A

Project Report
On
CONSUMER BEHAVIOR
TOWARDS
SMARTPHONES IN INDIAN MARKET
(EMPHASIS ON iPhone & Android Phones)
Submitted to the University of Rajasthan, Jaipur
For the degree of
Bachelor of Business Administration

Supervised by:

Submitted by:

Dr.Shikha Bakshi

Rishabh Koolwal

Department of BBA

BBA Part II

St. XAVIERS COLLEGE, JAIPUR

2015-16

CERTIFICATE

This is to certify that Mr. Rishabh Koolwal, the student of St.

Xaviers College, Jaipur has prepared his project report entitled
CONSUMER BEHAVIOR TOWARDS SMARTPHONES IN INDIAN
MARKET

for

the

degree

of

Bachelor

of

Business

Administration (BBA).
He has worked under my guidance to the best of my knowledge
and belief.
submitted

This is his original work which has not been

to

any

other

institute/organization

for

any

degree/diploma program.

Date:
Mrs. Shikha Bakshi
Pr
oject Supervisor

ACKNOWLEDGEMENT

I hereby take this opportunity to express my sincere gratitude

to the following eminent personalities whose aid and advice
helped me to complete this project work successfully without
any difficulty. I wish to express my heartfelt gratitude to the
following individuals who have played a crucial role in the
research for this project. Without their active cooperation the
preparation of this project could not have been completed
within the specified time limit.

The first person I would like to acknowledge is my guide

Mrs.Shikha Bakshi who supported me throughout this project
with utmost cooperation and patience. I am very much thankful
to them for sparing their precious time for me and for helping
me in doing this project.
I am also thankful to St. Xaviers College for providing various
facilities, which are proved as valuable input resources for
preparation of this project.
I am also obliged by my respondents, whose co-operation has
contributed major part in this project.

DECLARATION
I hereby declare that project report entitled

CONSUMER PERCEPTION
TOWARDS
SMARTPHONES IN INDIAN MARKET
is a bonafide record of work done by me during the project
work and that it has not previously formed the basis for the
award to me for any degree/diploma, associate ship, fellowship
or other similar title of any other institute/society

Date:
Rishabh Koolwal
BBA Part II

CHAPTER NO.

CHAPTER NAME

PAGE

Introduction

6-29

Company
Profile

30-51

Research
Methodology

52-58

Data Analysis

59-73

Conclusion

74-77

Annexure

78-82

CHAPTER 1

INTRODUCTION

CONSUMER BEHAVIOR THEORY

Consumer Behavior is the study of individuals, groups, or
organizations and the processes they use to select, secure, use,
and dispose of products, services, experiences, or ideas to
satisfy needs and the impacts that these processes have on the
consumer
and
society.
It
blends
elements
from psychology, sociology, social anthropology,
marketing
and economics. It attempts to understand the decision-making
processes of buyers, both individually and in groups such as
how emotions affect buying behavior. It studies characteristics
of individual consumers such as demographics and behavioral
variables in an attempt to understand people's wants. It also
tries to assess influences on the consumer from groups such as
family, friends, sports, reference groups, and society in general.
Customer behavior study is based on consumer buying
behavior, with the customer playing the three distinct roles of
user, payer and buyer. Research has shown that consumer
behavior is difficult to predict, even for experts in the
field. Relationship marketing is an influential asset for customer
behavior analysis as it has a keen interest in the re-discovery of
the true meaning of marketing through the re-affirmation of the
importance of the customer or buyer. A greater importance is
also placed on consumer retention, customer relationship
management, personalization, customization and one-to-one
marketing. Social functions can be categorized into social
choice and welfare functions.

The study of consumers helps firms

and organizations improve their
marketing
strategies
by
understanding issues such as how:
The psychology of how consumers think, feel, reason, and
select between different alternatives (e.g., brands,
products, and retailers);
The psychology of how the consumer is influenced by his
or her environment (e.g., culture, family, signs, media);
The behavior of consumers while shopping or making
other marketing decisions;
Limitations in consumer knowledge or information
processing abilities influence decisions and marketing
outcome;
How consumer motivation and decision strategies differ
between products that differ in their level of importance or
interest that they entail for the consumer; and
How marketers can adapt and improve their marketing
campaigns and marketing strategies to more effectively
reach the consumer.
One "official" definition of consumer behavior is "The study of
individuals, groups, or organizations and the processes they
use to select, secure, use, and dispose of products, services,
experiences, or ideas to satisfy needs and the impacts that
these processes have on the consumer and society." Although it
is not necessary to memorize this definition, it brings up some
useful points:
Behavior occurs either for the individual, or in the context
of a group (e.g., friends influence what kinds of clothes a
10

person wears) or an organization (people on the job make

decisions as to which products the firm should use).
Consumer behavior involves the use and disposal of
products as well as the study of how they are purchased.
Product use is often of great interest to the marketer,
because this may influence how a product is best
positioned or how we can encourage increased
consumption. Since many environmental problems result
from product disposal (e.g., motor oil being sent into
sewage systems to save the recycling fee, or garbage
piling up at landfills) this is also an area of interest.
Consumer behavior involves services and ideas as well as
tangible products.

The Main Applications of Consumer

Behaviour:
The most obvious is for marketing strategyi.e., for
making better marketing campaigns. For example, by
understanding that consumers are more receptive to food
advertising when they are hungry, we learn to schedule
snack advertisements late in the afternoon. By
understanding that new products are usually initially
adopted by a few consumers and only spread later, and
then only gradually, to the rest of the population, we learn
that (1) companies that introduce new products must be
well financed so that they can stay afloat until their
products become a commercial success and (2) it is
important to please initial customers, since they will in
turn influence many subsequent customers brand
choices.
Social marketing involves getting ideas across to
consumers rather than selling something. Marty Fishbein,
a marketing professor, went on sabbatical to work for the
Centers for Disease Control trying to reduce the incidence
of transmission of diseases through illegal drug use. The
11

best solution, obviously, would be if we could get illegal

drug users to stop. This, however, was deemed to be
infeasible. It was also determined that the practice of
sharing needles was too ingrained in the drug culture to
be stopped. As a result, using knowledge of consumer
attitudes, Dr. Fishbein created a campaign that
encouraged the cleaning of needles in bleach before
sharing them, a goal that was believed to be more
realistic.
As a final benefit, studying consumer behavior should
make us better consumers. Common sense suggests, for
example, that if you buy a 64 liquid ounce bottle of
laundry detergent, you should pay less per ounce than if
you bought two 32 ounce bottles. In practice, however,
you often pay a size premium by buying the larger
quantity. In other words, in this case, knowing this fact will
sensitize you to the need to check the unit cost labels to
determine if you are really getting a bargain.

Consumer Behaviour is a branch which deals with the various stages a

consumer goes through before purchasing products or services for his end
use.
Why do you think an individual buys a product?
Need
Social Status
Gifting Purpose
Why do you think an individual does not buy a product?
No requirement
Income/Budget/Financial constraints
Taste
When do you think consumers purchase products?
12

 Festive season
Birthday
Anniversary
Marriage or other special occasions
There are in fact several factors which influence buying
decision of a consumer ranging from psychological, social,
economic and so on.
The study of consumer behavior explains as to:
Why and why not a consumer buys a product?
When a consumer buys a product?
How a consumer buys a product?
During Christmas, the buying tendencies of consumers increase
as compared to other months. In the same way during
Valentines week, individuals are often seen purchasing gifts for
their partners. Fluctuations in the financial markets and
recession decrease the buying capacity of individuals.
In a laymans language consumer behavior deals with the
buying behavior of individuals.
The main catalyst which triggers the buying decision of an
individual is need for a particular product/service. Consumers
purchase products and services as and when need arises.
According to Belch and Belch, whenever need arises; a
consumer searches for several information which would help
him in his purchase.
Following are the sources of information:
Personal Sources
Commercial Sources
Public Sources
13

 Personal Experience
Perception also plays an important role in influencing the
buying decision of consumers.
Buying decisions of consumers also depend on the following
factors:
Messages, advertisements, promotional materials,
consumer goes through also called selective exposure.

Not all promotional materials and advertisements excite a

consumer. A consumer does not pay attention to
everything he sees. He is interested in only what he wants
to see. Such behavior is called selective attention.
Consumer interpretation refers
perceives a particular message.

to

how

an

individual

A consumer would certainly buy something which appeals

him the most. He would remember the most relevant and
meaningful message also called as selective retention. He
would obviously not remember something which has
nothing to do with his need.

FACTORS
INFLUENCING
CONSUMER BEHAVIOR
There are 4 main types of factors influencing consumer
behavior: cultural factors, social factors, personal factors and
psychological factors.

14

I. Cultural factors
Cultural factors are coming from the different components
related to culture or cultural environment from which the
consumer belongs.
Culture and societal environment:
Culture is crucial when it comes to understanding the needs
and behaviors of an individual.
Throughout his existence, an individual will be influenced by his
family, his friends, his cultural environment or society that will
teach him values, preferences as well as common behaviors
to their own culture.
For a brand, it is important to understand and take into account
the cultural factors inherent to each market or to each situation
in order to adapt its product and its marketing strategy. As
these will play a role in the perception, habits, behavior or
expectations of consumers.
While if a Japanese offer you a gift, the courtesy is to offer him
an equivalent gift in return.
McDonalds is a brilliant example of adaptation to the
specificities of each culture and each market. Well aware of the
importance to have an offer with specific products to meet the
needs and tastes of consumers from different cultures, the fastfood giant has for example: a McBaguette in France (with
French baguette and Dijon mustard), a Chicken Maharaja Mac
and a Masala Grill Chicken in India (with Indian spices) as well
as a Mega Teriyaki Burger (with teriyaki sauce) or Gurakoro
(with macaroni gratin and croquettes) in Japan.
While all the ingredients used by McDonalds in arabic
and muslim countries are certified halal. The fast food chain not
offering, of course, any product with bacon or pork.
15

Sub-cultures:
A society is composed of several sub-cultures in which people
can identify. Subcultures are groups of people who share the
same values based on a common experience or a similar
lifestyle in general.
Subcultures are the nationalities, religions, ethnic groups, age
groups, gender of the individual, etc..
The subcultures are often considered by the brands for the
segmentation of a market in order to adapt a product or a
communication strategy to the values or the specific needs of
this segment.
For example in recent years, the segment of ethnic cosmetics
has greatly expanded. These are products more suited to nonCaucasian populations and to types of skin pigmentation for
African, Arab or Indian populations for example.
Its a real brand positioning with a well-defined target in a
sector that only offered makeup products to a Caucasian target
until now (with the exception of niche brands) and was then
receiving critics from consumers of different origin.
Brands often communicate in different ways, sometimes even
create specific products (sometimes without significant intrinsic
difference) for the same type of product in order to specifically
target an age group, a gender or a specific sub-culture.
Consumers are usually more receptive to products and
marketing strategies that specifically target them.
Social classes:
Social classes are defined as groups more or less homogenous
and ranked against each other according to a form of social
hierarchy. Even if its very large groups, we usually find similar
16

values, lifestyles, interests and

belonging to the same social class.

behaviors

in

individuals

We often assume three general categories among social

classes: lower class, middle class and upper class.
People from different social classes tend to have different
desires and consumption patterns. Disparities resulting from
the difference in their purchasing power, but not only.
According to some researchers, behavior and buying habits
would also be a way of identification and belonging to its social
class.
Beyond a common foundation to the whole population and
taking into account that many counterexample naturally exist,
they usually do not always buy the same products, do not
choose the same kind of vacation, do not always watch the
same TV shows, do not always read the same magazines, do
not have the same hobbies and do not always go in the same
types of retailers and stores.
For example, consumers from the middle class and upper class
generally consume more balanced and healthy food products
than those from the lower class. In addition, the consumer
buying behavior may also change according to social class. A
consumer from the lower class will be more focused on price.
While a shopper from the upper class will be more attracted to
elements such as quality, innovation, features, or even the
social benefit that he can obtain from the product .
Cultural trends:
Cultural trends or Bandwagon effect are defined as trends
widely followed by people and which are amplified by their
mere popularity and by conformity or compliance with social
pressure. The more people follow a trend, the more others will
want to follow it.

17

They affect behavior and shopping habits of consumers and

may be related to the release of new products or become a
source of innovation for brands.
By social pressure, desire to conformity or belonging to a group,
desire to follow fashion trends or simply due to the high
visibility provided by media, consumers will be influenced,
consciously or unconsciously, by these trends.
For example, Facebook has become a cultural trend. The social
network has widely grew to the point of becoming a must have,
especially among young people.
It is the same with the growth of the tablet market. Tablets such
as iPad or Galaxy Tab have become a global cultural trend
leading many consumers to buy one. Even if they had never
specially felt the need before.
For a brand, create a new cultural trend from scratch is not
easy. Apple did it with the tablets with its iPad. But this is an
exception. However, brands must remain attentive to the new
trends and bandwagon effects. Whether to accompany it
(create a page on Facebook) or to take part in the newly
created market (create its own tablet).

II. Social factors

Social factors are among the factors influencing consumer
behavior significantly. They fall into three categories: reference
groups, family and social roles and status.
Reference groups and membership groups:
The membership groups of an individual are social groups to
which he belongs and which will influence him. The
membership groups are usually related to its social origin, age,
place of residence, work, hobbies, leisure, etc.

18

The influence level may vary depending on individuals and

groups. But is generally observed common consumption trends
among the members of a same group.
The understanding of the specific features (mindset, values,
lifestyle, etc.) of each group allows brands to better target their
advertising message.
More generally, reference groups are defined as those that
provide to the individual some points of comparison more or
less direct about his behavior, lifestyle, desires or consumer
habits. They influence the image that the individual has of
himself as well as his behavior. Whether it is a membership
group or a non-membership group.
Because the individual can also be influenced by a group to
which he doesnt belong yet but wishes to be part of. This is
called an aspirational group. This group will have a direct
influence on the consumer who, wishing to belong to this group
and look like its members, will try to buy the same products.
For example, even if he doesnt need it yet, a surfing beginner
may want to buy advanced brands or products used by
experienced surfers (aspirational group) in order to get closer
to this group. While a teen may want the shoe model or
smartphone used by the group of popular guys from his high
school (aspirational group) in order to be accepted by this
group.
Some brands have understood this very well and communicate,
implicitly or not, on the social benefit provided by their
products.
Within a reference group that influence the consumer buying
behavior, several roles have been identified:

The initiator: the person who suggests buying a product

or service
19

The influencer: the person whose point of view or advice

will influence the buying decision. It may be a person outside
the group (singer, athlete, actor, etc.) but on which group
members rely on.

The decision-maker: the person who will choose which

product to buy. In general, its the consumer but in some
cases it may be another person. For example, the leader of
a soccer supporters group (membership group) that will
define, for the whole group, which supporters scarf buy and
bear during the next game.

The buyer: the person who will buy

Generally, this will be the final consumer.

the

product.

Family:
The family is maybe the most influencing factor for an
individual. It forms an environment of socialization in which an
individual will evolve, shape his personality, and acquire values.
But also develop attitudes and opinions on various subjects
such as politics, society, social relations or himself and his
desires.
But also on his consumer habits, his perception of brands and
the products he buys.
We all kept, for many of us and for some products and brands,
the same buying habits and consumption patterns that the
ones we had known in our family.
Perceptions and family habits generally have a strong influence
on the consumer buying behavior. People will tend to keep the
same as those acquired with their families.
For example, if you have never drunk Coke during your
childhood and your parents have described it as a product full
of sugar and not good for health. There is far less chance that
20

you are going to buy it when you will grow up that someone
who drinks Coke since childhood.
For brands especially for Fast-Moving Consumer Goods
(FMCG) or Consumer Packaged Goods (CPG) successfully
integrate the family is both a real challenge and an
opportunity to develop a strong consumer loyalty among all the
family members.
Thats why its important for brands to be seen as a family
brand in order to become a consumer habit for parents and
children when they will become adults.
Social Roles And Status:
The position of an individual within his family, his work, his
country club, his group of friends, etc.. All this can be defined
in terms of role and social status.
A social role is a set of attitudes and activities that an individual
is supposed to have and do according to his profession and his
position at work, his position in the family, his gender, etc.
And expectations of the people around him.
Social status meanwhile reflects the rank and the importance of
this role in society or in social groups. Some are more valued
than others.
The social role and status profoundly influences the consumer
behavior and his purchasing decisions. Especially for all the
visible products from other people.
For example, a consumer may buy a Ferrari or a Porsche for the
quality of the car but also for the external signs of social
success that this kind of cars represents. Moreover, it is likely
that a CEO driving a small car like a Ford Fiesta or a Volkswagen
Golf would be taken less seriously by its customers and
business partners than if he is driving a German luxury car.
21

And this kind of behaviors and influences can be found at every

level and for every role and social status.
Again, many brands have understood it by creating an image
associated with their products reflecting an important social
role or status.

III. Personal factors:

Decisions and buying behavior are obviously also influenced by
the characteristics of each consumer.
Purchasing Power And Revenue:
The purchasing power of an individual will have, of course, a
decisive influence on his behavior and purchasing decisions
based on his income and his capital.
This obviously affects what he can afford, his perspective on
money and the level of importance of price in his purchasing
decisions. But it also plays a role in the kind of retailers where
he goes or the kind of brands he buys.
As for social status, some consumers may also look for the
social value of products they buy in order to show external
indications of their incomes and their level of purchasing
power..
Lifestyle:
The lifestyle of an individual includes all of its activities,
interests, values and opinions.
The lifestyle of a consumer will influence on his behavior and
purchasing decisions. For example, a consumer with a healthy
and balanced lifestyle will prefer to eat organic products and go
to specific grocery stores, will do some jogging regularly (and
therefore will buy shoes, clothes and specific products), etc..
22

Personality And Self-Concept:

Personality is the set of traits and specific characteristics of
each individual. It is the product of the interaction of
psychological and physiological characteristics of the individual
and results in constant behaviors.
It materializes into some traits such as confidence, sociability,
autonomy, charisma, ambition, openness to others, shyness,
curiosity, adaptability, etc.
While the self-concept is the image that the individual has or
would like to have of him and he conveys to his entourage.
These two concepts greatly influence the individual in his
choices and his way of being in everyday life. And therefore
also his shopping behavior and purchasing habits as consumer.
In order to attract more customers, many brands are trying to
develop an image and a personality that conveys the traits and
values - real or desired of consumers they are targeting.
For example, since its launch, Apple cultivates an image of
innovation, creativity, boldness and singularity which is able to
attract consumers who identify to these values and who feel
valued in their self-concept by buying a product from Apple.
Because consumers do not just buy products based on their
needs or for their intrinsic features but they are also looking for
products that are consistent and reinforce the image they have
of themselves or they would like to have.
The more a product or brand can convey a positive and
favorable self-image to the consumer, the more it will be
appreciated and regularly purchased.

23

IV. Psychological factors

Among
the
factors
influencing
consumer
behavior,
psychological factors can be divided into 4 categories:
motivation, perception, learning as well as beliefs and attitudes.
Motivation:
Motivation is what will drive consumers to develop a purchasing
behavior. It is the expression of a need is which became
pressing enough to lead the consumer to want to satisfy it. It is
usually working at a subconscious level and is often difficult to
measure.
Motivation is directly related to the need and is expressed in
the same type of classification as defined in the stages in
consumer buying decision making process.
To increase sales and encourage consumers to purchase,
brands should try to create, make conscious or reinforce a need
in the consumers mind so that he develops a purchase
motivation. He will be much more interested in considering and
buy their products.
They must also, according to research, the type of product they
sell and the consumers they target, pick out the motivation and
the need to which their product respond in order to make them
appear as the solution to the consumers need.
Perception:
Perception is the process through which an individual selects,
organizes and interprets the information he receives in order to
do something that makes sense. The perception of a situation
at a given time may decide if and how the person will act.

24

Depending to his experiences, beliefs and personal

characteristics, an individual will have a different perception
from another.
Each person faces every day tens of thousands of sensory
stimuli (visual, auditory, kinesthetic, olfactory and gustatory). It
would be impossible for the brain to process all consciously.
That is why it focuses only on some of them.
The perception mechanism of an individual is organized around
three processes:

Selective Attention: The individual focuses only on a

few details or stimulus to which he is subjected. The type of
information or stimuli to which an individual is more sensitive
depends on the person.

For brands and advertisers successfully capture and retain the

attention of consumers is increasingly difficult. For example,
many users no longer pay any attention, unconsciously, to
banner ads on the Internet. This kind of process is called
Banner Blindness.
The attention level also varies depending on the activity of the
individual and the number of other stimuli in the environment.
For example, an individual who is bored during a subway trip
will be much more attentive to a new ad displayed in the tube.
It is a new stimuli that breaks the trip routine for him.
Consumers will also be much more attentive to stimuli related
to a need. For example, a consumer who wishes to buy a new
car will pay more attention to car manufacturers ads. While
neglecting those for computers.

Selective Distortion: In many situations, two people are

not going to interpret an information or a stimulus in the
same way. Each individual will have a different perception
based on his experience, state of mind, beliefs and attitudes.
25

Selective distortion leads people to interpret situations in

order to make them consistent with their beliefs and values.
For brands, it means that the message they communicate will
never be perceived exactly in the same way by consumers. And
that everyone may have a different perception of it. Thats why
its important to regularly ask consumers in order to know their
actual brand perception.
Selective distortion often benefits to strong and popular brands.
Studies have shown that the perception and brand image plays
a key role in the way consumers perceived and judged the
product. Several experiments have shown that even if we give
them the same product, consumers find that the product is or
tastes better when theyve been told that its from a brand they
like than when theyve been told its a generic brand. While it is
exactly the same product! Similarly, consumers will tend to
appreciate even less a product if it comes from a brand for
which they have a negative perception.

Selective Retention: People do not retain all the

information and stimuli they have been exposed to. Selective
retention means what the individual will store and retain
from a given situation or a particular stimulus. As for
selective distortion, individuals tend to memorize information
that will fit with their existing beliefs and perceptions.

For example, consumers will remember especially the benefits

of a brand or product they like and will forget the drawbacks
or competing products advantages.
Selective retention is also what explains why brands and
advertisers use so much repetition in their advertising
campaigns and why they are so broadcasted. So that the
selective retention can help the brand to become a top of
mind brand in the consumers mind.

26

Learning:
Learning is through action. When we act, we learn. It implies a
change in the behavior resulting from the experience. The
learning changes the behavior of an individual as he acquires
information and experience. For example, if you are sick after
drinking milk, you had a negative experience, you associate the
milk with this state of discomfort and you learn that you
should not drink milk. Therefore, you dont buy milk anymore.
Rather, if you had a good experience with the product, you will
have much more desire to buy it again next time.

SMARTPHONES &
EVOLUTION:DEFINITION:
A smartphone (or smart phone) is a mobile phone with an
advanced mobile operating system. Smartphones typically
combine the features of a cell phone with those of other
popular mobile
devices,
such
as personal
digital
assistant, media
player and GPS
navigation
unit.
Most
smartphones have a touch screen user interface and can run
third-party apps, and are camera phones. 2012 and later
smartphones
add
high
speed
mobile
broadband 4G
LTE internet web
browsing, motion
sensors and mobile
payment mechanisms.
In 2014, sales of smartphones worldwide topped 1.2 billion,
which is up 28% from 2013.

HISTORY:
27

EARLY YEARS:

Devices that
combined telephony and computing were
first
conceptualized
by Theodore
Paraskevakos in 1971 and patented in
1974, and were offered for sale beginning
in 1993. He was the first to introduce the
concepts
of
intelligence, data
processing and visual display screens into
telephones which gave rise to the
"smartphone." In 1971, Paraskevakos,
working
with Boeing in Huntsville,
Alabama, demonstrated a transmitter and receiver that
provided additional ways to communicate with remote
equipment, however it did not yet have general
purpose PDA applications in a wireless device typical of
smartphones. They were installed at Peoples' Telephone
Company in Leesburg and were demonstrated to several
telephone companies. The original and historic working
models are still in the possession of Paraskevako

Mass
adoption:In
1999,
the
Japanese
firm NTT
DoCoMo released the first smartphones to achieve mass
adoption within a country. These phones ran on i-mode, which
provided data transmission speeds up to 9.6 Kbit/s. Unlike
future generations of wireless services, NTT DoCoMo's imode used cHTML, a language which restricted some aspects
of traditional HTML in favor of increasing data speed for the
devices. Limited functionality, small screens and limited
bandwidth allowed for phones to use the slower data speeds
available. The rise of i-mode helped NTT DoCoMo accumulate
an estimated 40 million subscribers by the end of 2001. It was
also ranked first in market capitalization in Japan and second
globally. This power would wane in the face of the rise of 3G
and new phones with advanced wireless network capabilities.
Outside of Japan smartphones were still rare, although
throughout
the
mid-2000s,
devices
based
on
Microsoft's Windows Mobile started to gain popularity among
28

business users in the U.S. The BlackBerry later gained mass

adoption in the U.S., and American users popularized the term
"CrackBerry" in 2006 due to its addictive nature. The company
first released its GSM BlackBerry 6210, BlackBerry 6220, and
BlackBerry 6230 devices in 2003. Symbian was the most
popular smartphone OS in Europe during the middle to late
2000s. Initially, Nokia's Symbian devices were focused on
business, similar to Windows Mobile and BlackBerry devices at
the time. From 2006 onwards, Nokia started producing
entertainment-focused
smartphones,
popularized
by
the Nseries. In Asia, with the exception of Japan, the trend was
similar to that of Europe.

IPhone & Android

In
2007, Apple
Inc. introduced
the iPhone, one of the first smartphones
to use a multi-touch interface. The
iPhone was notable for its use of a large
touchscreen for direct finger input as its
main means of interaction, instead of
a stylus, keyboard, or keypad typical for
smartphones at the time. 2008 saw the
release
of
the
first
phone
to
use Android called the HTC Dream (also
known as the T-Mobile G1). Android is an open-source platform
founded by Andy Rubin and now owned by Google. Although
Android's adoption was relatively slow at first, it started to gain
widespread popularity in 2010, and now dominates the market.
These new platforms led to the decline of earlier ones.
Microsoft, for instance, started a new OS from scratch,
called Windows Phone. Nokia abandoned Symbian and
partnered with MS to use Windows Phone on its smartphones.
Windows Phone then became the third-most-popular OS.
Palm's webOS was bought by Hewlett-Packard and later sold
to LG Electronics for use on LG smart TVs. BlackBerry Limited,
formerly known as Research in Motion, also made a new
platform from scratch, BlackBerry 10.

29

The capacitive touchscreen also had a knock-on effect on

smartphone form factors. Before 2007 it was common for
devices
to
have
a
physical
numeric
keypad
or
physical QWERTY keyboard in either a candybar or sliding form
factor. However, by 2010, there were no top-selling
smartphones with physical keypads.

Mobile Operating Systems

(Popular Ones):
Android :- Android is an open-source platform founded in
October 2003 by Andy Rubin and backed by Google, along with
major
hardware
and
software
developers
(such
as Intel, HTC, ARM, Motorola and Samsung) that form the Open
Handset Alliance. In October 2008, HTC released the HTC
Dream, the first phone to use Android. The software suite
included on the phone consists of integration with Google's
proprietary applications, such as Maps, Calendar, and Gmail,
and a full HTML web browser. Android supports the execution of
native applications and third-party apps which are available
via Google Play, which launched in October 2008 as Android
Market. By Q4 2010, Android became the best-selling
smartphone platform.

IOS :- iOS is a mobile operating system developed by Apple

Inc. and distributed exclusively for Apple hardware. It is the
operating system that powers the company's iDevices. In
2007, Apple Inc. introduced the iPhone, the first device to use
iOS and one of the first smartphones to use a multitouch interface. The iPhone was notable for its use of a large
touchscreen for direct finger input as its main means of
interaction, instead of a stylus, keyboard, or keypad as typical
for smartphones at the time. In 2008, Apple introduced the App
30

Store, which allowed any iPhone to install third-party

native applications. Featuring over 500 applications
at launch, the App Store eventually achieved 1 billion
downloads in the first year, and 15 billion by 2011.

Windows Phone :- In 2010, Microsoft unveiled Windows

Phone 7 with a User Interface inspired by Microsoft's
"Metro Design Language", to replace Windows Mobile.
Windows Phone 7 integrates with Microsoft services
such as Microsoft SkyDrive, Office, Xbox and Bing, as
well
as
non-Microsoft
services
such
as Facebook, Twitter and Google
accounts.
This
software
platform
runs
the Microsoft
Mobile smartphones, and has received some positive
reception from the technology press and been praised for its
uniqueness
and
differentiation. In
2012,
Microsoft
released Windows Phone 8, replacing its previously Windows
CE-based architecture with one based on the Windows
NT kernel with many components shared with Windows 8,
allowing applications to be ported between the two platforms.
BlackBerry
:In
1999, RIM released
its
first BlackBerry devices, providing secure real-time
push-email communications on wireless devices.
Services such as BlackBerry Messenger provide the
integration of all communications into a single inbox.
There are 80 million active BlackBerry service
subscribers and the 200 millionth BlackBerry
smartphone was shipped in September 2012. Most
recently, RIM has undergone a platform transition, changing its
name to BlackBerry and making new devices on a new platform
named "BlackBerry 10.

Indian Market Overview:

31

India is one of the fastest growing economies all over the world
and a live example which depicts the development is the
growth of the telecommunication industry in India, especially
the in the field of mobile communication. There is a continuous
increase in disposable income; there has been a radical shift in
the attitude and aspirations of the consumers. Mobile phone
has become essential parts of personal and business life. The
recent growth of mobile phone usage is an observable fact that
crosses all age and gender boundaries. Due to fierce
competition in the field of mobile communication the need
arises for the study to know how consumer behaves in the time
of purchase. India is currently the 2nd largest mobile handset
market in the world and is about to become an even larger
market. Buoyed by the high demand for smartphones, the
mobile handset market in India is estimated to have grown by
14.7% in financial
year 2014 to touch
Rs. 35,946 crore,
according to a Voice
&
Data
Survey
compared
to
Rs.31,330 crore in
financial year 2013
(Cybermedia.co.in,
2015). The mature
Indian
mobile
consumers
are
increasing
their
preference for highend handsets and
the
younger
demographics
desires
to
use
mobile
web
technologies
that
could
see
the
smartphone markets revenues soar. TechNavio's analysts
forecast the Smartphone market in India to grow at a
Compound Annual Growth Rate of 116.4 per cent over the
period 2011-2015. One of the important factors contributing to
this market growth is the increasing demand for all-in-one
devices. The Smartphone market in India has also been
32

witnessing an increasing availability of dual SIM smartphones.

However, lack of specific applications for Indians could pose a
challenge to the growth of this market.
Smartphones has penetrated everywhere and peaked out in
many countries. India, the second largest telecom market by
subscriber base after China, witnessed phenomenal growth in
last decade. The total subscriber base as of June 2015 was 903
million as compared to 22.8 million total subscribers in 1999.
Mobile subscribers accounting for 96.7% of total subscriber
base are responsible for this phenomenal growth in telecom.
The country has achieved overall tele density of 73.5, urban
tele density of 145 and rural tele density of 42. Average
revenue per user (ARPU) and Minutes of Usage (MOU) are
stabilizing for both GSM as well as CDMA service operators (The
Indian Telecom Services Performance Indicators, 2015).
With a fast growing younger demographic and rapidly
expanding economy, the countrys smartphone numbers are
poised to expand at a much faster pace as compared to rest of
the world.
Price remains the main criteria when buying any consumer
electronic device in India, including a mobile device. The Indian
smartphone phone market mainly depends upon the price,
features, stability and style. Most of the Indians buying
smartphone are middle income groups and above. As a
developing economy, India is a most suitable place for
investment. Strong marketing strategies, established retail
outlets, customer satisfaction are the tools to succeed in any
market. Indian smartphone market is expected to grow as the
3G network coverage is increasing and there is increase in
demand of high in smartphones in 2014. Smartphone
manufacturer are concentrated on building application stores
and improving service quality to offer an attractive value
proposition and strengthen their market position. The Indian
market was ruled by Nokia phones . Other brands like Motorola,
Samsung, Sony and LG failed to compete with Nokia phones as
Nokia phones are more easy to use as compared to the cell
phones of other companies. Now, Samsung is the main player
in Indian smartphone market with 22% of Indian market share.
Indian brands like Micromax and INTEX are at the second and
33

third position in market share with 21% and 10%. Global

companies like Sony, Nokia and Apple are ranked fourth, fifth
and sixth .

Nokia was the undisputed leader of the Indian mobile phone

sector, with 54% of total volume sales in 2009. Nokia benefits
form a strong brand image and a reputation for high quality
products. According to industry sources, Nokia has the distinct
advantage of having the strongest retail network, with a
presence in almost 90% of retail outlets selling mobile phones.

34

Impact
of
Smartphones
Indian Market:

on

Smartphone has created new dimensions for business in Indian

market. It is not only the Smartphone sellers enjoying the
business but it also created a new area for mobile application
developing companies in India, Internet services provider and
other sectors of life to utilize the Smartphone to gain
competitive advantages. There has been an extreme growth in
broadband and Internet service providers business in past few
years and one of the main reasons for this drastic increase in
their business is the ever increasing use of Smartphone s and
growth of Smartphone and mobile applications. In a very small
duration a huge number of Smartphone have been sold that
provided an opportunity to businesses to invest in mobile
application development and allowed to introduce new
business dimensions in market space. As it is easy to change
settings and make customizations on Smartphone, therefore
there are several programs for Smartphone s from different
sellers including Blackberry, Android, iPhone and Microsoft etc.
Mobile Application Market is another business sector introduced
by Smartphones. Different mobile operating system vendors
have their own mobile application technology hence having a
different market for Mobile Applications. Smartphones also
impacted advertising business sector as well. Advertising is an
old concept but the features of Smartphone have made it more
effective and no doubt it is an additional positive impact of
mobile application for business. Mobile application publisher,
distributor and service provider are getting large revenue by
providing ads as a part of mobile application.
There are some negative impacts of smartphones. The major
impact of Smartphone is on PC market. According to a survey
by Compete, a web analytics firm, a large number of people
almost up to 65% are using their smart phones to read news
feeds, post status updates, read & reply to messages and post

35

photos. This shows that now people are leaving PCs and moving
towards Smartphones.
Studies have investigated the demographic characteristics of
smartphone users which are Males 53%. They are more likely to
have a smartphone than females which is only 47% 15

Market Challenges:
Indian smartphone market is an emerging market; there are
many smartphone companies that are targeting India as their
market. Some of the major international companies are
Samsung, Apple, Sony, Nokia, Motorola, LG etc. the market
share of international brand are decreasing as local brands like
Micromax and Karbonn are launching smartphone with android
operating systems and large screen at very low price compare
to the international brands. For example, Canvas 4 by Micromax
is a Smartphone with android 4.3, quad-core processor and has
13MP camera with a 5 inch screen; it was launched at in India
below INR 19000 as the smartphones with same features in
international brand like Samsung, Apple or Sony is around INR
40000. The sales of local brands are increasing as Micromax
market share was 5.6% in 2012 and in 2013 it was 22.7%
(Times, 2014).

36

CHAPTER 2

COMPANY PROFILE

37

APPLE INC.

38

Apple
Inc. is
an
American multinational
corporation headquartered
in Cupertino, California,
that
designs, develops, and sells consumer electronics, computer
software, online services, and personal computers.
Its
bestknown
hardware
products
are the Mac
line
of
computers
known
hardware
products
are
the Mac lin
e
of
computers,
the iPod me
dia player, the iPhone smartphone, the iPad tablet computer,
and the Apple Watch electronic smart watch. Its online services
includes iCloud, the iTunes Store, and the App Store. Apple's
consumer software includes the OS X and iOS operating
systems, the iTunes media browser, the Safari web browser,
and the iLife and iWork creativity and productivity suites.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald
Wayne on April 1, 1976, to develop and sell personal
computers. It was incorporated as Apple Computer, Inc. on
January 3, 1977, and was renamed as Apple Inc. on January 9,
2007, to reflect its shifted focus towards consumer electronics.
Apple joined the Dow Jones Industrial Average on March 19,
2015.
Apple is the world's second-largest information technology
company by
revenue
after Samsung
Electronics,
and
the world's third-largest mobile phone maker. On November 25,
2014, in addition to being the largest, Apple became the first
U.S. company to be valued at over $700 billion. As of 2014,
39

Apple employs 72,800 permanent full-time employees,

maintains 437 retail stores in fifteen countries, and operates
the online Apple Store and iTunes Store, the latter of which is
the world's largest music retailer.
Apple's worldwide annual revenue in 2014 totaled US$182
billion (FY end October 2014. Apple enjoys a high level of brand
loyalty and,
according
to
the
2014
edition
of
the Interbrand Best Global Brands report, is the world's most
valuable brand with a valuation of $118.9 billion. By the end of
2014,
the
corporation
continued
to
manage
significant criticism regarding the labor practices of its
contractors, as well as for its environmental and business
practices, including the origins of source materials.

HISTORY
19761980:
Incorporation

Founding

and

Apple was established on April 1, 1976, by Steve Jobs, Steve

Wozniak and Ronald Wayne to
sell the Apple I personal
computer kit. The Apple I kits were computers single handedly
designed and hand-built by Wozniak and first shown to the
public at the Homebrew Computer Club. The Apple I was sold as
a motherboard (with CPU, RAM, and basic textual-video chips),
which is less than what is now considered a complete personal
computer. The Apple I went on sale in July 1976 and was
market-priced at $666.66 ($2,763 in 2015 dollars, adjusted for
inflation).
Apple was incorporated January 3, 1977 without Wayne, who
sold his share of the company back to Jobs and Wozniak for
$800. Multimillionaire Mike
Markkula provided
essential
business expertise and funding of $250,000 during the
40

incorporation of Apple. During the first five years of operations,

revenues doubled every four months, an average growth rate
of 700%.

198189: Success with Macintosh

In 1984, Apple launched the Macintosh. It was the first personal
computer to be sold without a programming language at all. Its
debut was announced by the now famous $1.5 million
television. It was directed by Ridley Scott and first aired during
the third quarter of Super Bowl XVIII on January 22, 1984. The
commercial is now hailed as a watershed event for Apple's
success and a "masterpiece".
The Macintosh initially sold well, but follow-up sales were not
strong due to its high price and limited range of software titles.
The machine's fortunes changed with the introduction of
the LaserWriter, the first PostScript laser printer to be sold at a
reasonable
price,
and PageMaker,
an
early desktop
publishing package. It has been suggested that the
combination of these three products was responsible for the
creation of the desktop publishing market. The Macintosh was
particularly powerful in the desktop publishing market due to its
advanced graphics capabilities, which had necessarily been
built in to create the intuitive Macintosh GUI.

199099: Decline,
Acquisitions

Restructuring,

The lawsuit dragged on for years before it was finally

dismissed. At the same time, a series of major Apple believed
the Apple II series was too expensive to produce and took away
sales from the low-end Macintosh. In 1990, Apple released
the Macintosh LC, which featured a single expansion slot for
the Apple IIe Card to help migrate Apple II users to the
Macintosh platform. Apple stopped selling the Apple IIe in 1993.
Following the success of the Macintosh LC, Apple introduced
the Centris line, a low-end Quadra, and the ill-fated Performa
line. Consumers ended up confused because they did not
41

understand
the
difference
between
models. Apple
experimented with a number of other unsuccessful consumer
targeted
products
during
the
90's,
including digital
cameras, portable CD audio players, speakers, video consoles,
and TV appliances. Enormous resources were also invested in
the problem-plagued Newton division based on John Sculley's
unrealistic market forecast. Ultimately, none of these products
helped and Apple's market share and stock prices continued to
slide.
Microsoft continued to gain market share with Windows by
focusing on delivering software to cheap commodity personal
computers while Apple was delivering a richly engineered but
expensive experience

200006: Return to Profitability

Mac OS X, based on NeXT's OPENSTEP and BSD Unix, was
released on March 24, 2001 after several years of development.
Aimed at consumers and professionals alike, Mac OS X aimed to
combine the stability, reliability and security of Unix with the
ease of use afforded by an overhauled user interface. To aid
users in migrating from Mac OS 9, the new operating system
allowed the use of OS 9 applications within Mac OS X as
the Classic environment. This meant that users were able to
continue running their old applications.
On May 19, 2001, Apple opened the first official Apple Retail
Stores in Virginia and California. On October 23 of the same
year, Apple debuted the iPod portable digital audio player. The
product, which was first sold on November 10, 2001, was
phenomenally successful with over 100 million units sold within
six years. In 2003, Apple's iTunes Store was introduced. The
service offered online music downloads for $0.99 a song and
integration with the iPod. The iTunes store quickly became the
market leader in online music services, with over 5 billion
downloads by June 19, 2008.

42

200710:
Devices

Success

with

Mobile

During his keynote speech at the Macworld Expo on January 9,

2007, Jobs announced that Apple Computer, Inc. would from
that point on be known as "Apple Inc.", because the company
had shifted its emphasis from computers to mobile electronic
devices. This event also saw the announcement of
the iPhone and the Apple TV. The following day, Apple shares
hit $97.80, an all-time high at that point. In May, Apple's share
price passed the $100 mark. Apple would achieve widespread
success with its iPhone, iPod Touch and iPad products, which
introduced innovations in mobile phones, portable music
players and computers respectively. Furthermore, by early
2007, 800,000 Final Cut Pro users were registered. In July 2008,
Apple launched the App Store to sell third-party applications for
the iPhone and iPod Touch. Within a month, the store sold 60
million applications and registered an average daily revenue of
$1 million, with Jobs speculating in August 2008 that the App
Store could become a billion-dollar business for Apple. By
October 2008, Apple was the third-largest mobile handset
supplier in the world due to the popularity of the iPhone.

2011Present: Post Jobss Era

On October 5, 2011, Apple announced that Jobs had died,
marking the end of an era for Apple. The first major product
announcement by Apple following Jobs's passing occurred on
January 19, 2012, when Apple's Phil Schiller introduced iBooks
Textbooks for iOS and iBook Author for Mac OS X in New York
City. Jobs had stated in his biography that he wanted to
reinvent the textbook industry and education.
From 2011 to 2012, Apple released the iPhone 4S and iPhone 5,
which featured improved cameras, an "intelligent software
assistant" named Siri, and cloud-sourced data with iCloud; the
third and fourth generation iPads, which featured Retina
43

displays; and the iPad Mini, which featured a 7.9-inch screen in

contrast to the iPad's 9.7-inch screen. These launches were
successful, with the iPhone 5 (released September 21, 2012)
becoming Apple's biggest iPhone launch with over 2 million preorders and sales of 3 million iPads in three days following the
launch of the iPad Mini and fourth generation iPad (released
November 3, 2012). Apple also released a third-generation 13inch MacBook Pro with a Retina display and new iMac and Mac
Mini computers.
On October 29, 2011, Apple purchased C3 Technologies, a
mapping company, for $240 million, becoming the third
mapping company Apple has purchased. On January 10, 2012,
Apple paid $500 million to acquire Anobit, an Israeli hardware
company that developed and supplied a proprietary memory
signal processing technology that improved the performance of
the flash-memory used in iPhones and iPads. On July 24, 2012,
during a conference call with investors, Tim Cook said that he
loved India, but that Apple was going to expect larger
opportunities outside of India. Cook cited the reason as the
30% sourcing requirement from India.
On August 20, 2012, Apple's rising stock rose the company's
value to a world-record $624 billion. This beat the non-inflationadjusted record for market capitalization set by Microsoft in
1999. On August 24, 2012, a US jury ruled that Samsung should
pay Apple $1.05 billion (665m) in damages in an intellectual
property lawsuit. Samsung appealed the damages award, which
the Court reduced by $450 million. The Court further granted
Samsung's request for a new trial. On November 10, 2012,
Apple confirmed a global settlement that would dismiss all
lawsuits between Apple and HTC up to that date, in favor of a
ten-year license agreement for current and future patents
between the two companies. It is predicted that Apple will make
$280 million a year from this deal with HTC.
See also: List of mergers and acquisitions by Apple
A previously confidential email written by Jobs a year before his
death, was presented during the proceedings of the Apple Inc.
v. Samsung Electronics Co. lawsuits and became publicly
available in early April 2014. With a subject line that reads "Top
44

100 A," the email was sent only to the company's 100 most
senior employees and outlines Jobs's vision of Apple Inc.'s
future under 10 subheadings. Notably, Jobs declares a "Holy
War with Google" for 2011 and schedules a "new campus" for
2015.
In March 2013, Apple filed a patent for an augmented reality
(AR) system that can identify objects in a live video stream and
present information corresponding to these objects through a
computer-generated information layer overlaid on top of the
real-world image. Later in 2013, Apple acquired Embark Inc., a
small Silicon Valley-based mapping company that builds free
transit apps to help smartphone users navigate public
transportation in U.S. cities, and PrimeSense, an Israeli 3D
sensing company based in Tel Aviv. In December 2013, Apple
Inc. purchased social analytics firm Topsy. Topsy is one of a
small number of firms with real-time access to the messages
that appear on Twitter and can "do real-time analysis of the
trends and discussions happening on Twitter. The company
also made several high profile hiring decisions in 2013. On July
2, 2013, Apple recruited Paul Deneve, Belgian President and
CEO of Yves Saint Laurent as a vice president reporting directly
to Tim Cook. A mid-October 2013 announcement revealed that
Burberry executive Angela Ahrendts will commence as a senior
vice president at Apple in mid-2014. Ahrendts oversaw
Burberry's digital strategy for almost eight years and, during
her tenure, sales increased to about US$3.2 billion and shares
gained more than threefold.
Alongside Google vice-president Vint Cerf and AT&T CEO
Randall Stephenson, Cook attended a closed-door summit held
by President Obama on August 8, 2013, in regard to
government surveillance and the Internet in the wake of the
Edward Snowden NSA incident. On February 4, 2014, Cook met
with Abdullah Gl, the President of Turkey, in Ankara to discuss
the company's involvement in the Fatih project. Cook also
confirmed that Turkey's first Apple Retail Store would be opened
in Istanbul in April 2014.
Apple Inc. reported that the company sold 51 million iPhones in
the Q1 of 2014 (an all-time quarter, compared to 47.8 million in
the year-ago quarter. Apple also sold 26 million iPads during the
45

quarter, also an all-time quarterly record, compared to 22.9

million in the year-ago quarter. The Company sold 4.8 million
Macs, compared to 4.1 million in the year-ago quarter. On May
28, 2014, Apple confirmed its intent to acquire Dr. Dre and
Jimmy Iovine's audio company Beats Electronicsproducer of
the Beats by Dr. Dre line of headphones and speaker products,
and operator of the music streaming service Beats Musicfor
$3 billion, In August 2014, an Apple representative confirmed to
the media that Anand Lal Shimpi, editor and publisher of the
AnandTech website, had been recruited by Apple without
elaborating on Lal Shimpi's role.
In 2016, it was revealed that Apple would be making its first
original scripted series, a six-episode drama about the life of Dr.
Dre. Music Video director Paul Hunter will direct the series.

46

Products:

Mac
iPad
iPhone
iPod
Apple Tv
Apple Watch
Software

IPhone
At

the Macworld Conference & Expo in January 2007, Steve

Jobs introduced the long-anticipated iPhone, a convergence of
an Internet-enabled smartphone and iPod. The first-generation
iPhone was released on June 29, 2007 for $499 (4 GB) and $599
(8 GB) with an AT&T contract. On February 5, 2008, it was
updated to have 16 GB of memory, in addition to the 8 GB and
4 GB
models. It
combined
a 2.5G quad
band GSM and EDGE cellular phone with features found in
handheld devices, running scaled-down versions of Apple's Mac
OS X (dubbed iPhone OS, later renamed iOS), with various Mac
OS X applications such as Safari and Mail. It also includes webbased and Dashboard apps such as Google Maps and Weather.
The iPhone features a 3.5-inch (89 mm) touchscreen
display, Bluetooth, and Wi-Fi (both "b" and "g").
A second version, the iPhone 3G, was released on July 11, 2008
with a reduced price of $199 for the 8 GB version and $299 for
the
16 GB
version. This
version
added
support
for 3G networking and assisted-GPS navigation. The flat silver
47

back and large antenna square of the original model were

eliminated in favor of a glossy, curved black or white back.
Software capabilities were improved with the release of the App
Store, which provided iPhone-compatible applications to
download. On April 24, 2009, the App Store surpassed one
billion downloads. On June 8, 2009, Apple announced
the iPhone 3GS. It provided an incremental update to the
device, including faster internal components, support for faster
3G speeds, video recording capability, and voice control.
At the Worldwide Developers Conference (WWDC) on June 7,
2010, Apple announced the redesigned iPhone 4. It featured a
960x640 display, the Apple A4 processor, a gyroscope for
enhanced gaming, a 5MP camera with LED flash, frontfacing VGA camera and FaceTime video calling. Shortly after its
release, reception issues were discovered by consumers, due to
the stainless steel band around the edge of the device, which
also serves as the phone's cellular signal and Wi-Fi antenna.
The issue was corrected by a "Bumper Case" distributed by
Apple for free to all owners for a few months. In June 2011,
Apple
overtook Nokia to
become
the
world's
biggest
smartphone maker by volume. On October 4, 2011, Apple
unveiled the iPhone 4S, which was first released on October 14,
2011. It features the Apple A5 processor and Siri voice assistant
technology, the latter of which Apple had acquired in 2010. It
also features an updated 8MP camera with new optics. Apple
sold 4 million iPhone 4S phones in the first three days of
availability.
On September 12, 2012, Apple introduced the iPhone 5. It
added a 4-inch display, 4G LTE connectivity, and the
upgraded Apple
A6 chip,
among
several
other
improvements. Two million iPhones were sold in the first
twenty-four hours of pre-ordering and over five million handsets
were sold in the first three days of its launch. Upon the launch
of the iPhone 5S and iPhone 5C, Apple set a new record for
first-weekend smartphone sales by selling over nine million
devices in the first three days of its launch. The release of the
iPhone 5S and 5C was the first time that Apple simultaneously
launched two models.

48

A patent filed in July 2013 revealed the development of a new

iPhone battery system that uses location data in combination
with data on the user's habits to moderate the handsets power
settings accordingly. Apple is working towards a power
management system that will provide features such as the
ability of the iPhone to estimate the length of time a user will
be away from a power source to modify energy usage and a
detection function that adjusts the charging rate to best suit
the type of power source that is being used.
In a March 2014 interview, Apple designer Jonathan Ive used
the iPhone as an example of Apple's ethos of creating highquality, life-changing products. He explained that the phones
are comparatively expensive due to the intensive effort that is
used to make them:
We dont take so long and make the way we make for fiscal
reasons ... Quite the reverse. The body is made from a single
piece of machined aluminum ... The whole thing is polished first
to a mirror finish and then is very finely textured, except for the
Apple logo. The chamfers [smoothed-off edges] are cut with
diamond-tipped cutters. The cutters dont usually last very
long, so we had to figure out a way of mass-manufacturing
long-lasting ones. The camera cover is sapphire crystal. Look at
the details around the sim-card slot. Its extraordinary.
Many rumors surrounding the next iPhone centered around the
device's size; the majority of iPhone models have used 3.5-inch
displayswhich are smaller than screens used by flagship
phones from competitors. The last change in size for the iPhone
series came with the iPhone 5 (continued with the iPhone
5C and 5S), which featured a display that was taller, but the
same width as prior models, measuring at 4 inches diagonally.
Following Apple's loss in smartphone market share to
companies producing phones with larger displays reports as
early as January 2014 suggested that Apple was preparing to
launch new iPhone models with larger, 4.7-inch and 5.5-inch
displays.
The iPhone 6 and iPhone 6 Plus were officially unveiled during a
press event at the Flint Center for Performing Arts in Cupertino,
California on September 9, 2014. The event featured other
49

previously-rumored product announcements by Apple alongside

the new iPhone models, including the Apple Pay mobile
payment platform, and the company's entry into the wearable
computing market with the Apple Watch smartwatch.
One year later in 2015, Apple introduced the iPhone 6s, and
iPhone 6s Plus, which introduced a new technology called
3DTouch, including an increase of the rear camera to 12 MP,
and the FaceTime camera to 5 MP.

IPhone Evolution

50

Key Members Of Apple Inc.

51

Apples Mission Statement:

o We believe that we're on the face of the Earth
to make great products.
o We believe in the simple, not the complex.
o We believe that we need to own and control the
primary technologies behind the products we
make.
o We participate only in markets where we can
make a significant contribution.
o We believe in saying no to thousands of
projects so that we can really focus on the few
that are truly important and meaningful to us.
o We believe in deep collaboration and crosspollination of our groups, which allow us to
innovate in a way that others cannot.
o We don't settle for anything less than
excellence in every group in the company, and
we have the self-honesty to admit when we're
wrong and the courage to change.

52

Google INC

53

Android is

a mobile

operating

system (OS)

based

on

the Linux kernel and currently developed by Google. With

a user interface based on direct manipulation, Android is
designed primarily for touchscreen mobile devices such
as smartphones and tablet computers, with specialized user
interfaces for televisions (Android TV), cars (Android Auto), and
wrist watches (Android Wear). The OS uses touch inputs that
loosely correspond to real-world actions, like swiping, tapping,
pinching, and reverse pinching to manipulate on-screen
objects, and a virtual keyboard. Despite being primarily
designed for touchscreen input, it also has been used in game
consoles, digital cameras, regular PCs (e.g. the HP Slate 21)
and
other
electronics.

As of July 2013,
the Google
Play store
has
had
over
one
million
Android
applications
("apps")
published,
and
over 50 billion
applications
downloaded. A
developer survey
conducted
in
AprilMay
2013
found that 71% of
mobile
developers
develop
for
Android. At Googl
I/O 2014,
the
company
revealed
that
there were over
54

one billion active monthly Android users, up from 538 million in

June 2013. As of 2015, Android has the largest installed base of
all general-purpose operating systems.
Android's source code is released by Google under open
source licenses, although most Android devices ultimately ship
with a combination of open source and proprietary software,
including proprietary software developed and licensed by
Google.

Initially developed by Android, Inc., which Google backed

financially and later bought in 2005, Android was unveiled in
2007, along with the founding of the Open Handset Alliancea
consortium of hardware, software, and telecommunication
companies devoted to advancing open standards for mobile
devices.

55

Android is popular with technology companies which require a

ready-made, low-cost and customizable operating system
for high-tech devices. Android's open nature has encouraged a
large community of developers and enthusiasts to use the
open-source code as a foundation for community-driven
projects, which add new features for advanced users, or bring
Android to devices which were officially released running other

operating systems. The operating system's success has made it

a target for patent litigation as part of the so-called
"smartphone wars" between technology companies.
World is contracting with the growth of mobile phone
technology. As the number of users is increasing day by day,
facilities are also increasing. Starting with simple regular
handsets which were used just for making phone calls, mobiles
have changed our lives and have become part of it. Now they
are not used just for making calls but they have innumerable
uses and can be used as a Camera, Music player, Tablet PC,
T.V., Web browser etc. And with the new technologies, new
software and operating systems are required

History:
56

Android, Inc. was founded in Palo Alto, California in October

2003 by Andy Rubin (co-founder of Danger), Rich Miner (cofounder of Wildfire Communications, Inc.), Nick Sears (once VP
at T-Mobile), and Chris White) to develop, in Rubin's words,
"smarter mobile devices that are more aware of its owner's
location and preferences". The early intentions of the company
were to develop an advanced operating system for digital
cameras. Though, when it was realized that the market for the
devices was not large enough, the company diverted its efforts
toward producing a smartphone operating system that would
rival Symbian and Microsoft Windows Mobile. Despite the past
accomplishments of the founders and early employees, Android
Inc. operated secretly, revealing only that it was working on
software for mobile phones. That same year, Rubin ran out of
money. Steve Perlman, a close friend of Rubin, brought him
$10,000 in cash in an envelope and refused a stake in the
company.
Google acquired Android Inc. on August 17, 2005; key
employees of Android Inc., including Rubin, Miner, and White,
stayed at the company after the acquisition Not much was
known about Android Inc. at the time, but many assumed that
Google was planning to enter the mobile phone market with
this move. At Google, the team led by Rubin developed a
mobile device platform powered by the Linux kernel. Google
marketed the platform to handset makers and carriers on the
promise of providing a flexible, upgradable system. Google had
lined up a series of hardware component and software partners
and signaled to carriers that it was open to various degrees of
cooperation on their part.
Speculation about Google's intention to enter the mobile
communications market continued to build through December
2006. An earlier prototype codenamed "Sooner" had a closer
resemblance to a BlackBerry phone, with no touchscreen, and a
physical, QWERTY keyboard, but was later re-engineered to
support a touchscreen, to compete with other announced
devices such as the 2006 LG Prada and 2007 Apple iPhone. In
September
2007, InformationWeek covered
an Evalueserve study reporting that Google had filed several
patent applications in the area of mobile telephony.
57

On November 5, 2007, the Open Handset Alliance,

a consortium of technology companies including Google, device
manufacturers such as HTC, Sony and Samsung, wireless
carriers such as Sprint Nextel and T-Mobile, and chipset makers
such as Qualcomm and Texas Instruments, unveiled itself, with
a goal to develop open standards for mobile devices. That day,
Android was unveiled as its first product, a mobile
device platform built on the Linux version 2.6.25. The first
commercially available smartphone running Android was
the HTC Dream, released on October 22, 2008.
In 2010, Google launched its Nexus series of devices a line of
smartphones and tablets running the Android operating
system, and built by manufacturing partners. HTC collaborated
with Google to release the first Nexus smartphone, the Nexus
One. Google has since updated the series with newer devices,
such
as
the Nexus 5 phone
(made
by LG)
and
the Nexus 7 tablet (made by Asus). Google releases the Nexus
phones and tablets to act as their flagship Android devices,
demonstrating Android's latest software and hardware features.
Until January 2015, Google offered several Google Play
Edition devices over Google Play, as Google-customized
Android phones and tablets that, while not carrying the Google
Nexus branding, run an unmodified version of Android.

On March 13, 2013 Larry Page announced in a blog post that

Andy Rubin had moved from the Android division to take on
new projects at Google. He was replaced by Sundar Pichai, who
also continues his role as the head of Google's Chrome
division, which develops Chrome OS.

58

Since
2008,
Android
has
seen numerous
updates which
have incrementally
improved
the
operating system,
adding
new
features and fixing
bugs in previous
releases.
Each
major release is
named
in
alphabetical order
after a dessert or
sugary treat; for
example, version 1.5 "Cupcake" was followed by 1.6 "Donut".
Version 4.4.4 "KitKat" appeared as a security-only update; it
was released on June 19, 2014, shortly after 4.4.3 was
released. Android 5.0 "Lollipop" was released on November 14,
2014, introducing "material design" as a new design
language and one if its key new features; it was followed by two
bug fix releases (5.0.1 and 5.0.2).
In 2014, Google launched Android One, a standardized
smartphone, mainly targeting customers in the developing
world. Android One smartphones running the latest version of
Android (e.g. the latest Android 5.1) close to the stock version
of the operating system. As of March 3, 2015, the newest
version of the Android operating system, 5.1, is available for
selected devices including the Android One series, the Nexus
6 phablet, and the Nexus 9 tablet.
From 2010 to
2013, Hugo Barra served as product
spokesperson for the Android team, representing Android at
both press conferences and Google I/O, Googles annual
developer-focused conference. Barra's product involvement
included the entire Android ecosystem of software and
hardware, including Honeycomb, Ice Cream Sandwich, Jelly
Bean and KitKat operating system launches, the Nexus
4 and Nexus
5 smartphones,
the Nexus
7[and Nexus
59

10 tablets, and other related products such as Google

Now and Google Voice Search, Googles speech recognition
product comparable to Apples Siri. In 2013, Barra left the
Android team for Chinese smartphone maker Xiaomi.

In 2014, Google launched Android One, a line of smartphones

mainly targeting customers in the developing world. In May
2015, Google announced Project Brillo as a cut-down version of
Android that uses its lower levels (excluding the user interface),
intended for the "Internet of Things" (IoT) embedded systems.

Reception:
Android received a lukewarm reaction when it was unveiled in
2007. Although analysts were impressed with the respected
technology companies that had partnered with Google to form
the Open Handset Alliance, it was unclear whether mobile
phone manufacturers would be willing to replace their existing
operating systems with Android.The idea of an open-source,
Linux-based development platform sparked interest, but there
were additional worries about Android facing strong
competition from established players in the smartphone
market, such as Nokia and Microsoft, and rival Linux mobile
operating systems that were in development. These established
players were skeptical: Nokia was quoted as saying "we don't
see this as a threat,"] and a member of Microsoft's Windows
60

Mobile team stated "I don't understand the impact that they are
going to have."
Since then Android has grown to become the most widely used
smartphone operating system and "one of the fastest mobile
experiences available." Reviewers have highlighted the opensource nature of the operating system as one of its defining
strengths, allowing companies such as Nokia (Nokia X
family), Amazon (Kindle
Fire), Barnes
&
Noble (Nook), Ouya, Baidu and others to fork the software and
release hardware running their own customized version of
Android. As a result, it has been described by technology
website Ars Technica as "practically the default operating
system for launching new hardware" for companies without
their own mobile platforms. This openness and flexibility is also
present at the level of the end user: Android allows extensive
customization of devices by their owners and apps are freely
available from non-Google app stores and third party websites.
These have been cited as among the main advantages of
Android phones over others.
Android has suffered from "fragmentation", a situation where
the variety of Android devices, in terms of both hardware
variations and differences in the software running on them,
makes the task of developing applications that work
consistently across the ecosystem harder than rival platforms
such as iOS where hardware and software varies less. They
maintain this forces Android developers to write for the "lowest
common denominator" to reach as many users as possible, who
have too little incentive to make use of the latest hardware or
software features only available on a smaller percentage of
devices. However, OpenSignal, who develops both Android and
iOS apps, concluded that although fragmentation can make
development trickier, Android's wider global reach also
increases the potential reward.

Management Team

61

Larry Page
CEO and Co-Founder

Eric E. Schmidt
Executive Chairman

Sergey Brin
Co-Founder

62

Chapter 3

RESEARCH
METHODOLOGY

63

Research Methodology is a way to systematically solve the

research problem, it not only takes the research methods but
also considers the logic behind the methods. The study of
research methodology for developing the project gives us the
necessary training in gathering materials and arranging them,
participation in the field work when required, and provides
training in techniques for the collection of appropriate data for
particular problems.
This chapter identifies how the research was done, and its aim
is to describe the research strategy and methods applied in this
study, and to discuss their suitability within the context of
various research philosophies, models and methodological
approaches. This includes a general overview of the overall
research philosophy employed in carrying out the research,
justification of the chosen approach, provision of operational
construct definitions and specification of their indicators, and a
discussion of the data collection and analysis methods.
It is useful to state at this point that due to the confirmatory
nature of the research objectives, the questions that emerged
in chapter two and previous research foundations reported in
the literature, the approach used in this research is primarily
informed by a positivist philosophy based on the deductive
approach of enquiry.
In line with general practice within research of a management
nature, some elements of inductive-based qualitative
techniques are incorporated in achieving the objectives of this
research; hence, it is important to evaluate the range of
research approaches and possible methodologies that were at
the researchers disposal, in order to show how these were
considered and to justify the methodological choices made.

64

Researches point to pay attention

to these mentioned points below:SAMPLE UNITS- A decision has to be taken concerning a
sampling unit before selecting a sample, sampling unit may be
a geographical one such as a state, district, village etc. so in
this research sampling unit is Jaipur area.

SOURCE OF DATA- Data required for the study was collected

through

primary sources i.e. market survey.

SAMPLING SIZE- This refers to the number of items to be

selected from the universe to constitute a sample. This is major
problem before the researcher. The size of samples should
neither be excessively large not too small, it should be
optimum. The size of the population must be kept in view for
this also limits the sample size. Sample size in this research is
100..

INSTRUMENTS USED

65

Primary data collected through sample survey from the

selected elements in malls and super markets. So for this
purpose I have most popular tool of primary data collection
through direct communication with respondents.
The tools I used are questionnaire.

METHOD OF DATA COLLECTION

Actually data is of two kinds which are followinga) Primary Data: Data collected first hand in raw form.
Data that is collected for a specific purpose. Basically data
collected in raw form directly from a source for a specific
purpose, is referred to as primary data.
Examples include:o Jotting down important points during a lecture
o Interviewing
o Making your own questionnaire
b) Secondary Data: Data collected from sources that
have already collected it. Basically it is second hand or reused data that is collected from primary day.

There are basically two sources to collect secondary data

a) Internally: provided by company/organization.
b) Externally: various publication of central, state and local

government.
Books, magazines, newspapers
66

 Internet
After only keeping in mind one can think about what type of
data has to be collected during research as our research is
concerned I have to gather primary data for customer
preference.

RESEARCH INSTRUMENTS:
QUESTIONNAIRE DESIGN:
As the questionnaire is self-administered one, the survey is kept
simple and user friendly. Words used in questionnaire are
readily understandable to all respondent.
I have made the questionnaire in which questions are according
to the research and these are convenience for the respondent.

Research Design
A research is designed in line with the nature of the problem
identified and the questions to be addressed The stated
objectives of this research are confirmatory and explanatory in
nature, as they sought to describe and confirm the consumer
behavioural on smartphone in Indian market; and to establish,
as well as explain, the nature of the effect of regulatory focus in
consumers smartphone buying behaviour.

Research design provides an overall direction for the collection

and analysis of data of a study Importance of research design
stems from its role as a critical link between the theory and
67

argument that informed the research and the empirical data

collected (Nachmias and Nachmias 2008). A choice of research
design reflects decisions about the priority being given to a
range of dimensions of the research process and this of course
will have considerable influence on lower-level methodological
procedures such as sampling and statistical packages. Along
with clear research plan it provides, constraints and ethical
issues that a study will inevitably encounter must also be taken
into account
As such this study employed a cross sectional self-administered
survey design using a questionnaire instrument to collect data
on consumers perception and motivations on smartphone
usage and consumer buying behaviour toward smartphone in
the Indian market in different situation. This addresses both the
descriptive and explanatory aspects of the research. The data
collected was then analysed and thereby addressing the
confirmatory aim of the research.

Research Objective:Primary Objective:

To study the buying behavior of consumers towards IPhone &

android phones
Secondary Objectives:

1. To Study the difference between the consumer behavior

towards IPhone & Android
phones.
2. To find out the reasons why do customers prefer IPhone or
Android Phones?
3. Reasons for changing behavior towards smartphones.

68

4. To understand the factors behind buying iPhone and Android

Phones.

Research
Questions
Limitation of the Study:
While surveying I encounter with some problems like1) In some of the retail showroom it is not allowed to get the
questionnaire filled.
69

2) Many of the respondents were not willing to fill the

questionnaire.

3) Some people were not willing to respond and few of them

who responded were in hurry hence the active
participation was lacking. Due to which I faced difficulties
in collecting informations regarding our questionnaire.

4) Another problem which I face was that people were

hesitating to give information about their views freely.

CHAPTER 4

70

DATA ANALYSIS
&
INTERPRETATION

Data Analysis
Questionnaire:

on

the

basis

of

Q1. What is your age?

AGE
Age considered as an important factor which affects the buying
habits of individuals like as preferences of young persons are
differ as compared to old ones.

71

AGE (IN YEARS)

FREQUENCY
RESPONDENT
15
25
6
4

15-25
25-35
35-50
50+

OF PERCENTAGE
OF
RESPONDENTS
30
50
12
8

AGE OF RESPONDENT
50%
50%
40%
%OF RESPONDENT

30%

30%
20%
10%
0%

15-25

25-35

35-50

50+

AGE

INTERPRETATION: Analysis indicate that out of 50

respondents 27 persons belongs to age group between 17-21
and another 23 persons belong to age group of 22-30 years old.
Younger now days have advanced smartphones compared to
adults.

Q2. If u own a smartphone, then do you own

an iPhone or an Android Phone?
iPhone: - Apple Inc. (both handset and software owned by
same company

Android phones: - Google Inc. (Handset owned by other

company & software by google)
72

Type Of Phone
iPhone
Android Phones

FREQUENCY
RESPONDENT
15
35

OF PERCENTAGE
OF
RESPONDENTS
30
70

IPhone OR Android
70%

Android phones

Type Of Phone

30%

iPhone

0%

10%

20%

30%

40%

50%

60%

70%

80%

%OF RESPONDENT

INTERPRETATION: Analysis indicate that out of 50

respondents 15 persons use iPhone and majority 35 persons
are their which use android phones.

Q3. If u own an Android Phone, then which

brand do you use?
Android
Brand
Samsung
Micromax
Motorola

Phone FREQUENCY
RESPONDENT
10
7
8

OF PERCENTAGE
OF
RESPONDENTS
20
14
16
73

Xiaomi
Others

3
22

6
44

Android Phone Brands

Xiaomi; 6%
Motorola; 16%
Others; 43%

Micromax; 14%

Samsung; 20%
Others

Samsung

Micromax

Motorola

Xiaomi

INTERPRETATION: It is clear that now days Indian market isnt

ruled by Samsung & the established brands anymore. Now days
many companies like one Plus one Gionee, Vivo, Intex, Lava
rule the market as they come up with bundle of features in a
compact price.

Q4. If you own an iPhone, what is reason

behind buying it?
A. Features
B. Status Symbol
C. Addiction to Apple Products
D. All of the above

74

Reasons for buying iPhone

10%
12%
52%
27%

Features

Status Symbol

Addiction to Apple Products

All Of the Above

INTERPRETATION: It is clear from above diagram most if the

people who own an iPhone Consider its features a main reason
for buying it followed by Status symbol, Addiction to apple
products & last All of the above

Q5. What are Your reasons behind not

buying Android Phones?
A. Hanging Problems in Android Phones
B. Camera Quality
C. iTunes Store
D. All of the above
75

Reasons for not buying Android Phones

5%
7%

20%

68%

Hanging Problems

iTunes Store

Camera

All of the above

INTERPRETATION: It is clear from the figure that the main

reason behind not buying android phones is the Hanging
Problems in them & people get very easily very annoyed with
it.

Q6. What are the reasons behind buying an

Android Phone?
A. Low price
B. Free Applications
C. Variety of Brands
D. Trend in the market
76

Sales
7%
6%

14%

72%

Low Price

FreeApplications

Variety Of Brands

Trend in the market

INTERPRETATION: So most of the people buy android phones

because it is cheap & affordable than iPhone. This is the reason
why smartphone users are increasing day by day.

Q7. What are the reasons behind not

purchasing an iPhone?
A. Expensive Buy
B. Hard to Operate
C. Delicate
D. Others

77

Sales

76%
13%
7%
5%

Expensive Buy

Hard to Operate

Delicate

Others

INTERPRETATION: It is sound clear that people avoid to buy

an iPhone because it is very expensive & unaffordable.

Q8. Do you frequently change or want to

change your smartphone after a span of say
1 or 1.5 years?
A. YES
B. NO

78

Yes OR No

90%
80%
70%
60%
%OF RESPONDENT

90%

50%
40%
30%
20%

10%

10%
0%

Yes

No

INTERPRETATION: It is clear that todays world is a dynamic

one &to cope up with the changing technologies people change
their phones in a span of 1-1.5 years

Q9. What features do you look in a phone

before buying it either, iPhone or Android
phone?

79

1.
2.
3.
4.
5.

Camera
Storage Capacity
Processor & RAM
Brand
All of the above

Features

21%
44%
11%

6%

18%

Camera

Storage Capacity

Brand

All Of the Above

Processor&RAM

INTERPRETATION:-It can be seen above that a consumer

looks fir various things in a smartphone but the interesting
fact here is that brand has got only 6% that means people
do not prefer specified brands, they want best features no
matter what the brand is.

Q10.Does advertising have an effect on your

purchasing decision?
A.YES
80

B.NO
RESPONSES

FREQUENCY
RESPONDENT

YES
NO

36
14

OF PERCENTAGE
RESPONDENTS

OF

72
28

Aff ect of advertisement

%of respondents

80%
70%
60%
50%
40%
30%
20%
10%
0%

72%
28%

YES

NO
Responses

INTERPRETATION: To measure the effective of advertisement

it is necessary to know the effect of advertisement on the
consumer, as study indicates 72% are those whose purchasing
decision is affected by advertisement and 28%respondents
decision is not affected by advertisement.

Q11.Does price Play an important part in

your purchasing decision?
A.YES
B.NO
RESPONSES

FREQUENCY
RESPONDENT

YES

39

OF PERCENTAGE
RESPONDENTS

OF

78
81

NO

11

22

INTERPRETATION: Analysis shows that 78% respondents

change their purchasing decision if there is any increase in
price and 22%respondents do not change their decision even if
there is any increase in price because of brand image.

FACTORS AFFECTING THE PURCHASING

DECISION
Price and quality of the product are the main factors which
affect the final decision of the consumer.
FACTORS

LARGE
EXTENT(3)

SOME
EXTENT(2)

LEAST
EXTENT(1)

WEIGHTED
AVERAGE

82

PRICE
QUALITY
SIZE
DESIGN
COLOR
DURABILITY
AVAILABILIT
Y
BRANDIMAG
E

28
45
50
26
19
35
38

13
5
17
18
10
8

9
7
13
5
4

2.38
2.9
3
2.38
2.1
2.6
2.68

29

19

2.54

Factors considering while purchasing

16
14

2.6

12

2.1

10

2.38

WEIGHTED
AVERAGE
8
weighted average

2.9

6
4
2.38
2
0
PRICE

QUALITY

SIZE

DESIGN

COLOR

DURABILITY

Factors

INTERPRETATION: Studies reveals that price, quality, size,

design, durability, availability and brand image fall between
large extent and some extent, other attributes like colors of the
shoes lies between some extent and least extent.

CUSTOMER
DIFFERENT

SATISFACTION

LEVEL

FROM

ATTRIBUTES OF A PRODUCT

83

Customer is king of the market so he wants maximum

satisfaction from the product that he buys.
FACTORS

HIGHLY
SATISFI
ED
(5)

SATISFI
ED
(4)

NEUTR
AL
(3)

DISSATIS
FIED
(2)

HIGHLY
DISSATISF
IED

WEIGHTED
AVERAG
E

PRICE
BRAND
IMAGE
QUALITY
SIZE
COMFOR
T
DURABIL
ITY

7
23

23
15

17
7

2
5

1
_

3.64
4.12

18
17
25

21
19
17

11
13
8

1
-

4.14
4.04
4.34

15

27

4.14

Satisfaction level of customer

4.4

4.34

4.2

4.12

4.14

4.14
4.04

4
weighted average

WEIGHTED AVG.

3.8
3.6

3.64

3.4
3.2
PRICE

BRAND IMAGE QUALITY

SIZE

COMFORT DURABILITY

Factors

INTERPRETATION: A Study show that consumers are not highly

satisfied with the prices of branded shoes but they are satisfied
with other attributes to large extent.

84

BRAND LOYALTY
Brand loyalty refers to that a customer being permanent
consumer of brand and he never switch over to other brand.
RESPONSES

FREQUENCY
RESPONDENT

YES
NO

15
35

OF PERCENTAGE
RESPONDENTS

OF

30
70

BRAND LOYALTY

30%

70%

YES

NO

INTERPRETATION: By this we can surely say customers are

looking for new phone brands and new features rather than
established brands.

85

CHAPTER 5

CONCLUSION

86

FINDINGS, SUGGESTIONS AND

CONCLUSION
Research Finding:
Android is the leader in the market
Consumer Reaction suggested that they are not brand
loyal in case of smartphones.
They are looking for amazing features with a compact
price that suits their pocket.
The main reasons for people buying an iPhone is the brand
royalty & its features.
The main reasons for people buying an android phone is
the low price and the number of Applications.
As study indicates 72% are those whose purchasing
decision is affected by advertisement and 28%
respondents decision is not affected by advertisement.
People in Modern world tend to keep changing their
smartphones no matter how expensive it is in span of 11.5 years.

87

SUGGESTIONS:
In todays modern dynamic world people are only
brand loyal if u give them something new, so
established brand should try and give something new
otherwise they will lose their buyers.
Price and features should accompany each other so
that it is easy for people to buy phones.
Indian market should be provided with opportunities
so that it can be called a major partner in world
market.

Apple Inc. should launch some mid-level variants also

so that people who buy android phones because of
their low prices will shift to iPhone if the prices are
kept low.
Android should thoroughly check their phones so that
the hanging problem does not persist anymore

In todays world where marketing has a huge effect on

purchasing power of people, mobile phone companies
should try to keep an edge over their competitors
marketing strategies so that it can be a market leader.
88

CONCLUSION:
We can herby, conclude by the research done that:
Indian Smartphone Market is an ever-growing & dynamic
as well; people get bored by the smartphones within 1-1.5
years.
People in the market are not brand loyal, as they choose
new upcoming companies which come up with some
amazing smartphones in a compact price.
ANDROID is the leader of the market
Apple tends to keep its loyal customer & does not lose
them easily as it comes up with new things every year

This project work gives an estimation about the consumer

behavior towards smartphones in Indian market & tries to
mainly emphasize on iPhone & android phones as they are
the main smartphone Brands

89

CHAPTER 6

ANNEXURE

90

QUESTIONNAIRE
Personal Profile
1.
2.
3.
4.

Name:
Address:
Telephone:
Occupation:

Q1. What is your age?

A.
B.
C.
D.

15-25
25-35
35-50
50+

Q2. If you Own a Smartphone, then do

you own an Android Phone or IOs
Phone?
A.
B.

IPhone
Android Phone

Q3. If you use an android phone, then

which brand do you use?
A.
B.
C.
D.

Samsung
Others
Micromax
Motorola
Xiaomi

E.

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Q4. If you own an IPhone, what is the

reason behind buying it?
A.
B.
C.
D.

Features
Status symbol
Addiction to apple products
All of the above

Q5. What are your reasons behind not

buying android phones?
A.
B.
C.
D.

Hanging problems with android phones

Camera quality
ITunes Stores
All of the above

Q6. What are the reasons buying an

Android Phone?
A.
B.
C.
D.

Low price
Free applications
Variety of options
Trend in the market

Q7. What are your reasons behind not

buying an IPhone?
A.
B.
C.
D.

Expensive Buy
Hard to operate
Delicate
Others

Q8. Do you frequently change or want

to change your phone after a span of
time such as 1 or 1.5 years?
A.

Yes
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B.

No

Q9. What feature you look for before

buying it either, iPhone or android
phone?
A.
B.
C.
D.
E.

Camera
Storage capacity
Processor & RAM
Brand
All of the above

Q10. Does advertising have an effect

on your purchasing decision?
A.
B.

Yes
No

Q11. Does price play an important role

in your purchasing decision?
A.
B.

Yes
No

BIBLIOGRAPHY:
The list of reference for the purpose of completing this
marketing project is as given below:

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Sources
www.enotes.com
www.communitymedicine4asses.wordpress.com
www.wikipedia.com
www.statista.com
www.managementstidyguide.com
www.consumerpsychologist.com
www.google.com

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