Branding 1 PDF
Branding 1 PDF
1: Introduction
A smartphone is a cell phone that lets you to do more than just make phone calls and
send text messages. Smartphones are a class of mobile phone and multi- purpose mobile
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computing device. They are distinguish from mobile phone by their stronger hardware
capabilities and extensive mobile operating systems, which facilitate wider software,
internet , and multimedia functionality (including music, video, cameras and gaming).
Smartphones typically include various sensors that can be leveraged by their software,
such as magnetometer, proximity sensors and many more, and support wireless
communications protocols such as Wi- Fi, Bluetooth and satellite navigation.
In 1992, the first commercially available device that could be properly referred to as a
“smartphone” began as a prototype called “Angler” developed by Frank Canova while
at IBM (International Business Machines Corporation). And demonstrated in
November of that same year at the COMDEX computer industry trade show.
As early as 1940s, when engineers employed at AT&T developed cell for mobile
phone base stations, mobile phones were invented. But the very first mobile phones
were not actually mobile phones at all. They were only two–way radio which allowed
people like taxi drivers and the emergency services to communicate.
In 1973, the first handheld mobile phone was demonstrated by John F. Mitchell
and Martin Cooper of Motorola by using a handset weighing 2 kilograms. And the
world’s first cellular network that is analog(1G) launched by Nippon Telegraph and
Telephone(NTT) in Japan, in 1979. This was followed in 1981 by the immediate launch
of the Nordic Mobile Telephone (NMT) system in the four country that is Denmark,
Norway, Finland and Sweden. And then many countries followed in the early to mid-
19880s. DynaTAC 8000x was the first commercially available handheld mobile phone
in 1983. In 1991, Radiolinja launched the second-generation(2G) digital cellular
technology in Finland on the GSM (Global System for Mobile communications)
standard. Ten years later, the third generation(3G) was launched by NTT DoCoMo in
Japan on the WCDMA(Wideband Code Division Multiple Access) standard, in 2001.
This was followed by some enhancements like 3.5G, 3G+ or turbo 3G based on high-
speed packet access(HSPA) family and permitting Universal Mobile
Telecommunications System (UMTS) to have higher capacity and higher data transfer
speeds. By 2009, it was clear that 3G Network would be overpowered by the growth of
bandwidth-intensive applications. The two very first commercially available
technologies to bill as 4G were the WiMAX Standard offered by Sprint in North
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America and the LTE Standard first offered by TeliaSonera in Scandianavia. 5G is a
technology will be the next major phase in mobile telecommunication standards.
In 1999, the first blackberry phone was unveiled. This phone was famous for
its super-easy email services and Blackberry handsets were seen as the ultimate
business tool which allows users to read and respond to emails from anywhere. In 2000,
the Nokia 3310 crash landed on shop shelves successfully. And Nokia 6750 was the
first camera phone arrived in 2002. In the year 2007, the iPhone was arrived in the
market.
➢ Web Surfing
The smartphones also make it convenient for people to surf the web. These
devices are integrated with mobile browsers that enable them to research and
access websites anytime and anywhere. According to a study, 10% of the total
time spent by people on smartphones is used in opening browsers to surf the
internet. With this, people have easy access to information.
➢ Entertainment
Smartphones are also viewed as a source of entertainment – games, music,
movies, and books. Moreover, users can listen to their favourite music.
Watching movies and reading e-books are also convenient through
smartphones.
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Not only bills but also one can use smartphones to book tickets such as railway
tickets, air tickets, movie tickets, bus tickets etc.
➢ Education
Smartphones are also helpful in education, especially to University students.
With easy access to information and helpful content, students can have a more
interactive learning by watching educational videos and playing quiz & puzzle
games.
➢ Hundreds of Utilities
All the feature are now available in one device. You can easily access to past
and future Calendars and easily see the dates and years. Camera allows you to
capture thousands of images and can create videos. Now you have no need to
buy Calculator from outside because this facility is available in every mobile in
advance. A lot of smart phones, even simple sets also, have built-in torch.
➢ Data Transfer
Now you can easily transfer data from one device to another device. Your
photos, documents, videos and other important documents are easily transferred
from one device to another device within seconds. You can also store your data
in it.
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being purchased in order to fully use the other functionalities offered by the app.
If you also want data connectivity, you need to maintain a data plan.
➢ Distraction
Despite the productivity, smartphones can really be distracting. Applications
notify you when there are messages, updates, latest offers, etc. These interrupt
the momentum which can potentially affect your productivity. When you attend
to these notifications, you’ll find yourself attached to the phone.
➢ Addiction
Many of the time people wake up in the morning and checking their phones
first. This is an early sign of smartphone addiction. This problem may lead to a
serious addiction. This may include addiction to games, social media, etc.
➢ Health Issues
Smartphones are also found to have a negative impact on your health.
Smartphones emit radiofrequency energy which can be absorbed by the tissues
in the body. Sleep deprivation is also one of the common bad effects of using
smartphones. Moreover, phones produce HEV (High energy Visible) light
which can damage your eyes’ retina.
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➢ Impaired concentration/ attention span
This is directly related to the amount of time you can stay away from your
phone. The longer you can stay away from your phone, the more you can
concentrate on your work, or studies. However, checking our phones every ten
minutes or so for new notifications has almost become an instinct for us, and
every time we check the phone, we lose our concentration. Although that one
minute might seem insignificant, but the loss in concentration is very
significant for productivity.
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Samsung, Huawei and Apple were the top smartphone developers worldwide in first
quarter of 2016. According to Garter, smartphone sales accounted for 78% of the total
mobile phone sales and grew to 3.9 percent in first quarter of 2016.
Motorola was the market lender in mobile phones from 1983 to 1998. And then
from 1998 to 2012, Nokia became the market lender in the mobile phones. In quarter
3 of 2012, Samsung overthrew the Nokia and became the largest manufacturer.
In Q4 2017, the market share of top five worldwide smartphone sales to the
end users were Samsung (18.2%), Apple (17.9%), Huawei (10.8%), Xiaomi (6.9%),
Oppo (6.3%).
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Table 1.2:Worldwide Smartphone Sales to End Users by Vendor in 4Q17
(Thousands of Units)
In third quarter of 2018, the top five manufacturer were Samsung (20.3%), Huawei
(14.6%) surpassed Apple as the world's second-largest phone manufacturer during
Q2 2018 and Apple (13.2%), Xiaomi (9.7%) and OPPO (8.4%).
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Notes:
Company shipments are branded device shipments and exclude OEM sales for all
vendors.
The "Company" represents the current parent company (or holding company) for all
brands owned and operated as a subsidiary.
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From the latest report published by market research firm CyberMedia Research
(CMR), revealed that “Make In India” handsets contributed 67% to the total sales. And
India shipped a total 52.8 million handsets, which is a 4% decline as compared to the
number of handsets shipped in the same quarter of the last year. To enhance the
contribution of the manufacturing sector towards the GDP, the step first step was taken
as the Make in India campaign to craft a manufacturing core in the nation.
Table 1.4: Top 5 Indian Smartphone Company Shipments, Market Share and
Year-Over-Year Growth, Q2 2018(shipments in millions)
In second quarter of 2018, the top four companies in term of market share
were Xiaomi became the leading smartphone brand in India with 29.7%, Samsung
(23.9%), Vivo (12.6%) and OPPO (7.6%).
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Graph 1.2: Two years comparison of Top 5 Smartphone Company Market
Share and Year-Over-Year Growth, Q3 2018(in percentage)
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A brand is an recognizing symbol, mark, logo, name, word and/or sentence that
companies use to differentiate their product from others.
Meaning of branding
Kotler (1999) extends the concept of identity by stating that brand is capable of
conveying up to six different stages of meaning and which is known as “Six
Dimensions of the Brand”. And they are as follows:
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1.5.3 Characteristics of a brand
Boone and Kurtz (2005) refers to brand equity as “the added value that a certain
brand name gives to a product in the market – place”.
Branding expert David Aaker defined brand equity (1991) as “A set of assets and
liabilities linked to a brand, its name and symbol, that adds to or subtracts from
the value provided by a product or service to a firm and/or to that firm’s
customers.”
Aaker and McLaughlin (2007) examines the sources of brand equity to be in the
form of brand awareness, perceived quality, brand associations and brand loyalty.
Brand Equity consists of four dimensions that is brand awareness, perceived quality,
brand association and brand loyalty, each providing value to a firm in many ways.
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A. Brand Awareness
The first step of building equity is awareness of the brand name among target
consumer. A simple meaning of awareness is customer know about the
existence of the brand and can remember that what category the brand is in. The
company can build awareness by making the brand visible to the target audience
by several promotional approaches such as advertising, sponsorship, publicity,
events, etc. And the brand which has higher awareness are purchased more
frequently.
B. Perceived Quality
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C. Brand Association
D. Brand Loyalty
The most important indicator of brand equity is brand loyalty because loyalty
develops after the purchase of product and indicates a constant support by a
customer over a longer period of time. Brand loyal customers form the
foundation of a company.
Brand loyalty also acts as a potential barrier to new entrants and gives time
to the company to respond to competitive threats.
(Belch and Belch, 1993) Consumer behaviour is defined as “the process and
activities that people engage in when searching for, selecting, purchasing, using,
evaluating, and disposing of products and services so as to satisfy their needs and
desires”.
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According to the American Marketing Association, Consumer behaviour is “the
dynamic interaction of affect and cognition, behaviour and environmental events by
which human beings conduct the exchange aspects of their lives.”
There are many buyers for different products. Consumers make many
decisions regarding purchases of product that depend on the direct communication with
the marketers. For some products involve a decision-making unit consisting of more
than one person. There are five main buying roles. They are as follows:
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a) Initiator: The person who decides to start the buying a particular product or
service.
b) Influencer: The person who tries to convince others to buy a particular
product. And we can also say that a person whose advice influences the
decision.
c) Decider: The person who makes the final decision of buying a product or
service. A decider can be a person who decides on any component of buying
decision like
• Whether to buy,
• What to buy,
• Why to buy,
• When to buy and
• How to buy
d) Buyer: The person who is going to buy the product directly from the market
like shop or the person who makes actual purchase.
e) User: The person who uses or consumes the product or service.
There is difference between consumer and customer. The Customer is the person
who buys a goods or services, that is, someone who actually pays the money from his
or her income to purchase the product. And the Consumer is the person who actually
consumes or uses that product. The End consumer and the Actual Customer are a part
of the Decision-Making Process.
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Stage 1: Need Recognition
The first step is recognizing the need in the consumer decision making process.
The need is the most significant element which leads towards the actual buying of the
product or service. If there is no need then purchase cannot take place. And the need
may have been triggered by internal stimuli such as thirst or hunger or external stimuli
such as advertising.
Information can be collected from many different sources like personal contacts, prints
and commercial information source (TV Ads, electronic media) about certain product.
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Stage 3: Evaluation of Alternatives
This is the third step in consumer decision making process. The consumer
commence to search out for the best option and he has identified the need and also
source to satisfy that need. And then the consumer will evaluates different options
product quality, product price, product quantity and features of the product or other
important factors. After evaluating the option customers review and compare prices for
the substitute products before choosing the product that will help him or her in
satisfying the need at the best possible manner. The consumer choose the product based
upon his or her style, taste, income and preference.
The final step in consumer decision making process is that the consumer
evaluates or analyses the purchased product, usefulness of the product, satisfaction level
from the product and also value of the product with respect to the need fulfilment of the
consumer. Then the consumer may come to know the right choice has been made in
buying that particular product or not. If the consumer feels that the product bought
delivered the value and also has met the expectation then they will become the loyal
customers of the product.
• Product
Many characteristics of a company’s products, including brand name,
quality, newness can affect consumer behaviour. A marketer needs to design
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products or services that would satisfy needs or wants of consumer. The
physical appearance of the product like size, shape; packaging, labelling can
influence consumer decision. Therefore marketer has to decide about
important aspects of service, packaging, condition to differentiate their
product from the other, so that it create consumer perception that the product
is worth purchasing.
• Price
The price is the second most important component of marketing
mix. Price of the products and services can influence consumer buying
behaviour. If the particular brand offer lowest price then more consumers get
attracted towards that brand. It is important for the marketer to decide what
price to be charged for a product or service to stay competitive in a today’
competitive market.
• Promotion
Sales promotions, publicity, sales people and advertising can influence
what consumers think about products, what emotions they experience while
purchasing and using a particular product. Marketing communication play a
crucial role in informing consumers about products and services, including
from where they can buy and in creating favourable image and perceptions.
Therefore marketer need to decide which method would be most suitable to
effectively reach the consumers.
• Place
The final stage of marketing mix is distributing channel. The
marketer has to strategize for distributing channel, that is, how and where to
offer the products and services to the consumers. The marketer’s strategy for
distributing products and services can influence in many different ways. The
following decisions are taken care of by the marketer regarding distribution
mix:
Whether the distribution should be done through all the retail outlets
or only through selected outlets
Whether the marketer should use existing outlets or new elite outlets
selling only the marketer’s brands
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Importance of location of the retail outlet from the point of view of
consumers
Various other distribution options such as Direct selling and marketing
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• Sub-culture: Sub-culture plays an important role in consumer
buying behaviour. Sub-culture involves religions, nationalities,
racial groups and geographical region. And the marketers often
design marketing programmes customized to their needs.
• Social Factors: Social class are hierarchically ordered and
whose members share similar values, behaviour and interests.
And social classes don’t reflect only income but also reflect
other indicators such as education, occupation and area of
residence.
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• Age and stage of life cycle: People purchase different goods
and services over their lifetime. For example, they eat baby
food in the early years and most of food in the growing and
mature years and t diets or special foods in the later years. So
the people’s taste is age related.
• Economic circumstances: Product choice are greatly affected
by one’s economic conditions. Economic stability consist of
their disposable income (its level, time pattern and stability) ,
saving and assets, debts borrowing power and attitude toward
spending verses saving.
• Lifestyle: It is not important that people coming from same
social class, subculture and occupation have same lifestyle.
They may have different lifestyle. And the lifestyle of
individual expressed in the persons activities, opinion and
interest.
• Personality and self-concept: Each person has a different
personality that influences his or her buying behaviour.
Personality means a person’s distinguishing psychological
characteristics. Personality can be a useful for analysing
consumer behaviour.
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• Learning: Learning involves changes in a behaviour of individual
arising from experience. Learning theory teaches marketers that
they can build up demand for a product by relating it with strong
drives, using motivating signs and providing positive support.
• Beliefs and Attitudes: A belief is an expressive thought that a person
hold about something. While doing or learning something, people
acquire beliefs and attitudes which in turn influence their buying
behaviour. And attitude is an individual’s enduring favourable or
unfavourable evaluation, emotional feeling and action tendencies
towards some idea or object.
Xiaomi:
There are many reasons that favour the company by the Indian
audience. One of the best reason is Xiaomi offers high-end smartphone at
affordable prices. Its own MIUI operating system platform which is quite popular
and also has quite a following. Talking about top products of Xiaomi, the Redmi
Note 4 was the best-selling smartphone in India. And the company shipped
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roughly 4 million units in that quarter which propelled the company to the top
mobile phone companies in India.
Samsung:
For Q3 2017, the IDC (International Data Corporation) reveals that Samsung
captured a 23.5% market share. J- series helped the company sustain its spot. As
per the IDC report, some of the best-selling models of Samsung were Samsung
Galaxy J2, Samsung Galaxy J7 Nxt and Samsung Galaxy J7 Max had contributed
to almost 60% of the volume for the company to become the top mobile phone
companies in India in 2017.
According to the IDC report, Samsung became the second largest smartphone
manufacturer in India with a 23.9% market share in the Q2 2018.
Vivo:
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mid-range segment of the market. In Q1 2015, the company joined the ranks of
the top mobile phone companies in India with a 2.7% market share.
Apple:
In 1976, Apple was founded by Steve Job, Steve Wozniak and Ronald
Wayne. It is an American multinational technology company and headquartered
in Cupertino, California, U.S. Apple started as a personal computer inventor that
today makes everything from mobile to portable media players. Apple phones are
called iPhones, it is a line of smartphones designed and marketed by Apple Inc.
and run on Apple’s iOS mobile operating system.
On 29 June, 2007, the first generation iPhone was released and there have
been multiple new hardware iterations with new iOS releases since. In 2017, the
iPhone 8 and iPhone 8Plus were out which adding an improved screen and camera
and a glass back. Along with the iPhone 8 and iPhone 8Plus, the iPhone X was
released. And it provides bezel-less design, new facial recognition system, named
face ID and many more. From India revenue of Apple have doubled year over
year.
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OnePlus:
And the latest release of OnePlus was OnePlus 5T which was sold out
within five minutes of the special one-hour preview sale of Amazon.
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Chapter No. 2: Research Methodology
• To study the brand preference for mobile phones among the consumers.
• To study the reasons of particular brand preference.
• To study the factor influencing consumer buying behaviour
• To find out an impact of brands on consumer behaviour.
This study is intended to find out the effectiveness of the text based survey
questioning for specific parameters in mobile phone buying decision making
process. The scope of the research is to identify the kind of similarities or
differences in responses when questions related to mobile phone buying is asked.
It also aims to identify the strength of responses from end users.
➢ This study helps to know the factors which influence the consumer to
purchase mobile phones;
➢ This study helps to know the buying behaviour of the consumer while
choosing mobile phones;
➢ This study also helps to know the consumers satisfaction level towards
different branded mobile phones;
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➢ This study also helps to know reason for dissatisfaction of the consumer
towards particular brands.
The research will have the some limitations. They are as follows:
• The research has been prepared within the time span of one month and
therefore there was limited time for conducting the research and the literature
review.
• The research is based on the sample size of 117 and mainly quantitative
measure was taken to measure the consumer buying behaviour towards
different mobile phone brands.
• Opinion of respondents have been taken as true sense which may not be
correct.
• This study is limited to the western suburb only.
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2.5 Research Problem
With the advent and rapid growth of the technological era, the demand for
mobile phones has increased. Mobile phones are useful for communication and
are convenient especially for students. Mobile phones are now a necessity in the
lives of people. Due to rapid developments in technology, modernization and new
innovations, there is a short mobile phone lifecycle which has a tremendous
impact on the manufacturers and retailers of such products. Manufacturers are
forced to upgrade and design new models of mobile phones on an ongoing basis.
However, the rapid introduction of cheaper version of mobile phones has
increased the rate of competition between companies in the mobile industry.
The purpose of the study was to explore and gain an understanding of the
factors that influence brand preference in a specific group in a specific
geographical location within western suburbs of Mumbai city in Maharashtra,
India.
2.8 Sample
For this study convenience sampling method is used. The research was
conducted on the basis of primary data collected through questionnaire designed to
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collect information of data about the impact of branding of mobile phones on
consumer buying behaviour. The researcher has taken opinion from 117
respondents.
Raw data or primary data is a term for data collected source. This type of
information is obtained directly from first hand sources by means of surveys,
observations and experimentation and not subjected to any processing or
manipulation and also called primary data.
Primary as well as secondary source of data are used while conducting the
research. The researcher has used secondary source of data such as internet,
research papers, reports for background study, literature review. The researcher has
used primary data collected through questionnaire. And 117 responses has taken
by the researcher.
2.11 Instrumentation
For this research questionnaire is used as the instrument. And the questionnaire
included the questions regarding customer’s brand preference and attributes choice
on mobile phone. The questionnaire focus more on qualitative aspect than the
quantitative aspect of the respondents. Questionnaire will consist of various types
of question such as Likert scale question, multiple response questions, matrix
question and others.
This research was conducted on the basis of primary data collected through
questionnaire.
➢ Questionnaire
In this method a questionnaire is sent via mail or some other sources to
the concerned respondents who are expected to read, understand and reply on
their own and return the questionnaire. It consists of a number of questions
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printed or typed in definite order on a form or set of forms. There are some
essentials of a good questionnaire such as it should be short and simple,
questions should proceed in logical sequence, technical term must be avoided,
etc.
▪ Advantages
o Free from bias of interviewer.
o Respondents have adequate time to give answers
o Respondents are easily and conveniently approachable
o Large samples can be used to be more reliable
▪ Disadvantages
o Dishonest answers
o Difference in understanding and interpretation
o Questionnaire or survey exhaustion
For this research study, the researcher has used MS EXCEL for the analysis of
the data. With the help of this software , the data collected form the primary source
were classified, tabulated and analysed according to the needs of the research. In
this research, findings from the data analysed were presented using tables, charts
and percentage and response frequency graphs. Frequency counts are the number
of times certain values arise in datasets, for example the number of respondents
giving a particular answer.
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Chapter No. 3: Literature Review
According to Aggarwal (2004), prior research has examined differences in how
consumers perceive and evaluate brands, for example, through investigating brand
equity, brand personality and brand extensions. More recently, researchers have
noted that consumers differ not only in how they perceive brands but also in how
they relate to brands. This line of research has suggested that people sometimes
form relationships with brands in much the same way in which they form
relationships with each other in a social context.
According to Ulas Akkucuk and Javed Esmaeili (2016), they want to understand
the factor that affect the buying behaviour of consumer. Brand name may be the
most vital and effective strategy which influence consumer behaviour at the time of
selection of product. They have been studied different aspect such as brand, brand
equity, consumer behaviour. And then they had concluded that the brand loyalty
and brand awareness influenced the consumer’s decision while purchasing
smartphone. According to their sample, it indicate that brand association and brand
awareness were not influenced the consumer purchase decision.
Anderson and Sullivan (1993), Found that the customer’s satisfaction affects the
customer in building their will to re purchase any item. Provision of quick complaint
handling and effective customer service help the management to prevent building
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of any negative impressions by the customer. Although some company can have
very good quality and product but still they suffer because element of interaction
with customer is missing and they don’t get the exact information about customer’s
need.
Batra & Ahtola, (1991), In case of mobile phone purchases, a consumer may go
through all the five stages of rational decision making or he may make quick
purchase on account of hedonic considerations. The general belief is that in case of
utilitarian products, rational decision making is involved, whereas in case of
hedonic products, emotional decision making is involved. For mobile phone
purchase, both rational and hedonic considerations may drive consumers.
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respondents emphasize less importance on durability, price, others advice and
opinion because of their swift switching attitude. As a whole, Samsung is competing
with industry leader Nokia, Symphony, Sony Erricson and other brands grab a share
of the youth market.
Ehtesham Mohammad (2012) studied that while making the purchase decision, a
consumer is influenced by several social, cultural and economic factors surrounding
him. The factors that determine mobile phone handset purchase vary from one age
to another, between male and female, one ethnic group to another and from various
psychographic and behavioural patterns. It is also noted that the all factors- whether
technological, design, brands, purposes and social reference groups played a role in
influencing consumer behaviour in selection of mobile phone handsets.
Gopal & Anjali & Aakanksha, (2013) studied showed that in today’s market
medium screen phone is quite popular, followed by large screen phones while the
only minority of buyers go for the small screen models as evident from the survey
conducted on consumers. As far as the size and weight of handsets are considered,
slim handsets are leading the consumer market, followed by medium and as for the
weight, light weighted phones are more popular while heavy weighted are the least
while medium weighted phones still hold a ground in the market as observed from
the study conducted.
Harish and Rajkumar (2011) examined service quality and customers preference
of cellular mobile service providers in India, using 125 cell phone users. The study
found that consumers’ perception varied in accordance with the communication
quality, call service, price, customer care and service provider’s quality. The study
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found that price has significant positive impact on consumers’ perception of a
telecommunication service provider.
Lacobucci, Ostrom, Grayson (1995) stated that a firm may fail to achieve better
customer satisfaction despite providing high quality service, because the properties
improved are not important from the customer’s point of view. In many cases
company are not directly interact with customers but they get information about
their product (that how much customer are satisfied with their product) from their
distributors and other market intelligence. Retailers and distributions are indirectly
representatives of the company.
Ling, Hwang and Salvendy (2006), surveyed college students to find their
preference of their present mobile phone. The results of their survey showed that
the physical appearance, size and menu organization of the mobile phones are the
most determinant factors affecting the choice of mobile phones.
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preferences on mobile phones. Various aspects of product and brand attributes were
considered such as colour themes, visible name labels, and mobile phone with
variety of models, packaging for safety, degree of awareness on safety issues, look
and design of the phone.
Mesay Sata (2013), studied the factor affecting the consumer buying decision of
mobile phones in Hawassa town. In that study, six factors were selected and
analysed. They are price, brand name, social group, product feature, durability and
after sale services. The result of that survey showed that price was the dominant
factor which affects the most while buying mobile phone. And the second most
important factor was feature of mobile phone though all features are not equally
important. He had recommended that mobile phone manufacturer should re-think
strategy while producing, marketing and distributing these devices. And also focus
more on brand personality, product design and many more since people fascinated
more towards new technology and they will be able to shift from one mobile phone
to another if it provides better technology. For that mobile phone companies should
perform periodic survey which will help them in identifying these new technology
features and decide which one to be added to its product. In turn, product design is
very important in the success of the brand.
Netemeyer et al. (2004) also accepted the dominant impact of brand equity on
customer response toward the branding campaign.
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Paul & Jerry C, (2005), the study of Consumer behaviour includes how an
individual or groups select, purchase, use or dispose of products, services ideas, or
experience to satisfy their need and desires. The consumer environment influences
how the consumers feel, consider and act. The environmental features are, for
example, comments taken from other customers, price, advertising, packing and
product appearance etc.
Paulo, Duarte and Mario (2010) quoted that several factors contribute to brand
preference, especially those related to brand identity, personality and image and
their congruence with consumer self-image. The main direct effects on brand
preference are the self-image congruence and the identity/ personality and image of
the brand. In addition to those, the level of involvement, social environment, risk
perception, demographic profile, and product visibility also show a positive
influence on brand preference.
Sandeep Kumar (2015) studied that the different product attributes that the
consumers gives importance in selecting a handset have been observed to be design,
price, internet connection, battery life, camera, video quality, apps downloading,
operating system and social networking. The product attributes help to select the
product when customer confused between different products.
Schiffman Kanuk (2004), he studied that consumer behaviour mainly sheds light
on how consumers decides to spend their various resources like time, money etc.
on various products so as to meet their needs and requirement. Consumer behaviour
encompasses study of what, when, why and where the consumers will buy their
products. It also focuses on how often the consumers use the products. Furthermore,
it also sheds light on how the consumers evaluate the products after the purchase
and the effect of evaluations on their future purchases.
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purpose, primary data was collected and analysed which showed that Price
Consciousness, Multimedia options, Features and Looks and Brand Image were the
four factors significant in influencing the purchase behaviour of mobile phones.
Solomon, (2005), he studied the consumer decision making process which defines
different steps when a consumer goes through to purchase a product. If customer
desires to make a purchase he or she follows the steps in order to do complete this
purchase. Problem recognition comprises when consumer feel a significant
difference between the current state and ideal so consumer thinks that there is some
problem to be solved. The problem might be small or big. In the next step, the
consumer search for information about the product. The extent of information
search depend on on the level of consumer involvement. The level of involvement
is high, in case of expensive products. Conversely, in case of relatively cheap
products the level of involvement is generally low. In the third step, the consumer
14 evaluates the different characteristics of the brands. Consumer may consider the
product attributes and then compare brand products. In the last and final step is that
consumer makes his choice about a product.
Vasita and Rajpurohot (2011) refers outcome of resulting from the customer's
pre-purchase comparison between of expected performance and actual performance
with affordable cost is customer satisfaction. If the actual performance of service
provider more than customers’ expected that means customers are satisfied. When
situation is opposite as like actual performance is less than expected that means
customers are dissatisfied.
39
Chapter No. 4: Data Analysis and Interpretation
Data analysis & Research findings have been interpreted with respect to the
objectives of the study. While analysing the data, the research used quantitative and
qualitative techniques. Mathematical measures such as total and percentage are used in
Quantitative analysis whereas Qualitative analysis comprises of logical reasoning,
comparisons, interpretation, etc. Relevance of the findings supports the research
objective and the report ends by providing various suggestions and conclusions.
Female 75 64.1
Male 42 35.9
Total 117
70.00%
60.00% 64.10%
50.00%
40.00%
30.00% 35.90%
20.00%
10.00%
0.00%
Female Male
From the above diagram, it can be seen that there are 64.1% (75) respondents are
female and 35.9% (42) respondents are male.
40
Table 4.2: Age-wise Analysis
20 - 30 years 66 56.4
30 - 40 years 16 13.7
Total 117
Age
14.50% 15.40%
Below 20 years
13.70% 20 - 30 years
30 - 40 years
Above 40 years
56.40%
From the above diagram we can observe that out of 117 respondents, 66
(56.4%) respondents are between the age group of 20 to 30 years. And 18 (15.4%)
respondents are of age group of below 18 years. While 17 (14.5%) respondents are
above 40 years and 16 (13.7%) respondents are between the age group of 30 years to
40 years.
41
Objective 1
Table 4.3: Consumer brand preference
One + 36 30.8
Vivo 6 5.1
Xiaomi 22 18.8
iPhone 25 21.4
Samsung 20 17.1
Others 8 6.8
Total 117
From the above table, it can be seen that 30.8% (36) respondents’ favourite brand
is One+. And 21.4% (25) respondents, 18.8% (22) respondents, 17.1% (20)
respondents’ favourite brand is iPhone, Xiaomi and Samsung respectively. And only
6.8% (8) respondents have other brands as favourite and 5.1% (6) respondents’
favourite brand is Vivo.
25.00%
21.40%
18.80%
20.00% 17.10%
15.00%
10.00%
6.80%
5.00%
5.10%
0.00%
One + Vivo Xiaomi iPhone Samsung Others
42
Objective 2
Peer/
Catchy Family
Better Reasonab Better
advertise usage Others
Outlook le price Feature
ment Satisfacti
on
F % F % F % F % F % F %
Sam
27 23.1 26 22.2 19 16.2 18 15.4 40 34.2 32 27.4
sung
One
34 29.1 22 18.8 25 21.4 49 41.9 20 17.1 25 21.4
+
iPho
39 33.3 11 9.4 32 27.4 23 19.6 17 14.5 29 24.8
ne
Xiao
11 9.4 45 38.5 13 11.1 22 18.8 34 29.1 19 16.2
mi
Vivo 6 5.1 13 11.1 28 23.9 5 4.3 6 5.1 12 10.2
Where, F: Frequency
From the above table, we can observe that out of 117 respondents, 39
(33.3%) respondents feel that iPhone provides better outlook and 34 (29.1%)
respondents feel that One+ gives better outlook out of five brands that is Samsung,
One+, iPhone, Xiaomi and Vivo. And 45 (38.5%) respondents feel that Xiaomi brand
gives reasonable price and 26 (22.2%) respondents feel Samsung provides reasonable
price. While 32 (27.4%) respondents and 28 (23.9%) respondents feel that iPhone ad
Vivo respectively has catchy advertisement. Whereas 49 (41.9%) respondents and 23
(19.6%) respondents prefer One+ and iPhone because it provides better feature. Out of
117 respondents, 40 (34.2%) respondents and 34 (29.1%) respondents chose Samsung
and Xiaomi respectively bacause of Peer/ Family usage satisfaction.While 32 (27.4%)
respondents and 29 (24.8%) respondents chose Samsung and iPhone due to some other
reason.
43
Graph 4.4: Reason of particular brand preference
Objective 3
nce
F % F % F % F % F % F %
As per the table of total 117 frequency, we can say that the most important
influencing factor for consumer buying decision is Quality of the product with 35
44
(29.9%) respondents ranking it no. 1 while decision making. Whereas the least
importance is given to Performance as 35 (29.9%) respondents giving it Rank 5 while
making purchase decision. Out of 117 respondents, 24 (20.5%) respondents think that
Brand is the most influencing factor while making purchase decision. Also, 23 (19.7%)
respondents give first preference to Price by giving it Rank 1 and 18 (15.4%) give
preference to Design while making buying decision by ranking it no.1.
41
35 35
33
32 32
31
28 28
26 26
25 25
24
23 23 23
22 22 22
21
18 18
17
16
15
12
11
9 9
Objective 4
45
From the table, we can observe that 64 (54.7%) respondents will postpone
their purchase if the preferred brand is not available and 30 (25.6%) respondents will
go to the showroom of their brand to purchase the product. And only 23 (19.7%)
respondents will switch over to other brand.
54.7%
25.6%
19.7%
Graduate 37 31.6
Post Graduate 10 8.5
Professionals 6 5.1
Others 3 2.6
Total 117
From the above table, it can be seen that 61 (52.1%) respondents are
undergraduates and 37 (31.6%) respondents are graduates. While 10 (8.5%)
respondents are post graduates and 6 (8.5%) respondents are professionals. Whereas 3
(2.6%) respondents have some other qualification.
46
Graph 4.7: Qualification Details
52.10%
31.60%
8.50%
5.10%
2.60%
Student 66 56.4
Self employed 13 11.1
Salaried 18 15.4
Professional 9 7.7
House wife 9 7.7
Others 2 1.7
Total 117
From this table, we can observe that 56.4% (66) respondents are students and
15.4% (18) respondents are salaried group. While 11.1% (13) respondents are self-
employed and 7.7% (9) respondents are professionals and housewives. Only 1.7% (2)
respondents are others like retired.
47
Graph 4.8: Occupation-wise Analysis
Occupation
7.70%
1.70%
Student
Self employed
7.70%
Salaried
15.40%
56.40% Professional
Others
below 100000 69 59
Total 117
48
Graph 4.9: Annual income Analysis
ANNUAL INCOME
11.10%
MORE THAN 500000
16.20%
200000 - 500000
13.70%
100000 - 200000
59%
BELOW 100000
Frequency Percentage(%)
Samsung 20 17.1
Xiaomi 39 33.3
One + 4 3.4
iPhone 13 11.1
Vivo 10 8.5
Others 31 26.5
Total 117
From the above table, it can be seen that out of 117 respondent there are 33.3%
(39) respondents are using Xiaomi whereas 26.5% (31) respondents are using other
mobile phone brand. While 17.1% (20) respondents are using Samsung mobile and
11.1% (13) respondents are using iPhone mobile phones. And only 8.5% (10)
49
respondents are using Vivo mobiles. However 3.4 % (4) respondents are using One+
mobile phone brand.
17.1% Samsung
26.50% Xiaomi
One +
iPhone
Vivo
8.50%
33.3% Others
11.10%
3.40%
Frequency Percentage(%)
Advertisement 13 11.1
Suggestions from friends and relatives 49 41.9
Attractive display 16 13.7
Brand Ambassador 4 3.4
Others 35 29.9
Total 117
From the above table, we can observe that out of 117 respondents, 49 (41.9%)
respondents are motivated by friends and family to prefer for the current brand.
Whereas 35 (29.9%) respondents are motived by others. While 16 (13.7%) respondents
are motivated by attractive display of mobile phone brand and 13 (11.1%) respondents
are motivated by advertisement of mobile phone brand. However 4 (3.4%) respondents
are motivated by the brand Ambassador.
50
Graph 4.11: Motivation for selecting current mobile phone brand
45.00%
41.90%
40.00%
35.00%
29.90%
30.00%
25.00%
20.00%
15.00% 13.70%
11.10%
10.00%
5.00% 3.40%
0.00%
Advertisement Suggestions from Attractive display Brand Others
friends and Ambassador
relatives
Frequency Percentage(%)
Total 117
51
Graph 4.12: Price of purchased mobile phone
63.20%
17.10% 17.10%
19.70%
From the above diagram, out of 117 respondents there are 74 (63.2%)
respondents whose mobile phone prices are in range of Rs.10000 to Rs. 20000. And 23
(19.7%) respondents’ price of phone is below Rs.10000 and only 20 (17.1%)
respondents’ mobile phone price is above Rs.20000.
Frequency Percentage(%)
Total 117
52
From the above table, we can observe that 63.2% (74) respondents preferred
for better feature, 22.2% (26) respondents preferred for reasonable price. And 5.1% (6)
respondents chose for peers with the brand and for some other reasons. And only 3.4%
(4) respondents and 0.9% (1) respondents preferred for better outlook and catchy
advertisement respectively.
70.00%
63.20%
60.00%
50.00%
40.00%
30.00%
22.20%
20.00%
Frequency Percentage(%)
1 - 2 years 46 39.3
More than 2 years 39 33.3
Total 117
Out of 117 respondents, there are 39.3% (46) respondents who are using their
current mobile phone for 1-2 years and 33.3% (39) respondents are using their current
mobile phone for more than 2 years. And 27.4% (32) respondents are using their current
mobile phone for less than 1 year.
53
Graph 4.14: Time period of using current mobile phone
27.4%
33.3% Less than 1 year
1 - 2 years
39.3%
Frequency Percentage
1 - 2 years 35 29.9
3 - 4 years 62 53
Total 117
54
Graph 4.15: Frequency of changing mobile phone
53%
29.90%
13.70%
3.40%
From the above table, out of 117 respondents it can be seen that 62(53%)
respondents change their mobile phone in 3 to 4 years. And 35 (29.9%) respondents
and 16 (13.7%) respondents change their phone after 4 years or more than 4 years. Only
4(3.4%) respondents change their mobile phone in less than 1 year.
Frequency Percentage(%)
Call 38 32.5
Songs and social media 34 29.1
Internet 33 28.2
Camera 8 6.8
Memory 4 3.4
Total 117
From the above table, we can observe that 38 (32.5%) respondents use their
mobile phone for calling purpose and 34 (29.1%) respondents use mobile phone for
55
listening songs and social media purpose. And out of 117 respondents, 33 (28.1%)
respondents use mobile phone for internet. However, only 8 (6.8%) respondents and 4
(3.4%) respondents use mobile phone mostly for camera and memory purpose
respectively.
32.5…
29.10%
28.20%
6.80%
3.40%
Frequency Percentage(%)
Fair 20 17.1
Important 44 37.6
Total 117
56
Graph 4.17: Importance of brand while purchasing a mobile phone
17.10% Fair
Important
Very important
42.70%
Not important
37.60%
From the above diagram, it can be seen that out of 117 respondents, 42.7%
(50) respondents thinks that brand is very important while purchasing a mobile phone
and 37.6% (44) respondents agrees that brand is important while purchasing a mobile
phone. And 17.1% (20) respondents thinks that band is less important while purchasing
a mobile phone. Only 2.6% (3) respondents thinks that brand is not important while
purchasing a mobile phone.
Table 4.18: The Price Consumers are willing to pay for mobile phone
Frequency Percentage(%)
Total 117
57
From the above table, out of 117 respondents there are 67 (57.3%) respondents
are willing to pay for mobile in the range of Rs.10000 – Rs.20000. Whereas 19 (16.2%)
respondents, 17 (14.5%) respondents and 9 (7.7%) respondents are willing to pay
Rs.20000 – Rs.30000, Rs.5000 – Rs.10000, above Rs.40000 respectively. And only 5
(4.3%) respondents are willing to pay for their choice of mobile Rs.30000 – Rs.40000.
Graph 4.18: The Price Consumers are willing to pay for mobile phone
Frequency Percentage(%)
Total 117
58
Out of 117 respondents it can be seen that 47.9% (56) respondents are
attracted by the price offer and 39.3% (46) respondents attracted by discount. However
6.8% (8) respondents get attracted most by free gifts and 6% (7) respondents are
attracted by other promotional offer.
Free gifts
Price offer
Discount
39.3% Price offer Discount
47.9%
Any other
Table 4.20: Preference to other brands over own brand for the same product
Frequency Percentage(%)
I may consider 48 41
Total 117
From the above table, out of 117 respondents there are 41% respondents
who may buy another brand because of some reasons like urgency, etc.; and 25.6%
59
respondents are confused about their choice. However, 23.9% respondents do not prefer
any another brand at all and 9.4% respondents do not prefer the another product also.
Graph 4.20: Preference to other brands over own brand for the same product
I may consider
9.4% Can't say
41%
From the above table we can observe that more units were sold in 2018 than
in the year 2017 in India. In India, Xiaomi was leading smartphone company with
60
growth of 107.6% in terms of number of units sold. And the second largest smartphone
company was Samsung with positive growth of 21.3%. Whereas Vivo, OPPO and
Transsion also has positive growth of 18.0%, 15.2% and 53.0% respectively. However
there were few other companies who has negative growth also.
Source: IDC
From the above table, we can see that in terms of market share, here also the
Xiaomi is leading smartphone company in India. Xiaomi surpassed the Samsung in
Quarter-2 of year 2018 with 27.3%. And it has also shown a positive growth of 16,17%
in market share. Whereas Samsung’s market share fell to 22,6% in Q3 of 2018 from
23.5% in Q3 of 2017. It showed negative growth of 3.83% in market share. While there
were many companies who has positive growth in market share. Vivo has positive
growth in market share with 23.53%. And Micromax has made a surprise re-entry into
the top 5 position of the Indian smartphone market share and also has positive growth
of 60.46% in market share. Whereas OPPO’s market share fell to 6.7% in Q3 of 2018
as against 7.9% in Q3 of 2017. It means that there was a negative growth of 15.19% in
market share.
61
Chapter no. 5: Conclusions and Suggestions
5.1 Findings
In this chapter, the researcher has provided the summary of the finding. The aim
of this study was to determine an impact of branding of mobile phones on consumer
buying behaviour with respect to a Western Suburb in Mumbai. The targeted population
was from the Bandra to Dahisar area only. And the findings are as follows:
62
• As per the study, researcher found that 32.5% respondents and 29.1%
respondents are using mobile phone for the calling and songs & social media
purpose respectively.
• From the above data, it can be seen that most of the respondents are
undergraduates that means they are students or self-employed. And therefore
they are motivated by their Family & Friends to prefer the current Mobile brand.
• The researcher also found that 47.9% respondents and 39.3% respondents are
attracted by price offer and discount respectively.
5.2 Conclusion
In this modern era, a Smartphone is just not only the want but also a need if you
know how to make proper use of it. Obviously, Smartphone have changed the ways that
we used to live, communicate and connect with people all over the world.
The craze for mobile services in India is increasing substantially. This study
reveals the consumer’s purchasing behaviour towards mobile phones. Most of the
consumers having one mobile phone and also android operating system is most popular
among the mobile phone users.
The study shows that Samsung was the top manufacturer of smartphones
worldwide in 2018 where as Xiaomi became the leading smartphone brand in India in
2018 because of its better feature and reasonable price. However, One+ is also one of
the most preferred brands of Smartphones as per this study.
Consumer has become more conscious and aware about the mobile phone. So,
most of the consumers are satisfied with their current mobile phone brand. Brand name
becomes a big deal while purchasing the mobile phones. According to the study, 54.7%
of the respondents said that they are willing to postpone the buying decision if their
preferred brand is not available in the market.
Also, the research shows that Quality is the most influencing factor while
purchasing the mobile phone. The majority respondents are undergraduates i.e.,
students and therefore Family and Friends have played important role in their life for
setting up an image of a particular smartphone brand. Also, Consumers now-a-days get
63
attracted towards various promotional offers such as discounts, free gifts, etc. which
plays important role in decision making to buy a particular brand of mobile phone.
5.3 Suggestions
Based on the findings of this study, the following recommendations are made:
• Companies should also launch more smartphone with standard quality for lower
classes as this will help company to reach more consumer as lower classes
population in country are high. This will be beneficial for companies and for the
people.
64
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Appendix 1
1. Gender
Female
Male
2. Age
Below 20 years
20 – 30 years
30 – 40 years
Above 40 years
3. Educational level
Under graduate
Graduate
Post Graduate
Professionals
Others
4. Occupation
Student
Self employed
Salaried
Professional
House wife
Others
5. Annual Income
69
Less than Rs.100000
Rs.100000 – Rs.200000
Rs.200000 – Rs.500000
Samsung
Xiaomi
One+
iPhone
Vivo
Others
Advertisement
Attractive display
Brand Ambassador
Others
One+
Vivo
Xiaomi
iPhone
Samsung
Others
70
9. In what price range does your mobile phone fall?
Below Rs.10000
Rs.10000 – Rs.20000
Above Rs.20000
Better outlook
Better feature
Reasonable price
Catchy advertisement
Others
11. For how long have you been using your mobile phone?
1 – 2 years
1 – 2 years
3 – 4 years
Above 4 years
13. For what purpose do you use your mobile phone mostly?
Call
Internet
71
Camera
Memory
14. How important do you think a brand is when you purchase a smartphone?
Fair
Important
Very important
Not important
15. While purchasing a smartphone what are the important factor that help you in
deciding
( Low to high- Rank 5 to Rank 1)
Brand
Price
Performance
Quality
Design
Others
16. How much are you willing to pay for a smartphone of your choice?
Rs.5000 – Rs.10000
Rs.10000 – Rs.20000
Rs.20000 – Rs.30000
Rs.30000 – Rs.40000
72
Samsung One+ iPhone Xiaomi Vivo
Better outlook
Reasonable price
Catchy advertisement
Better feature
Others
Free gifts
Price offer
Discount
Any other
19. If your preferred brand is not available for purchase then what will you do?
20. If another brand of the same product appears in the market will you prefer to
stop buying your mobile brand and buy the new brand?
I may consider
Can’t say
73