Term Paper A Syudy On Consumer Buying Behavior Towards Smart Phones

RASHI GARG 137634
MBM 203
TERM PAPER
A SYUDY ON CONSUMER
BUYING BEHAVIOR TOWARDS
SMART PHONES
CONSUMER BUYING BEHAVIOR TOWARDS SMARTPHONE Page 1
SUBMITTED BY
RASHI GARG
137634
2
ND
SEM
RASHI GARG 137634
CONTENTS
Executive Summary
Chapter1. Introduction
1.1smartphone
1.2 Introduction Of Some Popuar Smartphone !rands
Chapter2. O"#ectives Of The Study
Chapter$. Need Of The Study
Chapter %. &esearch 'ethodoo(y.
Chapter ). *ata +naysis , Interpretation
Chapter -. Concusion , &ecommendation..
Chapter .. &eferences.
Chapter 1/. +ppendix
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E0EC1TI2E S1''+&3
This project has been a great learning experience for me. At the sometime it gave me enough scope to
implement my analytical ability.
The first part of the project gives the overview of smart phone brands. Here we talk about the various
types of factors affecting smart phones purchase and also give an overview of consumer buying
behaviour. All the topics have been covered in a very systematic way. The language has been kept simple
so that even a layman could understand.
The Second part consists of research and their analysis, collected through a survey done on ! people.
The study was carried out in "anpur in at various outlets and major markets of the city. The data
collected have been well organi#ed and presented. Hope the research findings and conclusions will be of
use.
The Third part consists of conclusion and recommendation which is actually drawn apart from the result
of survey done on ! peoples. The basic thing that i analy#ed from data collected is that there is great
variation in the perception of consumers towards smart phones.
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1. INT&O*1CTION
$obile technology has revolutioni#ed our communication platform. Small%form handheld devices such as
mobile phones and tablets are smarter, so higher potential for consumers to use them for different
purposes. &umber of people who use Smartphone on a daily basis has kept growing in the past few years.
'ith competition accelerating in fashion industry, Smartphone Apps have been used widely in delivering
value%added services. Smartphone sales in (ndia increased by )**.+, making it the world-s fastest
growing Smartphone market in the last .uarter of /!). (t also revealed that worldwide, smart phones
sales now account for 0.*, of overall mobile phone sales in /!), exceeding annual sales of feature
phones for the first time.
1.1Smartphone
A Smartphone is a mobile phone that integrates a feature phone and a mobile computing platform, and the
models today even combine functions such as digital cameras, media players, high%speed data access via
'i%1i, 23S navigation, and other applications. Typically, smart phones also comprise web browsers and
high%resolution touch screens, which provide people better browsing experience. 'hile a traditional
feature phone includes some basic software such as an address book and games, a Smartphone has the
capability of doing more. 4ne of the significant differences between a feature phone and a Smartphone is
that a Smartphone can install third%party applications from applications store. 5sers are able to download
and install application on their operating systems, such as personal finance managers, time schedule,
navigators, and games. 2enerally, a Smartphone is based on a certain operating system that allows phone
users to install applications on it. Systems include Apple-s i4S, 2oogle-s Android, $icrosoft-s 'indows
3hone, &okia-s Symbian, and 6im-s 7lackberry 4S.Smartphones industry is meeting new standards
everyday. (n the year /!) we have seen new products and new highs and lows in the market. The
industry in (ndia is facing challenges and an increased flow of budget handsets. The market also
responded well to new flagship launches. 'hat has the new year in store for the smartphone market8
'hat will the direction of trends in this industry in /!)98 'e bring you a speculation of how the industry
will change in /!)9 in (ndia for the (ndian and international players.
Android to win over iOS again
Since last two years we have seen Android taking a lead over all other operating systems in the
worldwide sale of smartphones. /!) figures from 2artner, (:; and ;yber media 6esearch pointed to
gradual popularity of Android handsets owing to low cost of these devices.
(n the year /!)9 a new faster $ediaTek processor will bring the octa%core power phone to the budget
of 6s./!!!!. This will make the .uad%core phones <powered by $ediaTek processor= fall below the price
of 6s.)!" making them more affordable then ever. :o you still think Android will not take more market
share in Smartphone segment8 This also will mean that even after the availability of octa-core phones,
quad-cores will register more sales while octa-cores will show a growth.
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Nokia to rise again with Lumia as its backbone
&okia is back in the market registering presence with its >umia and Asha phones. The Asha phones will
get a tough competition from low cost dual and .uad%core Android phones in /!)9. 'e expect &okia to
put lot of effort in >umia range of smartphones, specially on camera, processing power and touch
interface. &ow that &okia mobile division is already a part of $icrosoft, we would also understand that
the cost of 'indows phones will see an new low in /!)9.
HTC and LG to lose more
'here is the innovation with HT; phones8 'e saw ultrapixel camera, metal profile and fingerprint
scanners in HT; smartphones in /!). The company got into a mood to enter the budget segment with
the :esire 0!! which was a decent effort but was costly in comparison to those being offered by the
domestic counterparts. 'hile >2, Samsung and Apple are working of : camera, flexible displays and
more, we are yet to hear rumours about some good innovation from HT;. HT; phones that comes with
decent specs and also fit in pockets making a profit for the company is yet to be seen.
1or >2 though it has been innovative enough to compete with the biggies in smartphone market with
Android 4S phones, the company is not registering huge sale figures. >2 2/ flagship was not a great
sellig device, inspite of all its awesome specs and features. This compnay still needs to create an area for
its products in (ndian market.
Micromax will rule !ut will see competition
$icromax has been ruling the (ndian smartphone market with its cheaper phone and 0%inchers. The many
factors that allow its consolidation of its market position ( good products, and almost nil competition from
the (ndian market. 'e speculate that the year /!)9 will be a difficult year for $icromax, The company is
moving towards a premium segment today and we have seen other coming up with better phones before
$icromax-s flagships. i7erry launched its &uclea &) with better specs than ;anvas 9, (ntex announced
an octa%core before $icromax could announce one. "arbonn, ;elkon, 'ickedleaks, ?en also came up
with good phones that were cheaper than ;anvas counterparts. >ava is yet to announce its (ris 3ro series
of phones and tablets. Tough competitions lies ahead of $icromax will be visible
Mass availa!ilit" o# #lexi!le displa" phones will start !ut $ndians have to wait
Samsung and >2 made a debut on the flexible display phones this year with two new entrants% 2alaxy
6ound and 2 1lex. This year Apple got a patent on 4>@: display and rumors and leaked information till
date shows Apple will also be working on such smartphone displays. The pressure definitely builds up
with three competitors. 'e speculate the two korean companies will try and buckle up mass production of
flexible displays to flood the market before Apple brings one. Apple might go for such a phone in /!)0.
'hile the (nternational smartphone industry go through all the flexi%upheavals, (ndia will remain away
from the flexible phones. These will come at a premium price point making them unaffordable. They will
reach only few pockets, and we will have to wait for some time till ;hinese manufacturers come with
cheaper flexible options. This we do not see happening in /!)9.
%aster processors to #lood mar&et
Samsung has got its @xynos octa%core processor in the market. To answer this $ediaTek launched its
octa%core processor in /!). (ndian market will see ;anvas octa%core, (ntex octa%core and many others
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using this processor in /!)9. /!)9 will also see the Aualcomm Snapdragon +!0 processor based faster
phones in later half of next year. 'e can say, /!)9 is going to be a year of faster processors.
Camera and !atter"
'e speculate that for the next year smartphone manufacturers will move out of the + megapixel camera
category. $ost of the phones launches <flagships and other premium phones= = that will take place in
/!)9 will sport a )/ megapixel or higher camera with better image stabili#ation systems.
The battery backup will also improve in /!)9 with new products that could support talk time of )0%/!
hours in Smartphone-s.
Mo!ile 'hone ( Smartphone Mar&et )orth *+,1., -illion -" ./10
According to a new market research report, B'orld $obile phone C Smartphone $arket </!)! D /!)0=-,
the total global mobile handset market is expected to reach 5SE9).9 billion by /!)0 while smartphone
sales will account for F0.+, of the overall mobile handset revenue at 5SE/0+.G billion in the same year.
Apple is expected to lead the growth till /!)0 commanding largest share of the overall mobile handset
revenue with /0.+, market share while &okia will be at the second place with /), market share. The
global smartphone market is expected to register higher ;A26 </9.G,= as compared to overall mobile
handset market <)9.F,= during /!)! and /!)0.
7rowse over )!! $arket :ata Tables and (n%:epth Table of ;ontent on $obile 3hone C Smartphone
$arket. After facing a dip of *.), revenue%wise and /.+, shipment%wise in /!!G, the global mobile
handset market has come back strongly to register )/./, growth in terms of revenue and )).+, shipment
growth in /!)!. There were ),/F+ million mobile handsets shipped which worth 5SE)F/./ billion in
/!)!. The growth in mobile handset market was enabled by increased consumer interest in high end
smartphones, reduction of smartphone prices, improved network coverage along with introduction of key
technologies including 2 and expected 92 roll outs in emerging markets and aggressive expansion plans
on the part of key suppliers.The global smartphones market registered growth at a brisk pace, accounting
for //, of the global mobile handset sales in /!)!. This high growth has been backed by rapid
technology developments such as high%speed internet browsing, sophisticated personal and professional
data management, and the evolution of 2 and 92 network technologies. The Asian region, especially,
(ndia and ;hina have emerged as smartphones hotspot with the continuous development of cellular
markets and the increasing 2 penetrations and expenditure on consumer electronics across the region. (n
relatively saturated markets, such as the &orth America and @urope, operator-s subsidies and carrier wars
has been fuelling the growth of the smartphones market in the region. The global smartphones market is
estimated to reach E/0+.G billion in /!)0 from about E+0.) billion in /!)!.
2lobal Smartphones market was one of the very few markets which remained insulated during the
economic recession. The smartphones market cornered annual growth rate of /G.0, in /!!G over /!!+
which further increased to 0G., in /!)! over /!!G to reach E+0.) billion.
The global smartphones device market is generally classified into business smartphones and consumer
smartphonesH consumer is the larger and fastest%growing market, accounting for approximately I9th of
the global smartphones revenue. However, the business smartphones segment is expected to be the
dominating one in the future particularly due to the increasing traction of mobility among enterprises. (n
terms of interface touchscreen has emerged as the preferred one, representing G.*, of global shipments,
followed by keypad input type with a )./, share. @ach sub%segment of the global Smartphones market
is calculated for the four geographical regions of &orth America, @urope, Asia%3acific, and 64'. @urope
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is leading the market in /!)! with a .+, shipment shareH Asia%3acific is expected to closely follow the
@uropean market in near future with large mobile subscriber base in ;hinese and (ndian markets and high
smartphones adoption rates. The Asia%3acific smartphones market shipment stood at +F.+ million in /!)!
which is expected to reach /G9.) million in /!)0 growing at a ;A26 of /F., during /!)! D /!)0.
1.. $1T2O34CT$O1 O% SOM5 'O'4LA2 SMA2T'HO15 -2A13S
SAMS41G1rom its inception as a small export business in Taegu, "orea, Samsung has grown to
become one of the worldJs leading electronics companies, speciali#ing in digital appliances and media,
semiconductors, memory, and system integration. Today SamsungJs innovative and top .uality products
and processes are world recogni#ed. This timeline captures the major milestones in Samsung-s history,
showing how the company expanded its product lines and reach, grew its revenue and market share, and
has followed its mission of making life better for consumers around the world.
HTC is one of the fastest%growing companies in the mobile sector and has achieved remarkable
recognition over the past couple of years. 7usiness 'eek ranked HT; as the second best performing
technology company in Asia in /!!Fas well as giving the company the number spot in its 2lobal listing
in /!!*.Since launching its own brand )+ months ago the company has introduced do#ens of HT;%
branded products around the world.
-lac&!err" and Apple The two major smart phone manufacturers of the world, and both has a huge
number of fan following and users. Though it is a matter of personal choice and preference, as to what to
choose. (n this study were going to analy#e customer preferences and characteristics in order to better
define customer segments, determine which customers to focus marketing efforts on, and what features
are most important to those customers.
2.&E2IE4 O5 6IT&+T1&E
TH5 35%$1$T$O1 O% CO1S4M52 -5HA6$O2
Hawkins, 7est and ;oney </!!9= considered that consumer behavior is the study of why, when, where,
and how individuals, groups, or organi#ations and the processes they use to select, secure, use, and
dispose of products, services, experiences, or ideas to satisfy needs and the impact that these processes
have on the consumer and society. This definition is rather broader than the traditional point of view,
RASHI GARG 137634
which indicates that consumer behavior focuses on only the circumstance before and after the buying
behavior. The broad sense would be helpful for study elements that affect consumer behavior, including
elements from sociology, psychology, and economics.
Conceptual #ramewor&
7ased on the current usage of Smartphone Apps service, this study draws on the flow of consumer
behaviorK appraisal L emotional response behavior <7aga##i,)GG/ =. This framework has been widely
employed and proved to be effective in explaining different types of consumer behaviors <Stephens C
2winner, )GG+H ;ronin, 7rady C Tomas, /!!!H Mi C 7aumgartner, /!!9=.This study intends to
investigate how the service components provided by Smartphone Apps would induce customers-
intention to use of Apps%commerce. $ore specifically, the interrelationships between customers-
appraisal of Apps%commerce in extrinsic prospect <e.g. perceived usefulness, perceived risk= or emotional
prospect <e.g. perceived enjoyment=, attitude and behavior intentions <e.g. initial adoption,
recommendation= are examined, in order to understand consumers- intention for future adoption in better
manner.
Growing popularit" o# Smartphone
(n the short period of decade D about 9!years, mobile technology has greatly improved human
communication. &umber of mobile users and subscribers has kept growing in a rapid rate, and its
popularity is expected to arise in the coming decade. According to the research conducted by $organ
Stanley </!))=, shown in figure /.), demand on mobile device includes Smartphone and tablet is
anticipated to grow in an unprecedented rate and even exceed the demand of traditional technology
products. This remarkable growth proves an indisputable importance of Smartphone in the near future.
2apid growth o# Apps
Smartphone Apps is one of the rapid growing elements in the market of mobile software. According to
the ;hetan Sharma ;onsulting </!)!=, global no of Apps download has an accumulated significant
growth in the past few years, by expecting */, growth in amount from /!!G to /!)/ <1igure /./=. 1rom
the latest announcement of Apple <Nuly, /!))=, more than )0 billion Apps has been download from the
Apps store since its launch in /!!+, and wider range of Apps will be available in the market.
'ersonalisation
(n mobile or Smartphone personali#ation context, usefulness can be defined as how the personali#ed
service provided can meet the particular needs of users <>iao, >i C Ou, /!!+=. Smartphone provides
customi#ed offers in Apps, and personali#ation has emerged as one of the essential mobile characteristics
that may positively influence individual-s perceived usefulness <>ee C 3ark, /!!+=.
$. O!7ECTI2E O5 T8E ST1*3
To study consumer motivation for buying a smart phone.
To analy#e the consumer preference for brands of smart phone.
To determine whether there is a significant difference between preferences for features of
smart phones on the basis of gender.
%. NEE* O5 T8E ST1*3
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As numbers of manufacturers have entered the Smartphone market, the competition in the Smartphone
market becomes more and more fierce. &okia,Samsung ,htc,micromex a Smartphone manufacture, used
to dominant the phone market, but, recently, it appears to be losing ground in the Smartphone market. 4n
the other hand, the sale of Apple-s i3hone is growing in an incredible speed. 'hy is it happening8 :id
people-s preference on Smartphone change8 3eople now are living in the highly developed and
technologically advanced society and have a great deal of choices and options to decide on. 1or
Smartphone manufacturers, uncovering consumers preferences and predicting consumer behavior is the
key to con.uer the Smartphone market.
).83POT8SIS
H"pothesis718
HoK There is no difference between preferences for features of smart phones on the basis of gender.
H)K There is a difference between preferences for features of smart phones on the basis of gender.
H"pothesis7.8
HoK There is no association between gender and consumer method of buying a Smart phone.
H)K There is association between gender and consumer method of buying a Smart phone.
H"pothesis +8
HoK There is no association between consumer method of buying and future purchase options for buying
smart phone.
H)K There is an association between consumer method of buying and future purchase options for buying
smart phone.
-.&ESE+&C8 'ET8O*O6O93
9.125S5A2CH 35S$G1
(t is the plan, structure of investigation conceived so as to obtain answer to research .uestion. (t is the
specification of methods and procedures for ac.uiring the information needed.
$t is concerned with8
4verall operational pattern
1ramework of the project
Stipulates what information is needed
The first step that undertakes in the report was the selection of research. The research design, which was
adopted for the study is descriptive in nature.
The two types of research are as followsK
@xploratory researchK (t is to generate new ideas.
:escriptive research: They are well structured. (t can be complex, a high degree of scientific skill
on the part of the demanding a high degree of scientific skill on the part of the researcher. (t can
be taken in certain circumstances. 'hen the researcher is interested in knowing the characteristics
of certain groups such as, gender, profession, a descriptive study may be necessary. (n this ( did
RASHI GARG 137634
descriptive research also because ( want to know the consumer buying behaviour and preferences
towards smart phone.
9..T:'5S O% 3ATA
'rimar" 3ata
The descriptive nature of research necessitated collection of primary data from smart phone users through
survey. Survey was conducted through structure .uestionnaire.
Secondar" 3ata
'ebsites, books etc.
9.+25S5A2CH $1ST24M51TS
( prepared a structured .uestionnaire to collect the data and it consisted of $ultiple%choice .uestions,
direct .uestions and open%ended .uestion
S4265: L$M$TAT$O1S
Time Constraint Sampling was not a perfect representation, could have been larger.
Survey 6en(th Auestions, would-ve liked more to capture more critical data but there were
concerns about the impact on participation.
9.,Sample 'lan
A part of a population or a subset from a set of units which is provided by some process or other.
Method o# Sampling
;onvenience sampling.
;.*+T+ +N+63SIS +N* INTE&P&ET+TION
4hat one reason ma<es you purchase a smart phone=
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$nterpretation8
/+, of consumer said that the reason for purchase of a smart phone is its features followed by multi
tasking <9,=.
4hich "rand of smart phone you prefer the most=
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$nterpretation8
Apple <),= is the most preferred brand by consumers followed by Samsung<!,= and HT; </!,=
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4here did you oo< for the information "efore purchasin( a smart phone=
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$nterpretation8
$ostly consumer collects the information from internet websites <0/,= and then they trust word of mouth
</),=.
*id you ta<e advice from someone ese=
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RASHI GARG 137634
$nterpretation8
9 , of consumer said they had consulted with someone already used the same while , of consumer
consulted with someone tech savvy.
4hich method of "uyin( ?i you use for future purchase=
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$nterpretation8
0* , of consumer said they will go for particular brand while other 99, said they will go for different
brand.
If in case you ?i "uy a smart phone in future you ?i (o for ?hich "rand=
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7>A;"7@66M $ )!,
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HT; ; /9,
SA$S5&2 2 F,
$nterpretation8
1or purchase of smart phone in future consumer are more interested in brands like Apple followed by
HT; and Samsung.
4hich type of advertisin( do you fee is most effective for smart phones=
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4TH@6 / !,
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$nterpretation8
The most effective medium for advertisement as per consumers view is internet websites <90,= followed
by T.P </+,=.
Touch screen @.Pease tic< as per your preference for feature you ?ere oo<in( ?hie "uyin( a smart
phone=A
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$4ST36@1@66@: ) )F,
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$nterpretation8
9) , of consumer said that touch screen is preferred as a feature while /9,of consumer prefers it
somewhat.
4iB5i @.Pease tic< as per your preference for feature you ?ere oo<in( ?hie "uyin( a smart
phone=A
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S4$@'HAT36@1@66@: 2 F,
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$nterpretation8
9), of consumer preferred 'ifi and +, of consumer said it is most preferred for them.
9P&S @.Pease tic< as per your preference for feature you ?ere oo<in( ?hie "uyin( a smart
phone=A

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36@1@66@: ) )+,
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$4ST36@1@66@: ) )+,
$nterpretation8
/G, of consumer said that they somewhat prefer the 23S technology in Smartphone and F, of consumer
least prefer .
+pps @.Pease tic< as per your preference for feature you ?ere oo<in( ?hie "uyin( a smart
phone=A
$nterpretation8
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S4$@'HAT36@1@66@: 1 ,
&@5T6A> 36@1@66@: % ),
36@1@66@: ; /,
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0F, of consumers said that Apps is the most preferred feature for them.
>.CONC61SION +N* &ECO''EN*+TION
$ost preferred brand in smart phone market is Apple followed by Samsung and HT;.
The main reason for smart phone purchase is its features.
(nternet retailers I review I technology websites is an important source of information to consumer.
$ostly consumer wants to opt for different smart phone brands instead of looking for same brand. So
consumer is not brand loyal in case of Smartphone.
Smart phone companies should focus more on advertisements on internet websites.
As consumer wants more and more features so smart phone manufacturers should increase the number of
features. As the consumer prefers word of mouth or consulting someone technology savvy, so smart
phone brands must maintain their good will and increase services.
..&E5E&ENCES
)e!site 2e#erred
www.scribd.com
www.google.com
www.wikipedia.com
www.htc.com
www.apple.com
www.samsung.com
httpKIIwww.medianama.comI/!)9I!/I//%india%smartphone%marketI
httpsKIIdspace.wul.waseda.ac.jpIdspaceIbitstreamI/!*0I+)/)I)IShokenShuronQ/!)/QGQ>iao.pd
httpKIIwww.studymode.comIessaysI;onsumer%3erception%4n%7uying%7ehaviour%Towards%)F990!.html
httpKIIdaily.bhaskar.comIarticleI2A:%top%)!%trends%for%indian%smartphone%market%for%year%/!)9%
99**!)+%3H4.html8se.R)/f
httpKIIwww.prweb.comIreleasesImobile%phone%marketIsmartphone%marketIprweb))/9/!+G.htm
1/.+PPEN*I0
;uestionnaire
&ame%QQQQQQQQQQQQQQQQQQQQQQ
$obile%QQQQQQQQQQQQQQQQQQQQQ
A). :emographic
2ender%QQQQQQ
Age%QQQQ
@ducational >evel%QQQQQQQQQ
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3rofession%QQQQQQQQQQQQQQQQ
A/. 'hat one reason makes you purchase a smart phone8
)=.6e.uired for 'ork
/=.1eatures.
=.Status symbol.
9=.$ulti Tasking.
A.'hich brand of smart phone you prefer the most8
)=.Apple.
/=. 7lackberry
=. HT;
9=. Samsung
0=. micromex

A9.3lease tick as per your preference for feature you were looking while buying a smart phone8
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A0. <a=.'here did you look for the information before purchasing a smart phone8

)=.(n Store promo :isplay.
/=.(nternet retailersI reviews I technology websites.
=.Television I &ewspaper.
9=. 'ord of mouth
<b=. :id u take advice from someone else8
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)=. someone having latest technological update.
/=. someone recently bought the same.
=. someone already used.
A*. Tick the appropriate optionK
a=.'hich method of buying will you use for future purchase8
)=. Search options with in a particular brand.
/=.2o for different brand
<b=. (f in case you will buy a smart phone in future you will go for which brand8
)=. Apple.
/=. 7lackberry
=. HT;
9=.Samsung
0=.;ant say now.
AF=. 'hich type of advertising do you feel is most effective for smart phones8
)=.Television
/=.&ewspaper.
=.$aga#ine.
9=.(nternet websites.


Term Paper A Syudy On Consumer Buying Behavior Towards Smart Phones

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Term Paper A Syudy On Consumer Buying Behavior Towards Smart Phones

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