Factors affecting the purchase decision of High-end mobile phones and those affecting the purchase of Apple i-phones

RESEARCH METHODOLOGY PROJECT SUBMITTED TO Dr. Sumi Jha

Narsee Monjee Institute of Management Studies, Mumbai Prepared by: 112 - Deon Fernandes 158 - Ankur Mohindra (I Year - FT MBA Div.B- 2007-08)

Acknowledgements
We are very grateful to Prof. Dr. Sumi Jha who gave us the opportunity to work on this
Research Methodology project. It was through the project that we got An opportunity to implement the theory learnt in the class and gain a deeper insight in the subject. The project was of a great help not only in clarifying our concepts but also giving us insights

of the industry as a whole.

We would also like to thank the 75 respondents for co-operating with us to make the

study meaningful and sharing their views & opinions.

Table of Contents
1. Introduction 1.1 Problem Statement 1.2 Research Objectives 1.3 Research Scope 2.1 Variables 2.2 Operational definitions 2.3 Theoretical Framework 3. Literature Survey 4. Hypothesis 5. Research Methodology 6. Sampling 7. Results 8. Hypothesis results and Interpretation 9. Conclusions 10. Recommendations 11. References 12. Questionnaire. 3 3 3 3 3 4 5 7 10 12 12 13 29 33 34 35

1. Introduction
1.1 Problem Statement What are the factors affecting the purchasing decision of high-end mobile phones in India?

1.2 Research Objectives:

1. To study the factors such as quality of camera, music player, memory size etc. that affect the Purchase decision of high-end mobile phones in India. 2. To study the brand awareness of Apple products in India. 3. To study the factors which cause a significant impact in the mind of the consumers buying Apple -phones.

1.3 Research Scope

The research would be based on the study of the Indian Mobile phone market through secondary analysis. The primary research will be done mainly taking Mumbai as the base and the results will be extrapolated over the country (major metros).

2.1 Variables
The main variables involved in the study of High End Mobile Phones are: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Camera Music Player Memory Size Robustness Looks Service offered User Friendly Interface Internet/ Email Other Utilities Price of Mobile Phone

The main variables involved in the study of Apple iPhone are: 1. Cool Looks 2. Good Interface 3. Sophistication 4. Touch Screen 5. Music Quality 6. Brand Name 7. Quality of Service 8. Different Offerings compared to other products 4

9. Willingness to purchase iPhone The variables are categorized into the following different types of variables High end Mobile Phones

Independent variable Camera Music Player Memory Size Robustness Looks Service offered User Friendly Interface Internet/ Email Dependent variables: Price of Mobile Phone Apple iPhone

Independent variable Cool Looks Good Interface Sophistication Touch Screen Music Quality Brand Name Quality of Service Different Offerings compared to other products Dependent variables: Willingness to purchase iPhone

2.2 Operational definitions

H igh End Mobile Phone here means Multimedia phones in the price range of Rs. 7000 to Rs. 20000 which have features ranging from Camera, Music Player, Data transfer features, Internet etc. ophistication here refers to the fragility of the product as measured by the material used and weight of the phone. 5 U S

niqueness here refers to the product attributes considered exclusive by the customer. Looks here refer to the perception of the product by the consumer as associated with a high society product.

2.3 Theoretical Framework

The relationship of independent variables on the price of the phone paid by high-end mobile users. Camera Music Player Memory Size

Robustness Looks

Price

Service offered

User Friendly Interface Internet/ Email Other Utilities

The relationship of independent variables on the purchase decision made by high-end mobile users.

Cool Looks Good Interface Sophistication Touch Screen Music Quality Brand Name Quality of Service Different Offerings as compared to other products Willingness to Purchase iPhone

3. Literature Survey
Players and offerings in High end Mobile phone market
In the High end Mobile phone market the need of different customers is based on their profile. A business user who has to check his/her mails regularly while traveling would go for phones like Blackberry, O2 etc. In contrast, a user who purchases phone for day to day use would go for multimedia features in a phone. The major phones which are currently being sold in these segments are Nokia N series (especially N70) and Sony

Erickson Walkman Series.

In the Indian scenario currently the high end mobile phone market is dominated mainly by users who purchase phones for its multimedia features rather than its PDA and

Internet/email capabilities (as per pilot survey). Hence given this scenario the market for
this segment is dominated by 2-3 players i.e. Nokia, Sony Ericsson and Motorola (as per the pilot survey conducted on the salesperson). Depending on the budget of the consumer the salesmen suggest them either Nokia or Sony Erickson. For a budget range of Rs. 1522 K a salesman would suggest a Sony Erickson walkman series phone and for a higher range they would suggest Nokia N Series as according to them the features offered by Nokia N series along with the music quality are the best in this segment. Hence given the current scenario the major competitor for Apple iPhone are Nokia N Series and Sony

Ericsson Walkman Series phones. Comparison of Apple iPhone with current high end mobile phone offerings
These high end mobile phones being offered by these players already have many features comparable to Apple iPhone and also many more models are expected to be launched over the next 1 year which can give direct competition to Apple iPhone. Hence by the time Apple iPhone is launched in India it will already have substantial competition in the

mobile phone handset market.

Following is a comparison of various cell phones existing in current handset market (offered by various players) with respect to Apple iPhone (Source: Secondary data

research done using information from websites of various players).

Competitive edge of Apple iPhone The factors which will set Apple apart from other competitors will be its significant brand
value which will create curiosity among the consumers. Also the novelty factor (with respect to some new features being introduced like touch screen keypad), combination of iPod, cell phone, camera still and video, ease of use (scrolling, imaging features), internet navigator and large memory storage will help Apple iPhone with enhanced sales

of iPhone. In order to test the above reasoning, the primary research was carried out, to test whether the factors such as the brand name, the good interface, the service of Apple would affect the purchasing decision of i-phones. Also as the Indian customer had not had an i-phone experience we carried out the study to see which factors would affect the purchasing decision of i-phones in India.

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4. Hypothesis
In this section we develop hypotheses derived from the research questions. 1. H0: There is no significant relation between the need of a camera and the price of the mobile handset. H1: There is significant relationship between the need of a camera and the price of the mobile handset. 2. H0: There is no significant relation between the need of a music player and the price of the mobile handset. H1: There is significant relationship between the need of a camera and the price of the mobile handset. 3. H0: There is no significant relation between the need of huge memory size and the price of the mobile handset. H1: There is significant relationship between the need of huge memory size and the price of the mobile handset. 4. H0: There is no significant relation between the robustness of the handset and the price of the mobile handset. H1: There is significant relationship between the robustness of the handset and the price of the mobile handset. 5. H0: There is no significant relation between the looks of the handset and the price of the mobile handset. H1: There is significant relationship between the looks and the price of the mobile handset. 6. H0: There is no significant relation between the service offering of the handset and the price of the mobile handset. H1: There is significant relationship between the service offering and the price of the mobile handset. 7. H0: There is no significant relation between the importance of user friendly interface and the price of the mobile handset. H1: There is significant relationship between the importance of user friendly interface and the price of the mobile handset. 8. H0: There is no significant relation between the need of user internet and email service and the price of the mobile handset. H1: There is significant relationship between the need of user internet and email service and the price of the mobile handset. 9. H0: There is no significant relation between the need for utilities and the price of the mobile handset. 11

H1: There is significant relationship between the need for utilities and the price of the mobile handset. 10. H0: There is no significant relationship between the looks of apple products and the purchase decision of i-phones. H1: There is significant relationship between the looks of apple products and the purchase decision of i-phones. 11. H0: There is no significant relationship between the good interface of apple products and the purchase decision of i-phones. H1: There is significant relationship between the good interface of apple products and the purchase decision of i-phones. 12. H0: There is no significant relationship between the sophistication of apple products and the purchase decision of i-phones. H1: There is significant relationship between the sophistication of apple products and the purchase decision of i-phones. 13. H0: There is no significant relationship between the importance of touch-screen of iphones and the purchase decision of i-phones. H1: There is significant relationship between the importance of touch-screen of iphones and the purchase decision of i-phones. 14. H0: There is no significant relationship between the importance of music quality of i-phones and the purchase decision of i-phones. H1: There is significant relationship between importance of music quality of iphones and the purchase decision of i-phones. 15. H0: There is no significant relationship between the brand name of apple products and the purchase decision of i-phones. H1: There is significant relationship between the brand name of apple products and the purchase decision of i-phones. 16. H0: There is no significant relationship between the quality of service of apple and the purchase decision of i-phones. H1: There is significant relationship between the quality of service of apple and the purchase decision of i-phones. 17. H0: There is no significant relationship between the uniqueness of apple products and the purchase decision of i-phones. H1: There is significant relationship between the uniqueness of apple products and the purchase decision of i-phones.

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5. Research Methodology
Questionnaire: The questionnaire consisted of 20 questions in all. It was divided into 5 segments: Demographic information Consumer behaviour for mobile phones Variables rating for factors responsible for Purchase of High End mobile phone Brand Awareness of Apple and its products Factors responsible for Purchase of Apple iPhone

The ranking and rating scale was used to determine the independent and dependent variables. Reliability: We tested the reliability for the questionnaire by taking into account the independent variables. On using the Cronbachs Alpha test the reliability was found to be 0.492.

6. Sampling
Target Population: - Young individuals in the age group of 25 to 40 years who forms the major buying population of high end mobile phones. They come from the upper middle class segment and have good source of income. Sampling Frame: - Written Questionnaires as well as few online questionnaires were circulated to the target audience in Mumbai City. Sampling Technique: - Convenience sampling was used with proper spread across target population ensuring proper representation of the target population. Sample Size: - 75
Execution: - 60 questionnaires were filled by the respondents personally and 15 questionnaires were uploaded on the internet. Response Rate: All the 60 questionnaires which were asked to be filled personally were filled with only 4 being bogus as the data filled was not proper.Out of the 15 online surveys asked, only 9 were filled in the proper format and rest were invalid.

7. Results

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Demographic Data:
Age of the respondent Cumulative Frequency Valid Less than 18 18-25 25-30 30-35 Total 2 36 18 4 60 Percent 3.3 60.0 30.0 6.7 100.0 Valid Percent 3.3 60.0 30.0 6.7 100.0 Percent 3.3 63.3 93.3 100.0

Gender Cumulative Frequency Valid Female Male Total 26 34 60 Percent 43.3 56.7 100.0 Valid Percent 43.3 56.7 100.0 Percent 43.3 100.0

Occupation of the respondent Cumulative Frequency Valid Business Service Self Employed Student Total 10 30 4 16 60 Percent 16.7 50.0 6.7 26.7 100.0 Valid Percent 16.7 50.0 6.7 26.7 100.0 Percent 16.7 66.7 73.3 100.0

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Annual Income Cumulative Frequency Valid Less than 2 Lakhs 2 - 5 Lakhs 5 - 10 Lakhs 10 Lakhs and above Total 16 10 22 12 60 Percent 26.7 16.7 36.7 20.0 100.0 Valid Percent 26.7 16.7 36.7 20.0 100.0 Percent 26.7 43.3 80.0 100.0

Correlation between price of mobile phone and independent variables of High-end mobile phones.

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Correlations Price paid for last purcha sed Price last phone Pearso Correlat ion .001 60.000 60 .000 60 .000 60 .022 60 .001 60 .016 60 .389 60 .000 60 .003 60 1.000 .421** .504** .732** -.295* .428** .310* -.113 .560** .381** nce of camera Importa Importa Importa nce of Size nce of ess Importa Importa nce of Looks offering phone Importa nce of player Importa nce of Importa User nce of and email nce of Utilities friendly Internet Importa e

music Memory Robustn nce of Service interfac

paid for n

purchas Sig. (2ed tailed) N Importa Pearso nce of n ion Sig. (2tailed) N Importa Pearso nce of music player n Correlat ion Sig. (2tailed) N Importa Pearso nce of Size n ion Sig. (2tailed) N Importa Pearso nce of n Robustn Correlat -.295* .000 60 Memory Correlat .732** .000 60 .504** .001 camera Correlat .421**

1.000

.234

.094

.035

.363**

.122

-.176

.138

.000

.072 60

.476 60

.793 60

.004 60

.354 60

.179 60

.292 60

1.000 60

60 60.000

.234

1.000

.462**

.070

.188

.024

.026

.396**

.208

.072 60 60.000

.000 60

.593 60

.149 60

.854 60

.844 60

.002 60

.110 60

.094

.462**

1.000

-.209

.312*

.181

-.071

.615**

.194

.476 60

.000 60 60.000 -.209

.110 60 1.000

.015 60

.167 60

.589 60

.000 60

.137 60

.035

.070

-.036

-.132

.238

-.175

.077

16

Correlations Price paid for last purcha sed Price last phone Pearso Correlat ion .001 60.000 60 .000 60 .000 60 .022 60 .001 60 .016 60 .389 60 .000 60 .003 60 1.000 .421** .504** .732** -.295* .428** .310* -.113 .560** .381** nce of camera Importa Importa Importa nce of Size nce of ess Importa Importa nce of Looks offering phone Importa nce of player Importa nce of Importa User nce of and email nce of Utilities friendly Internet Importa e

music Memory Robustn nce of Service interfac

paid for n

purchas Sig. (2ed tailed) N Importa Pearso nce of n ion Sig. (2tailed) N Importa Pearso nce of music player n Correlat ion Sig. (2tailed) N Importa Pearso nce of Size n ion Sig. (2tailed) N Importa Pearso nce of n Robustn Correlat -.295* .000 60 Memory Correlat .732** .000 60 .504** .001 camera Correlat .421**

1.000

.234

.094

.035

.363**

.122

-.176

.138

.000

.072 60

.476 60

.793 60

.004 60

.354 60

.179 60

.292 60

1.000 60

60 60.000

.234

1.000

.462**

.070

.188

.024

.026

.396**

.208

.072 60 60.000

.000 60

.593 60

.149 60

.854 60

.844 60

.002 60

.110 60

.094

.462**

1.000

-.209

.312*

.181

-.071

.615**

.194

.476 60

.000 60 60.000 -.209

.110 60 1.000

.015 60

.167 60

.589 60

.000 60

.137 60

.035

.070

-.036

-.132

.238

-.175

.077

17

Correlation between purchase decision of Apple i-phones and independent variables that affect the purchase of i-phones.

18

Correlations Quality Differen Would to of Good e of Apple s Sophisticati Products Touch of Apple s Music of Apple s Brand name of Apple s of of apple s t s from other s you like Looks Interfac purchas Apple iPhone Would you like to purchase Apple iPhone Pearson Correlatio n Sig. (2tailed) N Looks of Apple Products Pearson Correlatio n Sig. (2tailed) N Good Interface of Apple Products Pearson Correlatio n Sig. (2tailed) N Sophisticatio Pearson n of Apple Products Correlatio n Sig. (2tailed) N Touch Screen of Apple Products Pearson Correlatio n Sig. (2tailed) .013 .000 .001 .019 .001 .000 .000 .707 -.319* .485** -.407** -.302* 1.000 .429** .505** -.694** .050 .000 60 .000 60 .145 60 60.000 .019 60 .016 60 .002 60 .000 60 .032 60 .464** -.492** .190 1.000 -.302* -.310* -.385** .548** -.277* .000 60 .000 60 60.000 .145 60 .001 60 .009 60 .000 60 .000 60 .000 60 .678** -.751** 1.000 .190 -.407** -.335** -.760** .642** -.609** .000 60 60.000 .000 60 .000 60 .000 60 .057 60 .000 60 .000 60 .002 60 -.709** 1.000 -.751** -.492** .485** .247 .743** -.674** .385** 60.000 .000 60 .000 60 .000 60 .013 60 .403 60 .000 60 .000 60 .017 60 1.000 -.709** .678** .464** -.319* -.110 -.889** .604** -.307* s Screen Quality service offering

e Apple Product Product on of Apple Product Product Product product product

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Correlations Quality Differen Would to of Good e of Apple s Sophisticati Products Touch of Apple s Music of Apple s Brand name of Apple s of of apple s t s from other s you like Looks Interfac purchas Apple iPhone Would you like to purchase Apple iPhone Pearson Correlatio n Sig. (2tailed) N Looks of Apple Products Pearson Correlatio n Sig. (2tailed) N Good Interface of Apple Products Pearson Correlatio n Sig. (2tailed) N Sophisticatio Pearson n of Apple Products Correlatio n Sig. (2tailed) N Touch Screen of Apple Products Pearson Correlatio n Sig. (2tailed) .013 .000 .001 .019 .001 .000 .000 .707 -.319* .485** -.407** -.302* 1.000 .429** .505** -.694** .050 .000 60 .000 60 .145 60 60.000 .019 60 .016 60 .002 60 .000 60 .032 60 .464** -.492** .190 1.000 -.302* -.310* -.385** .548** -.277* .000 60 .000 60 60.000 .145 60 .001 60 .009 60 .000 60 .000 60 .000 60 .678** -.751** 1.000 .190 -.407** -.335** -.760** .642** -.609** .000 60 60.000 .000 60 .000 60 .000 60 .057 60 .000 60 .000 60 .002 60 -.709** 1.000 -.751** -.492** .485** .247 .743** -.674** .385** 60.000 .000 60 .000 60 .000 60 .013 60 .403 60 .000 60 .000 60 .017 60 1.000 -.709** .678** .464** -.319* -.110 -.889** .604** -.307* s Screen Quality service offering

e Apple Product Product on of Apple Product Product Product product product

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Regression of independent variables affecting the purchase decision of high-end mobile phones on the price of the handset.

Model Summary Std. Error of the Model 1 R .897a R Square .805 Adjusted R Square .770 Estimate .462

a. Predictors: (Constant), Importance of Utilities, Importance of camera, Importance of Robustness, Importance of Service offering, Importance of music player, Importance of Looks, Importance of User friendly interface, Importance of Internet and email, Importance of Memory Size

Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) Importance of camera Importance of music player Importance of Memory Size Importance of Robustness Importance of Looks Importance of Service offering Importance of User friendly interface Importance of Internet and email Importance of Utilities B -1.521 .280 .177 .541 -.151 .152 .119 Std. Error .490 .080 .088 .112 .052 .077 .058 .263 .152 .449 -.197 .155 .139 Coefficients Beta t -3.105 3.494 2.009 4.846 -2.874 1.971 2.049 Sig. .003 .001 .050 .000 .006 .054 .046

-.042

.054

-.057

-.769

.446

.028 .207

.071 .055

.034 .254

.385 3.790

.702 .000

a. Dependent Variable: Price paid for last phone purchased

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Regression of independent variables affecting the purchase decision of Apple iphones on the purchase decision of i-phones.

Model Summary Std. Error of the Model 1 R .923a R Square .851 Adjusted R Square .828 Estimate .315

a. Predictors: (Constant), Different offerings from other products, Music Quality of Apple Products, Brand name of Apple Products, Sophistication of Apple Products, Touch Screen of Apple Products, Looks of Apple Products, Quality of service of apple products, Good Interface of Apple Products

Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) Looks of Apple Products Good Interface of Apple Products Sophistication of Apple Products Touch Screen of Apple Products Music Quality of Apple Products Brand name of Apple Products Quality of service of apple products Different offerings from other products B 1.164 -.009 .102 Std. Error 1.528 .098 .062 -.010 .260 Coefficients Beta t .762 -.091 1.647 Sig. .450 .928 .106

.181

.062

.256

2.899

.006

.158

.062

.203

2.570

.013

.110

.115

.079

.957

.343

-.512

.077

-.774

-6.632

.000

-.011

.058

-.022

-.182

.856

.072

.037

.169

1.949

.057

a. Dependent Variable: Would you like to purchase Apple iPhone

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Descriptives of independent variables

Descriptive Statistics N Importance of camera Importance of music player Importance of Memory Size Importance of Robustness Importance of Looks Importance of Service offering Importance of User friendly interface Importance of Internet and email Importance of Utilities Valid N (listwise) 60 60 60 60 60 60 Minimum 2 1 2 1 1 1 Maximum 5 5 5 5 5 5 Mean 4.17 3.17 3.80 2.97 3.70 3.47 Std. Deviation .905 .827 .798 1.262 .979 1.127

60

3.63

1.314

60 60 60

1 1

5 5

3.33 3.40

1.174 1.182

Importance of Camera

Rank
Frequency Valid 1 2 3 8 Total 36 14 8 2 60 Percent 60.0 23.3 13.3 3.3 100.0 Valid Percent 60.0 23.3 13.3 3.3 100.0

Cumulative Percent 60.0 83.3 96.7 100.0

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Importance of Music Player

Rank
Frequency Valid 1 2 3 4 5 6 Total 16 28 6 4 4 2 60 Percent 26.7 46.7 10.0 6.7 6.7 3.3 100.0 Valid Percent 26.7 46.7 10.0 6.7 6.7 3.3 100.0

Cumulative Percent 26.7 73.3 83.3 90.0 96.7 100.0

Importance of Touch Screen

Rank
Frequency Valid 2 3 4 5 6 7 8 9 Total 4 6 6 6 6 4 14 14 60 Percent 6.7 10.0 10.0 10.0 10.0 6.7 23.3 23.3 100.0 Valid Percent 6.7 10.0 10.0 10.0 10.0 6.7 23.3 23.3 100.0

Cumulative Percent 6.7 16.7 26.7 36.7 46.7 53.3 76.7 100.0

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Importance of Internet Browsing

Rank
Frequency Valid 1 2 3 4 5 6 7 8 9 Total 2 2 4 2 12 8 12 8 10 60 Percent 3.3 3.3 6.7 3.3 20.0 13.3 20.0 13.3 16.7 100.0 Valid Percent 3.3 3.3 6.7 3.3 20.0 13.3 20.0 13.3 16.7 100.0

Cumulative Percent 3.3 6.7 13.3 16.7 36.7 50.0 70.0 83.3 100.0

Importance of Video Player

Rank
Frequency Valid 2 3 4 5 6 7 8 9 Total 4 6 8 14 8 10 8 2 60 Percent 6.7 10.0 13.3 23.3 13.3 16.7 13.3 3.3 100.0 Valid Percent 6.7 10.0 13.3 23.3 13.3 16.7 13.3 3.3 100.0

Cumulative Percent 6.7 16.7 30.0 53.3 66.7 83.3 96.7 100.0

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Importance of Email Client

Rank
Frequency Valid 2 3 4 5 6 7 8 9 Total 8 2 10 2 8 10 8 12 60 Percent 13.3 3.3 16.7 3.3 13.3 16.7 13.3 20.0 100.0 Valid Percent 13.3 3.3 16.7 3.3 13.3 16.7 13.3 20.0 100.0

Cumulative Percent 13.3 16.7 33.3 36.7 50.0 66.7 80.0 100.0

Importance of Doc Viewer

Rank
Frequency Valid 2 3 4 5 6 7 8 9 Total 4 2 8 8 14 12 2 10 60 Percent 6.7 3.3 13.3 13.3 23.3 20.0 3.3 16.7 100.0 Valid Percent 6.7 3.3 13.3 13.3 23.3 20.0 3.3 16.7 100.0

Cumulative Percent 6.7 10.0 23.3 36.7 60.0 80.0 83.3 100.0

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Importance of Data Transfer

Rank
Frequency Valid 1 3 4 5 6 7 8 9 Total 2 20 12 2 6 4 8 6 60 Percent 3.3 33.3 20.0 3.3 10.0 6.7 13.3 10.0 100.0 Valid Percent 3.3 33.3 20.0 3.3 10.0 6.7 13.3 10.0 100.0

Cumulative Percent 3.3 36.7 56.7 60.0 70.0 76.7 90.0 100.0

Importance of Looks

Rank
Frequency Valid 1 2 3 4 5 6 7 8 9 Total 8 2 4 8 8 4 4 8 14 60 Percent 13.3 3.3 6.7 13.3 13.3 6.7 6.7 13.3 23.3 100.0 Valid Percent 13.3 3.3 6.7 13.3 13.3 6.7 6.7 13.3 23.3 100.0

Cumulative Percent 13.3 16.7 23.3 36.7 50.0 56.7 63.3 76.7 100.0

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Would you like to buy a phone which has no keypad and only touch screen Cumulative Frequency Valid No Yes Total 42 18 60 70.0 30.0 100.0 70.0 30.0 100.0 70.0 100.0 Percent Valid Percent Percent

Would you like to purchase Apple iPhone Cumulative Frequency Valid Not at all Not Likely May Be Definitely Total 2 12 32 14 60 Percent 3.3 20.0 53.3 23.3 100.0 Valid Percent 3.3 20.0 53.3 23.3 100.0 Percent 3.3 23.3 76.7 100.0

Would you purchase iPhone even if its priced above Rs. 20000 Cumulative Frequency Valid Never Not Likely Likely Very Likely Total 2 14 32 12 60 Percent 3.3 23.3 53.3 20.0 100.0 Valid Percent 3.3 23.3 53.3 20.0 100.0 Percent 3.3 26.7 80.0 100.0

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Brand Awareness of Apple

Age of the respondent * Brand Awareness of iPod * Gender Crosstabulation Count Brand Awareness of iPod Gender Female Age of the respondent Less than 18 18-25 25-30 30-35 Total Male Age of the respondent 18-25 25-30 30-35 Total 2 0 0 2 No Yes 2 18 4 2 26 16 14 2 32 Total 2 18 4 2 26 18 14 2 34

Age of the respondent * Brand Awareness of iMac * Gender Crosstabulation Count Brand Awareness of iMac Gender Female Age of the respondent Less than 18 18-25 25-30 30-35 Total Male Age of the respondent 18-25 25-30 30-35 Total No 2 10 4 2 18 6 2 2 10 Yes 0 8 0 0 8 12 12 0 24 Total 2 18 4 2 26 18 14 2 34

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Age of the respondent * Brand Awareness of iPhone * Gender Crosstabulation Count Brand Awareness of iPhone Gender Female Age of the respondent Less than 18 18-25 25-30 30-35 Total Male Age of the respondent 18-25 25-30 30-35 Total No 2 2 2 0 6 Yes 0 16 2 2 20 18 14 2 34 Total 2 18 4 2 26 18 14 2 34

8. Hypothesis results and Interpretation

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1. H0: There is no significant relation between the need of a camera and the price of the mobile handset. Result: Reject The correlation between the two is .421 and is significant at 99% level of confidence, showing that hi-end users lay emphasis on the need of a camera in the handset. This is bolstered by the fact that the mean for the importance of a camera is the highest at 4.17 out of 5. Also nearly 87% of the respondents wanted a camera resolution between 2 Mega pixels to greater than 3 Mega pixels. Also 60% of the respondents ranked camera as no.1 in importance. This importance comes from the fact that, at higher prices, the handset becomes more of a utility than just for communication. 2. H0: There is no significant relation between the need of a music player and the price of the mobile handset. Result: Reject The correlation between the two is .504 and is significant at 99% level of confidence, showing that hi-end users lay emphasis on the need of a music player in the handset. This is further stressed upon as the nearly 73% of the respondents ranked the importance of music player as rank 1 or 2. 3. H0: There is no significant relation between the need of huge memory size and the price of the mobile handset. Result: Reject The correlation between the two is high at .732 and is significant at 99% level of confidence, showing that hi-end users lay emphasis on huge memory size in the handset. Also the mean rating for memory size is high at 3.8 implying its importance while making a purchase decision. High-end users use their handset as storage devices and thus the need of huge memory size. 4. H0: There is no significant relation between the robustness of the handset and the price of the mobile handset. Result: Reject The correlation between the two is negative at -.295 and is significant at 95% level of confidence, showing that for hi-end users, robustness has a negative impact on the purchasing decision. This is further emphasized by the fact that the importance of robustness is the lowest at 2.97. 5. H0: There is no significant relation between the looks of the handset and the price of the mobile handset. Result: Reject

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The correlation between the two is .428 and is significant at 99% level of confidence, showing that hi-end users lay emphasis on looks. On regression, it was also found that had a coefficient of .152 at a significance level of .054. 6. H0: There is no significant relation between the service offering of the handset and the price of the mobile handset. Result: Reject The correlation between the two is .310 and is significant at 95% level of confidence, indicating that hi-end users lay emphasis on services provided by the handset company. Also on carrying out regression, the coefficient for the services offered was .119 within the 0.05 level of significance. 7. H0: There is no significant relation between the importance of user friendly interface and the price of the mobile handset. Result: Accept The correlation between the two is negative and at .113 and is not significant at 95% level of confidence. Thus, we accept the null hypothesis that there is no significant relationship. The negative relationship is further highlighted on regression, but its not significant. 8. H0: There is no significant relation between the need of user internet and email service and the price of the mobile handset. Result: Reject The correlation between the two is .56 and is significant at 99% level of confidence, indicating that hi-end users need internet and email facilities in their handset. However, the mean of the respondents is relatively low at 3.33 and also while ranking the importance of the need for internet facilities, its spread out from rank 2 to 9. 9. H0: There is no significant relation between the need for utilities and the price of the mobile handset. Result: Reject The correlation between the two is .381 and is significant at 95% level of confidence, indicating that hi-end users stress on the utilities offered by hi-end handsets such as document-viewer, touch screen etc. 10. H0: There is no significant relationship between the looks of apple products and the purchase decision of i-phones. Result: Reject The correlation between the two is negative at -.709 but is significant at 99% level of confidence, showing that hi-end users are not convinced about the looks of apple i-phones. This makes it evident that high end phones like the N-series, walkman 32

series are perceived to have better looks than i-phones. Another reason why iphones is perceived not to have great looks is because of its limited variety of models. 11. H0: There is no significant relationship between the good interface of apple products and the purchase decision of i-phones. Result: Reject The correlation between the two is .678 and is significant at 99% level of confidence, indicating that hi-end users believe that Apple i-phones are user friendly. This is largely on the experience of other apple products such as i-pod and also based on the user friendliness of viewing documents, a unique selling point for i-phones. 12. H0: There is no significant relationship between the sophistication of apple products and the purchase decision of i-phones. Result: Reject The correlation between the two is .464 and is significant at 99% level of confidence, indicating that hi-end users believe that Apple i-phones are fragile and does need care of handling. This could largely be due to the huge screen size of iphone making it more prone to breakage. 13. H0: There is no significant relationship between the importance of touch-screen of iphones and the purchase decision of i-phones. Result: Reject The correlation between the two is negative at -.319 but is significant at 95% level of confidence, showing that hi-end users dont perceive touch screen as that important. This is bolstered by the fact that nearly 48% of the respondents ranked the need of touch screen low at 8 or 9 and about 70% did not prefer a phone which has a touch screen but no key-pad. 14. H0: There is no significant relationship between the importance of music quality of i-phones and the purchase decision of i-phones. Result: Accept The significance level is greater than 0.05. Hence, we accept the null hypothesis. Also, the correlation is negative, which is a startling fact, because apple has been famous for its i-pods. A reason could be the belief by customers that Apple wont be able to blend music with its new venture into music communication. 15. H0: There is no significant relationship between the brand name of apple products and the purchase decision of i-phones. Result: Reject The correlation between the two is negative at -.889 and is significant at 99% level of confidence, showing that hi-end users dont perceive the brand name of apple as 33

much when it moves into the phone category. One of the reasons primarily is Apple's recent entry into the handset market. 16. H0: There is no significant relationship between the quality of service of apple and the purchase decision of i-phones. Result: Reject There is a significant correlation between the services provided by apple and the purchase decision a high-end user makes. One of the reasons why the service quality is perceived as good enough is because of the quality of after sales service apple has provided in its previous offerings of i-pod and i-Mac. 17. H0: There is no significant relationship between the uniqueness of apple products and the purchase decision of i-phones. Result: Reject There is a negative correlation between the two, indicating that the services provided by apple are not that different than others. Brand Awareness of Apple The brand awareness of Apple was studied considering its various products: i-pod, i-Mac and i-phone. i-Pod: Nearly 100% of the respondents were aware of i-pod across gender as well as age. Within the 25-30 age-groups the awareness was very high, thereby, emphasizing the popularity of i-pods due to the revolution it has brought about in listening to music. i-Mac: The awareness of i-Mac was at relatively low at around 53% (32 out of the 60 respondents were aware). This is because of the wide-presence of other laptops such as Dell, Sony, Acer, Compaqs high penetration in the market and the relative low presence of Apple notebooks. i-Phone: The awareness of i-phones was high among all respondents at 90%. Also 100% of the male were aware of it against 77% of the female respondents. Also 77 % of the respondents were likely to purchase apple i-phones. Also, if i-phone was priced around Rs. 20,000/- , then 73 % of the respondents were likely to purchase it.

9. Conclusions

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The quality of features such as camera, music player, the size of the memory, looks of the handset, the services offered by the handset company, email and internet have a direct correlation on the price of the handset brought by high-end users. However, in case of i-phones, there is a negative correlation between looks and on the decision of purchasing an i-phone. For high end users there is a negative correlation between the price they pay for a handset and the robustness of the mobile while they emphasize on looks. There is a negative correlation between the need of a friendly interface and the price that high-end users pay for a cell phone. However, in the case of i-phones, high-end users perceive that it provides a friendly interface probably because of its document viewing facility. Thus, i-phones to an extent does offer something different to buyers. Although, touch screen is a unique feature of i-phones, the purchase decision has a negative correlation with the need of a touch screen. This was confirmed by the fact that 70 % of the respondents dont prefer a phone with just a touch screen and no key-pad. The brand awareness of Apple is significant among all age-groups and gender. Among Apple products, i-pods and i-phones are very popular.

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10. Recommendations
We would like to recommend Apple to go ahead with the launch of the new i-phones in the Indian market. They should look for an aggressive strategy upfront targeting the high-end
segment of the market. As they get some hold of the high-end market, they can look for venturing into making the low-end segment of the market to experiment with this product. If launched with huge hype, the product can be an instant hit in the market and can gain major

share of the Indian cell-phone market. The basis of this recommendation is that respondents believe that Apple products are user friendly, light weight and easy to handle, and have great have good after service quality. Another reason is that i-phones have a huge memory size, a must for high-end users. Its memory size is about 4GB and can be expanded to 8 GB.
With the fast growing cell-phone market in India, there is vast scope of entry of new brands and new technologies. The purchasing power of the people is on the rise and they are ready to invest and experiment in new and sophisticated brands. All this gives tremendous opportunity to companies like Apple to enter into India with their new and innovative

products.
The only thing that Apple needs to take care is that their marketing strategy is so targeted such that the high-end segment market considers purchase of Apple products as status symbols. The company can also keep the prices of the products at a premium as the

market is ready to experiment without looking at cost considerations too much.

11. References
Marketing Research, 4th Edition - D.A. Aaker & G.S.Day ; John Wiley & Sons Inc. Gartner Dataquest report Cellular operators association of India website. www.coai.in www.india-cellular.com Proquest database

12. Questionnaire

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1. Age?

Less than 18 18-25 25-30 30-35 Above 35

2. Gender? Male Female

3. Occupation? Student Service Business Self employed

4. Annual income? Less than 2 lacs 2 to 5 lacs 5 to 10 lacs 10 Lacs and above

5. Rank the following features of the cell phone according to their importance. (Rank 1 Most Important and 9 Least Important) Camera(1.3 Mbps and above) Music Player Touch Screen Internet Browsing Video Player Email Client Document viewer Data Transfer Trendy Looks 6. What is the price you paid for your current cell phone? Upto 4000 4001 - 7000 7001 - 12000 12000 18000 >18000 7. How many times till date have you changed your phone? Never 1-2 times 3-4 times More than 4 times 8. How frequently do you like to change your handset? Every 3-6 months Every 6-12 months More than 1 year Never

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9. How important will be the following attributes for you while buying a new cellphone? Rate each on a scale of 1 to 5 (1-least important, 5-most important)

Features
Camera Music Player Memory Size Robustness Looks Service offered User friendly interface Internet/ Email Other Utilities like Document viewer etc.

12. What kind of Camera Resolution you would want to in a cell phone? 0.8 MegaPixels 1.3 MegaPixels 1.4 MegaPixels 2.0 MegaPixels 2.0 MegaPixels 3.2 MegaPixels > 3.2 MegaPixels Any camera will do 13. Would you like to buy a phone which has no key pad but only touch-screen keypad? Yes No 14. Please rate the following features of touch screen on the scale of 5 (5 highest) ?

Features
Ease of usage Big Screen Size Sophistication Novelty Factor driving purchase

15. How many of these Apple products are you aware of? iPod iMAc iPhone None

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16. You will buy Apple Products because (Rank them with 1 as most important and 8 as least important.) Cool Looks Good Interface Sophistication Touch Screen Music Quality Brand Name Quality of Service Very different offering compared to other products 17. Are you aware of Apples latest mobile phone called iPhone? Yes No 18. Do you think an Apple iPhone will give significantly different offerings than other high end phones? Yes No Can't say 19. When Apple launches iPhone in India, would you like to purchase it within the next year? Not at all Not likely May Be Definitely 20. Considering iPhone is priced at around Rs 20,000 in next one year, would you still purchase it? Never Not Likely Likely Very Likely

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