This document presents a project report on factors influencing the buying of mobile handsets in Jagdalpur and Raipur City, India. The objectives are to understand attributes considered during purchase and analyze motivations. A literature review covers criteria like physical attributes, price, features and brand influencing purchase decisions. A questionnaire was used to collect primary data on demographics, ownership, brands, price points, features, and factors affecting choice. Findings show youth prefer Samsung and Xiaomi, are influenced by technology, battery life and camera quality, and consider quality, features and price most important when buying. The conclusion is that consumers are influenced by various criteria, with physical attributes, pricing and features playing key roles in brand selection.
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A PROJECT REPORT ON THE STUDY OF FACTORS INFLUENCING THE BUYING OF MOBILE HANDSETS WITH REFERENCE TO JAGDALPUR AND RAIPUR CITY
1. A PROJECT REPORT ON THE STUDY OF FACTORS
INFLUENCING THE BUYING OF MOBILE HANDSETS WITH
REFERENCE TO JAGDALPUR AND RAIPUR CITY
SUBMITTED BY GUIDED BY
UDIT DAS DR. SUMANTRA BHATTACHARYA
2. TABLE OF CONTENTS
CHAPTER NUMBER PARTICULARS
1 INTRODUCTION
2 LITERATURE REVIEW
3 OBJECTIVES
4 RESEARCH METHODOLOGY
5 FINDINGS AND INTERPRETATION
6 CONCLUSION
7 REFERENCES
3. INTRODUCTION
Indian cell phone advertise is a developing business sector, with numerous cell phone organizations focusing on
India as their market.
A portion of the real universal organizations are Samsung, Apple, Sony, Nokia, Motorola, LG and so on however
the piece of the overall industry of global brand are diminishing as developing brands like One Plus, OPPO,
Redmi, VIVO, Micromax, Huawei, Karbonn, Lava and so on are propelling cell phone with android working
frameworks and wide screen at extremely low value contrast with other worldwide brands.
The India smartphone market grew 7% YoY in both Q4 2019 and in 2019 due to the expansion of Chinese
brands with their aggressive pricing and promotional strategy.
“realme (255%), Xiaomi (5%) and Vivo (76%) were the fastest growing smartphone brands in 2019.”
The Smartphone client are commonly observed to be more youthful than the general feature phone group of
onlookers. Highlights like content to discourse, GPS and social sites are helping individuals to effortlessly stay
coordinated with society.
4. The Indian mobile handset market, second largest in the world, is expected to grow in single-digits in 2020, lower
than the 2019 levels, as consumers are hesitant to upgrade to entry level smartphones and are holding onto their
devices for a longer time
Market research firm TechArc, in its forecast on 2020, said that the overall market will see 2% dip compared to
sales in 2019, attributed to continuous fall in sales of feature phones as well as smart feature phones.
Counterpoint Research predicts a 6-9% growth due to low demand of feature phones. International Data Corp.
(IDC) also expects double-digit growth will be difficult to achieve.
There are about 450 million smartphone users as compared to 550 million feature phone users in India. About 40-
45% of feature phone users own a device at less than Rs 1000.
A survey by Statistica, 2017 indicated that 9% of mobile users in India hear music on their smartphones and 49%
used it for visiting social network sites.
5. LITERATURE REVIEW
According, to Md Reaz Uddin, Nusrat Zahan Lopa & Md. Oheduzzaman (2014), This study has put efforts to
uncover the underlying “factors those affect customers in choosing mobile phones”. The results show that the most
important factor is physical attributes. Some other factors are pricing, charging and operating facilities, size and
weight, friends’ and colleagues’ recommendations, neighbours’ recommendations and advertising. The research
was to find out the underlying factors those have a role to determine the brands while customers purchase mobile
phone. It has been seen from the previous discussion that there are lots of variables customers consider before
choosing brand of mobile phones. Some of the factors influence customers’ decision greatly while others have
comparatively low impact on the purchase decision.
In the study conducted by Mesay Sata (2013) majority of the consumers own Nokia mobile phones. In recent
times, Nokia mobile phone users have plans to shift to other brands such as Samsung, Apple and BlackBerry. The
analysis conducted by the researcher shows that, price is the most dominant factor in the purchase decision of the
consumer. The consumer’s second preference is attractive features prevalent in the mobile handset. However, some
features of mobile phones are given more importance and some are considered as not important.
6. Karjaluoto et al. (2005) study dealt with the choice criteria of the consumers in buying mobile phones. The factors studies
were the influence intention to acquire new mobile phones and factors influencing the change of mobile phones. The technical
problem in mobiles was found to be the main reason to change the mobile phone and the most influential features sought by
consumers before the purchase of mobile phones were price, interface, brand and properties.
M. Aftab Uddin, et. al, 2015 researched on factors affecting buying decision of mobile phones. Through the literature survey,
21-item instrument was designed. Reliability, Kaiser-Mayer-Olkin (KMO), and Bartletts’ tests were carried out to analyze the
data collected from 432 participants. Identified major factors were uniqueness, social identity, brand image, physical attributes,
ease of operation and price.
Rinky Trivedi and Dr. Rahul Raval (2016) considered the various variables influencing purchasing intensions of clients
towards smartphones. A theoretical model was built up that outwardly and naturally influence the buy choices of the clients.
Based on inspecting past research work, the investigation demonstrates that Product Feature, Brand Name, Price, Social
Influence and Convenience have positive effect on customer's buy goal.
7. OBJECTIVES OF THE STUDY
The main objective of this research is to determine the significant influence of product features, brand name, peer
influence, Innovation and product price on the demand for smartphones among customers in Jagdalpur and Raipur
City of India.
To understand the relative importance of different attributes while buying a Smartphone
To analyze what are the factors which influence and eventually motivate the customer to buy a mobile handset in
Indian market.
8. RESEARCH METHODOLOGY
Research methodology is the specific procedures or techniques used to identify, select, process, and analyze
information about a topic. In a research paper, the methodology section allows the reader to critically evaluate a
study’s overall validity and reliability. The methodology section answers two main questions: How was the data
collected or generated? How was it analyzed?
SOURCES OF DATA
1. PRIMARY DATA
2. SECONDARY DATA
PRIMARY DATA -To collect primary data Questionnaires were used. Questionnaire was prepared very carefully so
that it may prove to be effective in collecting the right information.
SECONDARY DATA - Secondary data collected from different website. This secondary data formed the conceptual
background for the project.
9. METHOD OF DATA COLLECTION
The questionnaire is circulated from the Google doc and completed from respondents.
ANALYSIS TECHNIQUE USED
Demographic analysis uses the data to provide descriptions of the population, depicted through graphical
representation using graphs or tables, charts etc and included age, gender and annual income of customers in INR. In
Descriptive analysis collected data are analyzed and interpreted and used to derive meaningful information and
results.
10. INTERPRETATION
Factor 1 - Education - Most of the respondents are of bachelor in level of education as shown in the figure below
Factor 2 - Respondents who own a Mobile Phone Set - Before asked about factors that influence mobile phone
purchase, respondents were first questioned on whether or not they did own one. All 124 respondents owned a mobile
phone handset.
Factor 3 - Purchase Decision – In my research I found that most of the respondents are influenced by the features of
the product in their purchase decision
Factor 4 - Brand of Current Mobile Phone Handset - The questionnaire sought to obtain the mobile phone handset
brand and this, based on previous studies has shown be one the factors that determine purchase.
Factor 5 - Reasons for choosing current phone – Maximum number of the respondents chose their current
smartphone because of better features compared to other brands as well as their loyalty toward the brand of the
mobile handsets they are using.
Factor 6 - Price – In my research I found that most of the respondents tends towards mid-range price segment of
mobile handsets
11. Factor 7 - Recency of Purchase of Current Mobile Phone Handset
The recency of purchase of the respondents’ current mobile phone was used to determine how new the mobile phone
handset is. From the chart below, it shows that more than 26.2 percent of the respondents don’t buy a new mobile
phone handset untill their mobile handsets works and 22.1 percent purchased their mobile phone handset within the 2-
3 years respectively. This goes to show that 48 percent of the respondents don’t buy their mobile phone handset much
frequently.
Factor 8 - Factors affecting purchase – Family and friends, advertisements and attractive display affects the
maximum number of the respondents at the time of their purchase followed by other factors.
Factor 9 - Medium of advertisement – Most of respondents are influenced by internet as medium of advertisement
with 72.9% ratio while compared to other mediums of advertisement as internet is accessible to most of the people.
Factor 10 - Importance of features – Battery life, Internet connection, camera quality and quality headset are found
to be most important features of the headsets among the respondents.
Factor 11 - Important factors while buying a mobile phone – After conducting my research I came to a point that
Quality, Technology and Memory are the most important factors while buying a mobile phone for the respondents
followed by other factors.
12. FINDINGS
In my research I found that majority of the respondents belongs to age group between 20-25 years which is
considered as youth group of people and most of them are doing their bachelors or masters.
In my research I found that 61.5% of the respondents use only one mobile phone and the rest of them are using 2-3
phones.
In my research I found that majority of my respondents get influenced by phone with better features while buying
a mobile phone.
In this research we can get that majority of the respondents prefer Samsung or Xiaomi over other brands and rest
of the remaining group of people are using Apple, Nokia, Realme, Vivo.
I found that majority of my respondents are willing to spend moderate amount to buy a phone i.e. Rs.10000-
25000, among the rest of the respondents 38% of them are willing to pay up to Rs.40000 or more to buy a phone
13. In my findings I found that majority of my respondents i.e. 48% of the respondents don’t buy mobile phones
frequently while 26.2% of the respondents willing to buy phone according to durability of handset.
In my findings I found that majority of my respondents buy phone after getting information through internet as
well as through family and friends. Television, Attractive display, and advertisement are the second most important
factors in influencing the buying of mobile phone.
In my research I found that majority of my respondents get very much influenced by social media when buying a
phone.
In my findings I found that features of the phone i.e. Technology, Battery life, Camera, Quality highly influences
the buying behaviour of my respondents.
14. 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 or a particular store in
preferred to others.
Consumers mostly preferred Samsung mobile phones.
The research has identified that many factors are deemed as selection criteria of mobile phone. Not necessarily all
the variables influence a person in the same way and same extent.
In case of choosing mobile phone brands, mostly considered factors by customers include physical attributes,
pricing, charging and operating facilities, size and weight.
In this study the researcher had taken the eleven brands of mobile phones and given the suggestions according to
the criteria like pricing, advertisement, look and feel, function ability and easy friendly.
15. REFERENCES
Karjaluoto, Heikki, Karvonen, Jari, Kesti, Manne, Koivumäki, Timo, Manninen, Marjukka, Pakola, Jukka, Ristola,
Annu and Salo, Jari (2005) Factors Affecting Consumer Choice of Mobile Phones, Two Studies from Finland.
Journal of Euromarketing, Vol. 14(3), pp. 59-82.
Mohankumar, A. and Dineshkumar, U. (2015), A Study on Customer Purchase Behavior towards Mobile Phone
with Special Reference to Erode City, OSR Journal of Business and Management(IOSR-JBM), Vol. No.4,
(National Conference on "Innovative Business Practices in Technological Era"), pp.04-08. e-ISSN:2278-487X,
pISSN:2319-7668, www.iosrjournals.org.
Sata, Mesay (2013), Factors Affecting Consumer Buying Behavior of Mobile Phone Devices, Meditarrenean
Journal of Social Sciences, Vol. 4, No. 12, October 2013, Doi:10.5901/mjss.2013.v4n12p103, ISSN 2039-2117
(online), ISSN 2039-9340 (print).
Sata, Mesay (2013), Factors Affecting Consumer Buying Behavior of Mobile Phone Devices
Uddin, Md Reaz, Lopa, Nusrat Zahan and Oheduzzaman, Md. (2014), Factors Affecting Customers’ Buying
Decisions Of Mobile Phone: A Study on Khulna City, International Journal of Managing Value and Supply Chains
(IJMVSC) Vol.5, No. 2, June 2014 DOI: 10.5121/ijmvsc.2014.5203 21.]