CONSUMERS ATTITUDE TOWARDS MOBILE PHONE SERVICES IN PUDUCHERRY

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1 CONSUMERS ATTITUDE TOWARDS MOBILE PHONE SERVICES IN PUDUCHERRY Dr.K.KARPAGAM Associate Professor and Research Supervisor, Department of Commerce, KanchiMamunivar Centre for Post Graduate Studies, Puducherry , R.GOVINDAN Lecture in Department of Commerce, Fist College, Puducherry , ABSTRACT Mobile phones have become a necessity for many people throughout the world. The ability to keep in touch with family, business associates, and access to are only a few of the reasons for the increasing importance of mobile phones. This study deals with mobile phone consumers on three dimensions, namely, on Product feature, Service factors and Awareness on impact. This study has covered the geographic area of one of the Union Territories of India, Viz; Puducherry, Though there are four regions in Puducherry, viz; Karaikal, Mahe, and Yanam the study covered only puducherry. The questionnaires were given to 125 respondents. 120 questionnaires were complete in all respects. Statistical tests like Pearson s Chi-square test and Factor analysis, t-test, correlation, ANOVA,Garrott s Ranking have been used. This article highlights consumers towards mobile phone services in Puducherry. KEYWORDS :Mobile Phones, Product Features, Service Factors, Awareness on Impact of Mobile Phone. INTRODUCTION Mobile phones are the perfect way to stay connected with others and provide the user with a sense of security. In the event of emergency, having a mobile phone can allow one to reach you quickly and could possibly save lives. However, the importance of mobile phones goes way beyond personal safety. Modern mobile phones are capable of internet access, sending and receiving photos and files, and some mobile phones are equipped with GPS technology, allowing for use in most locations around the world and allowing the mobile phone to be found or the user located in the event of loss or emergency OBJECTIVES OF THE STUDY To understand the concept of consumer. To determine the nature of consumers responses on the select three dimensions, viz; Product features Service factors and Awareness on impact. To rank the consumers priority on product features and services factors. LITERATURE REVIEW Khan and Rohi(2013), determined all those factors which affect the youth s brand choice for purchase of mobile phones. The authors found that quality, brand image and recommendations by family and friends were the key variables that influence the brand and recommended that marketers should consider and prioritize these three main factors especially when targeting the younger consumers. Page 64

2 Mokhils and Yaakop (2012), conducted factor analysis test which resulted in seven independent dimensions innovative features, image, price, personal recommendation, durability and portable aspects, media influence, and post-sales service. The author said that the top three most important factors influencing consumer choice of mobile phone handsets were innovative features, recommendation and price. Bassey, et al (2011), identified how students of university make decision for purchasing mobile phone in Jordan. They are price and brands conscious. They are confused to try new brand. He also mentioned that there is a difference of mobile phone selection between the male and female students of Jordan.Goliama (2011), found that young people over the world are known to be Leapfrogging over their PC straight to the mobile phone as their first screen for entertainment, communication and social interaction. Singla and Bansal (2010), identified and compared key attributes that influence mobile phone users who wanted their handsets to be loaded with multiple functions, entertainment being the most important among them. They wanted their mobile phones to be fully loaded with top end features, but at the same time they wanted all these at affordable costs. Cooil et al., (2007), found that age was a determinant which influences consumer s buying behavior and businesses can use these to segment the market. There are products or services for the youth and others for adults. Blackwell et. al., (2006) 26, said that consumer behavior consists of the activities and processes in which individuals or group choose, buy, use or dispose products, services, ideas or experiences. Subhasis Ray and Avisheksarkar (2006), concluded that though the schemes and offers helps to attract customers, it was the brand that ultimately reigns in decision-making.stevens A and Paul Dao (1997), concluded that there was evidence that the use of mobile phone while driving impaired driving performance and there was evidence of an association between mobile phone users (even of the hands-free type) while driving and higher accident occurrence. BertilNaslund (1979), using empirical data, had shown that advertising should be concentrated at the early part of the product life cycle. RESEARCH METHODOLOGY Research design This is an empirical study. Both primary data and secondary data have been used for the study. The questionnaires using 5 point Liker Scale had been framed to cover the select 3 dimension, viz, Product features, Service factors, and Awareness on impact. The questions on Product features were classified into Size, Shape, Ease in use, Security, sufficient capacity of Batteries in a cell, dualsim, sound, video, brand image, quality, special features, weight, Multifunctional settings, longetivity in set, battery capacity, resale value, special ring tones, after sales services, appearance, cost, prestige, communication, camera. The questions on Service factors were Discount, Exchange offers, gift, financial schemes, low rent, free SMS, high Talk time, low internet cost, proper billing, constant tariff trades, sufficient tower capacity, small recharge vouchers, signal, satisfactory roaming charges, price, offers, call forwarding and devotional alarm. The questions based on Awareness on impact were social, psychological, physical and environmental factors. Each statement has been framed on a positive note. The responses have been scaled at 5 levels. The first 3 responses strongly agree, agree, and agree to some extent, have been taken as positive responses, while the other 2 responses disagree and strongly disagree have been taken as negative responses. Population The study has covered Pondicherry region. Though there are for non-contiguous areas in Puducherryviz,Puducherry, Karikal, Mahe and Yanam, the study has considered only Puducherry region. Puducherry is a former French colony. It is known as the French Riviera of the East. It has a population of 9,50,289(2011 census) with an area of 492sqkm. Its literacy rate is 85.44%. Sample The questionnaires were given to 125 respondents. 120 questionnaires were complete in all respects. There were 88 urban and 32 rural respondents. The respondents were contacted by approaching them in various mobile recharge centres and mobile phone shops.convenient sampling was adopted to identify the respondents. TOOLS USED The mean scores were computed on the basis of mobile phone consumer responses. The scores were divided into 2 types of, viz, positive and negative. For each question, if the mean score was3 and above, it was taken as positive and if the mean score was less than 3 it was taken as a negative. t-test was used to compare the nature of urban and rural mobile phone consumers responses on the select 3 dimensions, viz, product features, service factors, and awareness on impact of mobile phones.correlation had been used to explore the relationship among the select 3 dimensions, Viz, product features, service factors, and awareness on impact of mobile phones. Chi-square test was carried out to find out the association between demographic variables and the s of consumers on select 3 dimensions,product features, service factors, and awareness on impact of mobile phones.one way analysis of variance had been used to find out the influence of demographic variables on the select three dimensions - product features, service factors and awareness on impact of mobile phones.garrett s Ranking had been used to rank the priority given by mobile phone consumers on product features and service factors.factor Analysis has been used to identify the factors which dominate the consumer in choosing the mobile phone. Page 65

3 HYPOTHESES Ho1a: The mobile phone consumers do not have a positive on product Features and service factors Ho1b: The mobile phone consumers do not have an awareness of impact of mobile phones Ho2: There is no influence of demographic variables on the select three dimensions. Ho3: There is no ranking of priority factors by the consumers Ho4: There is no factor which influences the choice of a mobile phone Table 1 Profile of Respondents Age (in years) No. of Respondents Income (in Rs.) No. of Respondents Below Below Rs. 10, Rs.10,000 -Rs.30, Above 50 4 Above 30, Education No. of Respondents Occupation No. of Respondents Upto school 35 Self-employed 8 Degree 43 Private employee 59 Above degree 42 Home-maker 7 Unemployed 4 Student 39 Government employees 3 Gender No. of Respondents Place of living No. of Respondents Male 89 Urban 88 Female 31 Rural 32 The study aimed to choose the sample, to be representative of the population. Hence, out of 120 respondents, 88 were urban, and 32 were rural. Similarly, on the demographic variables such as age and gender, education, income and occupation, the sample consisted of respondents belonging to different age groups and sufficient numbers of males and females were included Table 2 Relationship between Demographic Factors and Nature of Attitude on Product Features Age(in years) Positive Gender Positive Less than 30 48(60.76) 31(39.24) Male 53(59.53) 36(40.45) (64.86) 13(35.14) Female 22(65.56) 9(34.44) More than 50 3(75) 1(25) Total Total Income(in Rs.) Positive BelowRs10,000 45(62.5) 27(37.5) Rs10,000-19(55.88) 15(44.12) Rs30,000 Above Rs30,000 11(78.57) 3(21.43) Total Occupation Positive Education Positive Self-employed 4(50) 4(50) Up to school 22(62.86) 13(37.14) Private employee 41(69.49) 18(30.51) Degree 28(65.12) 15(34.88) Home makers 4(57.1) 3(42.9) Above degree 25(59.52) 17(40.48) Unemployed 1(25) 3(75) Student 23(58.9) 16(41.1) Government 2(66.67) 1(33.33) employee Total Total It was found that 60.76% of respondents in the age group of less than 30 years have positive on product features. In the age group of 30-50, 64.86% of respondent were having a positive. It was found that 75% of respondents in the age of Page 66

4 more than 50 were having a positive. It is found that 59.53% of males were having a positive and. Among the female respondents 65.56% were having a positive. It is found that of the respondents who were earning below Rs.10, 000per month, 62.5% were having a positive. Of the respondents earning income of Rs.10,000-Rs.30,000 per month, 55.88% were having a positive.among the respondents who were earning above Rs.30,000per month 78.57% were having positive. It was found that 62.86% of respondents, who had studied up to school level, have positive on product features. Of the respondents having a degree % were having a positive. It was found that of the respondents who were educated above degree level, 59.52% were having a positive. Among the self-employed respondents, 50% were having a positive on product features. Among the private sector employee, 69.49% had a positive. Among the homemakers, 57.1 had a positive. Table 3 Relationship between Demographic Factors and Nature of Attitude on Service Factors Age(in years) Positive Gender Positive Less than 30 47(59.5) 32(40.5) Male 46(51.68) 43(48.32) (40.5) 22(59.5) Female 19(61.29) 12(38.71) More than 50 3(75) 1(25) Total Total Income(in Rs.) Positive BelowRs10,000 38(52.78) 34(47.22) Rs10,000-18(52.94) 16(47.06) Rs30,000 Above Rs30,000 9(64.29) 5(35.71) Total Occupation Positive Education Positive Self-employed 4(50) 4(50) Up to school 11(31.43) 24(68.57) Private employee 34(57.6) 25(44.07) Degree 25(58.14) 18(41.86) Home makers 3(42.86) 4(57.14) Above degree 29(69.05) 13(30.95) Unemployed 2(50) 2(50) Student 20(51.28) 19(48.72) Government 3(75) 1(25) employee Total Total It was found that 59.5% of respondents in the age group of less than 30 years have positive on service features. In the age group of 30-50, 40.5% of respondent were having a positive. It was found that 75% of respondents in the age of more than 50 were having a positive, gender and the nature of of respondents on service features. It is found that 51.68% of males were having a positive and. Among the female respondents 61.29% were having a positive. It is found that of the respondents who were earning below Rs.10, 000per month, 52.78% were having a positive. Of the respondents earning income of Rs.10,000-Rs.30,000 per month, 52.94% were having a positive.among the respondents who were earning above Rs.30,000per month 64.29% were having positive. It was found that 31.43% of respondents, who had studied up to school level, have positive on service features. Of the respondents having a degree 58.14% were having a positive. It was found that of the respondents who were educated above degree level, 69.05% were having a positive. The self-employed respondents, 50% were having a positive on service features. Among the private sector employee, 57.6% had a positive. Among the homemakers, % had a positive. The hypothesis, Ho1a: The mobile phone consumers do not have a positive on product Features and service factors is rejected. The mobile phone consumers have a positive. Page 67

5 Table 4 Relationship between Demographic Factors and Awareness of Impact of Mobile Phone Age(in years) Aware Not aware Gender Aware Not aware Less than 30 50(63.29) 29(36.71) Male 53(59.55) 36(40.45) (54.05) 17(45.95) Female 19(61.29) 12(38.7) More than 50 2(50) 2(50) Total Total Income(in Rs.) Aware Not aware BelowRs10,000 43(59.72) 29(40.28) Rs10,000-19(55.88) 15(44.12) Rs30,000 Above Rs30,000 10(71.43) 4(28.57) Total Occupation Aware Not aware Education Aware Not aware Self-employed 2(25) 6(75) Up to scho1ol 19(55.88) 16(44.12) Private employee 40(67.8) 19(32.2) Degree 24(55.8) 19(44.2) Home makers 3(42.86) 4(57.14) Above degree 29(69.05) 13(30.95) Unemployed 1(25) 3(75) Student 24(61.54) 15(38.46) Government 2(66.67) 1(33.33) employee Total Total It was found that 63.29% of respondents in the age group of less than 30 years are aware on impact of mobile phones. In the age group of in, 54.05% of respondent are aware. It is found that 59.55% of males are aware. Among the respondent aged above 50 years, 50% of respondent are aware of impact of mobile phone. Among the female respondents 61.29% are aware. It is found that of the respondents who were earning below Rs.10, 000per month in 59.72% are aware. Of the respondents earning income of Rs.10, 000-Rs.30, 000 per month, 55.88% are aware. Among the respondents who were earning above Rs.30, 000,71.43% are aware. It was found that 55.88% of respondents, who had studied up to school level, are aware on impact of mobile phone. Of the respondents having a degree 55.8% of respondent are aware It was found that of respondents who were educated above degree level 69.05% are aware impact on mobile phone. Among the self- employed respondents, 25% are aware. Among the private sector employees, 67.8% are aware. Among the homemakers, 42.86% are aware. Among the unemployed respondents, 25% are aware. The hypothesis, Ho1b: The mobile phone consumers do not have an awareness of impact of mobile phones, is rejected.the mobile phone consumers are aware of impact of mobile phones. Table 5 Influence of Demographic Variables on the Consumer Attitude towards Mobile Phone Demographic variables Variables Age Income Gender Occupation Education Product features Service factors Awareness on Impact Overall As the significance values are above 0.05, the null hypothesis is accepted. There is no influence of demographic variables on the on product features, service factors and awareness impact. The hypothesis, Ho2: There is no influence of demographic variables on the select three dimensions is accepted. Demographic variables do not have an influence on the select three dimensions. Table 6 Garrott s Ranking of Product Features and service feature Product features Ranking Service factors Ranking Communication 1 Reasonable Charges 1 Prestige 2 Roaming Charges 2 Cost 3 Small Recharge 3 Battery Capacity 4 Exchange Offer 4 Longevity 5 Billing 5 Page 68

6 Each respondent was instructed to indicate the importance of influencing factor by giving rank 1 to the most important factor, rank 2 to second most important factor and so on. Based on the ranks assigned by respondents, the order of importance of factors influencing the respondents is identified. For this purpose Garrott s ranking technology has been followed. The score is calculated as=100(rij-0.5) Nij Rij= Rank given for i th item by jth individual. Nij= Number of items ranked by the j th individual. The scores for each item for product features - size, shapes, easy to use, security, sufficient batteries, dual Sim, sound, video, branding, quality, special features, weight, multifunction, longevity, battery capacity, resale value, special ringtone, after sales service, appearance, cost, prestigious, communication and camera are calculated. The score values fx is calculated for each factor by multiplying the no. of respondent (f) with respondents score values. For each factor, the total scores are found by adding the score values. The mean score is calculated to know the order of preference. Based on the mean scores,the ranks are assigned for factors. The scores for each item for service factors- discount, exchange offers, gift, financing scheme, rent, free SMS, talking time, internet cost, billing, tariff, tower capacity, recharge voucher, signal, roaming charges, reasonable charges, offers, call forwarding, alarm are calculated. The score values fix is calculated for each factor by multiplying the no. of respondent (f) with respondents score values. For each factor, the total scores are found by adding the score values. The mean score is calculated to know the order of preference. Based on the mean scores, the ranks are assigned for factors. The hypothesis, Ho3: There is no ranking of priority factors by the consumers is rejected. Table7 Factor Analysis showing factor influencing consumer on Product Features and service factors Product features After sales services.803 Appearance cost Sound.500 Video.840 Branding.741 Longevity.814 Battery capacity.804 Eigen value Cumulative % Factors labels Rationality Capacity Economic factors Services factor Billing Tariff.999 Tower capacity.744 Free sms Talking time Roaming charges Reasonable charges Eigen value Cumulative % Factor label Cost related Message related Charges-related Source: Computed from Primary data It is found that there are 3factor solutions- Rationality, Capacity and Economic factors of product features. Both factors together account for (68.731) % percent of the essence of the original data set between the three factors, After sales services, Appearance&cost are highly loaded with first factor whereas items sound, video & branding are highly loaded with second factorand longevity and battery capacity are highly loaded with third factors. It is found that there are three factor solution- cost-related, messages- related, charges-related of service factors. Both factors together account for (66.091) % percent of the essence of the original data set between the three factors, billing, tariff and tower capacity are highly loaded with first factor whereas items free SMS and talking time are highly loaded with second factor and roaming charges and reasonable charges are highly loaded with third factors. The hypothesis, Ho4: There is no factor which influences the choice of a mobile phone is rejected. Page 69

7 FINDINGS General Findings Customers are well-informed. They compare the products from various angles Competition has become severe. Technology has evolved fast which is accessible to many. Sellers are forced to acquire knowledge at faster pace Cost per transaction has been cut short. Specific Findings It is found that 62.5% of respondents have a positive on product features. Among the respondent below the age of 30, 60.76% are have the positive altitude, 64.86% the people in the age group of are having a positive, 75% of the respondents above the age of 50 are having positive. Among the urban respondents, 65.56% of females and 59.53% of males are having positive on product features of respondents earning more than Rs. 30,000 per month are having a positive than others this could be because they buy costly mobile phones When education level is considered, 59.62% of the graduates in urban areas are having a positive 66.67% of government employees and 69.49% private employees are having a positive It is found that 54.17% of respondents have a positive s on service factors. 100% the respondents above the age of 50 are having positive 59.5% ofthe people in the age of less than 30are having a positive % of females and 51.68% of males arehaving a positive on service factors 56% respondents earning less than Rs.10, 000 per month arehaving a positive Of the people who are earning more than Rs. 30,000 per month, are having a positive than others. When education level is considered, 69.05% of the post graduates are having a positive. 100% of the government employees and 60% of private employees arehaving a positive. 100% the respondents above the age of 50 are more aware than others, whereas in the case of rural respondents, 73% the people in the age group of are aware of impact. The 81% of respondents earning more than Rs. 30,000 per month are more aware of impact0% of both male and female respondents were equally awareness of impact. When education level is considered, 65% of the post-graduates are more aware than others % of the government employees and 57.6 % of private employees are more aware Limitation The study has been confined to Puducherry. The other three regions Karikal, Mahe, and yanam have not been in included due to their low demographic profile. SUGGESTIONS Sleek, handy models are preferred by young consumers. Hence, new models even with slight alteration are likely to increase sales. As cost is not a limiting factor, especially, for young consumers, models can be sold at a higher price, if a new feature is added. As consumers are ready to switch over to new models after a short period, it is not necessary to offer durable products. Since the product is used by all the consumers irrespective of their level of education, it will be better if manual is available in local language A number of offers may be provided to senior citizens to attract them. CONCLUSION The present day society can be rightly called as the mobile information society. The spurt in mobile technology, the boom in mobile sale and the multiplicity of application areas has indeed been unprecedented. The task faced by the mobile service providers is to focus on those activities that result in meeting or exceeding customer expectations. They are being increasingly confronted with the challenges to attract their subscribers by providing high quality of services. In less than two decades, the mobile phone has converted itself from being a status symbol to an absolute necessity that facilitates almost every transaction in our day to day life. It is now up to the seller to utilize the vast Indian market to the optimum extent, more than ever. REFERENCES 1. Khan &Rohi Investigating the Factors Affecting Youth brand Choice for Mobile Phones Purchase-A study of Private Universities Students of Peshwar: Management & Marketing challenges for the Knowledge Society: Vol. 8., No Mokhils.S&A.Y.Yaakop Consumer Choice Criteria in Mobile Phone Selection: An Investigation of Malaysian University Students; International Review of Social Sciences and Humanities; Vol.2., No Bassey, M. A., Aboagye-Asamoah, F., Nsiah-Ababio, P., Sarpong, P. N. A., &Obeng-Tuffoh, I Branding Strategies and its influence on the Consumer Preference in the Telecommunication Industry: A Case study of Mobile Phone users in Page 70

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