Consumer Behaviour Towards Smartphones

Consumer Behaviour towards Smartphones
Introduction
1
Apple
EY COMPETITORS
Strong competitor in the prosumer customer segment 15% of current smart

phone market share
Advantages: Brand awareness and variety of application downloads
Disadvantages: Price point and limited to AT&T GSM network
Blackberry
Low cost OS with open development
Advantages: Scalable and flexible functions on a variety of smart phones
Disadvantages: Low adoption and low number of available apps (both are rapidly
increasing).
Blackberry and Apple are 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. In this study we are going to
analyse 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.
Globally, RIM holds 15% of the smart phone market share.
Although this is a rather substantial portion of the available market, RIM faces
threats from close smart phone competitors and is constantly rivalling to stay on
top. Smart phone competitors consist of: High Tech Computer (HTC), Apple,
Nokia, Googles Android, Samsung and Palm. Apples smart phone net sales for
the fiscal year end September 2009 was $11.8 billion. In 2010, research shows that
Apple smart phones seized 13.3% of the global market share as their 3GB iphone
is growing in popularity selling for $199 with a service contract (Data monitor,
2009; Toronto Star, 2009). Additionally, the iPhone

provides a competitive advantage, as the device is able to run upwards of 85,000
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applications providing higher utility for customers.
HTC:
HTC Corp, (TAIEX: 2498) produces powerful handsets that continually push the
boundaries of innovation to provide true mobile freedom.
Founded in 1997 by Cher Wang, Chairwoman, HT Cho, Director of the Board &
Chairman of HTC Foundation, and Peter Chou, President and CEO, HTC made its
name as the company behind many of the most popular operator-branded devices
on the market. It has established unique partnerships with key mobile brands,
including the leading five operators in Europe, the top four in the US, and many
fast-growing Asian operators. It has also brought products to market with industry
leading OEM partners and, since June 2006, under its own HTC brand.
HTC is one of the fastest-growing companies in the mobile sector and has achieved
remarkable recognition over the past couple of years. Business Week ranked HTC
as the second best performing technology company in Asia in 2007 as well as
giving the company the number 3 spot in its Global listing in 2006.
Since launching its own brand 18 months ago the company has introduced dozens
of HTC-branded products around the world.
Products & Innovation
HTC is known for its innovation. It is constantly broadening the range of devices it
offers introducing devices to support specific applications and new form factors
that meet the increasingly diverse needs of its customers and partners.
HTC's product portfolio offers easy-to-use solutions that embrace the full range of
mobile multimedia resources, wireless anytime and Internet on the go.
First Microsoft Windows 5.0 Smartphone (2006)
First Tri-band UMTS PDA First intuitive touch screen to allow finger tip
navigation (June 2007)
In early 2006, HTC launched a powerful new device with a groundbreaking form
factor: the HTC Advantage. The HTC Advantage is the worlds most powerful
office, boasting a 5" screen and full detachable QWERTY keyboard. This was

followed in early 2007 with the introduction of the HTC Shift. Equipped with
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Windows Vista this device includes a brilliant 7-inch widescreen touch display and
a 40 gigabyte hard drive.
HTC launched the HTC Touch in June 2007 as the result of extensive R&D and
the conviction that fingertip control would enable more intuitive navigation. The
groundbreaking HTC Touch is equipped with TouchFLO so that consumers
just sweep their finger across the screen to get access to the most commonly used
content, contacts and features in a simple finger flick.
HTC aims to continually develop smart new devices that empower users on the go,
providing more freedom in the way they live their lives.
SAMSUNG:
From its inception as a small export business in Taegu, Korea, Samsung has grown
to become one of the world's leading electronics companies, specializing in digital
appliances and media, semiconductors, memory, and system integration. Today
Samsung's innovative and top quality products and processes are world recognized.
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.
The digital age has brought revolutionary change and opportunity to global
business, and Samsung has responded with advanced techno-logies, competitive
products, and constant innovation.
At Samsung, we see every challenge as an opportunity and believe we are perfectly
positioned as one of the world's recognized leaders in the digital technology
industry.
Our commitment to being the world's best has won us the No.1 global market share
for 13 of our products, including semiconductors, TFT-LCDs, monitors and
CDMA mobile phones. Looking forward, we're making historic advances in
research and development of our overall semiconductor line, including flash
memory and non-memory, custom semiconductors, DRAM and SRAM, as well as
producing best-in-class LCDs, mobile phones, digital appliances, and more.

OBJECTIVE
4
To study consumer motivation for buying a smart phone.

To analyze 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.
To identify the most effective medium for advertisement of smart
phone.
Hypothesis
Hypothesis-1:
Ho: There is no difference between preferences for features of smart phones on the
basis of gender.
H1: There is a difference between preferences for features of smart phones on the
basis of gender.

5
Research Methodology
Research Design:
It is the plan, structure of investigation conceived so as to obtain answer to
research question. It is the specification of methods and procedures for acquiring
the information needed.
It is concerned with:
Overall operational pattern
Framework 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 was descriptive in nature.
The two types of research are as follows:
Exploratory research: It is to generate new ideas.
Descriptive research: They are well structured. It 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. It can be taken in certain circumstances. When
the researcher is interested in knowing the characteristics of certain groups such as,
gender, profession, a descriptive study may be necessary.

In this I did descriptive research also because I want to know the consumer buying
6
behaviour and preferences towards smart phone.
Primary Data
The descriptive nature of research necessitated collection of primary data from
smart phone users through survey. Personal Interview method will be used and
interview would be conducted through structure questionnaire.
RESEARCH INSTRUMENTS
We prepared a structured questionnaire to collect the data and it consisted of
Multiple-choice questions, direct questions.
SURVEY LIMITATIONS
Time Constraint - Sampling was not a perfect representation, could have been
larger.
Survey Length - Questions, wouldve liked more to capture more
critical data but there were concerns about the impact on participation.

7
DATA
INTERPRETATION
AND
ANALYSIS

1) Age?
Age Group
15-20
21-26
27-32
32 and above
Total
Responses
4
22
0
1
27
In %
14.81
81.48
0
3.70
100.00
Age
32 and above
27-32
Responses
21-26
15-20
0
10
15
20
25
Interpretation:
81.48% of respondents were in the age group of 21-26 years

2) Gender
Gender
Male
Female
Total
Responses
19
8
27
In %
70.37
29.63
100.00
Responses
8
Male
Female
19
Interpretation:
70.37% of respondents were male.

3) Most Preferred Brand
10
Brand
Samsung
Apple
HTC
Micromax
Nokia
Total
Responses
17
9
4
4
2
36
In %
62.96
33.33
14.81
14.81
7.41%
Preferred Brand
Nokia
Micromax
Responses
HTC
Apple
Samsung
0
10
12
14
16
18
Interpretation:
Maximum respondents preferred Samsung followed by Apple and HTC
stands third .

11
4) Average Household Income?
Income Range
0-1 Lac
1-2 Lac
2-3 Lac
3-4 Lac
4-5 Lac
More than 5 Lac
Respondents
0
2
5
2
3
15
In %
0
7.41
18.52
7.41
11.11
55.56
Average Household Income

More than 5 Lac
4-5 Lac
Respodents
3-4 Lac
2-3 Lac
1-2 Lac
0-1 Lac
0
10 12 14 16
Interpretation:
For 55.56% of respondents surveyed average household income is more than
5 Lakhs.

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5) How much are you ready to pay for a smart phone?
Price Range
5,000-15,000
15,000-25,000
25,000-35,000
35,000-45,000
More than 45,000
Total
Respodents
12
5
6
3
1
27
In %
44.44
18.52
22.22
11.11
3.70
100.00
Price ready to pay for a SmartPhone

More than 45,000
35,000-45,000
Respodents
25,000-35,000
15,000-25,000
5,000-15,000
0
10
12

13
Respodents
5,000-15,000
15,000-25,000
12
6
5
25,000-35,000
35,000-45,000
More than 45,000
Interpretation:
From the responses received we can infer that most of the respondents
(60%) are willing to spend upto Rs. 25,000 for a smart phone.

6) Rank the following on the basis of your preference for a new Smartphone?
(1 - Most Important, 7 - Least important)
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Criteria
OS
Camera
Screen Size
Price
Brand
Warranty
EMI Options
Average Ranking
2.11
2.67
2.81
8.78
2.11
3.48
5.85
Average Ranking
EMI Options
Warranty
Brand
Average Ranking
Price
Screen Size
Camera
OS
0
9 10
Interpretation:
For most of the respondents surveyed their major preference is for EMI
options available for the Smartphones, followed by Warranty.

15
7) How frequently do you change your Smartphone?
Answer Choices
< 6 Months
6 months to 1 yr
1 to 2 yr
> 2 yr
Responses
5
4
11
15
In %
11.11
7.41
33.33
48.15
Responses
> 2 yr
1 to 2 yr
Responses
6 months to 1 yr
< 6 Months
0
5 10 15 20 25 30 35 40 45 50
Interpretation:
For 48.15% of respondents surveyed, they would prefer to change their
Smartphones after 2 years.

16

8) For what purpose you use your Smartphone the most?
17
Answer Choices
Stay Connected
Research & news
Navigate
Keep Entertained
Manage & Plan
Responses
25
11
10
11
9
In %
92.59
40.74
37.04
40.74
33.33
Responses
Manage & Plan
Keep Entertained
Responses
Navigate
Research & news
Stay Connected
0
20
40
60
80
100
Interpretation:
For 92.59% of respondents surveyed, they use their Smartphone mostly to
Stay Connected....

18
9) Whom do you ask before buying a Smartphone?
Answer Choices
Family
Friends
Online Research
TV Shows reviews
Sales Person
Responses
2
9
22
0
2
In %
3.70
29.63
62.96
0
3.70
Responses
Sales Person
TV Shows reviews
Responses
Online Research
Friends
Family
0
10 20
30 40
50 60
70
Interpretation:
For 62.96% of respondents surveyed, they would seek review from online
Research before buying a Smartphone.

10)
19
Do you prefer to buy Smartphone Online?
Answer Choices
Yes
No
Responses
12
25
In %
25.93
74.07
Responses
Yes
No
Interpretation:
For 74.07% of respondents surveyed, they would not buy the Smartphone
Online and would prefer to buy Offline.
CONCLUSION:
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Most preferred brand in smart phone market is Samsung followed by Apple
and HTC.
The main reason for smart phone purchase is its features and to stay
connected.
Online buying is least preferred option for buying smart phones.
There is no difference between preferences for features of smart phones on
the basis of gender.

Consumer Behaviour Towards Smartphones

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Consumer Behaviour towards Smartphones

Strong competitor in the prosumer customer segment 15% of current smart