INTRODUCTION
India's fast-growing mobile phone industry kept up its pace of heady growth in January with subscriber base jumping nearly 75 percent over the same month last year, data released by an industry body showed. Figures from the Cellular Operators Association of India showed that the industry had 5.725 million subscribers, up from 3.27 million at the end of January 2001 and 5.48 million subscribers at the end of 2001. The data showed that the industry added 246,281 users in January, led by the four main city markets of Bombay, New Delhi, Madras and Calcutta, which together added 93,070 customers. This was three percent less than the number of customers added in the previous month, but up 48 percent over January 2001 levels. India has emerged as the second-largest market after China for mobile-phone handsets. There are now nearly 25m mobile-phone subscribers, with GSM cellular by more than 11m in the six months to October 2003 including cellular mobile subscribers and WLL subscribers providers accounting for around 19.3m phones and rival wireless-in-local loop (WLL) or “limited mobility” operators having about 5.3m customers. The mobile subscriber base grew. In October alone, 1.1m cellular subscribers and 627,000 WLL subscribers were added. The cellular mobile market is expected to surge to 22m subscribers by the end of the year and to over 50m by 2005. According to Morgan Stanley, a US investment bank, the cellular mobile market is expected to grow at a compound average growth rate (CAGR) of 39.8% until 2007. It is estimated that the handset market will cross the $3.3-billion mark this year. Of this, $1.8 billion will flow from the GSM segment, while $1.3 billion will come from the CDMA players
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SHRINKING GREY MARKET Until last year, because of high prices and high customs duty, there was a huge grey market for handsets and it was difficult to assess the true size of the market-it is estimated that only 30% of the handsets sold were legally purchased from branded manufacturers. Now with drastic reductions in prices and customs duty rates, and customers realising the need for a legal and guaranteed handset--all mobile-phone users must file income tax returns--80% of the phones sold are legitimate. Earlier, the price difference for a handset in the grey and organised market was anywhere between 30 and 40 per cent. With the reduction in duties, this difference has now fallen to between 20 per cent and 30 per cent. The explosive growth was sparked by the entry of Reliance, India’s largest privatesector company, into the mobile market with low-priced limited-mobility services using CDMA technology. Reliance Infocomm has emerged as the largest mobile phone operator within six months of the launch of its CDMA service. It now has a subscriber base of 5.38m (as of the end of October), including both CDMA and GSM connections. It leads Bharti (4.86m) and BSNL (4.52m). LG and Samsung have reaped the benefits of the growth in the CDMA market--Reliance initially sourced all of its handsets from the two South Korean suppliers. At one point demand was so great that to avoid disappointing customers a plane had to be chartered, packed with handsets and flown to India. Reliance now also sources from others such as Kyocera and Nokia. Tata Indicom, another limited-mobility operator, last month announced the launch of handsets with two-colour monitors from Kyocera, available for an upfront payment of Rs999 (US$22) and the rest in 24 monthly instalments of Rs299
NEW ENTRANTS 2
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Most new entrants are starting with multiple models, many aimed at the high end of the market. BenQ has launched two models--the M550G priced at Rs5,450 (US$120) and the S830C priced at Rs12,450. Bird International of China has launched four handset models in India--the S288 priced at Rs5,999, the V10 priced at Rs12,999, the crystal-studded SCO4 model for women, which allows multimedia messaging and general packet radio switching and costs Rs14,999, and the SII 60, an entry-level phone with a virtual dual screen and polyphonic ring tones. The company will launch a PDA model carrying voice, data and camera later this year, priced in the Rs15,000-20,000 range. Bird has a distribution and related agreement with Agrani Convergence (ACL), an Essel group company. ACL has 50 stores in the country selling telecoms and IT products. Bird expects to sell around 35,000 units in India before the end of this financial year and 200,000-300,000 units in 2004. Meanwhile, DBTEL of Taiwan has announced that it will launch over ten GSM models in the Indian market by this month. DBTEL, which has been studying the Indian market for the past year, says it will launch its handsets at a “competitive price”. DBTEL’s range will cover the entire spectrum of low-end, medium and topline products to address all segments of the growing Indian cellular handset market. The company has appointed Chennai-based Munoth Communication as its distributor in India. LG Electronics, which is the market leader in CDMA handsets, has made a delayed entry into GSM phones. This October it launched two models in the highend segment priced at Rs13,490 and Rs18,990. The company believes that the mid- to high-priced segment forms 35% of the market and is growing at a faster rate in value terms than the lower end of the market. LG will launch four more models in December and increase its portfolio to 12 by next year. The company is hoping to sell 400,000 GSM handsets in the next calendar year.
NEW MODELS While many new entrants seem to be heading for the high end of the market, the 3 NLDIMSR
trend among experienced players seems to be a move towards the low end. Indeed, the explosive growth of the mobile market is being fuelled by rapidly falling handset prices, and several manufacturers have launched models for less than Rs5,000. It is estimated that this segment accounts for 60% of the mobile market. Nokia, which believes that there will be 100m handsets within three or four years, is focusing on reducing its prices to capture a bigger market share. As part of this strategy Nokia in September unveiled two entry-level models, the Nokia 1100 and Nokia 2300, which will be available at the retail level in the fourth quarter of this year. The Nokia 2300 phone will target the youth market, while the 1100 will be targeted at adults who want only the most basic functions. Alcatel, which is re-entering the GSM mobile market and wants to make a splash, has launched one of its cheapest handsets--the One Touch 320 model. It has been bundled with an Airtel post-paid mobile connection and free Videocon Walkman, all for Rs3,489. Only Motorola has a cheaper handset at Rs3,300. The Motorola C200 is available bundled with an Airtel pre-paid card for Rs3,650. In September Motorola launched two new handsets, the E365 and V295. Siemens has also launched a sub-Rs5,000 phone. The A50, A52, A55 series of entry-level phones have been fitted with lithium batteries. Siemens has also introduced high-end phones ranging in price from Rs10,000 to Rs24,000. It has tied up with Tech Pacific to distribute its phones. Sony Ericsson, which considers India one of its key markets, has introduced four new models. The entry level T105 at Rs5,000 has been developed specifically for the Asia-Pacific mass market. The T230, priced at around Rs10,000, has a colour screen, polyphonic ring-tone and mobile game player. The Z200, priced at around Rs15,000, has a colour screen and 40-tone polyphonic sound. The high-end Z600
has a built-in camera and is priced at around Rs20,000. MAJOR PLAYERS 4
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The Indian cellular market has much potential as penetration levels are low and the growth in cellular connections has been encouraging so far. In fact, as per the latest figures released by the Cellular Operators Association of India (COAI), the number of all-India cellular subscribers has increased by 80 per cent from 35.77 lakh in March 2001 to 64.30 lakh in March 2002. Future market estimates by various analysts (Yankee Group - 38.9 million by 2005 and Salmon Smith Barney 45.9 million by 2005) estimates the Indian cellular subscriber base by 2005 will be between 36 million and 50 million approximately. Samsung Electronics India Information and Telecommunication Ltd (SEIIT), the 100 per cent Indian subsidiary of Samsung Electronics Co Korea, has drawn up an aggressive retail strategy to corner a share of the market and is planning to invest over $1 million in setting up a chain of exclusive outlets called `Samsung Talkies'. The entire Samsung mobile range including the latest handsets will be displayed at the outlets, which will be set up in more than 10 cities across India, including Bangalore, Mumbai and Hyderabad. Meanwhile, the company has been the most aggressive in terms of marketing and advertising as compared to other cell-phone companies. As per industry analysts, the increased focus on advertising is giving returns in the form of higher sales. According to industry estimates, SEIIT is witnessing the highest growth rate among cell-phone companies in India. Sony Ericsson, the 50:50 joint venture between Ericsson and Sony Corporation, too is increasing its reach through a tie-up with Sony India by which it will be able to retail its products at all the Sony World outlets. " The company has also lined up a range of advanced mobile handsets for launch in the country - namely the T68i (with multi-media messaging and can also be used as a camera), Z700 and P800
(a smart phone with built-in camera and organiser). Although these new launches are targeted at the high-end of the market, current range caters to all price segments ranging from Rs 6,500 to Rs 26,000. 5
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Mobile phone major Alcatel too is introducing a range of phones in the market targeted at different segments. The company is also reportedly in talks with a local Indian company for distribution. It is aggressively increasing retail presence and will increase reach by more than a 100 per cent soon. The company is launching a range of phones in different segments - the OT-311, OT-511 and OT-701 - priced between Rs 7,000 and Rs 15,000. While the first two models are targeted at new users, the OT-701 series is for "people who require to use the data functions in a phone" and the replacement market. The replacement market (i.e., the percentage of people looking to upgrade their existing phone for a newer model) too is rapidly emerging as a key target market for mobile phone companies. Motorola too has aggressive plans for the Indian market. Motorola has renewed its focus on the Indian handset market this year and will be launching a slew of handsets to address the exploding growth in the market. Towards this end, it has already launched the T-190 and the V.66 (India's first tri-band GPRS enabled handset) during the first half of the current year. Motorola will now soon be launching the V.70 (a GPRS handset with circular display and swivelling cover), a new design variation of the V.66 and finally the C330 (a small, sleek GPRS enabled handset priced between Rs 10,000-12,000) in the second half of the current year. All these handsets will debut in India straight from the recently announced Motorola global handset portfolio 2002 - clearly indicating the importance Motorola attaches to the Indian market. Also, Motorola will now have handsets catering to every price segment, with prices ranging from Rs 6,995 (for the T-190) to Rs 28,995 for the high-end Accompli A6188. The company will be conducting a number of marketing activities in the
country to support its current and forthcoming launches. Other companies looking to increase their presence include market leader Nokia and Siemens. Nokia plans to launch a new range by the middle of this year, which in turn will help the company have a wide range of products across all price 6 NLDIMSR
segments. Though the year is expected to do good for the cellular industry, analysts believe that the picture may not be so rosy when compared with growth being witnessed in other countries. Says Pankaj Mohindroo, President, Indian Cellular Association (ICA), "While sales of handsets were around 3,24,000 in India last year, China alone sold more than 50 million handsets." The reason lies in the high duties on handsets, which make them more expensive compared to those in the unorganised sector. According to ICA, actual volumes in the segment can be generated only when the duty is brought to five per cent.
ABOUT NOKIA
Nokia is the world leader in mobile communications. Nokia's history spans more than a hundred years and contains many stories, events and milestones brought about by the many twists and turns of the world history and industrialization. By 7
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adding mobility to the Internet, Nokia creates new opportunities for companies and enriches the everyday lives of people around the globe. Nokia Mobile Phones is the world's largest mobile phone producer. With its comprehensive product portfolio covering all consumer segments and cellular protocols, Nokia is in a strong position to lead industry development, based on its vision of a world where an increasing share of all personal communication occurs over personal wireless terminals such as mobile phones. As the functionality of mobile phones moves from voice-centric to include media, imaging, entertainment and business applications, whole new markets are being created and the growth opportunities are enormous. In 2002, Nokia's market share rose for the fifth consecutive year to an estimated 38%. We also shipped a record number of 33 new products for the full year. At the end of 2002, Nokia Mobile Phones represented approximately 77% of Nokia's net sales. Nokia Today Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed broadband and IP networks. By adding mobility to the Internet, Nokia creates new opportunities for companies and further enriches the daily lives of people around the globe.
Business Units Nokia comprises three business groups: Nokia Mobile Phones, Nokia Networks and Nokia Enterprise Solutions. In addition, the company includes a separate 8
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Nokia Ventures Organization and the corporate research unit, Nokia Research Center. Highlights: 3Q 2003 (all comparisons are year on year):
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Net sales declined 5% to EUR 6.9 billion (up 4% at constant currency). Nokia Mobile Phones sales were flat at EUR 5.6 billion (up 9% at constant currency). Nokia Networks sales declined 21% to EUR 1.2 billion. Nokia gains market share with 23% volume growth; industry mobile phone volume growth accelerates to 15%. Nokia third-quarter mobile phone market share grows to 39%. Company doubles share of global CDMA handset market. Excellent pro forma and reported operating margins in mobile phones at 22.4% and 22.0%. Nokia Networks achieves breakeven. Nokia announces new operating structure for 2004. Pro forma EPS (diluted) was EUR 0.18. Reported EPS (diluted) was EUR 0.17. Strong operating cash flow in the third quarter at EUR 1.2 billion.
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Problem Statement: To understand the buyer behavior characteristics of Nokia mobile Phone users. 9
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Research Objective: ? To find out the reasons for purchase of cell phones. ? To find out various factors considered while purchasing Nokia cell phone. ? To find out the importance of these factors while purchasing of the cell phone.
RESEARCH DESIGN
Research Methodology: An exploratory research was conducted in order to study the buying behavior of consumer towards purchase of Nokia cell phones. Initially secondary data was
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collected from magazines, websites and newspapers. Primary data was collected through a specially prepared questionnaire. Sampling Design: Sampling design for the purpose of research includes determination of sampling unit and sample size. Sampling Unit: Criteria for selecting respondents in a sample unit: 1. The respondent should be a user of Nokia cell phone. 2. The respondent should be above the age of fifteen years. 3. The respondent can be a business man, a student, an executive, a homemaker or occupying any other profession. Sample size: A sample of 80 respondents was taken for the purpose of this survey research. Sampling procedure: Sample has been drawn from the population comprising of respondents from Mira Road using judgmental and convenience sampling.
Secondary data: Secondary data was collected from various websites and by referring to various magazines such as Business World, India Today etc. The secondary data comprises of detailed information about the cell phone industry and its major players like Nokia, Motorola, LG, Samsung etc.
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Primary Data: Primary data was collected through self- administered Questionnaires. The Questionnaire consisted of a suitable combination of Rating Scale, Ranking scale, open ended and close ended questions. Data Collection: Data was collected through extensive field work, using self administered questionnaires in areas from Mira Road.
DATA ANALYSIS AND FINDINGS
? More than 50% of the users have been using Nokia cell phones for the past one year whereas 30% have been using it for one to three years. (Table 1).
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30% of the respondents change their handsets once a year while 24% of them change them every two years. (Table-2) Around 60% of the users of Nokia cell phones prefer purchasing from an authorized dealer while the remaining prefers purchasing from the grey market. (Table-3) The source of information for gaining knowledge of the various models of Nokia have been equally from TV, newspapers, magazines and friends with magazines leading by 30%.(Table-4) More than 60% of the users are aware of the punch line of Nokia cell phones while the remaining is not aware of the punch line. (Table-5) More than 50% of users make decisions on their own for the purchase of Nokia cell phones whereas 30% of the decisions are made by the father. (Table-6) More than 80% of the users of Nokia belong to the age group of 20 to 30 years. (Table-7)
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More than 67% of the users of Nokia cell phones were found to be students while the remaining were self employed, government or private employees. (Table-8) 70% of the users of Nokia cell phones were found to be males while the remaining females.(Table-9) 35% of user feels that brand Nokia is value for money while 25% thinks it is reliable. (Table 10) 13
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?
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Ranks were analyzed with the help of frequency count and Friedman Test (Table 11, Chart 1). Following results were obtained. Rank 1 – Mobility Rank2 – Convenience Rank 3- Privacy Rank 4 –Added benefits Rank 5 - Status More than 50% of user agrees that availability of Nokia phone in different models influences their purchase. (Table 12,Chart 2) 38% of the respondents agree that advertising plays an important role in their purchase decision whereas 13% strongly agree that advertising plays an important role in their purchase decision. 22% neither agree nor disagree with the statement. (Table 13,Chart 3) 52% of user agrees that they have prior knowledge about the model of Nokia. (Table 14, Chart 4)
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CROSSTABULATION Cross tabulation of frequency of changing handsets and models influencing buyer behaviour. (Table 15) 80% of the respondents who change their handsets once a year either agree or strongly agree that they are influenced by the availability of various models. Significance value (Chi-square test) is higher than .05 so there may not be a relationship between two variables. Cross tabulation of brand name and technology (Table 16) 14
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There is a relationship between the brand name and the technology available for Nokia mobile phones as the significance value (Chi-square test) is less than 0.05. Cross tabulation between place of buying and reasons for buying from above mentioned place (Table 17) 35% of the respondents purchase cell phones from an authorized dealer because they are more reliable, 70% feel that cell phones are cheaper in the grey market whereas 34% of the respondents purchase from an authorized dealer because of the guarantee offered. Cross tabulation between period of using Nokia phones and occupation (Table 18) 83% of the students have been using Nokia phones for the last one year, 76% have been using it for 1 to 3 years whereas 67% of the respondents who are using the cell phones for 3 to 5 years are self employed. Significance value (Chi-square test) is below .05 which shows that there is relationship between two variables.
FACTOR ANALYSIS From factor analysis it was found out that there are four major factors which is of importance to users. (Table 19, Annexure -2) Factor 1 comprises of three factors, after sales service, prompt complaint handling and dealer importance. These were grouped as Dealers service Factor 2 consists of three factors, reliability, durability and user friendliness. These were grouped as Product attributes. 15
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Factor 3 consists of three factors packaging, instruction manual and resale value. These were grouped as Extra benefits Factor 4 consists of there factors colour, shape and size and technology. These were grouped as Product features.
CONCLUSIONS
? The main reason for buying mobile phones is convenience, mobility i.e. one can be in touch irrespective of the place. Mobile phones are no longer seen as status symbol. ? Nokia cell phones are available in different models (greater variety than any buyer. ? There are four major factors which influences the purchase decision i.e. product features, dealer service, product attributes and extra benefits from the product. ? As mobile phones have become cheaper people prefer to buy them from authorized dealer rather than grey market. 16
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other cell phone) which influence the purchase decision of
Reasons for buying from authorized dealer are mainly guarantee and reliability. ? The main source of information is advertisement in magazines and T.V. The second major source is friends and relatives. Advertisement plays an important role in purchase decision. ? Nokia is a popular brand among people and awareness level is very high. Also the brand Nokia is seen as reliable and value for money. ? The frequency of changing mobile is more in case of students. This Implies that buyer in the age group of 20 – 25 changes their handset very frequently ? Brand name and technology are very much related to each other. Perception of people is that strong brand name means better technology.
LIMITATION OF THE PROJECT
? Research study was carried out only in Mira road due to constraint of time and cost. ? Sample size of 80 is very small as compared to the original population. ? Most of the questions were close ended to facilitate the research process. REFERENCES ? ? INDIA TODAY VOICE AND DATA 17
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? ? ?
BUISNESS WORLD www.Indiainfoline.com www.nokia.com
ANNEXURE -1
period of using nokia phones Frequency 47 25 3 4 79 1 9 10 89 Percent 52.8 28.1 3.4 4.5 88.8 1.1 10.1 11.2 100.0 Valid Percent 59.5 31.6 3.8 5.1 100.0 Cumulative Percent 59.5 91.1 94.9 100.0
Valid
Missing
less than 1 yr 1-3 yrs 3 - 5 yrs more than 5 yrs Total missing System Total
Total
(TABLE 1) 18
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frequency of changing mobiles Frequency 26 21 7 23 77 3 9 12 89 Percent 29.2 23.6 7.9 25.8 86.5 3.4 10.1 13.5 100.0 Valid Percent 33.8 27.3 9.1 29.9 100.0 Cumulative Percent 33.8 61.0 70.1 100.0
Valid
Missing
once a yr once in 2 yrs once in 3 yrs more than 3 yrs Total missing System Total
Total
(TABLE 2)
place of buying Frequency authorized dealer 53 grey market 27 Total 80 System 9 89
(TABLE 3)
Valid
Missing Total
Percent 59.6 30.3 89.9 10.1 100.0
Valid Percent 66.3 33.8 100.0
Cumulative Percent 66.3 100.0
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source of inforrmation Frequency 18 16 27 18 1 80 9 89 Percent 20.2 18.0 30.3 20.2 1.1 89.9 10.1 100.0 Valid Percent 22.5 20.0 33.8 22.5 1.3 100.0 Cumulative Percent 22.5 42.5 76.3 98.8 100.0
Valid
Missing Total
t.v newspaper magazines friends others Total System
(TABLE 4)
punchline of nokia Frequency 54 25 79 1 9 10 89 Percent 60.7 28.1 88.8 1.1 10.1 11.2 100.0 Valid Percent 68.4 31.6 100.0 Cumulative Percent 68.4 100.0
Valid
Missing
yes no Total missing System Total
Total
(TABLE 5)
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purchase decision Frequency 28 3 2 1 46 80 9 89 Percent 31.5 3.4 2.2 1.1 51.7 89.9 10.1 100.0 Valid Percent 35.0 3.8 2.5 1.3 57.5 100.0 Cumulative Percent 35.0 38.8 41.3 42.5 100.0
Valid
Missing Total
father mother husband wife self Total System
(TABLE 6)
age Frequency 1 73 6 80 9 89 Percent 1.1 82.0 6.7 89.9 10.1 100.0 Valid Percent 1.3 91.3 7.5 100.0 Cumulative Percent 1.3 92.5 100.0
Valid
Missing Total
15 -20 20-30 30-40 Total System
(TABLE 7)
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occupation Frequency 8 8 4 60 80 9 89 Percent 9.0 9.0 4.5 67.4 89.9 10.1 100.0 Valid Percent 10.0 10.0 5.0 75.0 100.0 Cumulative Percent 10.0 20.0 25.0 100.0
Valid
Missing Total
self employed Private govt student Total System
(TABLE 8)
gender Frequency 61 19 80 9 89 Percent 68.5 21.3 89.9 10.1 100.0 (TABLE 9) Valid Percent 76.3 23.8 100.0 Cumulative Percent 76.3 100.0
Valid
Missing Total
male female Total System
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feelin g abou t br an d n ok ia Fre q u e n c y P e r ce n t V a lid Un iq u e 14 1 5 .7 V a lu e fo r m o n e y 31 34 .8 R e lia b le 22 24 .7 S tro n g 13 1 4 .6 To ta l 80 8 9 .9 M is sin g S y ste m 9 1 0 .1 To ta l 89 1 0 0 .0
(TABLE 10)
C u m u la tiv e V a lid P e rc e n t P e rc e n t 1 7 .5 1 7 .5 38 .8 5 6 .3 27 .5 8 3.8 1 6 .3 1 0 0 .0 1 0 0 .0
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ra n k in g m o b ility ra n k in g ra n k in g ra n k in g ra n k in g
Count % c o n v e n ie n c eo u n t C % s ta tu s Count % p riv a c y Count % b e n e fits C o u n t %
ran k 1 39 4 8 .8 % 27 33.8 % 7 8 .8 % 4 5 .0 % 3 3.8 %
ra n k 2 20 25 .0 % 26 32.5 % 8 1 0 .0 % 14 1 7 .5 % 12 1 5 .0 %
ra n k 3 9 1 1 .3% 14 1 7 .5 % 13 1 6 .3% 28 35 .0 % 16 20 .0 %
ra n k 4 7 8 .8 % 10 1 2.5 % 21 26 .3% 15 1 8 .8 % 27 33.8 %
ra n k 5 5 6 .3% 3 3.8 % 31 38 .8 % 19 23.8 % 22 27 .5 %
To ta l 80 1 0 0 .0 % 80 1 0 0 .0 % 80 1 0 0 .0 % 80 1 0 0 .0 % 80 1 0 0 .0 %
(TABLE 11)
FREQUENCY COUNT OF RANK
Ranks ranking m obility ranking convenience ranking status ranking privacy ranking benefits M ean Rank 1.99 2.20 3.76 3.39 3.66
Friedman Test
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ranking convenience
ranking benefits
ranking mobility
ranking privacy
45 40 35 30 25 20 15 10 5 0
rank 1 rank 2 rank 3 ranking status rank 4 rank 5
(CHART 1) Mobility was ranked 1, convenience was ranked 2, privacy was ranked 3, benefits were ranked 4, and status was ranked 5.
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mod els in flu en cin g bu yin g beh aviou r Frequency 4 5 7 43 21 80 9 89 Percent 4.5 5.6 7.9 48.3 23.6 89.9 10.1 100.0 Cumulative Valid Percent Percent 5.0 5.0 6.3 11.3 8.8 53.8 26.3 100.0 20.0 73.8 100.0
Valid
Missing Total
strongly disagree disagree neither agree nor disagree agree strongly agree Total System
(TABLE 12)
60
50
40
30
20
Percent
10
0 Missing stro ngly disagree disagree neither agree no di r agree stro ngly agree
(CHART 2)
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impor tan ce of ad ver tisin g Cu mu lative Freq u en cy Percen t Va lid Percen t Pe rce nt Va lid stro n gly disagre e 2 2.2 2.5 2.5 d isa g re e 14 15 .7 1 7 .5 20 .0 n eith er a gree no r 19 21.3 23.8 43.8 d isa g re e a gre e 34 38.2 42.5 86 .3 stro n gly ag ree 11 1 2.4 13.8 1 00 .0 Total 80 89 .9 10 0 .0 Missing Syste m 9 10 .1 To tal 89 1 00 .0
(TABLE 13)
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im portance of advertising
50
40
30
20
Percent
10
0 stro ngly disagree disagree neither agree no di r agree stro ngly agree
(CHART 3)
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k n ow led g e of m od el C u mu la tive Fre q u e n cy Pe rce n t Va lid Pe rce n t Pe rce n t 4 4 .5 5 .0 5 .0 15 46 15 80 9 89 1 6 .9 5 1 .7 1 6 .9 8 9 .9 1 0 .1 1 0 0 .0 1 8 .8 5 7 .5 1 8 .8 1 0 0 .0 23.8 8 1 .3 1 0 0 .0
Va lid
d isa g re e n e ith e r a g re e n o r d isa g re e a g re e stro n g ly a g re e To ta l Missin g Syste m To ta l
(TABLE 14)
knowledge of model
50
40
30
20
Frequency
10
0 disagree neither agree nor di agree strongly agree
(CHART 4)
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CROSSTABS
freq u ency of ch an g in g mobiles * mod els influen cin g buyin g beh aviou r Crosstabu lation models influencin g buying behaviour neither agree disagree nor disagree agree strong ly agree 1 2 11 10 3.8% 1.3% 1 4.8% 1.3% 7.7% 2.5% 4 19.0% 5.0% 1 14 .3% 1.3% 3 of 13.0% 3.8% 1 of 33.3% 1.3% 4 of 5.0% 5.0% 5 6.3% 6.3% 7 8.8% 8.8% 42.3% 13.8% 9 42.9% 11.3% 5 71.4% 6.3% 17 73.9% 21.3% 1 33.3% 1.3% 43 53.8% 53.8% 38.5% 12.5% 6 28.6% 7.5% 1 14.3% 1.3% 3 13.0% 3.8% 1 33.3% 1.3% 21 26.3% 26.3%
frequency of once a yr changin g mo biles
Total
Count % within frequency changing mobiles % of Total once in 2 yrs Count % within frequency changing mobiles % of Total once in 3 yrs Count % within frequency changing mobiles % of Total more than 3 yrs Count % within frequency changing mobiles % of Total missing Count % within frequency changing mobiles % of Total Count % within frequency changing mobiles % of Total
strongly disagree 2 of 7.7% 2.5% 1 of 4.8% 1.3% of
Total 26 100.0% 32.5% 21 100.0% 26.3% 7 100.0% 8 .8% 23 100.0% 28 .8% 3 100.0% 3.8% 80 100.0% 100.0%
Chi-Square Tests Value 21.396 a 22.105 .992 80 df 16 16 1 Asymp. Sig. (2-sided) .164 .140 .319
Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases
a. 19 cells (76.0%) have expected count less than 5. The minimum expected count is .15.
(TABLE 15) 30
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brand name * technology Crosstabulation technology neither important nor important extremely unimportant Count 1 % within brand name 50.0% % of Total 1.3% unimportant Count 1 % within brand name 16.7% % of Total 1.3% neither important nor Count 4 important % within brand name 28.6% % of Total 5.0% important Count % within brand name % of Total Count % within brand name % of Total Count % within brand name % of Total 2 6.5% 2.5% 1 3.7% 1.3% 9 11.3% 11.3% extremely important 1 50.0% 1.3% 1 16.7% 1.3% 2 14.3% 2.5% 12 38.7% 15.0% 20 74.1% 25.0% 36 45.0% 45.0%
important
Total 2 100.0% 2.5% 6 100.0% 7.5% 14 100.0% 17.5% 31 100.0% 38.8% 27 100.0% 33.8% 80 100.0% 100.0%
brand name
4 66.7% 5.0% 8 57.1% 10.0% 17 54.8% 21.3% 6 22.2% 7.5% 35 43.8% 43.8%
extremely important
Total
Chi-Square Tests Value 23.822a 23.931 13.703 80 df 8 8 1 Asymp. Sig. (2-sided) .002 .002 .000
Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases
a. 9 cells (60.0%) have expected count less than 5. The minimum expected count is .23.
(TABLE 16)
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p lac e o f b u y in g * r eas o n fo r b u y in g fo r m en tio n ed p lac e C r o s s tab u la tio n r e a s o n fo r b u y in g fo r m e n tio n e d p la c e r e lia b le c h e a p g u r a n te e T o ta l p la c e o f a u th o r iz e d d e a C o u n t le r 19 16 18 53 b u y in g % w ith in p la c e o f b u y in35 .8 % g 30 .2% 34 .0 % 1 0 0 .0 % % o f T o ta l 23 .8 % 20 .0 % 22.5 % 6 6 .3% g re y m a rke t C o u n t 5 19 3 27 % w ith in p la c e o f b u y in1g8 .5 % 7 0 .4 % 1 1 .1 % 1 0 0 .0 % % o f T o ta l 6 .3% 23.8 % 3.8 % 33.8 % T o ta l Count 24 35 21 80 % w ith in p la c e o f b u y in30 .0 % g 4 3.8 % 26 .3% 1 0 0 .0 % % o f T o ta l 30 .0 % 4 3.8 % 26 .3% 1 0 0 .0 %
(TABLE 17)
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period of u s in g n okia ph on es * occu pation Cr os stabu lation o ccupation Private go vt 5 10.6% 6 .3% 2 8.0% 2.5% 2 8.0% 2.5% 1 33.3% 1.3% 1 25.0% 7 8.9% 8.9% 1.3% 4 5.1% 5.1% 2 50 .0% 2.5% 60 75 .9% 75 .9%
perio d of less th an 1 yr using nokia phon es
Total
Count % w ithin pe riod of using n okia phones % of To tal 1-3 yrs Count % w ithin pe riod of using n okia phones % of To tal 3 - 5 yrs Count % w ithin pe riod of using n okia phones % of To tal mo re than 5 yrs Count % w ithin pe riod of using n okia phones % of To tal Count % w ithin pe riod of using n okia phones % of To tal
self employe d 3 6 .4 % 3.8 % 2 8 .0 % 2.5 % 2 66.7% 2.5 % 1 25.0 % 1 .3% 8 10.1% 10.1%
studen t 39 83.0% 49 .4% 19 76 .0% 24 .1%
To tal 47 100 .0% 59 .5% 25 100 .0% 31.6% 3 100 .0% 3.8% 4 100 .0% 5.1 % 79 100 .0% 100 .0%
Chi-S quare Tests Value 25.535a 21.103 4.414 79 df 9 9 1 Asymp. Sig. (2-sided) .002 .012 .036
Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases
a. 14 cells (87.5%) have expected count less than 5. The minimum expected count is .15.
(TABLE 18)
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ANNEXURE – 2
FACTOR ANALYSIS
Scree Plot
5
4
3
2
Eigenvalue
1
0 1 3 5 7 9 11 13 15 17 19 21
Factor Num ber
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Rotated Factor Matrix
a
Factor after sales importance prompt complaint handling dealer importance battery life importance of advertising durability reliability user friendliness warranty packaging instruction manual reasle value value for money instalmenr plan knowledge of model colour size and shape technology display importance brand name models influencing buying behaviour 1 .871 .732 .575 2 3 4
.781 .736 .570 .835 .560 .528
.740 .577 .530
Extraction Method: Principal Axis Factoring. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 7 iterations.
(TABLE 19)
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ANNEXURE – 3
Resp. no.
QUESTIONNAIRE
1. Do you use Nokia cell phone? Yes No
2. How long you have been using the Nokia handset? Less than 1 yr 1-3 yr s 3-5 yrs More than 5 yrs
3. How frequently do you change your handset? Once a yr Once in 2yrs Once in 3 yr s More than 3 yrs
4. Please rank the following factors (1 highest to 5 lowest) that make you a buy a mobile phone. Mobility Convenience Status Privacy Extra services/benefits
5. The availability of Nokia cell phone in various model influence your buying process? Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree
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6. How important are the following parameters of Nokia cell phone that affect your buying Decision? (A) PRODUCT PERFORMANCE Ext.unimportant Unimp. Somewhat imp imp . (1) Reliability (2) Durability (3) User friendliness (B) PRODUCT FEATURES Ext.unimp. imp (1) Shape & size (2) Colour (3) Display screen (4) Battery life (C) CUSTOMER SERVICE Ext unimp. imp (1) Dealers knowledge and behaviour (2) After sales service (3) Prompt Complaint handling (4) Warranty Unimp. Somewhat imp Imp. Ext. Unimp. Somewhat imp imp. Ext. imp Ext.
(D) COMMERCIAL. SERVICE 37
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Extunimp. imp (1) Resale value (2) Value for money (3) Installment Plan (E) MISC. SERVICE Extunimp. imp (1) Brand name (2) Technology (3) Instruction Manual (4) Packaging
Unimp. Somewhat imp
Imp. Ext.
Unimp.
Somewhat imp
Imp.
Ext.
7. What is your preferred place of buying a Nokia cell phone? Authorized dealers Grey market
8. Please state the reason for buying Nokia phone from above mentioned place.
9. Please specify the source of information for Nokia cell phone. T.V Newspaper Magazines Friends Others,
please specify 10. Advertisements play an important role in your purchase decision. Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree
11. You have perfect knowledge about the model (Nokia) you are buying 38
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Strongly disagree
Disagree
Neither agree nor disagree Agree
Strongly agree
12. Who makes the final decision to purchase? Father Mother Husband Wife Other, specify
13. Name 3 models (number) of Nokia cell phone according to your preference. 1. 2. 3.
14. Do you know the punch line of Nokia phone? Yes No 15. What do you feel about the brand Nokia? 16. Age 15 - 20 17. Occupation Self employed 18. Gender Male Female Private Govt. Student Others,specify 20 – 30 30 – 40 above 40
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doc_306890155.doc
India's fast-growing mobile phone industry kept up its pace of heady growth in January with subscriber base jumping nearly 75 percent over the same month last year, data released by an industry body showed. Figures from the Cellular Operators Association of India showed that the industry had 5.725 million subscribers, up from 3.27 million at the end of January 2001 and 5.48 million subscribers at the end of 2001. The data showed that the industry added 246,281 users in January, led by the four main city markets of Bombay, New Delhi, Madras and Calcutta, which together added 93,070 customers. This was three percent less than the number of customers added in the previous month, but up 48 percent over January 2001 levels. India has emerged as the second-largest market after China for mobile-phone handsets. There are now nearly 25m mobile-phone subscribers, with GSM cellular by more than 11m in the six months to October 2003 including cellular mobile subscribers and WLL subscribers providers accounting for around 19.3m phones and rival wireless-in-local loop (WLL) or “limited mobility” operators having about 5.3m customers. The mobile subscriber base grew. In October alone, 1.1m cellular subscribers and 627,000 WLL subscribers were added. The cellular mobile market is expected to surge to 22m subscribers by the end of the year and to over 50m by 2005. According to Morgan Stanley, a US investment bank, the cellular mobile market is expected to grow at a compound average growth rate (CAGR) of 39.8% until 2007. It is estimated that the handset market will cross the $3.3-billion mark this year. Of this, $1.8 billion will flow from the GSM segment, while $1.3 billion will come from the CDMA players
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SHRINKING GREY MARKET Until last year, because of high prices and high customs duty, there was a huge grey market for handsets and it was difficult to assess the true size of the market-it is estimated that only 30% of the handsets sold were legally purchased from branded manufacturers. Now with drastic reductions in prices and customs duty rates, and customers realising the need for a legal and guaranteed handset--all mobile-phone users must file income tax returns--80% of the phones sold are legitimate. Earlier, the price difference for a handset in the grey and organised market was anywhere between 30 and 40 per cent. With the reduction in duties, this difference has now fallen to between 20 per cent and 30 per cent. The explosive growth was sparked by the entry of Reliance, India’s largest privatesector company, into the mobile market with low-priced limited-mobility services using CDMA technology. Reliance Infocomm has emerged as the largest mobile phone operator within six months of the launch of its CDMA service. It now has a subscriber base of 5.38m (as of the end of October), including both CDMA and GSM connections. It leads Bharti (4.86m) and BSNL (4.52m). LG and Samsung have reaped the benefits of the growth in the CDMA market--Reliance initially sourced all of its handsets from the two South Korean suppliers. At one point demand was so great that to avoid disappointing customers a plane had to be chartered, packed with handsets and flown to India. Reliance now also sources from others such as Kyocera and Nokia. Tata Indicom, another limited-mobility operator, last month announced the launch of handsets with two-colour monitors from Kyocera, available for an upfront payment of Rs999 (US$22) and the rest in 24 monthly instalments of Rs299
NEW ENTRANTS 2
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Most new entrants are starting with multiple models, many aimed at the high end of the market. BenQ has launched two models--the M550G priced at Rs5,450 (US$120) and the S830C priced at Rs12,450. Bird International of China has launched four handset models in India--the S288 priced at Rs5,999, the V10 priced at Rs12,999, the crystal-studded SCO4 model for women, which allows multimedia messaging and general packet radio switching and costs Rs14,999, and the SII 60, an entry-level phone with a virtual dual screen and polyphonic ring tones. The company will launch a PDA model carrying voice, data and camera later this year, priced in the Rs15,000-20,000 range. Bird has a distribution and related agreement with Agrani Convergence (ACL), an Essel group company. ACL has 50 stores in the country selling telecoms and IT products. Bird expects to sell around 35,000 units in India before the end of this financial year and 200,000-300,000 units in 2004. Meanwhile, DBTEL of Taiwan has announced that it will launch over ten GSM models in the Indian market by this month. DBTEL, which has been studying the Indian market for the past year, says it will launch its handsets at a “competitive price”. DBTEL’s range will cover the entire spectrum of low-end, medium and topline products to address all segments of the growing Indian cellular handset market. The company has appointed Chennai-based Munoth Communication as its distributor in India. LG Electronics, which is the market leader in CDMA handsets, has made a delayed entry into GSM phones. This October it launched two models in the highend segment priced at Rs13,490 and Rs18,990. The company believes that the mid- to high-priced segment forms 35% of the market and is growing at a faster rate in value terms than the lower end of the market. LG will launch four more models in December and increase its portfolio to 12 by next year. The company is hoping to sell 400,000 GSM handsets in the next calendar year.
NEW MODELS While many new entrants seem to be heading for the high end of the market, the 3 NLDIMSR
trend among experienced players seems to be a move towards the low end. Indeed, the explosive growth of the mobile market is being fuelled by rapidly falling handset prices, and several manufacturers have launched models for less than Rs5,000. It is estimated that this segment accounts for 60% of the mobile market. Nokia, which believes that there will be 100m handsets within three or four years, is focusing on reducing its prices to capture a bigger market share. As part of this strategy Nokia in September unveiled two entry-level models, the Nokia 1100 and Nokia 2300, which will be available at the retail level in the fourth quarter of this year. The Nokia 2300 phone will target the youth market, while the 1100 will be targeted at adults who want only the most basic functions. Alcatel, which is re-entering the GSM mobile market and wants to make a splash, has launched one of its cheapest handsets--the One Touch 320 model. It has been bundled with an Airtel post-paid mobile connection and free Videocon Walkman, all for Rs3,489. Only Motorola has a cheaper handset at Rs3,300. The Motorola C200 is available bundled with an Airtel pre-paid card for Rs3,650. In September Motorola launched two new handsets, the E365 and V295. Siemens has also launched a sub-Rs5,000 phone. The A50, A52, A55 series of entry-level phones have been fitted with lithium batteries. Siemens has also introduced high-end phones ranging in price from Rs10,000 to Rs24,000. It has tied up with Tech Pacific to distribute its phones. Sony Ericsson, which considers India one of its key markets, has introduced four new models. The entry level T105 at Rs5,000 has been developed specifically for the Asia-Pacific mass market. The T230, priced at around Rs10,000, has a colour screen, polyphonic ring-tone and mobile game player. The Z200, priced at around Rs15,000, has a colour screen and 40-tone polyphonic sound. The high-end Z600
has a built-in camera and is priced at around Rs20,000. MAJOR PLAYERS 4
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The Indian cellular market has much potential as penetration levels are low and the growth in cellular connections has been encouraging so far. In fact, as per the latest figures released by the Cellular Operators Association of India (COAI), the number of all-India cellular subscribers has increased by 80 per cent from 35.77 lakh in March 2001 to 64.30 lakh in March 2002. Future market estimates by various analysts (Yankee Group - 38.9 million by 2005 and Salmon Smith Barney 45.9 million by 2005) estimates the Indian cellular subscriber base by 2005 will be between 36 million and 50 million approximately. Samsung Electronics India Information and Telecommunication Ltd (SEIIT), the 100 per cent Indian subsidiary of Samsung Electronics Co Korea, has drawn up an aggressive retail strategy to corner a share of the market and is planning to invest over $1 million in setting up a chain of exclusive outlets called `Samsung Talkies'. The entire Samsung mobile range including the latest handsets will be displayed at the outlets, which will be set up in more than 10 cities across India, including Bangalore, Mumbai and Hyderabad. Meanwhile, the company has been the most aggressive in terms of marketing and advertising as compared to other cell-phone companies. As per industry analysts, the increased focus on advertising is giving returns in the form of higher sales. According to industry estimates, SEIIT is witnessing the highest growth rate among cell-phone companies in India. Sony Ericsson, the 50:50 joint venture between Ericsson and Sony Corporation, too is increasing its reach through a tie-up with Sony India by which it will be able to retail its products at all the Sony World outlets. " The company has also lined up a range of advanced mobile handsets for launch in the country - namely the T68i (with multi-media messaging and can also be used as a camera), Z700 and P800
(a smart phone with built-in camera and organiser). Although these new launches are targeted at the high-end of the market, current range caters to all price segments ranging from Rs 6,500 to Rs 26,000. 5
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Mobile phone major Alcatel too is introducing a range of phones in the market targeted at different segments. The company is also reportedly in talks with a local Indian company for distribution. It is aggressively increasing retail presence and will increase reach by more than a 100 per cent soon. The company is launching a range of phones in different segments - the OT-311, OT-511 and OT-701 - priced between Rs 7,000 and Rs 15,000. While the first two models are targeted at new users, the OT-701 series is for "people who require to use the data functions in a phone" and the replacement market. The replacement market (i.e., the percentage of people looking to upgrade their existing phone for a newer model) too is rapidly emerging as a key target market for mobile phone companies. Motorola too has aggressive plans for the Indian market. Motorola has renewed its focus on the Indian handset market this year and will be launching a slew of handsets to address the exploding growth in the market. Towards this end, it has already launched the T-190 and the V.66 (India's first tri-band GPRS enabled handset) during the first half of the current year. Motorola will now soon be launching the V.70 (a GPRS handset with circular display and swivelling cover), a new design variation of the V.66 and finally the C330 (a small, sleek GPRS enabled handset priced between Rs 10,000-12,000) in the second half of the current year. All these handsets will debut in India straight from the recently announced Motorola global handset portfolio 2002 - clearly indicating the importance Motorola attaches to the Indian market. Also, Motorola will now have handsets catering to every price segment, with prices ranging from Rs 6,995 (for the T-190) to Rs 28,995 for the high-end Accompli A6188. The company will be conducting a number of marketing activities in the
country to support its current and forthcoming launches. Other companies looking to increase their presence include market leader Nokia and Siemens. Nokia plans to launch a new range by the middle of this year, which in turn will help the company have a wide range of products across all price 6 NLDIMSR
segments. Though the year is expected to do good for the cellular industry, analysts believe that the picture may not be so rosy when compared with growth being witnessed in other countries. Says Pankaj Mohindroo, President, Indian Cellular Association (ICA), "While sales of handsets were around 3,24,000 in India last year, China alone sold more than 50 million handsets." The reason lies in the high duties on handsets, which make them more expensive compared to those in the unorganised sector. According to ICA, actual volumes in the segment can be generated only when the duty is brought to five per cent.
ABOUT NOKIA
Nokia is the world leader in mobile communications. Nokia's history spans more than a hundred years and contains many stories, events and milestones brought about by the many twists and turns of the world history and industrialization. By 7
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adding mobility to the Internet, Nokia creates new opportunities for companies and enriches the everyday lives of people around the globe. Nokia Mobile Phones is the world's largest mobile phone producer. With its comprehensive product portfolio covering all consumer segments and cellular protocols, Nokia is in a strong position to lead industry development, based on its vision of a world where an increasing share of all personal communication occurs over personal wireless terminals such as mobile phones. As the functionality of mobile phones moves from voice-centric to include media, imaging, entertainment and business applications, whole new markets are being created and the growth opportunities are enormous. In 2002, Nokia's market share rose for the fifth consecutive year to an estimated 38%. We also shipped a record number of 33 new products for the full year. At the end of 2002, Nokia Mobile Phones represented approximately 77% of Nokia's net sales. Nokia Today Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed broadband and IP networks. By adding mobility to the Internet, Nokia creates new opportunities for companies and further enriches the daily lives of people around the globe.
Business Units Nokia comprises three business groups: Nokia Mobile Phones, Nokia Networks and Nokia Enterprise Solutions. In addition, the company includes a separate 8
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Nokia Ventures Organization and the corporate research unit, Nokia Research Center. Highlights: 3Q 2003 (all comparisons are year on year):
• •
Net sales declined 5% to EUR 6.9 billion (up 4% at constant currency). Nokia Mobile Phones sales were flat at EUR 5.6 billion (up 9% at constant currency). Nokia Networks sales declined 21% to EUR 1.2 billion. Nokia gains market share with 23% volume growth; industry mobile phone volume growth accelerates to 15%. Nokia third-quarter mobile phone market share grows to 39%. Company doubles share of global CDMA handset market. Excellent pro forma and reported operating margins in mobile phones at 22.4% and 22.0%. Nokia Networks achieves breakeven. Nokia announces new operating structure for 2004. Pro forma EPS (diluted) was EUR 0.18. Reported EPS (diluted) was EUR 0.17. Strong operating cash flow in the third quarter at EUR 1.2 billion.
• •
• • •
• • •
•
Problem Statement: To understand the buyer behavior characteristics of Nokia mobile Phone users. 9
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Research Objective: ? To find out the reasons for purchase of cell phones. ? To find out various factors considered while purchasing Nokia cell phone. ? To find out the importance of these factors while purchasing of the cell phone.
RESEARCH DESIGN
Research Methodology: An exploratory research was conducted in order to study the buying behavior of consumer towards purchase of Nokia cell phones. Initially secondary data was
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collected from magazines, websites and newspapers. Primary data was collected through a specially prepared questionnaire. Sampling Design: Sampling design for the purpose of research includes determination of sampling unit and sample size. Sampling Unit: Criteria for selecting respondents in a sample unit: 1. The respondent should be a user of Nokia cell phone. 2. The respondent should be above the age of fifteen years. 3. The respondent can be a business man, a student, an executive, a homemaker or occupying any other profession. Sample size: A sample of 80 respondents was taken for the purpose of this survey research. Sampling procedure: Sample has been drawn from the population comprising of respondents from Mira Road using judgmental and convenience sampling.
Secondary data: Secondary data was collected from various websites and by referring to various magazines such as Business World, India Today etc. The secondary data comprises of detailed information about the cell phone industry and its major players like Nokia, Motorola, LG, Samsung etc.
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Primary Data: Primary data was collected through self- administered Questionnaires. The Questionnaire consisted of a suitable combination of Rating Scale, Ranking scale, open ended and close ended questions. Data Collection: Data was collected through extensive field work, using self administered questionnaires in areas from Mira Road.
DATA ANALYSIS AND FINDINGS
? More than 50% of the users have been using Nokia cell phones for the past one year whereas 30% have been using it for one to three years. (Table 1).
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?
30% of the respondents change their handsets once a year while 24% of them change them every two years. (Table-2) Around 60% of the users of Nokia cell phones prefer purchasing from an authorized dealer while the remaining prefers purchasing from the grey market. (Table-3) The source of information for gaining knowledge of the various models of Nokia have been equally from TV, newspapers, magazines and friends with magazines leading by 30%.(Table-4) More than 60% of the users are aware of the punch line of Nokia cell phones while the remaining is not aware of the punch line. (Table-5) More than 50% of users make decisions on their own for the purchase of Nokia cell phones whereas 30% of the decisions are made by the father. (Table-6) More than 80% of the users of Nokia belong to the age group of 20 to 30 years. (Table-7)
?
?
?
?
?
?
More than 67% of the users of Nokia cell phones were found to be students while the remaining were self employed, government or private employees. (Table-8) 70% of the users of Nokia cell phones were found to be males while the remaining females.(Table-9) 35% of user feels that brand Nokia is value for money while 25% thinks it is reliable. (Table 10) 13
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?
?
?
Ranks were analyzed with the help of frequency count and Friedman Test (Table 11, Chart 1). Following results were obtained. Rank 1 – Mobility Rank2 – Convenience Rank 3- Privacy Rank 4 –Added benefits Rank 5 - Status More than 50% of user agrees that availability of Nokia phone in different models influences their purchase. (Table 12,Chart 2) 38% of the respondents agree that advertising plays an important role in their purchase decision whereas 13% strongly agree that advertising plays an important role in their purchase decision. 22% neither agree nor disagree with the statement. (Table 13,Chart 3) 52% of user agrees that they have prior knowledge about the model of Nokia. (Table 14, Chart 4)
?
?
?
CROSSTABULATION Cross tabulation of frequency of changing handsets and models influencing buyer behaviour. (Table 15) 80% of the respondents who change their handsets once a year either agree or strongly agree that they are influenced by the availability of various models. Significance value (Chi-square test) is higher than .05 so there may not be a relationship between two variables. Cross tabulation of brand name and technology (Table 16) 14
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There is a relationship between the brand name and the technology available for Nokia mobile phones as the significance value (Chi-square test) is less than 0.05. Cross tabulation between place of buying and reasons for buying from above mentioned place (Table 17) 35% of the respondents purchase cell phones from an authorized dealer because they are more reliable, 70% feel that cell phones are cheaper in the grey market whereas 34% of the respondents purchase from an authorized dealer because of the guarantee offered. Cross tabulation between period of using Nokia phones and occupation (Table 18) 83% of the students have been using Nokia phones for the last one year, 76% have been using it for 1 to 3 years whereas 67% of the respondents who are using the cell phones for 3 to 5 years are self employed. Significance value (Chi-square test) is below .05 which shows that there is relationship between two variables.
FACTOR ANALYSIS From factor analysis it was found out that there are four major factors which is of importance to users. (Table 19, Annexure -2) Factor 1 comprises of three factors, after sales service, prompt complaint handling and dealer importance. These were grouped as Dealers service Factor 2 consists of three factors, reliability, durability and user friendliness. These were grouped as Product attributes. 15
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Factor 3 consists of three factors packaging, instruction manual and resale value. These were grouped as Extra benefits Factor 4 consists of there factors colour, shape and size and technology. These were grouped as Product features.
CONCLUSIONS
? The main reason for buying mobile phones is convenience, mobility i.e. one can be in touch irrespective of the place. Mobile phones are no longer seen as status symbol. ? Nokia cell phones are available in different models (greater variety than any buyer. ? There are four major factors which influences the purchase decision i.e. product features, dealer service, product attributes and extra benefits from the product. ? As mobile phones have become cheaper people prefer to buy them from authorized dealer rather than grey market. 16
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other cell phone) which influence the purchase decision of
Reasons for buying from authorized dealer are mainly guarantee and reliability. ? The main source of information is advertisement in magazines and T.V. The second major source is friends and relatives. Advertisement plays an important role in purchase decision. ? Nokia is a popular brand among people and awareness level is very high. Also the brand Nokia is seen as reliable and value for money. ? The frequency of changing mobile is more in case of students. This Implies that buyer in the age group of 20 – 25 changes their handset very frequently ? Brand name and technology are very much related to each other. Perception of people is that strong brand name means better technology.
LIMITATION OF THE PROJECT
? Research study was carried out only in Mira road due to constraint of time and cost. ? Sample size of 80 is very small as compared to the original population. ? Most of the questions were close ended to facilitate the research process. REFERENCES ? ? INDIA TODAY VOICE AND DATA 17
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? ? ?
BUISNESS WORLD www.Indiainfoline.com www.nokia.com
ANNEXURE -1
period of using nokia phones Frequency 47 25 3 4 79 1 9 10 89 Percent 52.8 28.1 3.4 4.5 88.8 1.1 10.1 11.2 100.0 Valid Percent 59.5 31.6 3.8 5.1 100.0 Cumulative Percent 59.5 91.1 94.9 100.0
Valid
Missing
less than 1 yr 1-3 yrs 3 - 5 yrs more than 5 yrs Total missing System Total
Total
(TABLE 1) 18
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frequency of changing mobiles Frequency 26 21 7 23 77 3 9 12 89 Percent 29.2 23.6 7.9 25.8 86.5 3.4 10.1 13.5 100.0 Valid Percent 33.8 27.3 9.1 29.9 100.0 Cumulative Percent 33.8 61.0 70.1 100.0
Valid
Missing
once a yr once in 2 yrs once in 3 yrs more than 3 yrs Total missing System Total
Total
(TABLE 2)
place of buying Frequency authorized dealer 53 grey market 27 Total 80 System 9 89
(TABLE 3)
Valid
Missing Total
Percent 59.6 30.3 89.9 10.1 100.0
Valid Percent 66.3 33.8 100.0
Cumulative Percent 66.3 100.0
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source of inforrmation Frequency 18 16 27 18 1 80 9 89 Percent 20.2 18.0 30.3 20.2 1.1 89.9 10.1 100.0 Valid Percent 22.5 20.0 33.8 22.5 1.3 100.0 Cumulative Percent 22.5 42.5 76.3 98.8 100.0
Valid
Missing Total
t.v newspaper magazines friends others Total System
(TABLE 4)
punchline of nokia Frequency 54 25 79 1 9 10 89 Percent 60.7 28.1 88.8 1.1 10.1 11.2 100.0 Valid Percent 68.4 31.6 100.0 Cumulative Percent 68.4 100.0
Valid
Missing
yes no Total missing System Total
Total
(TABLE 5)
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purchase decision Frequency 28 3 2 1 46 80 9 89 Percent 31.5 3.4 2.2 1.1 51.7 89.9 10.1 100.0 Valid Percent 35.0 3.8 2.5 1.3 57.5 100.0 Cumulative Percent 35.0 38.8 41.3 42.5 100.0
Valid
Missing Total
father mother husband wife self Total System
(TABLE 6)
age Frequency 1 73 6 80 9 89 Percent 1.1 82.0 6.7 89.9 10.1 100.0 Valid Percent 1.3 91.3 7.5 100.0 Cumulative Percent 1.3 92.5 100.0
Valid
Missing Total
15 -20 20-30 30-40 Total System
(TABLE 7)
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occupation Frequency 8 8 4 60 80 9 89 Percent 9.0 9.0 4.5 67.4 89.9 10.1 100.0 Valid Percent 10.0 10.0 5.0 75.0 100.0 Cumulative Percent 10.0 20.0 25.0 100.0
Valid
Missing Total
self employed Private govt student Total System
(TABLE 8)
gender Frequency 61 19 80 9 89 Percent 68.5 21.3 89.9 10.1 100.0 (TABLE 9) Valid Percent 76.3 23.8 100.0 Cumulative Percent 76.3 100.0
Valid
Missing Total
male female Total System
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feelin g abou t br an d n ok ia Fre q u e n c y P e r ce n t V a lid Un iq u e 14 1 5 .7 V a lu e fo r m o n e y 31 34 .8 R e lia b le 22 24 .7 S tro n g 13 1 4 .6 To ta l 80 8 9 .9 M is sin g S y ste m 9 1 0 .1 To ta l 89 1 0 0 .0
(TABLE 10)
C u m u la tiv e V a lid P e rc e n t P e rc e n t 1 7 .5 1 7 .5 38 .8 5 6 .3 27 .5 8 3.8 1 6 .3 1 0 0 .0 1 0 0 .0
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ra n k in g m o b ility ra n k in g ra n k in g ra n k in g ra n k in g
Count % c o n v e n ie n c eo u n t C % s ta tu s Count % p riv a c y Count % b e n e fits C o u n t %
ran k 1 39 4 8 .8 % 27 33.8 % 7 8 .8 % 4 5 .0 % 3 3.8 %
ra n k 2 20 25 .0 % 26 32.5 % 8 1 0 .0 % 14 1 7 .5 % 12 1 5 .0 %
ra n k 3 9 1 1 .3% 14 1 7 .5 % 13 1 6 .3% 28 35 .0 % 16 20 .0 %
ra n k 4 7 8 .8 % 10 1 2.5 % 21 26 .3% 15 1 8 .8 % 27 33.8 %
ra n k 5 5 6 .3% 3 3.8 % 31 38 .8 % 19 23.8 % 22 27 .5 %
To ta l 80 1 0 0 .0 % 80 1 0 0 .0 % 80 1 0 0 .0 % 80 1 0 0 .0 % 80 1 0 0 .0 %
(TABLE 11)
FREQUENCY COUNT OF RANK
Ranks ranking m obility ranking convenience ranking status ranking privacy ranking benefits M ean Rank 1.99 2.20 3.76 3.39 3.66
Friedman Test
24
NLDIMSR
ranking convenience
ranking benefits
ranking mobility
ranking privacy
45 40 35 30 25 20 15 10 5 0
rank 1 rank 2 rank 3 ranking status rank 4 rank 5
(CHART 1) Mobility was ranked 1, convenience was ranked 2, privacy was ranked 3, benefits were ranked 4, and status was ranked 5.
25
NLDIMSR
mod els in flu en cin g bu yin g beh aviou r Frequency 4 5 7 43 21 80 9 89 Percent 4.5 5.6 7.9 48.3 23.6 89.9 10.1 100.0 Cumulative Valid Percent Percent 5.0 5.0 6.3 11.3 8.8 53.8 26.3 100.0 20.0 73.8 100.0
Valid
Missing Total
strongly disagree disagree neither agree nor disagree agree strongly agree Total System
(TABLE 12)
60
50
40
30
20
Percent
10
0 Missing stro ngly disagree disagree neither agree no di r agree stro ngly agree
(CHART 2)
26
NLDIMSR
impor tan ce of ad ver tisin g Cu mu lative Freq u en cy Percen t Va lid Percen t Pe rce nt Va lid stro n gly disagre e 2 2.2 2.5 2.5 d isa g re e 14 15 .7 1 7 .5 20 .0 n eith er a gree no r 19 21.3 23.8 43.8 d isa g re e a gre e 34 38.2 42.5 86 .3 stro n gly ag ree 11 1 2.4 13.8 1 00 .0 Total 80 89 .9 10 0 .0 Missing Syste m 9 10 .1 To tal 89 1 00 .0
(TABLE 13)
27
NLDIMSR
im portance of advertising
50
40
30
20
Percent
10
0 stro ngly disagree disagree neither agree no di r agree stro ngly agree
(CHART 3)
28
NLDIMSR
k n ow led g e of m od el C u mu la tive Fre q u e n cy Pe rce n t Va lid Pe rce n t Pe rce n t 4 4 .5 5 .0 5 .0 15 46 15 80 9 89 1 6 .9 5 1 .7 1 6 .9 8 9 .9 1 0 .1 1 0 0 .0 1 8 .8 5 7 .5 1 8 .8 1 0 0 .0 23.8 8 1 .3 1 0 0 .0
Va lid
d isa g re e n e ith e r a g re e n o r d isa g re e a g re e stro n g ly a g re e To ta l Missin g Syste m To ta l
(TABLE 14)
knowledge of model
50
40
30
20
Frequency
10
0 disagree neither agree nor di agree strongly agree
(CHART 4)
29
NLDIMSR
CROSSTABS
freq u ency of ch an g in g mobiles * mod els influen cin g buyin g beh aviou r Crosstabu lation models influencin g buying behaviour neither agree disagree nor disagree agree strong ly agree 1 2 11 10 3.8% 1.3% 1 4.8% 1.3% 7.7% 2.5% 4 19.0% 5.0% 1 14 .3% 1.3% 3 of 13.0% 3.8% 1 of 33.3% 1.3% 4 of 5.0% 5.0% 5 6.3% 6.3% 7 8.8% 8.8% 42.3% 13.8% 9 42.9% 11.3% 5 71.4% 6.3% 17 73.9% 21.3% 1 33.3% 1.3% 43 53.8% 53.8% 38.5% 12.5% 6 28.6% 7.5% 1 14.3% 1.3% 3 13.0% 3.8% 1 33.3% 1.3% 21 26.3% 26.3%
frequency of once a yr changin g mo biles
Total
Count % within frequency changing mobiles % of Total once in 2 yrs Count % within frequency changing mobiles % of Total once in 3 yrs Count % within frequency changing mobiles % of Total more than 3 yrs Count % within frequency changing mobiles % of Total missing Count % within frequency changing mobiles % of Total Count % within frequency changing mobiles % of Total
strongly disagree 2 of 7.7% 2.5% 1 of 4.8% 1.3% of
Total 26 100.0% 32.5% 21 100.0% 26.3% 7 100.0% 8 .8% 23 100.0% 28 .8% 3 100.0% 3.8% 80 100.0% 100.0%
Chi-Square Tests Value 21.396 a 22.105 .992 80 df 16 16 1 Asymp. Sig. (2-sided) .164 .140 .319
Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases
a. 19 cells (76.0%) have expected count less than 5. The minimum expected count is .15.
(TABLE 15) 30
NLDIMSR
brand name * technology Crosstabulation technology neither important nor important extremely unimportant Count 1 % within brand name 50.0% % of Total 1.3% unimportant Count 1 % within brand name 16.7% % of Total 1.3% neither important nor Count 4 important % within brand name 28.6% % of Total 5.0% important Count % within brand name % of Total Count % within brand name % of Total Count % within brand name % of Total 2 6.5% 2.5% 1 3.7% 1.3% 9 11.3% 11.3% extremely important 1 50.0% 1.3% 1 16.7% 1.3% 2 14.3% 2.5% 12 38.7% 15.0% 20 74.1% 25.0% 36 45.0% 45.0%
important
Total 2 100.0% 2.5% 6 100.0% 7.5% 14 100.0% 17.5% 31 100.0% 38.8% 27 100.0% 33.8% 80 100.0% 100.0%
brand name
4 66.7% 5.0% 8 57.1% 10.0% 17 54.8% 21.3% 6 22.2% 7.5% 35 43.8% 43.8%
extremely important
Total
Chi-Square Tests Value 23.822a 23.931 13.703 80 df 8 8 1 Asymp. Sig. (2-sided) .002 .002 .000
Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases
a. 9 cells (60.0%) have expected count less than 5. The minimum expected count is .23.
(TABLE 16)
31
NLDIMSR
p lac e o f b u y in g * r eas o n fo r b u y in g fo r m en tio n ed p lac e C r o s s tab u la tio n r e a s o n fo r b u y in g fo r m e n tio n e d p la c e r e lia b le c h e a p g u r a n te e T o ta l p la c e o f a u th o r iz e d d e a C o u n t le r 19 16 18 53 b u y in g % w ith in p la c e o f b u y in35 .8 % g 30 .2% 34 .0 % 1 0 0 .0 % % o f T o ta l 23 .8 % 20 .0 % 22.5 % 6 6 .3% g re y m a rke t C o u n t 5 19 3 27 % w ith in p la c e o f b u y in1g8 .5 % 7 0 .4 % 1 1 .1 % 1 0 0 .0 % % o f T o ta l 6 .3% 23.8 % 3.8 % 33.8 % T o ta l Count 24 35 21 80 % w ith in p la c e o f b u y in30 .0 % g 4 3.8 % 26 .3% 1 0 0 .0 % % o f T o ta l 30 .0 % 4 3.8 % 26 .3% 1 0 0 .0 %
(TABLE 17)
32
NLDIMSR
period of u s in g n okia ph on es * occu pation Cr os stabu lation o ccupation Private go vt 5 10.6% 6 .3% 2 8.0% 2.5% 2 8.0% 2.5% 1 33.3% 1.3% 1 25.0% 7 8.9% 8.9% 1.3% 4 5.1% 5.1% 2 50 .0% 2.5% 60 75 .9% 75 .9%
perio d of less th an 1 yr using nokia phon es
Total
Count % w ithin pe riod of using n okia phones % of To tal 1-3 yrs Count % w ithin pe riod of using n okia phones % of To tal 3 - 5 yrs Count % w ithin pe riod of using n okia phones % of To tal mo re than 5 yrs Count % w ithin pe riod of using n okia phones % of To tal Count % w ithin pe riod of using n okia phones % of To tal
self employe d 3 6 .4 % 3.8 % 2 8 .0 % 2.5 % 2 66.7% 2.5 % 1 25.0 % 1 .3% 8 10.1% 10.1%
studen t 39 83.0% 49 .4% 19 76 .0% 24 .1%
To tal 47 100 .0% 59 .5% 25 100 .0% 31.6% 3 100 .0% 3.8% 4 100 .0% 5.1 % 79 100 .0% 100 .0%
Chi-S quare Tests Value 25.535a 21.103 4.414 79 df 9 9 1 Asymp. Sig. (2-sided) .002 .012 .036
Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases
a. 14 cells (87.5%) have expected count less than 5. The minimum expected count is .15.
(TABLE 18)
33
NLDIMSR
ANNEXURE – 2
FACTOR ANALYSIS
Scree Plot
5
4
3
2
Eigenvalue
1
0 1 3 5 7 9 11 13 15 17 19 21
Factor Num ber
34
NLDIMSR
Rotated Factor Matrix
a
Factor after sales importance prompt complaint handling dealer importance battery life importance of advertising durability reliability user friendliness warranty packaging instruction manual reasle value value for money instalmenr plan knowledge of model colour size and shape technology display importance brand name models influencing buying behaviour 1 .871 .732 .575 2 3 4
.781 .736 .570 .835 .560 .528
.740 .577 .530
Extraction Method: Principal Axis Factoring. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 7 iterations.
(TABLE 19)
35
NLDIMSR
ANNEXURE – 3
Resp. no.
QUESTIONNAIRE
1. Do you use Nokia cell phone? Yes No
2. How long you have been using the Nokia handset? Less than 1 yr 1-3 yr s 3-5 yrs More than 5 yrs
3. How frequently do you change your handset? Once a yr Once in 2yrs Once in 3 yr s More than 3 yrs
4. Please rank the following factors (1 highest to 5 lowest) that make you a buy a mobile phone. Mobility Convenience Status Privacy Extra services/benefits
5. The availability of Nokia cell phone in various model influence your buying process? Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree
36
NLDIMSR
6. How important are the following parameters of Nokia cell phone that affect your buying Decision? (A) PRODUCT PERFORMANCE Ext.unimportant Unimp. Somewhat imp imp . (1) Reliability (2) Durability (3) User friendliness (B) PRODUCT FEATURES Ext.unimp. imp (1) Shape & size (2) Colour (3) Display screen (4) Battery life (C) CUSTOMER SERVICE Ext unimp. imp (1) Dealers knowledge and behaviour (2) After sales service (3) Prompt Complaint handling (4) Warranty Unimp. Somewhat imp Imp. Ext. Unimp. Somewhat imp imp. Ext. imp Ext.
(D) COMMERCIAL. SERVICE 37
NLDIMSR
Extunimp. imp (1) Resale value (2) Value for money (3) Installment Plan (E) MISC. SERVICE Extunimp. imp (1) Brand name (2) Technology (3) Instruction Manual (4) Packaging
Unimp. Somewhat imp
Imp. Ext.
Unimp.
Somewhat imp
Imp.
Ext.
7. What is your preferred place of buying a Nokia cell phone? Authorized dealers Grey market
8. Please state the reason for buying Nokia phone from above mentioned place.
9. Please specify the source of information for Nokia cell phone. T.V Newspaper Magazines Friends Others,
please specify 10. Advertisements play an important role in your purchase decision. Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree
11. You have perfect knowledge about the model (Nokia) you are buying 38
NLDIMSR
Strongly disagree
Disagree
Neither agree nor disagree Agree
Strongly agree
12. Who makes the final decision to purchase? Father Mother Husband Wife Other, specify
13. Name 3 models (number) of Nokia cell phone according to your preference. 1. 2. 3.
14. Do you know the punch line of Nokia phone? Yes No 15. What do you feel about the brand Nokia? 16. Age 15 - 20 17. Occupation Self employed 18. Gender Male Female Private Govt. Student Others,specify 20 – 30 30 – 40 above 40
39
NLDIMSR
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