Chapter 1

INTRODUCTION

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 INTRODUCTION

1.1 INTRODUCTION TO LAPTOPS

A Laptop is a microcomputer whose price, size, and capabilities make it useful for
individuals. The term was popularized by Byte magazine, as well as Apple with the
Apple II in the late-1970s and early-1980s, and afterwards by IBM with the IBM Laptop.
Often, the term "Laptop" is used exclusively for computers running a Microsoft Windows
operating system, but this is erroneous. For example, a Macintosh running Mac OS and
an IBM LAPTOP compatible running Linux are both Laptops. This confusion stems from
the fact that the term "LAPTOP" is often used as a shorthand form for "IBM LAPTOP
compatible" and historically Mac OS has run on non-IBM compatible hardware like the
Power LAPTOP architecture. A Laptop is a personal computer designed for mobile use
and small and light enough to sit on a person's lap while in use.[1] A Laptop integrates
most of the typical components of a desktop computer, including a display, a keyboard, a
pointing device (a touchpad, also known as a trackpad, and/or a pointing stick), speakers,
and often including a battery, into a single small and light unit. The rechargeable battery
(if present) is charged from an AC adapter and typically stores enough energy to run the
Laptop for two to three hours in its initial state, depending on the configuration and
power management of the computer.

Laptops are usually notebook-shaped with thicknesses between 0.7–1.5 inches (18–
38 mm) and dimensions ranging from 10x8 inches (27x22cm, 13" display) to 15x11
inches (39x28cm, 17" display) and up. Modern Laptops weigh 3 to 12 pounds (1.4 to
5.4 kg); older Laptops were usually heavier. Most Laptops are designed in the flip form
factor to protect the screen and the keyboard when closed. Modern tablet Laptops have a
complex joint between the keyboard housing and the display, permitting the display panel
to swivel and then lie flat on the keyboard housing.

Laptops were originally considered to be "a small niche market" and were thought
suitable mostly for "specialized field applications" such as "the military, the Internal
Revenue Service, accountants and sales representatives". But today, there are already

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more Laptops than desktops in businesses, and Laptops are becoming obligatory for
student use and more popular for general use. In 2008 more Laptops than desktops were
sold in the US and it has been predicted that the same milestone will be reached in the
worldwide market as soon as late 2009

History

As the personal computer became feasible in the early 1970s, the idea of a portable
personal computer followed. A "personal, portable information manipulator" was
imagined by Alan Kay at Xerox PARC in 1968 and described in his 1972 paper as the
"Dynabook".

The IBM SCAMP project (Special Computer APL Machine Portable), was demonstrated
in 1973. This prototype was based on the PALM processor (Put All Logic In Microcode).

The IBM 5100, the first commercially available portable computer, appeared in
September 1975, and was based on the SCAMP prototype.

As 8-bit CPU machines became widely accepted, the number of portables increased
rapidly. The Osborne 1, released in 1981, used the Zilog Z80 and weighed 23.5 pounds
(10.7 kg). It had no battery, a 5" CRT screen and dual 5¼" single-density floppy drives.
In the same year the first Laptop-sized portable computer, the Epson HX-20, was
announced. The Epson had a LCD screen, a rechargeable battery and a calculator-size
printer in a 1.6 kg (3.5 lb) chassis. Both Tandy/RadioShack and HP also produced
portable computers of varying designs during this period.

The first Laptops using the flip form factor appeared in the early 1980s. The Dulmont
Magnum was released in Australia in 1981-2, but was not marketed internationally until
1984-5. The 8150 US$ GRiD Compass 1100, released in 1982, was used at NASA and
by the military among others. The Gavilan SC, released in 1983, was the first notebook
marketed using the term "Laptop". From 1983 onwards, several new input techniques
were developed and included in Laptops, including the touchpad (Gavilan SC, 1983), the
pointing stick (IBM ThinkPad 700, 1992) and handwriting recognition (Linus Write-Top,

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1987). Some CPUs were designed specifically for low power use including Laptops (Intel
i386SL, 1990), and were supported by dynamic power management features (Intel
SpeedStep and AMD PowerNow!) in some designs. Displays reached VGA resolution by
1988 (Compaq SLT/286) and 256-color screens by 1993 (PowerBook 165c), progressing
quickly to millions of colors and high resolutions. High-capacity hard drives and optical
storage (CD-ROM followed by CD-R and CD-RW and eventually by DVD-ROM and the
writable varieties) became available in Laptops soon after their introduction to the
desktops.

Today
During the 1990s, the power of Laptopsincreased radically, blurring the formerly sharp
distinction between Laptopsand multi-user computers, such as mainframes. Today
higher-end computers often distinguish themselves from Laptopsby greater reliability or
greater ability to multitask, rather than by brute CPU ability. In today's common usage,
LAPTOP usually indicate an IBM LAPTOP compatible. Due to this association, some
manufacturers of Laptops that are not IBM LAPTOPs avoid explicitly using the terms to
describe their products.
Due to networks, the Internet and such factors as digital rights management, modern
Laptopsare no longer the exclusive tools of their users. Support of desktop computers in
business now requires as much bureaucracy and professional training as did operating a
time-sharing system, with the drawback of much lower security and many users skilled
enough to get into trouble but not skilled enough to get out. Modern computers are
thousands of times more powerful than those of only twenty years ago. Multi-core
processors, a gigabyte of RAM and hard drives of several hundred gigabytes have
become the norm. These numbers eclipse even supercomputers from past decades.

1.1.1 Uses
Laptops are normally operated by one user at a time to perform such general purpose
tasks as word processing, Internet browsing, Internet faxing, e-mail and other digital
messaging, multimedia playback, computer game play, computer programming, etc. The
user of a modern Laptop may have significant knowledge of the operating environment

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and application programs, but is not necessarily interested in programming or even able
to write programs for the computer therefore, most software etc. The user of a modern
Laptop may have significant knowledge of the operating environment and application
programs, but is not necessarily interested in programming or even able to write
programs for the computer. Therefore, most software written primarily for Laptops tends
to be designed with simplicity of use, or "user-friendliness" in mind.

1.1.2 Indian LAPTOP market scenario

PTI (Posted online: Sunday, January 28, 2007) Driven by huge investments across
various sectors, India's domestic IT market is expected to grow at 21.5 per cent in year
2007 at Rs 75,891 crore, making it the fastest-growing segment in the Asia-Pacific
region. "A major wave of IT investments has started to take place across banks, financial
services institutions, telecom, manufacturing, government, resources, education and other
industries," IDC said in its report on "India Domestic IT market Top 10 Predictions for
2007." This is probably why India is the fastest-growing country by IT spending in 2006
at 22.4 per cent and is forecast to remain so in 2007 at 21.5 per cent when it reaches Rs
75,891 crore.

BS Reporter / New Delhi May 03, 2007 The Laptop market is set to grow by 22 per cent
in this financial year and may record sales of 6.5 million units. According to the
Manufacturers’ Association for Information and Technology (MAIT), strong
macroeconomic conditions and buoyant buying sentiments in the market led by demand
from various industry verticals will spur the growth.
MAIT also announced that the total LAPTOP sales between October and December
2006, including desktop computers and notebooks, were 1.39 million units, registering a
growth of 28 per cent over the same period last financial year
According to the report, the rise in the sales in the third quarter was due to “increased
consumption in the household segment while industry verticals and corporate sectors
such as telecom, banking and financial services, manufacturing and IT-enabled services,
experienced growth, these are expected to gain further momentum in the fourth quarter of
the financial year”.

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The major market highlights visible through 3Q 2006 were:

• Education segment leading the growth of LAPTOP market – Shipments grew by

more than 300% year-on-year (3Q 2006 over 2Q 2006) to the Education segment
• In comparison to the metropolitans, the growth of LAPTOP market is much more
in the smaller towns.

1.1.3 LAPTOP Growth in Home segment

Not that the other markets aren’t showing a healthy growth, they are. In fact the
household sector is showing better growth than the business segment. The latter may
account for about 77 percent of sales (2006-2007) and households just 23 percent of the
total (desktops) but household sales of Laptop’S increased by 12 percent, higher than the
7 percent growth of the business sector.

The home segment is doing well not just because incomes are rising, but also because
prices of Laptop’S are falling. In fact the price differential between a branded LAPTOP
and an assembled one has lessened substantially. This is partly due to the government’s
lowering levies and duties. Another factor which is driving up home Laptop sales is the
widely available and inexpensive broadband. For just Rs 250 ($6.25 USD) to Rs 500
($12.5 USD) - you can get a broadband connection (with limited downloads). In fact
India’s internet usage is the fastest growing in the world according to a March 2007 news
report of the IAMAI (Internet Usage and Mobile Association of India). India’s internet
population grew by 33 percent and the country today has over 21 million users of the
internet, as compared to 16 million 16 million a year ago. Another major reason behind
the LAPTOP growth figures are the penetration of other electronic devices in the market
like digital cameras, handy cams etc. which are compatible with LAPTOPs. Hence the
applications of LAPTOP are getting widened.

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1.1.4 Market players in LAPTOP industry in India

• DELL
• TOSHIBA
• HCL
• IBM
• APPLE
• HP/COMPAQ

1.2 CONSUMER BUYING BEHAVIOR

Introduction to the Project
Buying Behavior is the decision processes and acts of people involved in buying and
using products. One needs to understand:
• Why consumers make the purchases that they make?
• What factors influence consumer purchases?
• The changing factors in our society.
Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A
firm needs to analyze buying behavior for:
• Buyer’s reactions to a firms marketing strategy has a great impact on the
firm’s success.
• The marketing concept stresses that a firm should create a Marketing Mix
(MM) that satisfies (gives utility to) customers, therefore need to analyze the
what, where, when and how consumers buy.
• Marketers can better predict how consumers will respond to marketing
strategies.

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Stages of the Consumer Buying Process

Actual purchasing is only one stage of the process. Not all decision processes lead to a
purchase. All consumer decisions do not always include all 6 stages, determined by
the degree of complexity... The 6 stages are:

a) Problem/Need Recognition - How do you decide you want to buy a particular product
or service? It could be that your DVD player stops working and you now have to look for
a new one, all those DVD films you purchased you can no longer play! So you have a
problem or a new need. For high value items like a DVD player or a car or other low
frequency purchased products this is the process we would take. However, for impulse
low frequency purchases e.g. confectionery the process is different.

b) Information search - So we have a problem, our DVD player no longer works and we
need to buy a new one. What’s the solution? Yes go out and purchase a new one, but
which brand? Shall we buy the same brand as the one that blew up? Or stay clear of that?
Consumer often goes on some form of information search to help them through their
purchase decision. Sources of information could be family, friends, neighbors who may
have the product you have in mind, and alternatively you may ask the sales people, or
dealers, or read specialist magazines like What DVD?

c) Evaluation of different purchase options - So what DVD player do we purchase?

Shall it be Sony, Toshiba or Bush? Consumers allocate attribute factors to certain
products, almost like a point scoring system which they work out in their mind over
which brand to purchase. This means that consumers know what features from the rivals
will benefit them and they attach different degrees of importance to each attribute. For
example sound maybe better on the Sony product and picture on the Toshiba, but picture
clarity is more important to you then sound. Consumers usually have some sort of brand
preference with companies as they may have had a good history with a particular brand
or their friends may have had a reliable history with one, but if the decision falls between
the Sony DVD or Toshiba then which one shall it be? It could be that the review the

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consumer reads on the particular Toshiba product may have tipped the balance and that
they will purchase that brand.

d) Purchase decision - Through the evaluation process discussed above consumers will
reach their final purchase decision and they reach the final process of going through the
purchase action e.g. The process of going to the shop to buy the product, which for some
consumers can be as just as rewarding as actually purchasing the product. Purchase of the
product can either be through the store, the web, or over the phone.

e) Post Purchase Behavior - Ever have doubts about the product after you purchased it?
This simply is post purchase behavior and research shows that it is a common trait
amongst purchasers of products. Manufacturers of products clearly want recent
consumers to feel proud of their purchase; it is therefore just as important for
manufacturers to advertise for the sake of their recent purchaser so consumers feel
comfortable that they own a product from a strong and reputable organization. This limits
post purchase behavior i.e. you feel reassured that you own the latest advertised product.

Types of buying behavior

There are four typical types of buying behavior based on the type of products that intends
to be purchased. Complex buying behavior is where the individual purchases a high value
brand and seeks a lot of information before the purchase is made. Habitual buying
behavior is where the individual buys a product out of habit e.g. a daily newspaper, sugar
or salt. Variety seeking buying behavior is where the individual likes to shop around and
experiment with different products. So an individual may shop around for different
breakfast cereals because he/she wants variety in the mornings! Dissonance reducing
buying behavior is when buyer is highly involved with the purchase of the product,
because the purchase is expensive or infrequent. There is little difference between
existing brands an example would be buying a diamond ring, there is perceived little
difference between existing diamond brand manufacturers.

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Factors that affect the Consumer Buying Decision Process

A consumer, making a purchase decision will be affected by the following three factors:
• Personal
• Psychological
• Social

Personal factors - Unique to a particular person. Demographic Factors: Sex, Race, Age.
Who in the family is responsible for the decision making? Young people purchase things
for different reasons than older people.

Psychological factors - Psychological factors include:

i) Motives - A motive is an internal energizing force that orients a person's activities

toward satisfying a need or achieving a goal. Actions are effected by a set of
motives, not just one. If marketers can identify motives then they can better
develop a marketing mix.

ii) Perception - What do you see?? Perception is the process of selecting, organizing and
interpreting information inputs to produce meaning. IE we chose what info we
pay attention to, organize it and interpret it. Information inputs are the sensations
received through sight, taste, hearing, smell and touch.

iii) Ability and Knowledge - Need to understand individual’s capacity to learn.

Learning, changes in a person's behavior caused by information and experience.
Therefore to change consumers' behavior about your product, need to give them
new information re: product...free sample etc. When making buying decisions,
buyers must process information. Knowledge is the familiarity with the product
and expertise. Inexperience buyers often use prices as an indicator of quality
more than those who have knowledge of a product. Learning is the process
through which a relatively permanent change in behavior results from the
consequences of past behavior.

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iv) Attitudes - Knowledge and positive and negative feelings about an object or activity-
maybe tangible or intangible, living or non- living.....Drive perceptions.
Individual learns attitudes through experience and interaction with other people.
Consumer attitudes toward a firm and its products greatly influence the success
or failure of the firm's marketing strategy.

v) Personality - All the internal traits and behaviors that make a person unique,
uniqueness arrives from a person's heredity and personal experience. Examples include
Work holism, Compulsiveness, Self confidence, Friendliness, adaptability,
ambitiousness, dogmatism, authoritarianism, introversion, extroversion, aggressiveness,
competitiveness. Traits affect the way people behave. Marketers try to match the store
image to the perceived image of their customers.

vi)Lifestyles - Recent US trends in lifestyles are a shift towards personal independence

and individualism and a preference for a healthy, natural lifestyle. Lifestyles are the
consistent patterns people follow in their lives.

Social Factors - Consumer wants, learning, motives etc. are influenced by opinion
leaders, person's family, reference groups, social class and culture.

i) Opinion leaders - Marketers try to attract opinion leaders...they actually use (pay)
spokespeople to market their products. Michael Jordon (Nike, McDonalds,
Gatorade etc.)

ii) Roles and Family Influences - Role...things you should do based on the expectations
of you from your position within a group. People have many roles: husband,
father, employer and employee etc. Individuals role are continuing to change
therefore marketers must continue to update information. Family is the most
basic group a person belongs to. Marketers must understand: that many family
decisions are made by the family unit

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iii) Reference Groups - Individual identifies with the group to the extent that he takes on
many of the values, attitudes or behaviors of the group members. These include
families, friends, civic and professional organizations. The degree to which a
reference group will affect a purchase decision depends on an individual’s
susceptibility to reference group influence and the strength of his/her
involvement with the group.

iv) Social Class - It refers to an open group of individuals who have similar social rank.
Social class influences many aspects of our lives. Social class determines to some extent,
the types, quality, and quantity of products that a person buys or uses. Lower class people
tend to stay close to home when shopping; do not engage in much pre purchase
information gathering.

v) Culture and Sub-culture - Culture refers to the set of values, ideas, and attitudes that
are accepted by a homogenous group of people and transmitted to the next
generation. Culture also determines what is acceptable with product advertising.
Culture determines what people wear, eat, reside and travel. Cultural values in
the US are good health, education, individualism and freedom.

If a marketer can identify consumer buyer behavior, he or she will be in a better position
to target products and services at them. Buyer behavior is focused upon the needs of
individuals, groups and organizations. It is important to understand the relevance of
human needs to buyer behavior.

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 CHAPTER 2

REVIEW
OF
LITERATURE

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 REVIEW OF LITERATURE

Sherman (1987) Based on a series of personal interviews, this study explores various
components of decision-making for the purchase of a home computer. The findings
suggest that, although males were overwhelmingly the dominant influence in
various stages of decision-making, demographic variables were associated with
varying patterns of influence among family members. Differences were also noted
between demographic factors and sources of information used prior to purchase
results, suggesting that retailers of Laptops would benefit by profiling potential
submarkets of this product. Furthermore, children were shown to have input,
particularly as initiators, of the decisions concerning home computers.

Assael (1992) Searching for information on the Internet has been found to be the most
important predictor of online buying behavior (Bellman et al, 1999). However, detailed
demographics are difficult to examine in click stream data due to privacy concerns (Moe,
2003). We fill this gap by examining detailed demographic information in association
with both search and purchase behavior online. In addition, we examine negative IT
factors that consumers experience during their search and purchasing experiences. We
find that there is a significant association between a consumer’s experience with poorly
implemented web design features and larger consumer search sets. In addition, we find
that demographic variables, including income, education, online tenure, and connection
type, are all significant factors associated with consumer online search and consumer
buy-to-browse ratio.

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Gordon (2001) worked on foundations of Consumer Behavior Analysis. The essay
reviews the course of consumer behavior analysis, a research program that employs the
findings and principles of behavioral research to elucidate consumer behavior and
marketing management. Attempts have been made from time to time to integrate a
behavior analytic perspective into marketing research; the tendency has been to
concentrate on the potential contribution of operant psychology to managerial practice
rather than to examine the potential of behaviorism to provide a theoretical basis for
marketing and consumer research. The essay therefore pursues 3 themes: (1) to explicate
recent developments in behavior analysis, such as the analysis of verbal behavior; (2) to
take account of work by behavior analysts on economic choice and to apply its lessons to
understanding consumer behavior and marketing action in naturally occurring
environments; (3) to establish the requirements of an interpretive approach to consumer
behavior and marketing which is not limited to an experimental analysis of choice.

AvantGo (2005) The 2005 Consumer Electronics Survey is based on responses from 552
American users of the AvantGo service. The self administered survey was completed
over a four-week period in May 2005. . Of those surveyed: 89% of respondents reported
that they regularly shop online with 33% reporting that they have made 50% or more of
their electronic purchases online in the last 12 months; price is the biggest driver of
electronics purchasing decisions (76%) followed by brand name (56%) and online
recommendations (38%). Consumer electronics spend is on the uptake with nearly 2/3 of
respondents intending to spend more than $500 on purchases in the next year. 29% of that
group intends to spend more than $1,000, While 63% of respondents already own three
televisions or more, 39% indicated that they are planning on purchasing a new television
in the coming year, with 23% reporting that they intend to buy an HDTV and 8%
planning on investing in a home theater system.

Yamaguchi (2005) Japan laptop Consumer Analysis, 2004: Survey of Non-laptop

Households. This IDC study looked at Internet-enabled mobile phone users who do not
own LAPTOPs and summarizes the results of a survey conducted on laptop usage and
purchase sentiment. Three hundred and ninety people responded to the primary survey

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and 241 people responded to the secondary survey. Based on the responses, we
conducted analysis on the "influence of mobile phone usage on laptop purchase
sentiment", "factors influencing LAPTOP purchase timeframe and purchase budget",
"LAPTOP vendor image", and so on. IDC Japans Personal Computing & Digital Imaging
analyst, Yamaguchi opines, "Increasing the visibility of the laptop vendors is an effective
way to promote laptop purchase. When non-laptop owners have faith in the vendor’s
reliability, this has a positive effect on purchase budgets."

Zellen (2005) studies broadband, entertainment & mobility drive consumer LAPTOP
upgrades. IDC observes that both the emergence of digital entertainment and the ongoing
pursuit of mobility are encouraging some users to upgrade earlier than that. LAPTOP
usage appears to be shifting away from productivity to more entertainment-type activities
such as online gaming and DVD viewing. Desktops remain the most prevalent LAPTOP
form factor; though notebooks/Laptops are increasing in usage. IDC notes nearly 33% of
respondent households own multiple laptops, which it believes represents an opportunity
for companies providing goods that both enable home networks and/or leverage home
networks. IDC finds that HP/Compaq and Dell remain the top brands, with HP in the
lead. IDC finds that consumers still rely on traditional sales channels when acquiring
Laptops, and that a purchase through a physical retail store is the most frequently used
method (41.2%) compared to an online purchase through a laptop vendor's website
(20.4%).

Chitra K. (2006) adoption is the decision of an individual to become a regular user of a

product. The individual in the process of an adoption decision undergoes a series of
stages. Understanding these stages is imperative for a marketer to introduce a new
product successfully. The laptop market is highly competitive and the players are
competing with each other for a market share. With this account, the rural market of India
has been considered for this study. The provisional census data for 2001 reveals that
72.2% of the total Indian population lives in rural areas. The findings of the National
Council of Applied Economic Research (NCEAR) suggest that the rural consumers are
significantly different from the urban ones in terms of consumer behavior and purchase

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patterns. This article discusses the adoption behavior of rural consumers with respect to
Laptops and identifies the demographic variables distinguishing the adoption behavior.

Matsuo (2006) this IDC study compiled results of surveys with owners and intended
purchasers of laptops, thin TVs, and HDD/DVD recorders. The surveys were conducted
in mid-February 2006, and the preliminary survey obtained responses from 4,317 users
and the secondary survey from 1,823 users, with 1,000 effective responses. Based on the
responses, the report compared the usage status between Laptops and digital home
appliances as well as purchase trends of comparative products among users. The survey
also looked into the respondents' perception of their living standards, and analyzes the
influence on the purchase trends of Laptops and digital home appliances. The survey
clarified the purchase trends among users of Laptops with TV tuners as well as the
purchase trends of relevant products. The demand for digital home appliances is clearly
increasing and that laptop vendors will have to conduct a wide variety of marketing
activities to prevent The laptop from being gulped into the growing wave of digital home
appliances.

Gownder (2007) digital lifestyle applications drive laptop value and usage. Digital
lifestyle scenarios, which bring together hardware, software, and services to create rich
application experiences, can help marketers identify and acquire these elusive high-
spending consumers. Consumers engaged in both the "music" and "memories" (digital
photography) scenarios are willing to spend much more on a new laptop than consumers
who aren't engaged in those scenarios. Scenario-engaged consumers also spend
significantly more time using their Laptops. Overall; the scenario experience fosters a
sense of laptop attachment. Marketers should specifically design their marketing
campaigns to attract scenario-engaged consumers. They should also develop creative
strategies for demonstrating their Laptops' scenario-friendliness, for deepening the
scenario experience.
Shim (2007) this IDC study affirms the latest in consumer laptop buying behavior and
examines the motivations that influence that behavior. This study details the results of
IDC's 2006 U.S. Consumer laptop Survey, a national survey of 1,384 U.S. households

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that was conducted online in late Nov. 2006 to assess current household usage and future
demand for Laptops. The results from this survey support the notion of increased
mainstream notebook adoption. First, about 71% of 1,400 respondents said they are
considering purchasing a new laptop in the next twelve months. Of the 71% of
respondents, 45% are considering notebooks. Second, over 60% of respondents
considering a laptop purchase in the next twelve months said they are most likely to
spend over $1,000 on their next laptop. Finally, style, which at this point we identify as a
quality more applicable to a desktop, was a low priority in considerations for respondents'
next laptop purchase." Consumers engaged in both the "music" and "memories" (digital
photography) scenarios are willing to spend much more on a new laptop than consumers
who aren't engaged in those scenarios. Scenario-engaged consumers also spend
significantly more time using their Laptops. Overall; the scenario experience fosters a
sense of laptop attachment. Marketers should specifically design their marketing
campaigns to attract scenario-engaged consumers. They should also develop creative
strategies for demonstrating their laptops' scenario-friendliness, for deepening the
scenario experience.

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 Chapter 3

Need, Scope and

Objectives
Of the study

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3.1 NEED OF STUDY
The need of the study for knowing that What was the trend of LAPTOP usage pattern at
a particular place? What are the various factors which help the consumers in making their
purchase?The study was also conducted for knowing that What are the popular purchase
locations in a particular place? What are the major problems which consumers
facenduring the purchase of a LAPTOP and even post purchase?

Answers to these questions are a must to be in the knowledge of the LAPTOP marketers
so that it can work in accordance and achieve optimal efficiency. Promotion of
company’s products depends a lot upon continuous research process performed at various
stages and for different types of environment. Hence this research can be helpful for
various LAPTOP marketers. Also, a lot of general awareness can be generated by means
of this research. Cities like Jalandhar, where the LAPTOP market is increasing faster in
comparison to the metropolitans make the relevance of such type of researches.

3.2 SCOPE OF STUDY

The scope of the study was limited to the customers who are using laptop and residing
Jalandhar city only. The respondents was 80. The study was only focused who are using
laptop in home segment

3.3 OBJECTIVES OF STUDY

The project aims at the following objectives:
 To study the various factors influencing the purchase decision of laptop buyers.
 To find out the problems encountered by the customers during purchase and post
purchase of laptop.
 To estimate the brand preferences of the consumers for laptop purchase.
 To understand the need and usage pattern of the consumers with regards to laptop.

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 Chapter 4

RESEARCH
METHODOLOGY

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 RESEARCH METHODOLOGY

Research Methodology
Research Methodology is a way to systematically solve the research problem. The
Research Methodology includes the various methods and techniques for conducting a
Research “Marketing Research is the systematic design, collection, analysis and reporting
of data and finding relevant solution to a specific marketing situation or problem”.
Research is thus an original contribution to the existing stock of knowledge making for
its advancement. The purpose of Research is to discover answers to the Questions
through the application of scientific procedures. A specified framework for collecting
data in an effective manner is called “Research Design”. The research process followed
by us consists of following steps:

4.1 RESEARCH DESIGN

The research design for the research was descriptive and conclusion oriented.

4.1.1 Descriptive Research: -A type of conclusive research, which has as its major
objective the description of something-usually market characteristics or functions. In
other words descriptive research is a research where in researcher has no control over
variable. He just presents the picture, which has already studied.

4.1.2 Conclusion Oriented Research: -Research designed to assist the decision maker in
the situation. In other words it is a research when we give our own views about the
research.

4.2 SAMPLING DESIGN

Sampling can be defined as the section of some part of an aggregate or totality on the
basis of which judgment or an inference about aggregate or totality is made. The
sampling design helps in decision making in the following areas: -

4.2.1 Sampling Universe-The universe comprises of two parts as theoretical universe

and accessible universe

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Theoretical universe- It includes all the people using Laptop in the world.
Accessible universe- It includes all the people using Laptop in India.

4.2.2 Sample size- Sample size refers to the total number of members in the sample. The
sample size of the study is 80.

4.2.3 Sample unit- Sample unit include the people using Laptop in Jalandhar.
4.2.4 Sampling Techniques- The sampling technique used is non-probability random
convenience sampling.

4.3 DATA COOLECTION AND ANALYSIS

4.3.1 Data Collection

Research work is descriptive in nature. Information would be collected from both
Secondary and Primary data.

Secondary sources- Secondary data is that, which has already been collected by
someone else, which already had been passed through the statistical process. Secondary
data would be collected through magazines, websites, newspapers and journals.

Primary sources- Primary data is that, which is collected fresh and for the first time, and
thus happen to be original in character. Primary data is collected by conducting surveys
through questionnaire, which include both open- ended and close-ended questions.

4.3.2. TOOLS OF ANALYSIS

After collecting the data, it analyzed through various statistical tools and techniques. The
analysis of data requires a number of closely related operations such as establishments of
categories, the applications of these categories to raw data through coding, tabulation and
then drawing statistical inferences.

23
4.3.3 TOOLS OF PRESENTATION
After collecting data through questionnaire and analyzing the data through various
statistical tools and technique the next step is to preset the data by using tools of
presentation like figure, bar graphs, tables and pie charts

4.4 LIMITATIONS OF THE STUDY

The limitations of the study will be:
• The research was carried out in a short period. Therefore the sample size and the
parameters were selected accordingly so as to finish the work within the given
time frame.
• The information given by the respondents might be biased some of them might
not be interested to give correct information.
• Some of the respondents could not answer the questions due to lack of
knowledge.
• Some of the respondents of the survey were unwilling to share information.

24
 CHAPTER -5

DATA ANALYSIS
AND
INTERPRETATION

25
 DATA ANALYSIS AND INTERPRETATION
1. Reasons For Prefer Laptop than PC
Table 5.1 Reasons for Prefer Laptop Than PC

Reasons No. of Respondents %Age of Respondents

Portability 21 26.25
Status Symbol 23 28.75
Looks 15 18.75
Provide Extra Features than PC 16 20
Any Other 5 6.25
Total 80 100

Fig 5.1 Reasons for Prefer Laptop Than PC

REASONS
26.75
50 28.75 18.75 20 6.25

REASONS

Analysis and Interpretation: - Majority of the respondent i.e.29% of the respondent

prefer Laptop than P.C because of status symbol followed by the 27% of the respondent
who prefer Laptop due to portability. So it is interpreted that the status symbol was the
main reason for preference laptop than PC

2.You Are Using Laptop From.

Table . 5.2 Usages of Laptop

26
 Time Period No. of Respondents %Age of Respondents
Last 1 Month 25 31.25
Last 6 Month 27 33.75
Last 1 Year 18 22.5
More than 1 Year 10 12.5
Total 80 100

Fig . 5.2 Usages of Laptop

%age of Respondents

33.75
31.25

22.5
%
G
A
E

12.5

Last 1 Month Last 6 M0nth Last 1 Year More than 1 Year

TIMEPERIOD

Analysis And Interpretation: In this fig we see that33.75% of the respondents use
Laptop from last 6 months and 12.5% respondents use more than 1 year. So it is
interpreted that majority of the respondents are using laptop from last 6 month.

3. Awareness of Various Brands of Laptop

Table 5.3 : Awareness of Various Brands of Laptop

Brands No of Respondents %Age of Respondents

27
 Dell 18 22.5
Lenovo 12 15
HP 30 37.5
Toshiba 5 6.25
Compaq 15 18.75

Figure no 5.3: Awareness of Various Brands of Laptop

18.75
22.5 dell
lenovo
6.25
hp
15
toshiba
compaq
37.5

Analysis and Interpretation: In this table we see that 37.5% respondents aware of HP
Laptop,22.5% respondents aware of dell,18.75% respondents are aware of Compaq
Laptop and6.25%respondents are aware of Toshiba Laptops.

4. Factors Affecting Laptop

Table.5.4 Factors Affecting the Decision to Purchase a Laptop
Number Of Respondents Who Ranked a
Particular Factor 1, 2 etc. Mean
Purchase Factors
1 2 3 4 5 6 7 (Rank)
Price 18 14 18 7 6 3 14 3.4

28
Latest configuration 38 16 9 13 1 3 0 2.15
Looks of LAPTOP 7 11 17 12 19 11 3 3.9
Buying convenience 1 3 5 9 33 23 6 5.04
After Sales service 10 23 18 10 6 7 6 3.3
Brand of
4 11 10 20 11 16 8 4.29
LAPTOP/components
Add Ins 2 2 3 9 4 17 43 5.9

Fig. 5.4 Factors Affecting the Decision to Purchase a Laptop

Price

Latus
3.4
configuration
5.9
2.15 Looks

3.9
4.29 Buying
convenience
Aft Sale service
3.3 5.04

Brand of Laptop

Add ins

Analysis and Interpretation: Here it can be seen that for maximum number of
respondents ‘Latest Configuration’ is the most important factor. There is a big gap
between the first and second most desired factor (after sales service). ‘Price’ lies at the
third place with a very little difference from the second place. ‘Convenience to buying’
and ‘Add ins’ are the factors to which the consumers give the least preference in
purchasing a LAPTOP for the household use.
5. Consumer Preference towards Purchase Location for Laptop.
Table 5.5 Laptop Location for Consumer Preference towards Purchase
Number Of Respondents Who Ranked a
Particular Option 1, 2 etc.
Purchase Options Mean (Rank)
1 2 3 4
Local vendor/ Nearby
33 13 18 16 2.2
Multi Brand Outlet
Exclusive outlet of
32 30 12 6 1.9
chosen brand

29
Exclusive market places 13 26 37 4 2.4
Online Purchase 2 11 13 54 3.49

Analysis and Interpretation: The order of preference of respondents towards the point
of purchase is:
1. Exclusive outlet of chosen brand
2. Local vendor/ Nearby Multi Brand Outlet
3. Exclusive market places
4. Online Purchase

Fig .5.5 Location for Consumer Preference towards Purchase

Local vendor
3.49 2.2

Exclusive outlet of
chosen brand
1.9 Exclusive mkt places

2.4
Online purchase

6. Reason for Pre Purchase Problems of Customer

Table 5.6 Pre Purchase Problems of the Customer

Problems Number 0f Responses Percentage

Genuinely of the product 52 24.07
Overcharging by vendor 42 19.44
After Sales Service & warranty 49 22.69
Purchase being time consuming 21 9.72
Dealer’s lack of knowledge 22 10.18
Fear regarding software/compatibility 30 13.9

30
 Figure 5.6 Pre Purchase Problems of the Customer

Analysis and Interpretation: During the purchase of a laptop ‘genuinely of the

product’ and ‘after sales service’ are the major causes of concern for the household
segment. They also fear about the fact that they are not being overcharged by the
vendor. Doubts related to compatibility of LAPTOP with various devices like Digital
cameras etc. and software also haunt LAPTOP buyers significantly.

7. Post Purchase Problems:

Table 5.7 Post Purchase Problems of Customer
Problems Number of Responses Percentage
Regular virus attacks 43 24.02
Frequent system crash 34 18.99
Slow processing speed 51 28.49
Difficulty of use 21 11.73
Poor aesthetics 30 16.77

Figure 5.7 Post Purchase Problems of Customer

31
Analysis & Interpretation: Most of the respondents (more than 60%) think that the
LAPTOPs that they are currently using (or use in future) are slow in terms of processing
speed. Regular virus attacks and frequent system crash are also major causes of concern
for the respondents. The survey can help the LAPTOP manufacturers in shifting their
priorities towards solving these problems which often worry the consumers.

32
8. Usage Pattern:
Table 5.8 Usage Pattern of the Customer
Common Tasks Percentage
Applications like Word, Excel etc. 29.63%
Internet Browsing 35.12%
DVD, Music playback 14.5%
Digital photos 8.44%
Digital movies 12.31%

Figure 5.8Usage Pattern of the Customer

Usage pattern
Digital Applications
movies like Word,
Digital photos 12% Excel etc.
8% 30%

DVD, Music
playback
15%
Internet
Browsing
35%

Analysis and Interpretation: It is seen that respondents mostly use their LAPTOPs
either for applications like Microsoft word or presentation etc. and for internet
surfing.
If we combine all other usages like – digital movies, images and music (i.e. digital
entertainment) – it accounts for 35% combined which is not small.

33
9. Laptop Usage (in hrs per week) by the Respondents
Table 5.9Laptop Usage by the Respondents

Time (in hrs) Number Of Respondents Percentage

Less than 10 14 18
10-20 33 40
20-30 23 29
30-40 7 9
40 & above 3 4

Figure 5.9 Laptop Usages by the Respondents

Analysis and Interpretation: Majority of the respondents (40%) fall under the category
of using the LAPTOP for 10-20 hrs per week. 29% of the respondents use the LAPTOP
for 20-30 hrs. A very minute percentage (13%) of the consumers work above 30 hours. It
can be judged that the respondents are mainly the users who operate only for work and do
not spend time in exploring things by using net etc.

34
10. Assessment of the Better Buying Experience With Regards to Laptop Purchase.
Table 5.10 Assessment of the Better Buying Experience With Regards To Laptop
Purchase
Number Of Respondents Who Ranked a
Parameters of Better Particular Parameter 1, 2 etc. Mean
Buying Experience 1 2 3 4 5 (Rank)
Proximity of the outlet 3 6 28 17 26 3.71
Technically strong Dealer 24 19 17 13 7 2.5
Best prices even at cost of
32 18 12 10 8 2.3
some inconvenience
Proper product
15 29 13 17 6 2.63
demonstration
Overall feel of the outlet 6 8 10 23 33 3.9

Fig .5.10 Assessment of the Better Buying Experience With Regards to Laptop
Purchase
Proxmity of the
outlet

3.9 3.71 Technically strong

dealer

2.63 Best prices evenat

2.5 cost of some
inconvenience
2.3 Proper product
demonstration

Overall feel of the

product

Analysis and Interpretation: Here it can be seen that price is coming out as one of the
most important parameter which is considered by the respondents even if it comes at the
cost of some inconvenience. However, it is closely followed by technical strength of the
dealer and proper product demonstration being performed. The proximity of the outlet
does not play any major role here.

11. Reasons for Shifting From Laptop to PC

Table 5.11 Reasons for Shifting From Laptop to PC

35
 Choice No Of Respondents %Age Of Respondents
PC 0 0
Laptop 80 100

Figure 5.11 Reasons for Shifting From Laptop To PC

laptop
100% pc

Analysis & interpretation: in this table we can see that 100% respondents want to shift
to Laptop and 0% respondents said that they don’t want to shift to pc.

36
CHAPTER -6

FINDINGS

37
FINDINGS
• latest configuration’ and ‘after sales service’ are the two most important factors
which help the customers in making the decision to purchase a laptop.
• More than 60% of the intended buyers express their concerns related to genuinity
of products and after sale service
• This is a very important finding as this can be one of the differentiating factors
that can help converting users assembled Laptop to branded Laptops and users of
assembled Laptops to premium brands
• High quality confidence,realibilty,gurantee of genuity and latest range are the
factors which promote the customers to opt for Branded Laptops and purchase
from branded outlets
• Dell and HP/Compaq are the brands which lead the race
• The Usage pattern of Laptop varies largely among the respondents
• Customer demands value for money and the similar results are drawn from this
study

38
 CHAPTER -7

CONCLUSIONS
AND
RECOMMENDATIONS

39
7.1 CONCLUSION
Based on the analysis made in the previous section, following conclusions can be drawn:
It has been observed that price has significant weightage in purchase decision but only along
with certain other factors like configuration, brand etc. The study conclude that the desired
features that can be installed in the laptop and also the cost factor. , it can be concluded that
most laptop users use their Laptops for running applications like MS word, MS power point
etc. and for browsing internet. The average usage time of Laptops in this segment is quite less
i.e. the majority of the respondents’ intent to work on laptop is 20 hrs app. on weekly basis.
The usage pattern of laptop varies largely among the respondents, however Customer demands
value for money and the similar results are drawn from this study. This has been reflected in
this study as well where half of the customers seem willing to pay premium over Laptops if
their problems and inconvenience faced by them at each stage – pre purchase, purchase and
post purchase – can be taken care of. The range of extra premium varies from 5%-10%.

40
7.2 RECOMMENDATION OF THE STUDY
• Latest configuration’ and ‘after sales service’ are the two most important factors
which affect the purchasing decision so the company should focus on these issues

• As from the study it is clear that usage pattern of the respondent varies so the
company should provide different models according to the requirement of the
customer.

• The companies should focus on the after sales service because it is the only factor
that affects the sales of their laptops.

• The companies should arrange some customer awareness programs so that the
customer becomes aware from the new features of the laptops.

• High quality confidence,realibilty,gurantee of genuity and latest range are the

factors which promote the customers to opt for Branded Laptops and purchase
from branded outlets

41
REFERENCES

42
 REFERENCES

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Laibson, D. (2000). Does the internet increase trading? evidence from investor behavior in
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Robinson, D. (2007). Managers' and investors' responses to media exposure of board
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Other Links
Capital risk available at http://en.wikipedia.org/wiki/Investment_risk, last accessed on
November 24, 2009
Currency risk available at http://en.wikipedia.org/wiki/Currency_risk, last accessed on
November 24, 2009

Different types of media coverage available at http://www.buzzle.com/articles/ different-types-

of-media-coverage.html, last accessed on November 24, 2009

Factors influencing investment decisions of investor available at

http://www.hsbc.co.in/1/2/personal/investments/new-invest/new-invest-factoraffecting, last
accessed on November 24, 2009

Financial risk available at http://en.wikipedia.org/wiki/Financial_risk, last accessed on

November 24, 2009

History of media available at http://en.wikipedia.org/wiki/Mass_media, last accessed on

November 24, 2009

44
How media influences our decisions available at http://www.decision-making-
confidence.com/media-influence-our-decisions.html, last accessed on November 24, 2009

Investor available at http://en.wikipedia.org/wiki/Investor#Types_of_investors, last accessed on

November 25, 2009

Investor psychology available at http://www.deanlebaron.com/book/ultimate/

chapters/invpsy.html, last accessed on November 25, 2009

Liquidity risk available at http://en.wikipedia.org/wiki/Liquidity-risk, last accessed on

November 25, 2009

Media available at http://en.wikipedia.org/wiki/Mass_media, last accessed on November 25,

2009

Media influence available at http://en.wikipedia.org/wiki/Media_influence, last accessed on

November 25, 2009

Negative effects of media available at http://www.buzzle.com/articles/negative -influences-of-

media.html, last accessed on November 25, 2009

Positive effects of media available at http://www.buzzle.com/articles/positive-effects-of-the-

media.html, last accessed on November 26, 2009

Retail investor available at http://en.wikipedia.org/wiki/Financial_market_parti cipants, last

accessed on November 26, 2009

Types of investments available at http://www.hsbc.co.in/1/2/personal/investments/new-

invest/news-invest-types, last accessed on November 26, 2009

45
ANNEXURE

46
 QUESTIONNAIRE

1.Why you prefer Laptop than PC?

Reasons Choice
1.Portability
2.StatusSymbol
3.Looks
4.Provide extra features than PC
5.Any other

2. You are using Laptop from ?

Time Period Choice

1.Last 1 month
2.Last 6 month
3.Last 1 year
4.More than 1 year

3.List out the brands of the Laptop you are aware of

……………………………………..

……………………………………….

………………………………………..

………………………………………..

………………………………………..

……………………………………….

………………………………………..

4. Which of the following factors are important to you while making the decision to
purchase a Laptop? (Please Rank them in order of priority, 1- highest priority)

Factor Priority

47
1. Price
2. Latest Configuration
3. Looks of Laptop
4. Convenience of buying
5. After Sales Services
6. Brand of Laptop or of different components
7. Add ins like speakers, modem etc.
8. Any other (pls specify)

5. Which of the following options would you prefer to make the final purchase of
Laptop? (Rank them in order of priority, 1- highest priority)

Option Rank
1. Local vendor/ Nearby Multi Brand Outlet
2. Exclusive Outlet of Chosen Brand
3. Exclusive market places
4. Online Purchase
5. Any other (pls specify)

6. Which of the following problems you encountered (or you fear to encounter)
related to your purchase of a Laptop?

Problems Choice (please tick whichever

is applicable)
1. Concerns related to genuinity of product
2. Concerns related to overcharging by vendor
3. Concerns related to After Sales Service and warranty
4. Purchase being time consuming
5. Dealer’s Lack of Knowledge
6. Fears related to Software and compatibility

48
7. Any other (pls specify)

7. Which of the following problems you frequently encounter with your current
Laptop (or you fear to encounter post purchase)

Problems Choice (please tick whichever

is applicable)
1. Regular Virus Attacks
2. Frequent system crash
3. Slow in terms of processing speed
4. Difficulty of use
5. Poor aesthetics
6. Any other (pls specify)

8. Please indicate your usage pattern by giving ranks to the following regular tasks
that you carry out on your Laptop (please indicate the usage on a scale of 100 so
that the sum of all is 100)

Common Tasks Ranks

1. Applications like Word, Excel etc.
2. Internet Browsing
3. DVD, Music playback
4. Digital photos
5. Digital movies
6. Any Other (Please specify)

49
 9. How much time (in hrs.) do you spend or intend to spend on your Laptop in a
week?

Time (in hrs) Choice

1. Less than 10
2. 10 – 20
3. 20 - 30
4. 30 – 40
5. 40 and above

10. Please rank the various parameters in an order that would make a better buying
experience for you. (Rank them in order of priority, 1- highest priority)

Parameters of Better Buying Experience Rank

1. Proximity of the outlet
2. Technically Strong Dealer
3. Best prices even at the cost of some inconvenience
4. Proper Demonstration of product
5. Overall feel of the retail outlet in terms of friendliness,
premium ness
6. Any Other (Please specify)

11. Do you want to shift on PC? If yes than specify reasons………….

……………………………………………………………………………………………………
……………………………………………………………………………………………………
……………………………………………………………………………………………………
……………………………………………………………………………………………………
………………..

50
Profile of Respondent

Name of respondent ________________________________

Age ______________
Place of residence ________________________________
Contact No ______________
Educational Qualification ________________________________
Current occupation ________________________________

51