K L University Business School

MANAGEMENT THESIS PRAPOSAL

TITLE:- “ An Empirical Study on Consumer’s Perception

towards Chinese mobile’s in Vijayawada”

Submitted to:

DR.D.Srinivasa Rao

Professor, KL University

Submitted by:

P.Gopi Krishna

Rag no-09101982
 An Empirical Study on Consumer’s Perception towards
Chinese mobile’s in Vijayawada

Introduction:
Now- a-days using the mobile became as one of the basic need for many
individuals. People have understood the importance of having the mobile and
their importance in normal life. By having the mobile we can communicate to rest
of the world. It is an instant communication exchange tool used to make and
receive calls as well as sends text messages, listen to music, surf the internet and
even play games.

When the mobile were introduced, they were considered as a luxury good
and are regarded as a status symbol. This is not just because of the high prices of
mobiles but it is due to high prices charged by the service providers. The entry of
many service providers and the amendments made by the regulatory authority
“TRAI-Telecom Regulatory Authority of India” made the call rates to slash down.
The service provider that paved way to such prices is RELIANCE
TELECOMMUNICATIONS and then the HUTCHISSON ESSAR Company. This also
affected the mobile industry which is a complimentary product to
Telecommunication Industry.

A basic mobile phone without the advanced features can be used for
the basic applications like making a call or receiving the call, sending or receiving
messages, and you can find phones with multimedia applications like Bluetooth,
listening music, cameras, and accessing internet from mobiles. Now a days the
mobiles are coming with 3G application like video calling, faster internet access,
we can even watch live TV in the mobiles. This revolution brought a lot of changes
in mobile industry and the number of players that increased the intensity of
competition and brought down the prices to some extent.

The major players of mobiles in Indian market are Nokia, Samsung, LG,
Motorola and Sony Ericson. At present they are 5 local players Micromax,
Karbonn Mobiles, Spice Mobiles Ltd, Videocon Industries Ltd and Lava
International Ltd. The market share of mobiles in India market are nokia market
share is 52.2%,Samsung market share is 17.4%,Lg market share is 5.4%,sony
ericission with 3%,Motorolo 1%,ZTE 1.9%,Micro max with 4.1%,karbon 3%,the
local 5 players of India market share is 28%. The major damage is done by the
revolutionary unbranded China mobiles which gave the experience of using a
branded mobile with many features and the option of using an extra sim. It
created a great noise in the market and very soon many of the customers are
attracted to these mobiles. The regular up gradations by these companies also
helped them a lot repetitive sales. China had the world market share of 73%
market share and they are 800 million customers throughout the world. Despite
the fact that the unbranded mobiles do not provide a guarantee, their demand is
high because of the price advantage and duplication of branded mobiles and
offering them at very low price.

Initially the Chinese mobiles were targeted to the middle income

group. This was a mass marketing concept. The high population of the middle
income group in India had paved a way for the growth of Chinese mobiles. The
people who were mainly attracted towards these mobile are Students, as because
they want to have a multimedia enabled phone at a reasonable cost. Thus
Chinese mobiles were widely marketed. Later on the lower income group also
started to purchase these Chinese mobiles. The Chinese handsets reportedly have a
market share of more than 13.3% of the mobile market in India accounting for nearly
$6.3 billion (30,000 crore) annually

Description of the Problem:

Chinese mobiles entered into the Indian market with Niche
Marketing strategy. The pricing strategy followed by the China mobiles is
Penetration Pricing. Due to low prices it could attract many customers within a
short span of time. International Mobile Equipment Identification (IMEI) Number
is a unique number assigned to every mobile phone. This IMEI number can be
used to trace the mobile device. The Chinese mobiles don’t have IMEI Number,
thus making it unable to trace, Thereby increasing the threat to country. The
quality of the Chinese mobiles was low as like the price. These mobile were fragile
and thus making it difficult to use for a long term usage. Moreover the radiations
emitted by these Chinese mobiles were high when compared to other mobile
brands, thus became hazardous to our health. The features like battery backup,
user interface were also not up to the mark. The unethical trade practices
followed by the Chinese companies became a threat to the other companies.
They are immediately duplicating the mobile design and releasing into market.
There were no Guarantee, Warranty, after sale service provided for Chinese
mobiles, which made several customers to change their mobiles. Due to price
sensitivity, the customers are attracted to buy the Chinese mobile again. The
frequent up gradations and duplicating the famous brands’ models into market
helped these company a lot in order to capture the market.

Justification of Study:
Despite of the above disadvantages, People are still attracted towards the Chinese
mobiles. The people’s perception towards these mobiles was different. Now we
are trying to resolve this issue, by conducting a research. This helps us to
understand the factors which lead to the purchase of the Chinese mobiles.

This study will thus pave a way to understand the people’s perception towards
the Chinese mobiles.

Hypotheses
1. There is no association between personal profiles (Age and Educational
qualification) and perception towards Chinese mobiles.

2. The Customers are attracted towards Chinese mobiles due to their low price.

3. The Multimedia features offered at low prices had driven the customers towards
Chinese mobiles

4: The Duplication of the feature of top branded models lead the customers to
purchase Chinese mobiles.

Objectives of the Study:

For any study objectives play a major role as they define the
structure and goals of the study. The following are the objectives of my study on
China mobile phones in Vijayawada:
  The main objective of this study is to find the consumers' opinion on price,
features and quality of the China mobiles.
 The effect of China mobiles on the branded companies.
 The customer satisfaction is also another main objective of this study.

Research Methodology
To accomplish the stated objectives a descriptive type of research study is being
proposed. The study utilizes both primary and secondary data .Likert scale was
adopted to measure the dimensions of this study. Convenient sampling method was
adopted for identifying the respondents and administering the questionnaires.

Sampling and Sample Size

Primary data will be collected from different people with the help of a structured
questionnaire. For the collection of primary data, we confined our self to
Vijayawada city only. A sample of 200 respondents who actually used Chinese
mobiles will be selected by the convenience sampling technique. And for
collecting the secondary data we went through few websites, reputed journals and
magazines

PROBABILITY AND NON PROBABILITY SAMPLES :

Samples can be either probability samples or non-probability samples. With
probability samples each element has a known probability of being included in the
sample but the non-probability samples do not allow the researcher to determine
this probability. Probability samples are those based on simple random sampling,
systematic sampling, stratified sampling, cluster/area sampling whereas non-
probability samples are those based on convenience sampling, judgment sampling
and quota sampling techniques.

PRIMARY AND SECONDARY DATA :

The primary data are those which are collected a fresh and for the first time and
thus happen to be original in character.
The secondary data, on the other hand, are those which have already been
collected by someone else and which have already been passed through the
statistical process.

DATA BASE:
The data will be collected while doing the market survey so here is the sample
questionnaire

1. Gender 1. Male [ ]
2. Female [ ]

2. Age 1. Below 20 years [ ]

2. 20-30 years [ ]
3. 30-40 years [ ]
4. 40 and above [ ]

3. Educational qualification 1. High school [ ]

2. Degree [ ]
3. Diploma [ ]
4. PG [ ]
5. Professional [ ]
6. Others [ ]
4. Occupational status 1. Student [ ]
2. Businessman [ ]
3. Private employee [ ]
4. Government employee [ ]
5. Others [ ]
5. How did you come to know about Chinese mobiles?
1. Through ads [ ]
2. Through sales representatives [ ]
3. Through friends and relatives [ ]
4. Others [ ]
6. How long have you been using this Chinese mobile?
1. For 3 months [ ]
2. 3-6 months [ ]
3. 6-9 months [ ]
4. One Year and above[ ]

7. Which brand of mobile were you using earlier?

1. Nokia [ ]
2. Sony Ericsson [ ]
3. Motorola [ ]
4. Samsung [ ]
5. Others [ ]

8. I am happy about the price of the mobiles

1. Strongly Agree [ ]
2. Agree [ ]
3. Neither agree nor disagree [ ]
4. Disagree [ ]
5. Strongly disagree [ ]

9. The price is really low when compared with the features of the mobiles
1. Strongly Agree [ ]
2. Agree [ ]
3. Neither agree nor disagree [ ]
4. Disagree [ ]
5. Strongly disagree [ ]

10. I am really happy about the features of this mobile

1. Strongly Agree [ ]
2. Agree [ ]
3. Neither agree nor disagree [ ]
4. Disagree [ ]
5. Strongly disagree [ ]
11chinese mobiles are really better than the branded ones considering their
features
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly disagree
12. What are all the features of the Chinese mobile you like most when compared
with branded one?
1. Dual sim card
2. Touch screen
3. Price
4. Sound
5. Others
13. I can exchange or replace this mobile easily
1. Strongly Agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly disagree

14. What are the other factors that are driving you to purchase Chinese mobiles?
---------------- ---------------------------------------------------------------------------

References:

http://www.chinamobiles.in/chinamobilesinindia.html

www.pluggd.in/mobile-sales-market-share-in-india-
297/

www.china-mobile-phone.com/
www.rediff.com › MONEY

www.sriraj.org/technology/mobile-market-share-india-nokia/

www.niponwave.com/

http://www.ecplaza.net/search/0s1nf20sell/china_mobile_models.ht
ml

http://www.alibaba.com

http://in.answers.yahoo.com

www.wikepedia.com