Case Study
A smartphone is a mobile phone that has an advanced mobile operating system designed to
provide the user many features of a handheld computer and advanced connectivity options.
Although smartphones have been introduced for a while in various avatars, given their high cost,
they were initially used primarily for business communications. Things changed when Apple
launched the iPhone in 2007. With revolutionary features, such as complete touch screen
operations, Apps available through its own App Store, it completely changed the business of
smartphones by turning it into a consumer electronics device that anyone could use. Given the
phenomenal success of Apple with its iPhone, competition could not ignore the opportunity for
long as they too wanted a share of the pie. Slowly, all large players and small players came up
with their versions of smartphones largely trying to emulate Apple’s success. Even small
regional players, such as Micromax, who could not afford to develop their own smartphones,
started marketing rebranded Chinese generic smartphones. The global smartphone market is
estimated to be worth US$150.3 billion by 2014.
With smartphones becoming more affordable, they are slowly becoming another ubiquitous
consumer electronics product. The quality and features of the smartphones are converging
rapidly leading to a loss of differentiation. Given this rapid fragmentation of the market it is
important for the manufacturers to understand the consumer preferences related to their product
attributes. Using proven Statistical Analysis Tools, the manufacturers can confidently predict the
several facets of consumer behavior — brand loyalty, feature awareness and how such behaviour
is determined by the consumer’s demographic characteristics and experience with the current
product.
Once the manufacturers are able to predict consumer behaviour related to their products, they
can make appropriate decisions for the launch and promotion of the products. The first task in
this endeavour was to determine the attributes considered significantly important by the market
and then to determine the satisfaction levels on these attributes for the three major brands
available in the market, Brand 1, Brand 2, Brand 3.
With this objective, a survey was conducted among randomly selected Smartphone users to
capture the following details: Demographic details, the attributes that consumers consider
important in smartphones and the satisfaction levels with the above attributes
The number of survey responses (sample size) received was 126. Using these responses, it was
proposed to implement different tools to analyze the responses from Smartphone owners. One
such tool was the Gap Analysis.
The survey captured the various attributes that a consumer values in a smartphone. Out of all
different attributes identified a subset of attributes were finally considered:
(a) Battery performance (c) Speed
(b) Operating system (d) Ease of navigation
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(e) Memory (j) Ergonomics
(f) Screen size (k) Aesthetics
(g) Weight (l) Availability of apps
(h) Sound quality (m) Camera quality
(i) Robustness (n) After sales support
Each of these attributes were measured on a 5-point Likert Scale. From the data, thus obtained,
next the significance of the attribute importance ratings are obtained. This forms an important
part of consumer analysis because the company needs to know which attributes are considered
significantly important and which are not. To assess significance, the same simple test of
hypothesis, as described above,was carried out. The sample means were computed for the
importance levels as well as for satisfaction levels. Their associated t-values were also
determined. The attributes having the t-values for the importance ratings as > 1.645 were
considered significantly important. Similarly, for Brand 1, Brand 2 and Brand 3, the mean
satisfaction levels were computed and their t-values were determined. Whenever a t-value was >
1.645 (95% level of confidence) the associated attribute was considered as significantly
satisfactory.
The mean ratings on importance and the associated t-values for the above attributes were:
Table 1: Checking the significance of different attributes
Mean t-Value
Battery 2.78 –1.81
Operating 3.25 2.16
Speed 3.16 1.19
Navigtn 3.17 1.37
Memory 2.65 –2.98
Screen 2.82 –1.57
Weight 2.37 –2.79
Sound 2.85 –1.22
Robustness 3 0
Ergo 2.94 –0.48
Aesthetics 3.53 4.96
Apps 3.44 3.84
Camera 3.73 7.81
Aftersales 3.02 0.18
The radar chart shown in Figure demonstrates the performance the three brands.
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Figure: Competitor analysis for different brands.
Q.1. As per the above analysis, which attributes were found to be significantly important?
Q.2. Which brand is performing better and on which attributes?
Q.3. As a marketing analyst, what suggestion would you give to brand 1?
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