Research Project on

STUDY OF CONSUMER BUYING BEHAVIOUR TOWARDS SMART

PHONE
EXECUTIVE SUMMARY
 This project has been a great learning experience for me. At the same time it gave me
enough scope to implement my analytical ability.
 The first part of the project gives the overview of smart phone brands.
 Here we talk about the various types of factors affecting smart phones purchase and
also give an overview of consumer buying behaviour. All the topics have been
covered in a very systematic way. The language has been kept simple so that even a
layman could understand.
  
 The Second part consists of research and their analysis, collected through a survey
done on 75 people. The study was carried out in Kota in at various outlets and major
markets of the city. The data collected have been well organized and presented. Hope
the research findings and conclusions will be of use.
 The Third part consists of conclusion and recommendation which is actually drawn
apart from the result of survey done on 75 peoples. The basic thing that i analyzed
from data collected is that there is great variation in the perception of consumers
towards smart phones.
INTRODUCTION
 APPLE :-
Strong competitor in the prosumer customer segment – 15% of current smart phone market
share
▪ Advantages: Brand awareness and variety of application downloads
▪ Disadvantages: Price point and limited to AT&T GSM network .
 XIAOMI :-
 Xiaomi Corporation registered in Asia as Xiaomi Inc., is a Chinese multinational
 electronics company founded in April 2010 and headquartered in Beijing. Xiaomi makes
and invests in smartphones, mobile apps, laptops, home appliances, bags, shoes, consumer
electronics, and many other products. Xiaomi is also the fourth company globally after Apple
, Samsung and Huawei to have self-developed mobile system-on-chip (SoC) capabilities.
 Xiaomi released its first smartphone in August 2011 and rapidly gained market share in
China to become the country's largest smartphone company in 2014.  At the start of second
quarter of 2018, Xiaomi was the world's fourth-largest smartphone manufacturer, leading in
both the largest market, China, and the second-largest market, India. Xiaomi later developed
a wider range of consumer electronics, including a smart home (IoT) product ecosystem,
which has connected more than 100 million smart devices and appliances. Monthly active
users (MAUs) of MIUI increased to 291.6 million in September 2019.
INTRODUCTION
 HUAWEI :-
 Huawei Technologies Co., Ltd  is a Chinese multinational technology
company headquartered in Shenzhen, Guangdong. It designs, develops, and
sells telecommunications equipment and consumer electronics.
 The company was founded in 1987 by Ren Zhengfei, a former Deputy Regimental
Chief in the People's Liberation Army. Initially focused on manufacturing phone
switches, Huawei has expanded its business to include building telecommunications
networks, providing operational and consulting services and equipment to
enterprises inside and outside of China, and manufacturing communications devices
for the consumer market. Huawei has over 194,000 employees as of December 2019.
 Huawei has deployed its products and services in more than 170 countries and areas.
 In July 2020, Huawei surpassed Samsung and Apple to become the top smartphone
brand (in number of phones shipped) in the world for the first [Link] was
primarily due to a drop in Samsung's global sales in the second quarter of 2020,
owing to the impact of the COVID-19 pandemic.
INTRODUCTION
 SAMSUNG :-
 From its inception as a small export business in Taegu, Korea, Samsung has grown to become one
of the world's leading electronics companies, specializing in digital appliances and media,
semiconductors, memory, and system integration. Today Samsung's innovative and top quality
products and processes are world recognized. This timeline captures the major milestones in
Samsung's history, showing how the company expanded its product lines and reach, grew its
revenue and market share, and has followed its mission of making life better for consumers around
the world.
 The digital age has brought revolutionary change – and opportunity – to global business, and
Samsung has responded with advanced techno-logies, competitive products, and constant
innovation.
 At Samsung, we see every challenge as an opportunity and believe we are perfectly positioned as
one of the world's recognized leaders in the digital technology industry.
Our commitment to being the world's best has won us the No.1 global market share for 13 of our
products, including semiconductors, TFT-LCDs, monitors and CDMA mobile phones. Looking
forward, we're making historic advances in research and development of our overall semiconductor
line, including flash memory and non-memory, custom semiconductors, DRAM and SRAM, as
well as producing best-in-class LCDs, mobile phones, digital appliances, and more.
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.

 HYPOTHESIS:-
 Hypothesis-1:
 Ho: There is no difference between preferences for features of smart phones on the basis of gender.
 H1: There is a difference between preferences for features of smart phones on the basis of gender.
 Hypothesis-2:
 Ho: There is no association between gender and consumer method of buying a
 Smart phone.
 H1: There is association between gender and consumer method of buying a
 Smart phone.
 Hypothesis 3:
 Ho: There is no association between consumer method of buying and future purchase options for buying smart phone.
 H1: There is an association between consumer method of buying and future purchase options for buying smart phone.
RESEARCH METHODOLOGY
 RESEARCH DESIGN :-
 It is the plan, structure of investigation conceived so as to obtain answer to research question. It is the
specification of methods and procedures for acquiring the information needed.
o It is concerned with:
 Overall operational pattern
 Framework of the project
 Stipulates what information is needed
o The first step that undertakes in the report was the selection of research. The research design, which was
adopted for the study was descriptive in nature.
o The two types of research are as follows:
 Exploratory research: It is to generate new ideas.
 Descriptive research: They are well structured. It can be complex, a high degree of scientific skill on the part
of the demanding a high degree of scientific skill on the part of the researcher. It can be taken in certain
circumstances. When the researcher is interested in knowing the characteristics of certain groups such as,
gender, profession, a descriptive study may be necessary. 
 In this I did descriptive research also because I want to know the consumer buying behaviour and preferences
towards smart phone.
RESEARCH METHODOLOGY
 Primary Data
 The descriptive nature of research necessitated collection of primary data from smart phone users through
survey. Personal Interview method will be used and interview would be conducted through structure
questionnaire.
 Secondary Data
 RIM Marketing Presentation.
 websites
 
 RESEARCH INSTRUMENTS
 I prepared a structured questionnaire to collect the data and it consisted of Multiple-choice questions, direct
questions and open-ended question.
 
 SURVEY LIMITATIONS
 ▪ Time Constraint - Sampling was not a perfect representation, could have been larger.
 ▪ Survey Length - Questions, would’ve liked more to capture more
 critical data but there were concerns about the impact on participation.
Research Instruments
 I prepared a structured questionnaire to collect the data and it consisted of
Multiple-choice questions. The main function of the questionnaire was to know
the consumer behavior towards smart phone.
 
 Sample Plan:
 
 A part of a population or a subset from a set of units which is provided by some
process or other.

 Sample Size: The sample size considered was 75 for consumers.

 Method of Sampling: Convenience sampling.

 DATA INTERPRETATION AND
ANALYSIS
 1- Motivation Factor for buying a Smartphone:-
Reason for purchase
FREQUENCY PERCENT VALID CUMU
PRECENT LATIVE
PERCE
NT
Required for work 27 36 36 36
Feature 36 48 48 84
Status symbol 6 8 8 42
Multitasking 6 8 8 100
Total 75 100 100

Interpretation:
48% of consumer said that the reason for purchase of a smart phone is its features followed
by its utility for work (36%).
 2- Most preferred Brand
Cumula
Frequenc Valid tive
y Percent Percent Percent
Valid APPLE 31 41.3 41.3 41.3
XIAOMI 8 10.7 10.7 52.0
HUAWEI 17 22.7 22.7 74.7
Samsun
g 19 25.3 25.3 100.0
Total 75 100.0 100.0

Interpretation:
Apple (41.3%) is the most preferred brand by consumers followed by Samsung (25.3%) and Huawei
(22.7%).
 Features Preferred while purchase of a smart phone
 Touch Screen

Valid Cumulative
Frequency Percent Percent Percent
Valid
Least Preferred 4 5.3 5.3 5.3
Somewhat
Preferred 16 21.3 21.3 26.7
Neutral 12 16.0 16.0 42.7
Preferred 28 37.3 37.3 80.0
Most Preferred 15 20.0 20.0 100.0
Total 75 100.0 100.0

Interpretation:
37.3 % of consumer said that touch screen is preferred as a feature while 21.3% of consumer prefers it
somewhat.
 Information Source
 (a).Where did you look for the information before purchasing a smart phone?

Cumulative
Frequency Percent Valid Percent Percent
Valid In store Promo Display
11 14.7 14.7 14.7

Internet retailer/ review/

technology websites

27 36.0 36.0 50.7

Television/ Newspaper
17 22.7 22.7 73.3

Word of mouth
20 26.7 26.7 100.0

Total
75 100.0 100.0

Interpretation: Mostly consumer collects the information from internet websites (36%) and then they
trust word of mouth (27%).
 Future Purchase and Mode of Purchase
of Smart phone
Cumulative
Frequency Percent Valid Percent Percent
Valid Search options with in a
particular brand

24 32.0 32.0 32.0

Go for different brand

51 68.0 68.0 100.0

Total
75 100.0 100.0

Interpretation: For future purchase 68% of consumers said they will go for different brands and 32% search options
within a particular brand.
 FUTURE PURCHASE

Frequency Percent Valid Percent Cumulative Percent

Valid Apple

29 38.7 38.7 38.7

Xiaomi

10 13.3 13.3 52.0

Huawei

16 21.3 21.3 73.3

Samsung

20 26.7 26.7 100.0

Total

75 100.0 100.0

Apple Xiaomi Huawei Samsung

Interpretation:
For purchase of smart phone in future consumer are more interested in brands like Apple followed by Huawei and
Samsung
 Most Effective Advertising Media

Valid Cumulativ
Frequency Percent Percent e Percent
Valid
Television
16 21.3 21.3 21.3
Newspaper
7 9.3 9.3 30.7
Magazine
7 9.3 9.3 40.0
Internet
Websites 45 60.0 60.0 100.0
Total
75 100.0 100.0

Interpretation:
The most effective medium for advertisement as per consumers view is internet websites (60%) followed by T.V
(21%).
 CONCLUSION
 Most preferred brand in smart phone market is Apple followed by Samsung and Huawei.
 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 smart phone.
 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 Smart phone.
 Questionnaire
 Name-______________________
 Mobile-_____________________

Q1. Demographics:
1. Gender-_______
2. Age-____
3. Educational Level-_________
4. Profession-________________

Q2. What one reason makes you purchase a smart phone?

1).Required for Work
2).Features.
3).Status symbol.
4).Multi Tasking.
 
[Link] brand of smart phone you prefer the most?
1). Apple.
2). Blackberry
3). HTC
4). Samsung
 Questionnaire
Q5. (a).Where did you look for the information before purchasing a smart phone?
1).In Store promo Display.
2).Internet retailers/ reviews / technology websites.
3).Television / Newspaper.
4). Word of mouth
 
(b). Did u take advice from someone else?
1). someone having latest technological update.
2). someone recently bought the same.
3). Someone already used.
 
Q6. Tick the appropriate option:
(a).Which method of buying will you use for future purchase?
1). Search options with in a particular brand.
2).Go for different brand.
 
 Questionnaire
6 (b). If in case you will buy a smart phone in future you will go for which brand?
1). Apple.
2). Blackberry
3). HTC
4).Samsung
5).Cant say now.

Q7). Which type of advertising do you feel is most effective for smart phones?
 
1).Television.
2).Newspaper.
3).Magazine.
4).Internet websites.