Assessment of Brand Preference in the Indian Mobile Phones Market

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1 Assessment of Brand Preference in the Indian Mobile Phones Market Prof.Kameswara Rao Poranki MBA.,PhD., Professor in Department of Marketing, FAFS, Al Baha University, Saudi Arabia (KSA) & Dr.Mukhtar Yahia Ahmed Gumaa MBA.,PhD., Assistant Professor in FAFS, Al Baha University, Saudi Arabia (KSA) & Dr. Asif Perwej MBA.,PhD., Assistant Professor in Department of Management Studies, SIET, G. Noida , U.P (India) dr.aasifperwej@gmail.com Abstract It is a very difficult to predict or assess an individual preference but it is important for marketers, since it represents a fundamental step in understanding consumer choice. To assess the brand preference on the basis of knowledge of the consumer and his characteristics is a prelude to identifying the causes of preference and the means by which it can be influenced by the marketers. While the approach is intuitively appealing and seemingly obvious, this study is the first to present results from testing the hypothesis. The researchers of this paper has taken the sample of students at Visakhapatnam, India to assess the student's brand preferences associated with different mobile phones and to find out their satisfactions and factors influence decision making in purchasing a mobile phone. Originality/value: The researchers have put in efforts to predict the brand preference and taken a case study of some mobile manufacturing companies with particular reference to Visakhapatnam of India. Key words: Brand, Brand Preference, Customer Satisfaction, Personality characteristics etc. Paper type: Research paper Introduction It was rightly noted that, brands are not new to marketing. Historically, the concept of brand was first used by the ancient Egyptian brick-makers who drew symbols on bricks for identification (Farquhar, 199). Farquhar opined that managing brand equity is one of the pivotal aspect for any company. 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, 23) which will resulting creating powerful brands. The pivotal 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, 27). Doyle (1989). Also, 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. In this research we have just not dealt with the cause-and-effect relationship between attitude change and change in brand preference. However, (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. But 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,196), apart from personality and product use (Tucker, W. T. and John J. Painter,1961). However it was opined that there is no association between personality, socioeconomic variables, and the household brand loyalty was found > RJSSM: Volume: 4, Number: 1, February 215 Page 128

2 in a study of toilet tissue purchases (Kildegaard, Ingrid and Lester Krueger,1964). At present, in this modern world the great attention received by marketers was consumer brand preference as it is the essential step to understand consumer choice behaviour. Brand preferences reveal the type of attributes a brand possesses, to strengthen its position and increase its market share. Whereas, the experiential marketing also considers both, the rational and irrational assumptions of consumer behaviour. Consequently, consumers cannot shape their preferences among brands using rational attributes only. Consumers seek the brand that creates experience; intrigue them in a sensorial, emotional, and creative way. According to (Heikki, Jeri et al, 25 there is a strong evidence that although mobile phones are developing at a rapid pace closer to personal digital assistants (PDAs), many consumers tend to be unaware of the properties and services the new models in the market they are in. There are seven factors play a great role to characterize mobile phone choice: they are pricing, reliability, outside influence, brand and basic properties, design, multimedia and innovative services. As per the study of (Mei-jian, Haibo & Qoing, 212) Brand emotion of the web consumers, group effect, enterprises networking marketing methods, perceived brand identity are the four factors that influenced the choice behavior of web consumer in a different degree and way. In an empirical research (Khurana,S. 211) he showed that, product price, quality and availability, and promotion are also important factors to influence the consumers in Hissar's mobile phone market. The Global Cellular Mobile Industry: The global mobile phone industry is based on many different manufacturers and operators. The industry is based on advanced technology and many of the manufacturers are operating in different industries, where they use their technological skills, distribution network, market knowledge and brand name. Four large manufacturers of mobile phones are today dominating the global mobile phone industry; Nokia, Sony Ericson, Samsung and Motorola. The below figure explains about the Global forecast of Mobile handsets and others up to the year 217. Telecom Industry in India The telecom industry is one of the fastest growing industries in India. India has nearly 2 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. China is the biggest market in Asia Pacific with a subscriber base of 48% of the total subscribers in Asia Pacific. Compared to that India s share in Asia Pacific Mobile phone market is 6.4%. Considering the fact that India and China have almost comparable populations, India s low mobile penetration offers huge scope for growth. The Key players in the Telecom Market in India are Nokia, Motorola, Samsung, LG and Sony Ericsson. Objectives of the study 1. To assess the student preference level associated with different mobile phones. 2. To know the students satisfaction towards the various mobile phones. 3. To assess the factors influencing decision-making in purchasing a mobile phone. 4. To find out the impact of advertisement media on the buying decision of students. Method > RJSSM: Volume: 4, Number: 1, February 215 Page 129

3 We have taken a sample of 25 students in and around Visakhapatnam of India who belongs to graduation and post graduation consists of this sample unit. While selecting the sampling technique we have followed simple random technique as the get the students is not an easy task as they would be busy in their studies of different classes. Thus, the data was collected both from primary data with a questionnaire and secondary data from other sources. Analysis 1. Sex ratio of the respondents Table-1 Male Female The above table shows that out of the 25, 139 were male and 111 were female. 2. Occupation of the Family Table-2 Service Professional Business Others Total Male Female This graph shows various occupations of the 25 respondents. Service Professional Business Others 3. Income level of the respondents family Table-3 (In Indian Rupees) Less than 15, ,1-25, ,1-35, & above Total > RJSSM: Volume: 4, Number: 1, February 215 Page 13

4 Less than 15, 15,1-25, 25,1-35, 35,1 & above The above graph shows that the level income of the 25 respondents. 4. Educational Background of the Respondent s parents Table High school Intermediate Graduate Post graduate Other Total Highschool Intermediate The above graph shows the Educational Background of the Respondent s parents out of the 25 respondents. 5. Which mobile phone you are using? Table-5 S.No Brand Name Percentage 1. Nokia Samsung Sony Ericson LG Motorola Others Total Graduate Post Graduate Other with Various Mobile Phones Nokia Samsung Sony Ericson The above graph shows the brand preference out of the 25 respondents. LG Motorola Others No of the respondents Percentage of > RJSSM: Volume: 4, Number: 1, February 215 Page 131

5 6. How long you are using the mobile phones? Table-6 S.No Time Period of using the Percentage mobile phones 1. Less than 1 year years years Above 4 years Total on the basis of usage time period Less than 1 year 1-2 year 2-4year Above 4 year The above graph shows the Time Period of using the mobile phones out of the 25 respondents 7. How often do you change your mobile phone? Table-7 S.No. Frequency of changing the mobile phones Percentage 1. Less than 1 year years years Above 4 years 6 24 Total Less than 1 year on the basis of frequency of changing the mobile phones 1-2 year 2-4year Above 4 year The above graph shows the Frequency of changing the mobile phones. 8. What will you be willing to pay for a mobile phone by respondents. Table-8 Less than 1, , to 2, ,1 to 4, 15 6 Any amount Total Less than 1,1-2,1- any 1, 2, 4, amount The above graph shows the consumer willingness to pay of the 25 respondents. > RJSSM: Volume: 4, Number: 1, February 215 Page 132

6 9. Consider the TV advertisement you like most what brand is it promoting by respondents. Table-9 Nokia Samsung Sony Ericson LG Motorola Iphone 2.8 Blackberry Other 2.8 Total NOKIA Samsung Sony Ericson The above graphs represents the TV advertisement out of the 25 respondents LG Motorola Pearson's chi-squared test (χ2) The usage of Pearson's chi-squared test (χ2) is a statistical test applied to sets of categorical data to evaluate how likely it is that any observed difference between the sets arose by chance by many researchers. According to Gosall, it is suitable for unpaired data from large samples (Gosall, Narinder Kaur Gosall, Gurpal Singh (212). As per Karl Pearson, the Chi-squared test's properties were first investigated by Karl Pearson in 19. Chi- square analysis on the relationship between gender and time period of usage the mobile phone. Gender Less than 1 year 1-2 year 2-4 year Above 4 year Total Male Female Total Iphone 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. E (O-E)2 (O-E)2/E O E Blackberry Others > RJSSM: Volume: 4, Number: 1, February 215 Page 133

7 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 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 ( In Indian Rupees) Less than 1, 1,- 2, 2,- 4, 4, & above Less than 15, , 25, ,- 35, , & above Total 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 = 14.7 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. > RJSSM: Volume: 4, Number: 1, February 215 Page 134

8 Chi-square analysis on the relationship between Gender and frequency of changing the mobile phones Gender Less than 1 year 1-2 year 2-4 year Above 4 year 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 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. Findings It was found that Nokia is the most favorite brand of the college student. 35% of students change their mobile phones within 1 to 2 years. 3% of students are using the mobile phones since last 1 to 2 years. 51% of students are ready to pay for a mobile phone less than 1, as per their family income. 49% of students like the Nokia advertisement most. Most favorite brand among the college students is Nokia and the least favorite brand is LG. Appearance, Price, Brand Image and advertisement are the important factors for the students while purchasing mobile phones. Conclusion The brand preferences of students on key features like the mobile should be slim, medium in weight and large in size handset. The brand preference of students are strongly influenced by advertisements on television. The companies like Nokia should provide better service and try to solve the hanging problem and Cellular companies should increase the awareness about the 3G service. LG and Samsung should try to expand its market share and also should try to increase the awareness through the television advertisement. Consumers do not get satisfied with the promotional policies of the companies. New techniques of promotion is required to create awareness about the entire range of companies products. The future researchers can widen the scope the study to get accurate results. References: 1. Doyle, P. (1989). Building successful brands: the strategic options, Journal of Marketing Management, 5(1), De Chernatony, L. and McDonald. M. (23). Creating Powerful Brands, Elsevier, Butterworth Heinemann. > RJSSM: Volume: 4, Number: 1, February 215 Page 135

9 3. Evans, Franklin B. "Psychological and Objective Factors in the Prediction of Brand Choice: Ford versus Chevrolet," Journal of Business, 32 (October 1959), Festinger, Leon. "Behavioral Support for Opinion Change, "Public Opinion Quarterly, 28 (Fall 1964), Farquhar, P. H. (199). Managing brand equity, Journal of Advertising Research, 3(4), Gosall, Narinder Kaur Gosall, Gurpal Singh (212). Doctor's Guide to Critical Appraisal. (3. ed.). Knutsford: PasTest. pp ISBN Heikki, Jari et.al (25): Factors Affecting Consumer Choice of Mobile Phones: Two Studies from Finland: Journal of Euro marketing, Vol. 14(3) Khurana,S.(211).Buying Behavior and Brand awareness in GSM Mobile handset Sector: An empirical Study. Journal of Applied Management & Computer Science- ISSN No. ( ), Volume Kildegaard, Ingrid and Lester Krueger. Are There Consumer Types? New York: Advertising Research Foundation, Koponen, Arthur. "Personality Characteristics of Purchasers, "Journal of Advertising Research, 1 (September 196), Mei-jian, Haibo&Qoing ( 212) : Canadian Subject Form: Consumer behavior: international Journal of Business Research, Pearson, Karl (19). "On the criterion that a given system of deviations from the probable in the case of a correlated system of variables is such that it can be reasonably supposed to have arisen from random sampling". Philosophical Magazine Series 5 5 (32): doi:1.18/ Tucker, W. T. and John J. Painter. "Personality and Product Use," Journal of Applied Psychology, 45 (October 1961), Wong, H.Y. and Merrilees, B. (27). Multiple roles for branding in international marketing, International Marketing Review, 24(4), > RJSSM: Volume: 4, Number: 1, February 215 Page 136