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Abstract:

The purpose of that study is to understand the level of brand loyalty in the
customers and to know how satisfied the customers are after using the
Nokia product. The brand loyalty in the nokia has been has been checked out
with the help of a self prepared questionnaire in which both open and close
ended questions were asked and sample size was about 30.The majority of
the respondents expressed their greater level of satisfactions towards the
nokia and 80% of the respondents are completely satisfied and are brand
loyal in nokia. some suggestions have got as well from the respondents such
its high rates, to avail double sim facility are most well known among them.

Introduction:
Now a days the market has become so dynamic and competitive and a
successful company has to keep a close eye on its customers satisfaction to
maintain or to improve its status in the market. a company should not only
the sale f the product but it should keep its self in touch with the
customers even after sold out the product to measure the level of
satisfaction because if the customer bring positive words of mouth so it
lower come 85% of the expenditures in the company. Nokia is a very well
reputed company in all over the world and its essential for him to be aware
with the customers wheather they are still brand loyal or not towards the
nokia products.So this study has been conducted to know the level of loyalty
in the customers.

nokia is a Finnish multinational communications corporation, 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 Nokia’s total workforce. The Nokia
Research Center, founded in Nokia Corporation history.doc1986, 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;
Komárom, Hungary; ChennaiNokia Corporation history.docNokia Corporation
history.docNokia Corporation history.doc, 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 the
largest Finnish company, 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 is an important employer in
Finland and several small companies have grown into large ones as Nokia's
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 the state budget of Finland.

Finns have ranked Nokia many times as the best Finnish brand and employer.
The Nokia brand, valued at $35.9 billion, is listed as the 5th most valuable
global brand in Interbrand/BusinessWeek's Best Global Brands list of 2008
(1st non-US company). It is the number one brand in Asia (as of 2007)[ and
Europe (as of 2008), the 23rd (tied with Exxon Mobil; 2nd in Network
Communications, 5th non-US company),and is the world's 88th largest
company in Fortune Global 500 list of 2008, up from 119 of most admirable
company worldwide in Fortune's World's Most Admired Companies list of
2008 the previous year. As of 2008, AMR Research ranks Nokia's global
supply chain number two in the world.http://en.wikipedia.org/wiki/Nokia - cite_note-13#cite_note-13

http://en.wikipedia.org/wiki/Image:Nokia_HQ.jpg
The Nokia House, Nokia's head office located by the Gulf of Finland in
Keilaniemi, Espoo, was constructed between 1995 and 1997. It is the
workplace of more than 1,000 Nokia employees.

Nokia Corporation
Typ Public – Oyj
e (OMX: NOK1V, NYSE: NOK, FWB: NOA3)
Founded Nokia, Finland (1865)
Founder(s) Fredrik Idestam
http://en.wikipedia.org/wiki/Image:Flag_of_Finland.svgEspoo,
Headquarters
Finland
Area served Worldwide
Kari Kairamo, CEO in the 1980s
Key people Olli-Pekka Kallasvuo, President & CEO
Jorma Ollila, Chairman
Telecommunications
Industry Internet
Computer software
Mobile phones
Smartphones
Products
Multimedia computers
Networks
Services and Software
Services
Online services
Market cap ▲ €101.995 bn (2007)[1]
Revenue ▲ €51.058 bn (2007)
Operating
▲ €7.985 bn (2007)
income
Net income ▲ €7.205 bn (2007)
Total assets ▲ €37.599 bn (2007)
Total equity ▲ €17.338 bn (2007)
Employees 123,006 as of September 30, 2008[2]
Nokia Siemens Networks
Vertu
Subsidiaries
Navteq
Qt Software
Website nokia.com

History
Pre-telecommunications era

What is known today as Nokia was established in 1865 as a wood-pulp mill by


Fredrik Idestam on the banks of the Tammerkoski rapids in the town of
Tampere, in south-western Finland. The company was later relocated to the
town of Nokia by the Nokianvirta river, which had better resources for
hydropower production. That is where the company got the name that it still
uses today. The name Nokia originated from the river which flowed through
the town. The river itself, Nokianvirta, was named after the old Finnish word
originally meaning a dark, furry animal that was locally known as the nokia, or
sable, or later pine marten.

Finnish Rubber Works established its factories in the beginning of 20th


century nearby and began using Nokia as its brand. Shwere merged to form
Nokia Corporation in 1967.

The new company was involved in many sectors, producing at one time or
another paper products, bicycle and car tires, footwear (including Wellington
boots), personal computers, communications cables, televisions, electricity
generation machinery, capacitors, aluminium, etc.

Telecommunications era

The seeds of the current incarnation of Nokia were planted with the
founding of the electronics section of the cable division in the 1960s. In the
1967 fusion, that section was separated into its own division, and began
manufacturing telecommunications equipment.

First mobile phones

Nokia had been producing commercial and military mobile radio


communications technology since the 1960s. Since 1964 Nokia had developed
VHF-radio simultaneously with Salora Oy, which later in 1971 also developed
the ARP-phone. In 1979 the merger of these two companies resulted in the
establishment of Mobira Oy. Mobira began developing mobile phones for the
Nordic Mobile Telephony (NMT) network standard that went online in the
1980s and in 1982 it introduced its first car phone, the Mobira Senator for
NMT 450 networks.
http://en.wikipedia.org/wiki/Image:Mobira_Cityman_200.jpg
The Mobira Cityman 200, Nokia's NMT-900 mobile phone from the early
1990s.
Nokia bought Salora Oy in 1984 and now owning 100% of the company,
changed the company's telecommunication branch name to Nokia-Mobira Oy.
The Mobira Talkman, launched in 1984, was one of the world's first
transportable phones. In 1987, Nokia introduced one of the world's first
handheld phones, the Mobira Cityman 900. While the Mobira Senator of
1982 had weighed 9.8 kg (22 lb) and the Talkman just under 5 kg (11 lb), the
Mobira Cityman weighed only 800 g (28 oz) with the battery and had a price
tag of 24,000 Finnish marks (approximately €4,560). Despite the high price,
the first phones were almost snatched from the sales assistants’ hands.
Initially, the mobile phone was a "yuppie" product and a status symbol.

In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile
phone unit, along with two other employees from the unit, started a notable
mobile phone company of their own, Benefon Oy. One year later, Nokia
Mobira Oy became Nokia Mobile Phones and in 1991 the first GSM phone was
launched.

Nokia Siemens Networks

Nokia Siemens Networks (previously Nokia Networks) provides mobile


network infrastructure, communications and networks service platforms, as
well as professional services to operators and service providers. Networks
focuses in: GSM, EDGE, 3G/WCDMA and WiMAX radio access networks;
core networks with increasing IP and multiaccess capabilities; and services.

At the end of 2005, Nokia Networks had more than 150 mobile network
customers in more than 60 countries, with its systems serving in excess of
400 million subscribers.

On June 19, 2006 Nokia and Siemens AG announced the companies are to
merge their mobile and fixed-line phone network equipment businesses to
create one of the world's largest network firms, called Nokia Siemens
Networks. The Nokia Siemens Networks brand identity was subsequently
launched at the 3GSM World Congress in Barcelona in February 2007.

Corporate affairs
Corporate governance

The control and management of Nokia is divided among the shareholders at a


general meeting and the Group Executive Board (left),] under the direction
of the Board of Directors (right). The Chairman and the rest of the Group
Executive Board members are appointed by the Board of Directors. Only the
Chairman of the Group Executive Board can belong to both, the Board of
Directors and the Group Executive Board. The Board of Directors'
committees consist of the Audit Committee, the Personnel Committeeand
the Corporate Governance and Nomination Committee.

The operations of the company are managed within the framework set by
the Finnish Companies Act,] Nokia's Articles of Association and Corporate
Governance Guidelines, and related Board of Directors adopted charters.
Group Executive Board Board of

ge:Flag_of_Finland.svgOlli-Pekka Kallasvuo (Chairman), b. 1953 http://en.wikipedia.org/wiki/Im


rd Chairman of Nokia Corporation since June 1, 2006 Ollila (Chairman), b. 1950
s since May 3, 2007 Board member since 1995, Chairman
roup Executive Board member since 1990 Chairman of the Board of Directors o

ge:Flag_of_Finland.svgRobert Andersson, b. 1960 http://en.wikipedia.org/wiki/Im


ce, Strategy and Sourcing
s.svgDame Marjorie Scardino (
rd member since 2005
Board member since 2001
Chairman of the Corporate Governan
ge:Flag_of_the_United_Kingdom.svg/http://en.wikipedia.org/wiki/Image:Flag_ of the Personnel Committee
d-Wylie, b. 1958 Chief Executive Officer and member
Networks PLC
rd member since 2005
http://en.wikipedia.org/wiki/Im
ge:Flag_of_Finland.svgTimo Ihamuotila, b. 1966 Ehrnrooth, b. 1940
Board member since 2000
roup Executive Board member since 2007 Member of the Audit Committee, Me
Nomination Committee
ge:Flag_of_the_United_States.svgMary T. McDowell, b. 1964
ment Officer http://en.wikipedia.org/wiki/Im
ard member since 2004 Gupte, b. 1948
Board member since 2007
ge:Flag_of_Norway.svgHallstein Mørk, b. 1953 Member of the Audit Committee
ces Non-executive Chairman of the ICIC
rd member since 2004
http://en.wikipedia.org/wiki/Im
ge:Flag_of_Finland.svgDr. Tero Ojanperä, b. 1966 Bengt Holmström, b. 1949
& Communities Board member since 1999
rd member since 2005 Paul A. Samuelson Professor of Econo
Technology,
ge:Flag_of_Finland.svgNiklas Savander, b. 1962 joint appointment at the MIT Sloan S
ftware
rd member since 2006 http://en.wikipedia.org/wiki/Im
Henning Kagermann, b. 1947
ge:Flag_of_the_United_States.svgRichard A. Simonson, b. 1958 Board member since 2007
l Officer CEO and Chairman of the Executive B
rd member since 2004
http://en.wikipedia.org/wiki/Im
ge:Flag_of_Finland.svgVeli Sundbäck, b. 1946 Pekka Kallasvuo, b. 1953
ations and Responsibility
Board member since 2007
rd member since 1996
President and CEO of Nokia Corporat

ge:Flag_of_Finland.svgAnssi Vanjoki, b. 1956 http://en.wikipedia.org/wiki/Im


Karlsson, b. 1955
rd member since 1998
Board member since 2002, Independ
Chairman of the Personnel Committee
ge:Flag_of_Finland.svgDr. Kai Öistämö, b. 1964
and Nomination Committee

rd member since 2005


http://en.wikipedia.org/wiki/Im
Siilasmaa, b. 1966
Board member since 2008
Member of the Audit Committee

http://en.wikipedia.org/wiki/Im
Suila, b. 1945
Board member since 2006
Member of the Audit Committee

Corporate culture
http://en.wikipedia.org/wiki/Image:Nokian_p
%C3%A4%C3%A4konttori_Keilaniemess%C3%A4.jpg
The Nokia House, Nokia's head office in Keilaniemi, Espoo, Finland.
Nokia's official corporate culture manifesto, The Nokia Way, emphasises
the speed and flexibility of decision-making in a flat, networked
organization, although the corporation's size necessarily imposes a certain
amount of bureaucracy.

The official business language of Nokia is English. All documentation is


written in English, and is used in official intra-company spoken
communication and e-mail.

Until May 2007, the Nokia Values were Customer Satisfaction, Respect,
Achievement, and Renewal. In May 2007, Nokia redefined its values after
initiating a series of discussions worldwide as to what the new values of the
company should be. Based on the employee suggestions, the new values were
defined as: Engaging You, Achieving Together, Passion for Innovation and
Very Human.

Research cooperation with universities

• Helsinki University of Technology, Finland

• Massachusetts Institute of Technology, United States

• Stanford University, United States

• Tampere University of Technology, Finland

• University of Cambridge, United Kingdom

• University of Glasgow, United Kingdom


Literature reviews:
(1)According to the Bennett Rundle, the empirical tests of two measures
of attitudinal brand loyalty to identify if they are items of a single
construct or two distinct constructs. These two measures are an individual's
propensity to be brand loyal, and attitude towards the act of purchasing a
specific brand. This paper also seeks to determine which of these measures
would be more useful for explaining purchasing behaviour. The results
confirm the hypothesis that there is no significant relationship between the
two measures in the business services market. This indicates that they are
in fact not measures of the same concept but two separate concepts.
Aggregating the scores from both measures to form a single score for
attitudinal loyalty would reduce richness of explanation for marketing
practitioners. In addition, the results suggest that the attitude towards the
act of purchasing a brand can be used to explain or predict purchasing
behaviour.
(2) Rundle Thiele S Mackay expresses in his research article that the
results indicate that all eight measures can be considered as indicators of
brand loyalty in service markets. Two distinct concepts of loyalty were
apparent in the telecommunications market. A third possible concept,
termed differentiation loyalty, was also evident in the analysis conducted.
This suggests that distinguishing between concepts does matter, specifically
in service markets where a decrease in behavioral loyalty results in a
customer defection. There is no difference in the performance of brand
loyalty measures in service markets when compared with a repeat-purchase
market.
(3)Proposes that no company can stay in business unless it has satisfied and
loyal customers. Suggests that there is a critical distinction between making
more customers satisfied and making customers more satisfied. Posits that
the secret of boosting bottom-line results is in making some of the
customers “much more than just satisfied”. Concludes that customer loyalty
cannot be measured by customer satisfaction alone and provides key
questions for the company to ask when auditing a customer loyalty
programme.

Methodology:
This research study has based on a self administered questionnaire. The size
of random sample has selected as 30 in which both kind of quantitative and
qualitative questions were asked that were in the form of close and open
ended. Different useful suggestions and ideas have been conducted as well
through open ended question in the questionnaire. And basically this has
been developed to understand the brand loyalty in the customers of Nokia
and to get the level of satisfaction amoung them.
Sample has selected about 30 in which there was no mentioned of age and
sex and other requirements of identifications due to unnecessary step.

Hypothesis:
Customers are truly satisfied towards the Nokia cell phones.

Questionnaire:
To conduct the primary data a questionnaire has developed in which just 9
questions were added and a portion of suggestion to get the creative ideas
from the respondents,

Questionnaire

Topic: Brand loyalty


Company: Nokia mobile phone Corporation.
1.Your profession?
a. student b. employed

2.What cell phone you are using?


a. nokia b. Samsung c. motto d. Sony ericson e. others

3.Have you ever used nokia in case you are using another cell phone?
a. yes b. no

4. What makes you to prefer Nokia?


a. quality
b. affordable price
c. stylish
d. durability

5. If you have to guide someone to buy a cell phone what that would be?
a. nokia b. Samsung c. moto d. Sony ericson e. others

6.Would you yet prefer nokia even its price rises?


a. yes b. no

7.Would you prefer it in the coming days?


a. yes b. no c. may be

8.Nokia deserve the priority in the market that it has?


a. agree b. disagree c. strongly agree d. strongly disagree e.
uncertain

9.What grade you would like to give to nokia?


a. A b. B c. C d. D

Any suggestion you think nokia should work on?


_________________________________________________________
_________________________________________________________
_________________________________________________________
_____________________________________________

Analysis tools:
analysis was made only on the basis of simple computation and percentage of
each question;s answer. All options of a question were treated in the form of
percentage. A descriptive simple calculations ahs used.

Findings:
It has been taken out from the analysis of questionnaire that 72.41% are
using nokia cell phones,13.79% Samsung,10.34 sony ericson and 10.34 are
using moto which means that most of them are using nokia because of high
level of satisfaction in the customers.

From all respondents only 86.2% of them have used nokia while rest of them
haven’t used before but using now.

Customers are brand loyal toward nokia cell phone because of its durability
very much because 58.62% of respondents prefer nokia due to its durability,
44.82% for good quality and 3.44% for effordable price.
Most of the respondents are purely satisfied with nokia because 82.75% has
expressed that they would guide someone to purchase a nokia cell phone and
remaining suggested for other phones so majority of the users are getting
and have got the desired level of output from nokia cell phones.

68.96% answered yes when they were asked wheather they would prefer
nokia if its prices goes high that is the pure sign of their brand loyality.

79.31% would prefer nokia even in the coming days because they are getting
the desired responses from the nokia cell phones.

Nokia really deserve the priority in the market that it has now because just
58.62% are agree with that statement,27% strongly agree,10% isagree and
5% strongly disagree with that statement.

Nokia is much popular amoung the people spacialy customers so 72% of the
respondents are willing to reward A grade to the nokia corporation, 24%
with grade B and 4% with grade c that shows majority of them are just
satisfied.

Some of the useful ideas and suggestions have been conducted as well in
which majorority of them reveals to lowercome the prices because it
appears expensive to them and it just targeting the rich families only so high
quality product should also be appeared with lower rates to satisfy them.
Some of respondents complaints to improve the quality of image and other
functions to compete efficiently.
Respondents group also reveals that its weight is bit heavy than other cell
phones so nokia shoul emphasize on the lightness of the product as well.
To launch the double sim facility in the handsets as well because now adays
people are using saverals sims so this facility in the nokia handsets would
attract them as well.

Conclusion and discussion:


It has been concluded that majority of the customers are srtong brand loyal
towards the nokia cell phones and 80% of the respondents expressed their
strong loyalty towards the noia company products because they have got
thge desired satisfaction from noki. Majority of the respondents are in
favor of nokia so they are totaly satisfied with its price , durability, style
and other best features.
Some useful suggestions also have been collected in which mostly have
focused on the nokia cell phones rates and nokia should also bring some lower
rate or it should bring down its prices too. Another suggestion include double
sim facility in the cell phones of nokia because now adays people are more
concern with more than one sim.
Nokia has a powerful goodwill in the market and its customers are
majorly satisfied with its response so their are some dapartments as well on
which nokia should focus on to capture the more shares of the market.

References:
(1) Authors: Bennett Rundle A comparison of attitudinal loyalty
measurement approaches
Source: The Journal of Brand Management, Volume 9, Number 3, 1 January
2002 , pp. 193-209(17)

Publisher: Palgrave Macmillan

Journal of Brand Management (2002) 9, 193-209;


doi:10.1057/palgrave.bm.2540069

(2) Authors: Rundle-Thiele S.; Mackay M.M. Assessing the

performance of brand loyalty measures .


Source: Journal of Services Marketing, Volume 15, Number 7, 2001 , pp.
529-546(18)

Publisher: Emerald collection Publishing Limited

(3) Author: Graham Gould why is that customer loyalty that counts.
Journal: managing service quality.
Year 1995, issued 1, volume 5 page 15-19
Publisher: Mcb up ltd

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