Business Research Methods

Market Research to Evaluate Consumer Preferences for Various Features in Mobile Phones

A report submitted to Prof. Anand Kumar Jaiswal

Submitted by Group C08

Anshul Gupta Dr. PrashantDeshmukh Kunal Gupta Rohan Nag ShashwatSiddhant SwetaBindiTherlapu

INDIAN INSTITUTE OF MANAGEMENT AHMEDABAD

Contents
Background to the problem ......................................................................................................... 3 Research Matrix .......................................................................................................................... 4 Decision Problem .................................................................................................................... 4 Research Problem .................................................................................................................... 4 Information Needs ...................................................................................................................... 4 1. Secondary Research .......................................................................................................... 4

Primary Research:........................................................................................................................ 4 Variable Specification .................................................................................................................. 5 Literature Survey: Uncovering the latest trends in the Mobile handsets market ........................... 6 Mobile Applications ................................................................................................................ 6 Features important for Feature-Phones .................................................................................... 7 Features important for Smartphones ....................................................................................... 8 Classification of Features as per Customer Usage .................................................................... 9 Classification of Features as per similar Attributes ................................................................... 9 Key Insights drawn from Secondary Research........................................................................ 10 Approach for Qualitative Research ........................................................................................ 10 Qualitative Survey ..................................................................................................................... 11 The steps followed:- .............................................................................................................. 11 Questions for qualitative survey............................................................................................. 12 Step 1: Excerpts from in-depth interviews with Experts ......................................................... 13 Step 2: Excerpts from in-depth interviews with the interviewers ............................................ 14 Focus Group discussion............................................................................................................. 19 Key Insights from Primary Research .......................................................................................... 20 Questionnaire Design................................................................................................................ 22 QUESTIONNAIRE ................................................................................................................. 25

Background to the problem

With a total mobile subscriber base of 811 million in 2010-11, India is poised to become one of the most lucrative markets for the telecom sector. An average growth of 35% in the telecom sector bodes well for the mobile phone market, which can expect a 35% growth coming just from the new handset purchases, besides the customers who are frequently looking forward to changing their existing handsets (CRISIL, Telecom Services Industry Review, 2011). Consequently, a number of both national and international players are entering the mobile phone market with the intent of achieving the biggest share of the pie. Given the rapid pace of technological innovations in the mobile phone technology, companies today are able to offer a wide variety of features to the customers. Every company in the mobile handset industry has launched a ranged of handsets catering to the specific needs and segments of the customer. A mobile phone in the current scenario, given the technological advancements in terms of features and mobile applications, has evolved from merely being a long-distance wireless talking device to a complete lifestyle product that has to complement a users personality. Therefore, it becomes imperative for a mobile phone to encompass the right set of technological and general utilitarian features with the aesthetics and price valued by the target customer. A market research employing the various business research methods can play an important role in evaluating the preferences of the customers vis a visthe various features of the mobile handsets during the product development and conceptualization stage for any handset company.

Research Matrix
Decision Problem
What are the different features (technology, utility etc.) that should be incorporated in a new product line of mobile handsets targeted towards youth in the age group 23-28 years old, across different price ranges?

Research Problem
To evaluate the customer preferences of youth in the age group 23-28 years old in terms of various features of mobile handsets across different price ranges?

Information Needs
1. Secondary Research: The study of various industry reports helped us in gaining a good overview of the mobile handsets market in India. Furthermore, we did a comprehensive literature review using various databases (like Euromonitor, CRISIL, Gartner, Datamonitor etc.) and journals present over the Internet, in order to study the latest consumer trends in the mobile handset market in India as well as other global markets. This helped us in understanding the most recent technological innovations that have happened in the mobile handsets industry and the impact they have had on consumer psychic and usage of mobile phones. We also did a comparative study between some leading mobile handset manufacturing companies to understand their strategy of selecting features for their models and the factors that make these handsets resonate with the customer. This enabled us to narrow down our focus to a couple of key features that are valued by the customers in the age group 23-28 years and develop a structure for conducting the primary research in the form of personal interviews, expert interviews and focus group discussions. 2. Primary Research: a. Exploratory Research: We interviewed 12 people using the laddering technique. This was done to aid us in the Qualitative analysis and draw insights about key consumer preferences. b. Channel Partner Interviews: We interacted with a mobile storeowner, a sales person in the same store and an area wholesale dealer in order to understand the consumer preferences and market trends from the supply side perspective. c. Questionnaire: We intend to float the questionnaire to gauge consumer preferences about the various features available in the mobile handsets across various price ranges.

Variable Specification
As indicated by our qualitative survey, the three main clusters of features that we will look at are: Common Features Utility Features Technology Features

Literature Survey: Uncovering the latest trends in the Mobile handsets market
Mobile phones market in India grew by 12% in 2010 to reach sales of Rs500 billion, with the low-priced phones driving the growth by attracting the masses. However, the smartphones were the fastest growing volume category, with 40% growth in 2010. The average unit price in 2010 was around Rs3300, which showed an upward trend from 2009 [Euromonitor, 2011]. The low-priced phones helped in fuelling sales in the rural markets, where the penetration is still 30% as compared to the overall penetration rate of 60% in the country. However, with rising incomes and growing awareness about latest brands and technologies, youth especially in urban areas are willing to spend more for premium lifestyle products and entertainment. Hence, the upward trend in the sales of latest smartphones has been observed. With the advent of smartphones, mobile phones have been split into two major categories, namely: 1. Feature Phones, which at the time of manufacture are not considered to be smartphones, but nevertheless have additional functions over and above standard mobile service 2. Smartphones, built on a mobile computing platform, with more advanced computing ability and connectivity Therefore, it warrants us to examine the set of specific features desired by customers for both these categories separately. However, we can collate the features from both while administering the interview questions during the exploratory research to avoid any biases and to gain useful insights into probably developing an amalgam of both the kinds of phones in our product.

Mobile Applications Mobile Applications or popularly known as Apps are a breakthrough development in the handset space, that have changed the entire handset market dynamics. In a recent interview, MsPurnimaKochikar - VP Forum Nokia & Developer Communities, states mobile apps in India focus on two categories: 1. The high-end, global users market that uses apps to increase productivity 2. Rural communities and the emerging middle and working class whose users rely on the mobile phone to help with their daily needs or a way to a better life [Euromonitor Market Trends in Mobile phones, 2011] Therefore, mobile apps have become an integral part of the user experience for the handset industry. All the leading players in the market are competing to provide the
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users with bigger online app stores for both feature and smart phones. According to a study by Gartner [Gartner, ICT Hype Cycle, 2011], mobile apps feature on the peak of expected inflations on the ICT Hype Cycle in India:

Therefore, well developed App stores or compatibility with one of the existing app stores like the Android market are going to be one of the major factors in determining the success of a mobile phone in the market.

Features important for Feature-Phones Feature-phones are the more conventional form of mobile phones with a whole additional set of features. Many of the conventional users still prefer to use feature phones due to their familiarity with the interface and usage. While it is not possible to manufacture smartphones below a certain price range, the feature phones can be manufactured quite cheaply. However, that does not mean that the feature phones cannot offer a wide variety of features. The important features in such phones (in addition to the basic functions like calling, messaging, phone book etc.) include QWERTY Keyboard, touch screen, Bluetooth, wifi, dual sim, camera, mp3 player, games, radio, torch, apps, videos, internet browser, GPS navigation, mail and expandable memory.

However, even though mobile apps have been developed for feature-phones, the feature phone app stores like the Ovi Store of Nokia still pale in comparison with the likes of iTunes, Android etc. According the research on emerging consumer trends by Euromonitor, the other set of features that has a significant impact on customers buying decision in case of a feature phone are looks, style, color and battery backup. Out of the 150 million units of handsets sold in 2010, 144 million units of feature phones were sold. Therefore, it can be said that the indian mobile handset market is still largely dominated by the feature phones category.

The biggest player in the feature phone category is Nokia, which was also the market leader in 2010 with a whopping 51% retail volume share. Nokia leads sales in market because of a reputation for building sturdy and reliable phones. The other major players in this category are Samsung, Motorola, LG and Sony.

Features important for Smartphones Smartphones is the fastest-growing category with 40% volume sales growth because such products are becoming extremely popular among professionals and youngsters as they offer internet connectivity, e-mail facility etc and help professionals and youngsters to remain connected to their work and their friends when on the move. The biggest advantage of smartphones is their high compatibility with mobile apps. The mobile computing platforms like iOS, Android, Windows etc have app stores like iTunes, Android Market etcthat are specially built around them. This provides users with a plethora of choices in various apps and enables them to customize their smartphones as per their individual needs. Since smartphones are built around a different concept and software architecture, the set of features desired for a smartphone is also a bit different. In addition to the features specified for the feature phones, a couple of features that become important in the case of smartphones are screen size, processor speed, app store, screen resolution,interface and operating system. Looks and battery backup come secondary to these features. However, price plays an important role in this category.

Even though smartphones (due to their late entry into the market) have only captured a small portion of the handset market in India, smartphones are forecasted to capture a much higher share in terms of annual sales of handset sales by 2015 as shown by the following table [Euromonitor, 2011]:

The main players in this category are Apple with iPhone and Samsung with its Android Galaxy Series.

Classification of Features as per Customer Usage Consumers preference for features varies according to their usage patterns other than calling. Youth have been primarily observed to use mobile phones for two main purposes: 1. Business/Education: Young professionals need to stay in touch with their work, colleagues and clients constantly through mails and internet. Such consumers need features like push mail, Internet, pdf reader, document editor, productivity apps, encyclopedias, exam tool app, mapss and organizer. 2. Entertainment: Youth also buy a mobile phone with the sole intent of using it as a holistic entertainment device besides the basic functionalities. The main features desired by users looking forward to using phones for entertainment are multimedia player, camera, games, social networking (Facebook, Twitter etc), mail, communicators, internet, entertainment apps, youtube and radio.

Classification of Features as per similar Attributes Mobile phone features can also be clustered into three groups on the basis of the level of complexity and mass appeal of these features. The classification can be done as follows: 1. Common Features: These features are common to all the mobile phones present in the market and hence form a part of the consideration for every customer to some extent at the time of making a purchase. These features mainly include Metallic Body, shape, weight, aesthetics, screen, etc. 2. Utility Features: These features are more advanced than the common features listed above and have a strong bearing on defining the users experience. A customer looks for utility features in a product when he wants his/her phone to
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satisfy somewhat more than just his basic requirements. However, at the same time, this customer is not sophisticated enough to go for even higher level of advanced Technology Features. Some of the important utility features are Dual Sim, Radio, In-Built Memory, Media Player, Torch, Camera/Video Recording, etc. 3. Technology Features: These are the most advanced set of features and require a certain level of awareness and sophistication on the part of the customer to be able to fully utilize and value these features. The important ones in this category are Wi-fi, Bluetooth, Mail, Maps, Apps, touch screen, browser, social networking, document editing, reader etc.

Key Insights drawn from Secondary Research 1. With the advent of smartphones in the handset space, the mobile handset market has been split into two categories Feature-Phones and Smartphones. 2. Feature-phones still dominating the handset market in India, driven by products integrating high end features like QWERTY Keyboard, touch screen, Bluetooth, wifi, dual sim, camera etc. with the basic features like looks, style, color and battery backup,are expected to resonate with the customers. However, feature-phones products may appeal the most to customers looking for relatively low priced options. 3. Smartphones were the fastest growing category with 40% growth in 2010 and are forecasted to account for roughly 20% of unit sales in India by 2015. The main drivers in the smartphone category will be the high end features and the price, which can justify the value for money for the customer. Young customers willing to spend relatively more on a phone are most likely to go forthe smartphone category. 4. The features desired by users can be classified on the basis of their primary usage patterns in two categories- Business/Education and Entertainment. 5. The features can also be classified based on the level of their complexity into three categories Common, Utility and Technology.

Approach for Qualitative Research In order to conduct the qualitative research, it is best to not bias the respondents response early on with the choice between smartphone and feature-phone. Therefore, the interviews will follow the approach of asking the respondent about their price range first followed by the features desired in that price range. While conducting the interview, interviewer will try to gain insights into the customer preferences in each of the three categories classified on the basis of the features attributes Common, Utility and

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Technology. If the primary research corroborates these insights, this classification will probably be retained in the questionnaire as well.

Qualitative Survey
The steps followed:1. Experts were interviewed so that they could shed some light on the customer behavior while buying mobile handsets. We dwelled on the various features that different customers looked for ranging from the ones at the top of their minds to the changes in the demands of the features corresponding to the changing budget. 2. Keeping in mind the demographic profile of smokers, 12 people with the following characteristics were interviewed at length to understand what kind of features that they looked for and how much did their budget influence their choice of the handset. Gender Male Male Male Female Male Male Male Male Female Female Female` Female Age 26 21 25 22 26 28 26 28 25 25 25 24 Income (last job) 4L 7L 6L 5L 6L 5L 5L 2.5L 3.8L 4L Education B.Tech B.Tech B.Tech B.A. L.L.B B.E M.B.B.S B.Tech B.A M.S B.Tech M.S.W B.E B.E

As already mentioned, the growth in the mobile handset sector in India is high across all the social strata but the maximum growth rate is seen in the basic Low-end phones and secondly, the Smart phones which have carved a niche of their own. It is the new generation that has been at the forefront of this growth and as such the target of our study was chosen to be students in the age-group of 21-27 pursuing their higher

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studies, since these are the people that will have an independent decision making process as they will have money in their hands. In keeping with the chosen demographic profile, 12 respondents were chosen offering a set of diverse profiles. The respondents consisted of engineers, doctors, law students and social workers. Apart from this a Focus Group discussion was also held to offer some insights in to the thought process consisting of people from the same set of demographic profiles. 3. During the interviews and the FGD, the respondents were asked about their mobile phone usage pattern as well as the price that they are willing to pay for buying the same. The respondents were also asked about their preferences among a broad spectrum of features like Price, Quality, Looks, Utility, and technology. Then among these features, they were asked to enlist the options that came first to their minds. 4. Inferences and insights were drawn from both the interviews and FGDs and using this the maximum preferred features were chosen for the quantitative part. 5. Some of the questions that were asked during the qualitative interviews are mentioned below: Questions for qualitative survey 1. Age 2. Background a. Worked where b. Income c. Education 3. When did you get your first mobile phone? 4. How many times have you changed? 5. Why did you change? 6. Which phone are you using currently? 7. How do you like its performance? When are you planning to change it? 8. Which one would you buy? Why?

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9. Is this the only phone you using or more than one? 10. What purpose do you use the phone for- business, work, entertainment etc? 11. What are the most important factors you look for while buying a phone? 12. What is the maximum you are willing to spend on a phone? 13. What are the common things you look for? 14. What are the most common utility features you look for in a phone? 15. What is the most common technology factors you would look for in a phone?

Step 1: Excerpts from in-depth interviews with Experts Excerpts from interviews with experts Mobile storeowner: We had a very interesting conversation with the store owner and one of the sales persons. They explained how sales were picking up in the low-end segment. The sales person was of the view that most of the customers in this segment are first time buyers. These customers are generally not very educated and have low incomes. Professional profiles in this customer segment are daily waged workers, rickshaw drivers, small shop owners etc. Behaviorally, these customers are excited about their purchase prospects. Their requirements can be summed up as maximum features for minimum price. They are not known to be very discerning about quality. However, they are keen on sturdiness, bright looks, and accessories like free headsets etc. They like to have loud music, large keys, and unconventional colors. The owner explained smart phones are also gaining in popularity. He said most young customers, students and working professionals alike, prefer to buy smart phones over basic handsets. He said most customers in this segment are very informed about product features and performance. They generally come prepared, having visited review sites or consulted friends/colleagues. They are mostly on a look out for good applications. Students are keen on large phone-book/ message memories, good music, and cameras. Software support like good folder management for pictures and songs make products very attractive for these customers. Young working professionals like to have convenient
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Internet access on the go. Hence, touch screens and QWERTY keypads are preferred. Responsiveness of touch screens is a common concern. 2. Brand X area wholesale dealer: The dealer conveyed his sense of excitement about growing sales in the smart phone segment. He explained this segment was more profitable for him because of higher margins. He said there was steady increase in demand for smart phones over the last year. He said quality of touch screen and variety in software applications were of highest importance according to his experience. He recalled examples of some good phones not succeeding because customers were dissatisfied with the touch screen. He mentioned how innovative features like swype, a technology to drag and type, often become instant hit with customers. He mentioned reliability of the product was very important. Customers investing money into a product expected the product to be sturdy. While delicacy was appreciated in looks, products are expected to be able to bear mild jerks, and some rough handling. Any complaints related to product reliability impacted the sales very adversely. He also mentioned how products were becoming more and more short-lived in the market. As smart phones are becoming lifestyle products, snob effect is commonly observed. Consumers are constantly on a look out for new options. A phone released more than one year ago often begins to experience a drop in demand. Hence, he believed companies are following a strategy of periodically releasing marginally revamped versions of their products

Step 2: Excerpts from in-depth interviews with the interviewers We conducted in-depth interviews of twelve respondents.. Based on their comments, we made certain inferences. No. Respondent Opinion/comments Insights/observations details 1. Male I should not feel ashamed to Brand name preferred take out my phone in public For some people, features Doctor It should add to my and not the price is personality important 27 years If the features are promised, I do not mind paying extra money Middle income for that group (5L) I have changed handset 4 times, the last change since I got bored.

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Price: Rs 30k

2. Male Ayurveda doctor 27 years Middle income group (5L)

Mobile phone is not just used for People no longer look at calling handsets as a just a medium of talking, but want Listening to music, taking additional features. photographs are features I look forward to. If I get all the features in a They feel that the features handset of 8K, then why should are more important than the I pay extra for brand name? brand name. I have changed my phone 4 times, the last one since it stopped working

3. Male B.Tech 26 years High income group(6L) 4. Male B.Tech 25 years Middle income group (7L)

Mobile phones personalized.

be Customers are very choosy in the set of features that they want. A mobile handset is incomplete without a Music player and a Camera and music player are good camera. some of the most important features. Price: Rs 15k I own a Blackberry, as it was very helpful at my work and also has a Certain phones like brand appeal of its own. blackberry and I-phones have their own niche. The new phone that I will buy But then the new android has to have an Android Platform. smart phones have succeeded in catching the attention of A phone without Camera, the young. Bluetooth and good looks is Again, the importance of incomplete certain features is seen.

should

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5. Male 26 years B.Tech Middle group

Price: Rs 20k I am waiting for my summers Students are waiting for to buy a new phone some extra money on their hands to buy a good phone. It has to be android based and a The choice in phones is now good brand. Also the apps on my largely based on operating phone are a very important system and android scores in criterion. the domain. Budget-pricing is still But I will not exceed 15k in my important budget. All I want from a phone is that it The customer is particular has a touchpad and Wi-fi. and choosy about the set of features he wants. A phone without battery and a large screen is not worth it. Price is again not a I do not care what the price is, as constraint. This could be long as I get the above features. since this will be the first Price: Rs 8000 phone he will buy of his own money, and hence has to be a good phone. I changed old phone from basic Customers decide which version to a middle level version phone to buy according to features as I don't need High end their requirements, they features wont buy high end phone unnecessarily. I want to buy an entertainment phone has to have push mail Customers may stick to a particular feature without Mobile should only be able to which they wont buy a perform the functions it is phone. expected to perform; I can have different gadgets for different requirements. Price: Rs 7000 Presently I own I phone.

6. Male 21 years Salary-nil B.Tech

7. Female 25 yr Education: Online marketing Middle class: 45 lakh

8. Female

I phone is a status symbol

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ISST IIM(MSW) 26 years Middle income group

9. Female L.L.B 22 years Not earning

I have changed the phone 6 and one of the most coveted times. I got the Iphone as a gift. gifts. Its more like a status symbol and is not of much exceptional use. But people have started searching for utility over and I dont use many Apps apart above the brand appeal. from the dictionary. Apps and Sync are some of Sync with laptops etc. is the important features that necessary customers today look Price: Rs 30k forward to. What good is a phone which In the basic phone stores just 200 messages! segment, priced less than 10k, customer profile is mostly such that values I wish the my phones screen looks and trendy features was bigger and brighter and likes to show off the product. I would love to have the same ease of typing as on a laptop. Basic utilities like music I type a good 100 SMSs in a player, camera phone, day! and easy operability are important. Oh a phone must look good in my hands. If I hold a Rich looks are of high phone, and no friend asks me value too. which phone, which phone, what fun owning such a phone! Who has the money to buy pricy phones like the Galaxy or the iPhone. I barely survive on my pocket money. Price: Rs 7000 I hate when my battery dies off after a few hours of internet surfing.

10.Female 26

Good screen, good

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B.Tech Middle income group (6L)

I like how my phone just slides into my pants pocket. Just the other day, I was using my friends phonewhat a quick touch screen! And what brightness! I could read everything from a foots distance in full sunlight.

applications, and durability are important.

11.Female 26 years B.Tech Not earning

Looks, though not of prime concern, are important. Size A good mobile phone is a like and weight definitely matter. my first friend in this hectic Light and sleek phones are routine- my music, my preferred. gaming, my surfing- I do everything there. Once Ive bought one, I want it to stay. The android app bank is just amazing. People come up with freaky ideas like measure heartbeat while jogging! Price: Rs 20k The phone should be handy, The customer is very moderate weight and must specific about her needs have big screen. and will prefer a popular phone, i.e. the customer Not much interest in Apps. displays a certain level of bandwagon effect. I really want a phone with Google navigation, maps. The Apps are not that important but Google I would prefer a phone which navigator or the maps are has a buzz in market and also a must, displaying the appeals to me. added interest in this Price: Rs 10k segment. I want a phone with a good after sales service. Durability and after sales service are features that

12.Female

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25 years B.E (4L) Slim mobiles are a craze and even I want one. I would love to have a phone whose colour I can change every day. . Price: Rs 8000

customers still look for. This customer seems to be trendy in her approach and put features like looks and form factor above anything else

Focus Group discussion

The focus group discussion comprised of respondents sharing the same demographic profile as the respondents in the earlier interviews taken i.e. they were students from the middle-income group within the age-group of 21-27. The observer started the discussion with a question What do you expect out of a mobile phone? After this the discussion continued and had a flow of its own with the participants offering lots of insights. The basic purpose of a phone is to call and message I disagree, certain features like camera and MP3 player are a must, and else one will get bored then get a separate camera and an iPod since the quality of these features in a phone is not good but then, in a phone all these are together and are always with me, whenever i want I will be really happy if the phone provides me entertainment during journey or other waiting times when i have to kill time!! There was a varied opinion on the utility of a phone. Some of them thought that it should be a one stop solution while the others preferred a specialized device for each of the functionalities like Camera, Music player. Customization is something that I always look up to and hence Android based mobile phones are preferred by me since they provide a lot of Apps and have an open source for them I have always wanted a phone that helps me in finding directions in the big cities There are Google maps and GPS system that serve the same purpose

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Hence as we can see, the demand for Apps is increasing in this age group and the most preferred Operating system is the Android base. The people in the generation are being driven largely towards the smart phones. Internet Access and Wi-Fi, i mean multiple types of connectivity are important considerations for the phone I buy. A phone with Internet connectivity and sync with laptops have become as essential as a mobile phone that can just make a call. While buying a new mobile phone, I rely on the recommendation from my tech savvy friends who are avid followers of the mobile phone market. The early adapters of new technology are looked upon and relied for advice while buying a new phone, more than trusting the self-research on net. If I have only 8K to spend I will obviously not look for 3G and stuff, I would rather go for the maximum number of features possible to get at such a price range. When I have 15k, I will look for a customized version that suits my needs like music player with a good quality etc. If i am spending 15K on a mobile set, it better be good. Its kind of a show off to the outside world. When we gave a budget constraint of Rs. 8000, the group oriented itself along the features that can be provided at such a price tag. Basically, in this segment they were looking for a large number of features but were still clear about the features that cannot be provided at such a price tag. Not everybody in the group was aware of the new features and hi-tech features like file organizers and others, which can be useful in their day-to-day life. When the budget constraint was removed and the phone that they could buy was put at above Rs.15000, they started looking for customized mobile phones that served as a lifestyle product.

Key Insights from Primary Research

1. Young students and professionals are increasingly become more aware about the latest features in mobile phones through tech magazines and online reviews. They view a mobile phone as a complete lifestyle product instead of a mere wireless communication device. 2. Youth who were working showed a strong preference for some business phone features like push mail, document editor, reader etc. On the other hand, youngsters who are still studying (in their post graduation) showed a reasonable amount of preference for entertainment features like camera and music player as well. Therefore,

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3.

4.

5.

6.

7.

8.

a strong linkage was observed between the respondents profession and feature preferences. Preference for smartphones especially with iOS and Android was observed as one of the key emerging trends through our discussions. Youngsters were very excited about the whole new world of mobile apps made accessible through smartphones, and aspired to own them. Given the fact that the dispensable incomes in the urban households in India are rising and youngsters are becoming more brand conscious, the qualitative study reinforced that youngsters are willing to pay extra to get a good set of features that suits their personality and lifestyle. Primarily, two kind of price segments have emerged from the expert interviews, interviews with youngsters and focused group discussions, namely: a. Rs 5000- Rs 8000 b. Rs 15000-Rs 20000 Another key observation was that the respondents in the lower price segment of Rs 5000-Rs 8000 were reasonably aware of the absence of any good smartphones in this price range. They were also averse to buying a cheaper smartphone with inferior quality features or touchscreen. We could infer that a feature phone with a careful selection of features desired by these customer segments might be a better product to launch in this price segment. On the contrary, respondents in the higher price segment of Rs 15000-Rs 20000 seemed to have a very clear preference for the smartphones like Android or Windows. Therefore, it was inferred that it is better to launch a smartphone in this price range. In order to evaluate the features preferred by respondents, we employed the laddering technique while interviewing and analyzing the same. Since we had made three broad clusters for evaluating consumer feature preferences (Common, Utility and Technological), we apply the A-C-V sequence on these three broad clusters: a. Common Features (looks, weight, shape, screen etc.) i. Attributes: Respondents view these features as hygiene factors. A feature-phone should do reasonably well on these parameters to be considered seriously by a consumer. However, it is not a differentiator for most of the people in the smartphone category. ii. Consequences:Aesthetics of a phone act as a style statement for many youngsters and should complement their personality. More so, in the feature-phone (Rs5000-Rs8000) segment, the lack of mobile apps and touch screen is compensated by good looks. iii. Core Values: Preference for these factors arises from the need of youngsters to look good and stylish in order to belong in their respective groups.
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b. Utility Features (Dual Sim, In-Built Memory, Media Player etc) i. Attributes: Respondents view these features as complements or enhancers to their lifestyle. Preference of music, video, camera show that consumers value a multifunctional product more than a single functional product. ii. Consequences:This allows the consumer to do more and extract more out of a single device, which he can carry with himself around easily. It enables them to be entertained on the go. iii. Core Values:Given the paucity of time in the life of todays youth, the need to multitasking has increased significantly. Therefore, a preference for multifunctional phones has risen. c. Technology Features (Wi-fi, Bluetooth, Mail, Maps, Apps) i. Attributes: Technology features enable the users to exploit the various technological innovations mainly on the web space for their daily usage. A good array of technological features replaces the need for a mobile computer/tablet for a user to a great extent. ii. Consequences: A consumer can stay in touch with friends, colleagues through Internet, mail, mobile Facebook etc. Availability of various mobile apps enable users to customize their phone experience as per their needs in the form of document editors, ebook readers, pus mail etc. iii. Core Values: Technologies like Internet and social networking play an integral role in the lives of the youth today. Therefore, a phone, which enables them to stay connected, bridges that gap to a great extent.

Questionnaire Design
Design of part 1 This part is designed to obtain the demographic data. Through this we intend to obtain the age bracket and the income group of the respondent. Also we wish to establish the educational background of the individuals and also getting the contact information for contacting them later, as and if required. Design of part 2 This deals with getting the overall details of the respondents with questions on the annual income and education level. Both these variables were coded suitably so that the final quantitative analysis is made easier.

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The part also includes questions pertaining to the mobile phone usage pattern of the respondents. The questions included the time of getting the first mobile phone and the importance that mobile phones hold in the lives of the respondents. In the question regarding importance, they were asked to tick the right option among the 5 given ones. Design of part 3 The part 3 sought to establish how central the mobile phone is in the lives of respondents with questions on the number of calls made daily from the phone (on an average) and the number of messages sent during the same time frame. Design of Part 4 Now we come to the leitmotif of the questionnaire, Part 4 deals with the price range that the customer will want to buy the mobile phone handset in. From the primary and the secondary data we found that the mobile phones in the range 5000-8000 and 15000 above were the ones with the maximum appeal and hence in this quantitative part we have given only these two options. Those that answered for the range greater than 15000 will be asked to fill up an extra part (part 10), which deals with the branding of mobile phones as lifestyle product. Design of part 5 This part explains what are the basic features that customers are expecting from a mobile phone and their preference for each feature. This gives insights about which feature we have to incorporate in our new mobile and which features we don't have to include. A balance of these inputs from these parameters will give us a best combination of features and the features which we can stay away without compromising the value provided by the instrument. Design of Part 6 The common features mostly focus on external and tangible aspect of mobile phones which the customers experience in regular usage. Some parameters are very costly to incorporate but a relative low preference for that parameter will help us in saving manufacturing cost. The detailed inquiry into these customer preferences will reveal the basic expectations and some features which are not so important but they want them just for a value addition. Design of Part 7 The utility features describe customers interaction with mobile phone. How comfortable customer is with the user interface and additional features of mobile phone. We included some basic features and some value addition features to judge the requirements of
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customers. The usage pattern and importance of each feature will give us insight on how much focus we should give to a particular feature. Which features customization will add more value to our new mobile phone? Design of Part 8 This part focuses on the Technology features of the mobile phones as described earlier in the report. These questions will help us in gauging the features, which are the most desired by the consumers. These features will find relevance in both smartphones and feature-phones categories. Design of Part 9 This part tries to evaluate the relative importance of mobile phone accessories and the desirability of the same from the customer perspective. Even though accessories are not a direct part of the mobile phone, they still add value for the customer by enhancing their product usage. Therefore, we have included the same in our questionnaire. Design of Part 10 The life style features specifically focused on smart phone users. How important is he software and operating system required to support these features can be studied from the feedback on the services requested by the customers. The lifestyle features requirement is different for different customers requiring a varied combination of processor, software, and memory. This will help us to decide a most acceptable combination of hard drive, operating system, and processor speed, upgrade ability.

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QUESTIONNAIRE
Part 1 Name Age Phone number Mobile Number E-mail Id Part 2 Respondent Id Name Sex (Codes: 1-Male;2-Female) Education Level EDU* (See Codes Below) Annual Income (Codes:1- Lower (<3L);2-Middle(3-9), 3-Upper(>9) How long ago did you first acquire the mobile phone? Codes(1-<1 yr;2-1-4 yrs;3->4 yrs) How important is a mobile phone for you? Years

Very importa nt

Important Neutral Not importa nt

Not applicabl e

At present, how many Mobile handsets do you use? At present, how many Sim cards do you use? Monthly expenditure on mobile phones? EDU*: (Codes: 1- Illiterate, 2- Literate but without formal schooling, 3- Below Primary, 4Primary, 5-Middle, 6- High school/ Matriculate/Matric, 7- Higher Secondary/Intermediate, 8Technical Education/ Diploma/ Certificate/ Vocational, 9- Graduate, 10- Post Graduate, 11- Professional Degrees and Higher Research Degrees)

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Part 3

How many calls do make on your mobile phone per day, on an average? How many messages do you send from your phone per day? Codes: 1-None; 2 -1 to 5; 3-5 to 10; 4-10 to 20; 5-morte than 20

Part 4

Price Range Tick the chosen one Skip last question if coded 1. While buying a Mobile phone:-

5000-8000 (code 1)

>15000 (code 2)

Part 5

What are the important factors that you look for? (Give a score between 1 to 10 for each.) 1 Price 2 Quality 3 Looks 4 Utility Features 5 Technological Features 6 Brands 7 Peer group Pressure 8 Others, Please Specify What are the common features that you look for? (Give a score between 1 to 10 for each.) 1 Metallic Body 2 Screen-color 3 Screen-Dimension or Size 4 Weight 5 Others, Please Specify What are the common Utility Features that you look for? (Give a score between 1 to 10 for each.) 1 Phone Book Memory 2 Dual Sim 3 FM Radio 4 MP3 player

Score

Par t 6

Score

Part 7

Score

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5 6 7 8 9 Part 8

In built/Expandable memory Camera/video Battery back up Web Enabled Others, please specify

What are the common technological features that you look for? 1 Bluetooth 2 Wi-fi 3 Java Support (games) 4 Form Factor 5 Touch screen 6 Social networking 7 Mobile tracker 8 3G network 9 Operating System (Android, windows etc.) 10. Burn test rating 11 Others What are the accessories that you look for? (Give a score between 1 to 10 for each.) 1 Ear Phones 2 Mobile Cover 3 Blue tooth 4 Additional panel 5 Memory Card 6 USB 7 Others, Please Specify What are the Lifestyle features that you look for? App stores Screen Size Fluidity of touch Processor speed Maps Document editing Book reader(e-books) Score

Pa rt 9

Part 10

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