research on customer perception on lenovo laptops...

Submitted By:Santanu Bhukta

JAIPURIA INSTITUTE OF MANAGEMENT, NOIDA

RESEARCH ON CUSTOMER PERCEPTION ON LENOVO LAPTOPS COMPARE TO THEIR COMPETITORS

Submitted to:

Dr.Richa Misra

LENOVO

Lenovo Group Ltd. is a Chinese multinational technology company with headquarters in Beijing, China, and Morrisville, North Carolina, United States. It designs, develops, manufactures and sells personal computers, tablet computers, Smartphone’s, workstations, servers, electronic storage devices, IT management software and smart televisions. In the second quarter of 2013 Lenovo was the world's largest personal computer vendor by unit sales. It markets the ThinkPad line of notebook computers and the Think Centre line of desktops.

Lenovo has operations in more than 60 countries and sells its products in around 160 countries. Lenovo's principal facilities are in Beijing, Morrisville and Singapore, with research centers in those locations, as well as Shanghai, Shenzhen, Xiamen, and Chengdu in China, and Yamato in Kanagawa Prefecture, Japan. It operates a joint venture with EMC, Lenovo EMC, which sells network-attached storage solutions. It also has a joint venture with NEC, Lenovo NEC Holdings, which produces personal computers for the Japanese market.

Lenovo was founded in Beijing in 1984 as Legend and was incorporated in Kong in 1988. Lenovo acquired IBM's personal computer business in 2005 and agreed to acquire its Intel-based server business in 2014. Lenovo entered the Smartphone market in 2012 and as of 2014 is the largest vendor of Smartphone’s in Mainland China. In January 2014, Lenovo agreed to acquire the mobile phone handset maker Motorola Mobility from Google.

Lenovo is listed on the Hong Kong Stock Exchange and is a constituent of the Hang Seng China-Affiliated Corporations Index, often referred to as "Red Chips".

http://en.wikipedia.org/wiki/Hang_Seng_China-Affiliated_Corporations_Index

http://en.wikipedia.org/wiki/Hang_Seng_China-Affiliated_Corporations_Index

http://en.wikipedia.org/wiki/Hong_Kong_Stock_Exchange

http://en.wikipedia.org/wiki/Google

http://en.wikipedia.org/wiki/Motorola_Mobility

http://en.wikipedia.org/wiki/IBM

http://en.wikipedia.org/wiki/NEC

http://en.wikipedia.org/wiki/Network-attached_storage

http://en.wikipedia.org/wiki/EMC_Corporation

http://en.wikipedia.org/wiki/ThinkCentre

http://en.wikipedia.org/wiki/ThinkCentre

http://en.wikipedia.org/wiki/ThinkPad

http://en.wikipedia.org/wiki/Market_share_of_personal_computer_vendors

http://en.wikipedia.org/wiki/Market_share_of_personal_computer_vendors

http://en.wikipedia.org/wiki/Smart_TV

http://en.wikipedia.org/wiki/Smart_TV

http://en.wikipedia.org/wiki/Server_(computing)

http://en.wikipedia.org/wiki/Workstation

http://en.wikipedia.org/wiki/Lenovo_smartphones

http://en.wikipedia.org/wiki/Tablet_computer

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/Morrisville,_North_Carolina

http://en.wikipedia.org/wiki/China

http://en.wikipedia.org/wiki/Beijing

http://en.wikipedia.org/wiki/Multinational_corporation

Type Public

Traded as SEHK: 0992, OTC Pink:LNVGY

Industry Computer hardware

Electronics

Founded 1984 (Beijing) (as Legend)

2004 (as Lenovo)

Founder(s) Liu Chuanzhi

Headquarters Beijing, China and Morrisville, North Carolina, United States,[1]

Area served Worldwide

Key people Yang Yuanqing

(Chairman and CEO)

Products Smartphone’s, desktops, servers, notebooks, tablet

computers, netbooks,peripherals, printers,televisions, scanners, storage

devices

Website www.lenovo.com

Literature Review

Being a Chinese company clouds the way for the newly-established Lenovo's success, it created an impression of low-quality mass produced

http://en.wikipedia.org/wiki/File:Lenovo_Logo.svg

machines as well as of difficult government and state issues .These concerns however are all image-related, but they are not to be shrugged-off just like that by most consumers,Accoordings to IDC (2013).

Lenovo Overtakes HP as the Top PC Vendor While U.S. Shipments Stabilize in the Second Quarter of 2013, According to IDC (2013).

According to a May(2013) report released by IDC Lenovo ranks fourth in the global tablet market by volume.

It was in 1984 when 11 computer scientists in China founded a company that promised to bring the advantages of IT to the Chinese community. They call their company the Lenovo Group.

Now, Lenovo is an International Technology company created as the end result of the acquirement by the Lenovo Group of the IBM Personal Computing Division on May 2005. The company manufactures and develops reliable and high-quality PC products as well as provides professional services to its global consumers.

But being a Chinese company clouds the way for the newly-established Lenovo's success, it created an impression of low-quality mass produced machines as well as of difficult government and state issues (Human Resource practices difficulties are definitely worth considering). These concerns however are all image-related, but they are not to be shrugged-off just like that by most consumers.

An IT expert who has issued a damaging statement on his blog ("Since I purchased the machine, it has been hell.), has gained numerous allies and have plans of starting a "Bring Back Big Blue" campaign against Lenovo. This is to summarize the issues and the complains on his blog:

- MMI design is not Lenovo's forte, they installed (in front underside of the machine) on some of their newest models a new on/off Wireless Fidelity radio

switch which rubs with a user's leg when the machine is held on his lap; causing the wireless system to be erratic on its operation

- Unsupported backward compatibility wherein accessories that were used to be valuable to the old think pads are now worthless since it can't be used anymore with the new models.

- Delays on orders without even attempting to explain to the consumers that they are out of stock, as well as errors on deliveries attributing to a disastrous customer service.

-Incompetence of the technical staff who are supposed to shed light to consumer's confusions and technical problems, instead of clouding the situation further.

A Lenovo staff attempted to answer these issues through posting to the blog that they should be contacted so as to address the problems properly. Still, the effort was futile. So far, this research never came upon a published material from the company defending itself from these complaints. There was a consumer however who issued his statement that he never experienced such complaints, but his presence was merely ignored by the numerous complainants.

RESEARCH OBJECTIVES

1. To study and understand the buying behaviour of consumers for Lenovo laptops.

2. To find the difference between perceptions, opinion and behaviour of Lenovo and it’s competitors buyers.

3. To have an idea about parameters consumer consider while buying Lenovo laptops computers.

4. To know advantages of Lenovo over it’s competitors.

5. To determine the image of Lenovo PCs and the image of its major competitors.

RESEARCH PROBLEM

The image of Lenovo PCs over its major competitors.

HYPOTHESISES

1. The price of the laptops has significant impact on the type of laptops purchased by them.

2. There is a significant relationship between key factor and buying a laptop.

3. There is significant relationship between the value added by Lenovo laptop and buying Lenovo laptop.

4. Actors play significant role to buy a Lenovo laptop.

5. ThinkPad of Lenovo laptop is effects to buy Lenovo laptops.

6. There is significant relationship between availability of service centres and buying a laptop.

7. EMI option of Lenovo gives positive impact on image.

8. Preinstalled OS has direct impact on purchase of Laptop .

9. Gender has significant impact on satisfaction level of Lenovo laptops.

10. There is a significant relationship between add value of Lenovo and satisfaction level of Lenovo laptops.

RESEARCH METHODOLOGY

Sample size :-

n=40

Type of research :-

* Exploratory

* Qualitative

Sampling frame:-

* Noida.

INDEPENDENT VARIABLES:-

Price

Features

ThinkPad

Availability of service centers

Purpose of uses

Add value

Gender

DEPENDENT VARIABLES:-

1. Customer preference buying Lenovo laptops.

2. Customer preference buying other than Lenovo laptops.

3 Customer satisfaction of using Lenovo laptops.

DATA COLLECTION

Collection of data

Primary data: The method of collection of primary data is through structured questionnaire.

Secondary data: The secondary data was collected from newspapers, articles and internet sources.

TEST USED

Data from various locations like our institute, and family members, relatives and friends were collected.

A sample of 40 respondents was randomly selected including housewives, working women and men.

Respondents of various income groups and age groups were also considered so as to know the variations in the response.

The raw data is transferred to SPSS which will help in easily analyzing the collected data and coming to a conclusion about the buying behaviour of consumers.

The central tendency techniques like mean, median and mode were used.

The significance level has been kept at 5 percent to avoid various errors chances.

ANALYSISWhich brand do you prefer in term of buying a laptop?

Frequency Percent Valid Percent Cumulative Percent

Valid

Dell 13 32.5 32.5 32.5

Lenovo 5 12.5 12.5 45.0

Samsung 1 2.5 2.5 47.5

HP 18 45.0 45.0 92.5

Others 3 7.5 7.5 100.0

Total 40 100.0 100.0

What are your price range?

Frequency Percent Valid Percent Cumulative Percent

Valid

Rs 20000-25000 3 7.5 7.5 7.5

Rs 25001-35000 12 30.0 30.0 37.5

Rs 35001-45000 20 50.0 50.0 87.5

And above 5 12.5 12.5 100.0

Total 40 100.0 100.0

Hypothesis 1: The price of the laptops has significant impact on the type of laptops purchased by them.

Which brand do you prefer in term of buying a laptop? * What are your price range? Crosstabulation

Count

What are your price range?

Rs 20000-25000 Rs 25001-35000 Rs 35001-45000 And above

Which brand do you prefer

in term of buying a laptop?

Dell 3 4 6 0

Lenovo 0 2 2 1

Samsung 0 0 1 0

HP 0 5 9 4

Others 0 1 2 0

Total 3 12 20 5

Which brand do you prefer in term of buying a laptop? * What are your price range? Crosstabulation

Count

Total

Which brand do you prefer in term of buying a laptop?

Dell 13

Lenovo 5

Samsung 1

HP 18

Others 3

Total 40

Chi-Square Tests

Value df Asymp. Sig. (2-

sided)

Pearson Chi-Square 11.257a 12 .507

Likelihood Ratio 13.765 12 .316

Linear-by-Linear Association 4.538 1 .033

N of Valid Cases 40

a. 17 cells (85.0%) have expected count less than 5. The minimum

expected count is .08.

Hypothesis2: There is a significant relationship between key factor and buying a laptop.Which brand do you prefer in term of buying a laptop? * What is the key factor you look first while buying a laptop?

Crosstabulation

Count

What is the key factor you look first while buying a laptop?

Harddisk Display Lan Card Touch or without

touch

Which brand do you prefer in term

of buying a laptop?

Dell 13 0 0 0

Lenovo 3 1 0 0

Samsung 0 0 0 0

HP 6 6 1 1

Others 0 1 0 0

Total 22 8 1 1

Count

What is the key

factor you look first

while buying a

laptop?

Total

Sounds

Which brand do you prefer in term of buying a

laptop?

Dell 0 13

Lenovo 1 5

Samsung 1 1

HP 4 18

Others 2 3

Total 8 40

Chi-Square Tests


sided)




N of Valid Cases 40



Hypothesis3: There is significant relationship between the value added by Lenovo laptop and buying Lenovo laptop.

Which brand do you prefer in term of buying a laptop? * What value added services does Lenovo give??

Crosstabulation

Count

What value added services does Lenovo give??

Services Product options Price ranges Higher number of

service centers

Which brand do you prefer in Dell 5 3 5 0

term of buying a laptop?

Lenovo 2 0 2 1

Samsung 0 0 1 0

HP 1 3 11 3

Others 1 0 2 0

Total 9 6 21 4

Total

Which brand do you prefer in term of buying a laptop?

Dell 13

Lenovo 5

Samsung 1

HP 18

Others 3

Total 40

Chi-Square Tests


sided)




N of Valid Cases 40



Hypothesis4: Actors play significant role to buy a Lenovo laptop

Which brand do you prefer in term of buying a laptop? * Does actors play a big role

while choosing to buy a Lenovo laptop? Crosstabulation

Count

Does actors play a big role while

choosing to buy a Lenovo laptop?

Total

Yes No

Which brand do you prefer in


Dell 6 7 13

Lenovo 2 3 5

Samsung 0 1 1

HP 2 16 18

Others 0 3 3

Total 10 30 40

Chi-Square Tests


sided)




N of Valid Cases 40



Hypothesis5: ThinkPad of Lenovo laptop is effects to buy Lenovo laptops.

Which brand do you prefer in term of buying a laptop? * How was the idea of Lenovo's

thinkpad? Crosstabulation

Count

How was the idea of Lenovo's thinkpad? Total

Satisfactory Good Very Good



Dell 5 7 1 13

Lenovo 2 3 0 5

Samsung 0 1 0 1

HP 4 14 0 18

Others 1 2 0 3

Total 12 27 1 40

Chi-Square Tests


sided)



Linear-by-Linear Association .196 1 .658

N of Valid Cases 40



Hypothesis6: There is significant relationship between availability of service centres and buying a laptopWhich brand do you prefer in term of buying a laptop? * How far would you like to travel to

find out a Lenovo service center? Crosstabulation

Count

How far would you like to travel to find out a Lenovo

service center?

0-5Km 6-10Km 11-15Km



Dell 6 4 2

Lenovo 3 2 0

Samsung 0 1 0

HP 11 4 2

Others 2 1 0

Total 22 12 4

Which brand do you prefer in term of buying a laptop? * How far would you like to travel to find out a

Lenovo service center? Crosstabulation

Count

How far would you like to

travel to find out a

Lenovo service center?

Total

15Km+

Which brand do you prefer in term of buying

a laptop?

Dell 1 13

Lenovo 0 5

Samsung 0 1

HP 1 18

Others 0 3

Total 2 40

Chi-Square Tests


sided)



Linear-by-Linear Association .650 1 .420

N of Valid Cases 40



Hypothesis7: EMI option of Lenovo gives positive impact on image.

Which brand do you prefer in term of buying a laptop? * Does Lenovo gives EMI

option while buying a laptop? Crosstabulation

Count

Does Lenovo gives EMI option

while buying a laptop?

Total

Yes No



Dell 10 3 13

Lenovo 4 1 5

Samsung 0 1 1

HP 10 8 18

Others 1 2 3

Total 25 15 40

Chi-Square Tests


sided)




N of Valid Cases 40



Hypothesis8: Preinstalled OS has direct impact on purchase of Laptop

Which brand do you prefer in term of buying a laptop? * The laptop should come with the following Operating

System pre-installed: Crosstabulation

Count

The laptop should come with the following Operating System pre-

installed:

Windows Linux Ubontu

Which brand do you prefer in term of

buying a laptop?

Dell 13 0 0

Lenovo 4 1 0

Samsung 1 0 0

HP 15 1 1

Others 2 1 0

Total 35 3 1

The laptop should come

with the following

Operating System pre-

installed:

Total

No OS

Which brand do you prefer in term of buying

a laptop?

Dell 0 13

Lenovo 0 5

Samsung 0 1

HP 1 18

Others 0 3

Total 1 40

Chi-Square Tests


sided)




N of Valid Cases 40



Hypothesis9: Gender has significant impact on satisfaction level of Lenovo laptops.

Group Statistics

What is Gender? N Mean Std. Deviation Std. Error Mean

How would you rate Lenovo

compared to its nearest

competitors on basis of

performance?

Male 19 3.16 .602 .138

Female 21 3.10 .889 .194

Independent Samples Test

Levene's Test for Equality of

Variances

t-test for

Equality of

Means

F Sig. t




performance?

Equal variances assumed .744 .394 .258

Equal variances not

assumed.263


t-test for Equality of Means

df Sig. (2-tailed) Mean Difference




performance?

Equal variances assumed 38 .798 .063

Equal variances not assumed 35.330 .794 .063



Std. Error

Difference

95% Confidence

Interval of the

Difference

Lower




performance?

Equal variances assumed .243 -.429

Equal variances not assumed .238 -.421


t-test for Equality of

Means

95% Confidence Interval

of the Difference

Upper

How would you rate Lenovo compared to

its nearest competitors on basis of

performance?

Equal variances assumed .554

Equal variances not assumed .546

Hypothesis10: There is a significant relationship between add value of Lenovo and satisfaction level of Lenovo laptops.

Group Statistics

What value added services does

Lenovo give??

N Mean Std. Deviation




performance?

Services 9 2.67 .707

Product options 6 3.00 .000

Group Statistics

What value added services does Lenovo

give??

Std. Error Mean

How would you rate Lenovo compared to its

nearest competitors on basis of performance?

Services .236

Product options .000


Levene's Test for Equality of Variances t-test for

Equality of

Means

F Sig. t




performance?

Equal variances assumed 7.962 .014 -1.140

Equal variances not assumed -1.414



df Sig. (2-tailed) Mean Difference




performance?

Equal variances assumed 13 .275 -.333

Equal variances not assumed 8.000 .195 -.333



Std. Error Difference 95% Confidence

Interval of the

Difference

Lower


compared to its nearest competitors

on basis of performance?

Equal variances assumed .292 -.965

Equal variances not assumed .236 -.877



95% Confidence Interval of

the Difference

Upper

How would you rate Lenovo compared to its

nearest competitors on basis of performance?

Equal variances assumed .298

Equal variances not assumed .210

Findings

Image of Lenovo laptops not good compare to their competitors like Dell and HP.Most of the customers prefer Dell and HP compare to Lenovo laptops in India.

But image of Lenovo laptops good compare to their competitors like Samsung,Acer,Asus and other laptops in India.

SUGESSION Most of the customer still not prefer Lenovo laptops.

Company need add some new innovative ideas to capture laptop markets in India.

Most of customer looks for good features in affordable price, so company need to utilize this thing.

Laptop SurveyResearch Survey on laptop comparison

What is your Gender? Male Female

Which brand do you prefer in terms of buying a laptop? DELL LENOVO Samsung HP Others

What are your price ranges? Rs 20000-25000 Rs 25001-35000 Rs 35001-45000 And above

Which laptop you are using now? DELL Lenovo Samsung HP Others

How would you Satisfaction rate Lenovo compared to its nearest competitors on basis of performance?

What is the key factor you look first while buying a laptop??? Hard disk

Display Lan card Touch or without Touch Sound Others

What value added services does Lenovo give?? Services Product options Price ranges Higher number of service centers

What you do most in Laptop?

Official work

Gaming

Internet surfing

Entertainment

What are your preferences in a scale of four to all those previous items?

Rarely Sometimes Most often All the time

Official work

Gaming

Internet surfing

Entertainment

How was the idea of Lenovo's ThinkPad? Bad Satisfactory Good Very Good

Does actors play a big role while choosing to buy a Lenovo laptop? Yes No

What is most praised thing in Lenovo laptop?? Price Features Battery life Weight Looks

The laptop should come with the following Operating System pre-installed:

Windows Linux Ubontu No OS

Does Lenovo gives EMI option while buying a laptop? Yes No

How do you place an order? Online Offline Others

Does Lenovo give any extended warranty options??

Yes No

Does Lenovo provide original anti-virus CD??? Yes No

Does Lenovo provide original OS CD??? Yes No

What is the average battery life of Lenovo laptop? 2yr 3yr 4yr 4+

Does Lenovo gives changing cover option??? Yes No

How far would you like to travel to find out a Lenovo service center? 0-5Km 6-10Km 11-15Km 15Km+

research on customer perception on lenovo laptops...

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