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STUDY OF STUDENTS BEHAVIOUR WHILE BUYING MOBILE PHONES.

DISHA INTITUTE OF MANAGEMENT AND TECHNOLOGY, RAIPUR (C.G.) Page 1

RESEARCH REPORT

ON

³STUDY OF STUDENTS BEHAVIOUR WHILE PURCHASING MOBILE

PHONES´

BY

SAMIKSHA PETHE

2010- 2011

IN PARTIAL FULFILLMENT OF

MASTER OF BUSINESS ADMINISTRATION DEGREE

DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY, RAIPUR





DISHA INSTITUTE OF MANAGEMENT AND TECHNOLOGY

Satya Vihar, Vidhansabha-Chandrakhuri Marg, Gram Pacheda, Tehsil Arang,

District - Raipur (C.G) 492101. Ph: 0771-4200200-09. Fax: 4200110

Website: www.dimatindia.com, Email: [email protected]

CERTIFICATE

This is to certify that Mr. /Miss ________________________________________Of

DIMAT/DSME MBA Semester ±II has successfully completed the research report in

partial fulfillment of requirement for the award of MBA Degree prescribed by the

Chattisgarh Swami Vivekanand Technical University, Bhilai.

This report is the record of authentic work carried out by the student during the

academic year 2010-11.

Prof. Shailaja Triwedi Prof. (Dr.) R. Satish Benadict

Internal Guide Academic Head

(Faculty of Management)







ACKNOWLEDGEMENT

I hearty thanks to Prof. Shailaja triwedi, research supervisor, for giving me opportunity

to do this assignment and for her support and guidance, without which this would not

have been possible.

I would also like to thanks to Prof. Suresh Pattanayak, Faculty of Management who

stood behind me as a constant source of inspiration and helped me in bringing the

project the day of success.

Last but not least I am highly thankful to all my friends and family members for constant

support and helped in overcoming all the critical situation with attitude of always keeping

moral high.

Date: 14/04/2010





SL NO: PARTICULARS PG NO:

1) Certificate 2

2) Declaration 3

3) Acknowledgement 4

CHAPTER 1 Introduction 6-13

y Literature review

y Expected features

y Indian mobile industry

CHAPTER 2 Research methodology 14-15

y Research design

y Research instrument

y Data analysis method

y Data collection

CHAPTER 3 Analysis and interpretation of data 16-27

y Data analysis

y Limitation of study

y Finding

4) Recommendation 29

5) Conclusion 30

6) Questionnaire 31-32

Table of content





CHAPTER 1

INTRODUCTION





Introduction:

The prime objective of the study was to understand the variation in the importance given

by different under graduate and post graduate students to the selected factors while

buying mobile handsets. The study concludes that under graduate mobile handset

users are less price sensitive than consumers of other groups; rather they consider

µphysical appearance¶, µbrand¶, µvalue added features¶, and µcore technical features¶

more important than post gradute students. On the contrary, the consumers of post

graduate have given greater importance to µprice¶ than under graduate students. There

were significant differences between different students as regards to the importance

given to all the factors except µpost - purchase services¶. The difference was highest for

the µbrand¶ closely followed by µcore technical features¶ of the handset. Gender

differences have also existed for these factors





Mobile telecommunication industry has shown a tremendous growth over the last few

years and at present there are about twenty crore (1 crore = 10 million) subscribers of

the mobile telecom services in the country. The market for the mobile handset is also

growing with the growing demand for mobile telecom services. This demand will

continue to grow in future also. India at present is the second largest market for mobile

handsets (Indian Brand Equity Foundation, 2005). The growth in this sector has been

improved due to liberalization of telecommunication laws and policies.

The consumers of both rural and urban areas,from college - going students to mature

elders, of almost all income groups have started using mobile telecom services. The

growth is fastest in mobile services as compared to fixed lines where it is modest (The

World Factbook, 2008). Some of the consumers particularly college - going students

have to rely on their parents for the buying of products like mobile handset and

automobile. This is so because large majority of such people are not economically

independent till the age of 22-24 years. Therefore, they have to satisfy themselves with

what their parents buy for them. But now-a-days, these people have become more able

to influence their parents in buying the products of their choice. This is probably due to

small family size of one or two children these days, where parents comply more with the

requests of their children as compared to the past.

The manufacturers are introducing newer and newer models in quick succession of

time. They are motivated to do so because Indian mobile subscribers are prepared to

pay for upgrades, value-based services, and advanced models. The cut throat

competition between manufacturers has forced manufacturers to reduce their costs and

therefore, they are thinking of manufacturing handsets in India. The low wage rates will

help manufacturers to reduce their costs (Indian Brand Equity Foundation, 2005).

Besides this, the service providers and manufacturers are offering value added services

to make up losses in revenues, which have resulted due to decrease in tariff rates. Thus

mobile value added services has become an important element in the growth of mobile

telephony in India.





Mobile phones today have moved beyond their fundamental role of communications

and have graduated to become an extension of the personality of the user. In spite of

breeding of offers for content-rich mobile data services other than text messaging, the

adoption of advanced services such as mobile phone payment, online mobile gaming

and mobile email have yet to reach the noteworthy levels of usage in India. There is a

discernible preference for mobile phones with color screens over those with black and

white displays. Short Message Service (SMS) is very much popular and its importance

is increasing further as the subscribers can now participate in large number of

contests/polls etc. Consumers are also making wide use of handsets for clicking

photographs, playing games, downloading icons/screensavers/logo/ring tones, sending

camera-phone taken photos, and playing offline games with their mobile phones. And

yet the consumers are expecting much more from their mobile phones.

The debate that was started on cost benefits has turned into a commercially viable

option for service providers. Mobile service providers, who were once competing fiercely

with fixed-line operators, are now facing stiff competition from alternative technologies





Literature review:

There are three different consumer types of three generations in India. Traditional

students of pre-liberalization phase (1960-70s) were, stable, inward looking and had

limited choices. They kept their family needs on the top and their own personal needs

were subordinate to their family needs. They avoided risk. In the transient phase (1980-

90s), the students were more risk taking than their predecessors. They had

experiencedmulti-choices and had a tendency to be better off than their parents.

Economically, they had no fears or concerns. The new millennium students tends to

enjoy life. He has greater self-control, and looks for personal style and pleasure.

Exposures to variety of products and enhancement of economic status have changed

the attitudes of the upper middle ± class consumers towards brands.

Indian society being hierarchical in nature is therefore, status conscious. Indians give

very high value to brands. In India, a brand is a cue to quality because the quality of the

unbranded products varies widely. According to study conducted in 2001 on testing of

homogeneity versus heterogeneity of global consumption in a cross-cultural price/brand

effect model; Indian consumers in comparison to Americans are tougher for the

marketers to sell their products. However he found Indian consumers more price andless brand conscious

Technological innovations such as cellular phones and digital televisions have attracted

the attention of marketing researchers as regards to their adoption process.

Researchers has provided a classification of adopters in terms of innovators, early

adopters, early majority, late majority and laggards. But now consumers are also

looking into the compatibility of the new products to their self-image and life style

observed a considerable association between color and the choice of an automobile.

The study further identifies the gender moderation on the relationship between different

color dimensions and the product choice. Younger consumers are greater fond of

fashionable/stylish products than older ones. Young consumers are normally more

willing to try new products and they are interested in asking more information than older





ones. It makes them self-confident and that is why they are more likely to be opinion

leaders and less hesitant in brand switching. But one should not ignore the older

consumers also. The studies have revealed that the older consumers are wealthy,

innovative and they also have a tendency to be the part of a typical consumption system

They can be a prime market for the luxury products. However they give more

preference to comfort or convenience than any other feature of the product. It also

needs to be recognized that most older people accept and enjoy their life stage, and are

as willing to spend their money as any other generation, but only if the product and the

message are relevant. On the other hand, the youth, which is more informed, pragmatic,

opportunistic, demanding and restless, will always seek excitement in products and

services. It is normally perceived that young buyers try new products, seek greater

information and are more self-confident in decision-making. Elderly consumers are

selectively innovative and they accept only those innovations that provide exclusive

benefits. Therefore, age and life cycle can be the delicate variables in the consumer

behavior process.





Expected Features:

Text message

Voice calls including call registers

GPS Navigation

Music (MP3) & Video (MP4) playback

RDS Radio Receiver, alarms

Memo and document recording

Personal organizer and personal digital assistant functions

Ability to watch streaming video or download video

Video cutting

Build-in camera and camcorders with autofocus & flash

Ringtones, games

PTT memory card reader(SD), USB, Infrared, Bluetooth,

WiFi connectivity, instant messages

Internet e-mail and browsing

Serving as wireless modem for a PC.





Indian Mobile Industry

India has around 1 billion GSM users as per Cellular Operators Association of

India¶s (COAI) latest statistics and 39 million CDMA users as per Association of

Unified Telecom Service Providers of India¶s (AUSPI) statistics.

Cellular network provider

In India mobile handset market is flooded with local and branded handsets from

different companies. Major players are Nokia, Samsung, Sony Ericsson, LG and

Motorola.





CHAPTER 2

RESEARCH METHODOLOGY







CHAPTER 3

DATA ANALYSIS AND INTERPRETATION





DATA ANALYSIS:

No. of UG & PG Student¶s responses

UG, 53%

PG, 47% UG

PG





Q1. Do you own a cell phone?

A. Yes B. No C. I don¶t

own, but use frequently

91%

4%5%

UG & PG

A BC





Interpretation: It is found that undergraduate students own mobile phones

in rarely as compared to postgraduate students.

Q2. Which brand of mobile you use?

86%

7% 7%

UGA B

100%

PGA B C





Q3. What features attracts you while buying a cell phone?

nokia, 45%

samsung, 30%

virgin, 15%

tatadocomo, 5%

reliance, 5%

nokia

samsung

virgin

tata docomo

reliance





A. It¶s features B. Model & Appearance C.Brand D. Cost or Economy

Q4. For which purpose do you use the cell phone?

37%

37%

10%

16%

UG & PGA B C D

48%

39%

4%

9%

UG

A B C D

17%

33%21%

29%

PGA B C D

INTERPRETATION:

Undergraduate

students give more

preference to its

features whereas

postgraduate students

are more brand

concious and giveequal preference to its

appearance and price





A. SMS/MMS C. e-browsing & Downloads

B. Calling D. Getting updates of latest happenings

INTERPRETATION: It is found that undergraduate students use their cell phones

mostly for sending sms¶s and to chat with their friends but postgraduate students use

their mobile phones mostly for making important calls.

Q5. Which mode of connection do you prefer?

31%

62%

4%3%

UG & PGA B C D

39%

52%

7% 2%

UG

A B C D

17%

79%

4%

PG

A B C D





A. CDMA Prepaid C. GSM Prepaid

B. CDMA postpaid D. GSM Postpaid

Interpretation: students mostly use GSM prepaid connection.

Q6. What do you prefer most when going for a particular connection?

22%

3%

65%

10%

UG & PG

A B C D

25%

2%

59%

14%

UG

A B C D17% 4%

75%

4% PG

A B C D





A. Connectivity or signal C. Tariffs

B.Offers (group calling/ night time free) D. Brand

Interpretation: Undergraduate students mostly look for signal or connectivity while

going for a particular connection, whereas postgraduate students go for connectivity as

well as for the offers that are being provided.

Q7. What is the cost of cell phone you are using now?

60%27%

13%

0% UG & PGA B C D

64%

23%

1%12%

UG

A B C D

54%34%

12%

0%

PG

A B C D





A. Rs. 2000-5000 B. Rs.5000-10000

C.Rs. 10000-15000 D. above Rs. 15000

INTERPRETATION: Undergraduate students own mobile rs. 2000-10000 in range &

postgraduate own mobile phones in range of rs. 5000-15000.

Q8. When did you buy your first mobile?

22%

34%

39%

5% UG & PGA B C D

14%

39%39%

8%

PG

A B C D

46%

38%

16%

0%

UG

A B C D





A. 1-2 year ago B. 2-3 year ago

B. Rs. 3-4 year ago D.more than 4 years ago

Interpretation: Out of Number of students surveyd, undergraduate students are having

their own mobile from last 1-2yrs wheras postgraduate students are having mobile from

more than 4yrs.

Q9. How often do you change your mobile sets?

34%

34%

20%

12%

UG & PG

A B C D

45%

32%

18%5%

UG

A B C D13%

37%25%

25%

PG

A B C D





A. Once in a year C. . Not changed yet

B. Once in two years D. Depends

Interpretation: Undergraduates students go for a change in mobile sets frequently,

whereas postgraduate students change their mobile sets oftenly.

Q 10. Is the model feasible for you?

34%

34%

20%

12%

UG & PGA B C D

45%

32%

18%5%

UG

A B C D13%

37%25%

25%

PG

A B C D





A)YES B) NO C) DON¶T KNOW

Interpretation: For most students the mobile sets they own are feasible for them.

75%

20%

5%

UG & PG

yes no dont know

75%

20%

5%

UG & PG

yes no dont know

75%

20%

5%

UG & PG

yes no dont know





LIMITATIONS OF THE STUDY

The study has been carried out with two variables - age and gender. However

consumer buying is a complex process in which number of factors like social status,

economic factors and psychographic factors influence the buying of the consumer.





FINDINGS

� Most of the students own their mobile phone.

� Students use mobile phone for calling and sending SMS¶s the most.

� Majority of students prefer GSM prepaid connection

� Students have opted for a mobile phone as It connects them to their friends &

family round the clock

� Features and model of cell phones are given top priority while buying a cell

phone.

� Students would prefer to a cell phone with basic features of calling, SMS,

camera, MP3 player, good memory and also with good battery backup for atleast

2 days.

� A majority of students are not much interested in downloading ringtones / wall

papers/ upgrading the software for their mobile phone.

� Students see good connectivity or signal when going for a particular connection.

� The cost range of their (UG & PG students) cell phone lies between Rs. 5000-

10000.

� On an average every student in the campus is using a cell phone from the past

2.5 years.

� Student¶s expenditure on recharges, value added service etc per month on their

mobile phone would range between Rs. 200-500.

R ECOMMENDATIONS





Mobile phone industry is one of the fastest growing industries in the world.

� There is a scope for a mobile with an eco friendly technology.

� The cell phones in the cost range of Rs. 7500 ± 10000 need to be built up with

some extra features as many of the students are opting a mobile in that range.

� Tariffs can even be lowered between 5 -9 P.M as there found to be a huge traffic

in that time period.

� There is a scope for CDMA prepaid service providers to enhance their market

share in this particular segment but proper advertisement is needed.





CONCLUSIONS

In many number of cases, children are taken into confidence when a parent buys an

item like handset as a gift to be given to the other parent on special occasions like

anniversaries. This implies that these people may not only act as independent buyers,

but influence the buying of people of other age/gender groups. The marketers of

handsets can earn a lot of admiration from Indian female consumers by offering a wide

range (colors and designs) of models that are not only attractive in appearance but also

compatible to their physical looks and style.

The companies that wish to target Indian youth must strengthen their brand equity

besides improving µappearance¶, µvalue added features¶ and µcore technical features¶. It

will help them in increasing their revenues manifold in India due to the reason that

Indian market is youth rich with median age of 24 years (The World Factbook, 2008).

The companies with poor brand equity may find a niche in 50 years and above age

group, provided they reasonably improve µappearance¶ and µpost-purchase services¶

and keeping the prices as low as possible. The gray-market products from countries like

China due to the lack of adequate µpost-purchase services¶; did not get much success

despite all other technical, value added features and low price.





Q UESTIONAIR E

Q 1. Do you own a cell phone?

A. Yes B. No C. I don¶t own, but use frequently

Q2. Which brand of mobile you use?

Q3. What features attracts you while buying a cell phone?

A. It¶s features B. Model & Appearance

C.Brand D. Cost or Economy

Q4. For which purpose do you use the cell phone?

A. SMS/MMS C. e-browsing & Downloads

B. Calling D. Getting updates of latest happenings

Q5. Which mode of connection do you prefer?

A. CDMA Prepaid C. GSM Prepaid

B. CDMA postpaid D. GSM Postpaid

Q6. What do you prefer most when going for a particular connection?

A. Connectivity or signal C. Tariffs

B.Offers (group calling/ night time free) D. Brand

Q7. What is the cost of cell phone you are using now?

A. Rs. 2000-5000 B. Rs.5000-10000

C.Rs. 10000-15000 D. above Rs. 15000




Q8. When did you buy your first mobile?

B. 1-2 year ago B. 2-3 year ago

C. Rs. 3-4 year ago D.more than 4 years ago

Q9. How often do you change your mobile sets?A. Once in a year C. . Not changed yet

B. Once in two years D. Depends

Q 10. Is the model feasible for you?

A) YES B) NO C) DON¶T KNOW

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