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  2. 2. 2 CERTIFICATE TO WHOM SO EVER IT MAY CONCERN We do hereby declare that the report titled “Consumer buying behaviour Towards Smartphone” has been prepared and submitted by Mr. , in partial fulfillment of the requirements of Bachelor of Business Administration (BBA) from our institute during the period 2015-2016, under the guidance of Mr. , Assistant Professor, Department of Management, Invertis University, Bareilly. We take the responsibility regarding the authenticity of the information in this report. The report will be kept confidential and will not be submitted to any other organization. HOD-BBA Invertis University
  3. 3. 3 GUIDE’S CERTIFICATE This is to certify that Mr. , currently undergoing Bachelor of Business Administration (BBA) from Invertis University, Bareilly, has completed and submitted the project on “Consumer buying behaviour Towards Smartphone” under my guidance. I wish him a bright future and every success in life. Assistant Professor Department of Management Invertis University Bareilly.
  4. 4. 4 ACKNOWLEDGEMENT Doing such project report is an arduous task in itself. It was fortunate enough to get support from a large number of persons whom I shall always remain grateful. I would like to express my deep gratitude to all those who, directly or indirectly made this project report possible. First of all I would like to thank my parents for encouraging me throughout my life, whatever the circumstances were, their blessing were always with me. I would like to express my gratitude to Mrs. (HOD BBA, Invertis University, Bareilly) who gave me an opportunity to get the a live exposure to banking industry. I would like to express my sincere thanks to my project guide Mr. (Assistant Professor, Department Of Management, Invertis University, Bareilly) who devoted his precious time from his busy schedule to guide and help me at all times. It is under his valuable guidance, constant interest and encouragement that I have been able to complete this project. I would appreciate all the respondents who took out their valuable time to give their views and fill the questionnaire. Lastly, I take this opportunity to thank my friends who chipped-in with some valuable suggestions for the betterment of this project. Rajnish Ranjan
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  7. 7. 7 INTRODUCTION A smartphone or smart phone is a mobile phone with an advanced mobile operating system which combines features of a personal computer operating system with other features useful for mobile or handheld use. They typically combine the features of a cell phone with those of other popular mobile devices, such as personal digital assistant (PDA), media player mind GPS navigation unit. Smartphones are used to make phone calls and send text messages but they can also be used for accessing the internet and check your emails, search the internet and much more. A smartphone can: Make voice calls (of course!) Make video calls Access the internet and browse the web Take photos, and upload them to the web Navigate with GPS if the phone has GPS built-in Play back music and video stored on the phone (and connect to a PC to copy media to it) Manage your contacts and appointments Send emails Play in-built games Run new applications and games downloaded for the internet. There are many different brands of smartphones e.g. iPhones – made by Apple • Android Phones made by Samsung, HTC, etc.
  8. 8. 8 • Windows Phones made by Nokia The difference between each phone is that they have a different operating system developed by the different manufacturers Most Smartphones produced from 2012 onwards also have high-speed mobile broadband 4G LTE internet, motion sensors, and mobile payment mechanisms. In 2014, sales of smartphones worldwide topped 1.2 billion, which was up 28% from 2013.
  9. 9. 9 HISTORY Early years The first caller identification receiver (1971) Devices that combined telephony and computing were first conceptualized by Tesla 1909 and Theodore Paraskevakos in 1971 and patented in 1974, and were offered for sale beginning in 1993. Paraskevakos was the first to introduce the concepts of intelligence, data processing and visual display screens into telephones. In 1971, while he was working with Boeing in Huntsville, Alabama, demonstrated a transmitter and receiver that provided additional ways to communicate with remote equipment, however it did not yet have general purpose PDA applications in a wireless device typical of smartphones. They were installed at Peoples' Telephone Company in Leesburg, Alabama and were demonstrated to several telephone companies.
  10. 10. 10 The original and historic working models are still in the possession of Paraskevakos. Forerunner The first mobile phone to incorporate PDA features was an IBM prototype developed in 1992 and demonstrated that year at the COMDEX computer industry trade show. The prototype demonstrated PDA features as well as other visionary apps like maps, stocks and news incorporated with a cellular phone. A refined version of the product was marketed to consumers in 1994 by BellSouth under the name Simon Personal Communicator. The Simon was the first cellular device that can be properly referred to as a "smartphone", although it was not called that in 1994. The term "smart phone" first appeared in print in 1995, for describing AT&T's "PhoneWriter Communicator" as a "smart phone". PDAs Personal digital assistant In the late 1990s, many mobile phone users carried a separate dedicated PDA device, running early versions of operating systems such as Palm OS, BlackBerry OS or Windows CE/Pocket PC. These operating systems would later evolve into mobile operating systems. In March 1996, Hewlett-Packard released the OmniGo 700LX, which was a modified 200LX PDA that supported a Nokia 2110-compatible phone and had integrated software built in ROM to support it. In August 1996, Nokia released the Nokia 9000 Communicator which combined a PDA based on the GEOS V3.0 operating system from Gasworks with a digital cellular phone based on the Nokia 2110. The two devices were fixed together via a hinge in what became known as a clamshell design.
  11. 11. 11 In June 1999, QUALCOMM released a "CDMA Digital PCS Smartphone" with integrated Palm PDA and Internet connectivity, known as the "pdQ Smartphone". In early 2000, the Ericsson R380 was released by Ericsson Mobile Communications, and was the first device marketed as a "smartphone". It combined the functions of a mobile phone and a PDA, supported limited web browsing with a resistive touchscreen utilizing a stylus. In early 2001, Palm, Inc. introduced the Kyocera 6035, which combined a PDA with a mobile phone and operated on Verizon. It also supported limited web browsing. Smartphones before Android, iOS and BlackBerry, typically ran on Symbian, which was originally developed by Psion. It was the world's most widely used smartphone operating system until the last quarter of 2010. Mass adoption In 1999, the Japanese firm NTT DoCoMo released the first smartphones to achieve mass adoption within a country. These phones ran on i-mode, which provided data transmission speeds up to 9.6 kbit/s. Symbian was the most popular smartphone OS in Europe during the middle to late 2000s. Initially, Nokia's Symbian devices were focused on business, similar to Windows Mobile and BlackBerry devices at the time. From 2006 onwards, Nokia started producing entertainment-focused smartphones, popularized by the Nseries. In Asia, with the exception of Japan, the trend was similar to that of Europe
  12. 12. 12 iOS and Android In 2007, Apple Inc. introduced the iPhone , one of the first smartphones to use a multi-touch interface. The iPhone was notable for its use of a large touchscreen for direct finger input as its main means of interaction, instead of a stylus, keyboard, or keypad typical for smartphones at the time . In2008 saw the release of the first phone to use Android called the HTC Dream (also known as the T-Mobile G1). Android is an open-source platform founded by Andy Rubin and now owned by Google. Although Android's adoption was relatively slow at first, it started to gain widespread popularity in 2010, and now dominates the market. These new platforms led to the decline of earlier ones. Microsoft, for instance, started a new OS from scratch, called Windows Phone. Nokia abandoned Symbian and partnered with MS to use Windows Phone on its smartphones. Windows Phone then became the third-most-popular OS. Palm's webOS was bought by Hewlett-Packard and later sold to LG Electronics for use on LG smart TVs.
  13. 13. 13 BlackBerry Limited, formerly known as Research In Motion, also made a new platform based on QNX, BlackBerry 10. The capacitive touchscreen also had a knock-on effect on smartphone form factors . Before 2007 it was common for devices to have a physical numeric keypad or physical QWERTY keyboard in either a candybar or sliding form factor. However, by 2010, there were no top-selling smartphones with physical keypads. Recent technological developments • In 2013, the Fair phone company launched its first "socially ethical" smartphone at the London Design Festival to address concerns regarding the sourcing of materials in the manufacturing. • In late 2013, os commenced production of a smartphone designed entirely around security, encryption and identity protection. • In December 2013, the world's first curved OLED technology smartphones were introduced to the retail market with the sale of the Samsung Galaxy Round and LG G Flex models.[30] Samsung phones with more bends and folds in the screens were expected in 2014. [31] • In early 2014, smartphones were beginning to use Quad HD (2K) 2560x1440 on 5.5" screens with up to 534 PPI on devices such as the LG G3 which is a significant improvement over Apple's Retina Display. Quad HD is used in advanced televisions and computer monitors, but with 110 ppi or less on such larger displays.
  14. 14. 14 • As of 2014, Wi-Fi networks were much used for smartphones. As Wi-Fi becomes more prevalent and easier to connect to, Wi-Fi phone services will start to take off. • Smartphones are increasingly integrated with everyday uses. For instance, credit cards and mobile payments are integrated into smartphones where users can send cash payments through smartphone applications and SaaS platforms. Recently, Apple Pay has picked up 34 new banks to the roster supporting their mobile payment platform, where merchants are rapidly adopting it . Additionally, recent technological innovations are causing keys to be fused into the smartphones, where the smartphone act as a digital key and access badge for its users. • Since 2013, water and dustproofing have made their way into mainstream high end smartphones instead of specialty models with the Sony Xperia Z continuing through the Sony Xperia Z3 and with the Samsung Galaxy S5. • One problem with smartphone cameras is focusing on subject, but the LG G3 has lasers to help focus. • Some smartphones can be categorized as high-end point-and-shoot cameras with large sensors up to 1" with 20 megapixels and 4K video. Some can store their pictures in proprietary raw image format, but the Android (operating system) 5.0 lollipop serves open source RAW images. • Apple released iphone 6 September 19 2014 and September 25 (in us,uk.eg) iphone 6s year of apple watch(phone/watch)and discountinuing 5c. Future possible developments
  15. 15. 15 • A clear thin layer of crystal glass can be added to small screens like watches and smartphones that make them solar powered. • Smartphones could gain 15% more battery life during a typical day. The first smartphones using this technology should arrive in 2015. This screen can also work to receive Li-Fi signals and so can the smartphone camera. The cost of these screens per smartphone is between $2 and $3, much cheaper than most new technology. • Near future smartphones might not have a traditional battery as their sole source of power. Instead, they may pull energy from radio, television, cellular or Wi-Fi signals.[4
  16. 16. 16 Mobile operating systems Android Android is an open-source platform founded in October 2003 by Andy Rubin and backed by Google, along with major hardware and software developers (such as Intel, HTC, ARM, Motorola, LG, and Samsung) that form the Open Handset Alliance. In October 2008, HTC released the HTC Dream, the execution of native applications and third-party apps which are available via Google Play, which launched in October 2008 as Android Market. Android became the best-selling smartphone platform. ANDROID Smartphones present features • Blow Detection • Curved screen • Eyes detection • S- Pen • Hover-Over • Face detection • Gaming
  17. 17. 17 • Free/Instant/Messaging/Calling • Connectivity BEST ANDROID SMARTPHONES Samsung Galaxy S6 LG G4 Nexus 6P Blackberry Priv HTC One M9 Moto X Pure Edition 2015
  18. 18. 18 iOS iOS is a mobile operating system developed by Apple Inc. and distributed exclusively for Apple hardware. It is the operating system that powers the company's Devices. In 2007, Apple introduced the iPhone, the first device to use iOS and one of the first smartphones to use a multi-touch interface. The iPhone was notable for its use of a large touchscreen for direct finger input as its main means of interaction, instead of a stylus, keyboard, or keypad as typical for smartphones at the time Best Ios Smartphone iPhone 6s iPhone6
  19. 19. 19 iPhone5s iPhone5c iPhone5(discontinued now) iPad 4 iPad mini Windows Phone In 2010, Microsoft unveiled Windows Phone 7 with a User Interface inspired by Microsoft's "Metro Design Language", to replace Windows Mobile. Windows Phone 7 integrates with Microsoft services such as Microsoft SkyDrive, Office, Xbox and Bing, as well as non- Microsoft services such as Facebook, Twitter andGoogle accounts.
  20. 20. 20 This software platform runs the Microsoft Mobile smartphones, and has received some positive reception from the technology press and been praised for its uniqueness and differentiation Best Windows Phones Nokia Lumia 930 Nokia Lumia 735 Nokia Lumia 1520 Microsoft Lumia 435 Microsoft Lumia 640 Microsoft Lumia 535 Microsoft Lumia 830 BlackBerry
  21. 21. 21 In 1999, RIM released its first BlackBerry devices, providing secure real-time push-email communications on wireless devices. Services such as BlackBerry Messenger provide the integration of all communications into a single inbox. In September 2012, RIM announced that the 200 millionth BlackBerry smartphone was shipped. As of September 2014, there are around 46 million active BlackBerry service subscribers.[55] Most recently, RIM has undergone a platform transition, changing its name to BlackBerry and making new devices on a new platform named "BlackBerry 10." Best Blackberry Phones Blackberry Z10 Blcakberry Z3 Blackberry Z30 Blackberry A10 Blackberry Passport Blackberry Strom2 9550 Blackberry Q10
  22. 22. 22 ISSUES Smartphones have issues besides those affecting other mobile telephones. Battery life Compared to earlier non-smartphones, smartphone battery life has generally been poor and a significant drain on customer satisfaction. Social A 2012 University of Southern California study found that unprotected adolescent sexual activity was more common amongst owners of smartphones.
  23. 23. 23 A study conducted by the Rensselaer Polytechnic Institute's (RPI) Lighting Research Center (LRC) concluded that smartphones, or any backlit devices, can seriously affect sleep cycles. Some persons might become psychologically attached to cellphones resulting in anxiety when separated from the devices. Legal A "patent war" between Samsung and Apple started when the latter claimed that the original Galaxy S Android phone copied the interface—and possibly the hardware—of Apple's iOS for the iPhone 3GS. Medical With the rise in number of mobile medical apps in the market place, government regulatory agencies raised concerns on the safety of the use of such applications. These concerns were transformed into regulation initiatives worldwide with the aim of safeguarding users from untrusted medical advice. Security Smartphone malware is easily distributed through an insecure app store. Often malware is hidden in pirated versions of legitimate apps, which are then distributed through third-party app stores. Malware risk also comes from what's known as an "update attack", where a legitimate application is later changed to include a malware component, which users then install when they are notified that the app has been updated. One out of three robberies in 2012 in the United States involved the theft of a mobile phone. An online petition has urged smartphone makers to install kill switches in their devices.
  24. 24. 24 In 2014, Apple's "Find my iPhone" and Google's "Android Device Manager" can disable phones that have been lost/stolen. With BlackBerry Protect in OS version 10.3.2, devices can be rendered unrecoverable to even BlackBerry's own Operating System recovery tools if incorrectly authenticated or dissociated from their account. Sleep Using smartphones late at night can disturb sleep, due to the brightly lit screen affecting melatonin levels and sleep cycles. RESEARCH METHODOLOGY It well Know fact that the most important step in marketing research process is to define the problem. Choose for investigation because a problem well define is a half solved. That was the reason that at most care was taken while defining various parameters of the problem. After giving through brain storming session, objective were selected and set on the base of this objective. A questionnaire was design major emphasis of which was gathering new ideas as to determine and find out the problem. DATA SOURCE Research includes gathering both primary and secondary data. Primary data is the first hand data which are selected a fresh and thus happen to be original in the character. Primary data was crucial to know various customer and past customer view about the smartphone and calculate the market share of this brand. RESEARCH APROACH The research approach was used survey method which is a widely used method for data collection and best suited for which descriptive type of research survey include research instrument like questionnaire which is structured. Target population is well identified and various method like personal interview and are employed. SAMPLING UNIT
  25. 25. 25 It gives the target population that will be sampled. The research was carried in Invertis University Bareilly. There were 70 respondents. DATA COMPLETION AND ANALYSIS After the data has been collected, it was tabulated and finding of the project were presented followed by analysis and interpretation to reach certain conclusion. OBJECTIVE OF STUDY OBJECTIVE To study consumer motivation for buying a smart phone. To analyze the consumer preference for brands of smart phone. To determine whether there is a significant difference between preferences for features of smart phones on the basis of gender. To identify the most effective medium for advertisement of smart phone
  26. 26. 26 DATA ANALYSIS AND INTERPRETATION Q1. Do you own a Smartphone? YES 62 NO 8
  27. 27. 27 YES 89% NO 11% SMARTPHONE INTERPREATION: It is clearly seen most people have smartphone . Q2. If yes which brand of Smartphone you are currently using? SONY 8 SAMSUNG 23 MICROSOFT 5 APPLE 3 MICROMAX 7 OTHER 16 SONY 13% SAMSUNG 37% MICROSOFT 8% APPLE 5% MICROMAX 11% OTHER 26% CURRENTLYUSING
  28. 28. 28 INTERPREATION: It is clearly seen that most people currently using Samsung and other brand smartphone. Q3. Based on your own experience, how you would rate your satisfaction with the brand of Smartphone. Satisfied 38 Dissatisfied 4 Very satisfied 15 Fair 5
  29. 29. 29 Satisfied 61% Dissatisfied 7% Verysatisfied 24% Fair 8% SATISFIED INTERPREATION: It is clearly seen that most people satisfied brand smartphone. Q4. Would you buy the same brand when buying a new phone in the future? YES 17 NO 23 MAY BE 22
  30. 30. 30 YES 27% NO 37% MAY BE 36% BUYING NEW PHONE IN FUTURE INTERPREATION: It is clearly seen that most of 27% people buying new phone in future same brand and 36% people may be 37% people no buying new phone in future same brand. If No, Which brand would you prefer SONY 6 SAMSUNG 3 MICROSOFT 4 APPLE 6 MICROMAX 0 OTHER 4
  31. 31. 31 SONY 26% SAMSUNG 13% MICROSOFT 18% APPLE 26% MICROMAX 0% OTHER 17% SMARTPHONEPREFER INTREPRETATION: It is clearly seen that most of people prefer apple, Sony. Q5.In the following question select the degree of influence of the following factors on your Purchase of Smartphone. 5. Strongly non- influential Non – influential Natural influential Influential Strong influential
  32. 32. 32 1 Family and friends suggestion 11 9 20 11 19 2 Financing /price 5 20 12 16 17 3 The well known brands name of the products 4 6 12 22 25 4 The quality of the products 4 2 7 22 34 5 Your satisfaction for a previous product brands 8 10 9 21 23 6 Technical aspect of the product 1 5 13 24 27 7 Festival season/promotion 9 12 10 18 22 8 Advertisement 8 20 16 9 17 9 After sales services 4 12 16 18 20 1 0 Features. 1 3 8 15 44
  33. 33. 33 0 5 10 15 20 25 30 35 40 45 50 Familyand friends suggestion Financing/price Thewellknown brandsname ofthe products Thequality ofthe products Yoursatisfaction for apreviousproduct brands Technicalaspectof theproduct Festival season/promotion Advertisement Aftersalesservices Features. 1 2 3 4 5 6 7 8 9 10 ChartTitle Stronglynon-influential Non –influential Natural influential Influential Stronginfluential INTERPREATION: Q6. How much are you willing to pay for a Smartphone of your
  34. 34. 34 choice? Below 5,000 0 5,000-10,000 16 10,000-15,000 24 15,000-25,000 18 25,000 and above 11 Below 5,000 0% 5,000-10,000 23% 10,000-15,000 35% 15,000-25,000 26% 25,000 and above 16% PAY FOR SMARTPHONE INTREPREATION: It is clearly seen that most of people pay for smartphone Rs.10,000-15,000
  35. 35. 35 Q7. You prefer a Smartphone manufactured by:- Multinational companies 36 Indian companies 18 not a factor 14 Multinational companies 53%Indian companies 26% not a factor 21% SMARTPHONEMANUFACTURED INTREPREATION: It is clearly seen that most of people prefer smartphone manufactured multinational companies.
  36. 36. 36 Q8. Further, where do you like to purchase Smartphone? Authorized retail 31 Multiband showroom 17 Online/E-commerce 17 Other 4 Authorized retail 45% Multibrand showroom 24% Online/E- commerce 25% Other 6% PURCHASE SMARTPHONE INTREPREATION: It is clearly seen that most of people purchase smartphone on authorized retail.
  37. 37. 37 CONCLUSION Most preferred brand in smart phone market is Apple followed by Samsung and HTC. The main reason for smart phone purchase is its features. Internet retailers / review / technology websites is an important source of information to consumer. Mostly consumer wants to opt for different smart phone brands instead of looking for same brand. So consumer is not brand loyal in case of smartphone. The most effective medium of advertisement of smart phone is internet websites. There is no difference between preferences for features of smart phones on the basis of gender. There is no association between gender and brand loyalty for Smartphone. LIMITATION OF RESERCH STUDY 1. The sample size which is used is not big so there is a chance that the result which is come is not reliable. 2. The respondents show there interest while they are filling a questionnaire.
  38. 38. 38 RECOMMENDATION: 1. Smart phone companies should focus more on advertisements on internet websites. 2. .As consumer wants more and more features so smart phone manufacturers should increase the number of features. 3. As the consumer prefers word of mouth or consulting someone tech savvy, so smart phone brands must maintain their good will and increase service.
  40. 40. 40 Questionnaire Q1. Do you own a Smartphone? YES ( ) NO ( ) Q2. If yes which brand of Smartphone you are currently using? SONY ( ) SAMSUNG ( ) Microsoft ( ) APPLE ( ) Micromax ( ), OTHER …………. If no, specify. …………………………………………………………………………………………………… ……………………… ……………………………………………………………………………………………… …………………………… Q3. Based on your own experience, how you would rate your satisfaction with the brand of Smartphone.
  41. 41. 41 Satisfied ( ) Dissatisfied ( ) very satisfied ( ) Fair ( ) Q4. Would you buy the same brand when buying a new phone in the future? Yes ( ) No ( ) May be ( ) If No, Which brand would you prefer SONY ( ), SAMSUNG ( ), Microsoft ( ), APPLE ( ) MICROMAX ( ), OTHER …………. Q5.In the following question select the degree of influence of the following factors on your Purchase of Smartphone. Strongly non- influential Non – influential Natural influential Influentia l Strong influential 1 Family and friends suggestion 2 Financing /price 3 The well known brands name of the products 4 The quality of the products 5 Your satisfaction for a previous product brands 6 Technical aspect of the product 7 Festival season/promotion 8 Advertisement 9 After sales services 10 Features. If any other, please specify below:- …………………………………………………………………………………………………… ………………………………………………………… …………………………………………………………………………………………………… …………………………………………………………
  42. 42. 42 Q6. How much are you willing to pay for a Smartphone of your choice? Below 5000( ) 5000-10,000( ) 10000-15000 ( ) 15000-25000( ) 25,000 and above ( ) Q7. You prefer a Smartphone manufactured by:- Multinational companies ( ) Indian companies ( ) Not a factor ( ) Q8. Further, where do you like to purchase Smartphone? Authorized retail ( ) Multibrand Showroom ( ) Online/E-commerce ( ) other ( ) Q9. Do you have any suggestion? …………………………………………………………………………………………………… …………………………………………………………………………………………………… …………………………………………………………………………………………………… ………………….. …………………………………………………………………………………………………… ……………………………………………………………
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