Research report

A study on Consumer buying behavior on Smartphone in Karnataka

Nitin talekar

MBA(R17MB159)

REVA University, Bangalore

Guidance: Dr.navaneethakumar venugopal

Abstract

To study on customer purchase behavior on Smartphone. Customer buying is not only transfer of item
from seller to buyer. Consumer wants buying to become a happy affair. Understanding this
psychology for the consumer many organizations have come to make purchase of happy affair. The
present study is conducted in Karnataka state and it is decided to consider different mobile phones’
like Nokia, Sony, Samsung , HTC, xiaomi and Micromax. This research study helps to know the
factors which influencing the consumer to purchase Mobile Phones. This study helps to know the
buying behavior of the consumer while choosing Mobile Phones. This study also helps to know the
consumers satisfaction level towards different branded mobile phones. This research study also helps
to know the reason for the dissatisfaction of the consumer. 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 or a particular store in preferred to others

Key-Word: Influence, convenience, social needs, dependence, purchase behavior.

1. INTRODUCTION
Consumer buying is not only transfer of item from seller to buyer. Consumer wants buying to become
a happy affair. They would like to see, touch and feel the commodities that they buy. Understanding
this psychology for the consumer many organizations have come to make purchase of happy affair.

1.1 Marketing : Marketing is more important as it relates to consumer and their needs, whatever
may be the objectives of business, and the main in which it has to concentrate will be marketing.
Business today, concentrating on marketing is found to be fairly successful though success depends on
many other factors.

1.2 Consumer buying behavior: The main aim of marketing is meet and satisfy target
customers need and wants buyer behavior refers to the peoples or organization conduct activities and
together with the impact of various influence on them towards making decision on purchase of product
and service in a market. The field of consumer behavior studies how individuals, groups and

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organization select, buy, use and dispose of goods, service, ideas, or experience to satisfy their needs
and desires understanding consumer behavior and knowing customer are never simple. The wealth of
products and service produced in a country make our economy strong. The behavior of human being
during the purchase is being termed as “Buyer Behavior”.

2. REVIEW OF LITERATURE
 Bigne (2005) mention about mobile phones as a luxury item still and that there is a significant
lack of research in this field. A conceptual model in their study developed states about
independent decision making by the buyers in decision making. The theory of information
overload has been in the limelight for many years.
 Luca (2008) explains the role of brand in shifting preferences in the consumer buying
behavior. The study highlights the underlined importance of brands and the dualism between
marketing and technology of the technological products.
 Chen (2009) et al in their research reinforce the importance of the information overload theory
concludes that beyond a threshold, more information leads to worse quality of, but a better
subjective state towards the buying decisions.
 Didier Louis (2010) et al through their survey collected form young French consumers studied
that the personality traits impact directly on one of the three relational consequences of trust,
attachment and commitment to the brand. They proposed a model refining the overall
understanding that the researchers and managers possess.
 Zhou (2011) in his empirical study conducted indicate that contextual offering has a strong
impact on trust, flow and perceived usefulness which are the three major factors which
determine the mobile purchase intention.
 Rock (2011) et al in their research findings through an article published mentioning about the
potential in the mobile devices to support older adults in the range of 65 and above. An
empirical study and analysis conducted by Tosell (2012) et al collected data for a specific age
group and discusses about how they adapt the content, interface and physical appearance of
their devices. The authors found that the adaptability and usage was wild. Thus a large span
with respect to the smart phone personalization has been seen in the past.
 Chou (2012) et al through a study on customizations of mobile phones concluded in their
results that text messages, battery contact, software design and display size need a very high
level of customization in manufacturing of mobile phones.
 Kim (2012) et al identified the relationship between the usability and the product success in
cell phones through existing usability of mobile phones and factors that affect the success of
the product. The study results showed that design, customer needs and innovativeness in the
cell phones were the most important factors rates by the users.
 A study by Chen (2012) et al supported with the help of partial least square graph software
based equation modeling approach reveal their interesting findings that the effects of the
media characteristics such as interactivity and tele presence may have significant influences in
the buying behavior of mobile phones.

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 Persuad and Azhar (2012) through their study results about the talk about the three important
motivational factors viz, shopping style, brand trust and value. The research also found that for
company’s value creation is largely based on building relationships and engaging customers.

3. STATEMENT OF THE PROBLEM

 This study was carried out only among the consumers in Karnataka state.
 The sample size was restricted to 50 due to time restriction.
 The sample was taken on the basis of convenience; therefore the shortcoming of the
convenience sampling may also be present in this study.

4. OBJECTIVES
 To know the consumer buying behavior towards mobile phones in Karnataka state.
 To find out the factors which influences the consumers to buy mobile phones.
 To analyze what are the effect on purchase decision making process.

4.1 . Research Methodology

The primary data collected through questionnaire. No of Respondents include both male and female.
Convenience sampling method has been adopted under the non-probability sampling technique and
about 50 samples have been collected for the study.

4.1.1. Research Design: A research design is the arrangement of conditions for collection and analysis
of data in a manner that aims to combine relevance to the research purpose with economy in
procedure.

4.1.2. Descriptive Research: Descriptive research is designed to describe something, such as

demographical characteristics of consumers who use the products. It deals with determining frequency
with which something occurs or how two variables vary together.

4.1.3. Sampling Size: The study was conducted towards Smartphone users. The size of the population
is 50 and the survey was conducted in Karnataka state.

4.1.4. Sampling Method: Convenience sampling was adopted in the research work under sample
random method.

4.1.5. Primary Data& Secondary Data: To achieve the objective of the study, the primary data have
been collected through questionnaire. This questionnaire aims to gather information related to
customers expectations and observations. The secondary data means already available data. (Books,
library)

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5 DATA ANALYSIS:
Data analysis is analyzing the collected data. In their data collected through questionnaires was
analyzed. As the primary research method was survey, Questionnaires was distributed among people
via e-mail, Facebook and whatsapp. Microsoft office was used to process the data using various graph,
chat and statistics to illustrate the finding. Data analysis will first show the sample and analyze the
targeted sample. Then according to research objectives the finding was discussed and analyzed.

5.1 Gender:
The total targeted sample consisted of 50 people in which 45 of them used Smartphone. The result
shows that out of the 50 people 41 were male which is 82% of total targeted population and 9 were
female which 18% of total targeted population sample is. As per 2011 census, the Population density
is 319 per km², the sex ratio is 973 females to 1000 males, so this is a positive finding with regards to
male and female ratio of Karnataka population.

frequency percent valid percent

male 41 82.0 82.0

female 9 18.0 18.0

total 50 100.0 100.0

Table (1) Showing frequency and percentage of gender of respondents.

5.2 Age
The total number of respondents was 50 and in that the highest majority of respondents were of age
21-30 that are 33 respondents which was 66% of total. The second highest and third highest
respondents were age below 20 and 31-40. This can imply that other age groups were
underrepresented in the sample in relation to the Indian population as they make up a significant
percentage of the Indian population (Cia.gov, 2014).

frequency percent valid percent

below 20 years 15 30 30
21-30 years 33 66 66
31-40 years 2 4 4
41-50 years 0 0 0
above 50 years 0 0 0
total 50 100 100

Table (2) Showing frequency and percent of age of respondents.

5.3 Occupation

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According to the below table the maximum numbers of respondents were students which were 148
which were 56.9% of total sample. This was followed by employees working in private sector which
was 13.1%, 8.1% are self-employed and 6.9% are employed by government. 4.2% and 3.1% are in
education and management field respectively. 7.7% works in other various fields.

frequency percent valid percent

student 30 60 60
employee 18 36 36
homemaker 2 4 4
retired employee 0 0 0
other 0 0 0
total 50 100 100
Table (3) Showing frequency and percent of occupation of respondents

5.4 Consumer buying behavior towards owning a Smartphone.

50

40

30
no
20

10

0
yes no

Figure (1) showing respondents owning a Smartphone

This question was to identify that what percentage of people use smart phone in India. According to
the figure (1) From the sample of 50 people 90% that is 45 people out of 50 use smart phone and only
5 that is 10% does not use smart phone. So it clarifies that the number of smart phone users has
increased in India.

5.5 The Following Figure No (5) Shows Information about Satisfaction Level of
Smart Phone:

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Figure (2) showing 49 respondent’s satisfaction with their smart phone

This question was to identify the satisfaction of respondents with their smart phone. According to
figure (2) 81.6% said that they are satisfied with their smart phone and 18.4% said that they are not
satisfied with their smart phones and 2 %( for 50 responses) who does not use smart phone does not
reply. This data helps in analyzing the satisfaction level of consumers from smart phone, as maximum
respondents using a smart phone are satisfied with their product.

5.6 Figure (3) showing respondents plan to buy a Smartphone in future

Figure (3)

This question was to identify that those people who are not using Smartphone currently, are they
planning to buy a Smartphone or not. According to survey, 45 respondents have a Smartphone and
only 5 respondents do not own a Smartphone. So in this figure we see that out of that 5 respondents 3
plans to buy a Smartphone in near future and 2 do not want to buy a smart phone. This result clarifies
that maximum number of people are looking forward to buy a Smartphone in future.

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5.7 Figure (4) shows respondents view on switching brands

30

25

20
may be
15 no

10 yes

0
yes no may be

Figure (4)

This question was to identify as do the smart phone users want to switch their smart phone brand with
another with additional or new features as new brands are launching new and improved smart phone
and some improved features differs from brand to brand . According to the figure (4) 24 respondents
which is 49% says that they will switch to another brand with additional features where as 7
respondents which is 14.3% says that they won’t switch to another brand. 18 respondents which is
36.7% says that they are not decide about this mater. This result it clarifies that most people will
switch their Smartphone brand in order to get new features.

5.8 Level of switching smart phones

25

20

15 extrimly high
high

10 midium
low

0
low midium high extrimly high

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Figure (5) shows the level of switching of Smartphone of respondents

This question was to identify as how often person switch or change their smart phone. According to
the Figure (5) 40.8% says that they switch smart phone in high whereas 36.7% says they change their
smart phone in moderate or reasonable way. For 20.4% the level of switching smart phones is
frequently and for 2% is low they rarely change. This result helps in understand that maximum
number of people in India change their smart phone in high level which is that they use their smart
phone for 2 to 3 years.

5.9 Figure (6) Shows That How Much They Are Willing To Pay For a Smartphone

Figure (5)

This question was asked to identify as how much people are willing to pay to purchase a smart phone
this question also helps in understanding as which range of smart phone have high sales. According to
the figure (6) 54% is willing to pay form Rs. 10000 – Rs. 15000, this range focus on mid-range smart
phones in the market. 32% are willing to pay Rs. 15000 above for a smart phone. There are only 14%
who want to pay Rs. 5000- Rs. 10000 for a smart phone which is for the low-end smart phone in the
market. This result clarifies that maximum 27 number of people purchase mid-range smart phone
which cost between Rs. 10000 to Rs. 15000 and the sales of mid-range smart phone have high sales in
market.

5.10 To analyze what are the factors which influence and eventually motivate the
customer to buy Smartphone
5.10.1 Family and Friend Suggestion/ Word of Mouth:

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strongly
influence
9%
influence
9%

strongly non-
natural influence
influence 37%
15%

non influence
30%

Figure (6)

This question was asked to identify the level influence of family and friend/word of mouth on
consumer in decision making process. According to the above pie chart 37% were strongly non-
influential to family and friend suggestion whereas 30%was non influential to it.15%were neutral to
family and friend suggestions.9% respondents were influence and another 9% are strongly influential
to friends and family suggestion /word of mouth.

5.10.2 Financing

strongly non-influence
non influence
natural influence
influence
11%
strongly influence
27%
14%

11%

37%

Figure (7)

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This question was asked to identify the influence of finance in consumers before buying a
Smartphone. According to the above chart most of respondents are non influential on finance or price
factor.

5.10.3 Festival season/Promotion

strongly
influence
15% strongly non-
influence
25%
influence
18%
non influence
25%
natural
influence
17%

Figure (8)

This question was asked to identify the influence of festival offers and promotional offers on
consumer decision making process. According to the above pie chart 25% strongly non-influence and
25%non influence of festival season and promotions on them. 17% neutral influence whereas 18%,
15% are influence and strongly influenced respectively.

5.11 Consumer Brand Preference

5.11.1 to analyzing what brand of smart phone consumers prefer as their smart phone

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Figure (9)

This question helps to understand as which company is dominating the Indian smart phone market and what
brand of smart phone consumers prefer as their smart phone .according to the above pie chart in this survey
out of 50 smart phone users 46.9%purchased xiaomi smart phone,28.6%purcased Samsung smart
phone,6..1%purchesed Sony smart phone. This result clarifies that xiaomi has highest number of consumers in
the market. Samsung has 2nd highest number in the market.

5.11.2 analyzing important of brand while purchasing smart phone

30

25

20
unimportent

15 fair
important
10 very important

0
1 2 3 4

Figure (10)

This question was asked to identify the importance of brand to a consumer and dies brand name is
important to consumer in choosing in market. According to the above bar chart 26 respondents said

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that brand is very important to them whereas it is important for 12 respondents. It was fair for 7 and
unimportant for 3 of the respondents. The result clarifies that brand name is very important to
maximum consumer.

6 FINDINGS
 This study says that 90% people are having smart phone.
 Xiaomi is the most popular and widely used brand in Karnataka state.
 Advertisement is play an important role in influencing the buying decision.
 While purchasing smart phone consumers are gives more impotents to brand.
 54% of peoples are willing to pay 10000-15000 for a smart phone of their choice.
 Most of people are buying smart phone on e-commerce or online through.

7 SUGGESTIONS:
From the result inferred by the data collected and little secondary information the following
suggestions are given to improve consumer buying behavior.
 To explore the market, mobile industry have to concentrate more on youth segment by giving
more advanced features.
 Compared to urban and suburban the mobile phone usage in rural is low so the mobile
companies have to go for campaigns to create awareness among the rural people.
 By the help of CRM, analyze the customer’s needs and implement that.
 Focus on social media advertising because most of the people are using social media.
 Most of the people are believes brand because companies are more work on brand management
and brand poisoning process.

8 CONCLUSIONS
The consumer buying a variety of smart 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 or a particular store in preferred to others. Consumers mostly preferred xiaomi smart phones.

References
I. Ball-Rokeach, S. J. (1985). The origins of individual media system dependency: a
sociological framework. Communication Research, 12(4), 485-510.
http://dx.doi.org/10.1177/0093650850120040033

II. Bagozzi, R.P., Yi, Y., & Phillips, L. W. (1991). Assessing construct validity in
organizational research, Administrative Science Quarterly, 36, 421-478.
http://dx.doi.org/10.2307/23932033

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III. Amato, S., Esposito Vinzi, V., & Tenenhaus, M. (2004, March 24). A global goodness-of-
fit index for PLS structural equation modeling. Oral Communication to PLS Club, HEC
School of Management, France

IV. Auter, P. J. (2007). Portable social groups: willingness to communicate interpersonal

communication gratifications, and cell phone use among young adults. International
Journal Mobile Communication, 5(2), 139-
156.http://dx.doi.org/10.1504/IJMC.2007.011813

V. Balakrishnan, V., & Raj, R. G. (2012). Exploring the relationship between urbanized
Malaysian youth and their mobile phones: A quantitative approach. Journal of Telematics
and Informatics, 29(3), 263-272. http://dx.doi.org/10.1016/j.tele.2011.11.0011

Questioners
GENERAL INFO

1) E-mail address

………………………………………………

1) Gender
 Male
 Female
 Other
2) Age
 Below 20
 21-30
 31-40
 41-50
 Above 50
3) Occupation
 Student
 Employee

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 Homemaker
 Retired employee
 Other
4) Do you own a Smartphone?
 Yes
 No
5) If yes which brand of Smartphone you are currently using?
 Samsung ( ) microsoft ( ) apple ( ) xiaomi ( ) other ( )
6) Based on your own experience, ho yo would rate your satisfaction with the brand of smartphone.

Satisfied ( ) dissatisfied ( ) very satisfied ( ) fair ( )

7) Would you buy the same brand when buying new phone in the future?

Yes ( ) no ( ) may be ( )

8) In the following question select the degree of influence of the following factor on your purchase of
smartphone .

Strongly Non Natural influential Strong

non- influential influence influential
influential
Family and friends
suggestion
Financing /price
The well known brands
name of the products
Your satisfaction for a
previous product brands
Technical aspects of the
product
Festival
season/promotion
Advertisement
After sales service
Features

9) How often do you change your smartphone?

 less than 1 year
 1-2 years
 3-4 years
 More than 4 years
10) How much are you willing to pay for a smart phone of your choice?

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Below 5000 ( ) 5000-10000 ( ) 10000-15000 ( )

11) You prefer a smartphone manufactured by :

Authorized retailer ( ) multi brand showroom ( ) online/E-commerce ( ) other ( )

12) Do you have any suggestion?

………………………………………………………

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