CHAPTER – I

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION
Consumer behaviour has gained increased importance in a consumer

oriented marketing planning and management. The study of consumer

behaviour is an attempt to understand what the consumer’s want, why they

want. Consumer behaviour reflects the totality of consumer’s decisions with

respect to acquisition, consumption and disposition of goods, services, time

and idea by human decision making. It also includes whether, why, when,

where, how, how much and how often and how long consumer will use or

dispose an offering. The buying behaviour of consumer has become a great

necessity in modern marketing system, because success or failure ultimately

depends upon the buying behaviour of the target customers considered

individually or a group. Therefore in order to undertake the marketing

programmes among different segment markets, the marketing management

must find out the various factors that influences in buying decisions of the

consumer. The character, behaviour and attitude of consumer are the

important dimensions in the decision making process. The subject of buying

behaviour is relatively a new discipline of the study of marketing (Rajeswari

& Pirakatheeswari, 2014).

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1.2 MOBILE PHONE USAGE
Mobile phone was invented in 1979. In India it was introduced in

1994. But it becomes familiar only in the beginning of year 2000. Now cell

phone users are scattered all over the world. One fifth of Indians are using cell

phones. It is a very fast point to point communication. It helps one to send and

receive information anytime and anywhere. The effective and efficient usage

of cell phone largely depends upon the attitude of cell phone users and growth

of this communication sector depends on the cell phone service providers.

Cell phone users are facing many problems. Problems pertaining to buying a

cell phone, choosing an activation card, tower problem, variety of schemes,

recharge coupons, roaming and optimum use of cell phone facilities are some

of the vital issues of the cell phone users. Cell phone plays a predominant

role in the modern life because cell phones are used by all levels of people.

Today the number of cell phone users is greater than number of telephone

users (Mahendran, Alagu, Mohammed, & Upnish, 2012).

1.3 CONSUMER BUYING BEHAVIOUR

The main aim of marketing is to meet and satisfy target customer’s

need and wants. Buyer behaviour refers to the people or organization conduct

activities and together with the impact of various influences on them towards

making decision on purchase of product and service in a market. The field of

consumer behaviour studies how individuals, groups and organization select,

buy, use and dispose of goods, service, ideas, or experience to satisfy their
needs and desires understanding consumer behavior and knowing customer

are never simple. The wealth of products and service produced in a country

make our economy strong. The behavior of human being during the purchase

is being termed as “Buyer Behaviour” (Mohankumar, 2014).

1.4 MOBILE PHONE COMMUNICATION IN INDIA

India has come in a close second in the sale of mobile phones in the

year 2006. China has led the race of mobile sales being the highest in the

world. In India however the GSM phones rule over the CDMA handsets.

Leading categories are Nokia, Samsung, and Sony while Reliance takes a

large size share in the corporate segment. Subscribers in India are basking in

the glory of the ever increasing number of subscriber patronage. They want to

be seen with better handsets as there is a quaint feeling that the mobile should

match the designation or just make a status statement with a smart and

expensive phone. Hence with such attitudes ruling the market, everyone wants

to stand out with the handset they own. Mobile Phones have a huge market in

the world and especially in India. The sharks in this system like Motorola,

Nokia, Samsung, Sony Ericsson, LG, Vodafone etc. continuously introduced

latest mobile phone models at regular intervals in order to keep the smaller

fishes aware of their superiority in the business (Sheetal, 2010).

1.4.1 RURAL COMMUNICATION IN INDIA

India’s largest mobile operator takes the lead to reach out to 65 Crores

Indians. Two of three villages ought to benefit 90% of India’s habitats –

covering 91% of national highways. In one of the largest and fastest ever

network roll out operations in the world, Reliance Infocom has embarked on

an ambitious expansion plan to reach out to 4.5 lakh villages by the end of

2006. The company’s 80,000 km of terabyte optic fiber cable network forms

the backbone of the country wide expansion. This will facilitate unlimited and

uninterrupted voice data video applications (Balram & Dorga, 2008).

1.4.2 PROFILE OF RURAL MARKET IN INDIA

All other places are satisfying the following criteria (“Minimum

population of 5000, at least 75 percent of male working population in non-

agricultural pursuit and density of population is at least 400 persons per

square kilometer”.) Therefore, an area that does not satisfy the criteria

specified above can be considered as a rural area (as there is no official

definition for an area which could be called as a rural area). We define rural

marketing as any marketing activity in which one dominant participant is

from a rural area (Chirag & Erda, 2008).

1.5 NEED AND IMPORTANCE OF THE STUDY

The present study aims to examine the buying behaviour of rural

counterparts towards the purchase of mobile phone. A study is needed to

assess the buying behaviour displayed by rural consumers with regard to

mobile phone. Furtherit will guide various mobile and applications

manufacturing companies about mobile modification required in present

marketing strategies applied for tapping rural markets and to decide, if

possible, and to what extent these strategies can be molded and applied

successfully to the rural markets. To achieve these objectives an attempt is

made to compare and analyze the factors (Price, Quality, Style, Functions,

Application and Brand) which act as motivators’ of rural people or consumers

in buying mobile phone.

1.6 PROFILE OF THE STUDY AREA

Coimbatore region is located at Western part of Tamilnadu. It consists

of seven districts namely Coimbatore, Tirupur, Erode, Salem, Dharmapuri,

Namakkal and Krishnagiri. Coimbatore is the third largest city in Tamilnadu

next to Chennai and Madurai. Coimbatore region consists of 4 corporations,

30 municipalities, 17 administrative zones and 280 zonal wards.

According to the Census (2011)1, the population of Coimbatore region

is 1,75,19,550 of which, male and female were 88,58,410 and 83,30,210

respectively. The density of population in Coimbatore region is 731 people

per sq.km. The average literacy rate is 75 percent.

Coimbatore region is well known for its Pump set manufacturing

Textile factories, Turmeric products, Silver anklets, Granites, Educational

Institutions, Health care, etc... Coimbatore region is having three important

manufacturing centers namely “Power Loom City” (Erode), “Knits capital”

(Tirupur) and “Mango city” (Salem). Coimbatore is called as “Manchester

of South India” where huge numbers of textile mills are located in this

1
http:// www.census2011.co.in/census/tamil+nadu.html, accessed on 12/09/2012.
region. Dharmapuri and Krishnagiri districts are rich with Horticultural

products and Granites.

1.7 STATEMENT OF THE PROBLEM

The rural Indian population is large and its growth rate is also high.

The purchasing of consumer goods in rural India is steadily growing at the

rate of 3–4% per annum. All the companies are targeting the consumers in

Rural India. Mobile phone companies are not exempted in this trend. The

mobile phone usage has become an essential service for rural people. The

awareness levels, the applications utilized by rural consumers and buying

factors are not clearly understood by the mobile phone sellers. In this aspect a

descriptive study had been undertaken to understand the buying behaviour of

rural consumers on mobile phone in Coimbatore region.

1.8 OBJECTIVES OF THE STUDY

i) To study the structure and growth of mobile industry in India.

ii) To study the awareness level of mobile phones and applications

among rural consumers in Coimbatore region.

iii) To identify the factors which influence the buying of mobile

phones among rural consumers.

iv) To analyze the behavioural aspects on various features of mobile

phones among rural consumers in Coimbatore region.

1.8.1 HYPOTHESES

The following hypotheses have been assumed in the study

1. There is no significant relationship between demographic variables and

buying behaviour.

2. There is no significant relationship between awareness level of mobile

phones and applications among rural consumers.

3. There is no significant relationship between behavioural aspects and

various features of mobile phones.

1.9 RESEACH METHODOLGY

1.9.1 Type of Research:
The present study is descriptive in nature as it just describes the

influence of mobile phone on the samples. The study directly examines the

individual usage of the mobile phone to determine if the elements found in

literature review apply, but to also discover if there are additional factors

which found the influence of mobile phone on their behaviour.

1.9.2 Study Area and Population:

The study area consists of Coimbatore region and the respondent

population is the rural consumers of mobile phones of this region.

1.9.3 Sample Design:

Sampling Technique:
Multi Stage Sampling Technique has been used in this study. In the

first stage the districts had been selected using Simple Random Sampling. In

the second stage the taluks had been selected using Simple Random
Sampling. In both of the selections Lottery Method was applied. In third

stage the respondents had been selected using Convenience Sampling.

Sample Size:
Among 7 districts, 4 districts had been selected. Out of 25 taluks, 12

taluks had been selected in these four districts. A total of 675 respondents had

been selected as Sample Size.

Sample Population and its Sample Size

Sl.No. Districts Taluks Rural Population Sample

2011 Size

1. Coimbatore Pollachi 321204 60

Sulur 129970 55
Mettupalayam 137184 52
2. Salem Mettur 235371 54
Omalur 392488 62
Sankari 131616 58
3. Dharmapuri Harur 202841 52
Pappireddipatti 207651 65
Pennagaram 204762 54
4. Krishnagiri Uthangarai 194502 57
Hosur 310161 55
Denkanikottai 307926 51
Total 12 27,75,676 675
(Source: Primary Data)

1.9.4 Period of the Study

The study has been conducted during (2015 to 2017). The researcher

has collected the relevant and conceptual reviews in the first 3 months. He has
taken 3 months to frame the research problem, objectives and hypothesis of

the study. The data collection tools and methodology have been framed in the

next 3 months. The pilot study and modification of questionnaire have been

made in another 3 months. The data collection was done in next 6 months.

After completion of data collection the tabulation and analysis have been

done for 3 months. The final draft and corrections of thesis have been carried

out in the last 3 months.

1.10 DATA COLLECTION

1.10.1 Primary Data:
The primary data were collected through well-structured questionnaire

from selected sample respondents of the rural consumer in Coimbatore

region. The questionnaire cum interview schedule method was used in

collecting data from the respondents.

1.10.2 Secondary Data:

Secondary Data were collected from Pervious Research Papers,

Journals, Magazines, Text Books, Websites and Dissertations.

1.10.3 Pilot Study:

After the formulation of the questionnaire pilot study was conducted. A

sample of fifty respondents from the population was selected. Based on the

Pilot Study feedback relevant modifications were done in the questionnaire.

Then the schedule cum questionnaire instrument was finalized.

1.11 SCOPE OF THE STUDY
The study provides the structure and growth of mobile phone industry

in India. An understanding on rural consumer buying behaviour on various

products will be brought through this study. Particularly the rural consumer

behaviour on buying mobile phones will be clearly understood. The factors to

influence the buying mobile phones will be available from the findings. The

rural areas of Coimbatore region and the buying behaviour of mobile phones

will help the organizations to decide and formulate strategies accordingly.

1.12 LIMITATIONS OF THE STUDY

1. The survey was limited to Coimbatore region

2. The sample was taken on the basis of convenience sampling;

therefore the short comings of the convenience sampling may also

be applicable in this study.

1.13 SCHEME OF CHAPTERS

The present empirical study has been dived into five chapters.
The First Chapter deals with the introduction include buying

behaviour and rural consumers in India, Need and Importance of the Study,

Statement of the Problem, Objectives of the Study, Methodology of the Study,

Period of the Study, Scope of the Study, Limitations of the Study and Scheme

of Chapters.

The Second Chapter deals with review of related concepts and the

existing literature on this research topic. This chapter also deals with the
various empirical studies of various authors. It will be useful to have a

comprehensive understanding of the research topic under discussion.

The Third Chapter briefly presents profile of the study area of this

research, such as the profile of Coimbatore and aspects of mobile phone

sector and profile of mobile phone industry.

The Fourth Chapter provides the analysis and interpretation of the

study. In this chapter the collected data from the respondents were statistically

analyzed and presented in the form tables and bar charts.

The Fifth Chapter includes findings, suggestions and conclusion for

improving buying behaviour on mobile phones among rural consumers as

well as recommendations for future studies.