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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.
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%
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
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
