Ankit

APROJECT REPORT

ON

““CONSUMERCONSUMER BUYINGBUYING BEHAVIORBEHAVIOR TOWARDSTOWARDS MOBILEMOBILE PHONEPHONE ININ S SATNAATNA C CITYITY””

SUBMITTED TO

AWADHESH PRATAP SINGH UNIVERSITY, REWA (M.P.)

FOR THE AWARD OFBACHELOR OF BUSINESS ADMINISTRATION

BBA (SEMESTER-VI)BY

ANKIT VISHWAKARMAUNDER GUIDANCE OF

PROF. Sankalp shukla

VINDHYA INSTITUTE OF MANAGEMENT & SCIENCE,SATNA (M.P.)

2013- 2016

VINDHYA INSTITUTE OF MANAGEMENT & SCIENCE

SATNA (M.P.)

GUIDE’S CERTIFICATE This is to certify that ANKIT VISHWAKARMA has satisfactorily

completed the Project work on “consumer buying behavior towards mobile phone in satna city ” under my guidance for the partial fulfillment of BBA (Semester-VI) submitted to Awadhesh Pratap Singh University, Rewa during the academic year 2015-2016.

To best of my knowledge and belief the matter presented by her is original work and not copied from any source. Also this report has not been submitted earlier for the award of any Degree of Awadhesh Pratap Singh University, Rewa.

Place: Satna PROF. SANKALP SHUKLADate: / 05 / 2016 (Project Guide)

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SATNA (M.P.)

DECLARATION

I undersigned, hereby declare that this Project Report entitled “consumer buying behavior towards mobile phone in satna city” prescribed by AWADHESH PRATAP SINGH UNIVERSITY, REWA during the academic year 2015-2016 under the guidance of PROF. SANKALP SHUKLA is my original work.

The matter presented in this report has not been copied from any source. I understand that any such copying is liable to be punishable in any way the university authorities deem to be fit. Also this report has not been submitted earlier for the award of any Degree or Diploma of Awadhesh Pratap Singh University, Rewa or any other University.

This work humbly submitted to Awadhesh Pratap Singh University for the partial fulfillment of Bachelor of Business Administration (Sem-VI).

PLACE: SATNA Ankit vishwakarma

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DATE: / 05 / 2016 (1305701006)


SATNA (M.P.)

ACKNOWLEDGEMENT Whenever we are standing on most difficult step of the dream of

our life, we often remind about The Great God for His blessings & kind help and he always helps us in tracking off the problems by some means in our lifetime. I feel great pleasure to present this project entitled “consumer buying behavior towards mobile phone in satna city”.

I am grateful to those people who help me a lot in preparation of this project report. It is their support and blessings, which has brought me to write this project report. I have a deep sense of gratitude in my heart for them.

I am very thankful to my project guide Prof. Sankalp Shukla for his whole-hearted support and affectionate encouragement without which my successful project would not have been possible.

Finally, I am very grateful to Mighty God and inspiring parents whose loving & caring support contributed a major share in completion of my task.

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Ankit vishwakarma

TABLE OF CONTENTS S.N.

Contents Page No.

1 Introduction of Project 5-7

2 The internet age of cell phones 8

3 Evolution of mobile phones 9

4 Objective of the study 10

5 Research Methodology 11

6 Literature review 12-13

7 Factors influencing consumer buying behaviour towards mobile phone

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8 Analysis report 15-31

9 Findings 32

10 Limitation 33

11 Suggestion 34

12 Conclusion 35

13 Questionnaire 36

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CHAPTER-ICHAPTER-IINTRODUCTION OF PROJECTINTRODUCTION OF PROJECT

Consumer buying behavior is the sum of consumer’s attitude, preferences, intention, and decisions regarding the consumer’s behavior in the market place when

purchasing product and service.

consumer behavior may be defined as the behavior that a consumer displays when he is on the lookout for his purchase, using and evaluating products and services, which would satisfy his

needs. It is a study of human behavior, which influences the purchase decision of the consumer.

According to Engel, Blackwell, and Mansard,‘Consumer behaviour is the actions and decision processes of people who purchase goods and services for personal consumption’.

According to Louden and Bitta,‘Consumer behaviour is the decision process and physical activity, which individuals engage in when evaluating, acquiring, using or disposing of goods and services’.

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Introduction of mobile phone

The Mobile phone industry in India has become very popular today. Its growth is so

stupendous that it has surpassed most of the other industries. The reason for its rapid growth is

that man spends most of his time in interacting with others. Cell phones have come handy to men

as a means to communicate with others. Because of this, mobile penetration in the market has

overshadowed all other means of communication. The technological revolution in the cellular

industry has ushered in a booming market for cell phones and cellular service. Many people have

become the customers of some mobile company or the other and obviously customers of cellular

service providers of their choice. The use of cell phones has brought about a magical change in

the life style of most of the people in the country. In many parts of the world, there is a kind of

rapidity in the adoption of mobile phones. In the present days, cell phones are almost as common

as wristwatches.

Mobile phone has become an integral part of human daily and personal

communication across the globe

Mobile phone was developed in 1979. In India it was introduced in 1994. But

it became familiar only in the beginning of year 2000

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It is a very fast point to point communication. It helps one to send and receive

information anytime and anywhere

Mobile phone plays a predominant role in the modern life because mobile

phones are used by people at all levels

With 4G mobile data networks quickly becoming reliable and affordable, we

see a big shift in the way users consume information on their handhelds

Mobile phone is a milestone that indicates success, not only financially but

also culturally in term of the integration within society

Mobile phone usages have resulted in greater electronic interactions

between friends and family at the expense of face to face interaction which

has dramatically reduced

Consequently, it could be proposed that mobile phones are changing

individual cultural norms and values

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The Internet Age of Cell Phones

Since the 2G network there has been the launch of 3G (third generation) and 4G

networks. The 3G digital network has really enabled users to begin accessing information on

the internet.

With these advances in technology the actual handsets have changed dramatically too.

No longer the large and heavy devices, the digital cell device has become small, light and

slim. Easy to hold in one hand and fit into the pockets of even the tightest fitting jeans.

The 2000s saw the biggest development in the ability to access high speed data resources.

Mobile devices are now so advanced that we carry our entire social and digital lives around

with us in our pockets. Our personal information is stored on our cell phones as well as being

able to work and play on them.

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Evolution of mobile phones

1973:- First hand held mobile developed1984:- Nokia talkman1992:- Motorola International 32001994:- IBM Simon Personal Communicator1996:- Motorola Startac1998:- Nokia 51102002:- Sanyo SCP – 53002007:- Iphone2008:- First android based mobile phone2010:- First windows phone launched

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Objective of the study

To know the consumer buying behavior towards mobile phone in satna city.

To know the satisfaction level of the consumer.

To study the factor important while purchasing the mobile phone.

To know which features in a particular brand are preferred by the mobile phone users

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DATA COLLECTIONThe study was conducted by the means of personal interview with respondents and the

information given by them were directly recorded on questionnaire.

For the purpose of analyzing the data it is necessary to collect the vital information.

There are two types of data, this are-

Primary Data

Secondary data

COLLECTION TECHNIQUE

Primary Data Questionnaire method

Secondary Data Books

Journal

Website

SAMPLE SIZE:The substantial portions of the target customer that are sampled to achieve reliable

result are 100.

SAMPLE TECHNIQUE Percentage analysis

Tabulation

Graphical

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Average mean

Literature Review The current literature on consumer purchasing decisions of mobile

phones has mainly concentrated on identifying the factors, which affect

the willingness of consumers to Engage in mobile purchase. In the domain of

consumer behavior research, there are general models of buying behavior

that depict the process which consumers use in making a purchase decision.

These models are very important to marketers as they have the ability to

explain and predict consumers‘ purchase behavior. The classic consumer

purchasing decision-making theory can be characterized as a range extending

from routine problem-solving behaviors, through to limited problem

solving behaviors and then towards extensive problem-solving

behaviors. The traditional framework for analysis of the buyer decision process is a

five-step model. Given the model, the consumer progresses firstly from a

state of felt deprivation (problem recognition), to the search for

information on problem solutions. The information gathered provides the basis

for the evaluation of alternatives. Finally, post-purchase behavior is critical in

the marketing perspective, as it eventually affects consumers‘ perception of

satisfaction/dissatisfaction with the product/service. This classic five-stage

model comprises the essence of consumer behavior under most contexts.

Satna is a developing city and has witnessed fast economic growth and developments in mobile telecommunication penetration in recent years. Due to these reason. there is a dynamic increase in the number of mobile phone device users. This attracted large number of international firms to enter into mobile industry and offer various brands of mobile phones However, the choice of consumer is diverse due to various factors associated with consumer behavior. In this context, it is important to study

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the various factors which shape the consumers mind during the purchase of mobile phone devices. I surveyed The people to identify their preference of their current mobile phone. The results of their survey indicated that the physical appearance, size and menu organization of the mobile phones are the most determinant factors affecting the choice of mobile phones. I attempted to investigate consumer purchasing motives in cellular phone markets. The results indicated that while price and properties were the most influential factors affecting the purchase of a new mobile phone, price, audibility and friends’ operator were regarded as the most important in the choice of the mobile phone operator. As well, i analyzed the factors affecting consumers’ choice of mobile phone selection in Pakistan. The results indicated that consumer’s value new technology features as the most important variable amongst all and it also acts as a motivational force that influences them to go for a new handset purchase decision.

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Factor influencing consumer buying behavior towards mobile phone There are many social and interpersonal factors that affect customers to decide purchase mobile phone. Consumer behavior is affected by a lot of Variables, ranging from personal motivations, needs, attitudes and values, personality Characteristics, socio-economic and cultural background, age, sex, professional status to Social Influences of various kinds exerted by family, friends, colleagues and society as a whole. Survey showed that usability in the most important determinant of mobile choice; other attributes particularly features, aesthetics and cost are other factors that have implication on the choice of mobile phone brand. In other study conducted by me, price, quality and style functions as the most influential factors affecting the choice of mobile phones. Moreover, I selected four important factors i.e. price, size/shape, new technology features and brand name and analyzed their impact on consumers’ buying behavior. The competition in terms of product similarity and increased number of competing brands inthe market have led the marketers to consider and study the factors that are determine consumers’ brand choice decision makings and their behaviors .There are number of factors that affect the way the consumer choose a particular brand than other brands. Various factors influence the consumers when they are making a choice among alternate brands. These factors consist of price, quality, features, family and friends’ recommendations, brand image, innovative features, promotion effectiveness, celebrity endorsement, user friendliness, stylish appearance and post-purchase services. The price is a dominant and the most important factor affecting the decision making and purchase process of any products. Price of the phone has been identified as a critical factor in the choice of the mobile phone model, especially among younger people price can be a key factor of attraction. Price of the mobile phone has been identified as a key factor in the choice of mobile phones, especially among the young consumers. Based on previous research studies and literatures reviewed the following conceptual framework and research hypothesis were developed for this research project. Accordingly, six independent variable (i.e. price, social factors, durability, brand name, product features and after sales services) thought to influence the dependent variable (i.e. decision to by) are identified.

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ANALYSIS REPORT

How long did you purchase your mobile phone?

Less than three months

ago

3-6 months ago

7-12 months ago

Within past 2 years

More than two years

ago2 18 15 14 1

Analysis:- According to this survey 36% people who purchased mobile before some days,

30% people purchased mobile between 3-6 months, 28% people purchased between 7-12 months,

4% people within past 2 years and there are only 2% people who purchased mobile before 2

years.

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Interpretation:- According to this survey there are a lot of consumer who purchased new

mobile phone before less than three months, 58 % people are using their mobile with fully

satisfaction and only 6% people are using their mobile before 2 years or more than years ago.

Which brand of mobile phone you prefer?

Samsung Micromax Intex Iphone Sony others

9 19 6 5 4 8

Analysis:- According to my survey 37% people prefer micromax brand, and 17% people

prefer Samsung brand, 16% people prefer intex , 10% people prefer iphone, 8% people prefer

others.

Interpretation:- According to my survey in Satna city there are many people prefer

micromax and Samsung is on the second rank, and 16% people are using others brand like

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Uureka, lava, Lenovo, xiaomi etc . so according to my survey in the satna city there are a lot of

people are using micromax brand.

For what reason you choose the mobile brand?

Convenience Handset

Cost Control Discount Value added services

21 20 10 1

Analysis:- According to the survey 41% people chose A option which was convenience

handset, 40% people chose cost control, 17% people chose discount and 2% people chose value

added services.

Interpretation:- According to this survey people mostly chose their handset because they

can use that handset easily and approx same no. of people chose their handset for cost control and

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17% people chose this handset for discount and only 2% people preferred this phone for value

added services.

Which advertising media is source of information for you?

Television Print Media Digital Others

17 3 8 22

Analysis:- According to my survey 44% people choose others option for gather information

to purchase mobile, 34% people choose television option, 16% people digital and only 6% people

choose print media.

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Interpretation:- People mostly gather information for purchase their mobile via internet

family, friends, self and television. And some people get information by print media.

Why did you prefer this mobile phone?

1. Battery backup

Very favourable Favourable Neither favourable nor unfavourable

Unfavourable Least unfavourable

16 13 12 5 3

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Analysis:- According to my survey 33% people very favourable. 17% people favourable,

24% people Neither favourable nor unfavourable, 10% people unfavourable and 4% people least

favourable.

Interpretation:- battery backup is very important in now a days for respondents.

2. Camera quality



14 14 14 3 1



favourable.

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Interpretation:- Camera quality is very important in now a days for respondents.

3. Design



13 12 18 4 1

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favourable.

Interpretation:- Design is very important in now a days for respondents.

4. RAM



3 9 20 11 2

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Analysis:- According to my survey 7% people very favourable. 20% people favourable, 44%

people Neither favourable nor unfavourable, 24% people unfavourable and 5% people least

favourable.

Interpretation:- RAM is very important in now a days for respondents.

5. Display quality

Very favourable Favourable Neither

favourable nor unfavourable


12 12 15 3 4

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favourable.

Interpretation:- display quality is also very important in now a days for respondents.

6. InternetVery favourable Favourable Neither



14 5 18 4 5

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39% people Neither favourable nor unfavourable, 9% people unfavourable and 11% people

least favourable.

Interpretation:- internet is very important in now a days for respondents. Actually they

purchase mobile only for operate internet.

7. OthersVery favourable Favourable Neither



15 7 11 9 6

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23% people Neither favourable nor unfavourable, 19% people unfavourable and 12% people

least favourable.

Interpretation:- Consumers wants more ROM, best operating system, good processor etc.

to the mobile phone.

Are you satisfied with your mobile phone?

Satisfied Dissatisfied

28 22

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Analysis : According to my survey 56% people are satisfied and 44% people are dissatisfied of

the respondents.

Interpretation : Approximately half of the respondents are satisfied and the other half are

unsatisfied. So we cannot conclude about the post purchase behavior.

Factors affecting consumer buying behavior towards

mobile phone1. Price

Very important Important Neither important nor unimportant

Unimportant Highly Unimportant

19 14 10 2 3

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Interpretation:- According to survey this factor is very important for 19 people, for 14 people important, for 10 people neither important nor unimportant, for 02 people unimportant and only for 3 people highly unimportant. According to all score, it can be interpreted that price is a very important factor while purchasing mobile phone which affect the consumer.

2. Service Center



25 8 7 7 1

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Interpretation:- According to survey this factor is very important for 25 people, for 08 people important, for 07 people neither important nor unimportant, 07 people dissatisfied and 00 people highly dissatisfied. According to this score, it can be interpreted that service center an important factor while preferring mobile.

3. Quality



27 7 10 3 00

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Interpretation:- According to survey 27 people satisfied, 16 people very satisfied, 09 people neither satisfied nor dissatisfied, 06 people dissatisfied and 02 people highly dissatisfied. According to this score, it can be interpreted that convenience in online shopping is an important factor.

4. Brand name



12 11 18 2 3

30

Interpretation:- According to survey 48 people satisfied, 18 people very satisfied, 16 people neither satisfied nor dissatisfied, 10 people dissatisfied and 00 people highly dissatisfied. According to this score, it can be interpreted that security in online shopping is an important factor.

5. Features



28 9 5 2 2

31

Interpretation:- According to survey 66 people satisfied, 10 people very satisfied, 14 people neither satisfied nor dissatisfied, 02 people dissatisfied and 00 people highly dissatisfied. According to this score, it can be interpreted that attractive offers are important factor it influence the consumer buying behavior.

FINDINGS

Micromax is the most popular and widely used brand by the mobile users.

Brands like samsung and others like lava, xiaomi are also gaining ground with regard to popularity but not like micromax.

It is clear from the above that users give due importance to factors like features, appearance and brand of mobile phones while making purchase decision.

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Feature is the important factors which are mostly affect to consumers while purchase phone.

The main problem faced otherwise is related to the battery life of a mobile handset.

LIMITATION

There are following limitations while conducting the study.

This study was carried out only among the consumers in Satna city.

The sample size was restricted to 50 due to time constraints.

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The sample was taken on the basis of convenience; therefore the shortcomings of the convenience sampling may also be present in this study.

SUGGESTIONS

Mobile industry have to concentrate more on youth segment by giving more advanced features like auto update of software ,camera quality, battery backup.

As the Smartphone gets smarter and consumer expectations rise, mobile technology is required to continuously offer innovative and cutting –edge service.

The mobile company should focus on their product and price.

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I suggest the micromax mobile company that it should be improve the hanging problem and sound quality on their products.

.

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. Consumers mostly preferred Micromax mobile phones.

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Handset buying is a high involvement product wherein the consumer wants to know from different sources about brands, though Micromax is the first name that comes to their minds

Word of mouth plays an important role in such products and therefore it is important for the product to be of important quality

Companies should therefore concentrate more on developing the first P and make it available at reasonable and reachable prices.So, the product itself becomes the promotion for the brand

People like to buy expensive Smart phones because they are durable, reliable, have better hardware & have updated version of OS (operating system).

People use their Smart phones for many purposes like; internet browsing, taking pictures, emails etc.

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