UNIVERSITY OF MUMBAI

PROJECT WORK ON
“A STUDY OF CONSUMER PREFERENCE FOR MOBILE HANDSETS AMONG YOUTH IN
MUMBAI”

A Project Submitted to
University of Mumbai for completion of the degree of

MASTER OF COMMERCE (MANAGEMENT)

By
NABEELA MAULA
ROLL NO.185
SEMESTER 3
Under the guidance of
PROF. TENZIE MARIA THOMAS

VIVEK COLLEGE OF COMMERCEGOREGAON – 400062

2023-2024

1
 UNIVERSITY OF MUMBAI

PROJECT WORK ON
“A STUDY OF CONSUMER PREFERENCE FOR MOBILE HANDSETS AMONG YOUTH IN
MUMBAI”

A Project Submitted to
University of Mumbai for completion of the degree of

MASTER OF COMMERCE (MANAGEMENT)

By
NABEELA MAULA
ROLL NO.185
SEMESTER 3
Under the guidance of
PROF. TENZIE MARIA THOMAS

VIVEK COLLEGE OF COMMERCEGOREGAON – 400062

2023-2024

2
 CERTIFICATE

This is to Certify that MISS NABEELA MAULA has worked and duly completed her Project Work for the
degree of Master in Commerce under the Faculty of Management in the subject of MARKETING
STRATEGIES AND PRACTICES and her project is entitled, “A STUDY OF CONSUMER PREFERENCE
FOR MOBILE HANDSETS AMONG YOUTH IN MUMBAI” under my supervision. I further certify that
the entire work has been done by the learner under my guidance and that no part of it has been submitted
previously for any Degree or Diploma of any University.
It is her own work and facts reported by her personal findings and investigations.

INTERNAL EXAMINER EXTERNAL EXAMINER

Prof. PRADEEP HATHI Dr. VIJETHA SHETTY
CO-ORDINATOR PRINCIPAL

COLLEGE SEAL

3
 DECLARATION

I, MISS NABEELA MAULA student of Master of Commerce (Management) Semester III, Vivek College
of Commerce, hereby declare that I have completed the project on titled , “A STUDY OF CONSUMER
PREFERENCE FOR MOBILE HANDSETS AMONG YOUTH IN MUMBAI” in the academic year
2023– 2024.The information submitted is true and original to the best of my knowledge.

Signature:-

MISS NABEELA MAULA Place: Mumbai

DATE:

4
 ACKNOWLEDGEMENT

To list who all have helped me in difficult because they are so numerous and the department is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimension in completion of
this project. I take this opportunity to thank the University of Mumbai for giving me a chance to do this project.
I would like to thank our Principal, Dr. VIJETHA SHETTY for providing the necessary facilities required
for the completion of this project. I take this opportunity to thank our Co-ordinator Prof. PRADEEP HATHI
for his moral support and guidance. I would also like to express my sincere gratitude towards my project guide
Prof. TENZIE MARIA THOMAS whose guidance and care made this project successful. I would like to
thank my college library for having provided various references books and magazines related to my project.
Lastly I would like to thank each and every person who directly or indirectly helped me with the completion
of the project especially my parents and peers who supported me throughout the project.

MISS NABEELA MAULA

5
CHAPTER TITLE OF THE CHAPTER PAGE NO
NO

1 INTRODUCTION 7-14

2 RESEARCH METHODOLOGY 15-17

3 LITERATURE REVIEW 18-22

4 DATA ANALYSIS, INTERPRETATION & 23-34

PRESENTATION

5 CONCLUTIONS & SUGGESTIONS 35-40

6
 CHAPTER:- 1
INTRODUCTION

In today’s fiercely competitive world, it is very important for the marketers to discover and figure out the
aspects that are essential to deal with the competitors, changing customer tastes and preferences. The intense
competition in terms of product similarity and increased number of competing brands in the market have led
the marketers to consider and study the factors that are influential in consumers’ buying decisions and
behaviours. For marketers, teenage market and youth market are the most appealing and attractive markets, as
they believe to earn a huge return on their investments by targeting this age groups. Youths and teenagers,
nowadays, are considered to have more power in their key family decisions and purchases. Hence, a major
centre of firm’s marketing actions is towards these consumers and they concentrate much on the factors
underlying the buying behaviour and brand choice.
Investigating the factors that influence buying decisions of the customer while buying a mobile phone can be
an interesting topic for the researchers to study as they can examine the key elements that are vital in choosing
a particular mobile phone over the others. This research paper attempts to analyse the determinants of
customer’s decision-making process in the context of teenage and youth consumers’ market.
The research is conducted under the background of mobile phones market. The reason behind choosing the
mobile phone market with respect to focus on youths and teenagers in their decision making are twofold:
firstly, mobile phones are widely used by teenagers and youths all over the world and this market in the recent
years has become more and more competitive. Thus, it is necessary for the marketers to understand the factors
that affect decision making of this particular market; secondly, teenagers and youths play a crucial and
influencing role in mobile phone selection in the mobile phone market. Marketers target them not only as they
will represent adult consumers of tomorrow but also because they dominate a large and remarkable portion of
their parent’s income.

7
Mobile Phone has become an unavoidable item in daily lives of peoples. In this sophisticated world, not only
young generation but also old ages as well as kids can be called as a smart phone generation as they love too
busy with their smart phone all the time. And it becomes a very necessary instrument in their life. So before
choosing their mobile phone they spend considerable amount of time for selecting phone. There are many
factors to be considered and brand is one of them. Companies’ competition has provided the consumer a wide
variety of mobile phone to choose from at the same time there is also a confusion provided in the minds of
consumer about which of the particular mobile brand suit their requirements the most. This problem of choice
is known as brand preference.
Every mobile phone company competing to updates their offerings with the latest technological updates and
many consumers have a preferred brand that suit them or a band they have become familiar with. So it is
important for marketers to obtain information on brand preference for mobile phones. Brand preference is the
selective demand for a company’s brand product rather than a product; the degree to which consumers prefer
one brand over another. Brand preference can be achieved by creating the positive brand image in customer’s
mind. Brand image is the consumer’s impression about the brand’s physical characteristics, its performance,
the functional benefit etc. The brand choice decisions are important critical for marketer. The primary objective
of the study is to assess the brand preference for mobile phones among Youth. It also identifies the major
features which a student looks in a mobile phone. Brand preference analysis is done by conducting the survey
which describes the preferences for different mobile phone of the surveyed college students.
Mobile phone has penetrated everywhere in the world, even India witnessed phenomenal growth in usage of
smart phones in the last decade. A mobile phone is an electronic device used for two-way radio
telecommunication over a cellular network. India is the world’s second largest mobile phone manufacturer
after China. And with the current pace of growth, India is not far from becoming the leading handset market
in the world. According to the Indian Cellular Association (ICA), the annual production of mobile phones
within the country has increased from 3 million devices in 2014 to 11 million devices in 2017. India now
accounts for 11 percent of global mobile production, which was only 3 percent in 2014. In fact, the telecom
industry today is amongst the top five employment opportunity generators in India, creating over four million
direct and indirect jobs over the next few years, according to Randstad India. India accounts for 30 million
smartphone purchases every quarter, and this percentage keeps increasing several times a year. According to
IDC and the Ericsson Mobility Report, mobile subscriptions in India are expected to rise to 1.4 billion by
2021.
Table 1: No. of Mobile phone users in India

Year Mobile phone users (in millions)

2013 524.9

2014 581.1

2015 638.4

2016 684.1

2017 730.7

2018 775.5

2019 813.2

8
 The Indian consumers are price sensitive, thus segment of smartphones below 10,000 has seen
the tremendous growth. There are many smartphone companies that are targeting India as their market.
India being a huge market the companies like Samsung, Xiaomi, Lenovo, Vivo, and Oppo have
frequently introduced the budget smartphones under 10,000. The market share of prominent companies
in India is depicted in the following table.

Table 2: India Smartphone Shipment Market Share

Smartphone Companies 2019 2019

Market Share % Q3 Q4
Xiaomi 26% 27%

Samsung 17% 21%

Vivo 20% 19%

Realme 8% 12%

Oppo 16% 8%

Others 13% 13%

Smart phone is need of today. A Smartphone not only fulfil the task of calling and receiving
calls but also serve various need of users like internet and social connectivity, multimedia, selfie, health
traits measurement, video calling etc. A large number of variables affect the buying decision of
Smartphone buyers.
The use of smartphone among university students in the 21st century is seen as an important
part of their life because of its advanced features. Students use their smartphones to accomplish their
various daily tasks. Reviews from various studies revealed that students utilize smartphones for various
objectives. Most of the students utilize smartphones for entertainment, social and education purposes.
The Mobile phones were introduced in the mid-1980s and in the last two decades their
ownership and use has increased dramatically in many parts of the world. Interestingly, the popularity of
mobile phones is a result of the communication and flexibility that they facilitate and the personal safety issues
that they overcome. Interestingly, the design of mobile phones is also evolving. The Cellular telephone
(commonly "mobile phone" or "cell phone" or "hand phone") is a long-range, portable electronic device used
for mobile communication.
Trends in Mobile Phone Usage Worldwide – As per the research findings from the e -Marketer website it
is found that 4.55 billion people worldwide to use a mobile phone in 2014. However, the Mobile adoption is
slowing, but new users in the developing regions of Asia-Pacific and the Middle East and Africa will drive
further increases. In the years 2013 and 2017, mobile phone penetration will rise from 61.1% to 69.4% of the
global population, according this report.

9
Graph 1: Worldwide Mobile Phone Users (Source: www.eMarketer.com

It was noted that Mobile phone users are rapidly switching over to smartphones as devices become more
affordable and 3G and 4G networks advance. 5th generation mobile networks or 5th generation wireless
systems, in short, is known as 5G. It is the latest proposed telecommunications standard after 4G, 3G and 2G
.The mobile data world is now fully equipped with 4G LTE networks. Recently, after the introduction of
Reliance Jio network in India, the country has got a huge 4G network boost and is also ready for the next
chapter.5G network is the next chapter in the telecommunications standard, which will make our smartphones
even more fast and powerful.
Players in Mobile Phone are Nokia, Samsung, Vivo, MI, Moto, Apple (I Phone), Blackberry, Oppo, HTC,
One Plus, Sony, Miramax, Honor.
The Smartphone has been in the market since 1993 but Appl e introduced the smartphone since last six years.
Early Smart phone's were too much expensive for general consumers ther
efore predominantly meant for corporate users and used as a n enterprise device.
The Smartphone era started with the phase purely meant for enterprises. During this phase all the companies
were design ed the Smartphone as per the corporate requirements and tar
geting to the corporations. In 1993 the era began with the adv ent of smartphone 'Simon' which was the first
smartphone. Bl ackberry as the revolutionary device of this era had introduce d many features like email,
internet, fax, web browsing, camer a etc.

10
INTRODUCTION TO THE INDUSTRY :
The mobile industry is a subset of the telecommunications industry focused on mobile phones, phone service,
and peripheral devices. In the 1990s and 2000s, this industry experienced rapid growth as a result of significant
advances in mobile technology and increasing consumer demand for mobile products. There are a number of
elements to the mobile industry. Mobile phone producers are one aspect, covering everything from companies
supplying raw materials to distributors fulfilling orders for mobile phones. Service providers are another
category of the cell phone industry; many of these partner with specific manufacturers to make branded phones
and devices with special features. Manufacturers of smart phones, specialized modems for computers, tablet
computers with mobile functionality, and similar devices are also part of the mobile industry. Likewise with
producers of accessories. Members of this industry include a number of multinational corporations with very
wide reach, in addition to smaller companies offering localized

Services, like regional mobile phone providers. They are represented by a number of lobbies and professional
organizations who work with regulatory agencies, manufacturers, and other interested parties to develop
standards and practices for the cell phone industry as a whole. For example, in the 2000s, there was a push
toward universal charging devices to make mobile phones easier to charge. As with other aspects of the tech
sector, the mobile industry in the 2000s attracted a great deal of investor attention and was pressured to rapidly
roll out new products, as well as improvements to their existing products. Global coverage with mobile phone
service also became a topic of interest; in some regions, people skipped landline service altogether for
telecommunications, jumping directly to mobile phones because the network was cheaper and easier to
implement. Stock indexes focusing on telecommunications and the mobile industry provided a method for
investing easily in companies of interest, stimulating trading in shares related to this industry, as well as
telecommunications in general. Employment opportunities in this industry are highly varied. Engineers,
technicians, repair personnel, and similar workers are needed for building and maintaining devices and cell
towers. Marketing professionals are involved in the development of ad campaigns, and customer service
personnel are needed to sell products and services. Creative professionals interested in visual design and
aesthetics are also in demand in the industry for companies working on developing phones with specific
aesthetic characteristics.

INTRODUCTION TO THE COMPANY:

SAMSUNG: Samsung, South Korean company that is one of the 1.3 INTRODUCTION TO THE COMPANY
SAMSUNG: Samsung, South Korean company that is one of the world’s largest producers of electronic
devices. Samsung specializes in the production of a wide variety of consumer and industry electronics,
including appliances, digital media devices, semiconductors, memory chips, and integrated systems. It has
become one of the most recognizable names in technology and Samsung was founded as a grocery trading
store on March 1, 1938, by Lee Byung-Chull. He started his business in Taegu, Korea, trading noodles and
other goods produced in and around the city and exporting them to China and its provinces. After the Korean
War, Lee expanded his business into textiles and opened the largest woollen mill in Korea. He focused heavily
on industrialization with the goal of helping his country redevelop itself after the war. During that period his
business benefited from the new protectionist policies adopted by the Korean government, whose aim was to
help large domestic conglomerates (chaebol) by shielding them from competition and providing them easy
financing. During the 1970s the company expanded its textile-manufacturing processes to cover the full line
11
of production—from raw materials all the way to the end product—to better compete in the textile industry.
New subsidiaries such as Samsung Heavy Industries, Samsung Shipbuilding, and Samsung Precision
Company (Samsung Techwin) were established. Also, during the same period, the company started to invest
in the heavy, chemical, and petrochemical industries, providing the company a promising growth path. OPPO:
OPPO is a global electronics and technology service provider. It delivers the latest and the most delicate mobile
electronic devices for their user. OPPO is here for those that expect more from their smartphone than a run-
of-the-mill experience. OPPO is relentless in the pursuit of the latest technology and the highest standards of
hardware quality. OPPO is try to deliver the best experience to user as possible. The beautiful products-inside
and out, everything is considered just created for the user. From the tactile qualities to the aesthetic aspects of
each device – every angle, every colour, every piece is meticulously crafted product for their user . From the
start, OPPO’s products have pushed boundaries. Since its founding in 2004, OPPO has consistently strived to
deliver users this ideology across the globe. Having successfully entered into the mobile phone market in 2008.
OPPO began looking at expansion into international markets in 2010 and opened its first overseas business in
April of 2010 in Thailand. Today, OPPO is presenting in 21 markets worldwide. OPPO is wholeheartedly
inspired by its customers. Based on the customers’ feedback on both the hardware and software user

experience, OPPO has adopted a strategy of rapid release for smartphone development, firmware updates as
well as expand to reach and service their customers across the world. ONE PLUS: The OnePlus One
(colloquially abbreviated to OPO) is an Android smartphone manufactured by OnePlus. Unveiled in April
2014, it is the first product by OnePlus. The OnePlus One was designed to compare favourably – in
performance, quality, and price – to flagship devices by leading smartphone manufacturers. It was also
intended to be developer friendly, and has since received a wide variety of ROMs and custom kernels from
the community. The OnePlus One shipped to most markets with the Cyanogen OS operating system pre-
installed, a commercial variant of Cyanogen Mod. The phone was first made available for sale on 25 April
2014, exclusively from the OnePlus website, but initially required prospective customers to obtain an
invitation before they could purchase it. These invitations were primarily distributed by the company through
contests, some of which attracted attention for their unconventional or controversial nature. On 6 June 2014,
the device was available for general sale. As of 20 April 2015, the device no longer required an invite to
purchase. XIAOMI: MI stand for Mobile Internet. It is the brilliant idea by a serial entrepreneur Lei Jun in
2010. This private Chinese electronic company headquartered in Beijing, China. Xiaomi company is the 4th
largest smartphone maker. Xiaomi is not solely focus on design, develops, selling smartphones but also
committed in creating mobile apps and related consumer electronics. Their product include Mi TV, Mi band,
Mi Power Bank, MI Cloud, Mi Box and others internet-peripheral. However in our page, we will focus on
smartphone which is the most popular device Xiaomi ever made. NOKIA: Nokia is a Finnish multinational
corporation founded on 12 May 1865 as a single paper mill operation. Through the 19th century the company
expanded, branching into several different products. In 1967, the Nokia Corporation was formed. In the late
20th century, the company took advantage of the increasing popularity of computer and mobile phones.
However, increased competition and other market forces caused changes in Nokia's business arrangements. In
2014, Nokia's mobile phone business was sold to Microsoft.

Socioeconomic Statistics of India

India is world's 2nd most populous country with having more than 1 billion people and is set to overtake China
as world's most populated country be 2025. In India, 50 per cent of its population is under age of 25 and around
65 per cent population is under the age of 35 which is making it as one of the youngest country in the world
and it is already a world's largest youth population. The average age of Indian (29) in 2020 will be much lesser

12
than that of China (37) and Japan (48). As per survey by TCS, 70% of high school students in metros own
their Smartphone and some of them using it for the purpose of internet.
The Smartphone users in urban India has grown rate of 89% in 2012-13 as per report of Nielsen India. The
study reveals that in young age group of 16 to 18 years, the sales of Smartphone have grown four fold. Metro
cities are having maximum penetration of Smartphone (23%). Maximum of time spent by user on online apps
and internet but times spent on calls and messaging is quite less. User use the Smartphone for social networking
(22 million), online searchers (24 Million), Chatting and webmail's (16
Million), streaming video, maps (16 Million) and accessing web portals (8 Million).
Smartphone users are downloading social networking apps and games for entertainment purpose. Smartphone
is considered to be used for Socializing, Entertainment and Gaming.
Smartphone sizes are increasing with almost 25% of all Smartphone in 2015 having a screen size of 5.5 inches.
Nearly 36% of Smartphone launched in India so far in 2015 are priced between Rs. 5000/- and Rs.
15000/-
This indicates the trend of the companies to reach out to more of the Indian masses. Statistics indicate that
3GB RAM is the new standard in the Smartphone sector, with over 90 phones launched so far in 2017 having
a minimum of 2GB RAM. When compared to the statistic of 2014, only 60% phones launched in 2014 had
2GB RAM.
So based upon the above, review of literature and taking personal interview ofrespondents, the below variables
were chosen to determine the attributes, consumers prefer while purchasing a mobile handset:
1. Price
s2. Brand
3. Features (Processor, Camera, Battery life, RAM and ROM)
4. Purpose
The method of conjoint analysis has been to find out attributes in the product that a respondent prefers the
most. Hair et al. (1998) has described the concept conjoint analysis as "Conjoint analysis is a multivariate
technique used specifically to understand how respondents develop preferences for products or services. It is
based on the simple premise that consumers evaluate the value of a product or service by combining the
separate amounts of value provided by each attribute."
Consumers are better in giving preferences when appraising different options together (conjointly) during
purchase of goods or service rather than evaluating them individually, this method of conjoint analysis makes
a respondent to introspect the relative importance of individual attributes for a particular decision.

13
This phase was mostly focused on targeting enterprises. The second phase was the I Phone Smartphone era
started with a major breakthrough Smartphone market in 2007 which was fir st time ever industry introduced
the Smartphone for general consumers. Google introduced Android Operating System smartphone with the
intention to approach the consumer market a t the end of 2007. Google emphasized more on features like e
mail, social website, audio, video and internet access that mostly liked by general consumers at a very low
cost.

Third phase of Smartphone was mainly targeted to reduce the gap between enterprise customer and general
consumer requirements by improving the display quality, technology stable the mobile operating system, more
powerful batteries and enhance the user- friendly operating system etc. The smartphone market today is very
much challenging as very few manufacturers experiment with new technologies and are giving importance to
packing phones with ever-impressive specifications and trying to improve the individual components to make
a unique one. Smartphone displays are enhanced to 1080p resolution, digital cameras on higher megapixel
density, higher storage capacity and higher processing power is approaching towards the technology of
personal computers.

During the initial years of wireless telephony in India, customers had a limited choice in terms of handsets.
The majority of h and sets were imported by a handful of global handset players present in the market. The
cost of both the handsets and wireless services were beyond the reach of low-income users. Handsets then
were fairly basic, which enabled users to primarily access voice services and limited data services such as
short messaging service (SMS). Over the years, this scenario has changed dramatically with a wide variety of
handset choices for customers. Customized low-cost, feature-rich smartphone has become more mobility and
useful than ever before. Smart phone works together with the application software of social networking tools
hence, new technology tethering is the process s of connecting secondary devices to the internet via a shared
connection of a smart phone, either by setting up a personal Wi-Fi hotspot or by using a USB cable to connect
(or tether) the devices.

Tethering has been a complex and pressing issue for many operators not in India but globally due to an inherent
lack of understanding of its impact on usage behaviour and the undetermined potential impact on the
profitability. Clearly, the ability t o connect multiple devices to a single cellular plan could significantly raise
the ceiling of the potential usage demand of any given customer.

During the period 2010-2015, the number of wireless subscribers in India is expected to increase at a CAGR
of 11.2% to re ach 1.2 billion subscribers by 2015. A majority of the new sub scriber additions is expected to
be from the semi-urban and rural areas, driving down the average selling price (ASP) of handsets.

14
 CHAPTER:- 2
RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

The usages of Smartphones have risen tremendously. There are various studies have undertaken to study the
consumer behaviour related to brand preferences, factors determining them, pricing issues, promotional
strategies etc. The objectives beneath the present research can be conferred as follows:
 To identify the consumer preferences for the mobile phones in the college students studying in Mumbai
city.
 To know about the factors determining the liking of different smart phone brands available in the
market.
 To examine the relationship between the price and inclination towards smart phones brands.
 To understand the usage pattern of mobile phones among the young students of Mumbai city.

1) The primary objective was to know about the preference level of youth associated with different
mobile phone brand.
2) To study the perception and buying behaviour of youth towards various mobile phone brand
3) To identify the customer satisfaction level about the service offered by various mobile phone brand
4) To know the major features, to which a student looks for in a mobile brand before making a purchase.

SCOPE AND SIGNIFICANCE

The scope of research is based o mobile brands and it throws light on brand preference on mobile
phone. This study is highly significant and useful to know the youth preference while purchasing
mobile phones.
Objectives of the study
 To analyse the factors influencing the purchase of mobile phone among youth
 To analyse brand preference on mobile phone among youth.

This study is focused on assessing the buyers in terms of brand preferences and satisfaction. This study will
be significant in the following grounds: Finding of the study will help marketers understand brand preference
practices in mobile phone market. It will give information about the level of satisfaction towards a particular
mobile brand and also identify the information about level of customer involvement in brand searching,
analysing attributes and brand choice for the high involvement product mobile phones. It will be useful in
creating most favourable brand by knowing the buyer perception and response. Marketers can trace out the
important reason for brand preference can focus according to choose, perception and preference of buyer.

15
SAMPLING METHODOLOGY:
• Sample Size -17 respondents
• Sample Unit- Students of Graduation and the Post Graduation have been taken as sample unit.
• Sampling Area - Mumbai
• Sampling Technique – Questionnaire.

RESEARCH DESIGN:
• Gathered information required as per the questionnaire.
• The research design is probability research design and is descriptive research.

DATA COLLECTION:
• Primary data has been used by me in the form of Questionnaire. For this survey was used for collecting
primary data, which suffices all research objectives.
• Secondary data sources like catalogue of the company, product range book of the company & various internet
sites such as google.com have been used.

The research design undertaken in present study was of descriptive type. The sampling frame for this research
was the city of Mumbai. The primary data was collected from through a structured questionnaire comprising
of multiple-choice questions, rating based questions, open ended questions etc. The students studying in the
various colleges of Mumbai City were considered as respondents. While selecting respondents the differences
of demographic and socioeconomic backgrounds were also taken into consideration. The questionnaire was
solicited to 25 respondents, out of which 17 were found to be complete in all phases and were considered for
data analysis.

The scope of the study is to analyses the brand preference of mobile phones among teenagers and youth. This
research is expected to provide sufficient information about the factors that affects the brand preference in the
mobile phone market. This researcher study is based on preferences of teenagers and youths in Coimbatore
region, Tamil Nadu. A researcher has been identifying the factors/ antecedents that affecting customer’s
decision making while buying a mobile phone. The findings of study ultimately reveal the major factors that
affecting and the relationship between those factors.

Hypotheses:
For studying the respondents’ inclination towards the Smartphone brands the following hypotheses were
considered.

16
Figure: Conceptual framework of the study

17
 CHAPTER:- 3
LITERATURE REVIEW

According to Mackenzie (2011) Smartphone has revolutionized the way we do thing; the role Smartphone
plays in today’s society is phenomenal. Smartphone is taking the role of computer, making it possible to do a
lot with this small hand-held device. It has a broad use such as sharing information, paying for products,
browsing, and shopping. Virtually every activity today has a Smartphone application for it.

Cassavoy (2012) explicated that Smartphone can be defined to be a device that enables the user to make
telephone call and at the same time has some features that allow the user to do some activities that in the past
was not possible unless using a computer or a personal digital assistant (PDA), such as sending and receiving
e-mails, amending an office document. Nowadays brand plays a very vital role in consumer buying decision.
While consumers usually go for a familiar brand, but the concept of brand transcend beyond a trademark or
name. The concept of brand encompasses much more than trademark.

P. Jubin (2013) in her qualitative study concludes that graduate students combine their personal lives with their
student lives influenced by the use of smartphones. The students can have a classroom at home or wherever
making use of communication and educational applications offered by smartphones.

Prasad (2016) in his article mentioned that Indian youth has a strong inclination towards the gadgets with
preference for latest software. The factor of success for smartphones over the vears has been not only in their
ability to run well, but also to give access to extended capabilities via third-party app.

Sumathi K. and others (2018) in their study explored the impact of Smartphone on academic performance of
higher learning students. They mentioned that Smartphone and tablets play a very significant role in higher
learning student's information seeking behaviour in meeting their learning and research needs. It was revealed
that there is high level of awareness about the usage of smart phones by higher learning students for their
academic works. Smart phones have tremendous impact on their higher education, especially with easy
internet access and high speed browsing.

Barbara Culiberg and Ica Rojsek (2010), investigated an administration quality in retail managing an account
in Slovenia and its impact on consumer loyalty. Through component examination and relapse investigation,
result recommends that every one of the four measurements of administration quality and additionally benefit
extend impact consumer loyalty. The data given by this examination can be utilized while outlining advertising
procedures to enhance consumer loyalty in retail managing an account.

18
Androulidakis; G. Kandus (2011) connected the brand of cell phone to clients' security rehearses, Clients
indicate distinctive conduct in a variety of qualities, as per the brand of the cell phone they are utilizing. All
things considered, there is a classification of territories, diverse for each brand, where clients are obviously
inadequate with regards to security mind, potentially because of absence of mindfulness. Such a classification
can help telephone producers improve their cell phones with respect to security, ideally straightforwardly for
the client.

Luca Petruzzellis (2010), referred and concluded that technology now a days is overcome by customer
preference and needs. In particular, the role of the brand is to be analyzed with respect to its influence in
shifting customer preference from the technical preferences (tangible elements) to the emotional/symbolic
once (intangible elements).The researchers had provided an analysis of the brand attitude and perception tested
and viewed through user eyes.

Tajzadeh Namin A.A ; Rahmanivahid ; TajzadehNaminAidin(2012)analysed that the process of deciding

over(choosing)a brand may be influenced by situation and content. The findings suggest a significant
relationship between the variables “brand attitude”, “corporate attitude”, and “product (cell phone)Choice”. In
addition, no significant relationship was found between individual decision-making processes (independent or
mediated) and product choice

Chowdhury and Rahman ( 2013)studied the relationship between demographic variables on the brand
preference an identified the attributes that affect the choice behaviour of mobile handset as well as why the
young consumer give special emphasis to some particular factors in Chittagong metropolitan city. Young
respondent’s emphasis Lee importance on durability, price, advice and opinion because of their switch
switching attitude. As a whole, Samsung is competing with industry leader Nokia, Symphony, Sony Ericson
and other brands grab a share of the youth market.

Mesay sata (2013) conducted a study on factors affecting consumer buying behaviour of mobile phone devices
specifically in Hawassa town, Ethiopia. Accordingly, the result of the study showed that the six independent
variables i.e. price, social factors, durability, brand name, product features and after sales factors will influence
the dependent variable i.e. decision to purchase (Mobile phone buying decision).

• According to Karjaluoto et al. (2005), the factors like price, size, brand, interface, properties and some other
factors like salesman are the most influential factors that affect the choice amongst mobile phone brands in
the market. The result of their survey on factors affecting consumer choice of mobile phones in Finland
indicated that product feature, price, size and user-friendly menu features of the cellular phones are the most
determinant factors affecting the choice of mobile phones.

• Vishesh, Sanjiv Mittal and Shivani Bali (2018) explained issued a journal on Journal of management with
the tittle factors affecting consumer buying behaviour towards mobile phones in which ten major factors (i.e.
physical dimensions, design and colour, battery life, camera quality, speed, recommendations and reviews,
brand name, price advantages, availability, and exchange possibility) that influence the customer satisfaction.
19
• MACRO (Market Analysis & Consumer Research Organization, 2004) conducted an investigation on mobile
phone usage among the teenagers and youth in a specific region in Mumbai city. In this research researchers’
concentrates more on the teenagers and youth respondents whose age is not more than 30 years.

Sabnam Shreshtha (2016) attempted to investigate consumer purchasing motives in cellular phone market by
conducting research on the buying behaviour of young consumers in Kathmandu, Nepal. This study aims to
explore future potential in consumption of future smart phones in Nepal by evaluating two major stimuluses
such as marketing stimuli and environmental stimuli and also concentrates on four social classes stated by
Kotler & Armstrong (2012).

Rodolfo Martinez Gras: Eva Espinar Ruiz (2012) highlight another measurement in data and innovation
concerning young people in Spain. The primary goal of this article is to break down the connection amongst
Information and Communication Technologies and Spanish young people. In particular, analysts have
concentrated, through subjective strategy, the qualities of adolescents' get to and employments of mechanical
gadgets. furthermore, investigated the reasons that spur the usage of Information and Communication
Technologies, highlighting a cozy connection amongst advances and companion correspondence and
stimulation. Despite what might be expected, there is an under-usage of every one of these gadgets for
instructing and learning purposes.

Wafa' N. Muhanna; Awatif M. Abu-Al-Sha'r (2009) goes for examining Jordanian college undergrad and
graduate understudies' states of mind towards the learning condition where PDAs are utilized as learning
apparatuses in classroom.
The review contained two free factors, level and sexual orientation, as covariates.
The discoveries show that students are more great to phone condition than graduate understudies. The review
likewise uncovers that mobile phone has more impact on male understudies than on female understudies.
2.10. Nasr Azad; Ozhan Karimi; Maryam Safaei (2012) had exhibited an exact review to explore the impacts
of various advertising endeavors on brand value in portable industry. The outcomes demonstrate that there is
a positive and significant connection between advertising blend endeavors and brand value. As it were, more
promotions could help better market presentation, which implies clients will have more mindfulness on market
attributes. Among every single blended exertion, ensure impacts more on brand value, which implies
customers mind more on item benefits than different elements. At long last, among various attributes of brand
value, item selectiveness assumes an imperative part. As it were, individuals are
occupied with having selective item, which is unique in relation to others.
2.11. Nasr Azad; Maryam Safaei (2012)states that there are many confirmations
to trust that clients select their items in light of brand name. Items likewise keep up their own qualities, which
make them differentiable from others. In this paper, specialists have introduce an observational review to
decide imperative elements impacting clients' obtaining expect for PDAs in capital city of Iran, Tehran. The
aftereffects of the review demonstrate that there are some positive connections
between selective name and quality recognition, between restrictive name and verbal ad, between quality
discernment and devotion, between informal promotion
and brand name and between brand name picture and brand name.
20
Jonathan, Lee ‚Janghyuk, Lee and Lawrence, Feick, (2001) examined that directing part of exchanging
expenses in the consumer loyalty dependability connect; and to distinguish client portions and to hold them.
In this way the reasons for this paper are: to inspect the directing part of exchanging expenses in the consumer
loyalty faithfulness connect; and to distinguish client portions and afterward dissect the heterogeneity in the
fulfillment unwaveringness interface among the diverse sections. An observational case in view of the cell
phone benefit showcase in France demonstrates bolster for the directing part of exchanging expenses.
Administrative ramifications of the outcomes are talked about.

The Dream Catchers Group (2008) researched if statistic factors or if phone highlights included on telephones
understudies effectively possessed were prescient of youthful purchasers' impression of packaged components.
Also, this concentrate embarked to decide whether there were any huge contrasts in understudies' impression
of packaged elements crosswise over statistic factors (provincial opposite HBCU, sexual orientation, review
level, cell phone brand, major, and age).

Oyeniyi, Omotayo Joseph - Abioudun, Abolaji Joachim (2010) accentuation on client dependability and client
exchanging cost. Exchanging expense is a standout amongst the most talked about contemporary issues in
promoting in endeavor to clarify shopper conduct. The present research examined exchanging expense and its
associations with client maintenance, faithfulness and fulfillment in the Nigerian media transmission
showcase. The review finds that consumer loyalty decidedly influences client maintenance and that
exchanging cost influences essentially the level of client maintenance.

In the study done on the effect of promotional activities on the brand decision in mobile phone industry by Liu
(2002) The factors affecting buying decision of customer on the mobile phone in Asia were analysed. The
study found that the choice of mobile phone brand was based on two different attitudes. These two different
attitudes were the attitude toward the mobile phone and attitude towards the network. The most influencing
factors while purchasing the mobile phone were new features in the mobile phone other than the bigger screen,
size and enhanced capacity.

Wilska (2003) in this study on consumer decision on buying mobile phone depended on rational and emotional
factors. Most of the customers were influenced by both emotional and rational factors. Emotional factor were
(applications, camera, game, and music) besides rational factors (communication and time management) the
study found that young customers preferred more emotion factors as compared to other factors.

Heikki Jari, Manne, Timmo and Marrijuka (2005) in this study the factor affecting consumer choice of mobile
phone. This study was carried out in Finland in their study they concluded that mobile phone market is the
most turbulent market in the present scenario. They focused on customer buying decisions process and they
shed light on the factors that were affecting consumer choices. They found in their study that when the
consumer bought a mobile phone the technical problems were the main factor to change their mobile phone.
There were factors as well which were affecting the actual choice of mobile phone i.e., brand, price, interface
and properties.

21
(Chirag V. Erda, 2008) Concluded that there is no significant difference in price and style consciousness
between rural and urban consumers but there was a significant difference of functions, quality and brand
consciousness between rural and urban customers for buying a mobile phone

Mohankumar and Dinesh Kumar (2008) a study on customer purchase behaviour toward mobile phone with
reference to erode city in India. This study was conducted on purchase behaviour towards mobile phone. The
customers are the buyer who wants happiness from the product utility. The customer would like to touch and
feel the product when they buy. From this study, it's clear that factors influenced their buying behaviour while
choosing a mobile phone. This study also helps to know the satisfaction level of customer toward different
mobile phones.

While price and features were the most influential factors affecting the purchase of a new mobile phone, its
network accessibility, clarity was also regarded as the most important factors in the choice of the mobile phones
(Sheetal Singla, 2010).

Factor influence of product attribute on the mobile phone in university among undergraduate student in Kenya
was conducted by Malasi (2012). The researcher found that there were various attribute which influenced the
undergraduate students on the various brand. Like as colour, name visibility, and mobile phone of the different
model, safety, physical appearance, design and price of the mobile phone.

Mesay sata (2013) conducted a study to understand the factor affecting consumer buying behaviour on mobile
phone devices hawassa town. There were so many factors which influenced the buying behaviour. But
researcher found six important factors such as price, brand name, product feature, social group, after sale
services and durability. From that, it's clear the above factor work as a motivational force that influences for a
mobile phone purchase decision.

22
 CHAPTER:-4

DATA ANALYSIS , INTERPRETATION & PRESENTATION

The respondents were asked to mark the 10 factors that affects the decision making process while buying a
mobile phone (such as brand image and quality, mobile phone features, aesthetics, pricing, availability,
advertisements, connectivity, recommendations and reviews, user friendliness and exchange possibility and
post purchase services) according to their importance to them. A five point Likert scale was provided ranging
from “highly important” 1 – “highly unimportant” 5.

In marketing research, the data sources can be divided into primary and secondary data sources. To achieve
the objective of the study, study uses only primary sources of data for better accuracy. This questionnaire aims
to gather information related to customer’s preferences on factors that affects the buying decisions of mobile
phones. The secondary data also used to some extent. The secondary data means already available data.

23
Interpretation:
The graphical representation shows that out of the 41
Respondents,
58.5% were male and 41.5% were female.

24
Interpretation:
The graphical representation shows that out of the 41 Respondents,70.6%
were between 18-24 and 25-36 were 12.5% of the age.

25
Interpretation:
The graphical representation shows that out of the 41 Respondents, 85.4%
were student and 14.6% were employees.

26
Interpretation:
The graphical representation shows that out of the 41 Respondents, 31.7% youth are using Apple which is in
blue colour, 29.3% are using Samsung which is in red colour, 7.3% are using Vivo which is in green colour.

27
Interpretation:
The graphical representation shows that out of the 41 Respondents, 41.5% according to them camera quality
is essential in a mobile phone 43.9% according to them battery life is essential,12.2% storage is essential, 2.4%
gaming capabilities is was in a mobile phone.

28
Interpretation:
The graphical representation shows that out of the 41 Respondents, 63.4% according to them reviews are
influences them while buying a new phone, while 14.6% are brand reputation and price influences, 17.1% are
price..

29
Interpretation:
The graphical representation shows that out of the 40 Respondents, 35% is Apple which is their favourite
brand, 10% is Vivo, 25% is Samsung and others.

30
Interpretation:
The graphical representation shows that out of the 41 Respondents, 35.3% according to them processor is the
particular reason for choosing the phone over others, 23.5% according to them camera and price is the reason
for choosing the mobile while 11.8% is for the RAM and 5.9% for the design choosing the mobile phone over
others.

31
Interpretation:
The graphical representation shows that out of the 41 Respondents, 37.5% are for the quality factor for decision
making in purchasing of mobile, 32.5% brand image factor, 15% price factor, and 10% function and
advertisement factor for decision making in purchasing of mobile.

32
Interpretation:
The graphical representation shows that out of the 41 Respondents, 84.6% would not like to switch the other
brand and 15.4% would like to switch the brand.

33
Interpretation:
The graphical representation shows that out of the 41 Respondents, 63.4% technological advancement is the
reason for changing the mobile phone while 17.1% Function and 12.2% Style and Service is the reason for the
changing the mobile phone.

34
 CHAPTER:-5
CONCLUTION’S & SUGGESTION’S

In this dynamic world, the mobile phones are becoming an inspirable and inevitable part of one’s life. The
Study showed that Xiaomi is the most preferred brand among Youngsters and the most of the youngsters are
satisfied by the various range of mobile phone brand available in the market. There is a significant difference
in preference level of brand, awareness, purchasing frequency and gender. Also, observed from the study that
mobile phone is purchased by the customer frequently on new model, advance technology, special offerings,
good brand name with reasonable price and also based on quality of mobile phone. From the study we
identified technological advancements is the reason for changing mobile phone, the company should adopt
these changing technologies in order to develop new customer and also to retain the existing ones.

Quality is most important inflectional factors & advertisement is least important factor while purchasing
handset of mobile phone. Majority of youth prefers to buy new smart phone on the basis of quality & they
prefer those phones that have 1-2 years of life span only. After that handset will be replaced with latest model.
Youth on the basis of quality and income prefer MI and iPhone this concludes that the youth are price conscious
also. There is a strong relationship between the income (earning capacity) and phone buying capacity. The
male respondents are free to share their responses as compare to female respondents.

When the questions related to the factors determining the buying decision of mobile phone were analysed, it
was found that the quality factor is the most preferred factor while purchasing a phone among college students.
The most liked Smartphone brand among college students was Xiaomi. Next preferred brand was Vivo, third
preference was for Oppo. The mobile phones of Lenevo and Realme were also purchased by the respondents.
The testing of hypothesis showed that there is significant difference on basis of quality among male and female
college students. The male students were more inclined towards quality variables as compared to female
college students. Thus the null hypothesis is rejected.

The present study on consumer preferences towards Smartphone among youth shows that the respondents are
very much concerned about the price, quality and brand image of the mobile phones purchased by them.
Further, it was observed that there is significant difference between the purchase behavior of male and female
college students. The male college students are more inclined towards quality factors and price equation.
Female respondents were more interested in the appearance and design of the phone. The usage pattern of
mobile phones among both males and females was similar. The important reasons for choosing a particular
brand were better storage, faster processing and better camera specifications among youth of Jaipur city. It can
be summarized that the consumption of mobile phones among college students has increased very much. They
use mobile phones for studying and project preparation also. The students find it comfortable to handle various
tasks like messaging, chatting, calling, surfing, listening music, watching videos etc. with help of Smartphone.
The respondents cannot imagine their life without Smartphone. With the growing importance of Smartphone
in human life, the competition among the mobile phone industry will become tough in the coming years.

35
The aim of this study is to determine brand preferences of mobile phones among teenagers and youth. This
will help to identify the antecedents, that influence the brand preferences towards choosing a mobile phone
and to analyse the relationship between those factors, with 17 samples in the Mumbai region. The finding
shows that the eight factors such as mobile phone features, aesthetics, pricing, availability, connectivity, the
recommendations and reviews, user friendliness and exchange possibility and post purchase services effects
the brand image and quality in the minds of teenagers and youth.

The overall results proved that the respondents have perceived smartphone in a positive manner. The results
can be used by Smartphone manufactures and marketers to know the needs of their target customer and
design the product and formulate marketing strategies accordingly. The study shows that the product features
like camera, battery life, processing speed are the most important factors in purchase decision. Further
Product feature, price, peer group and brand image are the key influencing factors to buy the smartphone.
Though the price of smartphone is high the customers are ready to pay and afford it for their social need.
From this study it is clear that the Smartphone has become an essential part of life and it made life easier.
Thus, there is ample opportunity and scope for Smartphone brands to get a larger pie in market share as long
as they are to innovate in the industry. In total, it is found that Technical Features are most considered
attributes of mobile phone followed by Looks, Image & Resource, Entertainment, Basic Attributes, Storage,
Display, Way Entertainment, User Friendly and Weight. Technical attributes includes Internet/GPRS, Huge
Memory, Sending & receiving e-mail, Strong battery back-up, Operating System, Video-calling Facility and
MultiWindow. Looks encompasses Shape, Size, Colour, Touch-Screen, Screen size and Social Media
Application. Image with Resource involves Dual Sim, Wi-fi and Brand Image. Entertainment attributes
incorporates Bluetooth, MP 3 Player and Playing Games. Basic Attributes includes Communication and
Design & Appearance. Storage & Display attributes contains Video-recorder, Sophisticated and Good audio-
video quality. Way Entertainment attributes embraces Camera and FM-Radio. User friendly attributes
includes Key Pad and as a modem. From the findings, it can be concluded that most of the aspects on focus
had influence on respondents’ perception on brand. However, among other factors, complementing
respondents’ lifestyle and recommendation by seller had comparatively low affirmation. This implies that the
recommendation by seller has little impact in influencing customers’ perception on brand. A look at the
needs that influence usage and perception, it was found out that respondents’ agreed to most aspects.
However, the following needs attracted low level of affirmation: to fit in social circles, to influence non users
to acquire smart phones and no need to work overtime and during weekends. This reveals that any change to
the above aspects will have limited impact on the brand perception on brand. A look at the relationship
between brand perception and brand performance revealed that there was a moderate relationship. A look at
correlation between variables revealed that the relationship between experience, opinion and quality was a
good one. It is important to note that price had a weak relationship between price and other variables. This
reveals that any change on price will have limited influence on brand performance.
This study has facilitated the investigation of the emerging pattern of cell phone use. The use of cell phones
is so firmly entrenched in the behavior of young people that symptoms of behavioral addiction, such as using
a cell phone, interfere with their daily activities. Each product has its place in the customer's mind and brings
a set of perceived prices higher than those of other competing products. The product serves as a guarantee to
customers of product performance. The product promises the customer to deliver the stated benefits.
Customers choose those products that meet or fulfill their needs. From research it can be concluded that
management students prefer My type of mobile phone as it brings a higher value than competing products.
Most students find information about cell phones on television, in newspapers, and on the Internet.
Management students love mobile phones that provide services such as 4G (LTE), memory and internet

36
services. They use various phone accessories such as Bluetooth, camera, memory card, dual SIM card, USB
data cable and headphone. Cell phones that provide these services and durability are the most popular types.
The transfer of management students in 1 to 3 years due to new cell phones coming with new technologies
and technologies. From this point of view it can be concluded that customers are looking for a low-cost
mobile phone with a variety of features that enable them to communicate and access information in a variety
of ways. In addition to the positive benefits such as using a cell phone to connect / call family, friends, etc.,
this study also identifies the characteristics of those young people and adults who are at risk of becoming
overly involved with their cell phones I am the most brand brand of college student. Product attributes
influence the purchase decision for people of all ages and educational backgrounds. Youth monthly family
income affects the amount of time they spend on their mobile device. Users in the 16-24 age group prefer
Android and 4G (LTE) phone attributes. Product features such as touch-pad, fingerprint sensor and memory
card affect the mobile phone's product preferences. Most Sanjivani students have a mobile phone worth
more than 20,000 while very few have a mobile product priced at less than 10,000. The purpose of using the
phone as a phone, camera, memory etc determines the product choice for users. Both male and female users
have the same duration of use of the mobile product 2 years on average.
Each brand has its position in the customers mind and delivers a set of values perceived higher than those of
other competing brands. A brand serves as an assurance to the customers about product performance. Brand
promises the customer to deliver the stated benefits. Customers prefer those brands which fulfill or out
perform their requirements.
From the study it can be concluded that the people in Virar city prefer MI brand of mobile phone as it
delivers the higher value of money than the competing brands. Most of the people get information regarding
mobile phones from television, newspaper and internet. Virar people prefer the mobile phone which provides
the facilities like GPRS, SMS and E- mail facility, and downloading facilities. They use the different phone
accessories such as Bluetooth, camera, memory card, dual SIM card, USB data cable and head phone. The
mobile phones which provide these facilities are mostly preferred brands. The people in virar change their
handsets in 1 to 3 years because of the new mobile phones are coming with the updated technology and
innovation.
They are ready to spend Rs. 10000 to Rs. 20000 on the branded mobile phone which is not related to their
family income levels.
From this it can be concluded that customers want the mobile phone with medium price range and with
different facilities which enables them to communicate and get information in different ways.

Limitations of the study

The study has some limitations such as,
• Research only concentrates on teenagers and youth respondents (only age group below 25 years).
• Only 17 respondents consisting of smart phone users have been taken as a samples, which is a very small
size when compared to mobile market.
• Sampling method used was simple random sampling so the result may not be completely accurate and
precise.
• Survey are being confined to limited parts of Mumbai due to limitations of time.

37
 SUGGESTIONS:-

 Mobile brand should be updated on the basis of current technological advancements and needs to be
innovative.
 Mobile brand should take necessary steps to solving the grievance of customers.
 As quality is more important factor so availability of service centre is an essential condition .It is
suggested that service centre should be available at Mumbai.
 Samsung should provide better service and try to avoid hanging problem related with the mobile phone
 Companies should offer more mobile phones within the range of less than 10000.
 Companies should offer a slim, large screened and medium sized mobile phone.
 Asus should try to avoid heating problem of mobile phone.
 Battery life is most respondents dissatisfied about, companies should take special care in this regard.
 Innovative features are expected by respondents.
 Company should focus on inbuilt free games, quality sound quality and video quality.
 More featured, user friendly and at reasonable prices cell phones are expected by customers.
 Thus this perceived quality with reasonable prices must be fulfilled by the players in the industry.

In the study area, the mobile phone features such as e-mail, mobile banking, online payment and voice
chatting was used by the respondents very limited only. This is because of non availability of these features
at the respondents' mobile handset. Hence, the mobile phone companies should try to extend these features at
affordable prices at their mobile handsets.
• As most of the respondents have opined that they had dissatisfied with Wi-Fi connectivity and Bluetooth
option, hence, the manufactures should pay attention to redress these problems on Wi-Fi connectivity and
Bluetooth features.
In the study area none of the respondents have opined to prefer the small players like Motorola, micromax,
karbonn, Videocon and a like at their repurchase. In order to retain the customers these mobile phone
companies may extend the guarantee and warranty period with free of cost.
• Most of the respondents have suggested that they are in need of mobile phone tracker feature. But most of
the mobile phone companies introduced even at their latest models without this feature. They should
consider on this feature at their next model.

38
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