Title Nokia Mobile Consumer Buying Behavior: Submitted by
Title Nokia Mobile Consumer Buying Behavior: Submitted by
Title Nokia Mobile Consumer Buying Behavior: Submitted by
Submitted By-
Akshay Jodha
Ankit Rautela
Gaurav Grover
Prince Asati
Ram Tilwani
Stuti Roy
1
INDEX
___________________________________________________________________________
1. INTRODUCTION
2. EXECUTIVE SUMMARY
3. NOKIA- COMPANY PROFILE
4. MOBILE REVOLUTION 1992-99
5. NOKIA IN INDIA
6. SWOT ANALYSIS
7. ANALYSIS OF COMPANY (IN TERM OF 7 P’S)
8. THEORY
9. OBJECTIVE
10.HYPOTHESIS
11.RESEARCH DESIGN
12.SAMPLING METHOD
13.SAMPLE AREA:
14.SAMPLE SIZE
15.PRIMARY DATA
16.LIMITATIONS OF THE STUDY
17.DATA ANALYSIS METHOD
18.VARIABLES
19.DATA ANALYSIS AND INTERPRETATION
20.FINDINGS
21.RECOMMENDATION
22.BIBLIOGRAPHY & REFERENCE
23.APPENDIX
2
1. INTRODUCTION
2. EXECUTIVE SUMMARY
The concept of “buying behavior” is of prime importance in marketing and has evolved
over the years. It is important to understand consumer buying behavior as it plays a vital
role in creating an impact on purchase of products.
The human wants are unlimited and always expect more and more. Mobile pre-paid
products and Mobile handsets are no exception to this behavior. This lead to constant
modifications of Mobile pre-paid products and mobile handsets and today we see lots of
pre-paid products and new handset coming into the market practically every month.
In this research study my findings gave me a through insight of consumer buying
behavior towards mobile pre-paid products and handset models. I found that consumers
consider various parameters while buying a mobile operator and mobile
handsets. Factors such as better connectivity, attractive tariff and low entry cost plays
an important role in influencing a customer for opting any network similarly price,
functions availing and long battery backup are considered very important factors for a
customer before buying a handset model. The study also helps me to know what are
the major factors of dissatisfaction among the people after using a mobile operator.
On the whole, the market is a very important place to study the behavior of consumers
and also provide useful insights what a consumer requires in a product. It is only
through research that an Company will be able to study the buying behavior of
consumers.
4
3. NOKIA- COMPANY PROFILE
Nokia Corporation (NYSE: NOK) is one of the world's largest telecommunications
equipment manufacturers. With headquarters in Keilaniemi of Espoo, Finland, this
Finnish telecommunications company is best known today for its leading range of
mobile phones. Nokia also produces mobile phone infrastructure and other
telecommunications equipment for applications such as traditional
voice telephony, ISDN, broadband access, professional mobile radio, voice over IP,
wireless LAN and a line of satellite receivers. Nokia provides mobile communication
equipment for every major market and protocol, including GSM, CDMA, and WCDMA.
Nokia was established in 1865 as a wood-pulp mill by Fredrik Idestam on the banks of
Nokia rapids. Finnish Rubber Works established its factories in the beginning of 20th
century nearby and began using Nokia as its brand. Shortly after World War I Finnish
Rubber Works acquired Nokia wood mills as well as Finnish Cable Works, a producer of
telephone and telegraph cables. All three companies were merged as Nokia
Corporation in 1967. The name Nokia originated from the river which flowed through the
town of the same name (Nokia).
6
1999: The Internet goes mobile
Nokia launches the world's first WAP handset, the Nokia 7110.
NOKIA 2000-09
2007
Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks
commences operations. Nokia launches Ovi, its new internet services brand.
2009
Nokia's three mobile device business groups and the supporting horizontal groups are
replaced by an integrated business segment, Devices & Services.
7
5. NOKIA IN INDIA
Nokia has been the pioneer of mobile telephony in India, the existence here is from
1994. As noted above, the first ever GSM call in India was made on a Nokia 2110 on its
own network. Although the conditions in Indian telecom industry were not very
conducive, Nokia maintained an aggressive strategy. Import of mobile phones was not
easy and the tariff applied on them was as high as 27%. Consumers too were not
interested in purchasing mobile phones as call rates were as high as Rs16 per minute.
Another problem faced by Nokia was highly competitive environment in the industry.
Powerful global players like Motorola, Siemens, Sony and Ericsson already had there
presence in India in consumer durables, electronics and engineering sectors, and hence
were aware conditions prevailing in Indian market. However, overcoming all odds, Nokia
India came out as the market leader with 56% share in 2003-04 and still continues to
lead with 80% in 2007.
Asia is the fastest growing market for Nokia. Competitors such as Samsung, Motorola
and Sony Ericsson have captured huge market shares. The consumer is going for high
technology at reasonable prices. They respect any provider who gives the best
combination of both. Nokia has retained the top spot for quite some time in India, the
recent figures are;
“Finnish handset major Nokia has retained the top slot in Indian GSM market with 79
per cent share in 2006” “Nokia came from behind to stun the likes of Ericsson and
Motorola and corner nearly 80% of the GSM handset market in 2007”
Nokia in 2006, Started a manufacturing in Sriperumbudur, Chennai. His plant as on
December 2007 employed approximately 6000 people. The current investment on this
is about US$ 210 million in the plant since January 2006. Nokia announced to further
invest US$ 75 million in year 2008. Nokia's key strategy has always been to lead the
market on the basis of technology as it has always held. The difference it holds is the
capability to be more sensitive to the people with lower purchasing power which hold
the major share of these growing and developing countries market.
The country’s GSM telecom operators such as Bharti Airtel, Vodafone Essar and BSNL,
have together added 9.5 million subscribers in July, taking their total subscriber base to
325.7 million. According to the date released by the GSM representative body Cellular
Operators’ Association of India (COAI), the GSM operators have together added 9.5
million users in July, against 8.9 million users in June.
8
Top mobile operator Bharti Airtel added 2.8 million new subscribers during the period,
taking its total subscriber base to 105.1 million, COAI said. Airtel continues to be the
market leader with a share of 32.3%. Vodafone Essar, which a share of 24.2% has
added only 2.2 million in July against 2.3 million new connections in June, it added. Its
total user base was 78.6 million at the end of July.
Idea Cellular has added 1.6 million users in July, while Aircel added 1.3 million new
users in the same month, COAI said.
The data did not include additions by RCOM. State-owned telecom firm BSNL has
cornered a market share of 15.6% with the addition of 1.6 million users. The total
subscriber base of BSNL stands at 50.7 million. Another telecom PSU MTNL had seen
an addition of 35,413 subscribers taking the total subscriber base to 4.3 million.
Today mobile phones have moved beyond their primary role of voice communications
and have graduated to become an essential entertaining device for mobile users. We
are in an era where users buy mobile phones not just to be in touch, today’s youth use it
to express their thoughts, for social networking, to show their interests, play games,
read news, surf on the internet, listen to music, chat instantly with friends & families and
even check their bank balances. There are various phone manufacturers providing
handsets.
However, Nokia is the dominant player on the GSM space, accounting for 63% of the
installed base (phone’s currently in use) while LG rules CDMA with 48% of installed
base market share. On looking at urban India GSM/CDMA combined installed base,
Nokia is at the top with 54% of installed base market followed by LG (14%). LG is
second most used handset manufacturer India primarily due to its dominant position in
the CDMA.
Total
GSM CDMA (GSM +
CDMA)
Sony-
Ericsson 8.9% 6.8%
Sony-Ericsson
Samsung
Nokia GSM
CDMA
Motorola Total (GSM + CDMA)
LG
% % % % % % % % %
00 00 00 00 00 00 00 00 00
0. 2 0. 4 0. 6 0. 8 0. 0. 0. 0. 0.
10 12 14 16
On looking at the ability of manufacturers to gain market share via word of mouth, Nokia and
Sony-Ericsson fare a lot better compared to the other three big manufacturers, with 2 out of
3 users for each of the two manufacturers mentioning they are likely to recommend their handset
to their friends.
Likely to Recommend**
LG 57.6%
Motorola 41.0%
10
Nokia 68.6%
Samsung 55.7%
Sony-Ericsson 65.3%
60.00%
50.00%
30.00%
20.00%
10.00%
0.00%
LG Motorola Nokia Samsung Sony-Ericsson
6. SWOT ANALYSIS
STRENGTH
Durability
Long battery life
Brand loyalty
User friendly
WEAKNESS
Low voice quality
Heavy sets
Less stylish
OPPORTUNITY
Well designed Styled sets
11
Mobile with computer window
THREATS
China market
Orange , Vodafone are globally selling their own brands
Nokia: Product
Historically, the thinking was: a good product will sell itself. However there are no bad products
anymore in today's highly competitive markets. Plus there are many laws giving customers the
right to send back products that he perceives as bad. Therefore the question on product has
become: does the organization create what its intended customers want? Define the
characteristics of your product or service that meets the needs of your customers.
Functionality:
Quality
Appearance
Packaging
Brand
Service
Support
Warranty
Nokia: - Price
How much are the intended customers willing to pay? Here we decide on a pricing strategy – do
not let it just happen! Even if you decide not to ask (enough) money for a product or service, you
must realize that this is a conscious decision and forms part of the pricing strategy. Although
competing on price is as old as mankind, the consumer is often still sensitive for price discounts
and special offers. Price has also an irrational side: something that is expensive must be good.
Permanently competing on price is for many companies not a very sensible approach.
List Price:
12
Discounts
Financing
Leasing Options
Allowances.
Nokia:- Place
Available at the right place, at the right time, in the right quantities? Some of the recent major
changes in business have come about by changing Place. Think of the Internet and mobile
telephones
Locations:
Logistics
Channel members
Channel Motivation
Market Coverage
Service Levels
Internet
Accessibility
Nokia:- Promotion
How are the chosen target groups informed or educated about the organization and its
products? This includes all the weapons in the marketing armory - advertising, selling, sales
promotions, Public Relations, etc. While the other three P's have lost much of their meanings in
today's markets, Promotion has become the most important P to focus on.
Advertising:
Front Line Service
Public Relations
Message
Direct Sales
Sales
Media
Budget
Nokia:- People
All people directly or indirectly involved in the consumption of a service are an important part of
the extended marketing mix. Knowledge Workers, Employees, Management and other
Consumers often add significant value to the total product or service offering.
13
Nokia: - Physical evidence
Nokia:- Process
Procedure, mechanisms and flow of activities by which services are consumed
(customer management processes) are an essential element of the marketing strategy
14
Nokia has rapidly moved from functionally oriented organization to a business process
oriented mode, and our information systems have not followed the change as fast as
they should. To fill the gap, IM organization must learn and implement working methods
which enable the creation of business process oriented information systems. To satisfy
these business needs, Nokia has introduced a new development approach for
information systems development. These processes have been created and tested
during the SPI.
.
8. THEORY
How price and quality of Nokia Mobile influences the various satisfaction aspects of
youth. We are going to study the shift in preferences from traditional mobiles to smart
phones among the young population in Pune.
9. OBJECTIVE
10. HYPOTHESIS
1) Habitual buying behavior of mobiles is positively correlated with physical
looks/DESIGN of Nokia Mobiles
2) Habitual buying behavior is positively correlated with quality concern.
15
3) Price and features of Nokia Mobiles is positively correlated with habitual buying
behavior.
4) The more attractiveness of Nokia Mobile Features, the higher the consumer's
preference for the mobile.
11. RESEARCH DESIGN
The Research Design adopted in the study was descriptive in nature because the
study aims at describing the situation as it exists at present. It shows the
consumers buying behavior and satisfaction for Nokia mobiles.
The Sample Size of this study is 70. (35 Males and 35 Females)
The Data was collected from the main study and was analyzed using based on the
results conclusion were drawn and suggestions were made. Mean and standard
deviation and also Pearson’s correlation to calculate the relationship between variables.
Pie charts and bar graphs.
18. VARIABLES
1. GENDER
2. AGE
3. MONTHLY INCOME
S.N
Particulars Number Percentage
O
1 Female 35 50%
2 Male 35 50%
17
Percentage
60%
50%
40%
Percentage
30%
20%
10%
0%
Female Male
INTERPRETATION:
It is inferred that from the sample of 70, at PUNE, 50% are male users
AGE BREAK UP
18
30 & ABOVE
25-30 %FEMALE
%MALE
19-24
INTERPRETATION:
It is inferred that from the sample of 70 (male+female), at PUNE Viman Nagar, out of 35 males ,
68.5% (24)male are in between the age of 19-24 years, 25.71%(9) between 25-30 years and
5.71% (2) are above 30 and on the other hand out of 35 females 77.14%(27 )are in between the
age of 19-24 ,17.14%( 6 )between 25-30 years and 5.71%( 2 ) above 30 years the users of
Nokia and 66% are not using Nokia mobiles.
S.N
Particulars FEMALE Percentage
O
1 YES 23 65.71%
2 NO 12 34.28%
19
NO
YES
S.N
Particulars MALE Percentage
O
1 YES 26 74.28%
2 NO 9 25.71%
NO
YES
20
INTERPRETATION:
It can be inferred that out of 35 females 65 % (23) of them are satisfied with their
present Nokia mobile and 34%(12) are not satisfied and on the other hand out of 35
male 74.28% (26) are satisfied with their present Nokia mobile and 25% (9)are not
satisfied.
21
70%
60%
50%
40%
%MALE
30% %FEMALE
20%
10%
0%
<1000 <5000 <7000 <10000 10000- 50000
50000 &Above
INTERPRETATION
It is inferred from the graph sample of 2 female out of 6 (33.33%) i.e. whose income
level is (<7000) has responded. Income level (<10000) 3 male out of 8 i.e. (37.5%) and
3 male out of 6 i.e. (50%), Income level (10000-15000) 5male out of 8 (62.5%) and 1
out of 6(16.66%) has responded positively. Basically 8 male out of 35 earns and 6
female out of 35 earns.
22
What Would You Be Willing To Pay For A Mobile Phone?
Number Of Percentage of
Willingness to pay
S.NO Respondents Respondents
for mobile phone
Female Male Female Male
1 Less than 10,000 20 12 57.12% 34.28%
2 10,001 to 20,000 8 14 22.8% 40%
3 20,001 to 30,000 6 6 17.14% 17.14%
30000 & above
4 1 3 2.85% 8.57%
(Specify)
Total 70 100%
60.00%
50.00%
40.00%
30.00%
Percentage of Respondents Female
Percentage of Respondents Male
20.00%
10.00%
0.00%
Less than 10,001 to 20,001 to 30000 &
10,000 20,000 30,000 above
(Specify)
INTERPRETATION
It is inferred that 20 male (57.12%) and 12 female (34.28%) out of sample of 35 are
willing to pay less than 10000Rs on cell phone.8 male out of 35 (22.8%) and 14 female
out of 35 (40%) are willing to pay less than 20000Rs.(17.14%) male and (17.14%) are
willing to pay less than 30000Rs.(2.85%) male and (8.57%) female are willing to pay
30000Rs and above for cell phones.
23
What are the reasons for using the above mentioned model?
Reason for using Number Of Percentage of
S.N the above Respondents Respondents
O mentioned Nokia
Female Male Female Male
model
1 WAP 2 3 5.71% 8.57%
2 Just to talk on it 15 10 42.85% 28.57%
3 Use GPRS function 4 4 11.42% 11.42%
4 Receiving Email 0 7 0 20%
5 Receiving SMS 12 6 34.28% 17.14%
6 Download Files 2 3 5.71% 8.57%
7 Other Specifies 0 2 0 5.71%
WOMEN
Download Files WAP
6% 6%
Receiving SMS
34% Just to talk on it
43%
24
MEN
Other Specifies
6% WAP
Download Files 9%
9%
INTERPRETATION
This graphical representation show that out of 35 respondents 2(6%)
female and 3 (8%) male are using WAP, 15 (43%) female and 10 (29%)
male are using mobile for just to talk , 4 (11%) female and 4 (11%) male
are using for GPRS function, only 7 (20%) male are using for receiving
email, 12 (34%) female and 6 (17%) male are using for receiving SMS, 2
(6%) female and 3 (8%) male are using for downloading files and 2 male
are using for making notes and multi player games.
INTERPRETATION
It is inferred that 26 female and 12 male out of 35 prefer ( slim) phone. 6 female and 16
male out of 35 prefer (medium) phone.3 female and 7 male out of 35 prefer (thick)
phone.27 female and 7 male out of 35 prefer (small) phone.
8 female and 18 out of 35 prefer (large) phone.
NUMBER
1 friends 17 14 48.57% 40%
2 advertisement 8 4 22,85% 11.42%
26
Influence for Purchase
Men
OFERS
17%
family friends
11% 49%
advertisement
23%
OFERS
23%
friends
40%
family
26%
advertisement
11%
INTERPRETATION
It is inferred that friends have influenced 17(48.57%) male and 14(40%) female out of
sample of 35 to purchase Nokia phone .Advertisements have influenced 8(22.85%)
male and 4(11.42%) female, family has influenced 4(11.42%) male and 9(25.72%)
female, offers has influenced 6(17.14%) male and 8(22.85%) female to purchase Nokia
Phone.
27
Why you like the model you chose ?
(please indicate the important of below factors when you choose the
brands. 1-very important, 2-somewhat important, 3-neither important
nor unimportant, 4-less important, 5- unimportant.)
INTERPRETATION
It is inferred that 40% of female choose their handset on basis of appearance and brand
image, 57.14% of female choose their handset on basis of price, quality and
functions.48.56% of female think that resale value is very important.62.8% female think
that battery backup is very important factor in choosing handsets. 37.14% female think
that service is very important in choosing handsets.
1. Appearance 17.14%
12 6 6 6 5 34.28% 17.14% 17.14% 14.28%
4. Quality 11.42%
10 7 4 9 5 28.56% 20% 25.71% 14.28%
29
5. Brand Image 28.56% 20%
8 10 7 4 6 22.85% 11.42% 17.14%
8.
functions 7 9 4 8 7 20% 25.17% 11.42% 22.85% 17.14%
INTERPRETATION
It is inferred that 34.28%% of male choose their handset on basis of appearance and
brand image, 39.14% of male choose their handset on basis of price, quality and
functions.53.56% of male think that resale value is very important.62.8% male think that
battery backup is very important factor in choosing handsets. 37.14% male think that
service is very important in choosing handsets.
30
TABLE SHOWING THE PREFERRED ATTRIBUTE OF
NOKIA(general)
RESPODENTS
1 design 16 22.83%
2 User friendly 8 11.42%
3 brand 44 64.94%
4 others 4 5.81%
TOTAL 70 100%
PREFERRED ATTRIBUTE
others
6%
design
22%
User friendly
11%
brand
62%
INTERPRETATION:
Prefers Nokia mobile due to its brand image and next majority, i.e. 23% of
31
the respondents preferred it due to its design.
TABLE-5
Battery backup
Highly satisfied Satisfied Dissatisfied
15%
40%
45%
32
Price
Highly satisfied Satisfied Dissatisfied
10%
29%
61%
Variety
Highly satisfied Satisfied Dissatisfied
3%
26%
71%
33
1 GOOD 50 71.42%
2 AVERAGE 18 25.73%
3 BAD 2 2.85%
TOTAL 70 100%
AVAILABILITY
GOOD AVERAGE BAD
3%
26%
71%
34
RESALE VALUE
3%
26%
GOOD
AVERAGE
BELOW AVERAGE
71%
good
average
bad
71%
20. FINDINGS
From the survey of the 70 respondents, the findings are:-
35
It shows that Nokia enjoys a good lead over its competitors among the student mainly
due to:
Value for money
Battery backup
Strong brand name
Word of mouth
Currently the Nokia is having 67% market share in the Pune city.
Currently Nokia users in the Pune city Viman nagar is 67%, Motorola Users 5%,
Sony Ericson users 14%, Samsung users 3% and 11% users use other
company’s mobile phone.
58% peoples want to purchase Nokia mobile phone Because of Battery Back-up
of Nokia mobile.
Out of 85% respondents who are willing to purchase
Mobile phone,
The reason wise analysis for purchasing the mobile phone is that 40% of female
choose their handset on basis of appearance and brand image, 57.14% of
female choose their handset on basis of price, quality and functions.48.56% of
female think that resale value is very important.62.8% female think that battery
backup is very important factor in choosing handsets. 37.14% female think that
service is very important in choosing handsets.
36
From the survey, 95% respondents are aware about the “Nokia”.
Out of 70 respondents, 94% respondents are satisfied with the after sale services
provided by the “Nokia”.
From the survey it becomes clear that in the , the mobile user people are more
conscious about the price rather than feature conscious.
Nokia is the most favorite brand of the college student male and female also. In
which 50% male and 50% female because it is reliable and have durable prices.
34% of both male and female students like the Nokia advertisement most.
Mostly students use the mobile phones for talking, SMS and for using the GPRS
function.
Mostly students have hands free, Bluetooth and memory card.
Almost all students are aware about the GPRS, Bluetooth and MMS service but
least students are aware about the 3G function.
Most favorite brand among the college students is Nokia and the least favorite
brand is Sony Ericson.
Mobile users also prefer the mobile on the following attractive features; mostly
they prefer for their functions, quality, battery back up and appearance.
Mostly students prefer slim, light in weight and medium in size handset
Pictures, color and music are the important factor in advertisement.
60% female and 73.33% male students are ready to pay for a mobile phone less
than 10,000 and that is depend on the pocket money of their family and for them
also.
21. RECOMMENDATION
1:- Nokia should concentrate on the quality of the product/brand.
2:- Easy availability of the brand/product must be done by Nokia
3:- Supply chain management of Nokia should be improved.
4:- More emphasis should be given on advertisements.
5:- Different promotional activities by Nokia must be launch for boosting the sale.
6:- For better CRM, after sales service must be improve up-to the optimum.
7:- Nokia has to improve its Image in the mind of consumers if they want to survive
today’s competition as well as products.
8:- Nokia should continue to add additional function in the popular and highly-rated
mobiles.
37
9:- Nokia should improved Bluetooth reception and network reception.
10:- Many NokiaMobile have smaller keypad which create a problem for heavy
texters, so Nokia should improve their keypad structure.
11:- Some Nokia mobile has very weak battery life, so Nokia should try to improve
the battery life.
12:- Nokia should improve the pictures quality of its camera phones.
13:- Should focus more on the youth customers
14-Although Nokia provides durable and reliable and really affordable price ,but the
appearance Nokia should be
.
22. BIBLIOGRAPHY & REFERENCE
GSMARENA
MOBILE123
PROQUEST
EBSCO
NOKIA.IN
NOKIA.COM
23. APPENDIX
38
QUESTIONNAIRE
NAME:
(IF APPLICABLE)
<10000 10000-50000
50000 &Above
Marital Status
Single Married
1) Yes 2) No
39
How long you are using the nokia mobile phone.
What are the reasons for using the above mentioned mobile phone?
Why you like the nokia model you chose above? (Please indicate the
important of below factors when you choose the brands. 1-very
important, 2-somewhat important, 3-neither important nor
unimportant, 4-less important, 5-unimportant.)
1 2 3 4 5
Appearance
40
Price
Battery
backup
Quality
Brand Image
Service
Resale value
functions
Which of the following would impress you the most in a nokia mobile ?
(Please indicate the important of below factors when you choose the
brands. 1-very important, 2-somewhat important, 3-neither important
nor unimportant, 4-less important, 5-unimportant.)
1 2 3 4 5
Screen resolution
Variety to choose from
41
Easily resold
Battery backup
Music
Lots of features
Price range
1) Yes 2) No
Yes no
Yes no
42
After sale service of Nokia Handset?
1) Yes 2) No
1) Yes 2) No
43
Will you recommend anybody to buy Nokia phone?
1) Yes 2) No
1 2 3 4
Nokia
Samsung
Sony
Ericsson
LG
Motorola
iPhone
BlackBerry
NEC
Sharp
Others
44
45