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A

PROJECT REPORT
ON

CONSUMER BUYING BEHAVIOR TOWARDS


PHONE IN SATNA CITY

MOBILE

SUBMITTED TO

AWADHESH PRATAP SINGH UNIVERSITY, REWA (M.P.)


FOR THE AWARD OF
BACHELOR OF BUSINESS ADMINISTRATION
BBA (SEMESTER-VI)
BY

ANKIT VISHWAKARMA
UNDER GUIDANCE OF

PROF. Sankalp shukla

VINDHYA INSTITUTE OF MANAGEMENT & SCIENCE,


SATNA (M.P.)
2013- 2016

VINDHYA INSTITUTE OF MANAGEMENT & SCIENCE


SATNA (M.P.)

GUIDES CERTIFICATE
This is to certify that

ANKIT VISHWAKARMA

has satisfactorily completed the

Project work on consumer buying behavior towards mobile phone in satna city
under my guidance for the partial fulfillment of BBA (Semester-VI) submitted to
Awadhesh Pratap Singh University, Rewa during the academic year 2015-2016.
To best of my knowledge and belief the matter presented by her is original
work and not copied from any source. Also this report has not been submitted earlier
for the award of any Degree of Awadhesh Pratap Singh University, Rewa.

Place: Satna
Date: / 05 / 2016

PROF. SANKALP SHUKLA


(Project Guide)

VINDHYA INSTITUTE OF MANAGEMENT & SCIENCE


SATNA (M.P.)

DECLARATION
I undersigned, hereby declare that this Project Report entitled consumer
buying behavior towards mobile phone in satna city

prescribed by AWADHESH

PRATAP SINGH UNIVERSITY, REWA during the academic year 2015-2016 under the
guidance of PROF. SANKALP SHUKLA is my original work.
The matter presented in this report has not been copied from any source. I
understand that any such copying is liable to be punishable in any way the university
authorities deem to be fit. Also this report has not been submitted earlier for the
award of any Degree or Diploma of Awadhesh Pratap Singh University, Rewa or any
other University.
This work humbly submitted to Awadhesh Pratap Singh University for the
partial fulfillment of Bachelor of Business Administration (Sem-VI).

PLACE: SATNA

vishwakarma
DATE:

/ 05 / 2016

Ankit
(1305701006)

VINDHYA INSTITUTE OF MANAGEMENT & SCIENCE


SATNA (M.P.)

ACKNOWLEDGEMENT
Whenever we are standing on most difficult step of the dream of our life, we
often remind about The Great God for His blessings & kind help and he always helps
us in tracking off the problems by some means in our lifetime. I feel great pleasure to
present this project entitled consumer buying behavior towards mobile phone in
satna city.
I am grateful to those people who help me a lot in preparation of this project
report. It is their support and blessings, which has brought me to write this project
report. I have a deep sense of gratitude in my heart for them.
I am very thankful to my project guide Prof. Sankalp Shukla for his wholehearted support and affectionate encouragement without which my successful project
would not have been possible.
Finally, I am very grateful to Mighty God and inspiring parents whose loving
& caring support contributed a major share in completion of my task.

Ankit vishwakarma

TABLE OF CONTENTS
S.N.

Contents

Page No.

Introduction of Project

5-7

The internet age of cell phones

Evolution of mobile phones

Objective of the study

10

Research Methodology

11

Literature review

12-13

Factors influencing consumer buying behaviour


14
towards mobile phone

Analysis report

15-31

Findings

32

10

Limitation

33

11

Suggestion

34

12

Conclusion

35

13

Questionnaire

36

CHAPTER-I

INTRODUCTION OF PROJECT

Consumer buying behavior is the sum of consumers attitude, preferences,


intention, and decisions regarding the consumers behavior in the market place
when purchasing product and service.
consumer behavior may be defined as the behavior that a consumer displays when he is on the
lookout for his purchase, using and evaluating products and services, which would satisfy
his needs. It is a study of human behavior, which influences the purchase decision of the
consumer.
According to Engel, Blackwell, and Mansard,
Consumer behaviour is the actions and decision processes of people who purchase goods and
services for personal consumption.
According to Louden and Bitta,
Consumer behaviour is the decision process and physical activity, which individuals engage in
when evaluating, acquiring, using or disposing of goods and services.

Introduction of mobile phone

The Mobile phone industry in India has become very popular today. Its growth is so
stupendous that it has surpassed most of the other industries. The reason for its rapid growth is
that man spends most of his time in interacting with others. Cell phones have come handy to men
as a means to communicate with others. Because of this, mobile penetration in the market has
overshadowed all other means of communication. The technological revolution in the cellular
industry has ushered in a booming market for cell phones and cellular service. Many people have
become the customers of some mobile company or the other and obviously customers of cellular
service providers of their choice. The use of cell phones has brought about a magical change in
the life style of most of the people in the country. In many parts of the world, there is a kind of
rapidity in the adoption of mobile phones. In the present days, cell phones are almost as common
as wristwatches.

Mobile phone has become an integral part of human daily and personal
communication across the globe
Mobile phone was developed in 1979. In India it was introduced in 1994. But
it became familiar only in the beginning of year 2000

It is a very fast point to point communication. It helps one to send and receive
information anytime and anywhere
Mobile phone plays a predominant role in the modern life because mobile
phones are used by people at all levels
With 4G mobile data networks quickly becoming reliable and affordable, we
see a big shift in the way users consume information on their handhelds
Mobile phone is a milestone that indicates success, not only financially but
also culturally in term of the integration within society
Mobile phone usages have resulted in greater electronic interactions
between friends and family at the expense of face to face interaction which
has dramatically reduced
Consequently, it could be proposed that mobile phones are changing
individual cultural norms and values

The Internet Age of Cell Phones


Since the 2G network there has been the launch of 3G (third generation) and 4G
networks. The 3G digital network has really enabled users to begin accessing information on
the internet.
With these advances in technology the actual handsets have changed dramatically too.
No longer the large and heavy devices, the digital cell device has become small, light and
slim. Easy to hold in one hand and fit into the pockets of even the tightest fitting jeans.
The 2000s saw the biggest development in the ability to access high speed data resources.
Mobile devices are now so advanced that we carry our entire social and digital lives around
with us in our pockets. Our personal information is stored on our cell phones as well as being
able to work and play on them.

Evolution of mobile phones

1973:1984:1992:1994:1996:1998:2002:2007:2008:2010:-

First hand held mobile developed


Nokia talkman
Motorola International 3200
IBM Simon Personal Communicator
Motorola Startac
Nokia 5110
Sanyo SCP 5300
Iphone
First android based mobile phone
First windows phone launched

Objective of the study


To know the consumer buying behavior towards mobile phone in satna
city.
To know the satisfaction level of the consumer.
To study the factor important while purchasing the mobile phone.
To know which features in a particular brand are preferred by the
mobile phone users

10

DATA COLLECTION
The study was conducted by the means of personal interview with respondents and the
information given by them were directly recorded on questionnaire.
For the purpose of analyzing the data it is necessary to collect the vital information.
There are two types of data, this are Primary Data
Secondary data

COLLECTION TECHNIQUE
Primary Data
Questionnaire method

Secondary Data
Books
Journal
Website

SAMPLE SIZE:
The substantial portions of the target customer that are sampled to achieve reliable
result are 100.

SAMPLE TECHNIQUE
Percentage analysis
Tabulation
Graphical

11

Average mean

Literature Review
The

current

phones has

literature

on

mainly concentrated

consumer purchasing

decisions of mobile

on identifying the factors, which affect

the willingness of consumers to Engage in mobile purchase. In the domain


consumer

behavior

research,

of

there are general models of buying behavior

that depict the process which consumers use in making a purchase decision.
These models are very important to marketers as they have the ability to
explain and predict consumers purchase behavior. The classic consumer
purchasing decision-making theory can be characterized as a range extending
from

routine problem-solving

solving behaviors

and

behaviors, through

then

towards

to

extensive

limited

problem

problem-solving

behaviors. The traditional framework for analysis of the buyer decision process is a
five-step model. Given the model, the consumer progresses firstly from a
state of felt deprivation (problem
information

on problem

recognition),

to the

search for

solutions. The information gathered provides the basis

for the evaluation of alternatives. Finally, post-purchase behavior is critical in


the marketing perspective, as it eventually affects consumers perception of
satisfaction/dissatisfaction with the product/service.

This classic five-stage

model comprises the essence of consumer behavior under most contexts.


Satna is a developing city and has witnessed fast economic growth and
developments in mobile telecommunication penetration in recent years. Due to
these reason. there is a dynamic increase in the number of mobile phone device
users.
This
attracted
large
number of international firms to enter into mobile industry and offer various
brands of mobile phones However, the choice of consumer is diverse due to various
factors associated with consumer behavior. In this context, it is important to study

12

the various factors which shape the consumers mind during the purchase of mobile
phone devices. I surveyed The people to identify their preference of their current
mobile phone. The results of their survey indicated that the physical appearance,
size and menu organization of the mobile phones are the most determinant factors
affecting the choice of mobile phones. I attempted to investigate consumer
purchasing motives in cellular phone markets. The results indicated that while price
and properties were the most influential factors affecting the purchase of a new
mobile phone, price, audibility and friends operator were regarded as the most
important in the choice of the mobile phone operator. As well, i analyzed the factors
affecting consumers choice of mobile phone selection in Pakistan. The results
indicated that consumers value new technology features as the most important
variable amongst all and it also acts as a motivational force that influences them to
go for a new handset purchase decision.

13

Factor influencing consumer buying behavior towards mobile phone


There are many social and interpersonal factors that affect customers to decide
purchase mobile phone. Consumer behavior is affected by a lot of Variables,
ranging from personal motivations, needs, attitudes and values, personality
Characteristics, socio-economic and cultural background, age, sex, professional
status to Social Influences of various kinds exerted by family, friends, colleagues
and society as a whole. Survey showed that usability in the most important
determinant of mobile choice; other attributes particularly features, aesthetics and
cost are other factors that have implication on the choice of mobile phone brand. In
other study conducted by me, price, quality and style functions as the most
influential factors affecting the choice of mobile phones. Moreover, I selected four
important factors i.e. price, size/shape, new technology features and brand name
and analyzed their impact on consumers buying behavior. The 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
determine consumers brand choice decision makings and their behaviors .There are
number of factors that affect the way the consumer choose a particular brand than
other brands. Various factors influence the consumers when they are making a
choice among alternate brands. These factors consist of price, quality, features,
family and friends recommendations, brand image, innovative features, promotion
effectiveness, celebrity endorsement, user friendliness, stylish appearance and postpurchase services. The price is a dominant and the most important factor affecting
the decision making and purchase process of any products. Price of the phone has
been identified as a critical factor in the choice of the mobile phone model,
especially among younger people price can be a key factor of attraction. Price of the
mobile phone has been identified as a key factor in the choice of mobile phones,
especially among the young consumers.
Based on previous research studies and literatures reviewed the following
conceptual framework and research hypothesis were developed for this research
project. Accordingly, six independent variable (i.e. price, social factors, durability,
brand name, product features and after sales services) thought to influence the
dependent variable (i.e. decision to by) are identified.

14

ANALYSIS REPORT
How long did you purchase your mobile phone?
Less than
three months
ago
2

Analysis:-

3-6 months
ago
18

7-12 months Within past 2


ago
years
15

14

More than
two years
ago
1

According to this survey 36% people who purchased mobile before some days,

30% people purchased mobile between 3-6 months, 28% people purchased between 7-12 months,
4% people within past 2 years and there are only 2% people who purchased mobile before 2
years.

Interpretation:-

According to this survey there are a lot of consumer who purchased new

mobile phone before less than three months, 58 % people are using their mobile with fully
satisfaction and only 6% people are using their mobile before 2 years or more than years ago.

15

Which brand of mobile phone you prefer?


Samsung
9

Analysis:-

Micromax
19

Intex
6

Iphone
5

Sony
4

others
8

According to my survey 37% people prefer micromax brand, and 17% people

prefer Samsung brand, 16% people prefer intex , 10% people prefer iphone, 8% people prefer
others.

Interpretation:-

According to my survey in Satna city there are many people prefer

micromax and Samsung is on the second rank, and 16% people are using others brand like
Uureka, lava, Lenovo, xiaomi etc . so according to my survey in the satna city there are a lot of
people are using micromax brand.

16

For what reason you choose the mobile brand?


Convenience
Handset
21

Analysis:-

Cost Control

Discount

20

10

Value added
services
1

According to the survey 41% people chose A option which was convenience

handset, 40% people chose cost control, 17% people chose discount and 2% people chose value
added services.

Interpretation:-

According to this survey people mostly chose their handset because they

can use that handset easily and approx same no. of people chose their handset for cost control and
17% people chose this handset for discount and only 2% people preferred this phone for value
added services.

Which advertising media is source of information for you?


17

Television
17

Analysis:-

Print Media
3

Digital
8

Others
22

According to my survey 44% people choose others option for gather information

to purchase mobile, 34% people choose television option, 16% people digital and only 6% people
choose print media.

Interpretation:-

People mostly gather information for purchase their mobile via internet

family, friends, self and television. And some people get information by print media.

Why did you prefer this mobile phone?


1. Battery backup

18

Very favourable

Favourable

Neither
favourable nor
unfavourable

Unfavourable

Least
unfavourable

16

13

12

Analysis:-

According to my survey 33% people very favourable. 17% people favourable,

24% people Neither favourable nor unfavourable, 10% people unfavourable and 4% people least
favourable.

Interpretation:- battery backup is very important in now a days for respondents.

2. Camera quality
Very favourable

Favourable

Neither

Unfavourable

Least

19

favourable nor
unfavourable

14

Analysis:-

14

14

unfavourable

According to my survey 31% people very favourable. 30% people favourable,

30% people Neither favourable nor unfavourable, 7% people unfavourable and 2% people least
favourable.

Interpretation:- Camera quality is very important in now a days for respondents.

3. Design
Very favourable

Favourable

Neither

Unfavourable

Least
20

favourable nor
unfavourable

13

Analysis:-

12

18

unfavourable

According to my survey 17% people very favourable. 15% people favourable,

38% people Neither favourable nor unfavourable, 8% people unfavourable and 2% people least
favourable.

Interpretation:- Design is very important in now a days for respondents.

4. RAM
Very favourable

Favourable

Neither
favourable nor

Unfavourable

Least
unfavourable
21

unfavourable

20

11

Analysis:- According to my survey 7% people very favourable. 20% people favourable, 44%
people Neither

favourable nor unfavourable, 24% people unfavourable and 5% people least

favourable.

Interpretation:- RAM is very important in now a days for respondents.

5. Display quality
Very favourable

Favourable

Neither
favourable nor

Unfavourable

Least
unfavourable
22

unfavourable

12

Analysis:-

12

15

According to my survey 26% people very favourable. 26% people favourable,

33% people Neither favourable nor unfavourable, 6% people unfavourable and 9% people least
favourable.

Interpretation:- display quality is also very important in now a days for respondents.

6. Internet
Very favourable

Favourable

Neither
favourable nor
unfavourable

Unfavourable

Least
unfavourable

14

18

5
23

Analysis:- According to my survey 30% people very favourable. 11% people favourable, 39%
people Neither

favourable nor unfavourable, 9% people unfavourable and 11% people least

favourable.

Interpretation:-

internet is very important in now a days for respondents. Actually they

purchase mobile only for operate internet.

7. Others
Very favourable

Favourable

Neither
favourable nor
unfavourable

Unfavourable

Least
unfavourable

15

11

24

Analysis:-

According to my survey 31% people very favourable. 15% people favourable,

23% people Neither

favourable nor unfavourable, 19% people unfavourable and 12% people

least favourable.

Interpretation:-

Consumers wants more ROM, best operating system, good processor etc.

to the mobile phone.

Are you satisfied with your mobile phone?


Satisfied
28

Dissatisfied
22

25

Analysis: According to my survey 56% people are satisfied and 44% people are dissatisfied of
the respondents.

Interpretation: Approximately half of the respondents are satisfied and the other half are
unsatisfied. So we cannot conclude about the post purchase behavior.

Factors affecting consumer buying behavior towards


mobile phone
1. Price

26

Very
important

Important

Neither
important nor
unimportant

Unimportant

Highly
Unimportant

19

14

10

Interpretation:-

According to survey this factor is very important for 19 people, for 14


people important, for 10 people neither important nor unimportant, for 02 people unimportant
and only for 3 people highly unimportant. According to all score, it can be interpreted that price
is a very important factor while purchasing mobile phone which affect the consumer.

2. Service Center
Very
important

Important

Neither
important nor
unimportant

Unimportant

Highly
Unimportant

25

27

Interpretation:- According to survey this factor is very important for 25 people, for

08
people important, for 07 people neither important nor unimportant, 07 people dissatisfied and
00 people highly dissatisfied. According to this score, it can be interpreted that service center
an important factor while preferring mobile.

3. Quality
Very
important

Important

Neither
important nor
unimportant

Unimportant

Highly
Unimportant

27

10

00

28

Interpretation:-

According to survey 27 people satisfied, 16 people very satisfied, 09


people neither satisfied nor dissatisfied, 06 people dissatisfied and 02 people highly
dissatisfied. According to this score, it can be interpreted that convenience in online
shopping is an important factor.

4. Brand name
Very
important

Important

Neither
important nor
unimportant

Unimportant

Highly
Unimportant

12

11

18

29

Interpretation:-

According to survey 48 people satisfied, 18 people very satisfied, 16


people neither satisfied nor dissatisfied, 10 people dissatisfied and 00 people highly
dissatisfied. According to this score, it can be interpreted that security in online
shopping is an important factor.

5. Features
Very
important

Important

Neither
important nor
unimportant

Unimportant

Highly
Unimportant

28

30

Interpretation:-

According to survey 66 people satisfied, 10 people very satisfied, 14


people neither satisfied nor dissatisfied, 02 people dissatisfied and 00 people highly
dissatisfied. According to this score, it can be interpreted that attractive offers are important
factor it influence the consumer buying behavior.

FINDINGS
Micromax is the most popular and widely used brand by the
mobile users.
Brands like samsung and others like lava, xiaomi are also gaining
ground with regard to popularity but not like micromax.
It is clear from the above that users give due importance to factors
like features, appearance and brand of mobile phones while making purchase
decision.
31

Feature is the important factors which are mostly affect to consumers while
purchase phone.
The main problem faced otherwise is related to the battery life of a mobile
handset.

LIMITATION
There are following limitations while conducting the study.
This study was carried out only among the consumers in Satna city.
The sample size was restricted to 50 due to time constraints.

32

The sample was taken on the basis of convenience; therefore the


shortcomings of the convenience sampling may also be present in this study.

SUGGESTIONS
Mobile industry have to concentrate more on youth segment by giving more
advanced features like auto update of software ,camera quality, battery
backup.
As the Smartphone gets smarter and consumer expectations rise, mobile
technology is required to continuously offer innovative and cutting edge
service.
The mobile company should focus on their product and price.
33

I suggest the micromax mobile company that it should be improve the


hanging problem and sound quality on their products.

CONCLUSION
The consumer buying a variety of mobile phones which satisfy his wants and they
are always influenced by his purchasing activities by some considerations which
lead him to select a particular brand. Consumers mostly preferred Micromax mobile
phones.

34

Handset buying is a high involvement product wherein the consumer wants


to know from different sources about brands, though Micromax is the first
name that comes to their minds
Word of mouth plays an important role in such products and therefore it is
important for the product to be of important quality
Companies should therefore concentrate more on developing the first P and
make it available at reasonable and reachable prices.
So, the product itself becomes the promotion for the brand
People like to buy expensive Smart phones because they are durable, reliable,
have better hardware & have updated version of OS (operating system).
People use their Smart phones for many purposes like; internet browsing,
taking pictures, emails etc.

35

36