IPASJ International Journal of Management (IIJM)

Web Site: http://www.ipasj.org/IIJM/IIJM.htm

A Publisher for Research Motivation ........ Email:editoriijm@ipasj.org
Volume 6, Issue 9, September 2018 ISSN 2321-645X

A study on Customer Perception towards Brand Nokia

Aparna Harikrishna1, Arvind Sharma1, Dr. Varsha Agarwal2

1
Student, Center for Management Studies, Jain University
2
Assiatant Professor, Center for Management Studies, Jain University

Abstract
Mobile phone has become a basic necessity of day-to-day life, due to rapid changes in technology. Mobile phone companies are
competing on various attributes like quality, price, features, service and operating system. Hence, customer perception of these
attributes is very important for the success of mobile phone companies. But, customers’ perception towards product can change
due to mergers and acquisition. The main objective of this study is to understand the customers’ perception towards product
attributes of Nokia mobiles, before and after acquisition by Microsoft. Data was collected using survey method through a
structured questionnaire. Questionnaire consisted of background questions as well as target questions. 61 respondents between
the age group of 20 to 50 years were taken for study, using convenience sampling. 5 point Likert’s scale was used for
measuring opinions of respondents. Statistic tools like frequencies, cross-tabulation, descriptive Statistics and t-test were used
for analysing the data, with the help of SPSS software. The major finding of this study is that customers’ perception towards
product attributes of Nokia mobiles has been improved after acquisition of Nokia by Microsoft. This helped Nokia to regain its
superiority in the mobile phone market. It was also found that quality is the most important factor considered by customers,
while purchasing a mobile.

Introduction
The mobile phone industry is one of the fastest growing industries in the world. The first major renovation occurred in
2002 with accumulation of the first colour screen and then multimedia mobile phone was introduced during 2004-2006.
Finally the birth of smart phone started in 2007 by Nokia. Advances in information and communication technologies
are constantly changing the way people use and experience technology. As technologies mature and product features
become more similar, consumers are often unable or unwilling to differentiate between brands on rational attributes
alone. Due to fast changes in technology and design, there is short life span for mobile phones.

Customer perceptions are dynamic. With the developing relationship between customer and company, his/her
perceptions of the company and its products or services will change. The more experience the customer accumulates,
the more his perceptions will shift from fact-based judgments to a more general meaning the whole relationship gains
for him.

Customers’ needs and preferences often change with circumstances too. When mergers and acquisitions happen,
customers’ perception of the product attributes may change, though there may not be a real change in the product
attributes. Customer perception can change due to several reasons, one being change in ownership of the company (of
the brand). It can happen during acquisition of a company by another company. This study considered the recent
acquisition of Nokia by Microsoft Corporation, to know the effect of acquisition process on customer perception
towards Nokia mobile phones.

Review Of Literature
(Mishra & pradhan, 2011) The exploration goal is the study endeavored to investigate the model legitimacy of Jennifer
Aaker‟s Brand Personality Scale in the Indian connection utilizing the brand Nokia. The results demonstrated that
individuals incline toward typical properties over utilitarian properties. Likewise it was discovered that 32 things turned
out to be applicable in India for the item "Nokia".
(Microsoft's Nokia Acquisition and Its Impacts on Smart Handheld Devices, 2013) On September 2013, Microsoft
reported that it would buy Nokia's cell telephone business for Us$ 7.2 billion. The key discoveries are that Microsoft
will promptly pick up capacities in cellular telephone fittings plan and assembling, and WCDMA (Wideband Code

Volume 6, Issue 9, September 2018 Page 1

 IPASJ International Journal of Management (IIJM)
Web Site: http://www.ipasj.org/IIJM/IIJM.htm
A Publisher for Research Motivation ........ Email:editoriijm@ipasj.org
Volume 6, Issue 9, September 2018 ISSN 2321-645X

Division Multiple Access) and LTE licenses, Microsoft means to expand its control over equipment, consequently
improving the level of programming and fittings after securing Nokia.
(Tellis, 2013) Nokia saw a 65% abatement in its Smartphone shipments in 2012 contrasted with 2010. When Nokia's
versatile business began a soak decay with the take-offs of Apple Aapl+1.16%'s iPhone and Google's Android, Nokia
raced to Microsoft for spread, receiving Microsoft's Windows Mobile stage while Microsoft put resources into Nokia
Windows Mobile did not take off, notwithstanding Nokia's grip, and Nokia's piece of the overall industry declined from
a crest of 41% to its present level of 3% in spite of Microsoft backing.
As per (David W. Cearley, 2013), the writers abridge that the arrangement upgrades Microsoft's cellular telephone
system. The creators likewise recommends that Nokia will bring Microsoft items, abilities and channels to reinforce the
Windows Phone biological system, additionally Nokia's position in low-end gimmick telephones and developing
markets could likewise upgrade Microsoft's brand position.

As per (Gothard, 2013) Microsoft's late procurement of Nokia's cell phone division is possibly uplifting news for
Microsoft as the Nokia brand - regardless of the fact that Microsoft doesn't have any acquaintance with it - could arrive
to offer some timely help.

(Reed, 2013), in his article states how Nokia could recover Microsoft from its cell phone failures. He says that Nokia
has something profitable that Microsoft doesn't: An understanding of how to plan and business sector cell phones that
buyers need. The huge inquiry, obviously, is whether Microsoft will take advantage of this experience or in the event
that it will totally remake Nokia from the beginning in it picture. In the event that the organization takes the more
extended view and lets Nokia do what it specializes in, then again, the creator thinks there's no reason the merger can't
succeed and help Microsoft pick up discriminating energy in the worldwide handset market.

(Reily, 2013) says that Microsoft will now confront "a huge difficulty" in choosing which brand will lead its
incorporated portable equipment and programming push going ahead: Windows Phone, the relative newcomer, or
Nokia, which has been assembling telephones for quite a long time. One of the greatest issues with Microsoft is
mindfulness of its portable products. There requirements to be an acceptable and characterized message to bring issues
to light Windows Phone as an option to Apple and Samsung. Individuals purchase a Nokia telephone as they are
watchful with their cash and need to purchase a tough gadget.

As per (Shauvik Ghosh, 2013), Securing to work in India, where Nokia is much bigger than Microsoft, may be intense
in light of the fact that In a developing business, there is high robbery, making Microsoft a little organization
contrasted with Nokia's gadgets units that are much greater. The pride of the individuals gets influenced when a more
modest organization assumes control over a bigger one.

(Rehak, renesse, & weidinger, september 2013) As part of the agreement, ownership of Nokia’s patent portfolio would
remain with Nokia Solutions and Networks (NSN), although Microsoft would acquire a 10-year license and have the
right to extend the agreement in perpetuity. However, Microsoft acquire Nokia’s two most-successful device brands –
Asha and Lumia, which accounted for 4.3 million and 7.4 million unit shipments, respectively, in the second quarter of
2013.
(Muhammad Rizwan, 2014)This study examines major influences on customer loyalty in a research framework where
customer loyalty is the dependent variable and customer satisfaction, perceived price, service quality and trust are all
independent variables. The research also tests the hypothesis that there exists a moderating relationship between service
quality and customer satisfaction. Customer satisfaction is a strong variable effecting customer loyalty and trust
positively.

Research Objectives:
The objectives of this research paper is to study the perception of product attributes of Nokia mobiles before and after
the acquisition by Microsoft, to study the influence of demographics on mobile brand preference and to find out the
influence of various product attributes on the performance of mobile phone market.

Research Methodology:
There are three main aspects that we aim to look at which serve as the hypothesis. There is significant difference in
consumer perception towards product attributes before and after the acquisition. There is significant influence of

Volume 6, Issue 9, September 2018 Page 2

 IPASJ International Journal of Management (IIJM)
Web Site: http://www.ipasj.org/IIJM/IIJM.htm
A Publisher for Research Motivation ........ Email:editoriijm@ipasj.org
Volume 6, Issue 9, September 2018 ISSN 2321-645X

demographics on mobile brand preference. There is significant influence of various product attributes on the
performance of mobile phone market.
This study is descriptive in nature. Descriptive research provides data about the population or universe being studied.
A study will be done based on the primary data which will be collected with the help of survey. It does not answer
questions about how/when/why the characteristics occurred. Rather it addresses the "what" question (What are the
characteristics of the population or situation being studied?). The characteristics used to describe the situation or
population is usually some kind of categorical scheme also known as descriptive categories. The description is used for
frequencies, averages and other statistical calculations. Often the best approach, prior to writing descriptive research, is
to conduct a survey investigation. Qualitative research often has the aim of description and researchers may follow-up
with examinations of why the observations exist and what the implications of the findings are.
The survey shall be done by using a structured questionnaire involving Likert scale (Data Collection Method). As the
issue being researched is a relatively new one, the use of secondary data is limited to Market performance of mobile
phones after the acquisition of Nokia by Microsoft.
The total Sampling Size taken is 61 the respondents will belong to age group of 20 to 50 years and both genders (male
and female). As there are no specific studies done on this topic, the sample size is based on the studies which are
related to this area. There is no restriction on the employment status and the occupation of the sampling element. The
Sampling method used for the survey is Convenience sampling.

The Statistical Tools used are Frequencies, Cross-tabulation, Descriptive Statistics and T-test using the SPSS software.

Data Analysis and Interpretation

Mobile Phone Operating System Chart

To find out the type of operating systems used among the respondents.
Interpretation: At 46% android has the maximum share in the operating system of the respondents. Windows is in the
second place with 26% followed by IOS with 23% of the respondents. Other operating systems take the last place with
5%.

Table 1: Mobile brand table

Mobile types Frequency Percent

Apple 14 23
Nokia 17 27.9
Samsung 14 23
Other Mobiles 16 26.2
Total 61 100

To find out the type mobile brands are used among the respondents.
Interpretation: Out of the total respondents, majority of the respondents i.e. around 28 % (17) use Nokia’s brand of
phones followed closely by other minor brands like Micromax, Karbonn etc. Third comes both Samsung and I phone.

Volume 6, Issue 9, September 2018 Page 3

 IPASJ International Journal of Management (IIJM)
Web Site: http://www.ipasj.org/IIJM/IIJM.htm
A Publisher for Research Motivation ........ Email:editoriijm@ipasj.org
Volume 6, Issue 9, September 2018 ISSN 2321-645X

Table 2: Cross tabulating Gender and Mobile Brand

Apple Nokia Samsung Other mobiles Total

Male 8 13 9 9 39
Female 6 4 5 7 22
Total 14 17 14 16 61

Interpretation: Using cross tabulation, out of the 39 male respondents, 33% (13) were using Nokia as their brand of
phones followed by Samsung and Others (Micromax, Karbonn). At the last comes the brand of Apple. Out of the total
female respondents of 22, 7 used other brands of phones (Micromax, Karbonn) followed by Apple, Samsung and Nokia
at 6, 5, 4 respectively.
Table 3: Cross tabulating Age and Operating System
Android IOS Windows Others
<20 6 4 1 0 11
21 to 30 15 7 14 2 38
31 to 40 5 3 1 0 9
41 to 50 2 0 0 1 3
28 14 16 3 61

Interpretation: Using cross tabulation, out of the total 61 respondents, majority (62%) were in the age group of 21-30
years followed by the age group of less than 20 (18%) and then by 31-40 years and lastly 41-50 years.
Among the age group of 21-30 years, 39% use android, 36% use Windows followed by IOS. For the age group of <20,
54% use Android, 36% use IOS followed by Windows and none for others. For the age group of 31-40, out of total 9
respondents, 5 uses Android, 3 use IOS and 1 use Windows. For the age group of 41-50, out of the total 3 respondents,
2 uses Android and rest are others.

Table 4: Descriptive Statistics

parameters N Mean Std. Deviation
7a-Quality 61 4.69 1.385
7b-Price 61 4.15 1.47
7c-Service 61 4.46 1.679
7d-Features 61 4.46 1.523

7e-Operating System 61 4.26 1.57

7f-compatibility 61 4.38 1.404

Volume 6, Issue 9, September 2018 Page 4

 IPASJ International Journal of Management (IIJM)
Web Site: http://www.ipasj.org/IIJM/IIJM.htm
A Publisher for Research Motivation ........ Email:editoriijm@ipasj.org
Volume 6, Issue 9, September 2018 ISSN 2321-645X

Importance of various product attributes of NOKIA.

Interpretation: While rating Nokia on various parameters, Quality was given the highest priority followed by Service
and Features. On the next place there are features like Compatibility, Operating System and Price. So quality was given
the highest priority before acquisition of Nokia by Microsoft followed by Service and Features.

Table 5: Descriptive Statistics

Parameters N Mean Std. Deviation

8a-Quality 61 5.03 1.278
8b-Price 61 4.64 1.472
8c-Service 61 4.98 1.396
8d-features 61 5.07 1.459
8e-operating 61 4.77 1.488
8f-compatibility 61 5.2 1.447

Importance of various product attributes of Nokia after the acquisition by Microsoft.

Interpretation: After acquisition of Nokia quality was given the highest priority, so it can be inferred that quality is the
core strength of Nokia. So acquisition of nokia did not affect the qualitative aspects of the brand.

Findings And Conclusion

Quality was given the highest priority followed by Features, Service, Compatibility, Operating System, and Price while
rating the importance of various product attributes of a mobile phone. Nokia was known for its quality even before and
after the acquisition of the brand by Microsoft. Consumers perceived Nokia products are price high even before and
after the acquisition of the brand by Microsoft and that all the product attributes of Nokia mobiles have been improved
after the acquisition by Microsoft.
As the consumers perceive that all the product attributes like quality, compatibility, service, features and operating
system have been improved and price has been reduced after the acquisition, it can be said that acquisition has helped
Brand Nokia to regain its superiority in the mobile phone market.
While purchasing a mobile phone, the main aspect which a customer looks for is quality, as majority of the respondents
have voted for quality as the most important aspect they would look for in a mobile phone, so quality should be the
major factor for the manufacturers to focus for.

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 IPASJ International Journal of Management (IIJM)
Web Site: http://www.ipasj.org/IIJM/IIJM.htm
A Publisher for Research Motivation ........ Email:editoriijm@ipasj.org
Volume 6, Issue 9, September 2018 ISSN 2321-645X

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