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A Study on customer preference of various retail outlet with reference

to mobile phone in Mumbai

INTRODUCTION

1.1 Background

Customer preferences are expectations, likes, dislikes, motivations and


inclinations that drive customer purchasing decisions. They complement customer
needs in explaining customer behavior. For example, a customer needs shoes and
they'd prefer a particular style, brand and color. Appealing to the preferences of
customers is a basic marketing technique that is useful for branding, product
development, distribution and customer experience. The following are common
types of customer preference.

Customer personal values are the important factors which affect customer
behaviors, and they guide and decide the customer's attitudes and behaviors on the
products or the services. The paper thinks there are only several important
customer personal values to guide customer's decisions, and these values will
have -strong cultural differences. This study focuses on discussing the preferences
of customer personal values with Chinese culture background when customers
consume service and analyzes on the customer preferences of customer personal
values with the deep interview method.

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A Study on customer preference of various retail outlet with reference
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1.2 Introduction To Telecommunication In INDIA

Telecommunication sector in India can be divided into two segments: Fixed


Service Provider (FSPs), and Cellular Services. Fixed line services consist of
basic services, national or domestic long distance and international long distance
services. The state operators (BSNL and MTNL), account for almost 90 per cent
of revenues from basic services. Private sector services are presently available in
selective urban areas, and collectively account for less than 5 per cent of
subscriptions. However, private services focus on the business/corporate sector,
and offer reliable, high- end services, such as leased lines, closed user group and
videoconferencing.

Cellular services can be further divided into two categories: Global System for
Mobile Communications (GSM) and Code Division Multiple Access (CDMA).
The GSM sectoris dominated by Airtel, Vodafone-Essar, and Idea Cellular, while
the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of
international and domestic long distance telephony services are the major growth
drivers for cellular industry. Cellular operators get substantial revenue from these
services, and compensate them for reductionin tariffs on airtime, which along
with rental was the main source of revenue. The reduction in tariffs for airtime,
national long distance, international long distance, and handset prices has driven
demand.

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1. 3 The Global Cellular Mobile Industry

The global mobile phone industry is based on many different manufacturers and
operators. The industry is based on advanced technology and many of the
manufacturers are operating in different industries, where they use their
technological skills, distribution network, market knowledge and brand name.
Four large manufacturers of mobile phones are today dominating the global
mobile phone industry; Nokia, I phone, Samsung, Motorola and Oppo. In addition
to these companies there are many manufacturers that operate globally and
locally.

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A Study on customer preference of various retail outlet with reference
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1.4 Introduction To Mobile Phones In INIDA

Indian telecom sector is growing industry to cater with customer needs &
satisfaction. Regularly new innovative products are impacting market e:g the
various features to satisfy the customer preference . After lunching of 4G services
in India by Indian telecom sector. The innovation of new mobile handsets has
taken place the increasing number of subscribers in Indian cities & expected
growth in sector in retail industry. With growing popularity of urbanization &
innovative products with quality at all parameters customer view towards the
mobile handset has changed a lot.

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A Study on customer preference of various retail outlet with reference
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1.5 Objective Of The Study

 To study the evaluation of Mobile phones brands in retail with particular


reference to Mumbai, India.
 To ascertain the attributer which influenced the customer’s in selecting a
particular Mobile phone brands
 To study the consumer’s satisfaction towards different Mobile phone
providers in Mumbai city.
 To assess the problems faced by the Mobile phone users in Mumbai city.
 To offer valuable suggestions to improve the services of Mobile phones in
Mumbai city.
 To define marketing strategies for our new retail chain in Mumbai. The
study will provide us the deep study of consumer preference towards
mobile handsets

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

1.6 Scope Of The Study

The present study is contained to Mumbai and it is decided to consider mobile


handset brands in retail. Mobile phone handset rendered to the customers. In
Mumbai there are various brands available. Such as Nokia, LG, Samsung, Sony,
Motorola etc.
The main objectives of this study are to analyze the customer’s preferences and
needs, faced by mobile brands etc. Customer preference related to mobile
handsets in Mumbai city has been taken for the current research work

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A Study on customer preference of various retail outlet with reference
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1.7 Mobile Handset Maker Companies In INDIA

Micro
GEEPEE Zen max
X Electron Mobiles Motorola SAGEM Mobiles Mobile Samsung

San ViP
Airnet Air phone Hi-Tech Mobile Mobile Nokia Simoco
BlackBerr Sony Spice
y HTC Nelson Ericsson Spice Olive Telecom

Techno Nova Ultra Karbonn


Intex Onida touch mobiles Mobile mobile Fortune

Lava
celkon Mobiles Philips Lemon Lexus Lexus

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1.8 Introduction To MUMBAI

Mumbai is the commercial and entertainment capital of India, it is also one of the
world's top 10 centre’s of commerce in terms of global financial flow, generating
5% of India's GDP, and accounting for 25% of industrial output, 70% of maritime
trade in India (Mumbai Port Trust & JNPT), and 70% of capital transactions to
India's economy. Mumbai is home to important financial institutions such as the
Reserve Bank of India, the Bombay Stock Exchange, the National Stock
Exchange of India, the SEBI and the corporate headquarters of numerous Indian
companies and multinational corporations. Mumbai's business opportunities, as
well as its potential to offer a higher standard of living, attract migrants from all
over India and, in turn, make the city a potpourri of many communities and
cultures.

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Chapter Two: Literature Review

2.1 Industry Profile

The telecom industry is one of the fastest growing industries in India. India
has nearly 200 million telephone lines making it the third largest network in
the world after China and USA. With a growth rate of 45%, Indian telecom
industry has the highest growth rate in the world.
Much of the growth in Asia Pacific Wireless Telecommunication Market is
spurred by the growth in demand in countries like India and China. India‘s
mobile phone subscriber base is growing at a rate of 82.2%. Compared to that
India’s share in Asia Pacific Mobile phone market is 6.4%.Considering the
fact that India and China have almost comparable populations, India’s low
mobile penetration offers huge scope for Telecom sector was considered as a
strategic service and the government considered it best to bring under state's
control.

The first wind of reforms in telecommunications sector began to flow in 1980s


when the private sector was allowed in telecommunications equipment
manufacturing. In 1985,Department of Telecommunications (DOT) was
established. It was an exclusive provider of domestic and long-distance
service that would be its own regulator (separate from the postal system). In
1986, two wholly government-owned companies were created: the Videsh
Sanchar Nigam Limited (VSNL) for international telecommunications and
Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan
areas. In 1997, Telecom Regulatory Authority of India (TRAI) was created.
TRAI was formed to act as a regulator to facilitate the growth of the telecom

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sector. New National Telecom Policy was adopted in 1999 and cellular
services were also launched in the same year.

The Cellular telephone (commonly "mobile phone" or "cell phone" or "hand


phone") is a long-range, portable electronic device used for mobile
communication. In addition to the standard voice function of a telephone,
current mobile phones can support many additional services such as SMS for
text messaging, email, packet switching for access to the Internet, and MMS
for sending and receiving photos and video. Most current mobile phones
connect to a cellular network of base stations (cell sites), which is in turn
interconnected to the public switched telephone network (PSTN) (the
exception is satellite phones. Cellular telephone is also defined as a type of
short-wave analog or digital telecommunication in which a subscriber has a
wireless connection from a mobile telephone to a relatively nearby
transmitter. The transmitter's span of coverage is called a cell. Generally,
cellular telephone service is available in urban areas and along major
highways. As the cellular telephone user moves from one cell or area of
coverage to another, the telephone is effectively passed on to the local cell
transmitter. A cellular telephone is not to be confused with a cordless
telephone (which is simply a phone with avery short wireless connection to a
local phone outlet). A newer service similar to cellularis personal
communications services (PCS).

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2.2 Company Profile

OPPO is a Chinese consumer electronics and mobile communication company.


OPPO's major product lines include smart phones, Blu-ray players and other
electronic devices. The brand name OPPO was registered in China in 2001 and
launched in 2004.[1] The company has registered the OPPO brand name in many
parts of the world. OPPO is now known primarily for its smart phones, mainly
targeting younger consumers.

According to report, it was ranked as the number 4 Smartphone brand worldwide


in 2016, and was the top Smartphone brand in China in 2016.And In 2014 Central
Company In China Reopened several Branch Companies in Indonesia to Produce
Smartphone Oppo Products The company is named PT.SELALU BAHAGIA
BERSAMA Jl. continental Raya Pabuaran Tumpeng -Tangerang. And now the
Chinese Company has cooperated with Indonesia Smartphone Oppo officially
made in Indonesia With the Best quality and No less from the Central Company.

Mission

To Allow Extraordinary people Enjoy Perfect technologies

Vision

1- TO Establish a healthy and sustainable Model of Chinese company globally

2- We Strive to become a healthier and more sustainable technologies

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2.2.1 Introduction To Retail

Definitions Of Retail

A. To sell in small quantities, as by the single yard, pound, gallon, etc.; to sell
directly to the consumer; as, to retail cloth or groceries.

B. To sell at second hand. -Pop.

C. To distribute in small portions or at second hand; to tell again or to many (what


has been told or done); to report; as, to retail slander. ``To whom I will retail my
conquest won.''

Definitions Of Retailing

Retailing is the set of business activity that adds value to the products and services
sold to consumers for their personal or family use often people think of retailing
only as the sale of products in stores. But retailing also involves the sale of
services: overnight, lodging a motel, a doctor’s exam, a haircut, a videotape
rental, or a home-delivered pizza. Not all retailing is done in stores. Examples of
non-store retailing are Internet sales of records album by CDNOW, the direct
sales of cosmetics by Mary Kay, and catalog sales by L.L. Bean and Patagonia.

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2.2.2 Scenario Of Retailing In INDIA

Retailing is the most active and attractive sector of last decade. While the retailing
industry itself has been present since ages in our country, it is only the recent past
that it has witnessed to much dynamism. The emergence of retailing in India has
more to do with the increased purchasing power of buyer, especially post-
liberalization, increase in product variety, and increase in economics of scale,
with the aid of modern supply and distributions solution.
Indian retailing today is at interesting crossroad, the retail sale are the highest
point in history and new technologies are improving retail productivity. Though
there are many opportunities to start a new retail business, retailers are facing
numerous challenges.
Retailing in India is gradually inching its way toward becoming the next boom
industry. The whole concept of shopping has altered in term of format and
customer buying behavior, Ushering in a revaluation in shopping in India.
Modern Retail has entered India as scene in sprawling shopping center, multi
store malls and huge complexes offer shopping Entertainment & food all under
one roof.
India has topped the AT Kearney’s annual Global Retail Development Index
(GRDI) for the third consecutive year, maintaining its position as the most
attractive market for retail investment.
Modern retail accounts for about 4 percent of the total retail market in India. This
share is expected to increase to abort 15-20 percent with the entry of a number of
corporate into the segment. Modern retail format have grown by 25-30 percent in
India in the last year and could be worth US$ 175-200 billion by 2016.
The Indian retail sector is at inflexion point where the growth of organized
retailing in growth consumption by the Indian population is going to take a higher

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growth trajectory . The Indian population is witnessing a significant changing its


demographics.

Retail in India picked up in the 1980s, when the country started to open its
economy. Today, the Indian retail industry is evolving at a fast pace. Potential
Goldmine-India ranks first in the 2005 Global Retail Development Index (GRDI)
released by AT Kearney, and is rated the fifth most attractive emerging retail
market.

 At Kearny has projected India’s total retail market to growth at a


compounded 30 percent over the next five years.
 With the organized retail segment growing at 25-30 percent p.a., revenues
may triple from the current US$ 7.7 billion to US$ 24 billion by 2010.
 The share of modern retail is likely to grow from its current & 2 percent to
15-20 percent over the next decade, analysts feel. No wonder a
heavyweight like reliance is planning to do a Wal-Mart in India.
 In the next few years, India will see at least two domestic retail businesses
attain the magic figure of US$ 218 million in sales.
 Wal-Mart is moving a senior official from its headquarters (US),to head its
market research and business development function pertaining to its retail
plans in India.
 Mukesh Ambani has announced a separate company, Reliance Retail
Limited, which would be 100 percent owned and would invest Rs. 25000
crore in the retail business over the years. Stores will be set up in phase
and around 1600 stores will be placed by 2010.

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2.2.3 Retail Philosophy:-

“By the people, for the people and of the people.”


Retailing involves selling products and services to consumer for their individual
or family use. As the final link between consumer and manufacturers, Retailers
are a vital part of the business world. Retailers add value to products by making it
easier for manufactures to sell and consumers to buy.

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2.2.4 Revenue And Growth Source

The total revenue in the telecom service sector was 86,720 crore (US$19.3
billion) in 2005-06 as against 71,674 crore (US$16 billion) in 2004-2005,
registering a growth of 21%.estimted revenue of FY'2011 is Rs.835 crore (US$ 19
Bn Approx).The total investment in the telecom services sector reached
200,660 crore (US$44.7 billion) in 2005-06, up from 178,831 crore
(US$39.9 billion) in the previous fiscal.[25] Telecommunication is the lifeline of
the rapidly growing Information Technology industry. Internet subscriber base
has risen to more than a 100 million in 2010.[26] Out of this 11.47 million were
broadband connections.[5] More than a billion people use the Internet globally.
Under the Bharat Nirman Programme, the Government of India will ensure that
66,822 revenue villages in the country, which have not yet been provided with a
Village Public Telephone (VPT), will be connected. However doubts have been
raised about what it would mean for the poor in the country.[27]

The Total Revenue of Indian Telecom Services company is likely to exceed Rs


4.6 lakh Cr for FY 15-16 based on FY 14-15 nos and latest quarterly results.
These are consolidated nos including foreign operation of Bharti Airtel. The
major contributions to this revenue are as follows: Bharti Airtel 65,060 Reliance
Comm 31,468 Idea Cellular 16,936 Tata Comm 11,931 MTNL 4,380 TTML
2,248 BSNL 32,045 Voda 18,376 TataTeleservice 9,200 Aircel 7,968 SSTL 600
Uninor 660 Loop 560 Stel 60 HFCL 204 Videocon Telecom 254 DB Etisalat/
Allianz 47 Grand Total Rs 201,997 Crs contributed by Sanjay Banka, FCAOn
landlines, intra-circle calls are considered local calls while inter-circle are
considered long distance calls.

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For long distance calls, the area code prefixed with a zero is dialed first which is
then followed by the number (i.e. To call Delhi, 011 would be dialed first
followed by the phone number). For international calls, "00" must be dialed first
followed by the country code, area code and local phone number. The country
code for India is 91.

Telephone Subscribers (Wireless and Landline): 885.99 million (June 2011)

Land Lines: 34.29 million (June 2011)

Cell phones: 851.70 million (June 2011)

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2.2.5 Concept Of Consumer Buying Preference

Meaning Of Consumer Buying Behavior

It is never simple to understand consumer behavior. Consumer may save one


thing and do another. They may not be in touch with their deeper motivation.
They may responds to influence that their mind has at the last minutes. The
starting point for understanding buyer behavior is stimulus responds model.

The Buyer’s characteristics and decision process lead to certain decision. The
marketer’s task is to understand what happen in buyer consciousness between the
arrival of outside stimuli and buyer purchase decision.

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2.2.6 Consumer Buying Decision Process

Problem Recognition:-

Buying process starts when the buyer recognizes his problem or need. The need
can be figured by internal or external stimuli. Internal stimuli can be hunger, thirst
etc. rises to a they’re sold level and becomes a drive. In letter case a need is
aroused by external stimulus e.g. A person passing from a bakery and sees freshly
baked bread that stimulates his hunger.
Marketer need to identify the circumstances that trigger a particular need by
gathering information from number of customer, marketer can identify the most
frequent stimuli that can invoke an interest in a product category.

Information Search

Aroused consumer will be inclined to search for more information. We can


distinguish between two levels of arousal. The milder search state is called
heightened attentions. At this level a person’s simply become more receptive to
information about product. At the next level a person may enter active
information search looking for reading material, phoning friends and visiting
stores to learn about the product.

Marketers are interested in knowing the major information sources to which the
consumer will turn and the influence of those source on purchase decision.
Information sources fall in to four groups:-
 Personal Sources:- Family, friend and neighbor.
 Commercial Sources:- Advertising, sales persons, dealers and Display.
 Public Sources:- Mass media.

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 Experiential Sources:-Handling, examine and using the product. The


relative amount and influence of these information sources vary with the
product category and buyer characteristics.
Generally, Most of the information receive by consumer is from commercial
source.

Evaluation of alternatives

There is no single evaluation process use by all consumers or by, one consumer in
all buying situation. There are several decision evaluation processes and most
current model of which is the cognitively oriented process i.e. judgments are
largely bases on conscious and rational cases.
Some basic concept will help us to understand consumer evaluation process.

 Consumer is try to satisfy need.


 Consumer is looking for certain benefit from the product solution.
 Consumer sees each product as a bundle of attribute with varying abilities
or delivering the benefit sought to satisfy this needs.

Attribute varied by product.


Example:-
Cameras:-
- Picture sharpness,
- Size of cameras
- Price.
Computer:-
- Size & weight,
- Graphic capability,
- Price.
Consumer varying which product is attribute they see as most relevant and
impotents they attach to each attributes. They will pay most attentions to
attributes that delivers the short benefits.
The consumer develops set of brand believes about where each brand stand on
each attribute. The set of beliefs about the brand make up the brand image will

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vary with his or her experience in the past. The consumer arises at attribute
towards the various brands through an attribute evaluation procedure for
attributes:-
- Memory capacity
- Graphics capability
- Size & price

Attribute/ Memory Graphic Size Price Total


Brands Capacity Capacity
A
B

Purchase Decision

In the evaluation stage the consumer firm’s preference among the brands in
choice set. The consumer may also form an intension to buy the most preferred
brand. However two factors can interview between the purchase decisions.

(1) Attitude of
Evaluation Purchase Purchase
Others
Of Intension Decision
(2)Unanticipated
Alternatives
Situational Factors

The first factor is the attitude of other. The extended to which another person
attitude reduce one’s preferred alternative depends on two things:-
I. The intensity of other person’s negative attitude toward the
consumers preferred alternative.
II. The consumer motivation complied with the other person’s wishes.

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The second factor is unanticipated situational factor. That may


change the purchase intension. e.g. Other purchase might become more urgent or
store sales person make turn him off.

A consumer’s decision to modify, postponed or avoid a purchase decision is


heavily influence by perceive risk. The amount of perceive risked varies with the
amount of money at stack, the amount of attribute uncertainty and amount of
consumers self confidence.

Marketer must understand the factors that provoke a feeling of risk in consumer
and provide information and support to reduce the perceived risk.

Post Purchase Behavior

After purchasing the product the consumer will experience some level of
satisfaction or dissatisfaction. The marketer’s task does not come to an end when
product is brought. He should monitor:-
a. Post Purchase Satisfaction,
b. Post Purchase Action,
c. Post Purchase Use & Disposal.

(a) Post Purchase Satisfaction:-

The buyer’s satisfaction is a function of the closeness between the buyer


expectation & the product perceived performance. If the performance falls short
of expectation, the customer disappointed. If it is exceeding expectation the
customer delight, these feelings may are differences in whether the customer buys
the product again and talks too favorably about the product to the others.

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The Large the gap between expectation & performance, the greater the
consumer’s satisfaction.
Post Purchase Action:-

The consumer satisfaction or dissatisfaction with the product will influence


subsequent behavior. If the consumer is satisfy, he or she will exhibit a higher
profitability of purchasing again. The satisfy customer will also tend to say good
things about the brand to the others. And we know that best advertising is
“WORD OF MOUTH” by satisfy customers.

Dissatisfy may abandon or return the product. They may take public action by
complaining to the company, going to a layer or complaining to private or
government agencies. Private action includes making decision to stock, buying a
product or warning friends.
Post purchase communication buyer s have been shown to result in fewer product
return and order cancellation.

Post Purchase Use & Disposal:-


Marketer should also monitor how buyer use & dispose of product. If consumers
store the product in closest, the product is probably not being strong. Consumer
may also find new uses of a product. If consumers throw the product away,
marketer need to know why they are doing so. Specially if it can harm the
environment.

[1]. Social Factor:-

Social factors are reference group, family and role and statuses.

1) Reference Group:-

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A person’s reference group consists of all the groups that have a direct or indirect
influence on the person’s attitude & behavior. Group having direct influence on a
person are called membership groups. Some membership groups are primary
groups such as family, friends, neighbors and co-workers with whom the person
interact fairly, continuously and informally.
People also belong to secondary group such as religions, professional, trade union
group which tend to be more formal and require less continuous interaction.
People are significantly influence by their reference group in three ways:
o Reference group expose an individual to new behavior and
lifestyle.
o They influence attitudes and self concepts. They create pressure for
conformity that may affect actually product and brand choice.

2) Family:-

The family is the most important to consumer buying behavior in the society. We
can distribute family in the buyer’s life:-

a) Family of orientation:-
It consists of one’s parents and siblings. From parents, a person acquires an
orientation towards religion, politics and sense of personal ambition.
b) Family of procreation:-
Where person live with spouse and children, marketer are interested in the roles
and relative influence of the husband, wife and the children in the purchase of
large variety of product & services. This role vary widely in different countries
and social classes. Marketers need to determine which member normally has the
greater influence in choosing product.

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[2] Role & Status:-

A person participates in many group- family, club, organizations etc. The person
position in each group can be defined in terms of role and the status. Role consists
of activities that a person is expected to person and each role carried a status.
People choose product that communicate their role & status in society. Marketers
should be aware of status symbol potential of product and brands.

[3] Personal Factors:-

A buyer decisions are also influenced by personal characteristics. These include


buyer age and stage in the life cycle occupation, economy circumstances, lifestyle
and personality and self concept.
a) Age & stage in life cycle:-

People buy different goods and services over a life time. They eat baby food in
the earlier, most foods in the growing and maturity and special diet in the later
years. Test in the clothes, furniture and recreation id also age related.
The consumption is set by the family life cycle. Nine stages of family life cycle:-

I. Bachelor Stage:-
young, single, not living at home. At this stage few financial burdens, fashion
opinion leader. Recreation oriented. They buy basic home equipment, furniture,
car and vacation.

II. New married couples:-

young, no children. Highest purchasing rate and highest average purchase of


durable, car appliances, furniture, vacations.

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B) Occupation & Economic Circumstances:-

Occupation also influence a person’s consumption pattern, blue collar worker will
buy work clothes, work shoes and lunch boxes. A company president will buy
expensive suit, air-travel, country club membership, so here marketer should try
to identify the occupation group.

C)Life Style:-

People from the same subculture, social class and occupation may lead quite
different life styles.

A life style is the “person’s pattern of living” in the world which is expressed in
activities, interest and opinions. Lifestyle portrays the “whole person” interacting
with his or her environment. Marketer search for relationship between their
product and life style groups.

D)Personality and self-concept:-

Each person has distinct personality that influence buying behavior.


Personality means distinguishing psychological characteristic that leads to
relatively consistent responses to the environment. Personality is usually
described in terms of such traits as self confidence, dominance, sociability,
defensiveness and adoptability. Personality types can be useful variable in
analyzing consumer behavior provided that personality type can be classified
accurately and there has to be a strong co-relation between certain personality
type and product and brand choices.
Related to personality is self concept. Marketers try to develop, brand image that
matched the target market self image.

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[4] Psychological Factor:-

Person’s choice is influenced by certain major psychological factors:-

a) Motivation:-

A person has many needs at any giving point of time. Some need are biogenic,
they arise from physiological stages of tension such as hunger, thirst and
discomfort. Other’s needs are psychogenic they arise from psychological states of
tension such as need for recognition, esteem, or belongings. A motive is a need
that is sufficiently driving the person to act.

There of the best known theory Herzberg. Maslow & Sigmund Froid carries quite
different implication for consumer analysis and marketing strategy.
b)Learning:-

When people act they learn something. Learning involves changes in the
individual’s behavior arising from experience. Learning is produced through the
interplay of drives stimuli, responses and reinforcement.

A drive is a strong internal stimulus which impels actions.

c)Belief and Attitudes:-

A belief is a descriptive though that a person holds about something. Belief may
be based on knowledge, opinion and faith. e.g. Our perception about Chinese
products are cheap, Japanese products are innovative.
An attitude is person’s enduring favorable or unfavorable evaluation, emotional
feelings and actions tendency towards some object or idea.

People have attitudes towards almost everything religion, politics, cloths, music,
food etc. Attitude put them into a frame of mind of liking & disliking an object.
Attitude leads people to behave in a consistent way towards similar objects

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2.2.7 Determinants Of Consumer Buying Behavior

A marketer is always interested to know how consumer respond to various


marketing stimuli 4P’s & other stimuli i.e. buyer’s environment i.e. economical,
technological, political. The marketer studies the relationship between marketing
stimuli and consumer response. These stimuli pass through buyer’s box which
produce the buyer’s responses and is shown below:-

Market Other
Product Economical
Price Technological
Place Political
Promotion Cultural

Buyer’s Response
Product Choice
Brand Choice
Dealer Choice
Purchase Timing
Purchase Amount

Buyer Black Box


Buyer Buyer
Characteristic Decision

The buyer is considering as a black box, because his mind cannot be imagined as
to his buying decision. The buying decision depends on his attitude, preference,
feeling etc.

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Factors influencing the consumer behavior are internal needs, motives, perception
& attitude as well as external family, social group, culture economies, business
influences etc. These influences are shown below:-

The study of the buyer behavior is essential to understand what marketing is. The
success or failure in market depends upon the individual’s relations, expressed in
the form of buying pattern.

2.3 Literature Review

2.3.1. The prime objective of the study was to understand the variation in the
importance given by different age and gender groups to the select factors while
buying mobile handsets in India. The study concludes that the mobile handset

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

users of age group of 18-30 years are less price sensitive than consumers of other
groups; rather they consider ‘physical appearance’, ‘brand’, ‘value added
features’, and ‘core technical features’ more important than users of any other age
groups. On the contrary, the consumers of age group 50 years and above have
given greater importance to ‘price’ than consumers of other age groups. There
were significant differences between different age groups as regards to the
importance given to all the factors except ‘post - purchase services’. The
difference was highest for the ‘brand’ closely followed by ‘core technical
features’ of the handset. Gender differences have also existed for these factors.
Keywords: Buying behavior, Mobile handsets, Age groups, Gender groups,
Factors, GSM

Mobile Handset Buying Behavior of Different Age and Gender Groups


Jagwinder Singh (Corresponding author)

2.3.2.In recent years, the adoption of mobile phones has been rapid so fast not
only in India but also in the whole world. Owning a mobile phone was considered
a luxury in India till the late 1990’s.However with the reduction in service charges
& the cost of handsets the number of mobile users in India soon increased. Mobile
phones have become a need than a fashion accessory. The aim of the study is to

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

investigate & understand the behavior of consumers of mobile phones in


Ludhiana district & the Sangrur District. And further capture their satisfaction
level that is influenced by various technical & non technical factors. The study
indicates that while price & features are the most influential factors affecting the
purchase of a new mobile phone, its price, audibility, network accessibility, are
also regarded as the most important in the choice of the mobile phones. The prime
objective of the study is to understand the difference in the importance given by
different gender groups to the selected factors while buying mobile handsets. The
study concludes 57% of male has given importance to Quality of mobiles
followed by price, features, Brand & style of mobiles.

ASIAN JOURNAL OF MANAGEMENT RESEARCH


Online Open Access publishing platform for Management Research
© Copyright 2010 All rights reserved Integrated Publishing association
Short Communication ISSN 2229 – 3795
ASIAN JOURNAL OF MANAGEMENT RESEARCH 594
Mobile Phone Usage Patterns among Indian consumer – An Exploratory Study
Sheetal Singla
Assistant Professor, Department of Business Studies, Bhai Gurdas Institute of
Engineering& Technology, Sangrur
sheetalsingla@yahoo.com

A study on market potentials of new entrants of mobile handsets in Mumbai.

Abstract

31
A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

2.3.3. This document is the result of an academic study and a market survey
conducted with an attempt to analyze and understand the present dynamics of
Indian Telecommunication Industry with special focus and emphasis on the new
features of mobile telecom handsets.. In this study we attempt to look at the most
demanded features of the handsets in Kolkata market, which influence the
purchase decision of buyers and their impact thereof and also tried to hypothesize
future trends for new entrants in the same market segment with a specific price
bands.

Prof .Asok Kr.Banerjee & Prof.Oindrila Chakraborty


IEMCON 2011 ORGANISED BY IEM IN COLLABORATION WITH IEEE ON
5th AND 6th JANUARY.

2.3.4. Pan and Zinkhan (2006) studied the consumer store patronage and store
choice in the retailing literature. These studies suggest that several attributes
affect consumer’s preferences and expectations of retail stores, such assortment,
service, product quality, store atmosphere, store location, price level, checkout
speed, hours of operation, friendliness of salespeople, and parking facilities.
When choice is unconstrained consumers will enact their purchase preferences
and buy only their preferred products (East, 1990).

2.3.5 Shendge, (2012) states that Preference (or "taste") is a concept, used in the
social sciences, particularly economics. It assumes a real or imagined "choice"
between alternatives and the possibility of rank ordering of these alternatives,
based on happiness, satisfaction, gratification, enjoyment, utility they provide.
More generally, it can be seen as a source of motivation. In cognitive sciences,

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

individual preferences enable choice of objectives/goals. Virmani R. T., (2011)


stated the reasons for preference of the brands ranged from quality to availability.
But it was quality that was ranked as the No. 1 parameter for brand preference.
Most of the consumers reported that they do get carried away by advertisements
sometimes but in the end it is the quality of the product that is a decisive factor for
purchase. Sanjeev Verma (2007) studied consumer preferences for retail store
selection in Mumbai. The study was undertaken to understand the factors
affecting consumer preferences for retail store selection and developing marketing
strategies towards meeting the needs and wants of consumers. This study
examines the linkage between consumer preferences and the importance of some
salient store attributes.

Chapter Three: Research Methodology

3.1 Problem Identification

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

Problem is to identify what is the scope of retail mobile market in Mumbai and
how to increase the market share which fulfills the customer satisfaction as per
customer preference for starting a new retail chain in Mumbai.

To know about the customer preference level associated with different mobile
phones. To find out the customer satisfaction towards the various mobile phones.
Major features, which a customer looks for in a mobile before making a purchase

3.2 Identifying A Problem

It will provide us to know what are basis on which a customer chooses a


particular brand when he/she purchases a new handset. The research will also

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

bring to light what all factors a customer considers at the time of purchase of a
new mobile phone. It will provide basically understanding the brand preference of
customer in Mumbai with regard to mobile phones

The following devices and techniques can become the effective ways of finding
problem:-

i. Study the records & reports of the retail mobile market

ii. Carefully observation of condition of the retail customers

iii. Careful observation and the study of the procedure and technique of the
best, efficient and successful firm in the industry.

iv. Reading of the pertinent published materials.

v. Use of the check list in evaluating the operation of the retail firms

vi. Brain storming intensified discussion with the group of intensified


persons.

vii. Understanding a customer buying preference basis of parameters

3.3 Research Methodology

Research Design: Research design is the blueprint for collection, measurement &
analysis of data. It is the specification of methods and procedures for acquiring
the information needed.
Type: The research associated to my project is Exploratory Research.

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

Research Instrument: I have used the Questionnaire Method.


Primary Data: A questionnaire was formulated and administered among 50
Customers. The data for this report is collected afresh and for the first time by me
thus falling under the Primary Data category.
Sample Design: Population is the predefined set of potential respondents in a
geographical area (or) it is the aggregate of all the elements sharing some
common set of characteristics that compromise the universe for the purpose of the
research problem.
Sample Size: I have collected 30 out of 50 samples for preparing this report.
Sampling Unit: In my report customer is the sampling unit.
Sampling Frame: It is the list of blocks and locations or city/map or location of
all the sampling units.
Sampling method: Refers how sampling units are selected. I have selected the
convenient sampling under non-probability method for this report. The
information has been collected from the most accessible population based on the
convenience.
Statistical Tools: I have used the Simple percentage method = No. of respondents
/ Total no. of respondents (30) x 50.

CHAPTER FOUR : DATA DESCRIPTION AND ANALYSIS

4.1 Data analysis& Interpretation Charts& Graphs

Analysis Of Demographic Information

1) Gender wise Analysis

 Male
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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

 Female

  Age Group
Gender 18-35 years 35-60 Years 60 and above Grand total
Female 07 04 02 13
Male 08 06 03 17
Grand Total 15 10 05 30

Gender

Male
44% Female

56%

*source: Complied by Survey


The above analysis shows about gender based respondents in survey 44% are
female & 56% are male.

2) Age Group wise Analysis

 16-25 Years
 25-35 Years
 35-45 Years
 45Years and Above

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A Study on customer preference of various retail outlet with reference
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Age

14%

26%
16-25 years

25-35 years
35-45 years

45 and above
34%

26%

*source: Complied by Survey

The above analysis shows about age wise analysis of respondents i.16 to 25
Years shows 26 % followed by 25-35 with 26% & 35-45 years 34% and 45
years and above 14%.

3) Educational Background wise Analysis

o Below 10th
o 12th ,
o Graduated ,
o Post Graduated

Educational Background Total


Below 10th 04

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

12th 08
Graduated 10
Post Graduated 08
Grand Total 30

Education

14%

26%

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
26%

34%

*source: Complied by Survey


The above graph shows about educational background 1 reflect 34% are
graduated followed by Post Graduated with 26% .26% are 12 th& 14% are below
10th.
4) Occupation wise Analysis

 Salaried
 Self Employee
 Students
 Others

Occupation Total
Salaried 09
Self Employee 04
Students 12
Other 05

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

Grand Total 30

Occupation

17%

30%
Salaried
Self Employee
Student
Other

40% 13%

source: Complied by Survey


Above graph shows of occupation wise analysis of respondents i.e. salaried
30% & self employed 13% .The graph reflects 40% students & others are
17%.
5) Income Range wise Analysis

1.1. 10,000 - 15,000 per month


1.2. 15,000 – 20,000 per month
1.3. 20,000 and above

Income Range Total


10,000 – 15,000 10
15,000 – 20,000 13
20,000& above 07

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

Grand Total 30

Income Range

23%

33%
10,000-15,000
15,000-20,000
20,000 and above

44%

source: Complied by Survey


From the above diagram shows 33% shows income group between Rs10,000-
Rs15,000 p.a & Rs 15,000- 20,000 p.a with 44% & 20,000 & above with
23%.p.a.

Analysis Of Customer Behavioral Information

6) Do you have Mobile Phone? Wise Analysis

 YES
 NO

Do you have Mobile Phones Total


YES 30
Grand Total 30

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

*source: Complied by Survey

Above table shows all respondents have mobile phone.

7) Which Company Mobile phone do you have?

1.1. NOKIA
1.2. OPPO
1.3. SAMSUNG
1.4. Others

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

Mobile Phone

16% 16%

Nokia
Oppo
Samsung
Other
24%

44%

source: Complied by Survey

The above diagram shows Nokia have 16% with followed by Other 16% and
Samsung 24%. Oppo with 44% covered in graph.

8) In what price you want to buy a mobile phone


 Below Rs 10,000
 Rs10,000 to Rs15,000
 Rs15,000 to Rs20,000
 Rs20000 & Above

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

In what price you want to buy a mobile phone Total


0- 10,000 05
10,000 – 15,000 13
15,000 – 20,000 06
20000 & above 06
Grand Total 30

Price

16%
20%

0-10,000
10,000-15,000
15,000-20,000
20,000 and above

20%

44%

source: Complied by Survey

The above diagram shows about in what price you want to buy a mobile phone
16% respondents want mobile phone below 10,000. 44% comes under 10000-
15000 range . 20% comes under 15,000-20,000. 20% respondents want to buy
above 20000.

9) How much satisfied you are with the functionalities of your phone

 Fully Satisfied
 Average Satisfied
 Not Satisfied

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

How much satisfied you are with the functionalities of your phone Total
Average Satisfied 17
Fully Satisfied 11
Not Satisfied 02
Grand Total 30

Functionalities satisfied
6%

Average satisfied
full satisfied
not satisfied
37%

57%

The above table shows about satisfaction of respondents with functionality of


phone 37% are fully satisfied & 57 % are average satisfied. Only 6% are not
satisfied.

10) Which Company Mobile phone you want to purchase?

Which Company Mobile phone you want to Total


purchase
Mi 07

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

Samsung 10
Oppo 09
Other 04
Grand Total 30

Want to Purchase

13% 23%

Mi
Samsung
Oppo
30% Other

34%

With an above bar graph we can see that maximum respondents want to buy
Samsung and followed by Oppo with 30% respondents and rest market
share.

11) Why selection of Brand

 Brand Name
 Quality
 Prices
 Service
 Others _ Please Specify ……………

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

Why selection of Brand Total


Brand Name 13
Quality 07
Price 06
Service 02
Other(value for money ) 02
Grand Total 30

selection of Brand
6%
6%

20% 44%

24%

With above table maximum respondents buy based on Brand name


followed by Quality Price & Services.

12) Analysis of consumer purchasing place of that mobile phone (Retail outlet)
 The Mobile Store
 Top 10
 Vijay Sales
 Others _ Please Specify …………….

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A Study on customer preference of various retail outlet with reference
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Analysis of consumer purchasing place of that mobile phone


( Retail outlet) Total
The mobile store 09
Top 10 12
Vijay Sales 06
other 03
Grand Total 30

Retail Outlets
10%

The mobile store


30%

20% Top 10

Vijay Sales

other

40%

The above graph shows about 30 % respondents want to buy from the mobile
store. 20% from Vijay sales. Maximum that is 40 % respondents want to buy from
Top 10 and divided 10 % with locality retail mobile showrooms.
13) Analysis of reason for purchasing from any retail outlet.
 Reference from friends/Family
 Competitive price
 Number of product option at retail outlet
 Quality of Service & promotional schemes
 Others _ Please Specify

Analysis of reason for purchasing from any retail outlet. Total

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

Reference from friends\family 14


Competitive price 07
Number of product option at retail outlet 03
Quality of Service & promotional schemes
04
Other 02
Grand Total 30

Analysis reason for purchase


7%

13%

47%
10%

23%

With above graph 47% of respondents want to buy with reference from friends &
family .23% respondents wants to buy on basis of competitive price .13% on basis
of quality & promotional scheme .10% with number of product option at retail
showrooms & 7% believe me others.
14) Analysis of Awareness on retail mobile stores

 Good services
 Discount Scheme
 After Sales Service
 Finance Scheme
 Others _ Please Specify

Analysis of Awareness on retail mobile stores Total


Good Service 08

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

Discount Scheme 05
After sales service 04
Finance Scheme 12
Other 01
Grand Total 30

Awareness on retail store


4%

26%
Good Service
Discount Scheme
After Sales Service
40% Finance scheme
Other

16%

14%

Maximum respondents come under category with Finance Scheme. Good Service
26% & after sales service .Discount scheme shares 16 % & others share 4%.

Chapter Five: Summary Conclusions

5.1 Data Findings

 With the above study covers maximum respondents comes under age group of
18 years to 40 years with 83% of contribution.

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

 In survey 34% respondents are graduated & 26% are post graduated
respondents. No Illiterate found during survey.

 44% comes under category that prefers to buy Oppo.

 Out of 30 respondents 06 respondents wants to buy more then price range of


Rs.10000, Rs.20000.

 In Mumbai 44%Mobile phone market is shared by Oppo &24% by Samsung


but with the survey shows now customers are also prefers others brands in
Mumbai.

 Customer is more concerted about price, Quality & brand name before buying
a mobile handset

 Customer prefer to purchase from branded mobile store who keeps


maximum product as an option & branded electrical shops, 40% customers
prefers to buy from “Top 101” &The mobile store of 30%.

 Customer reason for purchasing from retail store are Good Services &Finance
scheme combines with 26% & 40% buy on after sale service.

 47% of customer preference to buy from easily accessible retail outlet in there
locality & Reference from friend & family & competitive prices.

 In today’s competitive market 26% of customers are aware about the retails
service provided by retailer & 16% of discount services.

5.2 Conclusions
Telecommunication is the lifeline of the rapidly growing Information
Technology industry. The Mobile phone industry is a growing industry in
India. The research was conducted in Mumbai to start a base for sales and
marketing strategies for the chain of Mobile retail store. In Mumbai, there are

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

a healthy competition for mobile handset market sales and consumer


preference for mobile phone brands. The Indian telecom sector is a growing
industry, catering to the customer needs and satisfaction. The market is
continuously bombarded with new innovative products that impact market
The innovation of new mobile handsets has taken place and the numbers of
subscribers in Indian cities are increasing by the given day,& expected
growth in sector in retail industry. With growing popularity of urbanization &
innovative products with quality at all parameters customer view towards the
mobile handset has changed a lot.
A large young working population with median age of 24 years, nuclear
families in urban area, along with increasing working woman population &
emerging opportunity in the service sector are going to be the key growth
drivers of the organized retail sector in India.The study reflects about the
customer preference before buying a mobile phone from a retail shop in
Mumbai. The study covers the mobile phone products & the retail shops
requirement to attract customers. The study shows customer prefers to buy a
good branded mobile phone in spite of the income group they falls. The
major advertising impacts to buy a mobile phone advertising impact are
television & internet/web.In current global world quality at pace service with
reasonable price are key for business strategies. Understanding requirement
of customer before & after buying a mobile handsets. The study will reveal
the planning requirement for an organization. Our customer our diverse from
student, salaried, self employed, professionals, housewife’s & others with
different parameters to understand there prerequisite before buying a mobile
handsets. The things which plays a vital role in decision making of consumer.

5.3 Recommendations

 Try to maintain an updated stock of mobile phones with multiple options


as the customer has to get the product when they arrive at the store.

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

 Customers are more prices conscious rather than feature conscious, so


they should require moderate price options.

 A Retail strategy should try to put more emphasis on the promotion by


taking up more exercises on the Internet/Web advertisement front and try
to create more awareness among people about their services.

 The retail strategy has to provide the multiple attractive schemesto attract
the customer towards store by providing. Some of the schemes could
include free repair and servicing scheme of mobile instrument for few
days. The companies should try to provide exchange offer of the mobile
phone.

 In today’s competitive market retail strategy should analyze the strategies


of other retail stores before making our strategy.

BIBLIOGRAPHY

BOOKS:-

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

Philip Kotler & Kevin Lane Keller “Marketing management” 2009


Edition By “ PEARSON EDUCATION INC ,Publishing as Prentice
hall ,one lake street ,new jersey. Delhi.

Websites:-

http://www.scribd.com/
http://mobileinindia.in/
http://en.wikipedia.org/wiki/Communications_in_India
http://en.wikipedia.org/wiki/Mobile_handset
http://en.wikipedia.org/wiki/Telecommunication

Annexure

Questionnaire

1. Gender wise Analysis

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

A. Male
B. Female

2. Age Group wise Analysis

A. 16-25 Years
B. 25-35 Year
C. 35-45 Years
D. 45Years and Above

3. Educational Background wise Analysis?

A. Below 10th
B. 12th ,
C. Graduated ,
D. Post Graduated

4. Occupation wise Analysis?

A. Salaried
B. Self Employee
C. Students

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

D. Others

5. Income Range wise Analysis?

A. 10,000 - 15,000 per month


B. 15,000 – 20,000 per month
C. 20,000 and above

Analysis Of Customer Behavioral Information

6. Do you have Mobile Phone? Wise Analysis

A. YES
B. NO

7. Which Company Mobile phone do you have?

A. NOKIA
B. OPPO
C. SAMSUNG
D. Others

8. In what price you want to buy a mobile phone?

A. Below Rs 10,000
B. Rs10,000 to Rs15,000
C. Rs15,000 to Rs20,000

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

D. Rs20000 & Above

9. How much satisfied you are with the functionalities of your phone

A. Fully Satisfied
B. Average Satisfied
C. Not Satisfied

10. Which Company Mobile phone you want to purchase?

A. Mi
B. Samsung
C. Oppo
D. Other

11. Why selection of Brand?

A. Brand Name
B. Quality
C. Prices
D. Service
E. Others _ Please Specify ……………

12. Analysis of consumer purchasing place of that mobile phone (Retail outlet)?
A. The Mobile Store
B. Top 10
C. Vijay Sales
D. Others _ Please Specify …………….

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A Study on customer preference of various retail outlet with reference
to mobile phone in Mumbai

13. Analysis of reason for purchasing from any retail outlet.

A. Reference from friends/Family


B. Competitive price
C. Number of product option at retail outlet
D. Quality of Service & promotional schemes
E. Others _ Please Specify

14. Analysis of Awareness on retail mobile stores?

A. Good services
B. Discount Scheme
C. After Sales Service
D. Finance Scheme
E. Others _ Please Specify

58

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