MB20MM01 CONSUMER BEHAVIOUR

MINI PROJECT

NAME & REG.No. :

B. SHREYA (RA2052001040092)
THEODER JACKSON. A (RA2052001040115)
SURYA. S (RA2052001040077)
YEAR : II
SEMESTER :3
BATCH : 2020 – 2022
 FACTORS INFLUENCING CONSUMER BEHAVIOUR WHILE
PURCHASING SMARTPHONE

ABSTRACT

Consumer behaviour involves the psychological processes that consumers go through in

recognizing needs, finding ways to solve these needs, making purchase decisions (e.g., whether
to purchase a product and, if so, which brand and where), interpret information, make plans,
and implement these plans. Consumers often buy products not because of their attributes but
rather because of the ultimate benefits that these attributes provide, in turn leading to the
satisfaction of ultimate values. A market comes into existence because it fulfils the needs of
the consumer. Consumer behaviour is a complex, dynamic, multidimensional process, and all
marketing decisions are based on assumptions about consumer behaviour. Models of consumer
behaviour play a key role in modern empirical Industrial Organization. This study basically
focuses on consumer behaviour while purchasing smart phones. The data required for study is
collected through a structural questionnaire. It includes opinion of customers on various aspects
of customer’s expectations and customer satisfaction also.

Keyword: Smartphone, Consumer Behaviour, Buying Decision.

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INTRODUCTION

Consumer behaviour is the study of consumers and the processes they use to choose, use
(consume), and dispose of products and services, including consumers’ emotional, mental, and
behavioural responses. Consumer behaviour incorporates ideas from several sciences including
psychology, biology, chemistry, and economics. In this research, we’ll take a look at the
different aspects and facets of consumer behaviour, and we’ll discuss the most effective types
of customer segmentation. Studying consumer behaviour is important because it helps
marketers understand what influences consumers’ buying decisions. By understanding how
consumers decide on a product, they can fill in the gap in the market and identify the products
that are needed and the products that are obsolete. Studying consumer behaviour also helps
marketers decide how to present their products in a way that generates a maximum impact on
consumers. Understanding consumer buying behaviour is the key secret to reaching and
engaging your clients and converting them to purchase.

SCOPE OF THE STUDY

This study shows how customers are planning, what are all the criteria they are looking for and
how they are being influenced while purchasing smart phone. This study helps us to identify
the mindset and as well the behaviour of the customer while purchasing smart phone.

OBJECTIVE OF THE STUDY

To examine the factors that influences consumer behaviour towards purchasing smartphones.

1. Analyze purchase behavior of consumers buying smartphone.

2. Study the perception of consumer using smartphone
3. To analyze the awareness level towards smartphone.
4. To study major features which a consumer looks for in a smartphone before making a
purchase.
5. To know about the consumer preference level associated with buying smartphone.

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REVIEW OF LITERATURE

A study on Customer Behaviour towards Purchasing Smart Phone and factors which are
affecting consumer in purchasing a smartphone, explain the importance of band influence on
consumer in smartphone industry.

Kushagra et al (2017), stated that the modern y generation customers who are young
and dynamic are very tech-savvy and adventurous as far as adaptability to a new product
is concerned. They give very much emphasis on the attributes of a mobile like camera quality,
processor speed for gaming, battery power etc.

Kaushal, SK and Kumar Rakesh (2016), conducted study of 159 students and young
professionals from city of Lucknow to find out presence of any significant difference
between factors like Compatibility, Product Features, Price, Brand, relative advantage,
dependency, social influence and convenience that affect consumer's (male or female) purchase
of Smartphone.

Azira, R. et al. (2015), examined factors influencing purchasing intention of Smartphone

among university students in Malaysia and deduced that “Three of four variables in study
namely product features, brand name, and social influence have a significant relationship with
product purchase intention and have positive correlation amongst them”.

Dr.Abdul Ghafoor Awan and Ms. Arooj Fatima(2014), This study included both male and
female respondents to show that how marketing strategies used by marketers in terms of service
quality, pricing, value offered, trust and switching cost affects the purchasing behaviour. Youth
is considered as the largest and important segment of customers which cannot be ignored by
cellular companies if they want to increase their profits.

Ibrahim, Kassim, &Mohamood (2013), have deduced that while purchasing mobile phones
the young customers in the society are more influenced by celebrity endorsement, frequency
of advertisement, discount offers, word of mouth publicity spread through friends, family
and relatives.

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Sharma et al. (2013), according to them now a day's advancement in mobile technology has
become a big challenge in the mobile market this study discusses different technologies used
with different mobiles in the market. 0G was the first generation with only analog feature i.e.,
only voice call was allowed and no data feature presents different generation of mobile. The
1G was little advance that allowed limited data feature with voice call. The 2G was little more
advance than the previous one with voice call, sms and cellular network features. The 3G
brought more advance features like streaming data, broadband and voice. The 4G added
advance features in the previous generation like highspeed broadband and high data rate. Along
with advancement in mobile technology, different operating systems were designed to support
these technologies. advancement in mobile technology, different operating systems were
designed to support these technologies.

Lynda Andrews, Judy Drennan, Rebekah Russell-Bennett, (2012), Examined that

customers' impression of the worth value they get from the ordinary day to day utilization of
smart phones and how portable advertising (m-promoting) can possibly improve these worth
recognitions. The discoveries feature approaches to tailor m-showcasing procedures to
supplement purchasers' view of the worth value offered through their smart phones.

Mokhlis, Yakkop (2012), when experimented buyers behaviour towards smart phones
in Malaysian University reached the resolution that seven components depict smart phone
buying behaviour – inventive and innovative highlighted features , picture quality, value for
money, durable , solidness and compatibility , media impact and post sales services. The most
significant among them was imaginative highlights followed by proposal and cost.

Osman et al (2012), in their investigation found that customers made buying decision based
on design availability and brand image.

Tiwaskar et al. (2012), according to them now a day's smart phones are a vital part of our life
and working like a laptop. This study describes the architecture of mobile computing and
comparison of various software factors of various mobile operating systems. New features of
android OS are also introduced.

Hawkins, Best and Coney (2004), considered that consumer behaviour is the study of why,
when, where, and how individuals, groups, or organizations and the processes they use to

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select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and
the impact that these processes have on the consumer and society. This definition is rather
broader than the traditional point of view, which indicates that consumer behaviour focuses on
only the circumstance before and after the buying behaviour. The broad sense would be helpful
for study elements that affect consumer behaviour, including elements from sociology,
psychology, and economics.

Chu-Mei Liu (2002), A good brand imaging is imperative to producers and all the
intermediaries of marketing process. High brand valued items have higher acceptability which
leads to high sales. The rapid growth of portable smartphone subscriptions is extensively
quicker in the Philippines. Now a day’s mobile phone manufactures and service providers are
collaborating with different advertising and promotions.

Pigato (2001), explored that the proliferation of mobile phones in an unexpected rate
in developing countries since the 1990s. Even poor and remotest countries from sub- Saharan
Africa and South Asia are also catching up rapidly in mobile access.

Kotler and Armstrong (2001), in their book have written that the main factors, which
discriminate from one customer to the other, are age, salary, perception and adaptation. This
demographical diversification leads the marketers to assess the impact of their products in the
mind of the customers and the customers are segmented accordingly.

Kaushal and Kumar (3), inferred that the consumers are using or want to purchase
Smartphone because their social circle is using it and hence they are also motivated and inspired
to use Smart phone.

Nagarkoti [2], found that customers pay huge money in smart phones for latest technology
and for brands.

Mohan [5], conducted a survey and his findings were Smartphone is just not only the want of
customer but a need. Moreover, consumer perceives brand image while purchasing smartphone
and few consumers in Indian market are brand loyal.

Liao [4], concluded that when buying a smartphone, a consumer sees the brand image more
than other factor such as design, integration of hardware and software, file transfer and display,
price of additional, purchase, price of the phone and camera.

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RESEARCH METHODOLOGY

Research Design:

This research studies are concerned with describing the characteristics of individual or of a
group. This study concerned with specific predictions, with narration of facts and
characteristics concerning individual, group or situation are examples of descriptive study.

Population:

Population for this research is unknown and this research questionnaire was circulated
through Chennai, Dindigul, Coimbatore, Kerala, Madurai, Bangalore, London, Hyderabad.
People responded for this questionnaire are working professionals from various industries,
students, business persons and senior citizens.

Sample Size:

This study was carried out to different levels of consumers and the sample size was 126.

Sampling Technique:

Convenience Sampling technique is used. Convenience sampling is a type of non-probability

sampling that involves the sample being drawn from that part of the population that is close to
hand.

Tools for Data Collection:

The data was collected through the Google Forms from various customers. The questions
include 5-point scale, closed ended, dichotomous and offered multiple choices.

Data Analysis Tools:

The tool that is being used for the report is the Percentage analysis using Pie Chart from the
Responses.

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PERCENTAGE ANALYSIS

How much money will you spend while purchasing a Response Percentage
smartphone

Less than 10,000 8 6.3%

10,000 - 20,000 52 41.3%

20,000 - 40,000 41 32.5%

More than 40,000 25 19.8%

Interpretation:

This Pie Chart represents that 10,000 - 20,000 responses are 41.3%, 20,000 - 40,000 responses
are 32.5 % more than 40,000 is 19.8% and 6.3% of less than 10,000.

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 Which smartphone brand will you prefer while purchasing Responses Percentage

IPhone 25 19.8%

One Plus 38 30.2%

Samsung 28 22.2%

Mi 21 16.7%

Others 14 11.1%

Interpretation:

This Pie Chart represents that One plus responses are 30.2 %, Samsung responses are 22.2 %
iPhone responses are 19.8% MI responses are 16.7% and Others responses are 11.1%.

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 How frequently will you purchase a smartphone Responses Percentage

6 months once 5 4%

Yearly once 13 10.3%

1 - 2 years 40 31.7%

More than 2 Years 68 54%

Interpretation:

This Pie Chart represents that more than 2 years responses are 54 %, 1 -2 years responses are
31.7 % , yearly once responses are 10.3 % responses are 16.7% and 6 months once responses
are 4 %.

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 What kind of features will you expect while purchasing a Responses percentage
smartphone

Camera 10 7.9%

Fingerprint sensor 7 5.6%

Battery life 15 11.9%

RAM 9 7.1%

All the above 85 67.5%

Interpretation:

This Pie Chart represents that All the above responses are 67.5 %, Battery life responses are
11.9 %, Camera responses are 7.9 %, Fingerprint sensor responses are 5.6 % and Ram
responses are 7.1%.

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 Who influences you while purchasing a smartphone Responses Percentage

Myself 55 43.7%

Family 35 27.8%

Friends 33 26.2%

Others 3 2.4%

Interpretation:

This Pie Chart represents that Myself responses are 43.7 %, Family responses are 27.8 %
Friends responses are 26.2 % and Others responses are 2.4 %.

Does colour matters while purchasing a Responses Percentage

smartphone

Strongly Agree 41 32.5%

Agree 38 30.2%

Neutral 41 32.5%

Strongly Disagree 4 3.2%

Disagree 2 1.6%

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Interpretation:

This Pie Chart represents that strongly agree are 32.5 %, Neutral responses are 32.5 % Agree
30.2 % responses, strongly disagree responses are 3.2 % and Disagree responses are 1.6 %.

Is battery life important while purchasing a Responses Percentage

smartphone

Yes 122 96.8%

No 4 3.2%

Interpretation:

This Pie Chart represents that Yes responses are 96.8 %, No responses are 3.2%.

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 Which type of advertisement influences you Responses Percentage
while purchasing a smartphone

Newspaper 10 7.9%

Television 26 20.6%

Social Media 86 68.3%

Pamphlets 4 3.2%

Interpretation:

This Pie Chart represents that Social media responses are 68.3 %, Television responses are 20.6
%, Newspaper responses are 7.9% Pamphlets responses are 3.2 %.

Is it mandatory to purchase screen guard and case Responses Percentage

cover while purchasing a smartphone

Yes 112 88.9%

No 14 11.1%

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Interpretation:

This Pie Chart represents that Yes responses are 88.9 %, No responses are 11.1 %.

For what purpose will you buy a Responses Percentage

smartphone

Talking 39 31%

Online Class 19 15.1%

Gaming 21 16.7%

Social Media 47 37.3%

Interpretation:

This Pie Chart represents that Social media responses are 37.3 %, Talking responses are 31 %,
Gaming responses are 16.7 % and Online class responses are 15.1 %.

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 Does a brand matter to you while purchasing a Responses Percentage
smartphone

Yes 118 93.7%

No 8 6.3%

Interpretation:

This Pie Chart represents that Yes responses are 93.7 %, No responses are 8.6%.

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 Smartphone is mandatory for our day to day life Responses Percentage

Strongly Agree 64 50.8%

Agree 36 28.6%

Neutral 21 16.7%

Strongly Disagree 4 3.2%

Disagree 1 0.8%

Interpretation:

This Pie Chart represents that strongly agree are 50.8 %, Agree responses are 28.6 % Neutral
16.7% responses, strongly disagree responses are 3.2 % and Disagree responses are 0.8%.

FINDINGS OF THE STUDY

The findings of this study have several implications for the smartphone producers. This study
resulted in information that will provide smartphone producers on factors influencing consumer
behaviour while purchase of smartphone.

 It is found that majority of the respondents (41.3%) are spending amount between
10000 – 20000 while purchasing a smartphone.
 It is found that majority of the respondents (30.2%) prefers One Plus brand while
purchasing smartphone.
 It is inferred that majority of the respondents (31.7%) frequently (1 – 2 Years) purchase
a smartphone.
 It is inferred that majority of the respondents (67.5%) expect the features like Camera,
Finger Print Sensor, Battery Life, RAM while purchasing a smartphone.
 It is inferred that majority of the respondents (43.7%) takes themselves as their
influence.
 It is understood that most of the respondents (32.5%) strongly agree colour matters
while purchasing a smartphone.

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  It is understood that most of the respondents (96.8%) battery life is important while
purchasing a smartphone.
 It is understood that most of the respondents (68.3%) use social media as their influence
while purchasing a smartphone.
 It is lucid from the above data that majority of the respondents (88.9%) feels mandatory
to purchase screen guard and case cover while purchasing a smartphone.
 It is lucid from the above data that majority of the respondents (37.3%) prefer
smartphone for using social media.
 It is lucid from the above data that majority of the respondents (93.7%) says that brand
matters while purchasing a smartphone.
 It is found that majority of the respondents (50.8%) strongly agree smartphone is
mandatory for day to day life.

LIMITATION OF THE STUDY

 The present study was based on Primary data collected from sample consumers by
survey method.
 The consumers buying behavior may be affected by cultural, social, personal and
psychological factors. But due to the limitation of time and resources, the research has
done only on two of them i.e., social and personal factors.

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CONCLUSION
Finally, consumer buying behaviors is very important. The impact of consumer behavior on
society is also of relevance. 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. All the participants of the focus group also
mentioned Smartphone as their need. Obviously, Smartphone have changed the ways that we
used to live, communicate and connect with people all over the world. With it, you can surf the
web with just a touch in the palm of your hand whether to read the breaking news or compare
the prices or features of a product while shopping, book the travel tickets, keep track of your
parcels delivered wherever you are and so on. Tastes and preferences of the consumers differs
while purchasing a smartphone.

REFERENCE
1. Kushagra et al (2017), Consumer preference for electronic consumer durable goods in
India: a conjoint analysis approach, January 2017, International Journal of Business
Forecasting and Marketing Intelligence 3(1):13
2. Ibrahim, I. I., Subari, K. A., Kassim, K. M., &Mohamood, S. K. B. (2013). Antecedent
Stirring Purchase Intention of Smartphone among adolescents in Perlis International
Journal of Academic Research in Business and Social Sciences December 2013, Vol. 3,
No. 12, 84-97
3. Tiwaskar, K., R. Mane and S. Pawar, (2012) “A comparative study of mobile computing
based on various platforms” Proceeding of International Conference on Advances in
Computing and Management.
4. Kotler & Armstrong. (2010). Principle of marketing (3rd ed.). Boston: Pearson Education.

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