Chapter One: Introduction

1.1Background
Mobile phone has become an indispensable part of Bangladeshi's everyday-life and we never want to leave this device at home while we head for our work. Thanks to the telecomrevolution and its relentless evolution that together have made it possible even in developing countries like Bangladesh. This is the dominant device that we now express ourselves through, get our work done and share our pains and pleasures with[1]. A mobile phone (also known as a cellular phone, cell phone and a hand phone) is a device which can make and receive telephone calls over a radio link whilst moving around a wide geographic area[2]. It does so by connecting to a cellular network provided by a mobile network operator. The calls are to and from the public telephone network which includes other mobiles and fixed-line phones across the world. By contrast, a cordless telephone is used only within the short range of a single, private base station. In addition to telephony, modern mobile phones also support a wide variety of other services such as text messaging, MMS, email, Internet access, short-range wireless communications (infrared, Bluetooth), business applications, gaming and photography. Mobile phones that offer these and more general computing capabilities are referred to as Smartphone. Bangladesh has a big market for mobile handset industry. The population of Bangladesh is 142,319,000 [3] and the total number of active mobile phone subscribers are 82,442,000 [4], i.e. 57.93% of total population use mobile phone. There are many mobile handset brands in Bangladesh e.g. Nokia, Samsung, Sony Ericsson, Motorola, LG, BenQ Siemens, Alcatel, Panasonic etc and consumers choose their preferred brand from this pool. Research suggests that customers go through a five-stage decision-making process in any purchase [5]. This model (Fig 1.1) is important for anyone making marketing decisions. It forces the marketer to consider the whole buying process rather than just the purchase decision. The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers often skip or reverse some of the stages. The buying process starts with need recognition. At this stage, the buyer recognizes a problem or need or responds to a marketing stimulus. An aroused customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If not, then the process of information search begins.

Fig 1.1: Five-Stage Model of consumer decision-making process

Total Set
Nokia Samsung Sony Ericsson Motorola LG BenQ Siemens Alcatel Panasonic . .

Awareness Set
Nokia Samsung Sony Ericsson Motorola LG BenQ Siemens Panasonic

Consideration Set
Nokia Samsung Sony Ericsson Motorola BenQ Siemens

Choice Set
Nokia Samsung Sony Ericsson Motorola

Decision

Fig 1.2: Successive sets (of mobile phones) involved in Consumer Decision Making Through gathering information, the consumer learns about competing brands and their features[6]. The first box in Figure 1.2 shows the total set of brands available to the consumer. The individual consumer will come to know only a subset of these brands (awareness set). Some brands will meet initial buying criteria (consideration set). As the consumer gathers more information, only a few will remain as strong contenders (choice set). The consumer makes a final choice from this set. Figure 1.2 makes it clear that a company must strategize to get its brand into the prospect's awareness set, consideration set, and choice set.

1.2Objective
The objective of this study is to evaluate the consumer attitude formation towards particular mobile phone brand using the Fishbeins Expectancy-Value model.

Chapter Two: Methodology

2.1 Fishbeins Expectancy-Value Model
This study is based on Fishbeins Expectancy-Value Theory. Expectancy-value theory was originally created in order to explain and predict individual's attitudes toward objects and actions. This theory has proved useful in the explanation of social behaviors, achievement motivation, and work motivation[7]. According to the theory, a persons attitude toward any object is a function of his beliefs about the object and the implicit evaluative responses associated with those beliefs[8]. The central equation of the theory can be expressed as follows:

Where Ao = the attitude toward some object O, bi = the belief i about O, i.e., the subjective probability that O is related to attribute i, ei = the evaluation of attribute i, and n = the number of beliefs

2.2 Sample & Procedure

We have selected four mobile phone brands (e.g. Nokia, Samsung, Motorola and Sony Ericsson) and considered six attributes (e.g. Brand value/ Quality, Price, Model/Style, Multimedia options & Memory Capacity, Camera & Video Recorder and Web Browser) of each brand for our study. We have considered the value of belief strength of all the attributes in a constant sum scale of one (1.00), which was set by group discussion. For collecting data on consumer evaluation of each brands attribute, a survey was conducted. The study involves 30 respondents filling a questionnaire incorporating 24 questions as shown in the Appendix A. From these data, necessary calculations were done following the Fishbians theory.

Chapter Three: Result & Discussion

3.1 Result
Belief strength (bi) of all the attributes were considered in a constant sum scale of one (1.00) and distributed among the six attributes in the following way (Table 3.1). Table 3.1: Belief Strength (bi) of the Attributes Attribute Brand value/ Quality Price Model/Style Multimedia Options and Memory Capacity Camera and Video Recorder Web Browser Belief Strength (bi) 0.30 0.20 0.15 0.20 0.10 0.05

1. 2. 3. 4. 5. 6.

Consumers evaluations (ei) on attributes of each brand were collected by questionnaires and the average value (Table 3.2) for each attribute was considered for the calculation of attitude towards the brand. Table 3.2: Consumers evaluation (ei) on attributes (Average value) Mobile Handset Brand Attribute Model / Multimedia Style options & Memory Capacity 3.88 4.12 3.71 3.59 3.71 3.76 3.12 3.06

Brand value / Quality 4.71 4.06 3.88 2.94

Price

Camera & Video Recorder 3.76 3.76 3.94 3.06

Web Browser

Nokia Samsung Sony Ericsson Motorola

3.76 4.18 3.71 3.71

4.47 3.35 3.47 3.12

Note: Each attribute is rated from 1 to 5; where 5 represent very good and 1 represent very bad. For price, 5 represent lowest price because consumers prefer a low price to a high price.

Calculation: Here we are using Fishbeins equation (2.1) for calculating attitude towards the mobile phone brand:

Attitude towards Nokia Phone,

=4.17

Attitude towards Samsung Phone,

=3.87

Attitude towards Sony Ericsson Phone,

=3.77

Attitude towards Motorola Phone,

=3.18

3.2 Discussion
The study is showing examine of consumer attitude towards the mobile handset and it has conducted some important constructs on consumer attitude towards some attributes of each attribute. The result of the above study shows that NOKIA is the best brand in mobile handset industry. As the data shows that the respondent held attitude to MOTOROLLA below par rating in almost every attributes. Rests of the brands are rated well ahead of MOTOROLLA. The result shows that this brand is reasonable in price; its lowest rating is its brand value. This may have been because the consumers in Bangladesh found no reliability over the service from its company stuff. However, this finding shows that the market of mobile handset is so compettive in Bangladesh.

3.2.1 Limitation
Result of this study substantially contributes to theoretical and managerial understanding of consumer attitudes towards mobile handset. There are some limitations in this study and thus future research should continue about this study. The limitations of this study are1. The survey for this analysis is held only a few students which do not show the accurate attitude of consumer, even of all students of Bangladesh. 2. Here we consider only six (6) attributes of mobile; adding more attribute we could get different result. 3. Most important limitation is most of student rated their attitude toward a mobile set who has not yet use this set.

Chapter Four: Conclusion

Despite some limitation mobile handset vendor could consider this analysis as an informative document about their target group if it is student. Mobile handset vendors should make sure that their future strategies are not made simply on the basis of cost optimization or speed to market. While this logic might appear to make compelling sense in the short-term, experience suggests that this logic can result in a firm outsourcing those elements of value-added in which most of the industrys profits will be made in the future and to retain activities in which it is difficult to maintain long-term advantages versus competitors. Value chain design should be recognized as a strategic activity that will determine the fate of a mobile device manufacturer, and of future profits and power distribution in the industry. Systems integration capabilities will become increasingly important, and phone manufacturers will also need to look to those complementary assets which will help them to win in a world in which product differentiation built upon functionality will become difficult. In particular, mobile handset manufacturers should act quickly to build those complementary assets brand equity, manufacturing efficiency, supply chain efficiency, service and other dimensions of value which will provide points for future competitive advantage. All brands should maintain their brand quality and also offer some incentive to survive in competitive market.

Chapter Five: References

1. Moon, R.M., S. Fahmi, and S. Mortuza. Mobile telecom industry in Bangladesh. 2010 [cited 2011 December 3]; Available from: http://www.weeklyblitz.net/988/mobile-telecom-industry-in-bangladesh. Wikipedia. Mobile phone. 2011 [cited 2011 December 3]; Available from: http://en.wikipedia.org/wiki/Mobile_phone. Bangladesh Bureau of Statistics, Population & Housing Census: Preliminary Results. 2011: Statistics Division, Ministry of Planning, Government of the Peoples Republic of Bangladesh. BTRC. Mobile Phone Subscribers in Bangladesh. [cited 2011 December 3 ]; Available from: http://www.btrc.gov.bd/newsandevents/mobile_phone_subscribers/mobile_phone_sub scribers_october_2011.php. tutor2u. Buyer behaviour - The decision-making process [cited 2011 December 3]; Available from: http://tutor2u.net/business/marketing/buying_decision_process.asp. Kotler, P. and K.L. Keller, Marketing Management. 12 ed. 2006, New Jersey: Pearson Prentice Hall. University of Twente. Expectancy Value Model. 2010 [cited 2011 December 3]; Available from: http://www.utwente.nl/cw/theorieenoverzicht/Theory%20clusters/Interpersonal%20C ommunication%20and%20Relations/Expectancy_Value_Theory.doc/. Fishbein, M. and I. Ajzen, Belief, Attitude, Intention, and Behavior: An Introduction to Theory and Research. 1975, Reading, MA: Addison-Wesley.

2. 3.

4.

5. 6. 7.

8.

Appendix A

Consumer Survey Questionnaire

This questionnaire is prepared for collecting data, on consumers value assignment to each attribute of a particular mobile handset brand, for calculating the attitude formation towards particular brand. This project is assigned for the partial fulfillment of Marketing Management course. Instruction: Please give your ratings*, for all the given attributes of four Mobile Phone brands, by circling ONLY ONE number for each attribute. Name of Respondent:. Address:
*Rating Scale Very Good 5 Somewhat Good 4 Neither Good nor Bad 3 Somewhat Bad 2 Very Bad 1

A. Questions for Nokia Mobile Phone

Very Good

Somewhat Good

1. 2. 3. 4.

5. 6.

How you will rate the Brand value/ Quality of Nokia Mobile Phone? How you will rate the Price of Nokia Mobile Phone? How you will rate the Model/Style of Nokia Mobile Phone? How you will rate the Multimedia Options and Memory Capacity of Nokia Mobile Phone How you will rate the Camera and Video Recorder of Nokia Mobile Phone How you will rate the Web Browser of Nokia Mobile Phone Mobile Very Good 5 5 5 5

5 5 5 5

4 4 4 4

Neither Good Nor Bad 3 3 3 3

Somewhat Bad

Very Bad

2 2 2 2

1 1 1 1

5 5

4 4

3 3

2 2

1 1

B. Questions for Samsung Phone 7.

Somewhat Good 4 4 4 4

How you will rate the Brand value/ Quality of Samsung Mobile Phone? 8. How you will rate the Price of Samsung Mobile Phone? 9. How you will rate the Model/Style of Samsung Mobile Phone? 10. How you will rate the Multimedia Options and Memory Capacity of Samsung Mobile Phone 11. How you will rate the Camera and Video Recorder of Samsung Mobile Phone 12. How you will rate the Web Browser of Samsung Mobile Phone

Neither Good Nor Bad 3 3 3 3

Somewhat Bad 2 2 2 2

Very Bad 1 1 1 1

C. Questions for Sony Ericsson Mobile Phone

Very Good

Somewhat Good

13. How you will rate the Brand value/ Quality of Sony Ericsson Mobile Phone? 14. How you will rate the Price of Sony Ericsson Mobile Phone? 15. How you will rate the Model/Style of Sony Ericsson Mobile Phone? 16. How you will rate the Multimedia Options and Memory Capacity of Sony Ericsson Mobile Phone 17. How you will rate the Camera and Video Recorder of Sony Ericsson Mobile Phone 18. How you will rate the Web Browser of Sony Ericsson Mobile Phone

Neither Good Nor Bad 3

Somewhat Bad

Very Bad

5 5 5

4 4 4

3 3 3

2 2 2

1 1 1

D. Questions for Motorola Mobile Phone

Very Good

Somewhat Good

19. How you will rate the Brand value/ Quality of Motorola Mobile Phone? 20. How you will rate the Price of Motorola Mobile Phone? 21. How you will rate the Model/Style of Motorola Mobile Phone? 22. How you will rate the Multimedia Options and Memory Capacity of Motorola Mobile Phone 23. How you will rate the Camera and Video Recorder of Motorola Mobile Phone 24. How you will rate the Web Browser of Motorola Mobile Phone

5 5 5 5

4 4 4 4

Neither Good Nor Bad 3 3 3 3

Somewhat Bad

Very Bad

2 2 2 2

1 1 1 1

10