research report on china mobile

8/6/2019 Research report on China Mobile

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1

|AN EMPIRICAL STUDY ON CONSUMERS PERCEPTION

TOWARDS CHINA MOBILES IN SURAT CITY}

Submitted To Submitted By

Dr.Manisha Panwala Patel Rohan (15)

Vegada Jignesh (38)

Desai Jimi ( )

DEPARTMENT OF BUSINESS & INDUSTRIAL MANAGEMENT

VEER NARMAD SOUTH GUJARAT UNIVERSITY

SURAT



2

PPR R EEFFAACCEE

The survey on an empirical study on consumers¶ perception towards china

mobiles in surat city had been done by our team to find out the consumer preference

regarding various china made mobiles. We have attended 30 respondent to fill the

questionnaire. The questionnaire contained 21 questions based on the people

preference towards china made mobiles. We have taken our information from the

website as well as book.

We are thankful to our faculty Dr. Manisha Panwala to guide to do the

research. We are also thankful to the customers to co-operate with us and have

provided necessary help to carry out this research.

- Group Members



3

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TABLE OF CON TE N T

No. particular Page no.

1 Introduction 6

2 Industry analysis 7

3 Product analysis 9

4 Review of literature 10

5 Research methodology 11

6 List of information needed 11

7 Variables 12

8 Hypothesis 12

9 Method of data collection 12

10 Sampling plan 12

11 Data analysis 12

12 Benefits of study 12

13 Limitation of study 13

14 Chi-square test 18

15 Conclusion 32

16 Annexure 33

17 Bibliography 38



6

INTRODUCTION

Mobiles phones are so common now that they hardly attract ones attention. People have

started understanding the value, convenience and ease of owning a mobile phone. Everyone

including the young children carry a mobile phone these days. It has become the most

important item that an individual should possess. It is an instant communication exchangetool used to make and receive calls as well as sends text messages, listen to music, surf the

internet and even play games.

When mobile phones were first introd uced, very few people could buy them. But today due

to their declining cost, almost every individual can afford to purchase it. Mobile phones are

equipped with latest features. A basic mobile phone without the advanced features is also

available to make and receive calls. Mobile phones help to keep in touch with people

whenever and wherever required thus saving a lot of our time.

Mobiles phones available in miniaturized size with attractive designs and features provide

access to many useful features like camera, games, music and Bluetooth which can easily be

maintained. These features make life much easier. In these days where people look for

comfort, convenience and reliability, the mobile phones have provided them with all.

In India, competition is heating up among giant players like Nokia, Samsung, Sony Erickson,

LG and Motorola. In spite of the high competition among these branded mobiles, the

unbranded mobiles do not provide the guarantee; there demand is high because of the

price advantage. On such unbranded mobile comes from Chinese manufactures. A market

study was undertaken to find out the reasons behind the frequent purchases and

perception of consumers towards China mobiles in Surat city.



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INDUSTRY ANALYSIS

The use of mobile phones has been increasing in the developing countries in India. As per

the latest reports, number of mobile subscribers in India has crossed the 250 million mark.

By April 2010, India is projected to become the second largest wireless market in the world.

The new age mobile applications like live TV and video calling will bring about the next level

of growth in the cellular industry, says a study.

A lot of water has flowed under the bridge from the time that mobiles were unheard of in

India to the present where they have become almost ubiquitous. Beginning from those

days, Indian subscribers paid around Rs. 16.40 for a mobile to mobile call and around Rs

32.80 for a mobile to a land-line call. Today, as per recent statistics, customers pay far lesser

for calls and occasional text messages that add up to around Rs 300 a month and upwards.

Now that mobiles have moved into the affordable bracket, there is a great demand for

additional mobile services such as mobiles, email, stock market quote s, and astrology

services just to name a few. A recent survey pointed to the fact that for most customers,

mobile phones have become an extension of their personality. Many go a step ahead to say

that mobile phones define their individuality as well.

In such a scenario, it is worthwhile to compare the growth of the mobile phone industry vis -

a-vis the computer industry in India. According to recent statistics, there are nearly 300

million mobile phone subscribers as compared to just around 30 million PC's i n the country.

Additionally, around 8 million subscribers are signing up every month for mobile services

alone. For most individuals, mobile phones are becoming a single point of contact for the

world surrounding them covering a wide range of utilities lik e emailing, entertainment, and

banking.

More and more people are looking out for more than just talk time on their mobiles. All this

is generating a lot of enthusiasm for mobile companies. A number of serious players in this

industry are looking at a range of such value added services, which have the capability to

boost their bottom line. Not only are Indians enthralled, but they started spending a

considerable amount on these services too. This figure amounted to around $250 million

last year. This figure is expected to reach $1.7 billion by the year 2010. This is a boon in

disguise for Indian cellular operators who are seriously looking forward to enhance their

revenues. Currently, nearly 80% of the revenues come from services like ring tones and

SMS. This makes India the second largest mobile market on earth.

The young mobile savvy generation currently feels less privileged in nearly every sector. Andthat's precisely what is fuelling the growth in mobile services across the country. As the

market expands but fulfilling the needs of mobile users by providing them attractive

services, mobile phones are becoming a new vehicle for reaching out to the mobile

generation.

Mobile content providers also visualize a big jump in their services. These include many

global companies such as Google, Yahoo and MSN, which have signed up with many Indian



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operators like Airtel, Bharti, Vodafone, Tata, and Reliance Communications. Together, they

offer a host of services based on the local and regional markets in their area of operation.

The Indian mobile scenario seems to be all set for the next stage - expansion and

consolidation, but there are a few complications as well. Not all users can afford costlier

services beyond messaging and talk time. What is expected is increase in the already

growing user base so such services can become affordable to one and all in the long run.

"While a majority of Indian consumers are driven by basic handset features of messaging

and music, a growing proportion of young Indian consumers is e xpected to bring about the

next level of growth for new age mobile technologies, around 'infotainment' features," says

the study prepared by research firm TNS. The study was conducted in 30 cities covering over

5,000 respondents. It aims at providing a wider understanding of consumer experiences

with mobility, and insights into the way it will take shape in the near future.

The findings highlight that 'static' functionalities such as SMS and still imaging have become

commoditized, and the growth will be driven by demand for social functionality and new

demands for video calling, streaming and sharing services.

The number of mobile Web users visiting social networking sites accounts for only 3 per

cent in India. Social networking is expected to grow significantly with 23 per cent users

interested in making use of this service from their handsets, the study added. Consumers in

emerging markets like India, China and Brazil are more likely to want to upload content (49

per cent), but more than half (55 per cent) do not have the ability to do so.

"With consumer preferences shifting in favor of other form factors, handset manufacturers

and content providers will need to make their product range feature rich and at the same

time engaging for the young consumers with infotainment services like stream music, live

TV, video, access to social networking sites being some of the key growth avenues," TN S India Senior Vice President Technology & B2B Parijat Chakraborty said.

About 31 per cent consumers in India indicate that the ability to take and share pictures and

video will play a major role in their choice of next device coming a close second to the

handset's ability to store music (34 per cent).

In India, handset brands (36 per cent) are considered an important factor in product

decision making and have maintained their commitment. However, content brands (29 per

cent to 37 per cent) have leapfrogged and overpowered network brands (35 per cent to 27

per cent) in the last 12 months.

"Emergence of content as a strong contender in the entire ecosystem further reiterates the

need to adopt a more collaborative approach in order to achieve sustained growth," Parijat

said.



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PRODUCT ANALYSIS

The main function of the Chinese mobile is to enable the consumers to talk and send SMS.

These are the main functions of the Chinese mobiles in fact for any mobiles. We are

explaining what advancements have been made in technology to enhance the performanc e

and function of mobile phones.

(a) Batteries.

Development of NiCad batteries, which are very small and can recharge very quickly.

Replace lead/acid batteries, which tended to be large and heavy, with limited power and

took considerable time to recharge. NiCad batteries can be recharged up to 1000 times

before they begin to wear out. Modern batteries do not tend to have the memory effect

this is where older batteries if recharged before they were fully discharged would

remember the point of recharging and would become discharged at this point in

subsequent use.

(b) Visual displays.

Visual displays now use liquid crystal displays or colour liquid crystal displays. These have

made the LED display obsolete because mobile phones are now used for so much more than

making a phone call. Color LCDs enable the use of games, Internet services, digital

photography and so on.

(c) Microelectronics.

Development in microprocessors has enabled mobile phones to become much smaller and

lighter but many times more powerful than their predecessors. Circuit boards within mobilephones are now minimal because most of the electronic components and circuits can be

miniaturized on a chip. Multi-layered circuit boards and surface mount components also

help to reduce the size of the electronics.

We explain how developments in technology have led to improvements in the ergonomics

of mobile phones. With the developments in batteries and microelectronics, telephones are

now truly pocket sized. They are very light in weight, have a slim appearance and can be

carried with ease. The electronics are so small that designers can package them in

ergonomically designed cases that fit into the hand. Flip phones are now commonplace,

with large color screens to view pictures and data. With the development of LCD and color

LCDs, the interaction between the user and the phone is made much easier. Menus are clearand simple to follow, using simple graphic icons to aid the user. Voice activated dialing and

Bluetooth technology are also examples of how developments in technology have led to

improvements in ergonomics. Users can now wear hands -free earpieces that are not

connected to the phone and so allow more freedom of movement. Voice dialing enables

users to make a call without having to touch the keypad and so on.

We explain how developments in smart materials can make electrical products easier to

recycle. Developments in shape memory alloys have enabled the creation of screws and



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other fastenings within mobile phones to come loose when heated in an infra-red oven.

Under normal temperature ranges the screws, clips, and so forth fit tightly. When heated,

the screws will contract making them loose, and clips can be made to expand. A spring

within the phone can be made to expand helping to push the circuit board, display and

other components apart. The same technology can be used in other electrical equipment

such as radios, televisions and so on in order to help in the recycling of materials andcomponents.

REVIEW OF LITERATURE

It was viewed that mobile phones, mobile internet access and mobile commerce were

growing much faster than their fixed counterparts. This paper attempts to describe the fast

growing trends for tools to access the internet that will be more popular in the future and

the predominant use of personal computer at the present time. A survey was conducted to

understand consumer attitudes towards mobile communication and factors that would

contribute to adaption and success of this emerging technology.

It was also viewed that the rapid proliferation of cell phones and other mobile devices has

created a new channel for advertising and marketing. This is an exploratory study that

focuses the attitude towards cell phone, cell phone advertising and SMS advertising. This

study also investigates consumer behavior in accepting and using cell phone advertisement.

Survey method was used and the questionnaire was administered. This study finds that

respondents attitude towards both general cell phone advertisements and SMS

advertisements negative. The result shows that the individuals who had more positive

attitudes cell phones ads were more receptive to accept and use cell phones

advertisements.

We deduced those factors that customers perceive to be the most important while utilizingthe services of the mobile service provider. A well structured schedule was developed for

conducting the study. Judgmental sampling method was followed. Data was suitably

tabulated on the basis of responses provided by 30 respondents and further by calculating

percentages, frequencies and factor analysis method. The mobile users group with various

features was classified into four factors viz. customer care, service, call rates and promotion

and the availabilities in the same order of importance.



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RESEARCH METHODOLOGY

The study was descriptive type of research. Likert scale was adopted to measure the

dimensions of this study. Convenient sampling method was adopted for administering the

questionnaires.

EXECUTIVE SUMMARY

This report has been prepared based on our research for consumers perception towards

Chinese mobiles. The information of our research is limited only to Surat city. Report

contains the objective of the study, hypothesis (Null and Actual), research design,

questionnaire, sampling techniques.

PROBLEM STATEMENT

Consumers perception towards Chinese mobiles in Surat City.

RESEARCH QUESTIONS

1) What is the consumers perception towards the Chinese mobiles?

2) What is the consumers opinion on price towards Chinese mobiles?

3) What do consumers think about the features of the Chinese mobiles?

4) Do the consumers really believe in the after sales services of Chinese mobiles?

5) Should the company improve the quality of the mobiles?

RESEARCH OBJECTIVES

The main objective of this study is to find consumers

1) Attitude of the consumers towards Chinese mobiles.

2) Opinion on price

3) Opinion on features

4) 3Opinion on sale and services of Chinese mobiles.

5) Whether the consumers are aware about Chinese mobiles

6) Whether the consumers are satisfied with the Chinese mobiles.

LIST OF INFORMATION NEEDED

We needed information about the age, occupation, no of family members, gender, family

income, educational qualification, occupational status, and the features of the mobiles thatthe consumers are looking forward to use. Also the type of mobiles that the consumers

were using before purchasing the Chinese mobiles. We also need information about the

type of mobiles the consumers are using, how much the Chinese mobiles are in usage,

whether the consumers are satisfied as well as aware related to the Chinese mobiles.



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VARIABLES

1) Prestige in the society

2) Price

3) Features of the mobile

4) Qualification of the respondents5) Income of the respondents

HYPOTHESIS

H0: There is no association between personal profiles (age and educational qualification) and

perception towards Chinese mobiles.

H1: There is association between personal profiles (age and educational qualification) and

perception towards Chinese mobiles.

METHODS OF DATA COLLECTION

Primary data was collected with the help of structured questionnaire administered among

30 respondents in the city. Secondary data was collected from other journals and

magazines. The study was carried out for two days. Chi-square test was carried out by using

Statistical Package for Social Science (SPSS 16.0). Chi-square test was advocated to find out

the association between age and educational qualification with consumers perception

towards Chinese mobiles.

SAMPLING PLAN

The sampling method which we had used in our research is non probability sampling. The

sample size which we had considered is 30.

DATA ANALYSIS

To minimize manual work of calculation we took the help of computer. The work is

carried out using Microsoft word, Microsoft excel, and graphical aids like pie charts and

tables have been used for better understanding and interpretation of data. One of the most

important tool of data analysis used was Statistical Package for Social Science (16.0).

BENEFITS OF THE STUDY

1) The main purpose of the study is to find out the consumers perception towards the

Chinese mobiles.

2) The research also helps us to know whether the consumers paid more importance tothe price and whether they considered the price as the vital factor and major reason

for buying.

3) The research also helps to find whether the service provided by the Chines e mobiles

is the major factor for preferring Chinese mobiles.

4) The study helps us to know the usage of the Chinese mobiles.



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LIMITATIONS OF THE STUDY

1) The scope of the study is limited only towards the Surat city from where the data is

collected.

2) Responses of the respondents maybe biased.

3) The study was limited only towards the Chinese mobiles and no other products.

4) The study covers the perception of the consumers towards the Chinese products and

cannot be applied to other products.



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DATA ANALYSIS

gender

Frequency Percent Valid PercentCumulative

Percent

Valid MALE 26 86.7 86.7 86.7

FEMALE 4 13.3 13.3 100.0

Total 30 100.0 100.0

INTERPRETATION

From the above data charts we can interpret that 86.7 % males use Chinese mobiles and

only 13.3 % females use Chinese mobiles.



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age

Frequency Percent Valid Percent

Cumulative

Percent

Valid BELOW 20 YEARS 3 10.0 10.0 10.0

20 TO 30 YEARS 25 83.3 83.3 93.3

30 TO 40 YEARS 1 3.3 3.3 96.7

40 YEARS ABOVE 1 3.3 3.3 100.0

Total 30 100.0 100.0

INTERPRETATION

On the basis of the above charts we found that on 10 % people were below age 20 years,

83.3 % were between age 20 to 30 years, 3.3 % were between age 30 to 40 years and 3.3 %

were above 40 years.



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qualification


Cumulative

Percent

Valid HIGH SCHOOL 8 26.7 26.7 26.7

DEGREE 5 16.7 16.7 43.3

DIPLOMA 2 6.7 6.7 50.0

POST GRADUATION 14 46.7 46.7 96.7

PROFESSION AL 1 3.3 3.3 100.0

Total 30 100.0 100.0

INTERPRETETION:On the basis of qualification we found that 26.7% belong to high school, 16.7% belong to

DEGREE,



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occupation


Cumulative

Percent

Valid STUDENT 20 66.7 66.7 66.7

BUSINESS 1 3.3 3.3 70.0

PRIVATE 6 20.0 20.0 90.0

OTHERS 3 10.0 10.0 100.0

Total 30 100.0 100.0

INTERPRETATION:

We found out that 66.7 % were students, 3.3 % were business people, 20 % were private

owners, and 10 % were others.



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CHI-SQUARE TESTS

Age and statement1 :

age * statement_1 Cr osstabulation

Count

statement_1

Total AGREE NEUTRAL DISAGREE

STRONGLY

DISAGREE

age BELOW 20 YEARS 1 0 0 2 3

20 TO 30 YEARS 2 10 4 9 25

30 TO 40 YEARS 0 0 1 0 1

40 YEARS ABOVE 0 1 0 0 1

Total 3 11 5 11 30

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 10.882a 9 .284

Likelihood Ratio 10.580 9 .306

Linear-by-Linear Association .442 1 .506

N of Valid Cases 30

a. 14 cells (87.5%) have expected count less than 5. The minimum expected count is .10.

HO: There is no siginificant difference between age and prestige in society.



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INTERPRETATION:The chi-square calculated value is 0.284 which is more than the 0.05, thats why the null hypothesis

accepted



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Age and price:

age * basis _low_pr ice Cr osstabulation

Count

basis_low_price

TotalNO YES

age BELOW 20 YEARS 0 3 3

20 TO 30 YEARS 3 22 25

30 TO 40 YEARS 1 0 1

40 YEARS ABOVE 0 1 1

Total 4 26 30

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 7.154a

3 .067


Linear-by-Linear Association 1.046 1 .307

N of Valid Cases 30

a. 7 cells (87.5%) have expected count less than 5. The minimum

expected count is .13.



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INTER PRETATION:

The null hypothesis is accepted.



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Age and feature

age * basis _f eatures Cr osstabulation

Count

basis_features

TotalNO YES

age BELOW 20 YEARS 3 0 3

20 TO 30 YEARS 20 5 25

30 TO 40 YEARS 1 0 1

40 YEARS ABOVE 1 0 1

Total 25 5 30

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)


3 .753


Linear-by-Linear Association .000 1 1.000

N of Valid Cases 30





23

INTER PRETATION:




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Qualification and usage:

qualification * usage _of_china_mobile Cr osstabulation

Count

usage_of_china_mobile

Total

FOR THREE

MONTHS 3 TO 6 MONTHS 6 TO 9 MONTHS

ONE YEAR AND

ABOVE

qualification HIGH SCHOOL 1 1 4 2 8

DEGREE 0 5 0 0 5

DIPLOMA 1 0 0 1 2

POST GRADUATION 2 7 2 3 14

PROFESSION AL 0 0 1 0

Total 4 13 7 6 30

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)


12 .088



N of Valid Cases 30





25

IINTER PRETATION:




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Income and usage:

incom * usage _of_china_mobile Cr osstabulation

Count

usage_of_china_mobile

Total

FOR THREE

MONTHS 3 TO 6 MONTHS 6 TO 9 MONTHS

ONE YEAR AND

ABOVE

incom BELOW 50000 1 2 3 1 7

50000 TO 100000 2 3 1 2 8

100000 TO 200000 1 4 2 1 8

ABOVE 200000 0 4 1 2

Total 4 13 7 6 30

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)


9 .829



N of Valid Cases 30





27

INTER PRETATION:




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Occupation and basis low price

occupation * basis _low_pr ice Cr osstabulation

Count

basis_low_price

TotalNO YES

occupation STUDENT 2 18 20

BUSINESS 0 1 1

PRIVATE 1 5 6

OTHERS 1 2 3

Total 4 26 30

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)


3 .696



N of Valid Cases 30





29

INTER PRETATION:




30

Age and service facility:

age * statement_7 Cr osstabulation

Count

statement_7

Total AGREE NEUTRAL DISAGREE

STRONGLY

DISAGREE

age BELOW 20 YEARS 1 1 0 1 3

20 TO 30 YEARS 2 6 7 10 25

30 TO 40 YEARS 0 0 0 1 1

40 YEARS ABOVE 0 0 1 0 1

Total 3 7 8 12 30

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)


9 .641



N of Valid Cases 30





31

INTER PRETATION:The null hypothesis is accepted.



32

CONCLUSION:

o

it is generally recognized that product with popular brand image preferred.But, this survey mainly bring out that the consumer behavior is significantly

influenced by to main factor namely price and service while other factors are

found to be of lesser significance.

o From the research we come to know that people are not satisfied with the

china made mobiles.

o From the research we come to know that china mobile is purchased by those

who are less quality and brand conscious while those who are price

conscious.



33

Annexure



34

Q UESTIONNAIRE

We the students of Department of Business and Industrial Management are conducting a

research on An Empirical Study on Consumers Perception towards China Mobiles in Surat

City. We have prepared the questionnaire in response to the topic and request you to fillthe same as stated below. We assure you that we are conducting this survey solely for the

academic purpose and the information will remain confidential and will not be used

publicly.

y Name:

y Gender:

[ ] Male

[ ] Female

y Age:

[ ] Below 20 years

[ ] 20-30 years

[ ] 30-40 years

[ ] 40 and above

y No of Family Members:

y Family Income:

[ ] Below Rs. 50000

[ ] 50000-100000

[ ] 100000-200000

[ ] Above 200000

y Educational Qualification:

[ ] High school

[ ] Degree

[ ] Diploma

[ ] Post Graduation

[ ] Professional[ ] Others. Specify: __________



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y Occupational Status:

[ ] Student

[ ] Business[ ] Private

[ ] Government

[ ] Others. Specify: __________

y No of mobiles in your family irrespective of the brand

[ ] One

[ ] Two

[ ] More than two

y How long have you been using this China mobile?

[ ] For three months

[ ] 3-6 months

[ ] 6-9 months

[ ] One year and above

y How did you come to know about China mobiles?

[ ] Advertisement

[ ] Sales Representative

[ ] Friends & Relatives

[ ] Others.Specify: __________

y On what basis you have purchased the China mobile? (Multiple choices possible)

[ ] Low price

[ ] Service

[ ] Features

[ ] Looks

[ ] Easily available in the market

[ ] All of the above


y Do you think it is alright to use China mobiles given the controversy around it?

[ ] Yes

[ ] No

[ ] Cant say



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y If after purchasing the China mobile which features you are looking forward to

use? (Multiple choices possible)

[ ] Send SMS [ ] Listen to music

[ ] Surf the internet

[ ] Play games


y Which advanced features will you use in China mobiles? (Multiple choices

possible)

[ ] Camera

[ ] Bluetooth

[ ] Internet Access[ ] Mobile Commerce

[ ] E-mail

[ ] MMS



y Will you recommend China mobiles to your friends and relatives?

[ ] Yes

[ ] No

[ ] Cant say

y Will you present as a gift to others?

[ ] Yes

[ ] No

[ ] Cant say

y Which brand of mobile where you using earlier?

[ ] Nokia

[ ] Sony Erickson

[ ] Samsung

[ ] LG

[ ] Motorola

[ ] No




37

y Rate the following attributes in order of your preference while buying China

mobiles?

1: Strongly agree2: Agree

3: Neutral

` 4: Disagree

5: Strongly disagree

No Attributes Scale

1 2 3 4 5

1 Increase my prestige in society

2 Happy about the price of mobile

3 Happy about the features of the mobile

4 Price is low when compared with the features

5 Price is low when compared with other brands

6 China mobile are better when compared with other brands

7 Fully satisfied with the service facility

8 Exchange or replace this mobile more easily



38

BIBLIOGRAPHY:

Reference Books

y R.Cooper & P. Schindler Business Research Method TATA Mc Graw

publication 9th

edition

Web site:

http://www.slideshare.net/kumaravinash23/chapter-6-consumer-perception

research report on china mobile

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