Sig.

1.000

.918

Means for groups in homogeneous subsets are displayed.

a. Uses Harmonic Mean Sample Size = 10.302.

b. The group sizes are unequal. The harmonic mean of the group sizes is used. Type I error levels are not guaranteed.

Does special offers plays any role in the selling of mobile handsets?

77.5% of people say that special offers play a main role in selling of handsets and 22.5% of people say it doesn't play any role.

Statistics

Offer plays any role in selling mobile?

N

Valid

40

Missing

0

Mean

1.23

Offer play any role in selling mobile?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Yes

31

77.5

77.5

77.5

No

9

22.5

22.5

100.0

Total

40

100.0

100.0


Sum of Squares

Df

Mean Square

F

Sig.

Between Groups

16.645

1

16.645

2.568

.117

Within Groups

246.330

38

6.482

Total

262.975

39

What the shopkeeper do to sell their product?

There is 22.5% of people say that shopkeeper should go for advertisement, 40% of people says offers should be given, 20% of people says that gifts can increase the sale of shopkeepers and 17.5% of people want discount.

Statistics

Shopkeeper to sell their product?

N

Valid

40

Missing

0

Mean

2.33

shop keeper to sell their product?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Advertising

9

22.5

22.5

22.5

Offers

16

40.0

40.0

62.5

Gifts

8

20.0

20.0

82.5

Discount

7

17.5

17.5

100.0

Total

40

100.0

100.0


Sum of Squares

Df

Mean Square

F

Sig.

Between Groups

20.726

3

6.909

1.027

.392

Within Groups

242.249

36

6.729

Total

262.975

39

shop keeper to sell their product?

N

Subset for alpha = .05

1

1

Advertising

9

18.5556

Gifts

8

18.6250

Offers

16

18.8125

Discount

7

20.5714

Sig.

.445

Means for groups in homogeneous subsets are displayed.

a Uses Harmonic Mean Sample Size = 9.061.

b The group sizes are unequal. The harmonic mean of the group sizes is used. Type I error levels are not guaranteed.

Do you stick to any particular brand every time?

65% of people stick to a particular brand of mobile companies and 35% of people like to change the brand.

Statistics

stick to any particular brand

N

Valid

40

Missing

0

Mean

1.35

Stick to any particular brand

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Yes

26

65.0

65.0

65.0

No

14

35.0

35.0

100.0

Total

40

100.0

100.0


Sum of Squares

Df

Mean Square

F

Sig.

Between Groups

17.585

1

17.585

2.723

.107

Within Groups

245.390

38

6.458

Total

262.975

39

Which brand has well after sales services?

Nokia has the first brand with 85% which has good after sale service, and Motorola with 10% and Sony Ericsson and Samsung with 2.5% each.

Statistics

Which brand has good after sale service?

N

Valid

40

Missing

0

Mean

1.23

Which brand has good after sale service?

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Nokia

34

85.0

85.0

85.0

Motorola

4

10.0

10.0

95.0

Sony ericsson

1

2.5

2.5

97.5

Samsung

1

2.5

2.5

100.0

Total

40

100.0

100.0

ANOVA

Sum of Squares

Df

Mean Square

F

Sig.

Between Groups

6.446

3

2.149

.302

.824

Within Groups

256.529

36

7.126

Total

262.975

39

Is there any impact of online advertisement on you?

The last question in the product research involves product information collection, pricing and feature/benefit evaluation. Survey participants were at this stage just as likely to visit product reviews or news websites, seeking human advice and consumer reviews.

Due to rapid growth in technology, information collection and organising is has become a rather feasible activity and more consumers are turning towards their own research “pulling” the information than information being “pushed” to them as that would be the case in most forms of non-interactive media.

Lack of patience is especially prominent when a consumer engages in product research, feature and price comparison. This has been tested with a focus group and the survey results confirm that this is still the case. A majority of interviewed individuals stated that they are willing to wait only up to five seconds for a page to load.

Findings:

My find in this term paper that 65% of people have Nokia phone, 7.5% of people have Motorola phone, 7.5% of people have Sony Ericsson mobile, 15% of people have Samsung phones, and 5% have LG phones.

65% of people would like to purchase to Sony Ericsson phone and 35% of them are not.

Nokia has the first brand with 85% which has good after sale service, and Motorola with 10% and Sony Ericsson and Samsung with 2.5% each.

65% of people stick to a particular brand of mobile companies and 35% of people like to change the brand.

77.5% of people say that special offers play a main role in selling of handsets and 22.5% of people say it doesn't play any role.

In this finding I got to know that there are 52% people those who pay Rs. 4000 to 7000 for handsets and 32% people would like to purchase handset between the range of Rs. 7000 to 12000.

what the customer want in his handset there is 37.5% of people those who want mp3 in their mobile, 22.5% people want Fm Radio in their phone, 30% of people who want camera in their mobile and 10% of people who want Bluetooth in their phone.

I got to know that 5% of respondent goes for money saving, 75% of people look quality in their brand when they goes to choose brand, 2.5% of people goes on consumer demand, 15% of people look brand name and 2.5% people goes for good after sale service.

Recommendations:

Ø The companies must go for the quality product instead of increasing their profitability. The manufactures can attract the customer by providing quality products and increase their brand image.

Ø The companies must concentrate on the middle class income group.

Ø The company like Nokia has good brand image in the market. The other companies like Sony, LG must concentrate about their policy about price, after sale service and other components etc.

Ø Sony, LG must concentrate about increasing their market share.

Ø The youth of India is in keen of music and companies must concentrate on the quality of music players and most added features related to music must be provided.

BIBILOGRAPHY:

Ø http://www.scribd.com/doc/23656152/%E2%80%98Consumer-Buying-Behaviour-User-Friendliness-as-a-Success-Factor-in-Technological-Products%E2%80%99-Research-Proposal-by-Tom-Jacob-Apr-2009

Questionnaire

1. Which brand mobile do you have?

a) Nokia b) Motorola c) Sony Ericsson

d) Samsung e) LG f) Spice

2. What are your criteria to choose a brand for you?

a) Profitability b) Quality c) Customer Demand

d) Brand name e) Good after sales services

3. What are the basic features required you?

a) FM Radio b) Camera

b) MP3 d) Bluetooth

4. What cost does you pay for basic and standard features mobile handsets?

a. 2000 to 4000 b. 4000 to 7000 c. 7000 to 12000

5. Does special offers plays any role in the selling of mobile handsets?

a. Yes b. No

6. What the shopkeeper do to sell their product?

a. Advertising b. Offers

c. Gifts d. Discount

7. Do you stick to any particular brand every time or do you keep trying new brands

a. yes b. no

8. Which brand has well after sales services? Rate them 1 for fist and 5 for last.

a) Nokia b) Motorola c) Sony Ericsson d) Samsung e) LG

9. Is there any impact of online advertisement on you?


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