Presented By

Aakash Bihani

Kavita Kumari

Shireen Sood

Sohini Bhuwalka

CONSUMER BUYING BEHAVIOUR OF YOUTH

TOWARDS MOBILE PHONE

OBJECTIVES OF THE STUDY

Primary Objective: To study the buying behavior of mobile phone users in kolkata

Secondary Objectives:

1. To know and understand the brand preferences of mobile phone users

2. To study the usage pattern of mobile phones

3. To probe the reasons or causal factors behind the purchase of mobile phones

4. To identify the mobile phone buying decision factor

INTRODUCTION Mobile phone has become an integral part of human daily and personal communication across the globe

Mobile phone was developed in 1979. In India it was introduced in 1994. But it became familiar only in the beginning of year 2000

It is a very fast point to point communication. It helps one to send and receive information anytime and anywhere

Mobile phone plays a predominant role in the modern life because mobile phones are used by people at all levels

With 3G mobile data networks quickly becoming reliable and affordable, we see a big shift in the way users consume information on their handhelds

Mobile phone is a milestone that indicates success, not only financially but also culturally in term of the integration within society

Mobile phone usages have resulted in greater electronic interactions between friends and family at the expense of face to face interaction which has dramatically reduced

Consequently, it could be proposed that mobile phones are changing individual cultural norms and values

RESEARCH METHODOLOGY

Data Type – Data collection was done through primary and secondary source

Tools For Data Collection- Questionnaires were given out

Sample unit- Students of Kolkata

Sample Size- 100 questionnaires were filled

Sampling Technique- Convenience sampling method

Data Collection Method- Data for the study was collected through primary sources and exploratory methods

Data Processing- Data was entered into MS-EXCEL sheets and analyzed graphically

Graphical Representation- Pie charts and bar diagrams are used to explain the analysis

SAMPLING

We have used convenience sampling method

The primary sample of 100 consists of students

From our sample size we came to understand that Samsung was the most widely used brand because of its features and variety of prices

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.50

10

20

30

40

50

60

Series1; 56

10

30

2 2

Reason for purchase

Analysis Understanding consumer behaviour

“consumers buy a particular handset more for its utility than for its asthetics…”

We found that about 56% expect better features out of the phone whereas phone reviews and attractive advertisements hardly play any role.

Understanding brand preference

Across the mobile handset industry in Kolkata we find that Samsung has been the most dominant player in the industry and boasts a market share of 36%.

nokia34%

sony xperia16%

samsung36%

blackberry4% Apple

6%

LG2%

Others2%

Currently used brand

Previously owned brand

42% of the students used the Nokia phone before switching to the current brand.

First phone4%

Nokia42%

Sony Xperia4%

Samsung36%

LG4%

Apple4%

Blackberry4%

Others2%

Price Range

Below 5000

Rs 5001-10000

Rs 10001-20000

Rs 20001-30000

Rs 30001 and above

0 5 10 15 20 25 30 35 40 45

10

38

40

6

6

40% of the students use phone between the price range of Rs10001-20000 whereas 6% use Rs20001

The price of the phone matters to the sample size of our research as 47% agree.

Strongly Agree Agree Neutral Disagree Strongly Disagree0

5

10

15

20

25

30

35

40

45

50

Strongly Agree; 30

Agree; 46

Neutral; 22

Price is important

Price is important

Place Of Purchase

Branded mobile retail store has the major market share of 54% when it comes to the place of purchasing a new phone and small electronic shops are the least preferred place of purchase.

Branded mobile retail

store54%

Official ex-clusive brand

outlets12%

Branded electronic re-

tail store18%

Small elec-tronic shop

2%

Online8%

Others6%

Frequency of changing phone

0-6 months 6months-1year 1-2years more than 2 years0

5

10

15

20

25

30

35

40

45

50

Reasons for changing phone

Expiration of service contract4%

Want more stylish phone16%

Want more features and services

36%

Maintenance and repair problems

44%

Brand loyalty

05

1015202530354045

Yes No Don't Know0

10

20

30

40

50

60

70

Openness to a new brand

Parameters for buying a new phone

Strongly Agree

Agree Neutral Disagree Strongly Disagree

0

5

10

15

20

25

30

35

40

45

Phone phone must be easy to use

40%

40%

14%6%

Consideration of the operating system be-fore purchase

Strongly Agree AgreeNeutral DisagreeStrongly Disagree

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

0 5 10 15 20 25 30 35 40

Phone size matters

Strongly Agree

Agree Neutral Disagree Strongly Disagree

0

10

20

30

40

50

60

Screen resolution should be high

Strongly Agree

Agree Neutral Disagree Strongly Disagree

0

10

20

30

40

50

60

Large storage space is a necessity

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

0 10 20 30 40 50 60

Shape of the phone is important

Strongly Agree Agree Neutral Disagree Strongly Disagree0

102030405060

The phone should have a touchscreen

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.50

1020304050

Influence of advertisements during purchase

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

0 10 20 30 40 50 60 70

Battery back up should be good

CHI SQUARE TESTING Chi-square is a statistical test commonly used to compare observed data with data we would expect to obtain according to a specific hypothesis

The chi-square test is always testing what scientists call the null hypothesis, which states that there is no significant difference between the expected and observed result

The formula for calculating chi-square (chi2) is:

chi2= (o-e)2/e

That is, chi-square is the sum of the squared difference between observed (o) and the expected (e) data (or the deviation, d), divided by the expected data in all possible categories.

Sample size=100 , No .of male=16 , No. of female=84Confidence level=95% , Value of Z=1.96

Hypothesis testing is based on whether the price of mobile phone is important factor for buying behavior.

Sex Price is imp. factor Price is not imp. factor Total

Male 14 2 16

Female 62 22 84

Total 76 24 100

R1XC1/total = 16X76/100=12.16 , R1XC2/total = 16X24/100=3.84

R2XC1/total= 84X76/100=63.84 , R2XC2/total=84X24/100=20.1612.16 3.84 16

63.84 20.16 84

76 24 100

O E (O-E) (O-E)² (O-E)²/E14 12.16 1.84 3.3856 0.27862 63.84 -1.84 3.3856 0.0532 3.84 -1.84 3.3856 0.88122 20.16 1.84 3.3856 0.167

∑ (O-E)²/E=1.379

(O is observed frequency , E is expected frequency)

Analysis of chi square testing

• Calculated value of (O-E)²/E=1.379

• Degree of freedom = (r-1)(c-1)=(2-1)(2-1) =1

• Tabulated value of Z= 1.96 (tabulated value > calculated value so hypothesis is accepted.)

Hence, we concluded that price is one of the important factor for buying behavior of mobile phone

RECOMMENDATIONS The survey and analysis that we have conducted has brought out certain interesting facts

and given insights into the buyer behaviour in case of mobile handsets. Using these insights

we suggest a few recommendations to the handset brands to beat the ever-winning brand

SAMSUNG.

How to be on top of the game?

Focus On Product & PriceBe a Technology Driven CompanyUtility more important…Aesthetics come second…

CONCLUSIONHandset buying is a high involvement product wherein the consumer wants to know from different sources about brands, though SAMSUNG is the first name that comes to their minds

Word of mouth plays an important role in such products and therefore it is important for the product to be of important quality

Companies should therefore concentrate more on developing the first P and make it available at reasonable and reachable prices.

So, the product itself becomes the promotion for the brand…….  

The available researches do not provide the proper information about

the behaviour of customers towards mobile phones. So this study is

aimed to know the awareness of mobile phones among people

among people. To study the psychology of the customers behind their

choice of mobiles.

SCOPE OF THE STUDY

• The study suffers from the major limitation of obsolesce of the

information

• There is a biased opinion based upon the preference of the data

provider on the basis of his/her purview

LIMITATIONS OF THE STUDY

THANK YOU!!