A Study on Brand Preferences of Mobile Phones
A Study on Brand Preferences of Mobile Phones
UNIVERSITY OF CALICUT
BACHELOR OF COMMERCE
Submitted by
Ms. JISHA CL
DEPARTMENT OF COMMERCE
MARCH 2021
CALICUT UNIVERSITY
DEPARTMENT OF COMMERCE
CERTIFICATE
This is to certify that the project report entitled “A STUDY ON BRAND PREFERENCE
OF MOBILE PHONES” is a bona fide record of project done by BIJO BABU
ALENGADEN, Reg. No. CCASBCM214 under my guidance and supervision in partial
fulfillment of the requirement for the award of the degree of BACHELOR OF
COMMERCE and it has not previously formed the basis for any Degree, Diploma and
Associateship or Fellowship.
DECLARATION
I, BIJO BABU ALENGADEN, hereby declare that the project work entitled “A
STUDY ON BRAND PREFERENCE OF MOBILE PHONES” is a record of independent
and bonafide project work carried out by me under the supervision and guidance of Ms.
Jisha CL, Assistant Professor, Department of Commerce, Christ College, Irinjalakuda.
The information and data given in the report is authentic to the best of my knowledge.
The report has not been previously submitted for the award of any Degree, Diploma,
Associateship or other similar title of any other university or institute.
Date: CCASBCM214
ACKNOWLEDGEMENT
Above all, I wish to express my eternal gratitude to the God almighty under
whose divine guidance I have been able to complete this project work
successfully.
I would like to thank all the faculty members of Department of Commerce and
library Christ College Irinjalakuda and my friends and family for imparting
me the knowledge that formed the foundation for my project.
CONTENTS
APPENDIX
LIST OF TABLES
TABLE PARTICULARS PAGE
NO: NO:
4.1(a) Table showing the gender wise clasification 12
4.2(a) Table showing the age group 13
4.3(a) Table showing the occupation 14
4.4(a) Table showing the income 15
4.5(a) Table showing the education 16
4.6(a) Table showing the number of mobile phones 17
each individual owns.
4.7(a) Table showing the brand of mobile phone 18
they are presently using
4.8(a) Table showing the price willing to be paid 19
for a mobile phone
4.9(a) Table showing that how individual 20
considers owing a mobile phone as
4.10(a) Table showing the term of using the present 21
mobile phone brand
4.11(a) Table showing the general factors 22
influencing the purchasing decision
4.12(a) Table showing switching to other alternative 23
brands if they offer a similar but cheaper
smartphone
4.13(a) Table showing impact on decision if the 24
preferred brand is out of stock
LIST OF FIGURES
FIGURE PARTICULARS PAGE
NO: NO:
4.1(b) Figure showing the gender 12
4.2(b) Figure showing the age group 13
4.3(b) Figure showing the occupation 14
4.4(b) Figure showing the income 15
4.5(b) Figure showing the education 16
4.6(b) Figure showing the number of mobile 17
phones each individual owns.
4.7(b) Figure showing the brand of mobile phone 18
they are presently using
4.8(b) Figure showing the price willing to be paid 19
for a mobile phone
4.9(b) Figure showing that how individual 20
considers owing a mobile phone as
4.10(b) Figure showing the term of using the 21
present mobile phone brand
4.11(b) Figure showing the general factors 22
influencing the purchase decision
4.12(b) Figure showing switching to other 23
alternative brands if they offer a similar but
cheaper smartphone
4.13(b) Figure showing impact on decision if the 24
preferred brand is out of stock
expectations
4.20(b) Figure showing the satisfaction level based 31
on the features of the mobile phone
CHAPTER-1
INTRODUCTION
10
1.1 Introduction
A mobile phone, is a portable telephone that can make and receive calls over a
radio frequency link while the user is moving within a telephone service area.
Modern mobile telephone services use a cellular network architecture, and
therefore, mobile telephone is called cellular telephones or cell phones in North
America. In addition to telephony, 2000s-era mobile phones support a variety of
other services, such as text messaging, MMS, email, internet access, short range
wireless communications (infrared Bluetooth), business applications ,video games
and digital photography. Mobile phones offering only those capabilities are known
as feature phones; mobile phones which offer greatly advanced capabilities are
referred to as smart phones.
Today India is one of the most fastest growing economies all over the globe and a
live example which shows the development in the growth of the
telecommunication industry in India, especially in the field of cellular
communication. So, this study is mainly focused on the factors that can affect the
process of a person who works through the purchase decisions.
11
which have shown a huge increase in its use. Smart phones are used by the public
for browsing, communication, gaming, entertainment etc.
12
13
CHAPTER-2
REVIEW OF LITERATURE
14
Review of related literature is one of the first steps in research process. It consists
of summary of findings of research carried out in the past on the same directly and
indirectly related topics. This review provides insight to the researchers regarding
what is already known and what remains to be tested regarding the topic of
research
15
• Chu-Mei Liu (2002) in his study entitled the “The effects of promotional
activities on brand decisions in the cellular telephone industry” inferred the
branding is important to manufactures, retailers and consumers. Brand with
higher brand equity have higher sales. The growth of mobile phone
subscriptions is considerably faster in the Philippines. Advertising and
promotion are undertaken through cooperation between service providers
and mobile phone manufactures. The study tries to find out the effect of
different activities on consumer choice of mobile phone brands.
• Fred Robins (2003) in his study entitled ”A hierarchical model of
personality and cell phone addiction” analyzed the marketing of the next
generation of smart phones .It begins with the comments on the state of
telecom industry and draws attention to elements of technological and
product convergence, highlighting the point that while industry
convergence, on digital technology is a fact today’s mobile telephony
marketplace is nonetheless characterized by three generations of
technology and latest generation ,3G embraces three related but competing
standards. The research examines 2G ,2 and a half G and 3G. The study
identifies factors relevant to the marketing of 3G, including recognition of
geographical and user diversity and consequent need for marketers to keep
these various user perspectives in mind.
• Heikki Karjaluoto, etal (2005) in their study entitled “Factors affecting
consumer choice of mobile phones” had analyzed that mobile phone
markets are one of the most turbulent market environments today due to
increased competition and change. Thus, it is of growing concern to look
at consumer buying decision process and cast light on the factors and
finally determine consumer choices between different mobile phone
brands. On this basis, this research deals with consumers choice criteria in
mobile phone markets by studying factors that influence intention to
mobile phone change on the other are some general factors that seem to
guide the choices. The two studies show that while technical problems are
16
the basic reasons to change mobile phone among students; price, brand,
interface and properties are the most influential factors affecting the actual
choice between brands.
• Kurt Matzler, etal (2006) in their study entitled “Individual determinants
of brand effect” explore the relationship among two personality traits
(extraversion and openness), hedonic value, brand effect and loyalty. It
argues that individual differences account for differences in the values
sought by the consumer and in the formation of brand effect and loyalty. It
was found that extraversion and openness are positively related to hedonic
product value and that the personality traits directly(openness) and
indirectly (extraversion via hedonic value) influence brand affect which in
turn drives attitudinal and purchase loyalty.
• Jaakko Sinisalo, etal (2007) in their study entitled “Mobile customer
relationship management: underlying issues and challenges” states that the
purpose of this study is twofold.This paper presents a conceptualization of
MCRM delineating its unique characteristics. Second, the authors develop
the empirically grounded framework of underlying issues in the initiation
of MCRM. Researchers have identified issues that can be divided into three
categories (exogenous, endogenous and MCRM-specific) the company has
to take into account when moving towards MCRM.
• Ramakrishnan Venkatesahumar,etal(2008) in their study entitled
“Perception of product attributes in brand switching behavior” confirms
that brand loyalty and brand switching behavior of the consumers are
evergreen issues of research and strategic importance to the marketers and
academic researchers .The current research aims to address the significance
of product attributes in brand switching behavior through multi-
dimensional scaling and results suggest that a set of product attributes
trigger the intention to switch the current brand.
• Luca Petruzzellis (2010) in his study entitled” Mobile phone choice
technology versus marketing” referred and conclude that technology
17
19
CHAPTER 3
INDUSTRY AND
COMPANY PROFILE
20
3.1 Introduction
Industry profiles are in-depth documents that give insight into an industry, where it
came from, and where it appears to be going. A typical report looks at
the industry leaders, forces affecting the industry and financial data for the industry
innovative models at attractive price to lure in buyers. There is a huge demand for
low-cost handsets. Of the total handset sales, the majority fall in the Rs 5000-15000
range. This is where the majority of volume is and that is where one will find majority
of Indian and Chinese manufacturers play. Low-cost devices will grab 60% of the
market over the next 3-4 years. One can get a handset cheaply with features like good
memory, touch screen, camera, longer battery life etc.
The first handheld cellular mobile phone was demonstrated by John F. Mitchell and
Martin Cooper of Motorola in 1973, using a handset weighing 2 kilograms (4.4 lb.).
The first commercial automated cellular network (1G) analog was launched in Japan
by Nippon Telegraph and Telephone in 1979. This was followed in 1981 by the
simultaneous launch of the Nordic Mobile Telephone (NMT) system in Denmark,
Finland, Norway, and Sweden. Several other countries then followed in the early to
mid-1980s. These first-generation (1G) systems could support far more simultaneous
calls but still used analog cellular technology. In 1983, the DynaTAC 8000x was the
first commercially available handheld mobile phone.
In 1991, the second-generation (2G) digital cellular technology was launched in
Finland by Radiolinja on the GSM standard. This sparked competition in the sector as
the new operators challenged the incumbent 1G network operators.
Ten years later, in 2001, the third generation (3G) was launched in Japan by NTT
DoCoMo on the WCDMA standard. This was followed by 3.5G, 3G+ or turbo 3G
enhancements based on the high-speed packet access (HSPA) family, allowing UMTS
networks to have higher data transfer speeds and capacity.
By 2009, it had become clear that, at some point, 3G networks would be overwhelmed
by the growth of bandwidth-intensive applications, such as streaming media.
Consequently, the industry began looking to data optimized fourth-generation
technologies, with the promise of speed improvements up to ten-fold over existing 3G
technologies. The first two commercially available technologies billed as 4G were the
WiMAX standard, offered in North America by Sprint, and the LTE standard, first
offered in Scandinavia by TeliaSonera.
22
5G is a technology and term used in research papers and projects to denote the next
major phase in mobile telecommunication standards beyond the 4G/IMT-Advanced
standards. The term 5G is not officially used in any specification or official document
yet made public by telecommunication companies or standardization bodies such as
3GPP, WiMAX Forum or ITU-R. New standards beyond 4G are currently being
developed by standardization bodies, but they are at this time seen as under the 4G
umbrella, not for a new mobile generation.
3.3.1 Apple
iPhone is a line of smart phones designed and marketed by Apple Inc. All
generation of iPhone uses Apples’ iOS mobile operating system software. The
first-generation iPhone was released on June 29, 2007, and multiple new hardware
iterations with new iOS releases have been released since.
Subsequent iterations of the iPhone have garnered praise. The iPhone is one of the
most widely used smart phones in the world, and its success has been credited
with helping Apple become one of the world’s most valuable publicly traded
companies.
3.3.2 Samsung
Samsung is a South Korean multinational conglomerate headquartered in
Samsung town, Seoul. It comprises numerous affiliated businesses, most of them
united under the Samsung brand, and is the largest South Korean chaebol.
Samsung was founded by Lee Byung Chul in 1938. Samsung entered the
electronics industry in late 1960’s. Samsung released a fitness smart watch in 2016
23
called the Gear fit 2, as well as a wireless ear buds called Gear Icon X. By the end
of the year the gear G3 smart watch was announced. In the late 2017, the company
continued to release products till the latest Samsung Galaxy S21 Ultra 5G.
3.3.3 Xiaomi
Xiaomi corporation is a Chinese electronics company founded by Lei Jun (CEO)
which is headquartered in Beijing. Xiaomi makes and invests in smart phones,
mobile apps, laptops, and related consumer electronics.
The company’s version of the Android operating system, the MIUI skin with its
design, app market place and the functionalities, as established a community of
users who form a crucial part of Xiaomis customer base and contribute to the
companies drive for market awareness.
3.3.4 Oppo
Oppo Electronics Corporation, commodity referred to as Oppo, is a Chinese
consumer electronics and mobile communication company, known for its smart
phones, Blu-ray players and other electronic devices. A leading manufacturer of
smart phones, Oppo was the top smart phone brand in China in 2016 and was
ranked No 8 worldwide.
They produce phones in A series, Find series, F series, N series and R series. Oppo
also produces headphones and Blu-Ray players under its Oppo digital brand. The
Oppo K-series is the newest addition of smart phones under the brand, consisting
of K1 which was launched in October 2021.
24
CHAPTER 4
DATA
ANALYSIS
AND
INTERPRETATION
From the above table it is observed that 53.33% ofthe respondents are Male
26
From the above table, it is observed that 40%of the respondents belongs to age
group of 18 to 30 years and 8.33%belongs to 50 years and above age group.
27
From the above table, it is observed that 30%of respondents are Students,
and 10% are Service employees.
28
From the above table, it is observed that 40% of respondents are ‘Dependent',
and 13.33% belongs to ‘Rs.41,000 and above’ Income group.
29
From the above table, it is observed that 43.33%are Under Graduates and 6.67%
are Post Graduates.
30
From the above table, it is observed that majority(70%) of the respondents have
one mobile phone.
31
Table No: 4.7(a)showing brand of Mobile phone they are presently using
From the above table, it is observed that 33.33%of the respondents prefer the
Xiaomi brand and 10% prefer Apple brand.
Figure No: 4.7(b) showing brand of Mobile phone they are presently using
32
From the above table, it is observed that 45% are willing to pay price ranging
from 11,000 to 20,000, and 10% are willing to pay price ranging from 41,000 or
above for a mobile phone.
Figure No: 4.8(b) showing price willing to be paid for a mobile phone
33
Table No: 4.9(a) showing how Individuals considers owning a mobile phone
as
From the above table, it is observed that 80% of the respondents considers
owning a mobile phone as a Necessity and 6.67% considers owning it as a
Luxury.
Figure No: 4.9(b) showing how Individuals considers owning a mobile phone
as
80
70
60
50
40
30
20
34
Table No: 4.10(a) showing term of using the present mobile phone brand
From the above table, it is observed that 40% of the respondents have been using
it for 2 years and 10% have been using it for 4 years or more.
Figure No: 4.10(b) showing term of using the present mobile phone brand
35
From the above table, it is observed that 30% of the respondents purchasing
decision is based on the Brand name and 3.33% of the respondents purchasing
decision is based on the other factorssuch as social influence etc.
36
Table No: 4.12(a) Switching to other alternative brands if they offer a similar but
cheaper smart phone
PARTICULARS FREQUENCY PERCENTAGE
Very Unlikely 8 13.33
Unlikely 16 26.67
Neutral 21 35
Likely 10 16.67
Very Likely 5 8.33
TOTAL 60 100
(Source: Primary data)
From the above table, it is observed that 35% are neutral i.e., they are neither
likely or unlikely to switch to alternative brands and 8.33% are very likely to
switch to alternative brands.
35
30
25
20
15
10
37
Table No: 4.13(a) showing impact on decision if the preferred brand is out of stock
From the above table, it is observed that majority (80%) of the respondents
purchase their preferred brand when it is in stock.
Figure No: 4.13(b) showing impact on decision if the preferred brand is out
of stock
38
Table No: 4.14(a) showing level of satisfaction based on past performance with
your current mobile phone
39
Table No: 4.15(a) showing technological factors preferred in the mobile phone
From the above table, it is observed that 28.33%of the respondents prefer 4G
technology in their mobile phone.
40
Table No: 4.16(a) showing servicing of mobile phone with ease and speed
From the above table, it is observed that majority (83.33%) of the respondent’s
mobile phone brand can be serviced with ease and speed.
Figure No: 4.16(b) showing servicing of mobile phone with ease and speed
41
From the above table, it is observed that 38.33% of the respondents are neutral
i.e., they are neither likely or unlikely to change the brand in the nearest future
and 3.33% are very unlikely to change.
40
35
30
25
20
15
10
Very Unlikely Unlikely Neutral Likely Very Likely
(Source: Primary data)
42
43
Table No: 4.19(a) Performance of the mobile phone brand as per the expectations
From the above table, it is observed that majority (76.67%) of the respondent’s
mobile phone’s performance is as per their expectations.
Figure No: 4.19(b) Performance of the mobile phone brand as per the
expectations
44
Table No: 4.20(a) Satisfaction level based on the features of the mobile phone
From the above table, it is observed that 43.33% of the respondents are satisfied
with the features of the mobile phone and 3.33% are dissatisfied.
Figure No: 4.20(b) Satisfaction level based on the features of the mobile phone
45
From the above table, it is observed that majority (73.33%) of the respondents
finds it to be a reliable product regarding what it had been promised.
Figure No: 4.21(b) showing reliability of product regarding what it had been
promised
46
From the above table, it is observed that majority (75%) of the respondents
agrees that the mobile phone brand is delivering quality meeting design
standard.
47
From the above table, it is observed majority(70%) of the respondents says that
the source of the brand information is from Websites.
48
CHAPTER 5
49
5.1 Findings
50
51
5.2 Suggestions
52
Conclusion
The main objective of the study was to identify the leading brand preference for
mobile phones and the attitude of consumers belonging to low-, middle- and
high-income groups taken in ‘Souhrdhavedhi’ of Sakthi Nagar Residence
Association of Ward-24 of the Irinjalakuda Municipality. The study is
conducted on popular mobile brands such as Apple, Samsung, Xiaomi and Oppo
but I have concluded that the prominent brands for consumers are Xiaomi,
Samsung, Oppo and certain other brands such as Motorola, One plus and Vivo
etc.
This study reveals that the demographic factors of consumers have an
influence on brand choice and brand switching of mobile phone. It is
concluded that the brand preference is related to income of the respondents
and the customer satisfactions, switching barriers, and demographic factors
significantly affect individual’s intent to switch from one brand to another
brand. The study also shows that the prominent factors which lead to switching
intensions are Operating system, No expandable memory, low quality camera
and poor battery performance etc.
The results revealed that dominant group of mobile phone users were under
18 to 30 years of age. These industry players have to acknowledge in
fashioning out services that meet this particular demography. Thus, it is
important for the mobile phone companies to understand the needs of
customers of different demographic profiles and between male and female
brand attribute. In an era of competition, and especially the rise of the mobile
industry, marketers need to conduct regular consumer surveys in order to find
out how consumers rank their brand. With the core product and service
companies should give VAS (Value added Services) over and above the core
product and services.
53
Bibliography
Books
Journals or Periodicals
a) Ajax Persaud, Irfan Azhar (2012) “Innovative mobile marketing via
smartphones”- Marketing Intelligence & Planning, Vol. 30 Issue: 4,
pp.418-443
b) Ahmed Alamro, Jennifer Rowley (2011) “Antecedents of brand
preference for mobile telecommunication services” - Journal of
Product& Brand Management, Vol. 20 Issue: 6, pp.475-486
c) Hande Kimiloglu, V Aslihan Nasir, Suphan Nasir (2010)
a. “Discovering behavioural segments in the mobile phone
market” -
pp.140-160
e) Luca Petruzzellis (2010) “Mobile phone choice: technology versus
marketing” - European Journal of Marketing, Vol. 44 Issue: 5,
pp.610- 634
f) Asta Salmi, Elmira Sharafutdinova (2008) “Culture and design in
emerging markets: The case of mobile phones in Russia” - Journal of
Business & Industrial Marketing, Vol. 23 Issue: 6, pp.384-394
g) Ramakrishnan Venkatesakumar, D Ramkumar and P Thillai
Rajan (2008) “Perception of product attributes in brand switching
behaviour” - The journal for practicing managers. Vol. 27, 2003. pp
h) Jaakko Sinisalo, Jari Salo, Heikki Karjaluoto, Matti Leppaniemi
(2007) “Mobile customer relationship management: underlying
issues and challenges” - Business Process Management Journal, Vol.
13 Issue: 6, pp.771-787
a) www.wikipedia.com
b) www.scibd.com
c) www.shodhganga.com
55
QUESTIONNAIRE
1. Name:
2. Gender:
a) Male
b) Female
3. Age group:
a) 18 to 30 years
b) 31 to 40 years
c) 41 to 50 years
d) 51 years and above
4. Occupation:
a) Student
b) Business
c) Service
d) Professional
e) Home Maker
5. Income:
a) Dependent
b) Below 20,000
c) 21,000 to 40,000
d) 41,000 and above
6. Education:
a) 10th Graduate
b) 12th Graduate
c) Under Graduate
d) Post Graduate
56
11.How long have you been using the present brand of mobile phone?
a) Less than 1 year
b) 2 years
c) 3 years
d) 4 years or more
57
13.Will you switch to other alternative brands if they offer a similar but
cheaper smart phone?
14.What will you do if the brand of smartphone you wish to purchase is outof
stock?
a) Purchase other brand
b) Purchase when it is in stock
15.State the level of satisfaction based on the past experience with your
current mobile phone?
a) Highly Dissatisfied
b) Dissatisfied
c) Neutral
d) Satisfied
e) Highly Satisfied
16.What are the technological factors that you prefer in the mobile phone?
a) Operating System
b) 4G
c) Fast Charging
d) High Definition Camera
e) Expandable memory
f) Others
58
18.How likely are you to change your mobile phone brand in the near
future?
20.Do you feel that the performance of your mobile phone is as per your
expectation?
a) Yes
b) No
22.Is your mobile phone a reliable product delivering what it had been
promised?
a) Yes
b) No
59
60