Dissertation changing needs and wants of consumers have made mobile handset companies innovative

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CHANGING NEEDS AND WANTS OF CONSUMERS HAVE MADE MOBILE
HANDSET COMPANIES INNOVATIVE
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ABSTRACT
This research study is mainly based on to justify that the “Changing needs and wants of
consumers have made mobile handset companies innovative”. This study includes both
secondary and primary data and the analyses done are through SPSS software,
Microsoft Excel is also used wherever necessary. By collecting the required data and
analyzing the data it was found that features are important to consumers and
consumers are looking for a mobile phone which is loaded with features. It is also found
that consumers are always looking for innovative products.
From the primary data collected and analyzed it can be discussed that Mobile phones
has gained a lot of importance among the consumers, and because of this many of the
users own more than one mobile phones, Mobile phones has become a product for all.
Consumers always look for innovative product to satisfy their changing needs. Mobile
phones with Camera, MP3, FM Radio, Long battery life, cool ring tones, WAP, are
becoming more and more important; consumers want their mobile phones to be
loaded with all these features, and they want more developments in these features
which means there is need for a product which has more advanced technology to make
the important features even better, keeping this in mind Mobile handset companies are
launching new phone with latest up gradation. From the primary and secondary data
collected and analyzed it can be said as the needs and wants of consumers are
changing , Mobile companies are becoming innovative and are launching new products
with innovative features so that they can satisfy the changing needs of consumers.

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TABLE OF CONTENT
Chapter 1 – Introduction ……………………………………………………………...07
1.1 Introduction ………………………………………………………………………...07
1.2 Aim of the Research………………………………………………………………...09
1.3 Objectives of the Research…………………………………………………………09
1.4 Structure of the Research…………………………………………………………..09
Chapter 1 – Introduction…………………………………………………………..09
Chapter 2 – Literature Review…………………………………………………….10
Chapter 3 – Research Methodology……………………………………………….10
Chapter 4 – Context (Over view of Mobile Handset Market)…………………...10
Chapter 5 – Analysis and Findings………………………………………………..10
Chapter 6 – Discussion……………………………………………………………..11
Chapter 7 – Conclusion and Recommendations………………………………….11
Chapter 2 – Literature Review………………………………………………………...12
2.1 Introduction…………………………………………………………………………12
2.2 Consumer Behavior………………………………………………………………...13
2.3 Consumer Behavior and Mobile Phones………………………………………….19
Chapter 3 – Research Methodology…………………………………………………...23
3.1 Introduction…………………………………………………………………………23
3.2 Research Philosophy………………………………………………………………..25
3.3 Research Approaches………………………………………………………………27
3.4 Research Design…………………………………………………………………….28
3.5 Research Strategy…………………………………………………………………..29
3.6 Sampling Techniques………………………………………………………………31
3.7 Secondary Data……………………………………………………………………..34

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3.8 Primary Data………………………………………………………………………..35
3.9 Quantitative and Qualitative Data………………………………………………...38
3.10 Data Analysis………………………………………………………………………38
Chapter 4 - Context (Over view of Mobile Handset Market)………………………..39
Chapter 5 – Findings and Analysis……………………………………………………43
5.1 Mobile Phones UK………………………………………………………………….43
5.2 Mobile Phones India………………………………………………………………..48
5.3 Regression Analysis – Indian Data………………………………………………...52
5.4 Cross tabs Analysis – Indian Data…………………………………………………57
5.5 Regression Analysis – UK Data……………………………………………………62
5.6 Cross tabs Analysis – UK Data…………………………………………………….66
5.7 Comparison between London and Bangalore Consumers……………………….71
Chapter 6 – Discussion…………………………………………………………………76
Chapter 7 – Conclusion and Recommendations……………………………………...81
Chapter 8 – References…………………………………………………………………84
Chapter 9 – Appendices………………………………………………………………..89

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CHAPTER - 1
INTRODUCTION
1.1 - Introduction
In this modern era, consumers are becoming more and more intelligent and they are
looking for the product which gives them a value for money. Decades ago it was seen
that there were sellers who wanted to sell their products and there were buyers who
wanted to buy that product, whatever the seller used to sell the consumers used to
buy, that was called as sellers market. This scenario started changing and today due to
globalization, due to the opening up of Economy and taking the whole world as a
market it can be said that the market has changed from sellers market to buyers
market.
Many companies entering the market have given rise to heavy competition ad this has
resulted in giving consumers a lot of benefit. Today consumers have lot of options or
alternatives to choose because of this each and every company is trying to do their best
so that they can attract the consumers towards them by giving them one of the best
products. It is now consumers who will decide which products they want to buy and
from which company depending upon their needs and wants. So it is very much
important for the companies that they clearly understand the consumers need and
satisfy their needs by giving the product they want. Talking about this a very good
example would be Coke, when coke was launched it was the only product of the
company, but now Coca Cola has many products under its belt. This clearly indicates
that as the needs and wants of the consumers changed the company had to design and
develop different products to satisfy those changing needs.

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This is applicable to each and every company available in the market. It can be seen
that all the companies today are investing a lot in research and development so that
they can offer a better to the market, and this also applies to the Mobile handset
companies, these companies has created a revolution in the Mobile market by investing
heavily in technology and they are successfully in launching different brands with latest
technology.
It can be clearly seen that a lot of developments has taken place in mobile handsets
since its launch, new features like Camera, MP3, FM Radio, Wifi, WAP, and many more
has been added, apart from the features companies are also trying to attract
consumers based on look, like many stylish and handy models have been introduced,
other attributes like touch screens, ear phones, speaker phones.
Now the question arises why there are lot of changes taking place in this industry, why
new products are launched on a regular basis, why latest technological developments
are taking place in this market, is there is need for these developments and if it is
carefully scrutinized it can be said in order to survive in the highly competitive market
these companies are acting differently and innovatively and the main reason for doing
so is because the changing taste and choice of consumers.
The needs of consumers are not constant they keeping on changing, consumer’s want
different products to satisfies their needs and one important thing which should be
taken in consideration is that all customers are different from each other, they not only
look different they even have different preferences, they behave differently, they have
a different taste and it can be said that consumers need differ from each other. In the
same way consumers of mobile market want different products to satisfy their need.
Now mobile phones have become an important part of consumer’s life, mobile phones
are used not only for communication but beyond that. Why this drastic change has
taken place, a gadget which was used only for communication now has gone beyond
that, the changing needs and wants of consumers may be the reason, as Sun sets and
rises the consumers needs also sets and rises, so to meet these needs companies are

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bringing innovations in the product. Mobile phones which was used to satisfy basis
needs has taken a transition from b Basic needs to Safety needs to self esteem needs
and now these gadgets are used to satisfy self actualization needs.
So this research is carried out to understand the consumer behavior, their preference
and taste while purchasing mobile phones and also to find out whether the changing
needs of consumers have given rise to different innovations taking place in this
industry.
As a large amount of consumers is involved this study concentrates on the consumer
behavior towards mobile phones and also this will throw light between the consumer
preferences and attitudes and innovations.
1.2 - Aim of the Project
The aim of this project is to justify that the “Changing needs and wants of consumers
has made Mobile Handset companies Innovative “.
1.3 - Objectives of the Project
Changing needs and wants of consumers has made Mobile Handset companies
Innovative, This is due to ------
• The changing Life style and Living style of consumers
• Technological development taking place
• Customers look for a product with a bundle of attributes and features
• Having a innovate product increases the self esteem of consumers.
This research may help Mobile handset companies’ to better understand the complex
nature and behaviors of consumer and this will also give them an idea about the
relation between the latest technological development and Needs and Wants of
consumers.
1.4 - Structure of my Research
Chapter 1 - Introduction

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This chapter will have a over view of consumers, their changing behavior, their needs
and wants and how important is to understand consumer behavior, this chapter will
also give a brief idea about how the needs and wants of consumers are changing and
how organizations respond to this change. Talking about mobile phones this chapter
includes how mobile phone companies are changing according to the needs of
consumers.
Chapter - 2 – Literature Review
This chapter gives an extensive background supported by literatures. This chapter will
also cover about various aspects of consumer behavior, which will also include different
aspects of consumer behavior and mobile phones. This chapter will also highlight about
the different buying patterns, changing needs, influencing factor, and preferences of
consumers. This will include literatures of different authors about consumer behavior
and mobile phones.
Chapter- 3 – Research Methodology
This chapter will give a clear picture about research philosophy and approaches,
research design, research strategy, sampling techniques, secondary and primary data,
Data analysis. This chapter also deals on how the research will be conducted, what
research philosophy and research approach will be used and what research strategy
will be adopted to fulfill the requirement of this research, this also contains which type
of the primary and secondary data will be used along with the type of sampling
technique.
Chapter- 4 – Context
This chapter will give an idea of the Mobile handset market, what are the
developments taking place in mobile handset industry, how these developments are
has helped mobile users and how mobile handset has become an important part of
consumers life. Will also deal with different innovative features of mobile phones.

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Chapter- 5 – Findings and Analysis
This chapter deals with the analysis of the data which are collected from primary and
secondary research, this chapter will also contain a overview of Indian and UK’s Mobile
market which is also analyzed to get a clear picture of the importance of innovative
features as this is very much important and is in line with ny research objective. This
chapter will also provide different types of data analysis done through SPSS.
Chapter- 6 – Discussion
The data which is collected and analyzed will be critically discussed in this chapter. The
outcomes of the data will be discussed and will be compared whether it is I line with my
research objective, all the supporting factors and non supporting factors of data will
also be discussed in this chapter.
Chapter- 7 – Conclusion and Recommendations
This is the concluding chapter of my research, all the data collected and analyzed are
carefully considered and taking this data into consideration suitable recommendations
are provided in this chapter. The conclusion is based on the outcome of the research.

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CHAPTER - 2
LITERATURE REVIEW
2.1 – Introduction
Any organization which needs to be successful in its field should be consumer centric.
In today’s world consumer is everything, all organizations work as per the requirements
of consumers and it can be said that only those companies which are able to attract
new customers and retain existing customers are successful. Not every consumer is
similar, they act differently, behave differently, they have a different attitude and they
have different taste and preferences. Over all it can be said that the needs and wants of
consumers are different and above that these needs and wants are changing.
Blackwell, Miniard & Engel (2007), Mentions that companies fail is they try to sell a
product to a consumer which does not satisfy the consumers’ needs, wants and
expectations.
So companies should be very careful when they are designing or launching a new
product, they should totally be consumer oriented and should carefully study consumer
behavior and their attitudes.

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This research study is based on consumer behavior on mobile phones, i.e what is that a
consumer is looking while buying a mobile phone, what influences him/her in buying a
mobile handset and how consumer is reacting to the new technological changes taking
place in mobile industry, this research will throw light on how the changing needs and
wants of consumers have made the mobile phone companies innovative, which means
it is because of the changing needs and wants of consumers these mobile phone
companies are developing new technologies and are bringing new innovative features.
To answer my research objective it is important to know more about consumer
behavior and to study what different authors have said on consumer behavior, Mobile
phones and Innovation.
2.2 - Consumer Behavior
Blackwell, Miniard & Engel (2007), defines Consumer behavior as activities people
undertake when obtaining, consuming, and disposing of products and services. They
also comments that it is study to know “Why People Buy”
As per Belch and Belch consumer behavior is the process where people engage
themselves in searching, selecting, purchasing, using, evaluating, and disposing the
products and services so as to satisfy their needs and desires.
Dorsch, Grove and Darden, (2000). Suggests the following five steps to study consumer
behavior
1. Need Recognition
2. Search for Information
3. Evaluation of alternatives
4. Purchase
5. Post-purchase evaluation

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Purchasing of a new mobile phone may follow these traditional steps but in many cases
it may be affected by the symbolic values related to brands.
Consumer Buying Behavior has got some vital factors that have to be considered while
studying the choice. In problem solving buying behavior, consumers usually engage
themselves in information search before making the choice. Decision making process is
usually guided by already formed preferences for a particular alternative, which means
that consumers are likely to make the choice between alternatives based on limited
information search activity, Beatty and Smith, (1987). Coupey, Irwin and Payne, (1998)
corroborates that consumers make a choice without detailed evaluation of the other
alternatives. Where as Laroche, Kim and Matsui, (2003) states that along with
information search, evaluation of alternatives has gained importance.
Solomon, (2001) mentions that in a non-compensatory method of evaluation, a
consumer would eliminate a brand that does not fulfill the standards on one or two of
the most important attributes, even it is positive on all other attributes and Laroche,
Kim and Matsui, (2003), further elaborates saying that out of the five heuristics
(conjunctive, disjunctive, lexicographic, linear additive, and geometric compensatory)
conjunctive heuristics is the most often used decision model in the consideration set
formation. Conjunctive heuristics means that a consumer selects a brand only if it
meets acceptable standards.
A traditional problem solving approach which involves rational decision making will not
be suitable in all situations or it can be said that this approach will be incomplete in
understanding the consumer choice behavior.
According to Dhar and Wertenbroch, (2000) Limited information search and evaluation
of alternatives will lead to a situation where the consumer’s choice is driven by hedonic
considerations. A common distinction is to be made between utilitarian goods and
hedonic goods, Utilitarian goods are usually primary instrumental and functional,
where as hedonic goods provide fun, pleasure and excitement. Batra and Ahtola, (1990)
stated that many choices of consumers have both utilitarian and hedonic features, and

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thus it can also be proposed that the choice between mobile phones has both
utilitarian (e.g., communication) and hedonic (e.g., songs, games, camera) features. The
younger the consumer the more hedonistic features consumers tend to value in mobile
phones (Wilska, 2003).
Fitzsimons et al., (2002) further adds to this stating that consumers knowingly or
unknowingly takes into consideration conscious and non-conscious choice which means
that consumers choice can also be approached from the perspective of conscious and
non-conscious choice he also states that in many cases non-conscious choice
influences the most as compared to Conscious choice, Kivetz and Simonson,(2000)
strengthens this stating that quite many of the choice situations occur outside of
conscious awareness and with limited information search and it can be stated that
many choices have both conscious and non-conscious motives.
Consumers undergo different purchase decisions and not all decisions are similar some
are routine which requires less effort and some are complex which requires more
effort. Hence it can be said that consumers face four types of purchase decisions:
(http://www.knowthis.com)
• Minor New Purchase – New purchase but not an important purchase
• Minor Re-Purchase – Not a new purchase as well as not a important one, these
are the most routine of all purchases and often the consumer tends to buy the
same product without giving much thought to other product options.
• Major New Purchase – Most difficult of all purchases because this purchase is
very important to consumers and the consumer has little or no experience,
during these type of purchases consumers engage themselves in an extensive
decision making process.
• Major Re-Purchase – Also an important purchase but the consumer is confident
because of his previous experience.

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If a customer is buying a mobile phone for the first time then his purchase decision will
be Major new purchase, if it is a repurchase then it will be Major Repurchase.
Three main categories that influences consumers purchasing are,
(http://www.knowthis.com)
External (Culture, Group and Situation),
Internal (Attitude, Knowledge, Personality, Life styles, Roles, Involvement) and
Marketing (Product, Price, Placement, Promotion and service)
Blackwell, Miniard & Engel,(2006), strengthens the above statement saying that
consumers live in complex environment so their decision process is influenced by
environmental factors such as Culture, Social Class, Family, Personal Influence and
Situation.
Consumers undergo four types of Buying Behavior depending upon the product.
• Complex buying behavior - Here the individual purchases a high value brand and
seeks a lot of information before the purchase is made.
• Habitual buying behavior is where the individual buys a product out of habit
• Variety seeking buying behavior is where the individual likes to shop around and
experiment with different products. So an individual may shop around for
different breakfast cereals because he/she wants variety in the mornings
• Dissonance reducing buying behavior is when buyer is highly involved with the
purchase of the product, because the purchase is expensive or infrequent.
(http://www.learnmarketing.net)

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Talking about the Psychological behaviors Lancaster & Reynolds (2005), has
commented that understanding human psychology is very important but it is very
difficult to understand the psychology because psychology of human behavior is
complex, Personality and the self concept, Motivation, Perception, attitudes and
learned behavior are the five psychological concepts which are important in
understanding buying behavior
Consumers can be divided or grouped according to how quickly they adopt a new
product. There are some consumers who adopt the product as soon as it is available
and on the other hand there are customers who will be the last to purchase a new
product. Based upon this consumers can be divided into five different groups.
(http://www.quickmba.com)
• Innovators - well-informed risk-takers who are willing to try an unproven
product.
• Early adopters - based on the positive response of innovators, early adopters
then begin to purchase the product. Early adopters tend to be educated opinion
leaders.
• Early majority - careful consumers who tend to avoid risk, the early majority
adopts the product once it has been proven by the early adopters. They rely on
recommendations from others who have experience with the product.
• Late majority - somewhat skeptical consumers who acquire a product only after
it has become commonplace.
• Laggards - those who avoid change and may not adopt a new product until
traditional alternatives no longer are available.

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Consumers who buy a new mobile phone can be clearly grouped into Innovators and
Early adopters because these groups’ of consumers do not hesitate to try new product.
Consumers behave differently while purchasing different products, while purchasing a
low involvement products consumers become more objective oriented because of the
nature of the attributes (eg. food, cosmetics) because these products are constantly
being advertised and promoted. Similarly Rioo, Vasquez and Iglesias (2001) comments
that evaluation of a product by a consumer can be divided into Product related
Evaluation (tangible or physical attributes) and brand name (intangible attributes, or
images added to the product due to its brand names). On the other hand Allen (2001),
in his study of relationship between human values and consumer purchases, found that
there was a significant association between human values (eg. hedonistic,
achievement, self-direction, conformity, security etc.), product preference and tangible
attribute of the product. He says that it is very much important to know how the
consumers perceive the product (i.e tangible attributes) and how they evaluate the
product (i.e symbolic meaning, tangible/intangible attribute importance).
(http://www.scribd.com)
It has been observed that some times the perception of the product performance and
the actual product performance does not match, so Mason & Bequette, (1998)
recommended that perception of product performance on the salient attributes are
more important than actual performance, because the consumer will buy the product
only if he/she perceives that the product they are going to buy satisfy their needs.
Mowen and Minor (1998) strengthens this by saying that marketing managers should
know the attributes that consumers expect in a product and how positively or
negatively they rate these attributes to help develop and promote a successful product.
He also adds saying that even retailers should have the knowledge about which
perceived attributes is most important for individual consumer group in order to build
and maintain market share. Warrington & Shim, (2000) builds upon this saying that

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consumers themselves determines which attributes is most important to them, they
also states that different consumer groups
have different importance on different attributes. It was also found that Strong brand
commitment consumers have greater importance on product attributes and product
orientations than weak brand commitment consumers; Price plays an important role
for weak brand commitment consumers.
(http://www.scribd.com)
Consumers will buy a product only if it benefits them. Hence del Rio,Vasquez & Iglesiaz,
(2001), narrates that consumer evaluates the product performance based on its
capabilities, usage effectiveness, value for money and reliability. They further
elaborates saying that Consumers regards the purchase and consumption of products
as an indirect way of communication to improve their self image and to deliver certain
impressions to other people in their environment. Therefore (del Rio,Vasquez &
Iglesiaz,(2001), mentions that the benefits of the brand names perceived by the
consumers are highly interrelated to the product-based benefits. So they stated that
Big brand means a better image and a better product. (http://www.scribd.com)
According to Morgan and Dev (1994) Customer background contributes to brand
loyalty. They states that Customers with high income may stick to one fine brand
because they perceive that brand is providing social value to their status. So in this case
there is less chance that the consumer will switch to some other brand because of their
high income customers can purchase their favorite brands independently without much
consideration to monetary value.
Price is one the important attribute used by consumers to evaluate a product. Price can
sometimes be an indicator of quality; with a higher price indicating higher quality
(Mowen & Minor, 1998; Siu & Wong, 2002). Consumers perceive that a higher price can

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be attributed to the higher cost of quality control (Siu & Wong, 2002). Some consumers
are highly price sensitive (elastic demand), whereby a high
prices may shift consumers to competitive brands (Mowen & Minor, 1998). Therefore
price can have a positive or negative influence on customers. (http://www.scribd.com)
2.3 - Consumer Behavior & Mobile phones
According to Ranaweera & Prabhu, (2003), Purchase settings of mobile phones are
continous and different than the purchase settings of retail stores.
Riquelme (2001) suggested that consumers use their self knowledge while choosing a
mobile phone. This was based upon a study conducted using Six attributes like -
Telephone features, Connection fee, Access cost, Mobile-to-Mobile phone rates, Call
rates and Free calls. The result of the research showed that consumers who has got
previous experience about a product can predict their choices relatively well, although
respondents tended to overestimate the importance of features, call rates and free
calls and underestimate the importance of a monthly access fee, mobile-to-mobile
phones rates and the connection fee.
Jones, (2002) in his report mentions that consumers value in smart phones features
which enhance their personal time planning. These features include calendar and e-
mail services. Jones further adds that the important features such as gaming, gambling
and music downloads are not seen that important in the diffusion of smart phones.
Wilska, (2003), in his study said that Demographic factors play an important role while
evaluating the different attributes of mobile phone. He further adds that in
demographic factors, Gender and social class has more impact on the evaluations of
the attributes as men belonging to higher social class seem to be more technology
savvy addictive and females are attracted towards the trendy and impulsive

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consumption styles.The study concluded that genders are becoming more alike in
mobile phone choice.
Liu, (2002); O’Keefe, (2004) in their report commented that Consumers buy new mobile
phones because they know that their existing phone lacks in certain features and their
phones don’t have the new technology features such as built-in cameras, better
memory, radio, more developed messaging services, and color displays. They also
reported that these new technological features are influencing consumer decisions to
acquire new models. Thus it can be expected that new features will influence the
consumers to purchase new mobile phones. Apart from the new features it has been
found that to some extent Size and Brand plays an important role in decision making.
Liu (2002) who surveyed Asian mobile phone users found that size of the phone had no
much impact on mobile phone choice, but he says that since all competing brands in
the market has similar sized phones is the reason why size has no impact. He further
adds that the trend will not be towards the smaller phones but will be towards phones
with large screens and better capability. So it can be said that while choosing between
different mobile phones consumers will go for small size phone with large screen apart
from this they will also look for familiar brands.
Karjaluoto et al., (2003a), Karjaluoto et al., (2003b) in his study said that Price is one of
the critical factor while chosing a mobile phone, especially among younger people. In
his survey he found that besides new technological features price was the most
influential factor affecting the choice of a new mobile phone. This was further
strengthened from a survey conducted by isuppli’s consumer Traker service which
revealed that income is also a major influencing factor while purchasing mobile phone.
The survey suggested that consumer with lower incomes attribute more importance to
price than those with higher income when buying a new handset. So it can be said that
in Lower income group consumer’s price will restrict their choices to few brands which

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means price plays an important part while choosing a mobile phone among low income
consumers (http://www.ciol.com)
Greg Sheppard, chief development officer for iSuppli Corp says that consumer
preferences for mobile handsets vary widely and are heavily influenced by
demographic factors, particularly age and income. One of the survey conducted by
iSuppli's ConsumerTraker service revealed that mobile phone preferences can vary by
demographic group. As per the survey – Brand and price were the main factors for
consumers of all age groups while choosing a mobile phone apart from this the survey
also revealed that younger group look for multimedia features (camera) and the style
of the phone while choosing a mobile because young people view mobile phones a part
of the social networking portal, part personal entertainment device and part fashion
statement. On the other hand the survey suggested that for older adults’ mobile
phones serve a more utilitarian function of basic communications for work and
personal use. (http://www.ciol.com)
Dekimpe et al (1995), states that it is very much important for the mobile phone
manufacturing companies that the customer should stick to one brand which means
that the existence of brand loyal customers is of significant importance for
organizations producing cell phones ranging from cheap price to highly expensive
handsets with a variety of advanced technological functions and features He also
comments that in this competitive market how fast a company can attract customers
towards it decides the success o the company above that he suggests that it is not only
attracting the customer but retaining the customer, so it becomes important for the
survival of the company to attract new customer and retain the existing customers.

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As my research is on need of innovative features of mobile phones among consumers it
is important to know how innovations have helped companies in attracting consumers.
So it is important to know what different authors have said about innovations.
As per Aaker and Keller, 1990 (In Tepeci 1999) – Innovation plays an important role fore
a success of a brand and this will help the brand to be up to date and innovative brand
succeeds to grab the attention of consumers in an environment of changing taste of
consumers.
Mattern (2003), said that Technology is verymuch important for Innovationshe also said
that Technology is only a means to an end .Adding to this Hultink et aI (2000), said that
before the development of the product the integration of preferences of the customers
should be considered in a very early stage.
CHAPTER -3
RESEARCH METHODOLOGY

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3.1 – Introduction
Operational Research began its life during the Second World War as a multidisciplinary
activity aimed in improving managerial decision making.
Tony Hindle et al (1995)
When reading a daily newspaper, listening to a radio or watching a television it is very
difficult to avoid the term Research. The results of research are all around us. Politicians
often justify their policy decisions on the basis of ‘research’ and advertisers highlight
the results of ‘research’ which will encourage buying a particular product.
Following are the ways in which the term ‘research’ is wrongly used as per Williman
(2001) –
• Just collecting information with no clear purpose
• Reassembling and reordering information without interpretation
• Just using it as a term to get the product or idea noticed and respected.
Saunders, Lewis, Thornhill (2007) has identified the following characteristics of
‘research’
• Data are collected systematically
• Data are interpreted systematically
• There is a clear purpose or objective.
So they define research as something that people undertake in order to find out things
in a systematic way, thereby increasing their knowledge.
As per Ghauri and Gronhaug (2005), in a research the word systematic means that the
research should be based on logical relationships and not just beliefs.

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As per Gill and Phil (2005), Research Methodology is always a compromise between
options in the light of silent philosophical assumptions and choices are frequently
influenced by availability of resources.
Mark Saunders, Philip Lewis and Adrian Thornhill (2007).

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3.2 - Research Philosophy
The term research Philosophy refers to the development of knowledge and the nature
of knowledge. Research Philosophy contains important assumptions; these
assumptions will support the research strategy and methods. These philosophies are
influenced by practical considerations. However the main influence will be the way in
which one will view the relationship between knowledge and the process by which it is
developed.
According to Clarke (1998), research methods can be described, considered and
classified at different levels, the most basic level is the philosophical level.
Smith (1998) commented that understanding philosophy is an uncomplicated style and
innocent way of questioning, which produces confusion and instability in the
assumptions and ideas about the world, which makes the study of philosophy of special
benefit.
The three main reasons why understanding philosophy is important identified by
Easterby-Smith et al (1997) are -
• It can help the researcher to refine and specify the research methods which can
be used for the study above that it will also help to clarify the overall research
strategy to be used.
• It will help and assist the researcher to evaluate different methodologies and
methods and will also help to avoid inappropriate use and unnecessary work by
identifying the limitations of particular approaches at an early stage.
• It may also help the researcher to be creative and innovative in either selection
or adaptation of methods.

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According to Denzin and Lincoln (1994), Understanding of philosophy, personal beliefs
and researcher’s experience may also have some architecture on the method adopted.
Shih (1998) expands this idea and has listed four areas for consideration when deciding
on a research method:
• the philosophical paradigm and goal of the research,
• the nature of the phenomenon of interest,
• the level and nature of the research questions,
• the practical considerations related to the research environment and the
efficient use of resources.
Proctor (1998) commented that for any research project it is very much important that
there should be a consistency between the aim of a research study, the research
questions, the chosen methods, and the personal philosophy of the researcher. She
also indicated that before any decision on research method can be made one should
have a clear understanding of the two extremes of research philosophy, i.e. positivism
and post-positivism.
As per Saunders, Lewis and Thornhill (2007), There are three major ways of thinking
about research philosophy – Epistemology, Ontology and Axiology.
Epistemology - Is the study of knowledge and justified beliefs. It concerns what
constitutes acceptable knowledge in a field of study.
• Positivism entails working with an observable social reality and the end product
can be law like generalizations similar similar to those in the physical and
natural sciences. Kincaid (1998) has said that positivism has supported the
emphasis on quantitative data and precisely formulated theories.
• Realism means reality; it is the truth that objects have an existence independent
of human mind.

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• Interpretivism is an epistemology that advocates that it is necessary for the
researcher to understand the differences between humans in our roles as social
actors.
Ontology – Is a branch of philosophy which is concerned with the nature of social
phenomena as entities.
• Objectivism is the ontological position which holds that social entities exists in
reality external to social actors.
• Subjectivism the ontological position which views that social phenomena are
created from he perceptions and consequent actions of social actors.
• Pragmatism holds the most important determinant of the research philosophy
adopted is the research question.
Axiology – is a branch of philosophy that studies judgements about value. (Saunders,
Lewis and Thornhill (2007).
3.3 - Research Approaches
The two main research approaches are -
Deductive
Deductive reasoning begins with a more general approach and finally ends with a more
specific approach. Sometimes this is also called as called a "top-down" approach. One
might be thinking about a topic of his interest and later this will narrow down into a
more specific hypothesis that can be tested. This is further narrowed down by
collecting observations to address the hypotheses. This ultimately will lead to test the
hypotheses with specific data -- a confirmation (or not) of our original theories.
(http://www.socialresearchmethods.net)

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Inductive
Whereas, Inductive reasoning works the other way, moving from specific observations
to broader generalizations and theories. Sometimes this is called as "bottom up"
approach. Inductive reasoning begins with a specific observation and measures and
then it leads to patterns and regularities, then a tentative hypothesis is formulated
which can be explored this will finally end up by developing some general conclusions
or theories. (http://www.socialresearchmethods.net)
These two methods of reasoning have a very different "feel”. Inductive reasoning is
more open-ended and exploratory, especially at the beginning where as Deductive
reasoning is narrower in nature and is concerned with testing or confirming
hypotheses. Even though a particular study may look like it's purely deductive (e.g., an
experiment designed to test the hypothesized effects of some treatment on some
outcome), most social research involves both inductive and deductive reasoning
processes at some time in the project. (http://www.socialresearchmethods.net)

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My research study will follow a deductive approach will take into consideration the
general aspects of consumer behavior and finally will approach to a specific point which
will clearly answer my research objective.
3.4 - Research Design
Research design is the general plan on how one will go about answering his research
questions. Research design will contain clear objectives of the research, the sources of
data which has to be collected and will also include the constraints. (Like time, money,
access to data). So it can be said that Research Design focuses upon turning a research
question and objectives into research project.
Research Projects are undertaken for different purposes. These can be categorized as –
Exploratory, Descriptive and Explanatory. Talking about the research purpose Robson
(2002) has said that the purpose of the research may change over time.
Exploratory Studies – Exploratory studies is a valuable means of finding out ‘what is
happening; it will help to get a new insights; to ask questions and to asses phenomena
in a new light. Robson (2002). Exploratory study is used to clarify the understanding of
a problem.
Descriptive Studies – Descriptive research is to portray an accurate profile of persons,
events or situations. In Descriptive study data are collected in order to get the answer,
and also to get the opinion of the people about a particular topic.
Explanatory Studies – Studies that establish casual relationship between variables may
be termed as explanatory studies.
Descriptive research is appropriate in those areas of study where the data available is
limited. Keeping this in mind and to select a particular tool for data collection and
analysis, the descriptive research method will be used. This methodology will be used
to seek insights into the general nature of the problem and to focus on the relevant
attributes that need to be considered to carry out the research. Through data driven

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analysis the research queries were prioritized and also learned about the practical
efforts of carrying out the research. As it is necessary for me to get the opinion of
different people so that the research objectives will be met Descriptive research will
help me in doing so because through this study I will be able to get the opinion of
different people about by topic which will help me to meet my objective.
3.5 - Research Strategy
After identifying the research question, research philosophy and approaches and
research design the next step is to identify how to carry out the research, which means
what will be the steps taken to carry out the research. So Research Strategy can be
defined as a plan of action that will be taken which will help in giving direction for the
efforts. Research strategy will help the researcher to carry out the research in a
systematic way.
The different research strategies available are –
Experiment, Survey, Case study, Action Research, Grounded Theory, Ethnography,
Archival research.
Out of the different Research strategies available I will be choosing Survey as my
research strategy.
Survey - The survey strategy is usually associated with deductive approach. It is a
popular and one of the most frequently used strategy. It tends to be used for
exploratory and descriptive research. Surveys are popular as they allow the collection
of large number of data from a sizeable population in a highly economic way. It is
comparatively easy to explain and understand because a questionnaire is used as a
tool. This strategy will help to collect quantitative data which can be analyzed
quantitatively using descriptive and inferential statistics.

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As I mentioned that I will be using Survey as a research strategy and in the survey
strategy I will be using a questionnaire. The reason for choosing Survey as a my
research strategy is, because of my objective I need to get in touch with a large number
of population and it is important for my research to get the opinion of different people
to justify my objective, survey will help me in doing so it will also help me to get in
touch with large number of feasible samples. To get a clear cut answers for my
objective I need to ask many questions regarding the topic, as I will be meeting the
respondents personally face to face this will help me to clear their doubts at the very
given moment. Survey strategy will be ideally suited for my research because I can
meet large number of samples, I can as many questions and I can meet them face to
face.
3.6 -Selecting Samples and Sampling Techniques
As per Gill and Phil (2005), All surveys are concerned with identifying the ‘research
population’ which will provide all the information required for answering the research
question. Often it is impractical and difficult to involve all members of this population
so selecting who will participate in a survey becomes important.
Suzanne C. Beyea, Leslie H. Nicoll (1997) suggested that whatever may be the study, in
order to determine the study method, research question is very important, but in
deciding the research sample, type of sample and the number of people who will
be part of sample, both research question and method are important. Time,
money, access to subjects, and the number of study variables are the other
factors that will affect the decision about sampling plans and sample size.

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Sampling Techniques can be divided in to two types –
Probability or Representative sampling – Here the chance or probability of each case
being selected from the population is known.
Different types of Probability Sampling are –
• Simple random sampling – often called as random sampling, this involves
selecting the sample at random from the sampling frame.
• Systematic sampling – this involves in selecting the sample at regular intervals
from the sampling frame.
• Stratified random sampling – this is a modification of random sampling in which
the population is divided into two or more relevant and significant strata based
on one or more number of attributes.
• Cluster sampling – in this form of sampling the population is divided into
discrete groups or clusters. This is some what similar to stratified sampling.
• Multi-stage sampling – this is a development of cluster sampling, this is normally
used to overcome problems associated with a geographical dispersed
population when face to face contact is needed or where it is expensive and
time consuming to construct a sampling frame for a large geographical area.
Non-probability or judgemental sampling – Here the chance or probability of each case
being selected from the population is not known
Different types of Non-Probability Sampling are –
• Quota Sampling – this is entirely non random and is normally used for interview
surveys. This is based on the premise that the sample will represent the
population, as the variability in the sample for quota variables is the same as
that in the population. So Barnett (1991) said that quota sampling is a type of
stratified sample in which selection of cases within strata is entirely non-
random.

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• Purposive sampling – this enables the researcher to use his judgement to select
cases that will best enable him to answer his research questions and to meet his
objectives. Neuman (2000) said that purposive sampling is used when working
with very small samples such as case study research.
• Snowball sampling – this is commonly used when it is difficult to identify
members of the desired population, for example people who are working while
claiming unemployment benefit.
• Self selecting sampling – this occurs when each case usually individuals are
allowed to identify their desire to take part in the research.
• Convenience sampling – this involves selecting conveniently those cases that are
easy to obtain for the sample. This sample selection process is continued till the
required sample size has been reached.
As I am using a questionnaire as a survey instrument and I need to take the opinion of
the different people for my research study it is important for my project to select an
appropriate type of sampling technique. So in my research I will be using a combination
of Quota and Convenience sampling. The reason for using Quota sampling is that I will
be interviewing only those respondents who are using Mobile phones these
respondents will form a Quota and the sample size I will be taking will represent the
population as it is very difficult to survey the total population using mobile phones.
Apart from Quota sampling I will also be using one more sampling technique called
Convenience sampling. Many of friends in India and London are working for
Telecommunication Company who are also in the market and they frequently visit
mobile handset retailers, so it will be convenient for me to handover the questionnaires
to my friends and ask them to get it filled from the customers who own a mobile phone
and who visit those mobile handset retailer.
In the light of the objectives of the study, my survey population will be identified as
people falling in the age categories between less than 18 yrs to over 50 yrs of age. A

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sample of 250 mobile handset users (125 from London and 125 from Bangalore) will be
drawn using quota and convenience sampling.
The data will be collected during different days of the week as well as at weekends in
order to improve the representativeness of the sample. Respondents will be
approached at different locations based within London as well as Bangalore (India)
because this is a comparative study between Indian (Bangalore) Market and UK
(London) Market. There will be many retailers in these areas who are selling mobile
phones and offering other mobile phone related contracts and services, therefore it will
became easier to find potential mobile phone users and conduct interviews from them.
The purpose of the study will be explained and face to face interviews will be
conducted from the respondents within the geographic locations stated.
The sample size will been broken down into the following age segments:
• Less than 18
• 18 – 30
• 30 - 50
• 50 and above
3.7 - Secondary Data
Sometimes to answer the research questions or to meet the objectives it is important
to collect the data which is already available, so researcher initially consider collecting
the data which is readily available and reanalyzing them. So the data which is already
available or which is already collected by other people for some other purpose is called
as Secondary Data. Secondary data include both raw data and published summaries.
Secondary data also plays a key factor in the in providing various other information

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which will influence the analysis. These data can usually be found more quickly and
cheaply than primary data. Few of the main sources of secondary data include
newspapers, business journals, magazines, internet and company reports etc.
According to Stewart and Kamins (1993), secondary data will be quickly available and it
is the only viable alternative above that secondary data can be of higher quality data,
adding to this Ghauri and Gronhaug (2005), said that the main advantage of using
secondary data to meet the research questions and objectives is that it will turn out to
be a lot of savings in resources like time and money.
Dale t al (1988) commented that reanalyzing secondary data can also lead to
unforeseen or unexpected new discoveries.
Stewart and Kamins (1993), argues that researcher using secondary data will have an
advantage with others using primary data because these data can be evaluated prior to
use.
There are three main types of Secondary data –
• Documentary secondary data – includes written documents such as notices,
minutes of meetings, diaries, administrative and public records, reports to share
holders as well as non-written documents such as tapes, video recordings,
pictures, films and television programmes.
• Survey based – data collected by surveys, such as by questionnaire, which have
already been analyzed for their original purpose
• Multiple source secondary data – secondary data created by combining two
more different data sets prior to the data being accessed for the research.
Secondary information will be collected to provide an overview of consumer
preferences and the UK and Bangalore Mobile phone market. This will also be used to
form literature review and background to the study. The secondary sources that will be
used in order to gather information for this research will mainly comprise of books,

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journals and online resources. Information will be gathered from the Internet, Library,
market reports, journals, Emerald-Library database.
Secondary data for this study will include appropriate materials from newspaper,
magazines, standard textbooks, Journals. Information from Internet will also be
acquired wherever necessary.
As my research context is about mobile phones lot of information about the latest
development taking place in this field is important and these information needs to be
collected so that after reanalyzing these data and relating it with the primary data I can
draw a conclusion which will support and justify my research objective. So I can get this
valuable information from secondary sources like magazines and internet above that I
can also get some information or data from Survey based secondary data like the data
collected from survey which have already been analyzed for different objective.
Documentary Secondary data such as News papers, magazines will also help me to get
more information because all the latest developments taking place in mobile handset
market will be published in news papers.
3.8 - Primary Data
Primary data are those data which are collected specifically for the research project
being undertaken. Information collected specifically for the purpose of the
investigation, as one hand is known as Primary Data or Raw Data. Primary data are
sought for their proximity to the truth and control over error. These are not readily
available.
Primary data is source from which the researcher collects the data. It is a first hand
data, which is used directly for the analysis purposes. Primary data always gives the
researcher a fairer picture. Surveys, Interviews and focus groups are most widely used
to collect primary data.
Different ways of collecting Primary data are –

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Observation – In this type Primary data is collected through systematic observation,
description, analysis and interpretation of people’s behavior.
There are two types of Observation –
• Participant Observation - Observation in which the researcher attempts to
participate fully in the lives and activities of the research subjects and thus
becomes a member of the subject, groups, organizations or community.
According to Gill and Johnson (2002), participant observation will help the
researcher not only share their experiences but also help them to get a feeling
about what is happening.
Delbridge and Kirkpatrick (1994) suggested that the data that is generated by
participant observation can be categorized into Primary, Secondary and
Experiential. Structured Observation – this is concerned with the frequency of
events. It is characterized by a high level of predetermined structure and
quantitative analysis.
Interviews – this is useful to gather valid and reliable data that are relevant to
research objectives. Kahn and Cannell (1957), defined interview as powerful
discussion between two or more people.
Different types of interviews include –
• Face to Face Interview
• Telephonic Interviews
• Group Interviews
• Internet and Intranet mediated interviews.
Questionnaires - are data collection techniques in which each person is asked to
respond to the same set of questions in a predetermined order. They are often used
as a part of survey strategy to collect descriptive and explanatory data about
opinions, behaviors and attributes.
Different types of Questionnaires are –

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• Self administered questionnaires – these are usually completed by the
respondents, these are administered electronically using Internet or intranet
called Internet or Intranet mediated Questionnaire. It is also posted to
respondents who will return it after completing which is termed as Postal
Questionnaire. It is delivered by hand to each respondent and collected later
called as Delivery and collection questionnaire.
• Interviewer administered questionnaires – here the interviewer reads the
same set of questions to the respondent in a predetermined order and records
his or hers responses. Some interviewer contact respondents and administer
questionnaire through telephone called as telephone questionnaire. Some
interviewer physically meet the respondents and ask the question face to face
these are called as Structured Interview using questionnaire.
To get a clear picture for my research work and to meet the requirement of my
research objective I will be using Questionnaire as tool for collecting primary data. So
my research will mainly depend on Primary data i.e through questionnaire. Out of the
different types of questionnaires available my research will follow an Interviewer
administered questionnaire because for my research project a two way involvement
is required and if there is any doubt about the questions asked I can clarify it at that
very given moment. My research will follow a mix of telephonic questionnaire and
structured interview. This is because any respondent who is willing to give
information through telephone will save help me in saving traveling time.
The questionnaire is designed to elicit information on respondent’s attitude, behaviors,
experience in using mobile phones, their satisfaction, preference, length of ownership,
strength of recommendation, consciousness while choosing mobile phone, the
importance they give to their favorite brands, their strength of commitment and other
elements of brand loyalty. The questionnaire will be pre-tested with my colleagues and
friends. It will take less than ten minutes to conduct the interview and fill out the

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questionnaire from each respondent and they will be assured that their responses
would be held as strictly confidential.
3.9 - Quantitative And Qualitative Data –
Qualitative Data – These are non-numerical data or data that is not been quantified.
Quantitative Data – These are Numerical data or data that has been qualified.
3.10 - Data Analysis
The data collected will be analyzed with the help of different statistical analysis.
Descriptive measures, bar charts, pie charts, frequency distributions, mean
analysis, independent sample will be mainly conducted to derive a description of
consumer preferences and their changing needs within the respondent pool used in
the study.
The Statistical Package for Social Sciences (SPSS) will be used to analyze the
quantitative data in the questionnaire and tables will be prepared to show the
percentages, frequencies, means, level of significance, standard deviation and other
statistical measures of different variables in order to provide with a thorough
understanding of the findings. Besides various statistical tests Microsoft Excel will also
be for converting frequencies and percentages into bar charts to analyze the data in a
better manner. Through SPSS, Cross tabs analysis and Regression Analysis will be
carried out to analyze the data which will guide me to meet my research objective.
CHAPTER 4
OVER VIEW OF MOBILE MARKET

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Communication plays an important role in this modern age, so it can be said that
communication has become an important tool. This not only makes life easy but also
simplifies business works. One of the most important and useful gadgets which
facilitates communication is a mobile phone. (http://ezinearticles.com)
The Mintel report (1998), defines mobile phones as; “those telephones that are fully
portable and not attached to a base unit, operating on dedicated mobile phone
networks”.
Smith (2006) commented that Mobile Phones have become essential devices, not only
for mobile communications, but also for mobile computing.
Mobile phones have become one of the most revolutionary, successful and highly
admired consumer products to date. The market for mobile phones is one of the most
dynamic markets in the world and this market is expanding at an incredible rate with
time.
The mobile phones are and would always be one of the significant inventions of the
21st century which have become so popular in the recent times. Mobile phone is
capable of doing a lot of things at one time and thus it has become significantly
popular. It is not a single device but a mobile phone is device which has been equipped
with a lot of features in it. Apart from communication mobile phones can be used as
music system, Internet tablet, camera, mini computer and so on. The mobile phone has
become a very popular device and has surpassed every other technology in terms of
performance. (http://ezinearticles.com)
The world of mobile phones has evolved itself to significant heights in the recent times.
The mobile phone revolution has engulfed the whole of the world into its spell. All the
manufacturers of mobile phones are coming out with the latest models and are
successful in attracting the mobile phone users. The companies are attracting

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customers not only with the latest models but also with the best technology and
attractive looks. With rapid changes and development taking place in this industry,
Mobile phones have become a necessity rather than luxury. Seeing the popularity of
mobile phone market many companies have entered into this market and some are
even successful in launching new handset with the latest technology. The
manufacturers like Nokia, Sony Ericsson, Motorola, LG, Samsung, Blackberry, HTC, i-
mate, Siemens, BenQ are reputed manufactures in this field and have been doing quite
well in the industry!
The mobile phone industry is proliferating everyday with a lot of innovations The
mobile phones are marketed under the mobile phone deals which are available in the
mobile phone market. Some excellent camera phones has been launched recently and
it can be said that the mobile phone industry has gone a long way forward and has
introduced mobile phones with as good as 5 Mega Pixels camera in it. By using some of
the technologies such as HSDPA and UTMS have increased the pace of web browsing
and this has also helped and has increased the downloading speed. Due to the high
craze in music, music centric phones like Walkman series from Sony Ericsson, Xpress
music series from Nokia and Samsung has also gained lots of popularity among the
mobile phones.
The mobile phones of recent times have also turned into the business devices; this has
given a platform and as a result of these mobile phones like Blackberry, HTC and i-mate
has been successfully launched. These business devices have taken the place of laptops
in the modern times. One can access the emails, access the Internet and can open all
the MS Office documents through this device. So, it can be said that now mobile
phones are not just a mere tool for making calls, but they have gone ahead and so
mobile phones are now considered as one of the best devices in the modern times.
(http://ezinearticles.com)

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Every day human beings come up with some new innovations which have a great
impact in the life of the people. So is the huge proliferation in the communication
devices have left people awestruck by their marvelous functionalities and surreal
beauty. .(http://ezinearticles.com)
The new generation mobile phones have been successful in establishing a distinguished
position among the masses as being the most handy communication devices. Because
of its multiple features like high-performance camera, digital FM radio and media
players, the mobile phones facilitates numerous activities, all in the finger tips. Above
those mobile phones also contains all types of applications ever imaginable in a single
device. This may be due to the advancement of time or the tendency of people in
integrating regular working devices in an easy manner; the mobile phones have been
metamorphosed to all-in-one gadgets.
Mobile phones are now gifted with some of the fantastic abilities-- It can work like a
mobile music system, a multimedia device and a pocket personal computer system.
Most mobile phones include various software for document viewing with the help of
which users can undertake their official work like viewing of documents in formats,
such as PDF, Word, Excel or Power Point. Most modern day mobile phones also come
with Internet accessing capabilities. With the help of the mobile phone, users can send
and receive e-mails, browse the Web for various information. They can stay updated
about the current happenings with a mobile phone and also can accumulate knowledge
about the whole world. .(http://ezinearticles.com)
Mobile phones have undergone a prominent transformation even as a communication
device. With the incorporation of latest connectivity features, like 3G, GPRS, UMTS etc.,
communication have become smoother than before. Also, features like Bluetooth and
Infrared has helped the users to get connected and has also helped them to share or

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transfer the data easily. Mobile phones can now be connected with the PC and most of
them have fabulous data storage capacities.
People, today are so accustomed with mobile phones that from young to the old there
would be hardly any one who could think of a life without a mobile phone.
(http://ezinearticles.com)
Every month, millions of people worldwide are adding themselves to the mobile phone
community and this will go on. (http://ezinearticles.com)
According to Gerpott et al (2001), due to the large sales figures and involvement of
huge amount of customers, the mobile cellular market is considered to be the most
important sub-market for mobile communications.

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CHAPTER – 5
FINDINGS AND ANALYSIS
5.1 - MOBILE PHONES - UK
Davies et al. (2005), mentions that the UK mobile phone market is dominated by three
leading manufacturers (Nokia, Sony Ericsson and Motorola). These three together has
around 70% of the market share. Out of these three companies, Nokia dominates and it
is considered to be the most popular mobile handset manufacturing company. Adding
to this Turnbull, et al. (2000), has said that Nokia is gaining popularity because of its
stylish designs, user-friendly functions, durability and quality of the products, games,
calculator, ring tones, above all these
the important comment they have made is that, Nokia’s Handset is always loaded with
the latest technology software and functions.
These are some highlights of the report produced by Ofcom, which illustrates the
following information about the UK mobile handset market: (‘The Communications
Market 2005’)
• 85% of the UK households have mobile phones
• 9% of UK households only have mobile phones and no landlines
• 27% of all calls in the UK are made through mobile phones
• Total revenues generated by the mobile telecoms industry have exceeded those
of fixed-line calls.
Beside this according to Ofcom’s ‘The Communications Market February 2006’:
• There are 62.5 million mobile subscribers in the UK. This figure is 9% higher as
compared to the previous year and is more than the total UK population.

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• Further information from this report shows that around 80% of UK adults (some
40 million) use mobile services.
• Mobile revenues in the last 12 months up till September 2005 were £13.6
billion, which is a 16% increase year-on-year, while revenues from fixed
telecoms fell by 9% over the same period.
According to Euro monitor (2008)
• In 2007, volume sales of mobile phones grew a modest 3.3% over the prior year.
Value sales reached more than £1 billion.
• New phones with higher degrees of sophistication, design and technology—
such as the iPhone—will drive growth in the sector during the forecast period
Trends
• There has been rapid growth in the number of UK households owning a mobile
phone. In 1996/97, 17% of households owned a mobile phone. This increased to
65% of households in 2001/02 and 79% in 2005/06.
• According to M:Metrics, 75% of UK mobile phone owners owned a camera
phone in 2007. Figures indicate that about 30% of mobile phone owners use
their Multimedia Messaging Service (MMS).
• Volume sales of mobile phones grew by 26% over the review period and they
are expected to continue growing at a slightly higher rate (27.5%) over the
forecast period. “Volume growth will be driven by declining prices,
the launch of new products and increased integration of new technologies into
mobile phones”.
• 2G mobile phones, with a volume market share of more than 54% and 3G
mobile phones with nearly 46% share currently dominate the sector. “Many
consumers and others in the market are anxiously awaiting the introduction of
4G mobile phones”, which should boost sector sales even higher. “The

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performance of the mobile phone sector in the UK will also benefit from the
launch in the near future of new phones with higher standards of design and
technology, such as the iPhone”.
Competitive Landscape
• In 2006, Nokia was the leader in the UK mobile phones sector with a volume
market share of 25.2%, followed by Sony with just over 20%, Samsung with
nearly 17% and Motorola with just over 7%.
• Nokia’s success is due, in part, to customer loyalty, together with its reputation
for user-friendly and reliable products. “Nevertheless, the company is facing
intense competition from Sony and Samsung, which benefit from their expertise
in other technology sectors such as digital photography and LCD display. In the
face of this competition, Nokia’s share declined by 0.2 percentage points in
2006”. Other competitors, such as Motorola, have focused on producing stylish
and fashionable phones, which are very popular among young consumers
• “New product development in the sector has been focused on introducing and
improving features such as video, camera, MP3 and internet connectivity. Smart
phones and multiple-mega pixel camera phones have contributed strongly to
the boost in sales of mobile phones”.
• “Companies in the sector, including Orange, O2 and Nokia, are in talks with
Transport for London about using phones instead of Oyster Cards to pay for
underground tickets. Handsets loaded with customers’ bank account details
would be swiped over readers to buy tickets from Oyster Card machines and
swiped again at barriers to pay for journeys”.
Prospects
• “Major players such as Nokia, Sony, Samsung and Motorola will need to keep
introducing new innovation features and stylish designs to capture the attention

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of consumers. Product reliability and customer loyalty are also important factors
in this sector”.
Sector Data
Table 1 Sales of Mobile Phones: Volume 2002-2007
000 units 2002 2003 2004 2005 2006 2007
Mobile Phones 14,486.0 15,942.0 16,541.0 17,278.0 17,658.1 18,247.2
Source: Official statistics, trade associations, trade press, company research, store
checks, trade interviews, Euro monitor International estimates
Table 2 Sales of Mobile Phones: % Volume Growth 2002-2007
% Volume Growth 2006/07 2002-07 CAGR 2002/07 TOTAL
Mobile Phones 14,486.0 15,942.0 16,541.0
Table 6 Mobile Phones Company Shares 2002-2006
% Retail Volume 2002 2003 2004 2005 2006
Nokia 25.2 25.3 25.4 25.4 25.2
Sony 19.8 19.9 19.9 20.0 20.1
Samsung 16.5 16.5 16.6 16.7 16.8
Motorola 6.7 6.8 6.9 7.0 7.1
LG 3.4 3.5 3.7 3.9 4.1
Panasonic 2.1 2.1 2.2 2.2 2.3
Benq 1.6 1.7 1.7 1.8 1.8
Sagem 0.6 0.7 0.8 0.9 0.9
Sharp 0.2 0.3 0.4 0.5 0.6
NEC 0.1 0.2 0.3 0.4 0.4
Virgin (Lobster) 0.1 0.1 0.2 0.4 0.4

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Others 23.7 22.9 21.9 20.8 20.3
Total 100.0 100.0 100.0 100.0 100.0
Source: Trade associations, trade press, company research, trade interviews,
Euromonitor International estimates
Number of Multiple Mobile Phones or SIM Cards Used by UK Adult Mobile Phone Users,
by Age, July 2008 (% of respondents in each group)
Age TWO THREE FOUR OR MORE
16-24 13% 2% 1%
25-34 11% 2% 1%
35-44 9% 2% 1%
45-54 7% 1% 1%
55-64 8% - -
65+ 4% - -
Source: Office of Communications (Ofcom) - UK, "The Communications Market 2008,"
August 14, 2008. (www.eMarketer.com)
The latest Technological Developments taking place has a great impact on the UK
mobile phone handset market. Now the biggest challenge for the Mobile manufactures
is to survive in this highly competitive market, and to meet and satisfy the changing
needs of the customer. In order to achieve this Mobile Handset companies are
investing a large sum of money on product research and new product development.
Apart from heavy expenditure on technological enhancement, they also are
concentrating on advertising and promotion so that the customers are aware of the
new developments taking place.
In order to keep in pace with the most recent technology, retain and create new
customers and serve them appropriately, mobile phone manufacturers are producing a
wide range of mobile phones. At present, a technologically advanced mobile phone can
perform several tasks, which can include functions and features like radio, games,
wallpapers, changeable ring tones, screensavers, built in camera, accessing the

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internet, watching TV channels, transfer of files with the help of Bluetooth, large
storage capacities for saving important files, mp3 music/video player, video recording,
voice recording and others. (http://EzineArticles.com)
5.2 - MOBILE PHONES - INDIA
Due to the rapid consumerism, India has emerged as the second largest mobile handset
market. Industry observers view that the Indian market could well become a global hub
for mobile handset manufacturers.
India has seen a drastic change in terms of Mobile technology. Even in India mobile
handset has become a necessity and it has become a personal symbol for people today.
The trend to own a handset filled with different features like MP3, digital TV, games
etc. Creativity... is increasing day by day.
(http://www.financialexpress.com).
According to a study conducted by IDC India, the entertainment Features drive Mobile
handset upgrades, it also pointed out that integrated digital camera, and music player
and stereo FM radio are the three main features, which drive consumers to upgrade
their handsets. These features are available in mid-range and high-end handsets, but
the common user also now wants these features to be included in the more affordable
handsets. The study also indicates MMS has failed to catch the fancy of the masses due
to high cost of transmission over the networks to attract the attention of the user and
speakerphone feature has emerged as a driver for upgrading the current handset.
(http://www.idcindia.com)

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Figure 1: Mobile Handset Brand Scores on ‘Overall Satisfaction’ (Scale: 1 to 100, Max.
Score = 100)
Out of different handset manufacturers Sony Ericsson, Motorola and Nokia are
successful in overall customer satisfaction. All other brands are below the industry
average. At an overall level users feel that mobile phones have become easier to use,
have better voice clarity and longer battery life and thus the satisfaction on these three
parameters has increased as compared to the 2006 and 2005 scores. However, internal
memory and entertainment features are the two parameters on which satisfaction has
come down significantly.

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(http://www.idcindia.com)
According to Euro monitor (2008)
• Sales of handsets increased by 25.2 million units over their 2006 level in 2007.
• Nokia is the dominant player in the Indian retail market for handsets, with a
53.6% share in 2006.
Trends
• Personal ownership of mobile phones in India is increasing dramatically.
Household penetration has grown from 8.0% in 2005 to an estimated 19.5% in
2007.
• The handset has now become a status symbol in India, and style and design are
also playing influential roles in consumers’ decision-making. Feature-rich
phones, with mp3, radio and camera functions, are taken for granted and the
upper-end user is looking for something more.
• Sales of smart phones are also growing at an above-average rate.
• The strong growth in advanced mobile phones has slowed down growth in the
sales of other products, such as portable mp3 players, digital cameras and
radios, in the mass market. Instead of buying 3 mp digital cameras, consumers
will opt to upgrade their phones to camera phones.
• At the other end, consumers are seeking to replace their existing handsets with
more recent models equipped with high-end features are looking for more
features and better connectivity.
Sector Data
Table 1 Sales of Mobile Phones: Volume 2002-2007

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000 units 2002 2003 2004 2005 2006 2007
Mobile Phones 4,087.4 15,956.2 18,882.0 35,140.4 63,408.1 88,608.7
Table 2 Sales of Mobile Phones: % Volume Growth 2002-2007
% Volume Growth 2006/07 2002-07 CAGR 2002/07 TOTAL
Mobile Phones 39.7 85.0 2,067.8
Table 6 Mobile Phones Company Shares 2002-2006
% Retail Volume 2002 2003 2004 2005 2006
Nokia 26.9 31.0 53.1 56.2 53.6
LG 23.5 33.3 14.3 17.2 11.2
Motorola - 2.4 4.3 5.0 10.8
Samsung 26.5 13.2 10.2 7.1 5.9
Sony Ericsson - - 3.2 4.3 5.6
Kyocera - 0.7 1.1 0.7 0.7
Huawei - - - o.7 0.7
Pantech Inc - - 0.7 0.6 0.6
Others 23.1 19.4 13.1 .2 10.9
Total 100.0 100.0 100.0 100.0 100.0
Source: Trade associations, trade press, company research, trade interviews,
Euromonitor International estimates
5.3 - Indian data - Regression Analysis

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Field of Work vs. Importance of Mobile
Descriptive Statistics
Mean
Std.
Deviation N
IMP OF
MOBILE
2.77 .460 125
Field of Work 2.80 1.100 125
Correlations
IMP OF
MOBILE
Field of
Work
Pearson
Correlation
IMP OF
MOBILE
1.000 -.140
Field of Work -.140 1.000
Sig. (1-tailed) IMP OF
MOBILE
. .059
Field of Work .059 .
N IMP OF
MOBILE
125 125
Field of Work 125 125
Variables Entered/Removed (b)
Mod
el
Variables
Entered
Variables
Removed Method
1 Field of
Work(a)
. Enter
a All requested variables entered.

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b Dependent Variable: IMP OF MOBILE
Model Summary(b)
Mod
el R R Square
Adjusted
R Square
Std. Error
of the
Estimate
1 .140(a) .020 .012 .458
a Predictors: (Constant), Field of Work
ANOVA(b)
Mod
el
Sum of
Squares df
Mean
Square F Sig.
1 Regressio
n
.516 1 .516 2.466 .119(a)
Residual 25.756 123 .209
Total 26.272 124
Coefficients(a)
Mod
el Unstandardized Coefficients
Standardized
Coefficients t Sig.

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B Std. Error Beta
1 (Constant)
2.932 .112
26.1
02
.000
Field of
Work -.059 .037 -.140
-
1.57
0
.119
a Dependent Variable: IMP OF MOBILE
Casewise Diagnostics(a)
Case
Number
Std.
Residual
IMP OF
MOBILE
Predicted
Value Residual
18 -3.710 1 2.70 -1.698
81 -3.710 1 2.70 -1.698
Residuals Statistics(a)
Minimu
m
Maximu
m Mean
Std.
Deviation N
Predicted Value 2.70 2.87 2.77 .065 125
Residual -1.698 .302 .000 .456 125
Std. Predicted
Value
-1.091 1.637 .000 1.000 125
Std. Residual -3.710 .661 .000 .996 125
Charts

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210-1
Regression Standardized Predicted Value
1
0
-1
-2
-3
-4
RegressionStandardizedResidual
Dependent Variable: IMP OF MOBILE
Scatterplot
Occupation vs. Importance of Mobile
Mean
Std.
Deviation N
IMP OF
MOBILE
2.77 .460 125
Occupation 1.91 .582 125
Correlations
IMP OF Occupation

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MOBILE
Pearson
Correlation
IMP OF
MOBILE
1.000 -.017
Occupation -.017 1.000
MOBILE
. .427
Occupation .427 .
N IMP OF
MOBILE
125 125
Occupation 125 125
Variables Entered/ Removed(b)
Mod
el
Variables
Entered
Variables
Removed Method
1 Occupatio
n(a)
. Enter
Model Summary(b)
Mod
el R R Square
Adjusted
R Square
Std. Error
of the
Estimate

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1 .017(a) .000 -.008 .462
a Predictors: (Constant), Occupation
ANOVA(b)
Mod
el
Sum of
Squares df
Mean
Square F Sig.
1 Regressio
n
.007 1 .007 .034 .854(a)
Residual 26.265 123 .214
Total 26.272 124
a Predictors: (Constant), Occupation
Coefficients(a)

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Mod
el Unstandardized Coefficients
Standardize
d
Coefficients t Sig.
B Std. Error Beta
1 (Constant
)
2.793 .142 19.613 .000
Occupatio
n
-.013 .071 -.017 -.184 .854
Casewise Diagnostics(a)
Case
Number
Std.
Residual
IMP OF
MOBILE
Predicted
Value Residual
18 -3.824 1 2.77 -1.767
81 -3.824 1 2.77 -1.767
Residuals Statistics(a)
Minimu
m
Maximu
m Mean
Std.
Deviation N
Predicted Value 2.75 2.78 2.77 .008 125
Residual -1.767 .246 .000 .460 125
Std. Predicted -1.869 1.566 .000 1.000 125

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Value
Std. Residual -3.824 .533 .000 .996 125
Charts
1.00.80.60.40.20.0
Observed Cum Prob
1.0
0.8
0.6
0.4
0.2
0.0
ExpectedCumProb
Normal P-P Plot of Regression Standardized Residual

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210-1-2
Regression Standardized Predicted Value
1
0
-1
-2
-3
-4
RegressionStandardizedResidual
Scatterplot
5.4 - Indian Data – Cross tabs Analysis
Gender vs. Innovation
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Gender *
LOOK FR
123 94.6% 7 5.4% 130 100.0%

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INNOVATION
* WCH BRAND
Gender * LOOK FR INNOVATION * WCH BRAND Cross tabulation
Count
WCH BRAND LOOK FR INNOVATION Total
Always
some
time
Frequent
ly
Nokia Gende
r
MALE
20 10 8 38
FEMALE 6 12 3 21
Total 26 22 11 59
Samsung Gende
r
MALE
4 1 5
FEMALE 1 5 6
Total 5 6 11
Sony
Ericsson
Gende
r
MALE
15 0 3 18
FEMALE 2 4 0 6
Total 17 4 3 24
Motorola Gende
r
MALE
8 1 1 10
FEMALE 1 2 0 3
Total 9 3 1 13
LG Gende
r
MALE
1 4 2 7
FEMALE 0 1 1 2
Total 1 5 3 9
Black Berry Gende
r
MALE
4 4
Total 4 4
Others Gende
r
MALE
3 3

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Total 3 3
From the above table it can be clearly seen that majority of males always look for a
innovative product than Females, it does not mean that Females does not go for
innovative product, they are also interested in innovative products so they sometimes
consider buying mobile phones with innovative feature are more attracted towards
innovative product than Females. This gives a clear picture that Males are more
attracted towards a product with Innovation feature than females.
Graph

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others
Black
BerryLGMotorola
sony
Ericssonsamsungnokia
WCH BRAND
FrequentlysometimeAlways
LOOKFRINNOVATION
FEMA
LE
MALE
Gender
FEMA
LE
MALE
Gender
FEMA
LE
MALE
Gender
FEMA
LE
MALE
Gender
FEMA
LE
MALE
Gender
FEMA
LE
MALE
Gender
FEMA
LE
MALE
Gender
20
15
10
5
0
Count
20
15
10
5
0
Count
20
15
10
5
0
Count

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Which Brand vs. Why that Brand
This

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othersFeaturesAvailiablityPriceBrand name
WHY THT BRAND
othersBlackBerryLGMotorolasonyEricssonsamsungnokia
WCHBRAND
FEMALEMALE
Gender
FEMALEMALE
Gender
FEMALEMALE
Gender
FEMALEMALE
Gender
FEMALEMALE
Gender
30
25
20
15
10
5
0
Count
30
25
20
15
10
5
0
Count
30
25
20
15
10
5
0
Count
30
25
20
15
10
5
0
Count
30
25
20
15
10
5
0
Count
30
25
20
15
10
5
0
Count
30
25
20
15
10
5
0
Count
The above graph clearly indicates that Nokia is the most preferred brand as compared
to other brands; an important point that can be seen is that while purchasing any brand
consumers first look for Features and then brand name. This means that features play
an important role while choosing a mobile phone.

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Importance of different features among Indian consumers.

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0 20 40 60 80 100
3 Parties Call Meeting
Camera
Connection with computer
Download Ring and Picture
Game in the Phone
Large Keypad
Loud Speaker
Multi-media Message
On-line Game
Radio
Walkie Talkie
NIMP
LIMP
IMP
VIMP

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Preference in a Mobile Phone among Indian Consumers.
0
20
40
60
80
100
120
ABILITY DISPLAY FUNCTIONS OUTLOOK VOICE
VIMP
IMP
LIMP
NIMP
The above two graph clearly indicates that features play an important role in
influencing a consumer to buy a mobile phone. Out of the different parameters
available consumers indicated that functions of a mobile phone is one of the important
attributes to them, followed by the voice quality and Display. Out of the different
features available within the mobile phones, the life of the battery has got more
importance, followed by different features like MP3, Camera, Earphone, Cool Ring
tones and others. This shows that consumers will prefer a mobile phone which has got
a longest battery life and which is fully loaded with innovative features of camera, MP3,
Earphone and so on.

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5.5 - UK Data – Regression Analysis
Field work vs. Important of Mobile
Mean
Std.
Deviation N
IMP OF
MOBILE
2.66 .608 125
Field of Work 3.29 1.038 125
Correlations
IMP OF
MOBILE
Field of
Work
Pearson
Correlation
IMP OF
MOBILE
1.000 .040
Field of Work .040 1.000
MOBILE
. .331
Field of Work .331 .
N IMP OF 125 125

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MOBILE
Field of Work 125 125
Variables Entered/Removed(b)
Mod
el
Variables
Entered
Variables
Removed Method
1 Field of
Work(a)
. Enter
Model Summary(b)
Mod
el R R Square
Adjusted
R Square
Std. Error of the
Estimate
1 .040(a) .002 -.007 .610
ANOVA(b)
Mod
el
Sum of
Squares df
Mean
Square F Sig.
1 Regressio
n
.072 1 .072 .193 .662(a)
Residual 45.816 123 .372
Total 45.888 124

Dissertation changing needs and wants of consumers have made mobile handset companies innovative

Dissertation changing needs and wants of consumers have made mobile handset companies innovative

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