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Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
Article consumer behavior
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Article consumer behavior

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consumer behavior

consumer behavior

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  • 1. Abstract:Communication in real sense means transfer of information between two points andtelecommunication has emerged as a very popular way of communication. From the time whenkeeping a mobile phone was a luxury now is the time when mobile phone companies areproviding cheap handsets and lifetime prepaid connections to the hundreds and millions ofconsumers in India in a bid to expand market share and maintain their growth. India has emergedas the second fastest growing market in telecommunication sector after China. There is acutthroat competition between service providers. Everybody is trying to lure the customers withlucrative offers, schemes and various marketing strategies. This study is an effort to understandwhat are the features that a consumer looks for in a service provider and what are the basic needsof a mobile user. The research has been carried out with primary as well as secondary sources ofinformation. For primary data respondents were personally contacted and administeredstructured, undisguised and unbiased questionnaire. Secondary data was collected from variousmagazines, newspapers and Internet. About 100 respondents were surveyed. The data thuscollected has been systematically analyzed and presented in a justifiable manner for the betterpresentation and good understanding of the viewer.IntroductionThe aim of marketing is to meet and satisfy target consumers’ needs and wants. The field ofconsumer behaviour studies how individuals, groups and organizations select, buy and dispose ofgoods, services, ideas or experiences to satisfy their needs and desires.Understanding consumer behaviour and “knowing consumers” is never simple. Customers maysay one thing but do another. They may not be in touch with their deeper motivations. They mayrespond influences the change their minds at the last movement. Small companies stand to profitfrom understanding how and why their customers buy.Studying customers provide clues for developing new products; product features, prices,channels, messages and other marketing mix elements. This research explores individualconsumers buying dynamics.
  • 2. Consumer BehaviorConsumer behavior involves the psychological processes that consumers go through inrecognizing needs, finding ways to solve these needs, making purchase decisions (e.g., whetheror not to purchase a product and, if so, which brand and where), interpret information, makeplans, and implement these plans (e.g., by engaging in comparison shopping or actuallypurchasing a product).(Marketing Management, Philip Kotler)Factors influencing Consumer BehaviourA consumer’s buying behaviour is influenced by cultural, social, personal and psychologicalfactors.Cultural FactorsCulture is the fundamental determinant of a person’s wants and behaviour. The growing childacquires set of values, perception, preferences and behaviours through his or her family and otherkey institutions. Each culture consists of smaller sub cultures that provide more scientificidentification and socialization for their members when subculture grows large and affluentenough, companies often design specialized marketing programs to serve them. (ConsumerBehaviour http://www.consumerpsychologist.com/)Social FactorsIn addition to cultural factors, consumer’s behaviour is influenced by such social factors asreference groups, family and social roles and statuses.Reference Group: A persons’ reference group consists of all the groups that have a direct orindirect influence on the person’s attitude or behaviour. The groups having a direct influence ona person are called Membership groups. Membership groups may be primary (family, friends) orsecondary (religious, professional groups). Reference groups expose an individual to newbehaviours and lifestyles and influence attitudes and self-concept.
  • 3. Family: The family is the most important consumer-buying organization society; it creates themost influential primary reference group. Even if the buyer no longer interacts with his parents,their influence on the buyers’ behaviour can be significant..Roles and Statuses: A person participates in many groups such as family, clubs, andorganizations. The Persons’ position in each group can be defined in terms of role and status. Arole consists of activities a person is expected to perform. Each role carries status. (ConsumerBehaviour http://www.consumerpsychologist.com/)Personal FactorsBuyer’s decisions are also influenced by personal characteristics. These include the buyers’ ageand stage in life cycle, occupations, economic circumstances, lifestyle and personality and self-concept.Age and Stage in Life cycle: People buy different goods and services over lifetime. The goodbought or services used in one stage of life differ from the goods and services bought in the otherstage of life.Occupation and Economic circumstances: Occupation also influences consumption pattern. Ablue-collar worker will buy work clothes, work shoes and lunch boxes, while the companypresident will buy executive suits, air travel and country club membership. A company shoulddesign its product in such a manner that all classes of consumer could use it.Life Style: Life style is a persons’ pattern of living in the world as expressed in activities,interests and opinions. Peoples belonging to different social classes lead different life styles andthis life style impact on the buying behaviour.Personality and Self Concept: Each person has personality characteristics that influence his orher buying behaviour. Personality can be useful in analyzing consumer brand choices as aconsumer buys the product, which matches his or her personality. (Marketing Management,Philip Kotler)
  • 4. Psychological FactorsA personal buying choice is influenced by four major psychological factors, which areMotivation, Perception, Learning and Beliefs and attitudes.Motivation: Motive is the need that is sufficiently pressing to drive the person to act. Motivationis led by need and a consumer’s buying behaviour is also derived by the need. Thus marketersshould understand the motivation behind a consumer’s buying decision.Perception: Perception is the process by which an individual selects, organizes and interpretsinformation, input to create a meaningful meaning of the world. It is very important tounderstand the consumer’s perception towards a product.Learning: Learning involves changes in an individual’s behaviour arising from experience.Most human behavior is learned. A new company could enter the market by appealing the samedrives that competitors use and by providing similar key configurations because buyers are morelikely to transfer to similar brands.Beliefs and Attitudes: Belief is a descriptive thought that a person holds about something.People believe about a product or brand influence their buying decision. People’s belief towardsa product leads to their decision of either buying or not buying it. (Brian Mullen & CraigJohnson , The Psychology of Consumer Behaviour,)
  • 5. Consumer Choices and Decision MakingGenerally, the purchaser passes through five distinct stages in taking a decision for purchasing aparticular commodity. These stages are: (i) Need recognition, (ii) Information search, (iii)Evaluation of alternative, (iv) Purchase decision, and (v) Post purchase feelings. NEED RECOGNITION INFORMATION SEARCH EVALUATION OF ALETRNATIVE PURCHASE DECISION POST PURCHASE FELLINGS Consumer Choice and Decision Making Process
  • 6. Research Methodology Research Design This study is an effort to understand what are the features that a consumer looks for in a service provider and what are the basic needs of a mobile user. The research has been carried out with primary as well as secondary sources of information. The data thus collected has been systematically analyzed and presented in a justifiable manner for the better presentation and good understanding of the viewer. Collection of Data Primary Data For primary data respondents were personally contacted and administered structured, undisguised and unbiased questionnaire. People from different age groups and different socio-economic backgrounds are included. Secondary Data The secondary data is the data which already exists and is collected from various sources including Magazines, News Papers and Internet and other sources. Scope of the study The scope of the study include various Telicom Service Providers including Airtel, BSNL, Vodafone, Tata Indicom, MTS and Reliance. Sampling Area The area of research includes Jodhpur district, Rajasthan. Sample Design The sampling design includes the following-
  • 7. a) Sampling Unit In this study sampling unit include the data collection of customers of Airtel, BSNL, Vodafone, Tata Indicom, MTS and Reliance. b) Sample Size The sample population of the study is 100 c) Sampling Technique Convenience sampling technique is used in the following study.Objective of Study: The objective of the study are as follows- 1. To study the perception of mobile users towards a service provider in Jodhpur. 2. To study the factors influencing the decision of mobile users while selecting a service provider. 3. To study the satisfaction level of the mobile users and reasons for their satisfaction and dissatisfaction.Limitations: The study has the following limitations- 1. One district survey cannot represent the view of whole Indian Market 2. Some respondents show their unwillingness in sharing information with researcher. 3. The conclusions drawn were purely based on the information provided by the respondents.Analyses and Interpretations:
  • 8. Table 1 Showing the ratio of respondents on the Gender basis. Gender No. Of Share In Sample Respondents Male 60 60% Female 40 40% Total 100 100%This table shows the ratio of respondents on the gender basis. Where 40% respondents arefemale and 60% respondent are male.Table 2 Showing the ratio of respondent on the basis of Service Provider they are using. Service Provider No. of Share In Sample Respondents Airtel 40 40% Reliance 10 10% BSNL 20 20% Tata 5 5% Vodafone 15 15% Idea 10 10% Total 100 100%This table shows no. of respondents on the basis of service provider they are using where 40%using airtel, 10% using reliance, 20% using bsnl, 5% using tata, 15% using Vodafone and 10%using idea.
  • 9. Table 3 Showing no. of respondent on the basis of type of connection they are using. Type of Connection No. of Respondent Share in Sample Prepaid 80 80% Postpaid 20 20% Total 100 100%This table shows that 80% users using prepaid connection and 20% users using postpaidconnection.Table 4 Showing the factors that affect the buying decision of Mobile Users in Jodhpur. Option No. of Respondent Share in percentage Offers & Scheme 75 75% Friends & Family 15 15% Advertisement 10 10% Total 100 100%This table shows factors affecting buying decision of mobile users in Jodhpur where 75% says it is offers& schemes, 15% says it is friends & family and 10% says it is the advertisements.Table 5 Showing preferences of mobile users while selecting a service provider
  • 10. Options Strongly Agree Undecided Disagree Strongly Mean agree disagree Score Network 84 16 0 0 0 1.84connectivityCall charges 76 18 6 0 0 1.70 & tariffs plansValue added 36 34 14 8 8 .90 services & customer care Applying F-test Null Hypothesis- H0:µ1=µ2=µ3 Alternate Hypothesis- Hα: µ1≠µ2≠µ3 N=15 n=3 Table 1 X1 X2 X3 X4 X5 Total 1 Network 84 16 0 0 0 100 Connectivity Call Charges 76 18 6 0 0 100 & Tariffs VAS & 36 34 14 8 8 100 Customer Care Total 196 68 20 8 8 300 Table 2 X12 X22 X32 X42 X52 Total 2 New 7056 256 0 0 0 7312 feature Call 5776 324 36 0 0 6136 Charges & Tariffs VAS & 1296 1156 196 64 64 2776 Customer Care Total 14128 1736 232 64 64 16224 Correction Factor= C.F. = (Total 1)2/N= ( 300 )2/15= 6000
  • 11. SST= Total 2 - C.F.= 16224 – 6000 = 10224 SSC= (∑X1)2/n +(∑X2)2/n + (∑X3)2/n - C.F.= 14523 – 6000 = 8523 SSR= SST- SSC= 1701 ANNOVA TABLE Source Sum of Degree Mean F F of squares of Square calculated tabulated variation freedom Between 8523 4 2130.75 sample Within 1701 10 170.1 sample Total 12.52 3.49Therefore, calculated value of F is greater than table value of F i.e. with degree of freedombeing v1=4 and v2=10. Thus, null hypothesis of no difference is rejected and alternatehypothesis is accepted.Table 6 Showing level of satisfaction in mobile users Option No of Respondent Share in Percentage Highly Satisfied 15 15% Satisfied 41 41% Neutral 0 0% Dissatisfied 30 30% Highly Dissatisfied 14 14% Total 100 100%
  • 12. This table shows level of satisfaction among mobile users in jodhpur where 15% says they are highlysatisfied, 41% satisfied, o% neutral, 30% dissatisfied and 14% are highly dissatisfied with their serviceprovider.Table 7 Showing reason for satisfaction among mobile users Options Strongly Agree Undecided Disagree Strongly Mean agree (2) (1) (0) (-1) disagree Score (-2) Network 40 8 2 6 0 1.46 Connectivity Call Charges 24 22 6 4 0 1.17 & Tariffs VAS & 22 24 0 6 4 0.96 Customer Care Applying F-test Null Hypothesis- H0:µ1=µ2=µ3 Alternate Hypothesis- Hα: µ1≠µ2≠µ3 N=15 n=3 Table 1 X1 X2 X3 X4 X5 Total 1 Network 40 8 2 6 0 56 Connectivity Call Charges 24 22 6 4 0 56 & Tariffs VAS & 22 24 0 6 4 56 Customer Care Total 86 54 8 16 4 168 Table 2 X12 X22 X32 X42 X52 Total 2 Network 1600 64 4 36 0 1704 Connectivity Call Charges 576 484 36 16 0 1112 & Tariffs
  • 13. VAS & 484 576 0 36 16 1112 Customer Care Total 3928 Correction Factor= C.F. = (Total 1)2/N= ( 168)2/15= 1882 SST= Total 2 - C.F.= 3928 – 1882 = 2046 SSC= (∑X1)2/n +(∑X2)2/n + (∑X3)2/n +(∑X4)2/n +(∑X5)2/n - C.F.= 3549 – 1882 = 1667 SSR= SST- SSC= 379 ANNOVA TABLE Source of Sum of Degree of Mean F F variation squares freedom Square calculated tabulated Between 1667 4 416.75 sample Within 379 10 37.9 sample Total 10.99 3.49Therefore, calculated value of F is greater than table value of F i.e. with degree of freedombeing v1=4 and v2=10. Thus, null hypothesis of no difference is rejected and alternatehypothesis is accepted.Table 8 Showing reason for dissatisfaction among mobile users Options Strongly Agree Undecided Disagree Strongly Mean agree (2) (1) (0) (-1) disagree Score (-2) Network 28 14 2 0 0 1.59 Connectivity Call Charges 16 16 4 6 2 0.86 & Tariffs VAS & 8 12 6 6 12 -.04 Customer Care
  • 14. Applying F-test Null Hypothesis- H0:µ1=µ2=µ3 Alternate Hypothesis- Hα: µ1≠µ2≠µ3 N=15 n=3 Table 1 X1 X2 X3 X4 X5 Total 1Network 28 14 2 0 0 44ConnectivityCall Charges 16 16 4 6 2 44& TariffsVAS & 8 12 6 6 12 44CustomerCareTotal 52 42 12 12 12 132 Table 2 X12 X22 X32 X42 X52 Total 2Network 784 196 4 0 0 98ConnectivityCall Charges 256 256 16 36 4 568& TariffsVAS & 64 144 36 36 144 424CustomerCareTotal 1976 Correction Factor= C.F. = (Total 1)2/N= ( 132)2/15= 1162 SST= Total 2 - C.F.= 1976 – 1162 = 814 SSC= (∑X1)2/n +(∑X2)2/n + (∑X3)2/n +(∑X4)2/n +(∑X5)2/n - C.F.= 1651 – 1162 = 489 SSR= SST- SSC= 325
  • 15. ANNOVA TABLE Source of Sum of Degree of Mean F F variation squares freedom Square calculated tabulated Between 489 4 122.25 sample Within 325 10 32.5 sample Total 3.76 3.49Therefore, calculated value of F is greater than table value of F i.e. with degree of freedombeing v1= 4 and v2= 10. Thus, null hypothesis of no difference is rejected and alternatehypothesis is accepted.Table 9 Showing no of respondent who are willing to change their service provider Option No of Respondent Share in Percentage Yes 44 44% No 56 56% Total 100 100%This table shows that 44% of the respondents are willimg to change their service provider, while 56% ofrespondents are not willing to change their service provider.Table 10 Showing reason for changing service provider Options Strongly Agree Undecided Disagree Strongly Mean agree (2) (1) (0) (-1) disagree Score (-2) Network 26 12 0 4 2 1.27 Connectivity Call Charges 10 20 6 8 0 0.72 & Tariffs VAS & 14 18 0 8 4 0.68 Customer Care
  • 16. Applying F-test Null Hypothesis- H0:µ1=µ2=µ3 Alternate Hypothesis- Hα: µ1≠µ2≠µ3 N=15 n=3 Table 1 X1 X2 X3 X4 X5 Total 1Network 26 12 0 4 2 44ConnectivityCall Charges 10 20 6 8 0 44& TariffsVAS & 14 18 0 8 4 44CustomerCareTotal 50 50 6 20 6 132 Table 2 X12 X22 X32 X42 X52 Total 2Network 676 144 0 16 4 840ConnectivityCall Charges 100 400 36 64 0 600& TariffsVAS & 196 324 0 64 16 600CustomerCareTotal 2040 Correction Factor= C.F. = (Total 1)2/N= (132)2/15= 1162 SST= Total 2 - C.F.= 2040 – 1162 = 878 SSC= (∑X1)2/n +(∑X2)2/n + (∑X3)2/n +(∑X4)2/n +(∑X5)2/n - C.F. = 1824 – 1162 = 662 SSR= SST- SSC= 216
  • 17. ANNOVA TABLE Source of Sum of Degree of Mean F F variation squares freedom Square calculated tabulated Between 662 4 165.5 sample Within 216 10 21.6 sample Total 7.66 3.49Therefore, calculated value of F is greater than table value of F i.e. with degree of freedombeing v1=4 and v2=10. Thus, null hypothesis of no difference is rejected and alternatehypothesis is accepted.Table 11 Showing reason for not changing service provider Options Strongly Agree Undecided Disagree Strongly Mean agree (2) (1) (0) (-1) disagree Score (-2) Network 44 6 0 6 0 1.57 Connectivity Call Charges 22 16 10 8 0 0.92 & Tariffs VAS & 20 20 8 6 2 0.89 Customer Care Applying F-test Null Hypothesis- H0:µ1=µ2=µ3 Alternate Hypothesis- Hα: µ1≠µ2≠µ3 N=15 n=3
  • 18. Table 1 X1 X2 X3 X4 X5 Total 1Network 44 6 0 6 0 56ConnectivityCall Charges 22 16 10 8 0 56& TariffsVAS & 20 20 8 6 2 56CustomerCareTotal 86 42 18 20 2 168 Table 2 X12 X22 X32 X42 X52 Total 2Network 1936 36 0 36 0 2008ConnectivityCall Charges 484 256 100 64 0 1204& TariffsVAS & 400 400 64 36 4 904CustomerCareTotal 4116 Correction Factor= C.F. = (Total 1)2/N= ( 168 )2/15= 1882 SST= Total 2 - C.F.= 4116 – 1882 = 2234 SSC= (∑X1)2/n +(∑X2)2/n + (∑X3)2/n +(∑X4)2/n +(∑X5)2/n - C.F.= 3296 – 1882 = 1414 SSR= SST- SSC= 820 ANNOVA TABLE Source of Sum of Degree of Mean F F variation squares freedom Square calculated tabulated Between 1414 4 353.5 sample Within 820 10 82 sample Total 4.31 3.49
  • 19. Therefore, calculated value of F is greater than table value of F i.e. withdegree of freedom being v1= 4 and v2= 10. Thus, null hypothesis of nodifference is rejected and alternate hypothesis is accepted.

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