PowerPoint presentation detailing the methods and findings for Marketing Research Project on College Student Mobile Phone Market.

1. Analysis of College Smart Phone
Market
Kris Andaas
Dustin Fontenot
Ryan Friedkin
Spencer Namnoum
Blake Yancey

2. Table of Contents
• Executive Summary
• Research Purpose
• Research Objectives
• Survey Findings
• Recommendations
• Summary of Key Findings
• Limitations of Study

3. Executive Summary
• The motivation of this research is find out whether
there is a market at SMU for a new smart phone
specially designed for college students: Smart Phone
CS, as well as a market for separate phone models for
male and females: Smart Phone CSM and CSF.
• The purpose of this research is explore ways of
successfully designing and launching a smart phone for
male and female college students.
• This research is based on the findings from a sample of
249 SMU students.

4. Research Objectives/Questions
• What percent of college students own smart
phones? Is there a relationship between
ownership of smart phones and gender?
• In general, what brand (manufacturer) of cell
phone do students currently possess?
• Where did they purchase the cell phone
(manufacturer store, carrier store etc.)?
• What price did students pay for their cell phone?
Is there a difference in price paid between males
and females?

5. Research Objectives Cont’d
• Did they avail/ make use of a rebate or discount
when purchasing? If so, is there a difference
between males and females?
• What is the extent of use of various cell phone
features? Does the usage differ between males
and females?
• How important are various cell phone
characteristics – does the importance vary by
gender?
• How satisfied are male and female students with
their current cell phones on these characteristics?

6. Research Objectives Cont’d
• What percent of males and females would be on
the cell phone market in the next three years?
• What factors and features are important in their
next phone purchase – for males and females?
• What app categories they (males and females)
would like for their current or next phone
purchase?
• What prices are students willing to pay for a
phone that meets their needs? Is there a
difference between males and females?

7. Research Objectives Cont’d
• Where (which locations) are students likely to
purchase a cell phone on campus?
• What, according to students, are the best
ways to communicate information about
mobile phones?

8. Objective 1: Smart Phone Ownership
• 99% of respondents own a smart phone
• 7% more men own smart vs. basic phones
than women
82 (92%) 7 (8%)
142 (85%) 26 (15%)
Male
Female
Smart
Phone
Basic
Phone
= 89 total
= 168 total

9. Objective 2: Brands
63%11%
10%
9%
7%
Sales
Apple
Samsung
HTC
RIM
Other
N = 263

10. Objective 2: Brands Cont’d
• Apple controlled 63% of the market
• Men and women own approximately the same
proportion of Apple smart phones
• 55% of respondents that named a specific model
listed the fourth generation Apple iPhone (iPhone 4
or 4s)
• Of that 55%, 70% were female and 30% were male (note:
more women than men took the survey)

11. Objective 3: Where Students
Purchased Smart Phones
- The Majority of students, 64 percent, purchased their cell phone
from the Carrier’s store (i.e., Verizon, AT&T, etc.)
64%
16%
7%
13%
Sales
Carrier's store (AT&T,
Verizon etc..)
Manufacturer's store
(Apple, Samsung etc.)
Online / Internet
Other
N = 262

12. Objective 4: Price Paid
0
10
20
30
40
50
60
$0 to $50 $51 to $100 $101 to $150 $151 to $200 $201 to $250 Over $250 not sure / don't
know
16%
10%
12%
23%
14%
16%
10%
Males and Females
• Most students reported spending between $151 to $200 on their
smart phone purchase
• Interestingly 10% of respondents didn’t know how much their
phone cost

13. Objective 4 Cont’d: Price Paid
0%
5%
10%
15%
20%
25%
$0 to $50 $51 to $100 $101 to
$150
$151 to
$200
$201 to
$250
Over $250 Not Sure /
Don't Know
15%
9%
8%
20% 20%
18%
10%
17%
10%
14%
24%
11%
15%
10%
Men vs. Women Male
Female
• Median price paid by men and women is $151 - $200
• Mode range price paid by men is $151 - $200 and $201 to $250 / women is $151 - $200
• Mean price paid by men is between $167.90/ women is $151.05

14. Objective 5: Rebate/Discount
• 58% of respondents used a form of rebate or
discount
• There was no significant difference between
females and males usage of such a promotion

15. Objective 6: Feature Usage

16. Objective 6 Cont’d: Males
100%
93% 93% 92% 92% 90%
81% 80% 80%
62%
47%
42%
0%
20%
40%
60%
80%
100%
120%
Text
Messages
Web
Browsing
Camera -
Pictures
Alarm Clock Calendar Global
Positioning
System
(GPS)
Music Player Camera -
Video
Other Video Chat MiFi
(Wireless
Hotspot)
Bluetooth
Features Used by Males Greater than Once a Month

17. Objective 6 Cont’d: Females
99%
96% 96%
90% 90% 89% 87%
81%
73%
66%
55%
30%
0%
20%
40%
60%
80%
100%
120%
Text
Messages
Camera -
Pictures
Alarm Clock Web
Browsing
Other Global
Positioning
System
(GPS)
Calendar Music
Player
Camera -
Video
MiFi
(Wireless
Hotspot)
Video Chat Bluetooth
Features Used by Females Greater than Once a Month

18. Objective 6 Analysis
• Both males and females listed that text
messaging was the most used feature on their
phone.
• They also agreed that Bluetooth was the least
used feature on their phone, although 12
percent more males (42 percent) used this
feature than females (30 percent).

19. Objective 7: Importance of Features
Attribute Mean Importance CI @ (95%)
Battery Life 6.38 6.2-6.56
Phone Size 5.45 5.18-5.72
Speaker Phone 4.9 4.62-5.18
Camera 5.36 5.07-5.65
Video Capability 4.99 4.66-5.32
Internet Connectivity 6.27 5.98-6.56
Playing Games 4.48 4.1-4.86
Download/Play Music 5.25 4.85-5.65
Email 6.1 5.81-6.39
Speed of Connectivity 6.07 5.78-6.36
Text Messaging 6.67 6.50-6.84
Personal Digital Assistance 4.56 4.14-4.98
GPS 5.62 5.3-5.95
Males
Attribute
Mean
Importance CI @ 95%
Battery Life 6.496.37-6.61
Phone Size 5.385.17-5,59
Speaker Phone 5.24.96-5.44
Camera 6.246.08-6.40
Video Capability 5.214.95-5.47
Internet Connectivity 6.426.22-6.62
Playing Games 4.133.84-4.44
Download/Play Music 5.385.11-5.66
Send E-mail 6.135.91-6.35
Speed of Connectivity 6.436.26-6.60
Text Messaging 6.866.80-6.92
Personal Digital Assistant 4.324.03-4.61
Global Positioning System (GPS) 5.765.53-5.99
Females

20. Objective 7 Cont’d: Gender Differences
Analysis
• Both males and females ranked text messaging and
battery life as the most important features
• Both males and females ranked playing games as the
least important feature, although the mean rank by
males was higher (4.48) than with females (4.13)

21. Objective 8: Consumer Satisfaction

22. Objective 8 Cont’d: Gender Differences-Males
3.5
4
4.5
5
5.5
6
6.5
7
7.5
3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5
MeanSatisfaction
Mean Importance
Low Importance, Low Satisfaction
Strategy: Ignore?
Features: None
High Importance, Low Satisfaction
Strategy: Invest or Improve
Features: Battery Life
High Importance, High Satisfaction
Strategy: Maintain or Invest
Features: Connectivity, E-Mail, Internet, Texting
Low Importance, High Satisfaction
Strategy: Maintain or Divest
Features: Games, Personal Digital
Assistant, Speaker Phone, Video, Music,
Camera, Phone Size, GPS

23. Objective 8 Cont’d: Gender Differences-Male
0
1
2
3
4
5
6
7
5.29
5.97
5.63
5.91
5.7
5.99 5.89 5.97
6.33
5.82
6.56
5.92 6.01
6.38
5.45
4.9
5.36
4.99
6.27
4.48
5.25
6.1 6.07
6.67
4.56
5.62
Mean Importance and Satisfaction of Features (Male)
Satisfaction
Importance

24. Objective 8 Cont’d: Gender Differences-Females
5.1
5.3
5.5
5.7
5.9
6.1
6.3
2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5
MeanSatisfaction
Mean Importance
Low Importance, High Satisfaction
Strategy: Maintain or Divest
Features: None
High Importance, Low Satisfaction
Strategy: Invest or Improve
Features: Connectivity, Battery Life
High Importance, High Satisfaction
Strategy: Maintain or Invest
Features: Video, Speaker Phone,
Music , Phone Size, GPS, E-Mail,
Camera, Internet, Texting
Low Importance, Low Satisfaction
Strategy: Ignore?
Features: Personal Digital Assistant,
Games

25. Objective 8 Cont’d: Gender Differences-Female
0
1
2
3
4
5
6
7
5.43
6.17 6.1 6.02
5.82 5.91
5.62
5.91
6.09
5.66
6.34
5.44
5.91
6.49
5.38
5.2
6.24
5.21
6.42
4.13
5.38
6.13 6.43
6.86
4.32
5.76
Mean Importance and Satisfaction of Features (Female) Satisfaction
Importance

26. Objective 8: Consumer Satisfaction
Analysis
• Both males and females ranked texting as the
feature they were most satisfied with.
• Both males and females ranked battery life as
the feature they were least satisfied with.
• Females ranked connectivity as the second
feature they were least satisfied with.

27. Objective 9: Future Market
Total (Males and Females)
Males
Females

28. Objective 9: Future Market
82%
18%
Males
Yes
No
N=89
85%
15%
Females
Yes
No
N=168
• Approximately 82% of Males and 85% of Females said they will be in the
market for a new smart phone within the next 3 years

29. Objective 10: Attribute Determinants
of Future Purchase

30. Objective 10 Cont’d: Female vs. Male
0%
10%
20%
30%
40%
50%
60%
70%
80%
Manufacturer/
Brand name
Price
Phone Features
Speed of
Internet
Connectivity
Carrier Name
31%
41%
77%
28%
23%
42%
38%
77%
34%
8%
Percent of Student that Assigned Top 2 Ranks
Percent of Female Student that
Assigned Top 2 Ranks
Percent of Male Student that
Assigned Top 2 Ranks
Both males and females assigned Top 2 Ranks to Phone Features

31. Objective 10 Cont’d: Features in Next
Phone Purchase
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
78%
14%
45%
75%
63%
87%
45%
59%
87%
62%
99%
44%
69%
21%
61%
48%
25%
32%
13%
37%
30%
13%
38%
1%
31%
27%
Males Must Have
Prefer to Have
For males, the highest must have preferences are Text Messaging, Internet Connectivity, and
Email Capabilities. The highest prefer to-have qualities are relative small phone size and speaker
capabilities

32. Objective 10 Cont’d: Features in Next
Phone Purchase
0%
20%
40%
60%
80%
100%
79%
28%
58%
86%
60%
85%
35%
57%
78%
74%
96%
30%
71%
21%
53%
37%
12%
33%
12%
44%
33%
16%
23%
4%
39%
24%
Females Must Have
Prefer to Have
For females, the highest must have qualities are Text Messaging, Camera, and Internet
Connectivity. The highest prefer-to-have qualities are Small Phone Size and Speaker
Phone

33. Objective 10 Cont’d
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
78%
14%
45%
75%
63%
87%
45%
59%
87%
62%
99%
44%
69%
79%
28%
58%
86%
60%
85%
35%
57%
78%
74%
96%
30%
71%
Must Haves: Males vs. Females
Males' Must Haves Females' Must Haves
Both males and females rank text messaging as one feature they must have on their next phone

34. Objective 10 Cont’d
0%
10%
20%
30%
40%
50%
60%
70%
21%
61%
48%
25%
32%
13%
37%
30%
13%
38%
1%
31%
27%
21%
53%
37%
12%
33%
12%
44%
33%
16%
23%
4%
39%
24%
Prefer to Have: Males vs. Females Males' Perfer to Have
Females' Prefer to Have
Both males and females prefer their next phone to be smaller in size.

35. Objective 10 Cont’d: Phone Type, Orientation,
& Keyboard Preferences
0%
10%
20%
30%
40%
50%
60%
70% 66%
4%
10%
21%
8%
43%
40%
8%
44%
28% 28%
61%
2%
10%
27%
6%
34%
50%
10%
55%
18%
28%
Males vs. Females Males
Females
Both males and females prefer a bar phone, with horizontal orientation and a
flat keyboard.

36. Objective 11: App Preferences Male
88%
83% 82% 81%
77%
67% 65%
63%
58% 56%
44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Percentage of Surveyors Wanting Application
Percentage of Surveyors
Wanting Application

37. Objective 11: App Preferences Female
Percentages of Female Surveyors Wanting Specified Applications
91% 90% 88%
80%
74% 73%
66%
56%
44%
39%
28%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
App Preferences (Female)
Percentage of
Surveyors Wanting
Application

38. Objective 11: App Preferences Analysis
• For specified apps on their next phone, the
top 3 applications desired by males were
Navigation, Weather, and Music
• Females preferred Weather, News, and Books.
• Both Weather and Navigation can be
considered must haves, being in the Top 4 for
both male and female students.

39. Objective 12: Price for New Phone
Taking all responses, male and female, we can see that the average amount college students
were willing to spend on a new cell phone was $224.08 with deviating values ranging from
approximately $124.00 to $324.00

40. Objective 12 Cont’d: Gender
Differences
Males were willing to pay $43.07 more on a new phone than females. We also
see that the lowest value for the Male Confidence interval at 95% is still higher
than the highest value Female surveyors were willing to pay for a cell phone.
Mean Price
Willing to Pay for
Females
Female CI @ 95%
209.76 193.57 225.95
Mean Price
Willing to Pay for
Males
Male CI @ 95%
$252.83 228.63 277.03
Male Surveyors: n=72 Female Surveyors: n=143

41. Objective 13: Location of Future
Purchase
- Over fifty percent of students were in agreement that Hughes-Trigg
student center is the most likely place on campus that they would
purchase a cell phone.
- A quarter of the students surveyed said they would most likely purchase
at the Barnes and Noble book store on Mockingbird
54%
25%
9%
7%
3% 2%
0%
10%
20%
30%
40%
50%
60%
Hughes Trigg Student
Center
Barnes and Noble book
store
SMU College website Near dining areas on
campus
Kiosk near Fondren
library
Other, please specify
Best Locations for Cell Phone Purchase (On Campus)
Percentage of Surveyors Agreeing on Cell Phone
Purchase Location (n=210)

42. Objective 14: Best Method of
Communication
3%
18%
21%
27%
28%
35%
41%
68%
81%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Other, please specify
Student orientation sessions
Ads in campus publications such as Daily Campus
or Hilltopics
Flyers on campus
Big banners on campus
Bulk email to students
Manufacturer sponsored student event
Word of mouth / viral marketing
Facebook or other social media websites
Ways Cell Phone Manufacturers Would Be Beneficial in Delivering
Information To Students On SMU Campus
Percentage of Surveyors Believing Means of
Information Would Be Beneficial

43. Objective 14: Best Method of
Communication Analysis
• Over 80% of the student said that social media
websites (e.g. Facebook) were the best way to
advertise a new phone.
• Roughly 70% of the student said that viral
marketing (e.g. YouTube) or Word of Mouth
was the best.

44. Summary of Key Findings &
Recommendations
• Over 80% of both male and female participants currently attending
SMU are looking to purchase a new phone within the next 3 years.
With cell phone technology continually improving and cell phone
users choosing to purchase new phones more frequently, we can
infer that there is a demand for cell phones in the college market
within the next few years.
• 80% of respondents said that they believed the best method of
advertising was with social media tools
• 70% of respondents also believed viral marketing was an effective
means of advertising to college students
• With a high preference towards battery life, we could potentially
offer a phone with better battery life by removing features that
both males and females agreed they do not care about or investing
in developing either more efficient hardware (e.i. processor) or
more powerful batteries

45. Summary of Key Findings Cont’d
• Utilize cloud storage to maximize performance and data storage
while potentially shrinking size or device, weight, battery use, etc.
• There are varying responses and differences between the feature
preferences of males and females. For example, in terms of
application desirability, females ranked Music in the bottom 3 while
males have it as the 3rd highest) Specifically, we would try to lower
data space by minimizing games installed on phones and removing
Bluetooth features
• Due to the low preference rating of Sports and Finance apps, rely
on outside applications to deliver the needs of these features (e.g.
Yahoo Finance, Forbes, etc.)
• With our information on cell phone design, we would recommend
research and development of a horizontally oriented bar phone
with a flat keyboard.
• Women were unsatisfied with the connectivity of their phones
perhaps a connectivity assistance (troubleshooting) app would be
worth developing

46. Summary of Key Findings Cont’d
• Because of the higher willingness to pay for males, potentially offer additional
features and apps (“Upgradeable version of phone” targeted at male college
students) that could increase our profits
• From our research we can see that internet connectivity and text messaging
(along with battery life) are the most desired features for students. Focusing on
these needs, we recommend creating a phone designed around these college
student priorities (text, email, surf the internet- facebook, twitter, etc), and
expand the speed/performance capabilities of the features pertaining to these
preferences.
• While it’s clear that the Apple Iphone is the most popular phone amongst
students, our research shows that manufacturer name, while important, is not
the biggest determinant amongst students when they purchase a phone. This
gives us an advantage because while we may not have the top brand name, our
phone offers all of the features that the Iphone does without the nagging
deficiencies like poor battery life
– Research showed that while manufacturer name was important (42% males, 34%
females), it is often not a dealbreaker when students buy phones. Meaning, a phone
designed ideally for college students could potentially grab a large share of the
market without a major brand/carrier name.

47. Summary of Key Findings Cont’d
• The important thing that college students want is the ability to access as
many additional features and applications as possible, creating an
emphasis on personalizing the individual’s phone for their specific needs.
With that said, this potential phone does not have to come fully equipped
(games, digital assistant) but have the speed and capability to add those
features at a later date
• While participants did prefer to have a smaller phone, it was not
predominantly a must-have feature. However, based on our respondents
preference for longer battery life and the ability to download applications
to their phone directly, we believe they would be willing to sacrifice data
storage for a larger phone with greater battery life.
• We found in our research that 58% of respondents used a rebate or
discount of some sort when they purchased their phone. This information
could be very key in marketing to college students and penetrating the
market and gaining market share. By offering a rebate, students may be
more willing save some money and try our phone.
• Seeing that most respondents said they planned on purchasing a new
phone in the next 3 years, setting a high price for our new phone is not
crucial to ensure profitability. If we set the price of our phone to the
lowest value of the 95% confidence interval pertaining to “price willing to
pay”, we will be able to enter the market and maintain customer loyalty
with a phone catered to college careers

48. Limitations of Study
The intent of the survey was to ascertain the potential market
for a smartphone designed and marketed specifically for
college students, the latent assumption being that the most
salient and desirable features in terms of the phones’
hardware, software, how it is sold/marketed are different for
college students than for adults, children, high-schoolers etc.
However, as we have not conducted a survey of these other
market segments it is difficult to say whether or not there is
consensus on which features are desirable and important. In
other words we are operating on an unproven assumption
(what college students want in a smart phone is different than
what other segments want). Until similar research is
conducted our conclusions, while informative, cannot be
considered conclusive.

49. Limitations of Survey Cont’d
• Survey Size (216 respondents) is relatively small and limited to one
university
• Demographic of individuals taking the survey is limited to the
researchers “immediate circle”, providing bias feedback and an
uneven distribution among college students - Students only from
SMU, 60% being female, and 70% of the participants being in their
last years of college (Junior year and above).
• No question on socioeconomic background, SMU probably isn’t the
typical university in this regard
• Low Importance Rating on Cell Phone Carrier (hard for a specific
carrier to enter to the market with a phone tailored to college
students with significant profitable impact)
• The reliability of college students to truthfully complete the survey:
we must assume the length of the survey and lack of information
could have deterred some students from completing the survey
correctly and honestly.