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  • 1. Consumer Behavior Project onCONSUMER BUYING BEHAVIOR OFMOBILE HANDSETSFr. Casimir Raj Report by 206: Anmol Rohatgi | 220: Heemanish Mide | 260: Vivek Rajgopal October 10, 2008 Xavier Institute of Management & Research, Mumbai Mumbai University
  • 2. AcknowledgmentWe would like to thank Fr. Casimir Raj for providing us with an opportunity to work on this project.We are also grateful for his support and guidance provided through the completion of the project.We are also thankful to all the people directly or indirectly involved in completing this project. Thisincludes the 100 respondents who were patient and cooperative in responding to our questionnaires.And finally we are thankful to the staff in the library that helped us in getting resources for oursecondary information. - Anmol Rohatgi, Heemanish Mide, Vivek Rajgopal 1
  • 3. Executive SummaryThe concept of “buying behavior” is of prime importance in marketing and has evolved over theyears. It is important to understand consumer buying behavior as it plays a vital role in crating animpact on purchase of products.The human wants are unlimited and always expect more and more. Mobile handsets are noexception to this behavior. This lead to constant modifications of mobile handsets and today we seea new model coming into the market practically every month.In this research study our findings gave us thorough insights of consumer buying behavior of mobilehandsets. We find that consumers consider various parameters while buying mobile handsets.Factors such as price and functions availing and the utility and its hedonic aspects our consideredvery importantWe have been able to also infer that people sub consciously register the brand, tend to recall. Wealso come to understand that most dealers have showed a tendency to market the mobile handsetwhich as per consumers requirement.On the whole, the market is a very important place to study the behavior of consumers and alsoprovide useful insights what a consumer requires in a product. It is only through research that ancompany will be able to study the buying behavior of consumers. 2
  • 4. Index1. CONCEPTUAL FOUNDATION 1. Consumer Behavior2. MOBILE INDUSTRY IN INDIA2. RESEARCH METHODOLOGY3. DATA ANALYSIS 1. Understanding Consumer Behavior 2. Understanding Brand Preference 3. Other observations 4. Hypothesis3. RECOMMENDATIONS4. CONCLUSION5. Bibliography & Webliography6. Annexures 3
  • 5. 1Conceptual Foundation “The Consumer is not a Moron….She is your Wife….Complex and Smart…. ”CONSUMER BEHAVIORNot understanding your consumer’s motivations needs and preferences can hurt. The aim ofmarketing is to meet and satisfy target consumer’s needs and wants. The field of consumer behaviorstudies how individuals or groups of individuals select, buy, use and dispose of goods or services.Understanding consumer behavior and “knowing consumers” is not simple. Consumers may say onething and do another. They may not be in touch with their deeper motivations. They may respond toinfluences that change their minds at the last minute.But studying consumers provides clues for developing new products, product features, prices andaltering marketing strategies accordingly. Let us try and understand the buyer behavior process. Problem Recognition: Perceiving a Need Information Search: Seeking Value Alternative Evaluation: Assessing Value Purchase Decision: Buying Value Post purchase Behavior: Value in Consumption or Use 4
  • 6. Problem RecognitionThe buying process starts when the buyer recognizes a problem or need. The need can be triggeredby internal or external stimuli. Marketers need to identify the circumstances that trigger a particularneed. By gathering information from a number of consumers, marketers can identify the mostfrequent stimuli that spark an interest in a product category. They can then develop marketingstrategies that trigger consumer interest.Information SearchAn aroused consumer will be inclined to search for more information. Consumer information sourcesfall into four groups Personal Sources: Family, Friends, Neighbors, Acquaintances Commercial Sources : Advertising, Salespersons, Dealers, Packaging, Displays Public Sources : Mass Media, Consumer-Rating Organisations Experiential Sources : Handling, Examining, Using the ProductKnowing about the sources will help the companies in preparing effective communications for thetarget market.Alternative EvaluationHow does the consumer evaluate competitive brands and make a final value judgment? There is nosingle process used by all consumers or by one consumer in all buying situations. But some basicconcepts will help us in understanding consumer evaluation processes.First, the consumer is trying to satisfy a need.Second, the consumer is looking for certain benefits from the product solution.Third, the consumer sees each product as a bundle of attributes with varying abilities for deliveringthe benefits sought to satisfy this need. 5
  • 7. Purchase DecisionIn the evaluation stage, the consumer forms preferences among the brands in the choice set. Theconsumer may also form an intention to buy the most preferred brand. However, two factors canintervene between the purchase intention and purchase decision.The first factor is the attitudes of others and the second factor is unanticipated situational factorssuch as loss of income, some other urgent purchase etc.In executing a purchase intention, the consumer may make up to five purchase sub-decisions, Brand decision Vendor decision Quantity decision Timing decision Payment-method decisionPost-Purchase BehaviorAfter purchasing the product, the consumer will experience some level of satisfaction ordissatisfaction. The marketer’s job thus, does not end when the product is brought. Marketers mustmonitor post-purchase satisfaction, post-purchase actions and post-purchase product uses. 6
  • 8. AN EXAMPLE OF A PURCHASE BEHAVIOR BY A CONSUMER IS GIVEN BELOWProblem RecognitionThe need was recognized when my old mobile phone stopped working. I was using Nokia 5200 andsuddenly it stopped working and when given for repair, I was informed that the mobile can not berepaired. The process of getting my mobile repaired took some 10 days i.e. for almost 10 days I waswithout a mobile phone. The need was felt when it was my birthday and I was not able to be intouch with my friends and family. Since I use my mobile even to surf my mails and internet I was noteven able to do that. All this caused a lot of in convince and finally I had to go for a new mobilephone.Information SearchFor me my mobile phone is a high involvement product. Since am a student with limited disposableincome I purchase a mobile once in a wile. I don’t change my mobile set unless and until it stopsworking and therefore at the time of making a decision to buy a new mobile I went through all thevarious mobile phones available in my budget and of my preferred brand. i always look for variousoffers and even compared rates at various stores and mobile dealers.Alternative EvaluationIn identifying the various alternatives I went through various mobiles available of my preferredbrand. I even discussed with my family members and friends about which mobile do theyrecommend. I met various dealers and stores to know the latest Nokia launches and various offersavailable with all these dealers. No check out the rates and features I even visited various web siteswhere I compared all the features and prices of various brands available in my budget.Since I am a Nokia loyalist so I never preferred changing my mobile brand. although the other brandoffers were really tempting but they were still not able to influence me to change my brand. Theonly issue was which mobile model I should go for. There were various mobiles available and werealmost similar apart from some features difference and design. Finally I decided to go for Nokia 3120which was economical, had a good design, was Nokia latest launch and was satisfying almost all myneeds i.e. it was a 3g phone so apt for internet surfing and with all the latest features. 7
  • 9. Purchase DecisionFinally the action taken by me was purchasing Nokia 3120. The mobile store had am offer of gettinga hand free on every purchase but some how that model was not available with them. i waited forfew days and then I finally bought the mobile from e store. Although that hands free offer was notavailable but that was urgency since I was not able to avoid the need of having a mobile.Post Purchase BehaviourAm using the mobile since past 2 months and till now am quits content with my decision. Its workingpretty well and is apt for me. 8
  • 10. 2Mobile Industry in IndiaWith rapid consumerism sweeping the country, India has emerged as the second largest mobilehandset market, poised for explosive growth by 2007. The major drivers for growth have been thedemand and also the existence of companies providing the most technologically advanced handsetsat justifiable prices. The technological developments have been the driving factor for the increasingdemand graph. The mobile handset market in India is estimated to be worth Rs.8.05billion (US $2billion) as of2004/05 and will surge by 62% with approximately 100-million subscribers nationwide by 2007. It isalso learnt that the Indian mobile subscribers are willing to pay for upgrades, value-based services,and advanced models that provide better services.There has been a growth in the mobile handset market in India and the demand is increasing withthe increasing tele-density. The market is overloaded with the number of mobile handset providersdue to which the customer is able to bargain for a reasonable price for the mobile. The variousplayers are Nokia, Samsung, Motorola, Sony Ericsson, Alcatel, Panasonic, Siemens, BenQ, Mitsubishi,Philips ,NEC ,Sagem ,LG ,Sharp, Sendo, Innostream, Pantech, VK Mobile, Palm, O2, i-mate, Qtek,BlackBerry, Haier, Bird, Eten, HP and XCute.Dominated largely by Nokia with a total market share of 60%, followed by Samsung (14%) andMotorola (7%) respectively, Indian mobile handset market is currently catering to 45 millionsubscribers (June 2005).Recent records show that Indian GSM cellular user base has grown from 43 million, as estimated inMay, to 45 million in June 2008, representing a growth of 3.50% in the month under review,witnessing large and propitious foreign investors flooding the market eyeing for large chunks.In addition, recent changes imbibed in the government policies that price mobile handsets at a lowerend with flexible custom-duty for new entrants are startling the market with multiple models largely 9
  • 11. aimed to higher and middle-income groups. Industry sources, though, view the market to be at itsnascent stage, many large EMS (Electronic Manufacturing Services) companies are seriouslyconsidering setting up their handset facilities in India.MAJOR PLAYERSNokiaA world leader in mobile communications, Nokia has established itself as the leading preferredbrand in many markets. Backed by its experience, innovation, user-friendliness and secure solutions,Nokia is the worlds leading supplier of mobile phones, fixed, mobile and IP networks. Nokia offers aline of versatile business phones incorporating mobile voice, mobile messaging, email solutions andbusiness-critical applications and all the latest applications to meet the needs of different usergroups.SamsungSamsung manufactures leading models in all segments of the mobile handset market. Thecompanys aim is to launch a slew of mobile phones with unique features that satisfy differentcustomer and market segments. Samsungs key insight is that apart from technology andfunctionality, a critical factor for generating customer preference would be glamour andinnovation. Innovation is just one of the things that have kept Samsung at the top of the mobilemarket. The conglomerate has made great strides in customer satisfaction through a strong localpresence via a dual partner distribution strategy. It has an all-pervasive supply chain that deliversgreater value to over 5,000 sales points and retailers.MotorolaMotorola offers market-changing icons of personal technology - transforming the device formerlyknown as the cell phone into a universal remote control for life. A leader in multi-mode, multi-bandcommunications products and technologies, Mobile Devices designs, manufactures, sells andservices wireless subscriber and server equipment for cellular systems, portable energy storageproducts and systems, servers and software solutions and related software and accessory products. 10
  • 12. Sony EricssonTheir mission is to establish Sony Ericsson as the most attractive and innovative global brand in themobile handset industry. Their latest technological applications make them stand at the forefront ofinnovation.[Annexure 1] 11
  • 13. 2Market Research on Consumer BehaviorPURPOSE OF STUDYThe purpose of the study is to find the Consumer Buying Behavior of Mobile HandsetsSCOPE OF STUDYThere are more than 28 Brands of Mobile phones available ion the market. Within each brand thereare various models, each with different attributes and functions. This research will open the doors ofthe consumer buying behaviour of a mobile handset.RESEARCH OBJECTIVETo find the Consumer Buying Behavior of Mobile HandsetsRESEARCH DESIGNThis is a Descriptive Market Research. This research will explore the consumers’ behavior towardsbuying a mobile handset. 12
  • 14. 3Research MethodologyDATA COLLECTIONThe secondary data study gave us insights on understanding consumer buying behavior and variousconcepts on purchase of mobile handsets.Primary data will be collected through QuestionnaireSAMPLINGWe have used the Convenience Sampling Method. The primary sample of 100 in which 50 wereworking professionals and the rest 50 are students.From our sample size we came to understand that mobile handsets which came up with latesthandsets would be preferred by students and the younger segment of the working professionals.However in case of working professionals over the age 35 give more priority to handsets whichprovide maximum utility and a very sophisticated look.HYPOTHESESTo further prove our analysis we had taken three hypotheses into consideration which proved vitalin understanding the buying behavior of mobile handsets and the preference for the purchase ofmobile handsets. To prove the hypothesis, two different statistical tests were used, Z-test and Chi-Square test. A test survey was conducted for the assumptions made in Chi-Square and Z-test.Through the entire process of our study we also came to understand the brand preference and thebrand recall of Nokia is higher as compared to the rest in the mobile handset industry in India. 13
  • 15. 4AnalysisUNDERSTANDING CONSUMER BEHAVIORLet us begin with the foremost reason why consumers buy a particular mobile handset. The word isout and it’s simple, “Consumers buy a particular handset more for its utility than for its aesthetics….”We found that about 76% expect maximum utility out of the cell phones. According the samplepopulation we find that almost 80% of the sample size expects value for money. There was anotherset of population, which expected hedonic aspects the reason being external appearance being ofcore importance.[Annexure 2]Major InfluencersThe purchase of any product gets influenced by different factors which might range from a group ofpeople insisting to buy the product to the promotional schemes luring the consumers to make thepurchase.The adjacent exhibit shows us the various influencers in a radar or web format with the center pointhaving the least percentage i.e. 0 % and increasing upwards along each strand in the web.If you observe, friends and family play a important role in influencing a student in buying a handsetwhereas, the working professionals get more influenced by promotional offers and advertisements.Surprisingly, unlike what many would have assumed, distributor does not play any role in buying ahandset as none of the respondents from either of the groups believe distributor can influence themto buy a handset. [Annexure 3] 14
  • 16. The Possible Reason here could be that, because students still do not have the purchasing power intheir hands, whether to buy a new mobile handset or not largely depends upon how much theirfriends insist them for buying it and how much the family supports them in making the actualpurchase. Whereas, for a working professional, though friends and family do influence to someextent, their major influence is promotions and advertisements considering which they can decideon their own whether to go for a handset or not.[Annexure 4]Influential FactorsAgain, if we try and study the factors that influence the most in the purchase of a handset, we findthat for both the groups, cost and features hold important place, followed by brand name and otherfactors such as service centers available and the resale value they can get from a particular brand.The only minor difference here is that, in case of students, cost is the most important factor withalmost 40% picking this option followed by features. Whereas, for professionals features stand outmore important (42%) than cost.So if a company wants to target a group of people to make a shift from their current handset to theirbrand, it should focus more on reducing cost and improving its features as these are the two mostimportant factors people would consider while buying a mobile handset.Now, to consider, why would people want to shift from their current handset to another one. Theprobable reasons to shift from one brand of handset to another are up-grading to a new technology,unhappy with the current handset, lost or damaged or any other reasons. When asked to a group ofworking professionals and non-earning students, the responses from both groups were similar withonly minor differences. While a major percentage (68% for professionals and 52% for students) inboth groups agreed that they would shift to another handset just for up gradation, many studentsalso believed that the reason to shift from one handset to another is only because of the loss ordamage of the current one.But considering Up-gradation is still the number one reason within both groups, handset companiescan concentrate on upgrading their handsets and become more competitive to the other brands inthe market. This would certainly help them, to some extent, in shifting brand loyalty fromcompetitive brands to their own handsets. [Annexure 5] 15
  • 17. Promotional SchemesPromotional schemes and discounts are considered a very important factor in shaping the buyingbehaviour of consumers. But do promotional schemes play a role for mobile handsets? The answerto this could be dicey. When asked a 100 people whether they would post-pone or pre-pone theirdecision of buying a handset if they knew a promotional scheme was on the way, most respondents(almost 44%) gave a negative nod to it. And only 24% said they would definitely wait and make useof the promotional scheme. A large number, almost 32% also said that it would depend how far ornear the time is to make use of the promotional discounts. If it is quite near, say 1-2 months away,they would wait for it or else just buy whenever they feel the need.If we get carried away by the 44% figure and say that promotional schemes are probably notimportant for handsets, we might be being very pessimistic. This result also shows the importance ofhaving a good promotional scheme and the importance of timing in launching promotional schemes.If the promotional scheme is good enough and launched at regular intervals most people (56% -adding 24% and 32%) would want to wait for it and make use of it.And finally, consumers tend to shift to newer technology over the years and would want to upgradeto a new model due to newer technology available. Also we found that a major proportion ofpopulation tends to shift to newer models in less than 2 years.[Annexure 6, 7] 16
  • 18. UNDERSTANDING BRAND PREFERENCECurrent HandsetAcross the mobile handset industry in India we find that Nokia has been the most dominant player inthe industry in the Indian market and boasts of a market share of 75%. The below exhibit gives aclear picture of the share of handset brands within the respondents participated in our research.Nokia is a straight winner with almost 73 % of the respondents currently using Nokia. This furtherproves the overall market share of Nokia handsets in India. Other brands such as LG, Sagem, BenQ,etc together hold the second position with 11%, followed by Samsung, Sony Ericsson and Motorola.[Annexure 8]Brand RecallOur research tried to study the most recalled brand of handset in the minds of consumers, and theresult, as would look obvious was Nokia, with almost 95% recalling Nokia. When asked which, is thenext brand that they were able to recall, Samsung was a close fighter, being the second mostrecalled brand with almost 34% respondents mentioning the brand.Semantic DifferentialSemantic Differential is a tool used to compare two of more brands along different parameters. Ascan be seen in the following exhibit, Nokia gets full marks for all the parameters whereas the otherbrands are only little behind with Sony Ericsson and Motorola getting almost similar scores alongthree parameters. However, Motorola can work a little better on its distribution network. Probably itcan come out with more service centers or better service facilities within its service centers.The following exhibit shows bi-polar scaling for 4 different parameters on a rating of -2 to 2, -2 beingthe least preferred and 2 being the most preferred.[Annexure 9] 17
  • 19. Strength Character AnalysisStrength Character Analysis is used to measure the hold of the brand in the market and the positiveimage for a brand in the market. The Strength criterion is measured in the following way.If a 100 people are asked to mention any brand they can recall, then the Strength of the brand wouldbe No. of Mentions Strength = * 100 No of RespondentsThe Character criterion is measure in the following way.If a 100 people are asked to mention any brand that they think is having a particular goodfeature/factor, then the Character of the brand would be, No. of Positive Mentions Character = * 100 No of MentionsLet us do the Strength Character Analysis for the brand Nokia which is supposedly the most strongbrand amongst all other brands of handsets.When 100 respondents were asked to mention any brand that they could recall, around 95 peoplementioned Nokia and only 5% mentioned other brands.Hence, Strength = (95 / 100) * 100 = 95 % 18
  • 20. When the 100 respondents were asked to mention any brand which they thought were costeffective and gives maximum features, around 85 respondents mentioned Nokia and remainingmentioned other brands.Hence, Character = (85 / 95) * 100 = 89%We now try and plot Nokia in the Strength Character Matrix. In both, Strength and Character, Nokiahas high values, so it falls in the lower-right box. And the strategy suggested in the same, is toMaintain. Nokia should try and maintain its strategies so that its position in the market remainsstable and doesn’t fall. STRENGTH CHARACTER Low High Low Lie Low Change Image High Gain Attention Maintain 19
  • 21. OTHER OBSERVATIONSCurrent Handset v/s Preferred HandsetThe below given exhibit has linked the current handset usage to what the consumers would prefer inthe future. Most respondents want to shift to Nokia in the future irrespective of what they are usingright now, say Samsung, Sony Ericsson, Motorola or others.An interesting observation here is, among the current users of Sony Ericsson, there are around 18%want to stay with the same brand while the remaining want to shift to Nokia. Surprisingly, there isalso a group of Nokia users (around 12-15 %) which wants to shift to Sony Ericsson as their nexthandset. 100 90 80 70 % O f R e s p o n d e n ts 60 50 40 30 20 Pre f e rre d Ha n d s e t 10 N o ki a 0 S o n y E ri c sso n S a m su n g N o ki a O t h e rs S o n y E ri c sso n M o t o ro l a Curre nt Han ds etDemand for Nokia has been great in the Indian market and seems will be quite good in the future aswell. But players like Sony Ericsson if become more aggressive, which, though sounds far fetched,can pose a problem to Nokia. 20
  • 22. Linking Consumer Behavior to Brand PreferenceIt is said that there is a direct relationship between Consumer Buying Behaviour and the brand thatthey prefer. This was further proved from one of the results of our study. When the influentialfactors in buying a brand were linked to the preferred brand by consumers, certain interesting factscame out.Out of the 100 who said cost is the most important factor they consider while purchasing a handset,almost 85% preferred the brand Nokia followed by Sony Ericsson. This shows Nokia sells itself at theright price and therefore cost-conscious people prefer Nokia. 100 90 80 70 % O f R e s p o n d e n ts 60 50 B r a n d P r e fe r e n c e 40 O th e r s 30 M o t o r o lla 20 S o n y E r ic s s o n 10 0 N o k ia Cost R e s a le V a lu e S e r v ic e C e n te r s F e a tu r e s B rand Nam e Im p o r ta n t F a c to rSimilar is the case for other factors such as Features, Resale Value, Brand Name and Service Centersavailable. Nokia is preferred in almost all cases. This shows the strength of the brand in all thesefactors which has been possible because of the time it has spent in the market and the experience ithas gained about the consumers in the market.Interestingly, the second brand in line after Nokia for Resale Value is Motorola i.e., out of 100 peoplewho are influenced by resale value while purchasing a brand, around 65% prefer Nokia and theremaining 35% prefer Motorola. 21
  • 23. HYPOTHESISResearch Question 1Who influences the consumer the most while taking a purchase decision?Hypothesis: 1H0: p0 ≥ 0.5 i.e. 50% of the population is influenced by friends and family while purchasing a mobilehandset.H1: p1 i.e Less than 50% of the population is influenced by family and friends while purchasing ahandset. Particulars ValuesTherefore it is a Two Tail Test. n 100Applying Z test using SEP p (claim) 0.5 q 0.5 P 0.53 SEP 0.05 Z-cal 0.6 Z-tab 1.645A test survey was carried out before the main survey and as per the results; “p” is assumed to be 0.5.Since Zcal<Ztab, we accept H0 i.e. more than 50% of the population are influenced by friends andfamily while purchasing a mobile handset.Our research also showed that 21% is influenced by advertisement and 26% by promotionalschemes. Out of the people influenced by promotional schemes most of them are workingprofessionals. 22
  • 24. Research Question: 2What are the most important factors for a consumer while taking a purchase decision?Hypothesis: 2H0: p0 ≥ 0.5 i.e. 50% of the target population consider cost and features as important factors whilepurchasing a mobile handset.H1: p1 i.e. less than 50% of the target population consider cost and features as important actorswhile purchasing a mobile handset.Therefore it is a Two Tail Test.Applying Z test using SEPA test survey was carried out before the main survey and as per the results; “p” is assumed to be0.75. Particulars Values n 100 p (claim) 0.75 q 0.25 P 0.79 SEP 0.043301 Z-cal 0.92376 Z-tab 1.645Since Zcal<Ztab, we accept H0 i.e. for more than 50% of the population cost and features areimportant factors while purchasing a mobile handset.Our research also showed that 14% of the population considers brand name most important whilepurchasing a mobile handset most of which constitutes college going students. 23
  • 25. Research Question: 3Is there a relationship between occupation of a person and features of a mobile handset?Hypothesis: 3H0: There exists no relationship between occupation of a person and features of a mobile handset.H1: There exists a relationship between occupation of a person and features of a mobile handset.Applying Chi-Square Test, the results are as follows, (O- Occupation OBSERVED EXPECTED (O-E)2 E)2/EFeatures Students Professionals TotaltTotal 38 41.69 13.6 0.33Outlook 38 37 75 33 32.24 0.58 0.02Voice 33 25 58 36 37.8 3.23 0.09Display 36 32 68 107 102.28 22.32 0.22Functions 107 77 184 37 41.69 22 0.53Total 214 171 385 25 32.23 52.27 1.62 32 37.8 33.64 0.89 77 102.27 638.57 6.24 2Χ CAL 9.93Χ2TAB 7.815Since Χ2CAL> Χ2TAB we reject H0.Therefore there exists a relationship between occupation and features of a mobile handset.Our studies showed that the working professionals were not much concerned with cell features incomparison with college going studies. As per our research most of the professionals in the agegroup 35 and above preferred a mobile phone with fewer features. This could be because mobileswith few features are less complicated .It is also a fad for students to posses a mobile with morefeatures. 24
  • 26. 5RecommendationsThe survey and analysis that we have conducted has brought out certain interesting facts and giveninsights into the buyer behaviour in case of mobile handsets. Using these insights we suggest a fewrecommendations to the handset brands to beat the ever-winning brand Nokia and a fewrecommendations to Nokia on how it can maintain its position in the market.How Can You Beat Nokia ?Focus On Product & PriceIn the analysis we found the major influential factors are Cost and Features while purchasing amobile handset, with more than 40 % people mentioning it as the major influential factors. Cost andFeatures are parameters of Price and Product respectively. It is recommended that companiesconcentrate more on developing these two “ P’s ” and spend more time on enhancing their productsat offer it at lower prices which can be done by employing cost-reduction measures.Be a Technology Driven CompanyWhen asked if they would upgrade to a new handset due to this innovative technology, a majority of70% people gave a positive nod. This implies that people attracted towards newer technology andwill be able to shift from one handset to another if it uses better technology. Brands such as SonyEricsson, Samsung, LG can dream of catching up with Nokia if they put more efforts on improvingtheir technology. They can spend more in R&D and less on promotions which would help them indeveloping innovative products which would sell itself without much promotion.Utility more important…Aesthetics come second… 25
  • 27. A whopping 76% said they would buy a mobile handset for the utility it provides rather than for itsaesthetics. Even in the Product, companies should concentrate more on the internal features, i.e.functions it can offer rather than the display or color of the handset. Nokia as placed itself as thebrand which offers maximum features in reasonable prices. So if you want to reach Nokia’s position,this is one focus area the companies can consider to work upon.How Can Nokia Maintain Its Position?As we have seen in the Strength – Character Analysis, Nokia is a very strong brand and lies in acomfortable position as of now. Nokia is already a market leader. But it needs to hold its position inthe market. In one of our analysis, we found that some of the users of Sony Ericsson want to staywith the same brand and few other users who were using different brands such as Motorola,Samsung wanted to shift to Sony Ericsson. To fight players such as Sony Ericsson, Nokia has tomaintain its present strategies or else they might become a threat in the future. 26
  • 28. 6ConclusionThis project has helped us in understanding the behavior of consumers towards mobile handsets andwhat they prefer in different brands.Nokia stands out as a clear winner. It is because of the experience it has in the market. Handsetbuying is a high involvement product wherein the consumer wants to know from different sourcesabout brands, though Nokia is the first name that comes to their minds.Word of mouth plays an important role in such products and therefore it is important for theproduct to be of important quality.Companies should therefore concentrate more on developing the first P and make it available atreasonable and reachable prices.So the product itself becomes the promotion for the brand……. 27
  • 29. Bibliography & WebliographyBIBILIOGRAPHY MARKETING MANAGEMENT –BY PHILIP KOTLER CONSUMER BUYING BEHAVIOUR- MARKET RESEARCH-NARESH MALHOTRAWEBLIOGRAPHY www.nokia.com www.samsung.com www.sonyericsson.com 28
  • 30. Annexure Annexure 1 MARKET SHARE OF MAJOR MOBILE HANDSET PLAYERS 7% 2% 10% NOKIA SAMSUNG 7% MOTOROLA SONY ERICSSON 60% 14% LG OTHERS Annexure 2 Preferred Aspects Aesthetic 24% Utilitarian 76% 29
  • 31. Annexure 3 Major Influencers Friends 30 20 Promotion 10 Family 0 Students Professionals Distributor Advertisements Annexure 4 Reasons To Shift 100 80 68% U sers 60 52 40 32 14 20 8 8 14 4 0 Upgradation Unhappy Lost/Damaged Others Reasons Students Professionals 30
  • 32. Annexure 5 Influential Factors 100 80 Cost% Users Features 60 40 42 40 36 Resale Value 40 16 Brand Name 12 20 6 4 2 Service Center 2 0 Students Professionals Segments Annexure 6 UPGRADATION DUE TO TECHNOLOGY 100 70 80 % USERS 60 30 40 20 0 yes no RESPONSES 31
  • 33. Annexure 7 PRE/POSTPONING DECISION DUE TO PROMOTIONAL SCHEMES 100 80 % USERS 60 44 32 40 24 20 0 yes no depends RESPONSES Annexure 8 CURRENT HANDSET USERS 100 90 80 73 70% USER 60 50 40 30 20 11 9 6 10 1 0 samsung sony ericsson nokia motorola others BRANDS 32
  • 34. Annexure 9 -2 -1 0 1 2User Friendly -2 -1 0 1 2 Cost -2 -1 0 1 2Distribution -2 -1 0 1 2Brand Image Sony Ericsson & Nokia Samsung Motorola ***** 33