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INSTITUTE OF ENGINEERING & MANAGEMENT KOLKATA
4th Semester
Post Graduate Diploma Marketing Dissertation
PROJECT REPORT
On
Consumer Behavior towards Smartphone Industry in Indian Market
SUBMITTED BY: SUROJEET BASAK
Roll No: PGDM/2013/043
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CERTIFICATE
This is to certify that the project report on
Consumer Behavior towards Smartphone Industry in Indian Market
Submitted in the partial fulfillment of the requirement for the award of the degree of
Post Graduate Diploma in Management
To
INSTITUTE OF ENGINEERING & MANAGEMENT, KOLKATA
Is a record of bonafide dissertation carried out by
MR. SUROJEET BASAK
Under my supervision and that no party of this report has been submitted for the award of any other
degree/diploma/fellowship or similar titles or prizes
Faculty Guide: Mr. Shamik Pal
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STUDENT’S DECLARATION
I hereby declare that the project report on
Consumer Behavior towards Smartphone Industry in Indian Market
Under the guidance of
Prof. Shamik Pal
Submitted in the partial fulfillment of the requirement for the award of the degree of
Post Graduate Diploma in Management
To
INSTITUTE OF ENGINEERING & MANAGEMENT, KOLKATA
Is my original work and the same has not been submitted for the award of any other
degree/diploma/fellowship or similar titles or prizes
NAME: SUROJEET BASAK
PLACE: Kolkata
DATE: 18-5-2015
ROLL NO.: PGDM/2013/043
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ACKNOWLEDGEMENT
I am using this opportunity to express my gratitude to everyone who supported me throughout the
course of this project. I am thankful for their aspiring guidance, invaluably constructive criticism and
friendly advice during the project work. I am sincerely grateful to them for sharing their truthful and
illuminating views on a number of issues related to the project.
I express my warm thanks to Prof. Shamik Pal for his support and guidance.
Thank you,
Surojeet Basak
Kolkata
May 2015
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CONTENTS
Abstract………………………………………………………………………………………………………………………………….6
Introduction……………………………………………………………………………………………………………………………7
Objectives………………………………………………………………………………………………………………………………8
Literature Review and Key Concepts……………………………………………………………………………………….9
Research Methodology…………………………………………………………………………………………………………...12
Discussion………………………………………………………………………………………………………………………………..34
Conclusion………………………………………………………………………………………………………………………………..35
References………………………………………………………………………………………………………………………………36
Questionnaire…………………………………………………………………………………………………………………………..37
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ABSTRACT
The second decade of the current century sees a sharp rise in the total number of mobile users in the
country. This increase is the result of a new category of mobile phones namely Smartphones which had
arrived in the market. Today, there are approx. 960.58 million [1] mobile phone users in India (77.58
connections per 100 citizens) [2]. India, the second largest smartphone market globally, is expected to
have a smartphone user base of over 650 million in the next four years, according to a study by
networking solutions giant Cisco [3][4].
The major objective of this research is to identify the key factors which have a dominating effect on the
consumers’ minds while making a purchase of Smartphone.
It was found that data is reliable for factor analysis.
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INTRODUCTION
The term ‘Smartphone’, refers to a multimedia phone handset, which is a multifunctional electronic
device that has features ranging from Camera, Audio-Video Playback, Web browsing to a high-density
screen display along with several other multimedia options. As per Businessdictionary.com, Smartphone
is a mobile phone which includes functions similar to those found on personal computers. Smartphone
provides a one-stop solution for mobile calls, email sending, and Internet access. Smartphone is
compact in size and often only slightly bigger than standard mobile telephones. A Smartphone is actually
a mobile phone, based on an Operating System, which possess all the major functions of a Computer,
like web browsing, emailing, video and voice chatting, audio-video playback, and others. A few years
back, a Smartphone was a PDA (personal digital assistant) having the calling features like a mobile -
phone. But nowadays, the mobile phones possess the functionality of added media players, compact
digital camera, GPS etc. Today, almost all the Smartphone's has a high-density screen resolution
allowing the handset to display almost all the websites in their standard formats as they appear on the
computer screens. Nowadays most of the websites are launching their mobile versions as well, and
several applications which can be run on the Smartphone OS directly. For better connectivity, hi-speed
data is also made available through Wi-Fi, 3G and 4G data connections. In the past 2-4 years, the rapid
development of mobile – applications has caused a birth of the new mobile applications market,
allowing a lot of trade to happen through mobile platform as well, which has been a major reason for
people to adopt the Smartphone.
Smartphone Landscape in 2015 India [5]
India witnessed some real action in the smartphone category in 2014 and is considered as the
fastest growing smartphone market in Asia Pacific. The Q3 (July to September) observed a market
share growth of 27 percent due to affordable pricing and the smartphone
figures touched a number of 23.3 million units. The trend will continue for the next year and it is
expected that the global smartphone sales will further rise by 13-15%.
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OBJECTIVES
This research is basically an exploratory research, where it is aimed to explain the relation between the
four independent factors namely price, brand name, features and social influences on the consumers'
purchase decision towards Smartphone. Primary data were collected with convenient sampling of adult
respondents covering varied socio economic classes and cultural groups. The sample of 29 respondents
from mentioning strata was used. All the questionnaires were scrutinized and those with incomplete or
unlikely responses were deleted. The collected data were analyzed and interpreted using Factor analysis
with the help of Statistical Package for Social Sciences (SPSS) v21. 0.
To analyze the consumer preference for brand of Smartphone.
To investigate the determinants in smartphone purchases
To study consumer motivation for buying a Smartphone.
To find out the level of satisfaction that consumer derives out of their Smartphone.
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LITERATURE REVIEW AND KEY CONCEPTS
Characteristics that Influence Consumer Behavior
Kotler & Amstrong (2004) define the characteristic that influence the consumer behavior, they define
cultural, social, personal and psychological are strongly influencing the consumer behavior.
a. Cultural Factors: In cultural factors divide the cultural itself in to three specific variables, they
assuming that marketers need to understand the role played by the buyer’s culture, subculture
and social classes.
Culture: Culture is the most basic cause of a person’s wants and behavior. Human behavior is
largely learned. Growing up in a society a child learns basic values, perceptions, wants, and
behaviors from the family and other important institutions. Culture influence the consumer
behavior through family, friends which borne into a mindset that influence a decision of a
person including their buying decision. An idea of values that people possess are different from
one group of society to another, a cultural shift (consumer’s concern) becomes a great point
influence the demands of consumers in the society.
Subculture: Kotler & Amstrong define subculture as a smaller part of a culture, or groups of
people with shared value systems based on common life experiences and situation. It includes
nationalities, religions, racial groups, and geographical regions. In this context noted four of such
important subculture groups including Hispanics, African American, Asian and Mature
Consumers. Hispanics Markets is a type that is loyal to a brand. Hispanic consumers tend to buy
more branded, higher quality products. They tend to make shopping a family affair and children
have a big say in what brands they buy. Hispanics are very brand loyal and they favor companies
who show special interest to in them. African Americans are also strongly motivated by quality
and selection. Brands are more important, and the consumers of African American seem to
enjoy shopping more than other groups. These consumers are also the most fashion conscious
of the ethnic groups.
Social Class: The added that social class is not determined by a single factor, such as income, but
are measured as a combination of occupation, income, education, wealth and other variables.
b. Social Factors: In social factors divide the factors into several specific parts, such as consumer’s small group, family and social roles and status. Groups: Groups that have a direct influence and to which a person belongs are called membership groups. In contrast reference group serve as direct or indirect points of comparison or reference in forming a person’s attitudes or behavior. People often are influenced by reference group to which they do not belong. Reference groups expose a person to new behaviors and lifestyles, influence the person’s attitudes and self-concept, and create pressures to conform that may influence the person’s product and brand choices.
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Family: Family is the most important consumer buying organization in society and it has been
researched extensively. Husband-Wife involvement varies widely by product category and by
stage in buying process. Children may have a strong influence on family buying decision for
everything from cellphone to restaurants to cars. Buying decision of consumers are influenced
by family’s decision, especially in Asian where its culture to respect the elders and taking their
family a s their priority above all.
Roles and Status: A person belongs to many groups family, clubs and organization, the person’s
position in each group can be defined in terms of both role and status. A role consists of the
activities people are expected to perform according to the person around them. Each role
carries status reflecting the general esteem given to it by society. People usually choose
products appropriate to their roles and status.
c. Personal Factors: A buyer decisions also are influenced by personal characteristics as the
buyer’s age and life cycle stage, occupation, economic situation, lifestyle, and personality and
self-concept.
Age and Life-Cycle Stage: Taste in food, clothes, furniture, and recreation are often age related.
Buying is also shaped by the stage of the family life cycle - the stages through which families
might pass as they mature over time. Traditional family life cycle stage includes young singles
and married couples with children.
Occupation: They added that blue-collar workers tend to buy more rugged work clothes,
whereas executive buy more business suits. Occupation of a consumer itself determines their
buying behavior by the style they do at their working environment.
Economic Situation: Economic situation will influence product choice, marketers of income-
sensitive goods watch trends in personal income, savings, and interest rates. It is obvious that an
economic level of a consumer will determine their choice of buying as they adjust their purchase
power with the goods and services.
Lifestyle: Lifestyle is a person’s pattern of living as expressed in this or her psychographics. It
involves measuring consumers interest which leads to buying behavior. Lifestyle captures
something more than the person’s social class or personality. It profiles a person’s whole
pattern of acting and interchanging consumer values and how they influence buying behavior.
Personality and Self-Concept: Personality refers to the unique psychological characteristic that
leads to relatively consistent and lasting responses to one’s own environment. Personality is
usually described in terms of trait such as self-confidence, dominance, etc. There is an idea that
brands also have personalities and that consumers are likely to choose brands with personalities
that match their own. A brand personality is the specific mix of human traits that may be
attributed to a particular brand.
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d. Psychological Factors: A person’s buying behavior choices are further influenced by four major psychological factors: Motivation, Perception, Learning, and Beliefs and. Motivation: A Person has many needs at a given time. A motive or a drive is a need that is sufficiently pressing to direct the person to seek satisfaction of need. Freud’s theory suggest that a person buying decisions are influenced by subconscious motives that even the buyer may not fully understand. A person tries to satisfy the most important need first. When that need is satisfied, it will stop being a motivator and the person will then try to satisfy the next most important need. Perception: People can form different perceptions of the same stimulus because of three perceptual process; selective attention, selective distortion, and selective retention. Each person fits incoming information into an existing mind-set. Selective distortion describes the tendency of people to interpret information in a way that will support what they already believe. Selective distortions means that marketers must try to understand the mind sets of consumers and how these will influence interpretations of advertising and sales information. Selective retention describes that consumers are likely to remember good points made about brand they favor and to forget good points made about competing brands.
Learning: A drive is a strong internal stimulus that calls for action. A drive becomes a motive
when it is directed toward a particular stimulus effect. When consumers tend to decide which
product they shall buy, they might respond to cues, cues are minor stimuli that determine when,
where, and how the person responds.
Beliefs and Attitudes: Through doing and learning that people acquire beliefs and attitudes.
Beliefs are a descriptive taught that a person has about something. Beliefs may be based on real
knowledge, opinion, or faith and may or may not carry an emotional change. Attitude describes
a person’s relatively consistent evaluations, feelings and tendencies toward an object or idea.
Attitudes put people into a frame of mind of liking or disliking things or moving toward or away
from them. Attitudes are difficult to change, a person’s attitudes fit into a pattern and change
one attitude may require difficult adjustments in many others. The forces of beliefs and
attitudes push a company to fit its products into existing attitudes rather than attempt to
change attitudes.
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RESEARCH METHODOLOGY
The population of interest for the research is the smart phone users in India. The research applied the accidental sampling since the cost of a census for surveying the entire population is too high. Accidental sampling is a type of nonprobability sampling. It involves the sample being drawn from that part of the population, which is close to hand. A population is selected because it is available and convenient.
The questionnaire was distributed via Internet.
Sample Structure
A total of 29 questionnaires were distributed, and 29 of them were collected, comprising the return rate of 100%. Excluding invalid questionnaires, 29 effective questionnaires were collected, comprising the effective return rate of 100%.
Distribution of respondents by Gender Gender was included in the survey in order to find out whether there is a difference between men and women concerning the beliefs towards the factors.
Distribution of respondents by age
Male 19 65.5%
Female 10 34.5%
18-21 1 3.4%
22-25 10 34.5%
26-30 10 34.5%
31-40 1 3.4%
41-50 1 3.4%
Above 50 6 20.7%
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Distribution of respondents by Educational Qualification
Distribution of respondents by Annual Income
Distribution of respondents by Occupation
Class 10th Pass 0 0%
Class 12th Pass 1 3.4%
Graduate (Degree/Diploma) 15 51.7%
Post Graduate (Degree/Diploma) 12 41.4%
Doctorate 1 3.4%
1 lakh-5 lakhs 15 51.7%
5 lakhs-10 lakhs 9 31%
10 lakhs-15 lakhs 2 6.9%
Above 15 lakhs 3 10.3%
Student 10 34.5%
Self-employed 1 3.4%
Government 6 20.7%
Private 8 27.6%
Retired 2 6.9%
Unemployed 2 6.9%
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Analytics of the Responses
1. Reason for owning a Smartphone
51.7% of the respondents said “Smartphones are more useful than normal mobile phones,
irrespective of its cost”, which means a majority of the respondents are willing to spend
whatever it takes to own a Smartphone just because they are more useful.
The rest 48.3% are conscious of the price/quality ratio in Smartphones.
2. Level of satisfaction with existing Smartphone
37.9% of the respondents are satisfied with their existing Smartphones to the extent of 4 out of
5, 5 being “Extremely satisfied”, and 1 being “Not at all satisfied”.
34.5% of the respondents are extremely satisfied with their existing Smartphones.
Not at all satisfied Extremely satisfied
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3. The degree of influence of the various factors on the purchase of a smartphone Below are given the degree of influence of various factors on the purchase of a smartphone, with percentage in brackets indicating the majority of respondents indicating the degree.
Factor
Dominant Degree of Influence
% of respondents who opted for the dominant degree
Family and friends suggestion/ Word of mouth
Influential 48.3%
EMI option
Non-Influential 41.4%
The well-known brand name of the product
Influential 58.6%
The quality of the product
Strongly Influential 51.7%
Your satisfaction for a previous product of certain brand
Influential
55.2%
Your position within the society
Neutral
51.7%
Technical aspect of the product
Influential 58.6%
Festival season/ promotions
Influential 34.5%
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4. Which brand of smartphone do you own?
Advertisement
Neutral 34.5%
After sales services
Influential 37.9%
Age/life cycle stage
Influential 31%
Lifestyle, personality and self-concept
Influential
41.4%
Sony 14%
Samsung 25%
HTC 3% Apple
4%
Micromax 18%
Microsoft 4%
Other 32%
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5. Would you like to switch to another brand?
6. How much are you willing to pay for a smartphone of your choice?
<Rs. 5000 0%
Rs. 5000-10000 4%
Rs. 10001-15000 24%
Rs. 15001-20000 24%
Rs. 20001-25000 24%
Rs. 25001-30000 14%
Rs. 30001-35000
3%
>Rs. 35000 7%
Yes 62%
No 38%
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7. Degree of importance for the following features of a smartphone while purchasing one
8. Where do you usually use your smartphone?
Idle time at work/college
38%
Home 48%
Others (example: bus stand, malls)
14%
Feature Dominant Degree of Importance % of Respondents who opted for the Dominant Degree
User-friendly operating system Extremely Important 58.60%
Long lasting battery life Extremely Important 69%
Processor Extremely Important 48.30%
Fast charging Important 44.80%
Wireless charging capabilities Neutral, Not Important 31%
Front camera resolution Important 38%
Rear camera resolution Important 37.90%
Display (Size) Important 37.90%
Display (Resolution) Important 44.80%
Design Important 48.30%
Multi-SIM capability Important 31%
SIM size Neutral 34.50%
NFC capability Neutral 44.80%
Security features Extremely Important 41.40%
RAM size Extremely Important 58.60%
Body color Important 37.90%
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9. Do you use your computer less now because of smartphone even if the cost of using it is high?
The degree of influence of various factors on the purchase of a smartphone
The factors are:
1. Family and friend’s suggestion/ Word of mouth
2. EMI option
3. The well-known brand name of the product
4. The quality of the product
5. Your satisfaction for a previous product of certain brand
6. Your position within the society
7. Technical aspect of the product
8. Festival season/promotions
9. Advertisement
10. After sales services
11. Age/life cycle stage
12. Lifestyle, personality and self-concept
The reliability and consistency of the data that has been extracted in the study was examined through
reliability test with, Cronbach's α as a coefficient of internal consistency. It is commonly used as an
estimate of the reliability of the data for a sample of examinees. The Cronbach’s α value for the given
set of sample was found to be 0.816.
Yes 55%
No 45%
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As per the ranges provided by George and Mallery (2003), Cronbach’s Alpha value greater than or equal
to 0.5 is considered acceptable. Indeed the value of Cronbach α as 0.816, shows that there is an
acceptable internal consistency in the items taken in the study.
Further, Bartlett’s Test of Sphericity and KMO Measure of Sampling Adequacy were performed to
confirm the suitability of the data for factor analysis. KMO and Bartlett’s Test shows that the result of
the Bartlett’s Test of Sphericity is significant at 0.000 of p values, which meets the criteria of value lower
than 0.05 in order for the Factor Analysis to be considered appropriate. Furthermore, the result of the
KMO Measure of Sampling Adequacy is 0.628, which exceeds the minimum value of 0.5 for a good factor
analysis.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .628
Bartlett's Test of Sphericity
Approx. Chi-Square 162.736
df 66
Sig. .000
Factor Analysis
Descriptive Statistics
The first output from the analysis is a table of descriptive statistics for all the variables under
investigation. Typically, the mean, standard deviation and number of respondents (N) who participated
in the survey are given. Looking at the mean, one can conclude that quality of the product influences
the respondents the most while purchasing a smartphone. It has the highest mean of 4.276. It means
that more than any other factor, the quality of the Smartphone should be looked at by marketers while
persuading a consumer to buy a smartphone.
Reliability Statistics
Cronbach's
Alpha
Cronbach's
Alpha Based on
Standardized
Items
N of Items
.816 .819 12
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Descriptive Statistics
Mean Std. Deviation Analysis N
Suggestion 3.379 1.0828 29
EMI 2.276 1.0656 29
BrandName 3.862 .9901 29
Quality 4.276 1.0656 29
PreviousProduct 4.000 .9258 29
PositionInSociety 2.897 .7720 29
Technical 4.138 .8334 29
SalesPromotion 3.310 1.2846 29
Ad 3.138 1.0930 29
AfterSales 3.828 1.1361 29
AgeLifeCycle 3.310 1.2278 29
Personality 3.483 1.0563 29
The Correlation matrix
The next output from the analysis is the correlation coefficient. A correlation matrix is simply a
rectangular array of numbers which gives the correlation coefficients between a single variable and
every other variable in the investigation. The correlation coefficient between a variable and itself is
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always 1; hence the principal diagonal of the correlation matrix contains 1’s. The correlation coefficients
above and below the principal diagonal are the same. The determinant of the correlation matrix is
shown at the foot of the table below.
Some of the values are negative in the matrix.
The showing of advertisement outweighs in influence than the personality.
What that means is that the more appealing the ad is, the lesser will be the influence of personality over
purchase of a smartphone. A person will not look at his/her personality while purchasing if the ad is
appealing.
Quality and Brand Name are highly correlated, which means that higher the quality, higher will be the
brand name.
Kaiser-Meyer-Olkin (KMO) and Bartlett's Test: measures strength of the relationship among variables
Factor Analysis is acceptable as KMO is above 0.6.
At 95% confidence level, NULL hypothesis is not accepted.
Significant Level is <0.05.
There is a correlation between some of the variables.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .628
Bartlett's Test of Sphericity
Approx. Chi-Square 162.736
df 66
Sig. .000
Communalities
Initial Extraction
Suggestion 1.000 .738
EMI 1.000 .630
BrandName 1.000 .787
Quality 1.000 .837
PreviousProduct 1.000 .689
PositionInSociety 1.000 .698
Technical 1.000 .742
SalesPromotion 1.000 .812
Ad 1.000 .782
AfterSales 1.000 .699
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4 factors with eigenvalues greater than 1 created.
74.639% of the responses are explained by 4 factors.
AgeLifeCycle 1.000 .724
Personality 1.000 .818
Extraction Method: Principal Component
Analysis.
Component Matrixa
Component
1 2 3 4
Suggestion .748
EMI .542
BrandName .672 -.542
Quality .666 -.603
PreviousProduct .741
PositionInSociety
Technical .712
SalesPromotion .547 .697
Ad .662
AfterSales .749
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Scree Plot levels out after 4 factors approx.
AgeLifeCycle .695
Personality .501 -.627
Extraction Method: Principal Component Analysis.
a. 4 components extracted.
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Rotated Component Matrixa
Component
1 2 3 4
Suggestion .832
EMI .787
BrandName .873
Quality .896
PreviousProduct .667
PositionInSociety .773
Technical .793
SalesPromotion .785
Ad .639 .542
AfterSales .632
AgeLifeCycle .597
Personality .873
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
Factor 1: Brand Name, Quality, Technicalities
Factor 2: EMI Option, Sales Promotions
Factor 3: Position in Society, Personality
Factor 4: Friend’s Suggestion
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Degree of Importance of various features on purchase of a Smartphone
The features considered are:
1. User-friendly operating system
2. Long lasting battery life
3. Processor
4. Fast charging
5. Wireless charging capabilities
6. Front camera resolution
7. Rear camera resolution
8. Display (Size)
9. Display (Resolution)
10. Design
11. Multi-SIM capability
12. SIM size
13. NFC capability
14. Security features
15. RAM size
16. Body colour
The Cronbach α value for the given set of sample was found to be 0.916, shows that there is an
acceptable internal consistency in the items taken in the study.
Reliability Statistics
Cronbach's
Alpha
Cronbach's
Alpha Based on
Standardized
Items
N of Items
.916 .920 16
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .568
Bartlett's Test of Sphericity
Approx. Chi-Square 346.617
df 120
Sig. .000
The KMO and Bartlett’s Test performed confirms that Factor Analysis can be done on the Features Likert
Scale.
27
Factor Analysis
Descriptive Statistics
Mean Std. Deviation Analysis N
OS 4.379 1.0493 29
BatteryLife 4.483 .9495 29
Processor 4.172 1.0375 29
FastCharging 3.966 .9814 29
WirelessCharging 3.000 1.1650 29
FrontCamera 3.793 1.0135 29
RearCamera 3.966 1.0171 29
DisplaySize 3.966 1.0171 29
DisplayResolution 4.069 .9232 29
Design 4.069 .9611 29
MultiSIM 3.483 1.2711 29
SIMsize 3.034 1.2387 29
NFC 3.034 1.0516 29
Security 3.931 1.0997 29
RAM 4.448 .7831 29
Color 3.793 1.1765 29
Battery Life seems to be given a higher importance than all other features while purchasing a
Smartphone.
28
4 factors with eigenvalues greater than 1 created.
65.974% of the responses are explained by 4 factors.
29
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Factor 1: RAM, Processor
Factor 2: Wireless Charging
Factor 3: Color of Handset
Factor 4: OS of Handset
Rotated Factor Matrixa
Factor
1 2 3 4
RAM .928
Processor .750
FastCharging .557 .448
WirelessCharging .850
NFC .692
SIMsize .624 .615
Security .426 .500
Color .897
Design .530 .549 .406
BatteryLife .495
MultiSIM .471
OS .753
FrontCamera .618
DisplayResolution .536
RearCamera .451 .533
DisplaySize .516 .518
Extraction Method: Principal Axis Factoring.
Rotation Method: Varimax with Kaiser Normalization.a
a. Rotation converged in 7 iterations.
31
Annual Income vs. Ability to Spend for a Smartphone
Pearson’s Coefficient
Correlations
Annual Income WillingToPay
Annual Income
Pearson Correlation 1 .074
Sig. (2-tailed) .704
N 29 29
WillingToPay
Pearson Correlation .074 1
Sig. (2-tailed) .704
N 29 29
There is no significant relationship between Annual Income and ability to spend for a smartphone.
Low correlation between willingness to pay and quality implies that for the respondents, quality of the smartphone is high on importance but they are not willing to spend more on the smartphones. High correlation between brand name and quality implies that respondents placed equally high importance on brand name and quality.
Correlations
WillingToPay BrandName Quality
WillingToPay
Pearson Correlation 1 .008 .213
Sig. (2-tailed) .966 .267
N 29 29 29
BrandName
Pearson Correlation .008 1 .850**
Sig. (2-tailed) .966 .000
N 29 29 29
Quality
Pearson Correlation .213 .850** 1
Sig. (2-tailed) .267 .000
N 29 29 29
**. Correlation is significant at the 0.01 level (2-tailed).
32
Age vs. Ability to Spend for a Smartphone
Pearson’s Coefficient
Correlations
Age of
Respondent
WillingToPay
Age of Respondent
Pearson Correlation 1 .194
Sig. (2-tailed) .312
N 29 29
WillingToPay
Pearson Correlation .194 1
Sig. (2-tailed) .312
N 29 29
Age has no effect on ability to spend for a Smartphone.
Another interesting Result: Does age effect the owner of a Smartphone to use it more as against a
Computer?
Correlations
Age of
Respondent
ComputerVsSm
artphone
Age of Respondent
Pearson Correlation 1 -.077
Sig. (2-tailed) .692
N 29 29
ComputerVsSmartphone
Pearson Correlation -.077 1
Sig. (2-tailed) .692
N 29 29
So, more the age, lesser the computer usage, because the older people use smartphones more now
instead of the computer.
33
Gender vs. Family and friend’s suggestion/ Word of mouth
Correlations
Gender of
Respondent
Suggestion
Gender of Respondent
Pearson Correlation 1 -.190
Sig. (2-tailed) .322
N 29 29
Suggestion
Pearson Correlation -.190 1
Sig. (2-tailed) .322
N 29 29
The above table suggests that males place Family and friend’s suggestion/ Word of mouth high on
importance while purchasing a Smartphone.
34
DISCUSSION
The major purpose of this study is to explore smartphone consumer behavior by finding the determinants of smartphone purchase.
Some key points to note are:
A majority of the respondents are willing to spend whatever it takes to own a Smartphone just
because they are more useful.
A majority of the respondents are somewhat satisfied with their existing handsets, but 62% of
them want to switch to another handset.
Quality of product plays a major role in the purchase decision
A majority of respondents are willing to spend anywhere between Rs. 10,000-25,000 to get a
quality product from the market, but not more than that
User-friendly operating system, Long lasting battery life, Processor, Security features and RAM
size figure high on the importance list for the respondents
A majority of the respondents (48.3%) use their Smartphones while at home
Also, a majority (55.2%) of the respondents now are using their computers less because of their
Smartphones
More than any other factor, the quality of the Smartphone should be looked at by marketers
while persuading a consumer to buy a smartphone
A person will not look at his/her personality while purchasing if the ad is appealing.
There is no significant relationship between Annual Income and ability to spend for a
smartphone. This means a person is likely to exceed his/her spending limit for a Smartphone if
either the quality is superb or the advertisement is appealing.
For the respondents, quality of the smartphone is high on importance but they are not willing to
spend more on the purchase.
Age has no effect on ability to spend for a Smartphone. This means that it is possible for an older
person to exhibit the same buying behavior as exhibited by a youngster, provided the quality is
up to the standard.
More the age, lesser the computer usage because the older people use smartphones more now
instead of the computer
Male respondents placed Family and friend’s suggestion/ Word of mouth high on importance
while purchasing a Smartphone.
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CONCLUSION
An implication for business bodies would be to concentrate on quality and advertisement. If successful,
people from both genders and all age groups will buy their Smartphones irrespective of their purchasing
power, as Smartphones are considered to be more useful than normal phones by a majority of the
respondents.
A new electronic gadget by the name of Smartphone is rapidly becoming an essential part of the life of
new generation users of mobile. The versatility of this instrument is resulting in the exponential rise of
its market share. People are buying Smartphones irrespective of its prices. Other features like brand,
social image, technology and durability are playing major role in buying decisions of consumers. It is
important to highlight that the results of this paper can provide new marketing dynamics to the leading
mobile companies for a market, that is very soon be contributing a major share in the revenue of these
companies.
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REFERENCES
1. "TRAI Press release". TRAI. 10 April 2015.
2. "Census India 2014". World Bank. 31 December 2014. 3. CISCO VNI Mobile Forecast Highlights, 2014 – 2019 4. http://www.huffingtonpost.in/2015/02/03/cisco-smartphone-forecast_n_6610520.html
5. http://www.pcquest.com/smartphone-landscape-2015-india/, Last updated February 4, 2015