Customer Brand Preference of Mobile Phones at Hyderabad, India

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1 Customer Brand Preference of Mobile Phones at Hyderabad, India Kameswara Rao Poranki Professor in Department of Marketing, FAFS, Al Baha University, Saudi Arabia Abstract The markets for Mobile phones are one of the most turbulent today due to increased Competition and changing consumer brand preferences. The Researchers of this paper aimed to address the question by analyzing brand is preferred most by mobile phone users in Hyderabad town while purchasing mobile phones and status and impact of the technical, economical, social and personal criterion by mobile phone users in Hyderabad. And also wishes to found out the process of decision making while choosing and purchasing the branded mobile product with respect to their current satisfaction level on the particular brand. To gather data from 250 respondents we have selected them from mobile recharge centers, mobile phone shops and public places in Hyderabad town. The data thus collected were analysed by using simple percentage analysis and by chi-square test. Key words: Consumer brand Preference, Brand awareness and Level of Satisfaction etc Originality/value: This piece of research is pivotal to know the consumer brand preferences in a metro town like Hyderabad to represent the entire population of India in the best mobile market. Introduction As per literature, the Mobile phones were introduced in the mid-1980s and in the last two decades their ownership and use has increased dramatically in many parts of the world. Also, Mobile phone ownership at the end of 2005 was at near saturation levels in many areas of the world most notably in East Asia, as over 90% of all households in South Korea, Japan and urban China own at least one mobile phone ( In the Western European markets rank second collectively in mobile phone prevalence, with roughly 80% of all households owning a wireless handset ( And in North America, prevalence of mobile ownership is slightly less robust: in the U.S., three in four households own a mobile phone, while just over 60% of Canadian households own a mobile phone today. Interestingly, the popularity of mobile phones is a result of the communication and flexibility that they facilitate and the personal safety issues that they overcome. Interestingly, the design of mobile phones is also evolving, with more functions being added to an increasingly miniaturized handset. In themselves, miniaturization and increased function might make the phone more difficult to use while driving as more concentration may be required. The Cellular telephone (commonly "mobile phone" or "cell phone" or "hand phone") is a long-range, portable electronic device used for mobile communication. Trends in Mobile Phone Usage Worldwide As per the research findings from the emarketer website it is found that 4.55 billion people worldwide to use a mobile phone in However, the Mobile adoption is slowing, but new users in the developing regions of Asia-Pacific and the Middle East and Africa will drive further increases. In the years 2013 and 2017, mobile phone penetration will rise from 61.1% to 69.4% of the global population, according this report. RJSSM: Volume: 05, Number: 11, March 2016 Page 195

2 Figure-01: Worldwide Mobile Phone Users Source: It was noted that Mobile phone users are rapidly switching over to smartphones as devices become more affordable and 3G and 4G networks advance. The Smartphone users currently account for a majority of mobile phone users in 10 of the 22 countries included in the forecast according to emarketer this to increase to 16 countries during Figure-02: Smartphone Users and Penetration Worldwide Source: As per the above Figure-02 it was found that the global Smartphone audience surpassed the 1 billion mark in 2012 and will total 1.75 billion in 2014 and the emarketer expects Smartphone adoption to continue on a fast-paced trajectory through 2017 all over the world. Astonishingly, by the end of the forecast period, Smartphone penetration among mobile phone users globally will near 50%. The smart growth in India's phone market According to the latest trends in the Indian Smartphone market is heating up as multinational and homegrown companies compete to convert customers away from old-generation feature phones. The cellular penetration at just 73%, handset makers still have room to attract new customers in India and consumers' are also upgrading, with a thriving replacement market aided by dropping prices and cheap financing schemes. As per the August report from to technology researcher IDC India (International Data Corporation), only 10% of India's mobile population uses smartphones but this is the fastest growing segment, accounting for 29% of handset shipments in the quarter ended June 2014, up from 16% in Q As per this research, during the quarter the overall India mobile handset market stood at 63.21m units with a 5% quarterly growth, while Smartphone shipments grew 11% quarterly RJSSM: Volume: 05, Number: 11, March 2016 Page 196

3 and 84% year-on-year. However, the UK-based consultancy Canalys says that India is now the world's fastest growing Smartphone market globally and the third-largest market after China and the United States. Also according to a July report by We Are Social, India has only 243m Internet users, a 19% penetration rate, but three-quarters of these use their mobile phones to go online. Google says it expects India to be the world's second-largest Internet market by 2017, driven by mobile usage. Intestinally, this has contributed to the meteoric rise of local companies. Not even on the map five years ago, they now account for a third of handset sales and dominate the market share rankings. According to IDC, in Q2 2014, Samsung Electronics Co. led the overall handset market with a 17% market share followed by Micromax (14%), Nokia (10%), Karbonn (9%) and Lava (8%). The research firm IDC says it is noteworthy that Micromax is growing faster than Samsung and that among the top five vendors, only Micromax and Lava are growing faster than the market, at 18% and 54% respectively, although Samsung still comfortably leads the Smartphone segment with a 29% share against 18% for Micromax. Six-year-old Micromax may soon outrun Samsung: indeed, a report from Hong Kong-based Counterpoint Technology Market Research estimated a 16.6% overall market share for Micromax in the same June quarter, against 14.4% for Samsung's 14.4%. There are some new threats from China in this field. Popular Smartphone brands are looking to India. For example, China's Gionee, earlier a supplier to Micromax, has sold 3milion units since its Indian debut in March 2013 and Taiwanese computer maker Asus entered the Smartphone market in July 2014 with four smartphones priced between Rs5,999 and Rs16,999, selling over 100,000 units since. This company is now aims to be among India's top five Smartphone players by end of Also, China's Xiaomi has also sold 100,000 units of its flagship Mi3 device, priced at Rs13, 999, since it was launched in July 2014 according to this website ( However, the local companies are also partnering with international ones. In September, Google, working with MediaTek and Micromax, Karbonn and Spice, introduced its new Android One smartphones priced as low as Rs6,399 to capitalize on the mobile Internet shift. From America, US-based Mozilla, which drives open-source web browser Firefox, partnered Indian phone maker Intex to introduce Firefox smartphones for Rs1,999 and aims to sell half a million handsets by end Strikingly, all that feverish activity will benefit both India's customers and handset makers ( Literature Review The researcher of this paper Kameswara Rao Poranki (2015) has rightly noted that, brands are not new to marketing. He also found that the concept of brand was first used by the ancient Egyptian brickmakers who drew symbols on bricks for identification (Farquhar, 1990). The researcher Farquhar has opined that managing brand equity is one of the pivotal aspects for any company. Also in the North America there is a need for brand identification while growing their cattle forming as a kind of legal protection and proof of ownership (De Chernatony and McDonald, 2003) which will result creating powerful brands. The important point of a company strategy revolves around the brand orientation of consumers and companies identifies the importance of brand management and the spectrum of brand has been broadened beyond marketing communication and the resource-based theory of marketing strategy (Wong and Merrilees, 2007, Doyle, 1989). According to Wong opined that there are multiple roles played by brands for any modern company and according to Doyle, building successful brands leads to success of any company. The researcher (Festinger, Leon 1964) some researchers have raised questions concerning the nature and direction of causation in relations between attitudes and behavior. Some research studies related to segmentation on the basis of personality characteristics have had negative or inconclusive results. Brand choice also depends on Psychological and Objective Factors are more useful in the Prediction of Brand Choice. (Evans, Franklin B,1959) and, it is important to find out the types of consumers (Koponen, Arthur,1960), apart from personality and product use (Tucker, W. T. and John J. Painter,1961). RJSSM: Volume: 05, Number: 11, March 2016 Page 197

4 Figure-03: Boosting Brand Preference: The Voice of Your Customer Source: (By BECKY on AUGUST 27, 2015) As per the above figure-03 it was found that, Brand awareness, the measurement of consumers knowledge of your brand and brand image, how consumers perceive your company, product or service, is a marriage that directly translates to wallet share. This is the process of developing a positive, meaningful and powerful brand image will create customer stickiness that translates into sales. However, what happens when your brand awareness and image are strong and top of mind yet your brand preference scores lower on the scale than your competition? How do you affect the decision making process so your customers will choose your company, your product or service instead of your competitor s are the questions to be posed by the marketers. Also, Brand preference is defined as the measure of brand loyalty in which a consumer will choose a particular brand in the presence of competing brands, but will accept substitutes if that brand is not available. If your brand awareness or image isn t the problem then let s explore three of the most popular issues that impact brand preference. It s all about listening to the voice of the customer what type of pricing he/she is interested and their needs to be fulfilled by the suitable brands and their availability. Objectives of this research a) To identify the brand preference of students at Hyderabad associated with different mobile phones. b) To assess the students' satisfaction towards the various mobile phones. c) To know what major features, which a customers' looks for in a mobile before making a purchase. d) To identify the factors that influence decision-making in purchasing a mobile phone. e) To assess the impact of advertisement on the buying decision of students. f) To conclude other factors, which help in increasing the sale of mobile phones? Method We have taken a simple random technique while selecting the sample of 250 for the purpose of this research. The data thus, gathered in and around the city of Hyderabad, India. We have used probability research design and it could be a descriptive research. The data collected through primary as well as secondary sources. Conclusion In this research we have made deep study in knowing the brand preferences of student community in the metro city like Hyderabad in India. Initially we found that Nokia is the most favorite brand of the RJSSM: Volume: 05, Number: 11, March 2016 Page 198

5 college student and 35% student change their mobile phones within 1to2 years and 30% students are using the mobile phones since last 1 to 2 years. 51% students are ready to pay for a mobile phone less than 10,000 and they spend according to their family income. 49% 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. Interestingly, almost all students are aware about the GPRS, Bluetooth and MMS service but least students are aware about the 3G function. The most favorite brand among the college students is Nokia and the least favorite brand is LG. The parameters like appearance, Price, Brand Image and advertisement are the important factors for the students while purchasing mobile phones. Many students prefer slim, medium in weight and large in size handset and influenced by the advertisements on television. There is a slight problem with Nokia as it's hanging service is not so good. The students of Hyderabad are expecting from Nokia that it should provide better service and try to solve the hanging problem. These students wish that cellular companies should increase the awareness about the 3G service. Also they are looking at companies should offer more range of Rs. 10,000 or less than 10,000. It was found that LG and Samsung should try to expand its market share and also should try to increase the awareness through the television advertisement. Finally, students opined that all companies should increase their distribution channels for better reach to the consumers. The researcher of this paper recommends the future researchers to keep on conduct similar research in many other cites of India to get more desirable results, whereby it could be used by marketers of various competing companies in ever growing market of India. References 1) De Chernatony, L. and McDonald. M. (2003). Creating Powerful Brands, Elsevier, Butterworth Heinemann. 2) Doyle, P. (1989). Building successful brands: the strategic options, Journal of Marketing Management, 5(1), ) Evans, Franklin B. "Psychological and Objective Factors in the Prediction of Brand Choice: Ford versus Chevrolet," Journal of Business, 32 (October 1959), ) Farquhar, P. H. (1990). Managing brand equity, Journal of Advertising Research, 30(4), ) Festinger, Leon. "Behavioral Support for Opinion Change, "Public Opinion Quarterly, 28 (Fall 1964), ) Kameswara Rao Poranki (2015) & Mukhtar Yahia Ahmed Gumaa& Dr. Asif Perwej 'Assessment of Brand Preference in the Indian Mobile Phones Market" in RJSSM: Volume: 04, Number: 10, February 2015,pp ) Koponen, Arthur. "Personality Characteristics of Purchasers, "Journal of Advertising Research, 1 (September 1960), ) Tucker, W. T. and John J. Painter. "Personality and Product Use," Journal of Applied Psychology, 45 (October 1961), ) Wong, H.Y. and Merrilees, B. (2007). Multiple roles for branding in international marketing, International Marketing Review, 24(4), ) (accessed 28 Nov 2006). 11) 12) 13) 14) http :// aspx 15) 16) http :// nfpb=true&pagelabel=lg Page AboutLG 17) 18) 19) 20) RJSSM: Volume: 05, Number: 11, March 2016 Page 199

6 ANNEXURE Table-01: Sex ratio of the Respondents Particulars Number Percentage Male Female The above table tells us the graphical representation of the 250 Respondents. Table-02: Occupation of the Respondents Occupation of Respondents' Family Number Percentage Service Professional Business Others The above table tells us various occupations of the respondents Table-03: Family Income level of the respondents Family income (Indian Rupees) Number Percentage Less than Rs.15, Rs.15,001-25, Rs.25,001-35, Rs and above The above table explains us about the family income levels of the respondents Table-04: Educational Background of the Respondent s parents Educational Background Number Percentage High school Intermediate Graduate Post graduate Other The above table tells us the educational background of the respondent's parents Table-05: Consumer Brand Preferences S.No Brand Respondents Percentage 1 Nokia Samsung Sony Ericson LG Motorola Others The above table tells us the consumer brand preferences Table-06: Time Period of using the mobile phones S.No Time Period Respondents Percentage 1 Less than 1 year years years RJSSM: Volume: 05, Number: 11, March 2016 Page 200

7 4 Above 4 years The above table explains about the time period of using the mobile phones Table-07: Frequency of changing the mobile phones S.NO Frequency of changing the mobile phones Respondents Percentage 1 Less than 1 year years years Above 4 years The above table tells us the frequency of changing the mobile phones by respondents. Table-08: The Price the Consumers are willing to pay for mobile phones. Consumers willingness to pay for mobiles Number Percentage Less than 10, ,000 to 20, ,001 to 40, Any amount The above table tells us the Consumers willingness to pay for mobiles Table-09: Influence of TV Ads on consumer brand preferences of mobile phones. Brand Number Percentage Nokia Samsung Sony Ericson LG Motorola Iphone 2.8 Blackberry Other 2.8 The above table tells us Influence of TV Ads on consumer brand preferences of mobile phones Chi- square analysis: Chi- square analysis is on the relationship between gender and time period of usage the mobile phone. Gender Less than 1 year 1-2 years 2-4 years Above 4 years Total Male Female Total Ho; there is no significant relationship between the gender and time period of using the mobile phone. H1; there is a significant relationship between the gender and time period of using the mobile phone. O E (O-E)2 (O-E)2/E RJSSM: Volume: 05, Number: 11, March 2016 Page 201

8 E X2 = Σ (O-E)2 / E = Number of degree of freedom: ndf = (row-1) (column 1) = (2-1) (4-1)= 3 Table value of x2 at 1% level of significant = 7.78 Interpretation: Thus calculated X is less than the tabulated X. X calculated =3.429<X square=7.78. So we will accept null hypothesis that is there is no difference significance relationship between gender and time period of change the mobile phones. Chi-square analysis on the relationship between Income and spending on mobile phones Income/ Spending Amount(Indian Rupees) Less than Rs.10,000 Rs.10,000-20,000 Rs.20,000-40,000 Rs.40,000 & above Total Less than 15, ,000 25, ,000-35, ,000 & above Total Ho: There is no significant relationship between the income and spending on the mobile phones. Ha: There is a significant relationship between the income and spending on the mobile phones. O E (O-E)2 (O-E)2/E E X2 = Σ (O-E)2 / E = Number of degree of freedom: ndf = (row-1) (column 1) = (4-1) (4-1) = 9 Table value of x2 at 1% level of significant = RJSSM: Volume: 05, Number: 11, March 2016 Page 202

9 Interpretation: HO is rejected since the calculated value of x2 (26.77) more than the table value of x2 (12.59) hence there is a significant relationship between income and spending on mobile phones. Chi-square analysis on the relationship between Gender and frequency of changing the mobile phones Gender Less than 1 year 1-2 years 2-4 years Above 4 years Total Male Female Total Ho: There is no significant relationship between the income and frequency of changing the mobile phones. Ha: There is a significant relationship between the income and frequency of changing the mobile phones. O E (O-E)2 (O-E)2/E , E 2.64 X2 = Σ (O-E)2 / E = 2.64 Number of degree of freedom: ndf = (row-1) (column 1) = (2-1) (4-1)= 3 Table value of x2 at 1% level of significant = 7.78 Interpretation: HO is accepted since the calculated value of x2 (2.64) less than the table value of x2 (7.78) hence there is no significant relationship between gender and frequency of changing the mobile phones. RJSSM: Volume: 05, Number: 11, March 2016 Page 203