Post on 17-Jan-2023
PROJECT REPORT ON:-
CONSUMER PERCEPTION TOWARDS SMARTPHONES
Submitted in partial fulfilment of MBA program
2013-15
Submitted To: SubmittedBy:
Mr. Surjit Kumar Kar ASHMEET SINGH KHANUJA
Assistant Professor
Marketing & Strategy
Certificate by Guide
This is to certify that major research project
work done on “CONSUMER PERCEPTION TOWARDS
CONSUMER DURABLE BRANDS (SMARTPHONE’S)” submitted
to IBS Hyderabad, IFHE University by ASHMEET
SINGH KHANUJA,, KEERTHI CHANDRA & GAYATRI PATRA
in partial fulfilment of the requirement for
the Non-Class Participation - 2. This is a work
carried out by all of them under my supervision
and guidance. This work has not been submitted
anywhere else for any other degree/diploma. The
original work was carried at ICFAI Business
School, Hyderabad.
Date: 05 January 2014
Assistant Professor
Marketing & Strategy
IBS Hyderabad
IFHE University
Hyderabad, Andhra Pradesh
DECLARATION
We hereby declare that the research project
work entitled “CONSUMER PERCEPTION TOWARDS
CONSUMER DURABLE BRANDS (SMARTPHONE’S)” is
submitted to IBS Hyderabad, IFHE University,
Andhra Pradesh is a record of original work
done by us under the guidance of Mr. ……… Kumar
Kar, Assistant Professor, Marketing & Strategy,
…….. Business School, Andhra Pradesh and this
research project work has not been performed
for the award of any other degree or diploma
and similar project if any.
ASHMEET SINGH
KHANUA
KEERTHI CHANDRA
GAYATRI PATRA
MBA SEM -II
2013-15
ACKNOWLEGEMENT
We would like to express our deep gratitude toMr. ……… Kumar Kar Assistant Professor(Marketing & Strategy), ICFAI Business School,IFHE University for his constant support,guidance and motivation which helped us
immensely in completing this project. Theinsistence on taking up a relatively new topichelped us to understand the prospects how theconsumer perceived about the consumer durablebrands. We also would like to thank ourrespondents for giving us their valuable timeand providing us with the information needed tocarry out the research successfully.
ASHMEET SINGH KHANUJA KEERTHI CHANDRA
GAYATRI PATRA
MBA SEM-II 2013-
15
TABLE OF CONTENTS
SRNO.
CONTENTS
1 INTRODUCTION2 LITERATURE REVIEW
3 OBJECTIVES AND HYPOTHESIS OFTHE STUDY
4 RESEARCH METHODOLOGY5 RESULTS AND DISCUSSION6 LIMITATIONS7 REFFERENCES8 ANNEXURE
INTRODUCTION
A Smartphone is a mobile phone built on mobile operatingsystem with enhanced and more advanced computing capabilityand connectivity than a normal mobile phone. The firstSmartphone combine the function of a personal digitalassistant (PDA) with mobile phone. Later, models added thefunctionality of media players, digital cameras, video cameras& GPS navigation system to form one multi tasking device. Manymodern Smartphone also include high resolution camera withtouch screen pad and web browser that display standard webpages. For high speed data accesses the Smartphone includeWiFi function and mobile broadband. In recent years the rapidof development of mobile applications & of mobile commerce hasbeen drivers of smart phone adaption.
The mobile operating system use by modern Smartphone includesGoogle’s android, Apple’s iOS, Nokia Symbian, Rim’s BlackberryOS, Samsung BADA, Microsoft Windows phone, and Hewlett-Packard’s web OS. Such operating system can be installed ondifferent mobile phones and each device can receive multipleOS Software update over its life time. I n this project wediscussed the importance of analysing the consumer perceptiontowards durable brand’s with the help of Smartphone. Local andforeign brand choice affected by various factors such as brandimage, country of origin, brand awareness, brand quality andso on…. In this era of globalisation consumer have become muchmore aware and the perceptions regarding durable brands arechanging at a rapid pace. It has been seen that price &quality of the durable goods are considered to be majorfactors of making their brand choice. Consumer prefer low
brand product because of lower price, similarly in case ofSmartphone’s the increasing demand of low brand Smartphone’sare because of consumer’s affordable prices in India, AsIndian consumer are more price sensitive. But consumers whowant better quality and durability and for the statusenhancement reasons prefer foreign brands, like in case ofSmartphone’s the consumer who wants better quality, durabilityand consider status will prefer Apple Smartphone. Now in orderto understand consumer perception we need to understandculture, so that behaviour of consumer is well understood. Theperception consumers have of a business and its product orservices whether it’s durable or non durable, have a effect onpurchasing behaviour of the consumer that’s why companiesspend lots of money in marketing themselves. They marketingthemselves by providing excellent customer services and otherinfluential programs which can favourable influence theperception of target consumer. With the help of carefulplanning and execution companies can influence thoseperception and foster profitable consumer behaviour. Consumerscontinually synthesise all the information they have about acompany to make a decision about whether the company offersvalue for the money, in a sense consumer perception is anapproximation of reality.
LITERATURE REVIEW
In this project we are going to discuss about the perceptionsof consumer towards durable brand for which we have taken theexample of Smartphone’s to analyse how the consumer perceiveand what are the factors which affect the consumer perceptionregarding a particular product.
Perception:-
Perception is the process by which we select,organise, and interpret information input to create a meaningfull picture of the world. It depend not only on physicalstimuli but also on the stimuli relationship to thesurroundings environment and on condition within each of us.One Person might perceive a fast talking sale person asaggressive and in sincere another person might perceive thatas intelligent and help full. Each person will respond to thesales person differently. People perceive differently becauseof three perceptual processes…
1. Selective Attention2. Selective Distortion3. Selective Retention4. Subliminal Perception
Selective Attention:-Attention is the allocation of processing
capacity to some stimulus. An average person may be exposed todifferent ad’s brand communication a day. But we cannotpossible attend these; we screen most stimuli out – a processcalled Selective Attention.
Selective Distortion:-Even noticed stimuli don’t always come
across in the way the sender intended. Selective distortion isthe tendency to interpret in a way that fits ourpreconception. Consumer will often distort information to beconsistent with prior brand and product belief andexpectations.
Selective Retention:-Most of us don’t remember much of the
information to which we are exposed, but we do retaininformation that supports our attitude and beliefs. Because ofselective retention , we are likely to remember good pointsabout a product we like and forget good points about competingproducts. Selective retention again works for the strongbrands.
Subliminal Perception:- The selective
perception mechanism require consumers; active engagement andthought . A topic that has fascinated armchair marketer forages is subliminal perception. They argue that marketers embed
covert , subliminal message in ads or packaging .consumers arenot consciously aware of them, yet they effect behavior .although it’s clear that mental process include many subtlesubconscious effects , no evidence support the notion thatmarketers can systematically control consumers at that level ,especially enough to change moderately important or stronglyheld beliefs. Consumer perceived value of the Smartphonetradeoff between benefit and sacrifices perceiver by consumer,in which benefits are adopted from the technology ofacceptance model.
Product Level:- Kotler indicates that marketer needs to consider
five product levels when planning market offering. Each levelincreases more consumer value. Five product levels are asfollows:-
Core benefits Basic Product Excepted Product Augmented Product Potential Product
In case of Smartphone market the Core Value for the mostbuyers could be the convenience and timeliness of
communication, including multi-media communication; at thesecond level, the basic might be concrete, communicable, andmulti-function Smartphone product; at the third level,Smartphone user expect that the Smartphone is useful andquality, for example performance, camera, and screen pixels;at the fourth level, the augmented product can be the pleasingdesign and diversity. At the fifth level, the potentialproduct is possibly the voice control system.
According to our survey the major determinant of mobile phoneinclude branding, price, feature, appearance, & lifestyle.Therefore in this study branding, price, feature, appearance,lifestyle, & accessories are sub-assumed into the independentvariable.
1. Branding:-Kotler and Keller suggested that branding could be
divided in two parts – brand awareness & brand image. Brandawareness refers to the ability of the customer to consider abrand under different circumstance. On the other hand BrandImage refers to the perception about the brand which isreflected by the bran associations held in consumer memory.Consumer often choose that product brand that they arefamiliar with because a well known brand gives peopleperception of being safe.
2. Price:-Price of a product is nothing but the cost of
product. Which is the reason the people compare price with thequality of product, consumer generally perceived that if theprice of the product is high then the quality of the productis better. When the utility of the two product is similar and
their prices differ, consumer will choose the option whichchoose the product with lower price to maximise the utility.
3. Feature/ Appearance:-Appearance of the product can influence the
consumer perception easily because products with appealinglook are able to catch consumer’s eyes and get once attention.Appearance of the product is now only satisfied by the needsvisually but also a critical factor in marketing strategies,for example:- Apple made it product look appealing to aconsumer with a snow white industrial design, which save theappearance of Apple product four years.
4. Lifestyle:-Some people think that if they have a good quality
Smartphone it represent their lifestyle. So lifestyle can beconsidered as the factor which distorted consumer perception.
OBJECTIVES OF THE STUDY
Objective of the study is to study the consumerperception towards durable brands. Here we have tostudy how consumer perceive durable brands, howconsumer behaved and what are the factors which effectthe consumer perception regarding durable brands. Thestudy is based upon the primary data collected throughan online survey.
HYPOTHESIS OF THE STUDY
H0: β0= β1= β2= β3= β4= β5= β6= β7=0
Ha: β0≠ β1≠ β2≠ β3≠ β4≠ β5≠ β6≠β7≠0
β0 = intercept β1 = Smartphone’s Technology β2 = Appearance β3 = Features β4 = Brand Value β5 = Size β6 = Accessories β7 = Price
H0 : These factors does not affect the perception of the purchasing behaviour of the consumers.
Ha : These factors does affect the perception of the purchasingbehaviour of the consumer.
RESEARCH METHODOLOGY
The Study: The study was causal in nature with survey
method being used for data collection.
Sampling Design
Population: The population included viewers from IBS
Hyderabad & Other personal contacts.
Sampling frame: Since the data was collected through
personal contact the sampling frame included general
viewers from IBS Hyderabad & Other personal contacts.
Sample size: Sample size was 148 respondents.
Sample elements: Individual respondents were the sample
elements.
Tools used for data collection: Self designed
questionnaires were used to evaluate Audience
Perception of Consumer Perception Towards Consumer
Durable Brand’s with an example of Smartphone’s. Data
was collected on a 7 point Likert type scale, where 1
indicated minimum agreement and 7 indicated maximum
agreement.
Tools used for data analysis: After the collection of
respondent from two days online survey we analyzed the
data on Regression and ANOVAs with the help of SAS 4.2
Statistical Package.
RESULTS AND DISCUSSIONS
Hypothesis tested using Multiple Regression:
H0: β0= β1= β2= β3= β4= β5= β6= β7=0
Ha: β0≠ β1≠ β2≠ β3≠ β4≠ β5≠ β6≠β7≠0
Results Of Multiple Regression
Price and Brand value are the most important considerations in the buying behaviour.
Battery life plays an almost negligible role in the purchasing behaviour of consumers.
For α=.05, P value =.001, which implies that H0 is rejected. ie the variables considered affect the purchasing behaviour of the consumer.
Dependent mean= 0.61972, suggests the sample is slightly in favour of purchasing a Smartphone.
R2=0.4925 suggests that 49.25% of the variance is explained by the model.
Variance Inflation Factor is less than 5 for each of the variable, which suggests lack of multi-collinearity. Thatmeans that each of the variables in consideration is independent on its own.
The distribution of residuals for purchase suggests that the errors are equally distributed among the variables.
All the observations for which the the cook’s D statisticis above the horizontal line are influential. The influential observations can be used for further analysisto study their buying behaviour.
Outliers: an outlier is an observation with large residual. In other words, it is an observation whose dependent-variable value is unusual given its values on the predictor variables. An outlier may indicate a samplepeculiarity or may indicate a data entry error or other problem.
Leverage: An observation with an extreme value on a predictor variable is called a point with high leverage. Leverage is a measure of how far an observation deviates from the mean of that variable. These leverage points canhave an effect on the estimate of regression coefficients.
LIMITATION
1: Some of the people were not responsive.
2: Possibility of error in data collection because many
of the respondents may have not given a
answer to the questionnaire.
3: Sample size is less to represent the whole
population.
4: The time period of research was short.
5: Respondents behaviour may be casual.
6: Financial resources are not available.
REFERENCES
Marketing Management – Philip Kotler 14e
Marketing Research – Naresh K. Malhotra Fourth
Edition
Statistics for Business and Economics – Anderson,
Sweeney, Williams
ANNEXURE ANNEXURE 1
QUESTIONNAIRE
Consumer perception towards smartphone
NAME
OCCUPATION
Do you have a smart phone?o YESo NO
The emergence of smartphones has changed the way we communicate with one another.
1 2 3 4 5 6 7
Disagree
Select a value from a range of 1,Disagree , to 7,Agree,.
Agree
Do you get attracted by the appearance and design of smartphone and then want to own it?
1 2 3 4 5 6 7
Disagree
Select a value from a range of 1,Disagree, to 7,Agree,.
Agree
My Purchase of smartphone depends on the features the smartphone provides.
1 2 3 4 5 6 7
Disagree
Select a value from a range of 1,Disagree, to 7,Agree,.
Agree
Brand name plays a vital role while purchasing any smartphone.
1 2 3 4 5 6 7
Disagree
Select a value from a range of 1,Disagree, to 7,Agree,.
Agree
I consider the 'value for money' concept while purchasing a smartphone.
1 2 3 4 5 6 7
Disagree
Select a value from a range of 1,Disagree, to 7,Agree,.
Agree
I prefer smartphones which are easy to carry and can be easily fit to my pocket.
1 2 3 4 5 6 7
Disagree
Select a value from a range of 1,Disagree, to 7,Agree,.
Agree
Accessories and other free benifits effect my purchasing decision.
1 2 3 4 5 6 7
Disagree
Select a value from a range of 1,Disagree, to 7,Agree,.
Agree
I look towards the battery life factor if the number of technical applications and functions are less.
1 2 3 4 5 6 7
Disagree
Select a value from a range of 1,Disagree, to 7,Agree,.
Agree
Smartphones are generally high priced.
1 2 3 4 5 6 7
Disagree
Select a value from a range of 1,Disagree, to 7,Agree,.
Agree
I believe that the type of smartphone represents my life style.
1 2 3 4 5 6 7
Disagree
Select a value from a range of 1,Disagree, to 7,Agree,.
Agree