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DIFFERENT FEATURES PEOPLE CONSIDERED WHILE PURCHASING MOBILE PHONE

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PREFACE

The project gives an insight of the telecom sector. It basically helps understanding the brand

preference of students with regard to mobile phones. It helps us to know what is the basis on

which consumers chooses a particular brand when he/she purchases a new handset.

The project will help to learn about the growing telecom sector in India. The research will

also bring to light what all factors a student considers at the time of purchase of a new mobile

phone.

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Introduction

The Cellular telephone (commonly "mobile phone" or "cell phone" or "handphone") is a

long-range, portable electronic device used for mobile communication. In addition to the

standard voice function of a telephone, current mobile phones can support many additional

services such as SMS for text messaging, email, packet switching for access to the Internet,

and MMS for sending and receiving photos and video. Most current mobile phones connect

to a cellular network of base stations (cell sites), which is in turn interconnected to the public

switched telephone network (PSTN) (the exception is satellite phones. Cellular telephone is

also defined as a type of short-wave analog or digital telecommunication in which a

subscriber has a wireless connection from a mobile telephone to a relatively nearby

transmitter. The transmitter's span of coverage is called a cell. Generally, cellular telephone

service is available in urban areas and along major highways. As the cellular telephone user

moves from one cell or area of coverage to another, the telephone is effectively passed on to

the local cell transmitter. A cellular telephone is not to be confused with a cordless telephone

(which is simply a phone with a very short wireless connection to a local phone outlet). A

newer service similar to cellular is personal communications services (PCS).

HistoryInformation technology dates back to 5000BC, when people started using alphabets as a

medium of communication. However, its actual emergence started with the first ever use of

the computer. The real modern mechanical computer was conceived in 1822 by Charles

Babbage. Then came the electromechanical age in 1840s with the discovery of different ways

to harness electricity and the information was converted into electric impulses. This led to the

beginning of telecommunication and telegraphy in late 1800s. As the loading coil and

vacuum tube made possible the early telephone network, the wireless revolution began onlyafter low cost microprocessors and digital switching became available.Since then, four

generations of computers have evolved. Each generation represented a step that was

characterized by hardware of decreased size and increased capabilities. The first generation

used vacuum tubes, the second transistors, and the third integrated circuits. The fourth (and

current) generation uses more complex systems such as Very large- scale integration or

System-on-a-chip. Mobile rigs were the beginning of mobile phones for use in vehicles such

as taxicab radios, two way radios in police cruisers, and the like. A large community of mobile radio users, known as the mobileers, popularized the technology that would

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eventually give way to the mobile phone. The concept of using hexagonal cells for mobile

phone base stations was invented in 1947 by Bell Labs engineers at AT&T and was further

developed by Bell Labs during the 1960s. One of the first truly successful public commercial

mobile phone networks was the ARP network in Finland, launched in 1971.The first hand

held mobile phone to become commercially available was the Motorola DynaTAC 8000X,

which received approval in 1983. Until the late 1980s, most mobile phones were too large to

be carried in a jacket pocket, so they were usually permanently installed in vehicles as car

phones. With the advance of miniaturization and smaller digital components, mobile phones

got smaller and lighter.

Current scenario

Mobile phones have gained a lot of popularity and are the considered to be great multimedia

tools. Mobile phones are being used for entertainment purposes due the introduction of new

features everyday. They have become more than just call making and receiving devices.

Mobile phone handsets now have more business-friendly applications that can enhance

anybodys business. With emerging technology, mobile phones have become more thancommunication devices; they are the tools to stay ahead of competitors and peers in the

present times. Soon mobile phones will evolve from communication tools to integrated

communication devices, media terminals, credit cards and remote controls.

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Objectives

Primary objective

Analysis of the various features considered by the consumers before purchasing

mobile handset.

Secondary objectives

To know which Brand is preferred by the customers most and why?

To know what range of price customer is ready to pay for handset now days.

To know who influences the customers to buy specific brands mobile.

To know different factors considered by the customers before buying mobile phones.

To know the reasons why customers are shifting from one brand to another brand.

Limitation of the Study

Though full efforts have been made for the completion of the project, there are some

limitations, They are as under.

Some people use handsets just for the purpose of communication so they dont

consider the other features before buying. In rural area there are lack of awareness about the use of the various features so

study results will be limited.

Though primary data collection is done with the help of questionnaire. It is not 100%

reliable.

The whole research need a lot of time for accurate result so time Constraint for

preparing Management Thesis.

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Literature Review

According to Business Today (May 3, 09) In India the number of mobile subscribers will

cross 400 million, making it the w orlds second largest market.Next revolution, the mobilephones has moved from being a simple communication tool to an all round entertainment &

information devices. Services are being enabled increasingly by more & more powerful

processors onboard mobile devices. 10% of the 1.2 billion handsets sold in 2008 as smart

phones.

According to The Economics Times (Apr 2008) B K Modi controlled Spice Mobiles today

launched the first Indian branded 3G and CDMA200 handsets in technological collaboration

with Qualcomm and said it is targeting half a million of these handset sales in the current

fiscal. We aim to sell four million standard handsets in the current fiscal and target half a

million 3G handsets sales separately", Spice Mobiles Vice President Dilip Modi said C-810

(the CDMA enabled handset) is priced at Rs 6500 while the GSM 3G handset is priced at Rs

8500. Informa Telecoms and Media (Mar. 09) predicts the global mobile market is

expected to add more than 1 billion subscribers and reach almost 3 billion overall or 43

percent penetration by the year 2010. While Asia, the Middle East and Africa will experience

the highest growth rates, Informa reports "several countries are already reporting penetrationrates of over 100% and Western Europe's regional penetration is set to breach 100% in a

couple of years." Indian Cellular Association (March 09). says that a record addition of 15

million new telecom subscribers in January 2009 has cheered the mobile handset market.

After a lacklustre 2008 when the Indian cell phone market saw near flat sales growth, the

handset turf has grown 10% in January, claims the apex national body of handset vendors.

Strategy Analytics offered their thoughts on the potential global mobile market, predicting

the "worldwide cellular user base will increase from 1.7 billion at the end of 2005 to 2.5billion by the end of 2010, a 38 percent penetration rate."

According to Union Budget 2008-09, Mobile phone users would now have to shell out more

money for buying new handsets, with the government proposing to levy one per cent excise

duty on them.

Phil Kendall at Strategy Analytics , commented, "Voice usage will increase from 5.6 trillion

minutes in 2005 to 12.6 trillion in 2010. GSM based systems will continue to dominate the

cellular landscape, accounting for 81 percent of subscribers and 76 percent of service

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revenues in 2010, though CDMA's more rapid evolution to 3G will see it dominate 3G

subscriber volumes in the medium term. "

Sony-Ericsson has emerged as the top company for the second consecutive year in overall

satisfaction by mobile handset users, edging out market leader Nokia and Motorola,

according to a survey. Motorola is No 2 on overall satisfaction score, displacing Nokia to the

third place.

DoT to Telcos (Oct 08) Concerned over security lapses in the use of cell phones without

proper security codes, government has asked mobile operators to strictly ensure that calls are

not processed on such handsets that cannot be tracked by sleuths. The security code known as

International Mobile Equipment Identity (IMEI) is a 15-digit number unique to a mobile

handset and this can help in tracking or blocking of the mobile phones.

Juniper Research estimates the "total mobile subscriber market will reach 2.7 billion by

2010 and that shipments of handsets will break the 1 billion mark by 2009 on the back of

emerging Asia Pacific markets and increasing replacement rates in mature markets. 3G

subscribers are predicted to grow from 30 million in 2004 to over 300 million by 2010."

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Research Methodology

This chapter describes the research methodology adopted to achieve the objectives of the

study. It includes the scope of the study, research design, collection of data, analysis of dataand limitations of the study.

Scope of the study

The scope of the study is to get the first hand knowledge about the various factors affecting

buying behavior of consumers towards different brands of mobile handsets in surat city. The

scope is restricted to study the factors affecting the preference of consumers while choosing a

mobile handset in surat city only. This is done to avoid perceptual bias and for providing

objectivity to the study.Research Design

The research design constitutes the blueprint for the collection, measurement and analysis of

data. It is the strategy for a study and the plan by which the strategy is to be carried out. The

research design of the project is descriptive as it describes data and characteristics associated

with the population using mobile phones. Descriptive research is used to obtain information

concerning the current status of the phenomena to describe "what exists" with respect to

variables in a given situation.Data Collection

Primary Data

Primary data is that data which is collected for the first time. It is original in nature in the

shape of raw material. For the purpose of collection of primary data, a well structured

questionnaire was framed which was filled by the respondents. The questionnaire comprises

of close ended as well as open ended questions.

Secondary DataSecondary data is the data which is already collected by someone. They are secondary in

nature and are in shape of finished product. Secondary data was collected so as to have

accurate results. Required data was collected from various books, magazines, journals and

internet.

Sampling Design

Sampling refers to selecting some of the elements in a population by which one can draw

conclusions about the entire population.

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Universe

Universe is the infinite number of elements which the researcher is targeting in his study.

Since the study is restricted to Surat city the universe for the study consists of all the mobile

phone owners in Surat.

Population

Population is finite number of elements which the researcher is going to target in particular

area. All the mobile phone owners in Surat city form the population for the study.

Sampling Unit

Sampling Unit is the single unit of the population. A single individual who owns a mobile

phone form the sampling unit of the study.

Extent

Extent refers to the geographical area where there is a scope of population. The extent of the

study is Surat City.

Sampling Technique

The selection of the respondents was done on the basis of simple random sampling technique.

Sample size

Sample size is the size of sample drawn from the population which is the true representative

of the research. The number of respondents included in the study was 100 for convenience in

evaluating and analyzing the data and because of time constraint.

Data Analysis and Interpretation

For the purpose of analyzing, raw data was summarized in a master table and from this table

the results have been carried out. The questions having multiple alternative choices were

analyzed by taking percentages and through various graphs.

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Industry Profile

The Global Cellular Mobile Industry:

The global mobile phone industry is based on many different manufacturers and operators.

The industry is based on advanced technology and many of the manufacturers are operating

in different industries, where they use their technological skills, distribution network, market

knowledge and brand name. Four large manufacturers of mobile phones are today dominating

the global mobile phone industry; Nokia, Sony Ericson, Samsung and Motorola. In addition

to these companies there are many manufacturers that operate globally and locally.

Brand

Units Sold

(inmillions)

Market share

2nd quarter,2009

Nokia 103.2 41.08 %

Samsung 52.3 15.39 %

LG 29.8 9.33 %

Motorola 14.9 9.46 %

SonyEricsson 13.8 8.22 %

Others 41 16.53 %

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Telecom Industry in India The telecom industry is one of the fastest growing industries in India. India has nearly

200 million telephone lines making it the third largest network in the world after

China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the

world. Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred

by the growth in demand in countries like India and China. Indias mobile phone subscriber base is growing at a rate of 82.2%. China is the biggest market in Asia Pacific with a subscriber base of 48% of the total

subscribers in Asia Pacific. Compared to that Indias share in Asia Pacific Mobile phone market is 6.4%.

Considering the fact that India and China have almost comparable populations,

Indias low mobile penetration offers huge scope for growth.

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The cell phones industry has shown a remarkable growth in the last decade. In 1989 the

number of its subscribers was zero in India. Indias love affair withcell phones started in themid-1990s, as the mobile revolution took hold and India had just 10 million mobile and

landline connections. Delhi was the first state to launch cell phones in India. Growth then

soared in the last four years due to regulatory change and falling costs of calls and handsets.

Indias wireless market is a test bed for alternative infrastructure, handsets,billing systems,business models and marketing strategies that will likely prove applicable to other developing

countries. On a numerical basis, India is the biggest growth market adding about 6 million

cell phones every month.

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Company Profile

NOKIA

Nokia Corporation is a Finnish multinational communications corporation, headquartered

in Keilaniemi, Espoo, a city neighboring Finland's capital Helsinki established in 1865. Nokia

is focused on wireless and wired telecommunications, with 112,262 employees in 120

countries sales in more than 150 countries and global annual revenue of 51.1 billion Euros and

operating profit of 8.0 billion as of 2007. It is the world's largest manufacturer of mobile

telephones: its global device market share was about 38% in Q3 of 2008, down from 39% inQ3 2007 and down from 40% sequentially. Nokia produces mobile phones for every major

market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia's

subsidiary Nokia Siemens Networks produces telecommunications network equipments,

solutions and services. Nokia has sites for research and development, manufacturing and

sales in many continents throughout the world. As of March 2008, Nokia had R&D centers in

10 countries and employed 30,415 people in research and development, representing

approximately 27% of Nokias totalworkforce. The Nokia Research Center, founded in1986, is Nokia's industrial research unit of about 800 researchers, engineers and scientists. It

has sites in seven countries: Finland, Denmark, Germany, China, Japan, United Kingdom and

United States. Besides its NRCs, in 2001 Nokia founded (and owns) INDT Nokia Institute of Technology, a R&D institute located in Brazil. Nokia's production facilities are located at

Espoo, Oulu and Salo, Finland; Manaus, Brazil; Beijing, Dongguan and Suzhou, China;

Fleet, England; Komrom, Hungary; Chennai, India; Reynosa, Mexico; Jucu, Romania and

Masan, South Korea. Nokia's Design Department remains in Salo, Finland.Nokia plays a very

large role in the economy of Finland: it is by far largest Finnish companies, accounting for

about a third of the market capitalization of the Helsinki Stock Exchange (OMX Helsinki) as

of 2007; a unique situation for an industrialized country. It is an important employer in

Finland and several small companies have grown into large ones as Nokia' co subcontractors.

Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In 2004 Nokia's share of

the Finland's GDP was 3.5% and accounted for almost a quarter of Finland's exports in 2003.

In 2006, Nokia generated revenue that for the first time exceeded state budget of Finland.

Finns the have ranked Nokia many times as the best Finnish brand and employer. Nokia brand

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valued at $35.9 billion, is listed as the 5th US company, and is the world's 88 AMR most

valuable global brand in Inter brand/Bu siness Weeks Best Global Brands list of 2008 (1st non-US company). It is then number one brand in Asia (as of 2007) and Europe (as of 2008), 23rd

most admirable Fortune's World's Most Admired Companies list of 2008 (tied with Exxom

mobile) 2nd in Network Communications, 5th non US company, and is the world's 88 th largest

fortune global 500 list of 2008, up from 119 of the previous year. As of AMR research Nokiasglobal supply chain ranks number two in the world.

MOTOROLA

MOTOROLA Electronics a wholly owned subsidiary of MOTOROLA Electronics wasestablished in January, 2003 after clearance from the Foreign Investment Promotion

Board(FIPB). The trend of beating industry norms started with the fastest ever nationwide

launch by MOTOROLA in a period of 4 and 5 months with the commencement of operations

in May 2003.

MOTOROLA set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in

2004, with an investment of Rs 500 Crores. During the year 2001, MOTOROLA also

commenced the home production for its eco-friendly Refrigerators and established itsassembly line for its PC Monitors at its Greater Noida manufacturing unit.

The Greater Noida manufacturing unit line has been designed with the latest technologies at

par with international standards at Korea and is one of the most Eco-friendly units amongst

all MOTOROLA manufacturing plants in the world. The year 2001 witnessed MOTOROLA

becoming the fastest growing company in the consumer electronics, home appliances and

computer peripherals industry. The company had till the month of October 2001 achieved a

cumulative turnover of Rs 5000 Crores in India since its inception in 2003 , making it the

fastest ever Rs 5000 Crores clocked by any company in the Indian consumer electronics and

home appliances industry. Having achieved this milestone, MOTOROLA achieved another

benchmark with the first ever sales of One Lakh ACs (Windows and Splits) in a calendar

year. MOTOROLA is poised to surpass its turnover target of Rs. 2700 Crores this year and

clock a turnover of Rs. 3000 Crores. This year, MOTOROLA has emerged as the leader in

Colour Televisions, Semi Automatic Washing Machines, Air Conditioners, Frost-Free

Refrigerators and Microwaves Ovens. In Colour Televisions having set the sales target of one

million units of Color Televisions for 2002, MOTOROLA has already achieved the one

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million mark in the month ahead of its target. MOTOROLA Electronics India is the fastest

growing company in the consumer electronics, home appliances and computer peripherals

industry today. MOTOROLA Electronics is continually providing superior technology

products & value for money to over 50 lacs households in India.

SONY ERICSSON

Corporate structure

Sony Ericsson Mobile Communications is a global provider of mobile multimedia devices,

including feature-rich phones, accessories and PC cards. The products combine powerfultechnology with innovative applications for mobile imaging, music, communications and

entertainment. The net result is that Sony Ericsson is an enticing brand that creates

compelling business opportunities for mobile operators and desirable, fun products for end

users.

Sony Ericsson Mobile Communications was established in 2001 by telecommunications

leader Ericsson and consumer electronics powerhouse Sony Corporation. The company is

owned equally by Ericsson and Sony and announced its first joint products in March 2002.Sony Ericsson products have universal appeal and are different in the key areas of imaging,

music, design and applications. The company has launched products that make best use of the

major mobile communications technologies, such as the 2G and 3G platforms, while

enhancing its offerings to entry level markets.

Sony Ericsson undertakes product research, design and development, manufacturing,

marketing, sales, distribution and customer services. Global management is based in London,

and R&D is in Sweden, UK, France, Netherlands, India, Japan, China and the US. The

management team is led by President Hideki Komiyama, a former senior executive of Sony

Europe and one of the key players in the growth of Sony in Europe; and Executive Vice-

President and Head of Sales Anders Runevad, the former President Ericsson Brazil.

Industry accolades

As new products are introduced to end user acclaim, existing products continue to receive

accolades and Sony Ericsson is today accepted as a world leader in design and innovation.

The globally acclaimed T610 and later generations of the companys productportfoliofrequently win awards. The GSM Association voted the V800 as Best 3G Handset for 2004, a

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fully-featured phone made for Vodafone with the full range of mobile entertainment features

and multi-directional camera, and the K750i received the TIPA Award 2005/2006 for BestMobile Imaging Device, chosen by 31 leadingEuropean photography/imagining magazinesand judged on quality, performance and value for money. In February 2007 the GSM

Association presented Sony Ericsson with the Best 3GSM Mobile Handset award for theK800 Cyber-shot phone.

Innovation in partnership

Sony Ericsson strives to be a cutting edge provider of applications, forging partnerships with

developers and content providers. Strategic agreement with partners such as Sony BMG is

one way in which the company is bringing the best and latest in entertainment content to its

users. Sony Ericsson has also activated a global sponsorship deal with the Womens TennisAssociation Tour, which was renamed the Sony Ericsson WTA Tour in January 2005. The

six-year title sponsorship is an unprecedented opportunity for Sony Ericsson to offer tennis

fans new ways to experience the game through mobile technology, connectivity and content.

In the mobile gaming market Sony Ericsson took the lead in 2004, being the first to launch

Java 3D-enabled handsets, and is forging ahead to bring 3D gaming to a wider audience

SAMSUNG

The Samsung Group is the world's largest conglomerate. It is South Korea's largest chaebol

and composed of numerous international businesses, all united under the Samsung brand,

including Samsung Electronics, the world's largest electronics company, Samsung Heavy

Industries, one of the world's largest shipbuilders and Samsung Engineering & Construction,

a major global construction company. These three multinationals form the core of SamsungGroup and reflect its name - the meaning of the Korean word Samsung is "tristar" or "three

stars".

The Samsung brand is the best known South Korean brand in the world and in 2005,

Samsung overtook Japanese rival Sony as the world's leading consumer electronics brand and

became part of the top twenty global brands overall. It is also the leader in many domestic

industries, such as the financial, chemical, retail and entertainment industries. Samsung's

strong influence in South Korea is visible throughout the nation, and is sometimes called the

'Republic of Samsung'.

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The 1990s saw Samsung rise as an international corporation. Not only did it acquire a number

of businesses abroad, but also began leading the way in certain electronic components.

Samsung's construction branch was awarded a contract to build one of the two Petronas

Towers in Malaysia, Taipei 101 in Taiwan and the Burj Dubai in United Arab Emirates

(founded by Callum Cuirtis), which is the tallest structure ever constructed. In 1996, the

Samsung Group reacquired the Sungkyunkwan University foundation. In 1993 and in order

to change the strategy from the imitating cost-leader to the role of a differentiator, Lee Kun-

hee, Lee Byung- chulls successor, sold off ten of Samsung Group's subsidiaries, downsizedthe company, and merged other operations to concentrate on three industries: electronics,

engineering, and chemicals (Samsung Electronics). Samsung is the world's largest manufacturer of Televisions and various other

consumer electronics. Samsung is the world's second largest mobile phone maker. Compared to other major Korean companies, Samsung survived the Asian financial

crisis of 1997-98 relatively unharmed. However, Samsung Motor Co, a $5 billion

venture was sold to Renault at a significant loss. Most importantly, Samsung

Electronics (SEC) was officially spun-off from the Samsung Group and has since

come to dominate the group and the worldwide semiconductor business, even

surpassing worldwide leader Intel in investments for the 2005 fiscal year. Samsung's

brand strength has greatly improved in the last few years. Samsung became the largest producer of memory chips in the world in 1992.

Samsung, the world's second-largest chipmaker after Intel, see Worldwide Top 20

Semiconductor Market Share Ranking Year by Year. In 1995, it built its first liquid-

crystal display screen. Ten years later, Samsung grew to be the world's largest

manufacturer of liquid-crystal display panels. Sony, which had not invested in LCDs,

contacted Samsung to cooperate. In 2006, S-LCD was established as a joint venturebetween Samsung and Sony in order to provide a stable supply of LCD panels for

both manufacturers. S-LCD is owned by Samsung and Sony 51% to 49% respectively

and operates its factories and facilities in Tangjung, South Korea. In 2008, Samsung became the largest mobile phone maker in the United States

and 2nd largest mobile phone maker in the World.

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ANALYSIS AND INTERPRETATION

In this part analysis of the various features considered by the consumers while purchasingmobile handset has been done .

Therefore this part deals with analysis and discussions of the project. Results of the study

Table 1: Showing number of respondents owing a mobile phone

Answer No. of Respondents %

Yes 50 100%

No 0 0%

Respondents owing a mobile phone

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Table 2: Showing different brands of mobiles phones used by the

respondents

Brands No. of respondents %

Nokia 28 56%

Sony Ericsson 4 8%Motorola 11 22%

Samsung 4 8%

Others 3 6%Total 50 100%

Different brands of mobiles phones used by the respondents

Interpretation:

From the above table and figure, we can conclude that out of 50 respondents 56% have Nokiahand set, 22% use Motorola , 8% have Sony Ericsson and Samsung each. Apart from these brands 6% of respondents have other brands like LG, China mobile etc. Its evident from thefigures that Nokia is most preferred brand of the people in Surat city but Motorola is alsocapturing market very fast as Motorola is on 2 nd place.

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Table 3: Showing respondents using same brand as they had earlier

Responses Respondents %

Yes 24 55%

No 20 45%

Total 44 100%

Respondents using same brand as they had earlier

Interpretation:

From the above, it is interpreted that 55% of the respondents had same brand of mobile handset earlier while 45% had different brands while few people have there first mobile handset.45% of people had switched over to new brands because they want new features and advancetechnology in their handset which is provided by other brand and also due to inefficiency inearlier brand. But above figures conclude that 55% of the respondents are brand loyal andthey are totally satisfied with the quality and services in their handset.

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Table 4: Showing reasons for using mobile phone by the respondents

Reasons No of Respondents %

Business transactions 17 34%

Status 7 14%

Dont have landline 11 22%

Others 15 30%

Total 50 100%

Reasons for using mobile phone

Interpretation:

Above table and figure depict that 34% of respondents use mobile for business transactions asthey have business and now a days for a business man or a working person mobile phone ismust so majority are using it for business transactions, 14% use it as a status symbol as theyare using high priced mobile with various features which shows there status and which is notaffordable for everyone, 22 % use mobile because they dont havelandline connections athome or at the office and the rest 30% of respondents have other reasons like necessity,reducing communication gap, to stay in touch with friends and relatives or the student whoare living in hostel in other city so to keep in touch with there family etc. But the interestingfact which is come to know is that now a day people prefer mobile phone in place of land lineconnection so the demand of mobile phone has shown tremendous growth in past few years.

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Table 5: Showing the factors considered by respondent while purchasing amobile hand set

Factors No. of Respondents Average

Price 32 0.26

Appearance 15 0.12

Brand 27 0.22

Features 38 0.32

Easy to carry/Weight 9 0.08

Total 121 1

The factors considered by respondent while purchasing aMobile hand set

Interpretation:

From above it can be concluded that features in a mobile hand set is the most important factorwhich is considered by the respondents while purchasing the mobile phone. Price is also animportant factor as today many companies in this competitive world providing variousfeatures at lower prices and Indian public is also price sensitive so it can also be consideredas an important factor. Brand name is also the other very important factor influencing thepurchase decision as the brand name reflects the status of the person Blackberry, I-phone,Nokia N-series mobile etc. Easy to carry and appearance are the least important factor that isconsidered in the purchase decision. Its clear that people in Surat people give maximumimportance to features, price and brand name of a mobile phone. As there are mobile phonesfrom China is also available in the market with the same features people dont buy due tobrand name.

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Table 6: Showing the sources which influenced the buying decision of therespondents

Name of the source No. of Respondents %

Friend 20 40Family member 13 26

Advertisement 14 28Dealer 1 2

Other 2 4

Total 50 100

The sources which influenced the buying decision of the respondents

Interpretation:

From the above table it can be concluded that out of 50 respondents, 40% respondentspurchased the mobile hand set under the influence of their friends as friends who gave theadvice about latest phones as well as there previous experiences so major influencer are thefriends and 26% of the respondents are influenced by the family member so the companyshould design the promotional strategy which can attract the head of the family and manytimes the head of the family is giving money to purchase the mobile so family members arealso the major influencer, 28% respondents under the influence of various advertisements asnow days advertisement give all the USP of the mobile hand set and it is the best way of communication so it is also a major influencer, 2% respondents bought the mobile handset onthe suggestion of dealer and 4% respondents are influenced by the other like brand name andtheir previous experience with the brand.

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Table 7: Showing different purposes for which mobile is used by the

respondents

Diff. Purposes No. of Respondents Average

Receiving/making calls 43 0.33SMS/MMS 27 0.21Games 11 0.08E-mail/Internet 7 0.06Music 29 0.22Camera 13 0.1Total 130 1

Purposes for which mobile is used by the respondents

Interpretation:

From the above figures it can be concluded that in spite of using mobile phone for calls andSMS which are its basic purposes, people of Surat are using them increasingly for Music.People are also frequently using there handsets for taking pictures and playing games. UsingInternet on mobile phones is still not common in Surat very few people are using that. Theymostly use Internet on their phone to check share prices.

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Table 8: Showing ranking of various features of mobile handsets by theRespondents according to their preferences

Features Mean scores Rank

Bluetooth 3.52 2nd

MP3 Player 2.6 1st

Camera 3.66 3rd

Data Storage Capacity 3.96 4th

GPRS 5.06 5th

Touch Screen 6.46 7th

Motion Game 6.96 9th

Internet & Computer Facility 6.3 6th

Personal information management 6.48 8th

Ranking of various features of mobile handsets by the respondentsaccording to their preferences

Interpretation:

Since 1 is given to the most preferred feature and 9 to the least preferred feature in a mobilehand set, therefore from the table, we can conclude that MP3 player is the most preferredfeature in a mobile hand set. 2nd and 3rd ranks are given to Bluetooth and camera in themobile phone respectively. After them the features like Data storage capacity, GPRS, Internetand computer facility, Touch Screen, Personal Information Management. Motion games arethe least preferred feature in the mobile phones. Therefore its clear fr om above that people inSurat give more preference to the feature of MP3 player, Bluetooth and Camera.

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Table 9: Showing range of price that respondents like to spend on mobile

hand set

Range No. of respondents %Below 5000 11 22

5000-15000 29 58

15000-25000 7 14

Above 25000 3 6

Total 50 100

Range of price that respondents like to spend on mobile hand set

Interpretation:

From above it is interpreted that 58% of respondents prefer to spend between the ranges of Rs. 5000-15000, 22% people below Rs. 5000, 14% between Rs. 15000-25000 and 6% aboveRs. 25000. It concludes that mobile phone user who need mobile phone just forcommunication are not willing to spend much money behind it. But today there are manymobile handset companies which are providing all the features in the mobile handset atcheaper price like china but people are considering brand name also so many of that are readyto spend between 5000Rs to 15000 Rs. Another segment of people which also considermobile handset as there status symbol they are ready to spend no matter what amount of themobile handset but it should suit with there status.

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Table 10 Shows the awareness about the companys punch line and picturein the respondent

Company logo/ punch line No of respondents %

Sony Ericssion 23 26

LG 20 22

Motorola 14 16

Nokia 32 36

Total 89 100

The aw areness about the companys punch line and picture in therespondents

Interpretation:

From the above chart we can conclude that the logos and punch lines of the differentcompanies are very famous and people generally know the different company logos but inthat also people recognize Nokia company tagline very fast as Nokia is very famous brand inSurart. On the 2 nd rank its Sony Ericssion and after that there are LG and Motorola. But thereare people who dont remember Sony Ericssions, LGs and Motoraolas punch line they just

remember its logo and they found that these companies logo are very attractive.

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Table 11: showing features preferred in a particular brand of mobile phone

Company Camera Bluetooth Music PlayerExtendable

Memory

Name No. of RespondentsNokia 26 25 8 24

Motorola 6 12 4 11

Sony Ericsson 10 6 34 4

Samsung 8 7 4 11

Total 50 50 50 50

Features preferred in a particular brand of mobile phone

Interpretation:

From above table and figure it is concluded that people of Surat prefer Camera, Bluetoothand Memory features of Nokia and music player of Sony Ericsson. Other Companies likesMotorola and Samsung, in that companies mobile handset not many people like theirfeatures. Its the people who are using their first mobile phone of that company and donthave knowledge about other companys features are satisfied with the company.

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Table 12: Showing agreement level of the respondents on various factorsInfluencing purchase decision

Factors

StronglyDisagree

(-2)Disagree

(-1)Neutral

(0)Agree

(1)

StronglyAgree

(2) Mean

Repairable 7 (-2) 6 (-1) 1 (0) 12 (1) 24 (2) 40/50 = 0.8

Availability of spareparts 3 (-2) 4 (-1) 5 (0) 17 (1) 21 (2) 49/50 = 0.98

Proximity to serviceprovider 3 (-2) 7 (-1) 6 (0) 23 (1) 11 (2) 32/50 = 0.64

Promotional activities 5 (-2) 5 (-1) 16 (0) 17 (1) 7 (2) 16/50 = 0.32

Agreement level of the respondents on various factors influencing purchasedecision

Interpretation:

From the above table we can conclude that respondents strongly agree with the availability of spare parts factor of a mobile phone, the mean score being 0.98. Respondents are also to alarge extent agreeing with the factor on it should be repairable and proximity of serviceprovider but as far as promotional activities are concerned they are neutral towards thisfactor.

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Testing the Hypothesis

Ho: Various features do not matter while purchasing a mobile handset

H1: Various features matter while purchasing a mobile handset

Out of 50 respondents 38 respondents replied that they considered features of

mobile handset while purchasing a mobile handset.

p = 38/50 = 0.76 n = 50

q = 1- p = 1- 0.76 = 0.24

Now sample size is more then 30 so we will apply z test here

Z = p_____ = 0.76 = 0.76

p*q / n 0.76 *0.24/50 0.06Z = 12.67

= Z cal > Z tab

= 12.67 > 1.645

So, Ho is rejected.

So, we can conclude that people are considering various features while

purchasing a mobile handset,

12.67

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FINDINGS OF THE STUDY

1) Nokia is the most popular and widely used brand by the people of Surat city.

2) Brands like Motorola and Sony Ericsson are also gaining ground with regard to

popularity but they are mostly liked by the young generation.

3) 55% of the respondents used same brand earlier. It shows that most of the population

of Surat is brand loyal.

4) But on the other side 45% of response depicts the fact that people constantly switch

from one brand to another on the dearth of new features and inefficiency in the earlier

mobile.

5) Mobile phone is no more a status symbol now for the people of Surat city. It has

increasingly become a necessity to reduce communication gap and to maintain mobility.

It has also become an important tool for people specially the working population to carry

business transactions easily and quickly.

6) It is clear from the above that people of Surat give due importance to factors like

features, price and brand of mobile phones while making purchase decision.

7) Appearance comes after the satisfaction of above factors and easy to carry facility is

least considered during purchase decision.

8) Its clear that people in Surat buy a particular brand of mobile hand sets on the basis of the positive report about their performance received from their friends and family

members who already own that brand.

9) Advertisements also play an important role in influencing the buying decision of the

people in Surat.

10) Besides receiving and makings calls and SMS people in Surat are also using mobile

for listening music and camera.

11) Use of mobile for games has significantly reduced. And still people are not

accustomed with the use of internet on their mobile phones.

12) As far features of mobile phones are concerned itsclear from above that people inSurat give more preference to the features like MP3 player, Bluetooth and Camera.

Motion game is the least preferred feature in the mobile phones.

13 ) People in Surat city prefer to spend between Rs. 5000 and Rs. 15000 on a mobile

phone. It again depicts that mobile phones are no longer a status symbol for every onenow as it was in past years and it has become necessity.

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14) People of Surat city agree that factors like reparability and availability of spare parts

are important to consider while making buying decision for a brand of mobile phone. But

as far as promotional activities are concerned they are neutral towards this factor.

15 ) Most of the population is satisfied with their existing brands.

CONCLUSION AND SUMMARY

The Mobile phone represents the convergence instrument of the future. It have become anecessity for many people throughout the world. The ability to keep in touch with family,business associates, and storing data are only a few of the reasons for the increasingimportance of mobile phones. Cell phone manufacturers have produced a wide range of cellphones, which sell for prices that range from very inexpensive to thousands of rupees.The above findings and results reflected the preferences, expectations and satisfaction levelof mobile phones users in Surat city. The study would help the companies in understandingthe factors that influence the purchase decision of the consumers and their expectations fromthe mobile handsets. The results of the study indicate that mobile phones are no longer thestatus symbol for every people of Surat city. Features in a handset are preferred over theirprices. People here are techno savvy and require new innovative features in mobile phonesevery new day.Since the study was restricted to the Surat city so the there is need to study more in othercities to get the clear view of the findings.

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ANNEXURE

QUESTIONNAIRE

Personal Details:Name: _________________ Age: _________________Gender: _________________ Occupation: _________________Contact No. ____________________

Q1) Do you have a mobile phone?YES NO

Q2) a) Which brand of mobile hand set do you have? (Please Tick)i. Nokia ______ ii. Sony Ericsson _______iii. Motorola ______ iv. Samsung _______v. Any other (please specify) _______

b) Which model _________

If it is your first mobile phone then skip Q3

Q3)a) Did you have the same brand earlier?

YES NO

b) If NO then which brand you had earlier (please specify) _______

c) Why have you switched from earlier brand to latest one?i. Advanced technology ____ii. New features _______iii. Inefficiency in earlier mobile _______iv. Any other( please specify) _______

Q4) Why have you bought the mobile? (Tick one option)i. Business transactions ________ii. Status ________iii. Dont have landline phone ________ iv. Any other (please specify) ________

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5) Which of the following factors you considered while choosing the mobilehand set? (can tick more than one option)

i. Price ________ ii. Appearance ________iii. Brand ________ iv. Features ________

v. Easy to carry/Weight ________

Q6) Who influenced you to buy this brand? (Tick one option)i. Friend _______ ii. Family member _______iii. Advertisement _______ iv. Dealer _______v. Any other (please specify) _______

Q7) Which of the following feature of mobile is used by you most frequently?(can tick more than one option)

i. Receiving / making calls ______ ii. SMS/ MMS ________iii. Games ________ iv. E-Mail/ Internet ________v. Music ________ vi. Camera ________

Q8) Rank the following features of your hand set according to your preference(rank 1 to most preferred and accordingly)

i. Bluetooth _________ii. MP3 Player/ Video Player _________

iii. Camera _________iv. Data Storage Capacity _________v. GPRS _________vi. Personal information management _________

(Reminders, Meetings etc)vii. Touch screen______________viii Internet & computer facility____________ix motion game______________

Q9) If you want to change or buy new handset tick the range of price you wouldlike to spend on a mobile handset?

i. Below 5000 ______ ii. 5000- 15000 ________iii. 15000- 25000 ________ iv. Above 25000 ________

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Q10) Out of following tick the picture/ punch line you recognize:

__________ ____________

___________ ____________

Q11) Tick the following features you like in particular brand:

Q 12) Do you agree that following factors must be considered while choosing abrand of mobile hand set?

StronglyDisagree

Disagree Neutral Agree StronglyAgree

Repairable

Availabilityof spareparts

closeness toserviceprovider

Promotionalactivities

Nokia Motorola Sony

Ericsson

Samsung

Camera

Bluetooth

Music Player

ExtendableMemory

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BIBLIOGRAPHY

Next Mobile Revolution, Business Today

Rural To The Rescue, Business TodayT3-tomororw techn ology today, Vol.1, Issue 2

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Asia.html

http://www.forbes.com/feeds/businesswire/2009/04/24/businesswire123735951.html

http://digital-lifestyles.info/2007/03/05/worldwide-mobile-phone-sales-grow-21-in-2006/

http://www.gartner.com/it/page.jsp?id=501734

http://en.wikipedia.org/wiki/Mobile_phones http://www.rncos.com/Report/COM02.htm

http://economictimes.indiatimes.com/News/News-By-Industry/Telecom/Mobile-

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2010:-Nokia

http://www.zinnov.com/presentation/Mobile_VAS.pdf
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