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2013

By: Amey Kulkarni


Kedar.Kulkarni
Jason. Bardeskar
Jagdish. Kale
Yogesh. Daingade
Akshay. Deshmukh.

BUSINESS RESEARCH
METHODOLOGY

A BUSINESS RESEARCH
METHODOLOGY
REPORT ON GAMING CONSOLES
















ACKNOWLEDGEMENT


The Business Research Methodology paper, Factors Affecting Consumers Decision
Making while Purchasing a Gaming consoles is the most important addition to the
practical application of theoretical knowledge and experience on real research aspects. This
is really a delightful experience.

It is amazing and fascinating finding that so many dependable people around, who have
given necessary guidelines and advices while formulating this paper. Learning what
determines a good employer, I remain ever grateful to them, who all have helped to write
this report. I also extend my acknowledgement to all those, who helped me by answering
my queries pertinent to the data collection of my report.

A special debt is due to my instructor Prof. MANISHA PARPIANI, our respected faculty
for the valuable guidance in the preparation of this report. I have been immensely benefited
from her valuable guidance in the process of understanding and preparing this report.
Without her active support, continuous encouragement, and constructive criticism,
probably it would not have been possible to write an informative and objective report. Her
active assistance in working out a framework for the paper has helped to complete the
assignment within given time.

I also acknowledge the contributions of the librarian of IBS MUMBAI for allowing me to
utilize the library facilities.





















EXECUTIVE SUMMARY

This study focuses on analysis of the factors that affect a
consumer while making purchase decision of a gaming
console. The TEN factors I considered, here are
INTEREST V1
COST V2
PlayStation V3
Nintendo V4
innovation V6
Computer use for gaming V7
Mobile game play V8
Virtual reality V9
Compatibility V10
Both primary and secondary data has been used. Primary
data were collected from the direct responses from the
sample size of 53 comprised of person of different
demographics. Because of the conclusive nature of the
research, primarily I used quantitative questioning (on 5 scale
liker scale) in the surveys. For the secondary data, different
established theories and articles was reviewed. An
exploratory research with some respondents were also
conducted to gain the practical insights of this research and
to get the prime factors that affect consumers while
purchasing a gaming console. SPSS 21 was used for
regression analysis and to measure the significance of
independent variables on the dependent variable.

After doing the required statistical operations, I got the
finding. It was revealed that, only COMPUTER GAMING has
significant effect on consumers decision making process. The
other variables are not significant and thus rejected.



INTRODUCTION

A video game console is an interactive entertainment
computer or customized computer system that produces
a video display signal which can be used with a display
device to display a video game. The issues regarding
consumer preference in buying a gaming console involves
price of the product, quality of the gaming consoles, brand
image of the gaming consoles, convenience of the store.

Customer behavior study is based on consumer buying
behavior, with the customer playing the three distinct roles
of user, payer and buyer. Consumer behavior is influenced
by: demographics, psychographics (lifestyle), personality,
motivation, knowledge, attitudes, beliefs, and feelings.

Consumer behavior is concerned with consumer need. A
consumer action in the direction of satisfying his/her needs
leads to his behavior. Consumer decision making is a process
that intertwines various stimuli towards the purchase
decision. Marketers all over the world are trying to find out
what factors are responsible for the final decision taken by
an individual.

This study will find the significance of factors that affect
consumers to purchase a gaming console.



Origin of the report;

The main purpose of the study is to fulfill the requirements
of Business Research Methodology (BRM) as the part of our
PGPM program. As a student of Business Research
Methodology, we were assigned by our course instructor
Prof. MANISHA PARPIANI to involve in this study. The course
BRM as well as this report helps a student to get necessary
knowledge which is very useful for the students in building
their future career.



Objective of the study;

Broad Objective

The main objective of this report is to get the practical
insight of the techniques and strategies of conducting a
research project.

Specific Objectives

To identify the underlying factors that affect consumers to
choose a gaming consoles.



Research Question

This research gave the opportunity to dig into the specific
issues that a consumer assesses while purchasing a gaming
consoles. This topic will provide the insight to learn the
influences of behavioral variables of the consumers which in
turn lead to the purchasing decision. Perspective like the
effect of brand image will be brought into the topic. Finally,
the findings of the result will be used to make theories and
shared to the different retailers and wholesalers of gaming
consoles.

The principle objective of this report was to identify when,
why, how, and where people do or do not buy a gaming
consoles or some gadgets with gaming as an facility. This
study also dealt with the variables that affect the consumer
purchasing decision. The weight and significance of the
variables were measured as well.

RESEARCH METHODOLOGY
The research is basically both exploratory and conclusive in
nature

EXPLORATORY RESEARCH
The Universe defines as comprising of people who had avail,
purchase for gaming consoles. Exploratory Research aimed at
finding out the drivers of consumer behavior.

CONCLUSIVE RESEARCH
Conclusive Research consisted of Administer Survey through
questionnaire. The questionnaire mainly had closed end
questions. The Final Questionnaire consisted of questions
based on factors affecting the consumer behavior.

DESCRIPTIVE RESEARCH: Descriptive design is also followed
in this report. It has following characteristics:
Aware of the problem: Customers taste and preferences
are changing and sales are declining in many
companies.
Describe characteristics of sample units: Survey was
conducted among 53 respondents. Demographic
characteristics i.e. age and gender of respondents was
taken into account.

1.SAMPLE;
The researcher in this section defines the target population
and sampling method put to use. This section contain other
necessary information such as, probability, non-probability,
cluster sampling etc.
The sample was heterogeneous. We had ten independent
variables in my study. Hence, a total of 53 responses were
collected from students, and different youth groups. Most of
the responses were collected from students as it was
convenient to us and also because we did not assume that it
will have an adverse affect on data collected.

Moreover, most of the respondents were male because we
thought that as majority of the buyers of gaming consoles in
our country are males; it will help me identify the answers in
an efficient manner.

In our survey, we found that majority of the respondents lie
within a certain age range and most of them have a certain
income range because the survey was heavily dominated by
people doing their Postgraduates program.


2. REASEARCH DESIGN;
The research design has to be custom made to the research
purpose and should contain information on:
Nature of the research design;
Design of questionnaires;
Questionnaire development and pre-testing;
Data that was gathered;
Definition of interview and type of interview;
Source from which data was collected;
Scales and instruments used;
Design of sampling, coding and method of data input;
Strengths and weakness;
Copies of materials used and the technical details;

3. Data collection;
The contents of this section depends on the research design
as the name implies, data collection pertain to the
information about:
Time of data collection;
Field condition during data collection;
In case of any secondary data was used, and then the
relevance of that data should be given. Details of field
instruction and any other necessary.


4. Limitation;
Time constraints were one of the most important factors
that imposed restrictions on conducting the study
extensively.
Scarcity of Secondary Data
Our sample size was small
Cost constraints.
Lack of experience.

5. Findings
Most of the space in the report is devoted to this section.
This research presents all the relevant data but makes no
attempt to draw any inferences.
Charts, graphs, and tables are generally used to present
quantitative data like here is scree plot.







RESULTS
INTERPRETATION:
1. KMOS AND BARTLETTS TEST
- KAISER MEYER OLKIN TEST is done to describe whether the
size of respondent is appropriate or not.
If KMOs significance is more than or nearer to .5 than the
no. of respondent will be appropriate.
So in our report analysis from SPSS we found that KMOs
significance = .616
Here KMOs sig is greater than .5 so we conclude that
respondent size is appropriate to take survey.
-BARTLETTS TEST signifies correlation between the variables,
also it states that matrix is unit or not.
BARTLETTs sig < .05, we will reject H0 (means matrix is not
unit and there is correlation between variables)
H0 : matrix is Unit(correlation is not exist between variables)
H1 : matrix is not unit(correlation between variable exist)
In our report analysis BARTLETTs test significance level =
.000
So here correlation between variables exist, hence matrix is
not unit.

2. How many factors to be extracted?
Factors are extracted on the basis of four methods:
A. EIGEN VALUE
Variables, whose EIGEN value is more than 1, will be
extracted.
B. Cumulative % of variance
variables, whose cumulative % of variance is more than 60%
that will be extracted.
C. Scree plot
scree plot is a graph with y-axis as EIGEN value and x-axis as
no. of variables.
After a sudden bend in the line of a graph respective to that
variable we will extract the variables.
D. A priority determination
we will decide extractable variables beforehand only.
So as per our report analysis from SPSS we will extract
variables on the basis of EIGEN value
From the total variance table of SPSS, variables whose EIGEN
value is more than 1 will be extracted
So in that table 4 variables are having EIGEN value more
than 1, hence factor extraction = 4.

3. Interpretation of scree plot?
In the scree plot, at the variable 5, there is a sudden bend
and so there are 5 variables which are to be extracted.
4. Name the factors that are extracted (factor rotation)?
There are four factors which are extracted and from each
component we will choose the variables which are above = 0
.7 variance.
FACTOR 1 = PRIORITY FACTOR
First factor consists of three variables which are having more
than .7 variance. They are interest,cost,ps having variance
0.701,0.858,0.782 respectively.
FACTOR 2 = INNOVATION FACTOR
In 2
nd
factor, innovation and mobile devices are the two
variables which are having variance more than 0.7 so they
will be extracted from it. There variance are .744&.772
respectively.
FACTOR 3 = NEED FACTOR
In 3
rd
factor , reality and compatibility are the variables which
are having there variances nearer to 0.7 and so they are
extracted from this factor. Their variance is .755&.811
respectively.
FACTOR 4 = GADGET FACTOR
In 4
th
factor, computer is the variables which is having
variance nearer to 0.7 and so they are extracted. Its variance
is 0.860 respectively.


5. Find the surrogate variable?
Surrogate variable is the one which has highest correlation
among the variables in each factor.
After considering each factor the surrogate variable is
COMPUTER because it has the highest variance correlation
i.e. 0.860.
6. Find multiple regressions of three variables i.e. age,
gender, surrogate variable and interpret it?
In our research of multiple regression we had taken
COMPUTER variable as a surrogate variable as it has highest
variance within all factors of the product gaming consoles.
So through SPSS software we interpret the correlation
between the variables as follow:
Annova table is used to identify whether the overall model is
significant or not. If the sig level is less than 0.05 than we
will reject null hypothesis and overall regression model is
consider as significant. But in our research sig level of
annova table is 0.804 which is more than 0.05 hence we will
accept null hypothesis and overall model is not significant.
Talking about each variable as its sig level both variables are
having their sig value more than 0.05 and so they are not
significant to calculate correlation between them.

7. Predict Y for X1 = 27, X2 = 1(male)?
Y = b0 + bX1 + bX2
Y = 2.561 + (.006) (27) + (-0.188) (1)
Y = 2.561 + 0.162 -0.188
Y = 2.535
As we got Y = 2.535, we can say that computer as a
surrogate variable had received a scaling of 3 which is
AGREABLE discount from the age group of 27 males.











FACTOR ANALYSIS

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
Sampling Adequacy.
.616
Bartlett's Test of
Sphericity
Approx. Chi-
Square
119.05
5
Df 45
Sig. .000


Communalities
Initial Extracti
on
Interest 1.000 .564
Cost 1.000 .783
Ps 1.000 .619
Nintendo 1.000 .777
Xbox 1.000 .557
Innovation 1.000 .647
Computer 1.000 .796
mobile
devices
1.000 .637
Reality 1.000 .801
Compatibili
ty
1.000 .772
Extraction Method: Principal
Component Analysis.














Total Variance Explained
Compon
ent
Initial Eigenvalues Extraction Sums of
Squared Loadings
Rotation Sums of
Squared Loadings
Tot
al
% of
Varian
ce
Cumulati
ve %
Tot
al
% of
Varian
ce
Cumulati
ve %
Tot
al
% of
Varian
ce
Cumulati
ve %
1
2.77
3
27.730 27.730
2.77
3
27.730 27.730
2.31
4
23.136 23.136
2
1.64
8
16.478 44.207
1.64
8
16.478 44.207
1.81
5
18.152 41.288
3
1.50
2
15.025 59.232
1.50
2
15.025 59.232
1.59
5
15.948 57.237
4
1.03
1
10.306 69.537
1.03
1
10.306 69.537
1.23
0
12.301 69.537
5 .707 7.075 76.612

6 .631 6.310 82.922

7 .558 5.585 88.507

8 .529 5.287 93.795

9 .396 3.956 97.750

10 .225 2.250 100.000

Extraction Method: Principal Component Analysis.




















Component Matrix
a

Component
1 2 3 4
Interest .659 .125 -.228 -.251
Cost .811 -.002 -.332 -.121
Ps .661 -.173 -.329 -.208
Nintendo .593 -.514 -.314 .252
Xbox .348 -.222 .618 .064
Innovation .551 .203 .537 .118
Computer .433 -.011 .134 .768
mobile
devices
.451 .411 .472 -.205
Reality .240 .855 -.096 -.060
Compatibili
ty
-.139 .589 -.462 .438
Extraction Method: Principal Component
Analysis.
a. 4 components extracted.


Rotated Component Matrix
a

Component
1 2 3 4
Interest .701 .227 .130 -.061
Cost .858 .153 .085 .127
Ps .782 .024 -.082 .031
Nintendo .637 -.195 -.287 .501
Xbox -.007 .541 -.450 .247
Innovation .126 .744 -.035 .277
Computer .076 .208 .087 .860
mobile
devices
.138 .772 .109 -.098
Reality .144 .399 .775 -.147
Compatibili
ty
-.087 -.236 .811 .225
Extraction Method: Principal Component
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 7 iterations.







REGRESSION ANALYSIS

Variables Entered/Removed
a

Mod
el
Variables
Entered
Variables
Removed
Metho
d
1
gender,
age
b

. Enter
a. Dependent Variable: computer
b. All requested variables entered.


Model Summary
Mod
el
R R
Square
Adjusted
R Square
Std. Error
of the
Estimate
1 .093
a
.009 -.031 1.18377
a. Predictors: (Constant), gender, age


ANOVA
a

Model Sum of
Squares
df Mean
Square
F Sig.
1
Regressi
on
.614 2 .307 .219 .804
b

Residual 70.065 50 1.401
Total 70.679 52
a. Dependent Variable: computer
b. Predictors: (Constant), gender, age


Coefficients
a

Model Unstandardized
Coefficients
Standardi
zed
Coefficien
ts
t Sig.
B Std. Error Beta
1
(Consta
nt)
2.561 .502

5.099 .000
Age .006 .015 .061 .433 .667
Gender -.188 .361 -.073 -.521 .605
a. Dependent Variable: computer



















Conclusions

In this study, consumer decision making process for
purchasing gaming consoles was tested by using ten
independent variables. The research was done to identify
which factors have significant influence on the matter. The
ten independent variables are;

The results of the study show that COMPUTER GAMING has
a positive and significant Influence on consumer decision
making. Perhaps, consumers prefer a better branded than
A non branded gaming consoles. They dont mind paying
more money for a gaming console that has a good brand
name.
























Bibliography

1) Research Methodology Concepts and Cases- Deepak
Chawla, Neena Sondhi
2) Internet.
3) SPSS Software