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Brand Preference
INTRODUCTION
1.1 INTRODUCTION
The mobile phone dominate modern human life and is becoming a part of
basic need of a person as a means of communication around the world. Every
individual use mobile not only for communication purpose, but also it become a
personal assistant to make everyday easier. The development of mobile
communication technolgy eg. wireless internet, mobile phone, Mp3 player, GPS
navigation system has been a long journey of innovation, which is constantly
evolving and updating as a result of consumers changing needs and preference.
As per the research findings from the eMarketer it is found that the mobile
phone market which was 4.08 billion users globally in 2012 grew by 6.2% in 2013 to
4.33 billion users. The mobile market is supposed to grow by 5.1% to 4.55 billion
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users in 2014 and further by 4.7% to 4.77 billion users. The total mobile phone users
are likely to reach 5.13 billion users globally by 2017.
Source: www.eMarketer.com
As per the above Figure 1.1 it is found that , in 2012 around 58.2% of the global
population was using mobile phones, this percentage grew to 61.1% in 2013 and is
further expected to grow to 63.5% of the global population. By 2017 around 69.4% of
world’s population is expected to use mobile phones.
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1.2 REVIEW OF LITERATURE
o Gopal & Anjali & Aakansha, 2013 examined that today’s market medium
screen phone is quite popular, while only minority of buyers choose small
screen models. As far as the size and weight compared, slim handsets were
leading and light weighted handsets were popular while heavy weighted
handsets had least popularity.
o Bhatt, in his article “A study of mobile phone usage among the post graduate
students” revealed that mobile phone usage, duration of use, necessity, the
spending on mobile phones, influencing factor for purchasing the mobile
phone, awareness of medical side effects of the mobile phone usage among the
Post graduate students on the basis of primary data ; which was collected
Sardar Patel University from 700 post graduate students. The result indicates
that the usage and satisfaction level of mobile phone users differ from company
to company.
o Liao, Yu-Jui, 2012 investigated the determinants in smart phone purchase and
identified the market segmentation of smart phones. The result showed that
when buying a smart phone, consumer considers product designs and
integration of hardware and software were important and convenience of
transfering files and media display were not important.
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Philippines. Advertising and promotion are undertaken through the co-
operation between the service providers and mobile phone manufacturers. The
study tries to find out the effects of the different activities on consumer choice
of mobile phone brands.
o Tajzadeh Namin & Rahmani Vahid & Tajzadeh Namin Aidin, 2012 analyzed
that the process of deciding over a brand may be influenced by situation and
content. The findings suggest a significant relationship between the variables
“brand attitude”, “corporate attitude”, and “product choice”.
o Harsha de Silva, 2011 generally shows that adoption of mobile telephones has
significant benefits not just to the adopter, but to the community at large. In
this context, the objective of the current article is to examine, from a user
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perspective, the influences on mobile phone adoption by the poor in a selected
set of countries in the emerging Asian region.
o Rodolfo Martínez Gras & Eva Espinar Ruiz, 2012 highlight a new dimension in
information and technology with respect to teenagers in Spain. The main
objective of this article is to analyze the relationship between Information and
Communication Technologies and Spanish adolescents. Specifically,
researchers have studied, through qualitative methodology, the characteristics
of teenagers’ access and uses of technological devices and analyzed the purposes
that motivate the utilization of Information and Communication Technologies,
highlighting a close relationship between technologies and peer
communication and entertainment. On the contrary, there is an under-
utilization of all these devices for teaching and learning purposes.
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1.4 NEED AND SIGNIFICANCE OF THE STUDY
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1.6 RESEARCH METHODOLOGY OF THE STUDY
a) Sampling Methodology
a) Data Collection
Both primary and secondary data were used. Secondary data was used to
support primary data.
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1.7 LIMITATIONS OF THE STUDY
Telecommunication networks like BSNL, idea, Airtel and so on has not been
considered in the study.
A small sample size of 100 employees is taken. So inference taken for the
whole population may have impact of small size sampling.
1.8 CHAPTERISATION
Chapter 1 : Introduction
Chapter 2 : Theoretical framework
Chapter 3 : Company profiles
Chapter 4 : Data analysis and interpretation
Chapter 5 : Summary, findings, suggestions and conclusion.
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CHAPTER : 02
THEORETICAL FRAMEWORK
2.1 INTRODUCTION
In India, brand switching is more common in the cellular phones industry. Brand
switching means consumer switches from one brand to another brand to achieve the
satisfaction level. Different consumers have different characteristics in their life that
influence their buying behaviour. In this research, those features are analyzed which
directly affect the consumer to switch between brands.
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2.2 HISTORY OF MOBILE PHONES
Mobile phones, particularly the smartphones that have become our inseparable
companions today. However, the history of mobile phones goes back to 1908 when a
US Patent was issued in Kentucky for a wireless telephone. Mobile phones were
invented as early as the 1940s when engineers working at AT&T developed cells for
mobile phone base stations.
The very first mobile phones were not really mobile phones at all. They were
two-way radios that allowed people like taxi drivers and the emergency services to
communicate. Instead of relying on base stations with separate cells, the first mobile
phone networks involved one very powerful base station covering a much wider area.
Motorola, on 3 April 1973 were first company to mass produce the first
handheld mobile phone. These early mobile phones are often referred to as 0G mobile
phones, or Zero Generation mobile phones. Most phones today rely
on 3G or 4G mobile technology
India is one of the world’s largest and among the fastest growing
smartphone markets. With sales slowing down in mature markets like the US and
Europe, handset makers are expanding their presence in the Indian market, bringing
in the best devices from their portfolio. Smartphone shipments in India grew 15
million to 29 million units in March quarter compared to the year-ago period, with
top five brands capturing almost 70 per cent of total segment.
Samsung, Micromax, Lenovo and Motorola together has seized more than 40%
of the market share out of the overall smartphone market in India. Samsung enjoyed
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its leadership in financial year 2017 with its flagship smartphone Galaxy J models as
this series packs a punch with locally developed Ultra Data Saving (UDS) mode, S
bike mode and Turbo Speed Technology.
Source: www.business-standard.com
As per the above figure 2.1, Samsung continued to lead the market with 26 per
cent share, followed by Chinese players Xiaomi (13 per cent), Vivo (12 per
cent), Oppo (10 per cent) and Lenovo (8 per cent).
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Overall, the mobile handset market grew by six per cent in the January-March
2017 quarter, with smartphones and feature phones contributing equal share.
“Offline brands like OPPO, vivo and Gionee have now started focusing on
online channels as well to gain extra market share,” Counterpoint Research Analyst
Karn Chauhan said. He added that online-only brands like Xiaomi and Motorola are
moving fast into offline markets to widen their reach to the mass market, addressing
consumers in tier II and III cities.
Source: www.business-standard.com
From the above figure 2.2, the premium segment (over Rs. 30,000) grew at 35
per cent year-on-year with Samsung accounting for 48 per cent market share,
followed closely by Apple at 43 per cent. OnePlus, OPPO and Google made it to the
top five in this segment, but each with marginal shares.
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2.4 BRAND
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2.5 BRAND PREFERENCE
Brand preference is strongly linked to brand choice that can influence the
consumer decision making and activate brand purchase. Understanding the brand
preferences of consumers’ will dictate the most suitable and successful Marketing
strategies .One of the indicators of the strength of a brand in the hearts and minds of
customers, brand preference represents which brands are preferred under
assumptions of equality in price and availability.
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beliefs, values, attitudes, morals, customs, habits and forms of preference that are
shared by a society and transmitted from generation to generation within that society.
Cultural influence is a force tunneling both patterns of consumption and patterns of
decision making from infancy.
Culture : Culture is the distinctive way of life of people and it is the most
fundamental determinant of a person’s wants and behaviour.
Sub culture : Each culture consists of smaller sub – cultures that provide more
specific identification and socialization for their members. Sub – Cultures include
nationalities, religious, racial groups and geographic regimes.
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get advice or guidance in his or her own thoughts and actions from such small
groups. Reference group is useful for self-evaluation and attitude formation.
Family: The family can exert considerable influence in shaping the pattern of
consumption and indicating the decision-making roles. Personal values,
attitudes and buying habits have been shaped by family influences. The
members of the family play different roles such as influencer, decider,
purchaser and user in the buying process.
Role and status: The person’s position in each group can be defined in terms of
role and status. A role consists of the activities that a person is expected to
perform. Each role carries a status.
Lifestyle: The life style concept when used carefully, can help the marketer
gain an understanding of changing consumer value and how they affect buying
behaviour.
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2.6.4 PSYCHOLOGICAL FACTOR
Beliefs and attitudes: A belief is a descriptive thought that a person has about
something. Marketers are interested in the beliefs that people formulate about
specific products and services. Attitudes put people into a frame of mind of
liking or disliking thing, moving toward or difficult to change.
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In recent years there has been rapid growth in the adoption of smartphones
that has attracted increasing attention of consumer buying behaviour. Smartphones
provide marketers with the opportunity to develop smartphones that will create a
unique content of interactive experience between consumers and a brand, thus
engaging consumers more effectively.
A long-lasting battery
Processor power
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Price
Once we ticked off all the things you want to see in a mobile
phone, it all comes down to price. While top-notch smartphones don't usually come
cheap, it's worth shopping around for the best deals.
Crystal-clear display
Great camera
As compact digital cameras have been gradually relegated to
history, the smartphone camera has become more important. The ability to take shots
anytime and anywhere without having to lug any extra kit around is a huge bonus,
especially as the quality of smartphone shots just keeps getting better. Though the
cameras on top-tier handsets like the LG G6, iPhone 7 Plus and Huawei P10 are all
impressive, they all bring something a little different to the table, so weighing up the
pros and cons of their respective snappers is vital when choosing your next phone.
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Design and build quality
A super-shiny phone body might look amazing when it
comes out of the box, but it won't have quite the same effect when it's got
smudged fingerprints all over it, and more importantly, if it's not very grippy, you
risk dropping it and ending up with a cracked screen. A sturdily built phone
chassis has a better chance of surviving such falls.
2.9 CONCLUSION
This chapter showed the consumer behaviour toward mobile phone in Indian
market, the behaviour is influenced by various factors. These factors motivate
consumer and help them in purchase decision making process which result in
consumer buying a mobile phone. This chapter helped to determine each factor and
identify as how they are influencing consumers. This literature helped to shape the
research questions and research objectives of this study. It also shows the brand
influence on consumer behaviour as brand of mobile phone plays important role in
consumer purchase decision for a mobile phone.
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CHAPTER: 03
COMPANY PROFILE
3.1 iPhone
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status which included opening Apple’s own retail stores in 2001.It again saw success
and returned to profitability. In August 2011, Jobs resigned as CEO and Tim Cook
became the new CEO.
Apple's goal for the first year of the iPhone was to capture 1% of the
worldwide cellphone market. The company achieved that goal and now stands at
somewhere between 20% and 40% of the market, depending on which country
you're looking at. In 2016, the iPhone made Apple the second-largest smartphone
vendor in the world, with a global market share of almost 15% percent.
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3.2 MICROMAX
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The company launched Micromax X1i, its first telephone with a month-
long battery back-up. The company has many firsts to its credit when it comes to the
mobile handset market; including the 30-day battery backup, Dual SIM Dual Standby
phones, QWERTY keypads, universal remote control mobile phones & first quad-core
budget smart phone.
With the entry of Jio services, India have witnessed tremendous adoption to
4G enabled mobile phones. To capture these early first time 4GAdapters, Micromax
have started rolling out basic smartphones with 4G capabilities under Bharat series .So
far, company have already launched Bharat 2 which is Considered as one of India’s
cheapest 4G mobile phone.
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3.3 OPPO
The company has registered the OPPO brand name in many parts of the
world. OPPO entered the mobile phone market in 2008. It is a is a global electronics
and technology service provider making a real impact in over 20 countries such as the
United States, China, Australia and many other countries in Europe, Southeast Asia,
South Asia, the Middle East and Africa.
operations. It also hired actors Hrithik Roshan and Sonam Kapoor as their brand
ambassadors
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OPPO provides the highest hardware quality standards and the best user
experience. From the start, OPPO’s products pushed boundaries. As OPPO continues
to expand into new markets, the goal of making their products more accessible
around the globe without compromising product service and quality has never been
clearer. OPPO’s brand philosophy is summed up in the phrase “The Art of
Technology”.
The selfie expert and leader, OPPO is ranked as the number 4 smartphone
brand globally since 2016 and is providing excellent selfie experiences to more and
more young people around the world. In 2017, OPPO introduced artificial
intelligence to the front camera and is leading a brand new era of the selfie.
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3.4 SAMSUNG
Samsung entered in the electronic industry in the late 1960s. Following Lee’s
death in 1987, Samsung was separated into 4 business Groups. Samsung India
Electronics Ltd. is one of the subsidiary of Samsung Electronics Company Ltd. of
South Korea started its operations in 1995.
Choi Gee-sung is the President and Chief Executive of the digital media
division at Samsung Electronics. As of 2017, Samsung has the sixth highest global
brand value. Its products include air conditioners, computers, televisions, mobile
phones and telecommunications networking equipment.
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Samsung Mobile Division is one of five business units within Samsung
Electronics. Headquarters is located in Suwon, South Korea. Samsung introduced its
first mobile phone to India in 2004. In 2008, Samsung Electronics
‘Telecommunication Business declared its new business strategy focusing on
consumer and marketing. Samsung mobile phones are divided into 6 major categories
– Style, Infotainment, Multimedia, Connected, Essential and Business.
In 2007 Samsung Mobile Division Business reported over 40% growth and
became the second largest mobile device manufacturer in the world In 2008, Samsung
Electronics Telecommunication Business declared its new business strategy focusing
on consumer and marketing. At the end of November 2011, Samsung sold more than
300 million mobile devices which was a close second after Nokia with 300.6 million
mobile devices sold in the first three quarter of 2011. As of 2012, Samsung is the
largest manufacturer of devices running Google Android with a 46% market share.
Now Samsung became the most trusted brand in India.
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3.5 XIAOMI
Xiaomi released its first smartphone in August 2011 and has rapidly
gained market share in China to become China’s largest smartphone company in
2014. As of 2017 Xiaomi is the world’s 5th largest smartphone company. Xiaomi has
expanded into developing a wider range of consumer electronics, including a smart
home device ecosystem.
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There are similarities between Xiaomi and Apple however, they are
both hardware and software companies, both have strong control over supply chain
and have a feverish fan base. Apart from this the two companies don’t have much else
in common, Apple price their smartphones at ludicrous prices and don’t take on much
customer feedback whereas Xiaomi do the opposite.
Xiaomi was now not only making its own software, but its own
hardware too. The company incorporate the feedback of their customers into product
range, which currently includes Mi and Redmi smartphones, Mi TVs and set-top
boxes, Mi routers, and Mi Ecosystem products including smart home products,
wearables and other accessories.
In 2014 Xiaomi announced its expansion outside China, with their first
their international headquarters in Singapore. Following Singapore, the company
opened in Malaysia, Philippines and India. In April 2015 Xiaomi announced it would
make its Mi devices available through two of India's major e-commerce sites and
through offline retailers for the first time.
On 23 April 2015, Xiaomi CEO Lei Jun and VP Hugo Barra came
together to announce a new smartphone named Mi 4i in India, the first phone to be
launched in India before any other country. In 2017, Xiaomi’s market share grew by
nearly two-fold because of the Chinese OEM’s incredible performance in the Indian
smartphone market, where it is now level with Samsung with respect to market share.
In Q3 2017, Xiaomi became No.1 Smartphone brand in India, overtaking the current
record holder Samsung. Xiaomi has sold 9.2 million units during this period .
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