VSRD International Journal of Business and Management Research, Vol.
III Issue XI November 2013 / 453
e-ISSN : 2231-248X, p-ISSN : 2319-2194 VSRD International Journals : www.vsrdjournals.com RESEARCH ARTICLE A STUDY ON CONSUMER BEHAVIOUR IN TELECOM SERVICE PROVIDER 1 Suvalaxmi Patra* and 2 Jayakrushna Panda 1 Research Scholar, 2 Professor, 1,2 Department of Management Studies, Utkal University, Bhubaneshwar, Odisha, INDIA. *Corresponding Author : laxmisuvatani13@gmail.com ABSTRACT Consumer psychology and consumer behaviour have been playing important role in contemporary business market research. In this age of electronic which is technology driven there is a competition among several brands of cell phones in influencing consumer attitude, reference and behaviour. Market research is not independent of social changes, values and attitudes are based on cognition, affection and correlation. The cognitive concepts of attitudes refer to our information based on beliefs and opinion about different brand. The effective of feelings component refers to our feelings and emotion attach to different characteristics of different cell phone and the cognitive component relates to our decision making and purchase behaviour it is observed that various types of consumer such as businessman, professional and students do have different kind of values and attitudes as such their consumer behaviour will be different. There is always a gender difference in the society as a result of socialisation, social values, family values and individual orientation. While considering different characteristics of cell phone such as brand, technology, utility, necessity or popularity, different types of consumer give different types of emphasis on these facets, intensive research is warranted to know the dynamics so that more useful research could be undertaken. Keywords : Consumer, Consumer Behaviour, Telecom Service Provider.
1. INTRODUCTION Just before two decades Mobile phones were used only by the wealthy people and business man. After globalization and availability of new technology Mobile phones have become commonly used communication device. The manufacturers of mobile phone handsets and the service providers have achieved a phenomenal success by converting usage of Mobile phones from luxurious item to commonly used item. Along with Food, Cloth and Shelter, Mobile phone has become a basic need for human beings today. This has been possible for reduction of price and availability of modern technology. The mobile phone market is one of the dynamic markets that have been growing by leaps and bounds in the last decade. Although the manufacturers conduct a lot of market studies, their outcomes are not made available to the public. Therefore, consumer behavior of mobile phone is an open area for study. These days are the most interesting times to study consumer behavior in the mobile industry as changes are happening around. There has been changes and challenges needed for new mobile , currently there is the trend of shifting from second generation mobile phones to third generation in the mobile industry. It means that mobile phones will not be an instrument used for speaking only but a tool that allows a variety of new services such as high bandwidth internet access, multimedia messaging service (MMS) and video conferencing. We are currently witnessing a shift from modem connection to wireless internet connection by using w-lan and GPRS network. The real advantage of 3G mobile services relates to faster broadband speed internet connection. 2. RESEARCH OBJECTIVES The following research objectives have been identified to be studied during the course of this ongoing research. To analyse the factors which consumer considers at the time of purchase of cell phone. To find out brand of cell phone affect consumer behavior. To find out whether gender has an effect on purchase of cell phone or not. 3. SCOPE OF THE STUDY The research has got wide scope covering several areas of consumer behaviour relating to brand, type of people gender and marketing strategy of different brands. It has also a scope of probing into the operations of technology in influencing consumer attitude, opinion and purchasing strategy. 4. METHODOLOGY The present study follows a 2 X 2 factorial design of research. Factor one refers to types of consumers (business and professional) versus students and factor two refers the gender (male & female) there are four sub groups namely: Male business man and professional, Female business man and professional, Male students and Female students. In each sub groups there are sixty respondents (N = 240) and the minimum educational qualification of the respondents is graduation. The study focused a persuasive random technique for selecting the respondents. Suvalaxmi Patra and Jayakrushna Panda VSRDIJBMR, Vol. III (XI) November 2013 / 454
5. SOURCE OF DATA The present study is based on both primary and secondary data sources. The primary source of data were gathered by administering questionnaire and interviewing the respondents from the 240 respondents and Secondary data were collected from Relevant literatures sources such as relevant books, journals, magazine, report, records and websites were referred to collect data from the secondary source. Pilot survey was conducted by administering questionnaire for preparing a final questionnaire, containing various dimensions of consumer behaviour. Hypotheses: There is significant differences among the consumers using different brands of cell phones There is significant gender difference with regards to use of cell phones. Analytical Tools: Since the research followed a factorial design and scales and instrument are in internal scale, parametric statistic such as analysis of variance (ANOVA) is used to interpret the results. In its simplest form Analysis of Variance (ANOVA) provides a statistical test of whether or not the means of several groups are all equal, and therefore generalizes t-test to more than two groups. ANOVAs are helpful because they possess an advantage over a two-sample t-test. Doing multiple two-sample t- tests would result in an increased chance of committing a type-I error. For this reason, ANOVAs are useful in comparing three or more means. Also SPSS package is used to analyze the data on the basis of which interpretation will be made. 6. REVIEW OF LITERATURE Students leant about cellular phone from many sources, mainly from friends and families, through advertisement and from their own experience. Whether a promotion and advertising hurt or help a brand is under-researched (Mela, Gupta & Lehman, 1997) Advertisers must remember that advertising messages are interpreted differently between different genders (Maldonando, Tansuhaj & Muehling, 2003; Hogg & Garrow,2003; Putrevu, 2001). Previous studies have proven that females were more likely to engage in elaboration than men (Maldonado & Muehling, 2003). Advertisement can change consumers perception of a product in terms of attributes content and proportion and also influence consumers taste for attributes ( Gwin & Gwin, 2003) Understanding why a consumer choose a product based upon its attributes helps marketers to understand why some consumers have preferences for certain brands (Gwin & Gwin, 2003). In the study by Gwin and Gwin (2003), the Lancaster model of consumer demand (1966, 1979), also referred to as the product attributes model, was used to evaluate brand positioning. This model assumes that consumer choice is based on the characteristics (or attributes) of a brand. Each product is a bundle of attributes and that choice is based on maximizing utility/satisfaction from the attributes subject to budget constraints. Both tangible and intangible attributes of a product are equally important in choosing a product or brand (Myers, 2003). There is no evidence that certain attributes are more related to customer loyalty than others (Romariuk & Sharp, 2003). It was, found though, that the more attributes (non- negative) associated with a brand, the more loyal the customer (Romariuk & Sharp,2003). Romariuk and Sharp (2003) suggested that marketers should focus more on how many attributes the brand should be associated with and not what attributes. However, this study did not specify what sort of attributes marketers should associate the brand with; i.e. whether they should be relevant or irrelevant attributes, tangible or intangible etc. This is because it is important that consumer accurately lean about product attribute performances since it would influence their interpretations of product performance by causing memory encode and retrieval bias. Unfounded product attribute relationship beliefs can mislead them into expecting something that is not there.(Mason & Bequette, 1998). If products fall short of customer expectations, then dissatisfaction would result. Nevertheless, it was found that through irrelevant, some attributes may still be important in influencing consumer choice. Persistent preferences for product attribute occurs when there is low ambiguity in the initial potential choice for salient attributes coupled with experience, although those attributes maybe irrelevant (i.e. an attributes usually not associated with favourable brand outcomes (Muthukrishnan & Kardes, 2001). It was found that consumers categorize as LP/SB (low product involvement/strong brand commitment) placed greater importance on product attributes and product orientations than LP/WB (weak brand commitment) consumers, which placed the most importance on price. Marketers should consider using advertisement, which may play a role in making attribute important to consumers that might not have been considered before (Gwin &Gwin, 2003), The brand name benefits perceived by consumers are highly interrelated to the product-based benefits. Big brand means a better image and a better product (del Rio,Vasquez &Iglesiaz, 2001), Mason and Bequette (1998) suggested that perceived product performance is more important than actual attribute performance. Myers (2003) concluded that brand equity might be influenced by attribute knowledge more than consumer preference. This may be due to consumer biasness and prejudice, Consumers product evaluations are Suvalaxmi Patra and Jayakrushna Panda VSRDIJBMR, Vol. III (XI) November 2013 / 455
influenced by memory. Wooten and Reed (2004) suggested that consumers with high susceptibility to normative influence tend to use protective self-presentation to avoid undesirable disapproval. Informational Influence The informational influence is based on the desire to make informed decisions and optimize the choice. 7. ANALYSIS Table 1 : ANOVA Conducted On Nokia User SOURCE Df ms f P A (TYPE OF CONSUMERS) 1 232.47 10.14 < 01 B (GENDER) 1 212.44 8.13 <01 AXB 1 208.13 8.04 <01 ERROR 237 77.33 The findings clearly indicate that both the main effect and interaction effect are found to be significant. Consumers type and gender influence the behavior of Nokia users. Table 2 : ANOVA Conducted On Samsung User SOURCE Df ms f P A (TYPE OF CONSUMERS) 1 310.34 19.12 < 01 B (GENDER) 1 288.37 16.14 <01 AXB 1 270.81 13.77 <01 ERROR 237 101.24 The findings clearly indicate that both the main effect and interaction effect are found to be significant. Consumers type and gender influence the behavior of Samsung users. Table 3 : ANOVA Conducted On Motorola User SOURCE Df ms f P A (TYPE OF CONSUMERS) 1 188.37 4.21 < 01 B (GENDER) 1 177.44 3.94 <01 AXB 1 136.89 2.16 <01 ERROR 237 67.24 The findings clearly indicate that Main effect and interaction effect are found to be significant. It indicates that both consumers type and gender influence the use of cell phone. Table 4 : ANOVA Conducted On L G User SOURCE Df ms f P A (TYPE OF CONSUMERS) 1 218.73 20.14 < 01 B (GENDER( 1 212.77 18.27 <01 AXB 1 184.26 15.26 <01 ERROR 237 100.74 The ANOVA revels both gender and consumer type jointly influences cell phone use. The study has taken up two aspects of consumer behaviour (CB) and Marketing orientation. It has focused on 25 aspects of marketing and consumer behaviour relating to four brands of cell phone and three types of respondents. 8. FINDINGS The findings indicate that NOKIA user, irrespective of type of respondents, have stronger positive attitude to items like necessity of using cell phone, using Nokia as the brand and giving importance to the brand name of the cell phone. They also focus on cell phone categories such as GSM/CDMA, mode SIM (dual/Single), screen type, camera resolution, and sustainability of batteries/ talk time, connectivity/internet, Wi Fi multimedia. Nokia users give lower attention to other brand of cell phones, price particular. Cell phone used by important people, video recording and I pod and popularity of the cell phone. On the other hand Samsung users give high degree of necessity of importance of cell phone. They also focus on brand name. They also value SIM operating system and display features. They also give importance to screen size and memory capacity. They value sustainability of the battery and talk time. They do not give importance to a particular cell phone used by important people or popularity of the cell phone. They give a very high positive opinion regarding the favourability of use of the cell phone. The Motorola users give at most importance to the necessity of the using of cell phone. They do not value brand names of brand names of NOKIA, SAMSUNG and L G. they put emphasis on the brand name, categories, such as GSM/CDMA, screen type, memory capacity, camera resolution, sustainability of battery/ talk time, connectivity, internet, wi fi/ multimedia have ever the Motorla user do not give importance to a particular cell phone used by important people, popularity of the cell phone and video recording and I pod. The L G users have with positive attitude towards the positive necessity for using the cell phones. They also value brand name, they also value the categories such as GSM/CDMA, they also importance to screen type, memory capacity, camera resolution, sustainability of battery or talk time, connectivity / internet, wi fi / multimedia and a set of advertised by electronic media. On the other hand they give low importance to a particular cell phone used by important people, popular cell phone, video recording and I pad and favourability of use of cell phone. 9. CONCLUSIONS An overall analysis reveals that users of the entire four brands do give importance to the necessity of using cell phone, brand name, categories, SIM, screen type, camera resolution, memory capacity, connectivity / internet and talk time. It indicates that consumers are contentious about technology and system. Since the study follows a 2 X 2 factorial design two way analysis of variance (ANOVA) was used to interpret the data this analysis indicate the main effect as well as the interaction effect. It is used for each brand separately. Suvalaxmi Patra and Jayakrushna Panda VSRDIJBMR, Vol. III (XI) November 2013 / 456
ANOVA revels that there are both significant main effects as well as interaction effect. There are significant difference between business man, professional and students, and there is also significant effect on gender difference in relation to consumer behaviour and marketing orientation. Business man and professional using any brand give more emphasis to sustainability, systems, operation connectivity and necessity of use of cell phone compared to students. Females, irrespective of the brand used give more emphasis on screen size, wi fi, multimedia, memory capacity, screen type and category such as GSM/CDMA compared to males. However the differences are more conspicuous among the users of Nokia and L G compared to Samsung and Motorola. All these difference might have been influenced by electronic media or by the prolonged attitude developed by different categories of respondents. Since Consumer Behaviour and marketing orientation are the results of several factors it is very difficult to give a one to one co relation and induce any final judgment. Market is changing, brands are also changing and technology is moving very fast, but human mind and attitude do not change so fast. As such Consumer Behaviour leads to be assessed from time to time. 10. SUGGESTIONS Consumer psychology and consumer behaviour have been playing important role in contemporary business market research. In this age of electronic which is technology driven there is a competition among several brands of cell phones in influencing consumer attitude, reference and behaviour. Market research is not independent of social changes, values and attitudes are based on cognition, affection and correlation. The cognitive concept of attitude refers to our information based on beliefs and opinion about different brand. The effective of feelings component refers to our feelings and emotion attach to different characteristics of different cell phone and the cognitive component relates to our decision making and purchase behaviour it is observed that various types of consumer such as businessman, professional and students do have different kind of values and attitudes as such their consumer behaviour will be different. There is always a gender difference in the society as a result of socialisation, social values, family values and individual orientation. While considering different characteristics of cell phone such as brand, technology, utility, necessity or popularity, different types of consumer give different types of emphasis on these facets; intensive research is warranted to know the dynamics so that more useful research could be undertaken. 11. REFERENCES [1] AJZEN, I., 1991. The theory of planned behaviour. Organizational behavior and human decision making, 50, 179-211. 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