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CONSUMER BUYING
BEHAVIOUR OF YOUTH
TOWARDS MOBILE PHONE
Presented By

Aakash Bihani
Kavita Kumari
Shireen Sood

Sohini Bhuwalka
OBJECTIVES OF THE STUDY
Primary Objective: To study the buying behavior of mobile phone users in kolkata
Secondary Objectives:

1. To know and understand the brand preferences of mobile phone users
2. To study the usage pattern of mobile phones

3. To probe the reasons or causal factors behind the purchase of mobile phones
4. To identify the mobile phone buying decision factor
INTRODUCTION
Mobile phone has become an integral part of human daily and personal
communication across the globe
Mobile phone was developed in 1979. In India it was introduced in 1994. But it
became familiar only in the beginning of year 2000
It is a very fast point to point communication. It helps one to send and receive
information anytime and anywhere
Mobile phone plays a predominant role in the modern life because mobile phones
are used by people at all levels
With 3G mobile data networks quickly becoming reliable and affordable, we see a big shift
in the way users consume information on their handhelds
Mobile phone is a milestone that indicates success, not only financially but also culturally
in term of the integration within society

Mobile phone usages have resulted in greater electronic interactions between friends and
family at the expense of face to face interaction which has dramatically reduced
Consequently, it could be proposed that mobile phones are changing individual cultural
norms and values
RESEARCH
METHODOLOGY
Data Type – Data collection was done through primary and secondary source

Tools For Data Collection- Questionnaires were given out
Sample unit- Students of Kolkata
Sample Size- 100 questionnaires were filled
Sampling Technique- Convenience sampling method
Data Collection Method- Data for the study was collected through primary sources and
exploratory methods

Data Processing- Data was entered into MS-EXCEL sheets and analyzed graphically
Graphical Representation- Pie charts and bar diagrams are used to explain the analysis
SAMPLING
We have used convenience sampling method
The primary sample of 100 consists of students
From our sample size we came to understand that Samsung was the most
widely used brand because of its features and variety of prices
Analysis
Understanding consumer behaviour

Reason for purchase
60
Better
features, 56

“consumers buy a particular handset
more for its utility than for its
asthetics…”

50

40

30

Brand loyalty, 30

20
Price
competitiveness,
10

10

Phone reviews, 2
Attractive ads, 2

0

0
-10

1

2

3

4

5

6

We found that about 56% expect
better features out of the phone
whereas phone reviews and attractive
advertisements hardly play any role.
Understanding brand preference
Currently used brand
LG Others
2% 2%
blackberry
4%

Apple
6%
nokia
34%

samsung
36%
sony xperia
16%

Across the mobile handset
industry in Kolkata we find that
Samsung has been the most
dominant player in the industry
and boasts a market share of
36%.
Previously owned brand
Blackberry Others First phone
2%
4%
4%
Apple
4%
LG
4%

42% of the students used the
Nokia phone before switching to
the current brand.

Nokia
42%
Samsung
36%

Sony Xperia
4%
Price Range
Rs 30001 and above

6

Rs 20001-30000

6

Rs 10001-20000

40

Rs 5001-10000

38

Below 5000

10

0

5

10

15

20

25

30

35

40

45

40% of the students use phone between the price range of Rs10001-20000 whereas 6% use Rs20001
Price is important
50
Agree, 46
45

40

35
Strongly Agree, 30
30

25
Neutral, 22

The price of the phone matters to
the sample size of our research
as 47% agree.

20

15

10

5

0

Strongly Agree

Agree

Neutral
Price is important

Disagree

Strongly Disagree
Place Of Purchase
Small Online
electronic8%
shop
2%
Branded
electronic
retail store
18%
Official
exclusive
brand
outlets
12%

Others
6%

Branded
mobile
retail store
54%

Branded mobile retail store has
the major market share of 54%
when it comes to the place of
purchasing a new phone and
small electronic shops are the
least preferred place of purchase.
Frequency of changing
phone
50
45
40

35
30
25
20
15
10
5
0
0-6 months

6months-1year

1-2years

more than 2 years
Reasons for changing phone
Expiration of service
contract
4%
Maintenance and
repair problems
44%

Want more stylish
phone
16%

Want more features and
services
36%
Brand loyalty
70
45

60

40

50

35
30

40

25

30

20
20

15
10

10

5

0

0
Prefer to sticking
to current brand

Open to buy a
different brand

Not sure

Yes

Openness to a new brand

No

Don't Know
Parameters for buying a new
phone
Phone phone must be easy to use

Consideration of the operating system before
purchase

45
40

0%
6%

35

14%

30

40%

25
20

40%

15

10
5

Strongly Agree

0

Strongly
Agree

Agree

Neutral

Disagree

Strongly
Disagree

Agree

Neutral

Disagree

Strongly Disagree
Phone size matters

Screen resolution should be high
60

Strongly Disagree
50
Disagree

40

30

Neutral

20
Agree
10
Strongly Agree
0
0

10

20

30

40

Strongly
Agree

Agree

Neutral

Disagree

Strongly
Disagree
Large storage space is a necessity

Shape of the phone is important

60
Strongly Disagree
50
Disagree

40

30

Neutral

20
Agree
10
Strongly Agree
0

Strongly
Agree

Agree

Neutral

Disagree

Strongly
Disagree

0

10

20

30

40

50

60
The phone should have a touchscreen
60
50
40
30
20
10
0
Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Influence of advertisements during purchase
50
40
30
20
10
0
0

1

2

3

4

5

6
Battery back up should be good
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
0

10

20

30

40

50

60

70
CHI SQUARE TESTING
Chi-square is a statistical test commonly used to compare observed data with
data we would expect to obtain according to a specific hypothesis
The chi-square test is always testing what scientists call the null
hypothesis, which states that there is no significant difference between the
expected and observed result

The formula for calculating chi-square (chi2) is:
chi2= (o-e)2/e
That is, chi-square is the sum of the squared difference between observed (o)
and the expected (e) data (or the deviation, d), divided by the expected data in
all possible categories.
Sample size=100 ,
Confidence level=95% ,

No .of male=16 ,
Value of Z=1.96

No. of female=84

Hypothesis testing is based on whether the price of mobile phone is important
factor for buying behavior.
Sex

Price is imp. factor

Price is not imp. factor

Total

Male

14

2

16

Female

62

22

84

Total

76

24

100
R1XC1/total = 16X76/100=12.16 , R1XC2/total = 16X24/100=3.84
R2XC1/total= 84X76/100=63.84 , R2XC2/total=84X24/100=20.16
12.16

3.84

16

63.84

20.16

84

76

24

100

(O is observed frequency , E is expected frequency)
O
14
62

E
12.16
63.84

(O-E)
1.84
-1.84

(O-E)²
3.3856
3.3856

(O-E)²/E
0.278
0.053

2
22

3.84
20.16

-1.84
1.84

3.3856
3.3856

0.881
0.167
∑ (O-E)²/E=1.379
Analysis of chi square testing
• Calculated

value of (O-E)²/E=1.379

• Degree of freedom = (r-1)(c-1)=(2-1)(2-1) =1
• Tabulated value of Z= 1.96 (tabulated value > calculated value so
hypothesis is accepted.)
Hence, we concluded that price is one of the important factor for
buying behavior of mobile phone
RECOMMENDATIONS
The survey and analysis that we have conducted has brought out certain interesting facts
and given insights into the buyer behaviour in case of mobile handsets. Using these insights
we suggest a few recommendations to the handset brands to beat the ever-winning brand
SAMSUNG.

How to be on top of the game?
Focus On Product & Price
Be a Technology Driven Company
Utility more important…Aesthetics come second…
CONCLUSION
Handset buying is a high involvement product wherein the consumer wants to
know from different sources about brands, though SAMSUNG 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 the product to be of important quality
Companies should therefore concentrate more on developing the first P and make
it available at reasonable and reachable prices.
So, the product itself becomes the promotion for the brand…….
SCOPE OF THE STUDY
The available researches do not provide the proper information about

the behaviour of customers towards mobile phones. So this study is
aimed to know the awareness of mobile phones among people
among people. To study the psychology of the customers behind their
choice of mobiles.
LIMITATIONS OF THE STUDY
• The study suffers from the major limitation of obsolesce of the
information
• There is a biased opinion based upon the preference of the data

provider on the basis of his/her purview
THANK YOU!!

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mobile phone buying behavior

  • 1. CONSUMER BUYING BEHAVIOUR OF YOUTH TOWARDS MOBILE PHONE Presented By Aakash Bihani Kavita Kumari Shireen Sood Sohini Bhuwalka
  • 2. OBJECTIVES OF THE STUDY Primary Objective: To study the buying behavior of mobile phone users in kolkata Secondary Objectives: 1. To know and understand the brand preferences of mobile phone users 2. To study the usage pattern of mobile phones 3. To probe the reasons or causal factors behind the purchase of mobile phones 4. To identify the mobile phone buying decision factor
  • 3. INTRODUCTION Mobile phone has become an integral part of human daily and personal communication across the globe Mobile phone was developed in 1979. In India it was introduced in 1994. But it became familiar only in the beginning of year 2000 It is a very fast point to point communication. It helps one to send and receive information anytime and anywhere Mobile phone plays a predominant role in the modern life because mobile phones are used by people at all levels
  • 4. With 3G mobile data networks quickly becoming reliable and affordable, we see a big shift in the way users consume information on their handhelds Mobile phone is a milestone that indicates success, not only financially but also culturally in term of the integration within society Mobile phone usages have resulted in greater electronic interactions between friends and family at the expense of face to face interaction which has dramatically reduced Consequently, it could be proposed that mobile phones are changing individual cultural norms and values
  • 5. RESEARCH METHODOLOGY Data Type – Data collection was done through primary and secondary source Tools For Data Collection- Questionnaires were given out Sample unit- Students of Kolkata Sample Size- 100 questionnaires were filled Sampling Technique- Convenience sampling method
  • 6. Data Collection Method- Data for the study was collected through primary sources and exploratory methods Data Processing- Data was entered into MS-EXCEL sheets and analyzed graphically Graphical Representation- Pie charts and bar diagrams are used to explain the analysis
  • 7. SAMPLING We have used convenience sampling method The primary sample of 100 consists of students From our sample size we came to understand that Samsung was the most widely used brand because of its features and variety of prices
  • 8. Analysis Understanding consumer behaviour Reason for purchase 60 Better features, 56 “consumers buy a particular handset more for its utility than for its asthetics…” 50 40 30 Brand loyalty, 30 20 Price competitiveness, 10 10 Phone reviews, 2 Attractive ads, 2 0 0 -10 1 2 3 4 5 6 We found that about 56% expect better features out of the phone whereas phone reviews and attractive advertisements hardly play any role.
  • 9. Understanding brand preference Currently used brand LG Others 2% 2% blackberry 4% Apple 6% nokia 34% samsung 36% sony xperia 16% Across the mobile handset industry in Kolkata we find that Samsung has been the most dominant player in the industry and boasts a market share of 36%.
  • 10. Previously owned brand Blackberry Others First phone 2% 4% 4% Apple 4% LG 4% 42% of the students used the Nokia phone before switching to the current brand. Nokia 42% Samsung 36% Sony Xperia 4%
  • 11. Price Range Rs 30001 and above 6 Rs 20001-30000 6 Rs 10001-20000 40 Rs 5001-10000 38 Below 5000 10 0 5 10 15 20 25 30 35 40 45 40% of the students use phone between the price range of Rs10001-20000 whereas 6% use Rs20001
  • 12. Price is important 50 Agree, 46 45 40 35 Strongly Agree, 30 30 25 Neutral, 22 The price of the phone matters to the sample size of our research as 47% agree. 20 15 10 5 0 Strongly Agree Agree Neutral Price is important Disagree Strongly Disagree
  • 13. Place Of Purchase Small Online electronic8% shop 2% Branded electronic retail store 18% Official exclusive brand outlets 12% Others 6% Branded mobile retail store 54% Branded mobile retail store has the major market share of 54% when it comes to the place of purchasing a new phone and small electronic shops are the least preferred place of purchase.
  • 14. Frequency of changing phone 50 45 40 35 30 25 20 15 10 5 0 0-6 months 6months-1year 1-2years more than 2 years
  • 15. Reasons for changing phone Expiration of service contract 4% Maintenance and repair problems 44% Want more stylish phone 16% Want more features and services 36%
  • 16. Brand loyalty 70 45 60 40 50 35 30 40 25 30 20 20 15 10 10 5 0 0 Prefer to sticking to current brand Open to buy a different brand Not sure Yes Openness to a new brand No Don't Know
  • 17. Parameters for buying a new phone Phone phone must be easy to use Consideration of the operating system before purchase 45 40 0% 6% 35 14% 30 40% 25 20 40% 15 10 5 Strongly Agree 0 Strongly Agree Agree Neutral Disagree Strongly Disagree Agree Neutral Disagree Strongly Disagree
  • 18. Phone size matters Screen resolution should be high 60 Strongly Disagree 50 Disagree 40 30 Neutral 20 Agree 10 Strongly Agree 0 0 10 20 30 40 Strongly Agree Agree Neutral Disagree Strongly Disagree
  • 19. Large storage space is a necessity Shape of the phone is important 60 Strongly Disagree 50 Disagree 40 30 Neutral 20 Agree 10 Strongly Agree 0 Strongly Agree Agree Neutral Disagree Strongly Disagree 0 10 20 30 40 50 60
  • 20. The phone should have a touchscreen 60 50 40 30 20 10 0 Strongly Agree Agree Neutral Disagree Strongly Disagree Influence of advertisements during purchase 50 40 30 20 10 0 0 1 2 3 4 5 6
  • 21. Battery back up should be good Strongly Disagree Disagree Neutral Agree Strongly Agree 0 10 20 30 40 50 60 70
  • 22. CHI SQUARE TESTING Chi-square is a statistical test commonly used to compare observed data with data we would expect to obtain according to a specific hypothesis The chi-square test is always testing what scientists call the null hypothesis, which states that there is no significant difference between the expected and observed result The formula for calculating chi-square (chi2) is: chi2= (o-e)2/e That is, chi-square is the sum of the squared difference between observed (o) and the expected (e) data (or the deviation, d), divided by the expected data in all possible categories.
  • 23. Sample size=100 , Confidence level=95% , No .of male=16 , Value of Z=1.96 No. of female=84 Hypothesis testing is based on whether the price of mobile phone is important factor for buying behavior. Sex Price is imp. factor Price is not imp. factor Total Male 14 2 16 Female 62 22 84 Total 76 24 100
  • 24. R1XC1/total = 16X76/100=12.16 , R1XC2/total = 16X24/100=3.84 R2XC1/total= 84X76/100=63.84 , R2XC2/total=84X24/100=20.16 12.16 3.84 16 63.84 20.16 84 76 24 100 (O is observed frequency , E is expected frequency) O 14 62 E 12.16 63.84 (O-E) 1.84 -1.84 (O-E)² 3.3856 3.3856 (O-E)²/E 0.278 0.053 2 22 3.84 20.16 -1.84 1.84 3.3856 3.3856 0.881 0.167 ∑ (O-E)²/E=1.379
  • 25. Analysis of chi square testing • Calculated value of (O-E)²/E=1.379 • Degree of freedom = (r-1)(c-1)=(2-1)(2-1) =1 • Tabulated value of Z= 1.96 (tabulated value > calculated value so hypothesis is accepted.) Hence, we concluded that price is one of the important factor for buying behavior of mobile phone
  • 26. RECOMMENDATIONS The survey and analysis that we have conducted has brought out certain interesting facts and given insights into the buyer behaviour in case of mobile handsets. Using these insights we suggest a few recommendations to the handset brands to beat the ever-winning brand SAMSUNG. How to be on top of the game? Focus On Product & Price Be a Technology Driven Company Utility more important…Aesthetics come second…
  • 27. CONCLUSION Handset buying is a high involvement product wherein the consumer wants to know from different sources about brands, though SAMSUNG 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 the product to be of important quality Companies should therefore concentrate more on developing the first P and make it available at reasonable and reachable prices. So, the product itself becomes the promotion for the brand…….
  • 28. SCOPE OF THE STUDY The available researches do not provide the proper information about the behaviour of customers towards mobile phones. So this study is aimed to know the awareness of mobile phones among people among people. To study the psychology of the customers behind their choice of mobiles.
  • 29. LIMITATIONS OF THE STUDY • The study suffers from the major limitation of obsolesce of the information • There is a biased opinion based upon the preference of the data provider on the basis of his/her purview