1

A PROJECT REPORT

ON

A STUDY ON CONSUMER BUYING BEHAVIOR TOWARDS SMARTPHONE

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

TO

2014-2015

Submitted To: Submitted By:

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CERTIFICATE

TO WHOM SO EVER IT MAY CONCERN

We do hereby declare that the report titled “Consumer buying behaviour Towards Smartphone”

has been prepared and submitted by Mr. , in partial fulfillment of the requirements of

Bachelor of Business Administration (BBA) from our institute during the period 2015-2016,

under the guidance of Mr. , Assistant Professor, Department of Management,

Invertis University, Bareilly.

We take the responsibility regarding the authenticity of the information in this report. The report

will be kept confidential and will not be submitted to any other organization.

HOD-BBA

Invertis University

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GUIDE’S CERTIFICATE

This is to certify that Mr. , currently undergoing Bachelor of Business

Administration (BBA) from Invertis University, Bareilly, has completed and submitted the

project on “Consumer buying behaviour Towards Smartphone” under my guidance.

I wish him a bright future and every success in life.

Assistant Professor

Department of Management

Invertis University

Bareilly.

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ACKNOWLEDGEMENT

Doing such project report is an arduous task in itself. It was fortunate enough to get support from

a large number of persons whom I shall always remain grateful. I would like to express my deep

gratitude to all those who, directly or indirectly made this project report possible.

First of all I would like to thank my parents for encouraging me throughout my life, whatever the

circumstances were, their blessing were always with me.

I would like to express my gratitude to Mrs. (HOD BBA, Invertis University, Bareilly)

who gave me an opportunity to get the a live exposure to banking industry.

I would like to express my sincere thanks to my project guide Mr. (Assistant

Professor, Department Of Management, Invertis University, Bareilly) who devoted his precious

time from his busy schedule to guide and help me at all times. It is under his valuable guidance,

constant interest and encouragement that I have been able to complete this project.

I would appreciate all the respondents who took out their valuable time to give their views and

fill the questionnaire. Lastly, I take this opportunity to thank my friends who chipped-in with

some valuable suggestions for the betterment of this project.

Rajnish Ranjan

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TABLE OF CONTENT

S.No.` CONTENT PAGE No.

1 INTRODUCTION

2 HISTROY

3 RESERCH METHODOLOGY

DATA SORCES

RESERCH APPROACH

DATA COMPLETION AND ANALYSIS

SCOPE

4 OBJECTIVE OF THE STUDY

5 DATA INTERPRETATION AND ANALYSIS

6 CONCLUSION

7 LIMITATION OF RESERCH STUDY

8 BIBLIOGRAPHY

9 QUESTIONNAIRE

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6

11

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INTRODUCTION

A smartphone or smart phone is a mobile phone with an advanced mobile operating

system which combines features of a personal computer operating system with other features

useful for mobile or handheld use. They typically combine the features of a cell phone with those

of other popular mobile devices, such as personal digital assistant (PDA), media player

mind GPS navigation unit. Smartphones are used to make phone calls and send text messages but

they can also be used for accessing the internet and check your emails, search the internet and

much more.

A smartphone can:

Make voice calls (of course!)

Make video calls

Access the internet and browse the web

Take photos, and upload them to the web

Navigate with GPS if the phone has GPS built-in

Play back music and video stored on the phone (and connect to a PC to copy media to it)

Manage your contacts and appointments

Send emails

Play in-built games

Run new applications and games downloaded for the internet.

There are many different brands of smartphones

e.g.   iPhones – made by Apple  

Android Phones made by Samsung, HTC, etc.   

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Windows Phones made by Nokia

The difference between each phone is that they have a different operating system developed by

the different manufacturers

Most Smartphones produced from 2012 onwards also have high-speed mobile broadband 4G

LTE internet, motion sensors, and mobile payment mechanisms.

In 2014, sales of smartphones worldwide topped 1.2 billion, which was up 28% from 2013.

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HISTORY

Early years

The first caller identification receiver (1971)

Devices that combined telephony and computing were first conceptualized by Tesla 1909 and Theodore Paraskevakos in 1971 and patented in 1974, and were offered for sale beginning in 1993. Paraskevakos was the first to introduce the concepts of intelligence, data processing and visual display screens into telephones. In 1971, while he was 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, Alabama and were demonstrated to several telephone companies.

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The original and historic working models are still in the possession of Paraskevakos.

Forerunner

The first mobile phone to incorporate PDA features was an IBM prototype developed in 1992 and demonstrated that year at the COMDEX computer industry trade show.

The prototype demonstrated PDA features as well as other visionary apps like maps, stocks and news incorporated with a cellular phone.

A refined version of the product was marketed to consumers in 1994 by BellSouth under the name Simon Personal Communicator.

The Simon was the first cellular device that can be properly referred to as a "smartphone", although it was not called that in 1994.

The term "smart phone" first appeared in print in 1995, for describing AT&T's "PhoneWriter Communicator" as a "smart phone".

PDAs

 Personal digital assistant

In the late 1990s, many mobile phone users carried a separate

dedicated PDA device, running early versions of operating systems such as Palm OS,

BlackBerry OS or Windows CE/Pocket PC. These operating systems would later evolve

into mobile operating systems.

In March 1996, Hewlett-Packard released the OmniGo 700LX, which was a modified 200LX PDA that supported a Nokia 2110-compatible phone and had integrated software built in ROM to support it.

In August 1996, Nokia released the Nokia 9000 Communicator which combined a PDA based on the GEOS V3.0 operating system from Gasworks with a digital cellular phone based on the Nokia 2110. The two devices were fixed together via a hinge in what became known as a clamshell design.

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In June 1999, QUALCOMM released a "CDMA Digital PCS Smartphone" with integrated Palm PDA and Internet connectivity, known as the "pdQ Smartphone".

In early 2000, the Ericsson R380  was released by Ericsson Mobile Communications, and was the first device marketed as a "smartphone".  It combined the functions of a mobile phone and a PDA, supported limited web browsing with a resistive touchscreen  utilizing a stylus.

In early 2001, Palm, Inc. introduced the Kyocera 6035, which combined a PDA with a mobile

phone and operated on Verizon. It also supported limited web browsing.

Smartphones before Android, iOS and BlackBerry, typically ran on Symbian, which was

originally developed by Psion. It was the world's most widely used smartphone operating system

until the last quarter of 2010.

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.

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

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iOS and 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 .

In2008 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. 

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BlackBerry Limited, formerly known as Research In Motion, also made a new platform based

on QNX, BlackBerry 10.

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.

Recent technological developments

In 2013, the Fair phone company launched its first "socially ethical" smartphone at

the London Design Festival to address concerns regarding the sourcing of materials in the

manufacturing.

In late 2013, os commenced production of a smartphone designed entirely around

security, encryption and identity protection.

In December 2013, the world's first curved OLED technology smartphones were

introduced to the retail market with the sale of the Samsung Galaxy Round and LG G Flex

models.[30] Samsung phones with more bends and folds in the screens were expected in 2014.

[31]

In early 2014, smartphones were beginning to use Quad HD (2K) 2560x1440 on 5.5"

screens with up to 534 PPI on devices such as the LG G3 which is a significant improvement

over Apple's Retina Display.

Quad HD is used in advanced televisions and computer monitors, but with 110 ppi or less on

such larger displays.

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As of 2014, Wi-Fi networks were much used for smartphones. As Wi-Fi becomes more

prevalent and easier to connect to, Wi-Fi phone services will start to take off.

Smartphones are increasingly integrated with everyday uses. For instance, credit cards

and mobile payments are integrated into smartphones where users can send cash payments

through smartphone applications and SaaS platforms.

Recently, Apple Pay has picked up 34 new banks to the roster supporting their mobile

payment platform, where merchants are rapidly adopting it .

Additionally, recent technological innovations are causing keys to be fused into the

smartphones, where the smartphone act as a digital key and access badge for its users.

Since 2013, water and dustproofing have made their way into mainstream high end

smartphones instead of specialty models with the Sony Xperia Z continuing through the

Sony Xperia Z3 and with the Samsung Galaxy S5.

One problem with smartphone cameras is focusing on subject, but the LG G3 has lasers

to help focus.

Some smartphones can be categorized as high-end point-and-shoot cameras with

large sensors up to 1" with 20 megapixels and 4K video. Some can store their pictures in

proprietary raw image format, but the Android (operating system) 5.0 lollipop serves

open source RAW images.

Apple released iphone 6 September 19 2014 and September 25 (in us,uk.eg)

iphone 6s year of apple watch(phone/watch)and discountinuing 5c.

Future possible developments

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A clear thin layer of crystal glass can be added to small screens like watches and

smartphones that make them solar powered.

Smartphones could gain 15% more battery life during a typical day. The first

smartphones using this technology should arrive in 2015. This screen can also work to

receive Li-Fi signals and so can the smartphone camera. The cost of these screens per

smartphone is between $2 and $3, much cheaper than most new technology.

Near future smartphones might not have a traditional battery as their sole source of power. Instead, they may pull energy from radio, television, cellular or Wi-Fi signals.[4

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Mobile operating systems

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, LG, and Samsung)

that form the Open Handset Alliance.

 In October 2008, HTC released the HTC Dream,

the execution of native applications and third-party

apps which are available via Google Play, which

launched in October 2008 as Android Market.

Android became the best-selling smartphone platform.

ANDROID Smartphones present features

Blow Detection

Curved screen

Eyes detection

S- Pen

Hover-Over

Face detection

Gaming

Free/Instant/Messaging/Calling

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Connectivity

BEST ANDROID SMARTPHONES

Samsung Galaxy S6

LG G4

Nexus 6P

Blackberry Priv

HTC One M9

Moto X Pure Edition 2015

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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

Devices. In 2007, Apple introduced the iPhone, the

first device to use iOS and 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 as typical for smartphones at the time

Best Ios Smartphone

iPhone 6s

iPhone6

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iPhone5s

iPhone5c

iPhone5(discontinued now)

iPad 4

iPad mini

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 andGoogle accounts.

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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

Best Windows Phones

Nokia Lumia 930

Nokia Lumia 735

Nokia Lumia 1520

Microsoft Lumia 435

Microsoft Lumia 640

Microsoft Lumia 535

Microsoft Lumia 830

BlackBerry

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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. In September 2012,

RIM announced that the 200 millionth BlackBerry smartphone was shipped. As of September

2014, there are around 46 million active BlackBerry service subscribers. [55] Most recently, RIM

has undergone a platform transition, changing its name to BlackBerry and making new devices

on a new platform named "BlackBerry 10."

Best Blackberry Phones

Blackberry Z10

Blcakberry Z3

Blackberry Z30

Blackberry A10

Blackberry Passport

Blackberry Strom2 9550

Blackberry Q10

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ISSUES

Smartphones have issues besides those affecting

other mobile telephones.

Battery life

Compared to earlier non-smartphones, smartphone battery life has

generally been poor and a significant drain on customer

satisfaction.

Social

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A 2012 University of Southern California study found that unprotected adolescent sexual activity

was more common amongst owners of smartphones.

A study conducted by the Rensselaer Polytechnic Institute's (RPI) Lighting Research Center

(LRC) concluded that smartphones, or any backlit devices, can seriously affect sleep cycles.

Some persons might become psychologically attached to cellphones resulting in anxiety when

separated from the devices.

Legal

A "patent war" between Samsung and Apple started when the latter claimed that the

original Galaxy S Android phone copied the interface—and possibly the hardware—of Apple's

iOS for the iPhone 3GS.

Medical

With the rise in number of mobile medical apps in the market place, government regulatory

agencies raised concerns on the safety of the use of such applications. These concerns were

transformed into regulation initiatives worldwide with the aim of safeguarding users from

untrusted medical advice.

Security

Smartphone malware is easily distributed through an insecure app store. Often malware is hidden

in pirated versions of legitimate apps, which are then distributed through third-party app stores.

 Malware risk also comes from what's known as an "update attack", where a legitimate

application is later changed to include a malware component, which users then install when they

are notified that the app has been updated.

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One out of three robberies in 2012 in the United States involved the theft of a mobile phone. An

online petition has urged smartphone makers to install kill switches in their devices.

 In 2014, Apple's "Find my iPhone" and Google's "Android Device Manager" can disable phones

that have been lost/stolen. With BlackBerry Protect in OS version 10.3.2, devices can be

rendered unrecoverable to even BlackBerry's own Operating System recovery tools if incorrectly

authenticated or dissociated from their account.

Sleep

Using smartphones late at night can disturb sleep, due to the brightly lit screen

affecting melatonin levels and sleep cycles.

RESEARCH METHODOLOGY

It well Know fact that the most important step in marketing research process is to define the problem. Choose for investigation because a problem well define is a half solved. That was the reason that at most care was taken while defining various parameters of the problem. After giving through brain storming session, objective were selected and set on the base of this objective. A questionnaire was design major emphasis of which was gathering new ideas as to determine and find out the problem.

DATA SOURCE

Research includes gathering both primary and secondary data. Primary data is the first hand data which are selected a fresh and thus happen to be original in the character. Primary data was crucial to know various customer and past customer view about the smartphone and calculate the market share of this brand.

RESEARCH APROACH

The research approach was used survey method which is a widely used method for data collection and best suited for which descriptive type of research survey include research

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instrument like questionnaire which is structured. Target population is well identified and various method like personal interview and are employed.

SAMPLING UNIT

It gives the target population that will be sampled. The research was carried in Invertis University Bareilly. There were 70 respondents.

DATA COMPLETION AND ANALYSIS

After the data has been collected, it was tabulated and finding of the project were presented followed by analysis and interpretation to reach certain conclusion.

OBJECTIVE OF STUDY

OBJECTIVE

 To study consumer motivation for buying a smart phone.

 To analyze the consumer preference for brands of smart phone.

 To determine whether there is a significant difference between preferences for features of smart phones on the basis of gender.

 To identify the most effective medium for advertisement of smart phone

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DATA ANALYSIS AND INTERPRETATION

Q1. Do you own a Smartphone?

YES 62

NO 8

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YES89%

NO11%

SMARTPHONE

INTERPREATION:

It is clearly seen most people have smartphone .

Q2. If yes which brand of Smartphone you are currently using?

SONY 8

SAMSUNG 23

MICROSOFT 5

APPLE 3

MICROMAX 7

OTHER 16

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INTERPREATION:

It is clearly seen that most people currently using Samsung and other brand smartphone.

Q3. Based on your own experience, how you would rate your satisfaction with the brand of Smartphone.

Satisfied 38

Dissatisfied 4

Very satisfied 15

Fair 5

SONY13%

SAMSUNG37%

MICROSOFT8%

APPLE5%

MICROMAX11%

OTHER26%

CURRENTLY USING

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Satisfied61%

Dissatisfied7%

Very satisfied24%

Fair8%

SATISFIED

INTERPREATION:

It is clearly seen that most people satisfied brand smartphone.

Q4. Would you buy the same brand when buying a new phone in the future?

YES 17

NO 23

MAY BE 22

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YES27%

NO37%

MAY BE36%

BUYING NEW PHONE IN FUTURE

INTERPREATION:

It is clearly seen that most of 27% people buying new phone in future same brand and 36% people may be 37% people no buying new phone in future same brand.

If No, Which brand would you prefer

SONY 6

SAMSUNG 3

MICROSOFT 4

APPLE 6

MICROMAX 0

OTHER 4

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SONY26%

SAMSUNG13%

MICROSOFT18%

APPLE26%

MICROMAX0%

OTHER17%

SMARTPHONE PREFER

INTREPRETATION:

It is clearly seen that most of people prefer apple, Sony.

Q5.In the following question select the degree of influence of the following factors on your Purchase of Smartphone.

5.

    Strongly non-influential

Non –influential

Natural influential

Influential Strong influential

1 Family and 11 9 20 11 19

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friends suggestion

2 Financing /price 5 20 12 16 17

3 The well known brands name of the products

4 6 12 22 25

4 The quality of the products

4 2 7 22 34

5 Your satisfaction for a previous product brands

8 10 9 21 23

6 Technical aspect of the product

1 5 13 24 27

7 Festival season/promotion

9 12 10 18 22

8 Advertisement 8 20 16 9 17

9 After sales services

4 12 16 18 20

10 Features. 1 3 8 15 44

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0

5

10

15

20

25

30

35

40

45

50

Family and friends suggestion

Financing /price The well known brands name of the

products

The quality of the products

Your satisfaction for a previous product

brands

Technical aspect of the product

Festival season/promotion

Advertisement After sales services Features.

1 2 3 4 5 6 7 8 9 10

Chart Title

Strongly non-influential Non –influential Natural influential Influential Strong influential

INTERPREATION:

Q6. How much are you willing to pay for a Smartphone of your

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choice?

Below 5,000 0

5,000-10,000 16

10,000-15,000 24

15,000-25,000 18

25,000 and above 11

Below 5,0000%

5,000-10,00023%

10,000-15,00035%

15,000-25,00026%

25,000 and above16%

PAY FOR SMARTPHONE

INTREPREATION:

It is clearly seen that most of people pay for smartphone Rs.10,000-15,000

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Q7. You prefer a Smartphone manufactured by:-

Multinational companies 36

Indian companies 18

not a factor 14

Multinational companies

53%Indian companies

26%

not a factor21%

SMARTPHONE MANUFACTURED

INTREPREATION:

It is clearly seen that most of people prefer smartphone manufactured multinational companies.

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Q8. Further, where do you like to purchase Smartphone?

Authorized retail 31

Multiband showroom 17

Online/E-commerce 17

Other 4

Authorized retail45%

Multibrand showroom

24%

Online/E-commerce

25%

Other6%

PURCHASE SMARTPHONE

INTREPREATION:

It is clearly seen that most of people purchase smartphone on authorized retail.

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CONCLUSION

Most preferred brand in smart phone market is Apple followed by Samsung and HTC.

 The main reason for smart phone purchase is its features.

 Internet retailers / review / technology websites is an important source of information to consumer.

 Mostly consumer wants to opt for different smart phone brands instead of looking for same brand. So consumer is not brand loyal in case of smartphone.

 The most effective medium of advertisement of smart phone is internet websites.

 There is no difference between preferences for features of smart phones on the basis of gender.

 There is no association between gender and brand loyalty for Smartphone.

LIMITATION OF RESERCH STUDY

1. The sample size which is used is not big so there is a chance that the result which is come is not reliable.

2. The respondents show there interest while they are filling a questionnaire.

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RECOMMENDATION:1. Smart phone companies should focus more on advertisements on internet websites.2. .As consumer wants more and more features so smart phone manufacturers should

increase the number of features.3. As the consumer prefers word of mouth or consulting someone tech savvy, so smart

phone brands must maintain their good will and increase service.

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BIBLIOGRAPHY

- WWW.GOOGLE.COM

- WWW.SAMSUNG.COM

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Questionnaire

Q1. Do you own a Smartphone?

YES ( ) NO ( )

Q2. If yes which brand of Smartphone you are currently using?

SONY ( ) SAMSUNG ( ) Microsoft ( ) APPLE ( ) Micromax ( ), OTHER ………….

If no, specify. ……………………………………………………………………………………………………………………………

……………………………………………………………………………………………………………………………

Q3. Based on your own experience, how you would rate your satisfaction with the brand of Smartphone.

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Satisfied ( ) Dissatisfied ( ) very satisfied ( ) Fair ( )

Q4. Would you buy the same brand when buying a new phone in the future?

Yes ( ) No ( ) May be ( )

If No, Which brand would you prefer

SONY ( ), SAMSUNG ( ), Microsoft ( ), APPLE ( ) MICROMAX ( ), OTHER ………….

Q5.In the following question select the degree of influence of the following factors on your Purchase of Smartphone.

Strongly non-influential

Non –influential

Natural influential

Influential

Strong influential

1 Family and friends suggestion 2 Financing /price3 The well known brands name of the

products 4 The quality of the products5 Your satisfaction for a previous

product brands6 Technical aspect of the product7 Festival season/promotion8 Advertisement9 After sales services10 Features.

If any other, please specify below:-

………………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………………

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Q6. How much are you willing to pay for a Smartphone of your choice?

Below 5000( ) 5000-10,000( ) 10000-15000 ( )

15000-25000( ) 25,000 and above ( )

Q7. You prefer a Smartphone manufactured by:-

Multinational companies ( ) Indian companies ( ) Not a factor ( )

Q8. Further, where do you like to purchase Smartphone?

Authorized retail ( ) Multibrand Showroom ( ) Online/E-commerce ( ) other ( )

Q9. Do you have any suggestion?

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

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48

49

50

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