Article consumer behavior

Abstract:

Communication in real sense means transfer of information between two points and
telecommunication has emerged as a very popular way of communication. From the time when
keeping a mobile phone was a luxury now is the time when mobile phone companies are
providing cheap handsets and lifetime prepaid connections to the hundreds and millions of
consumers in India in a bid to expand market share and maintain their growth. India has emerged
as the second fastest growing market in telecommunication sector after China. There is a
cutthroat competition between service providers. Everybody is trying to lure the customers with
lucrative offers, schemes and various marketing strategies. This study is an effort to understand
what are the features that a consumer looks for in a service provider and what are the basic needs
of a mobile user. The research has been carried out with primary as well as secondary sources of
information. For primary data respondents were personally contacted and administered
structured, undisguised and unbiased questionnaire. Secondary data was collected from various
magazines, newspapers and Internet. About 100 respondents were surveyed. The data thus
collected has been systematically analyzed and presented in a justifiable manner for the better
presentation and good understanding of the viewer.

Introduction
The aim of marketing is to meet and satisfy target consumers’ needs and wants. The field of
consumer behaviour studies how individuals, groups and organizations select, buy and dispose of
goods, services, ideas or experiences to satisfy their needs and desires.

Understanding consumer behaviour and “knowing consumers” is never simple. Customers may
say one thing but do another. They may not be in touch with their deeper motivations. They may
respond influences the change their minds at the last movement. Small companies stand to profit
from understanding how and why their customers buy.

Studying customers provide clues for developing new products; product features, prices,
channels, messages and other marketing mix elements. This research explores individual
consumers buying dynamics.

Consumer Behavior

Consumer behavior involves the psychological processes that consumers go through in
recognizing needs, finding ways to solve these needs, making purchase decisions (e.g., whether
or not to purchase a product and, if so, which brand and where), interpret information, make
plans, and implement these plans (e.g., by engaging in comparison shopping or actually
purchasing a product).(Marketing Management, Philip Kotler)

Factors influencing Consumer Behaviour

A consumer’s buying behaviour is influenced by cultural, social, personal and psychological
factors.

Cultural Factors
Culture is the fundamental determinant of a person’s wants and behaviour. The growing child
acquires set of values, perception, preferences and behaviours through his or her family and other
key institutions. Each culture consists of smaller sub cultures that provide more scientific
identification and socialization for their members when subculture grows large and affluent
enough, companies often design specialized marketing programs to serve them. (Consumer
Behaviour http://www.consumerpsychologist.com/)

Social Factors
In addition to cultural factors, consumer’s behaviour is influenced by such social factors as
reference groups, family and social roles and statuses.

Reference Group: A persons’ reference group consists of all the groups that have a direct or
indirect influence on the person’s attitude or behaviour. The groups having a direct influence on
a person are called Membership groups. Membership groups may be primary (family, friends) or
secondary (religious, professional groups). Reference groups expose an individual to new
behaviours and lifestyles and influence attitudes and self-concept.

Family: The family is the most important consumer-buying organization society; it creates the
most influential primary reference group. Even if the buyer no longer interacts with his parents,
their influence on the buyers’ behaviour can be significant..

Roles and Statuses: A person participates in many groups such as family, clubs, and
organizations. The Persons’ position in each group can be defined in terms of role and status. A
role consists of activities a person is expected to perform. Each role carries status. (Consumer
Behaviour http://www.consumerpsychologist.com/)

Personal Factors
Buyer’s decisions are also influenced by personal characteristics. These include the buyers’ age
and stage in life cycle, occupations, economic circumstances, lifestyle and personality and self-
concept.

Age and Stage in Life cycle: People buy different goods and services over lifetime. The good
bought or services used in one stage of life differ from the goods and services bought in the other
stage of life.

Occupation and Economic circumstances: Occupation also influences consumption pattern. A
blue-collar worker will buy work clothes, work shoes and lunch boxes, while the company
president will buy executive suits, air travel and country club membership. A company should
design its product in such a manner that all classes of consumer could use it.

Life Style: Life style is a persons’ pattern of living in the world as expressed in activities,
interests and opinions. Peoples belonging to different social classes lead different life styles and
this life style impact on the buying behaviour.

Personality and Self Concept: Each person has personality characteristics that influence his or
her buying behaviour. Personality can be useful in analyzing consumer brand choices as a
consumer buys the product, which matches his or her personality. (Marketing Management,
Philip Kotler)

Psychological Factors
A personal buying choice is influenced by four major psychological factors, which are
Motivation, Perception, Learning and Beliefs and attitudes.

Motivation: Motive is the need that is sufficiently pressing to drive the person to act. Motivation
is led by need and a consumer’s buying behaviour is also derived by the need. Thus marketers
should understand the motivation behind a consumer’s buying decision.

Perception: Perception is the process by which an individual selects, organizes and interprets
information, input to create a meaningful meaning of the world. It is very important to
understand the consumer’s perception towards a product.

Learning: Learning involves changes in an individual’s behaviour arising from experience.
Most human behavior is learned. A new company could enter the market by appealing the same
drives that competitors use and by providing similar key configurations because buyers are more
likely to transfer to similar brands.

Beliefs and Attitudes: Belief is a descriptive thought that a person holds about something.
People believe about a product or brand influence their buying decision. People’s belief towards
a product leads to their decision of either buying or not buying it. (Brian Mullen & Craig
Johnson , The Psychology of Consumer Behaviour,)

Consumer Choices and Decision Making

Generally, the purchaser passes through five distinct stages in taking a decision for purchasing a
particular commodity. These stages are: (i) Need recognition, (ii) Information search, (iii)
Evaluation of alternative, (iv) Purchase decision, and (v) Post purchase feelings.

NEED RECOGNITION

INFORMATION SEARCH

EVALUATION OF ALETRNATIVE

PURCHASE DECISION

POST PURCHASE FELLINGS

Consumer Choice and Decision Making Process

Research Methodology

Research Design
This study is an effort to understand what are the features that a consumer looks for in
a service provider and what are the basic needs of a mobile user. The research has been
carried out with primary as well as secondary sources of information. The data thus
collected has been systematically analyzed and presented in a justifiable manner for the
better presentation and good understanding of the viewer.

Collection of Data
Primary Data
For primary data respondents were personally contacted and administered structured,
undisguised and unbiased questionnaire. People from different age groups and different
socio-economic backgrounds are included.

Secondary Data
The secondary data is the data which already exists and is collected from various sources
including Magazines, News Papers and Internet and other sources.

Scope of the study
The scope of the study include various Telicom Service Providers including Airtel,
BSNL, Vodafone, Tata Indicom, MTS and Reliance.

Sampling Area
The area of research includes Jodhpur district, Rajasthan.

Sample Design
The sampling design includes the following-

a) Sampling Unit
In this study sampling unit include the data collection of customers of Airtel, BSNL,
Vodafone, Tata Indicom, MTS and Reliance.

b) Sample Size
The sample population of the study is 100

c) Sampling Technique
Convenience sampling technique is used in the following study.

Objective of Study:

The objective of the study are as follows-

1. To study the perception of mobile users towards a service provider in Jodhpur.
2. To study the factors influencing the decision of mobile users while selecting a service
provider.
3. To study the satisfaction level of the mobile users and reasons for their satisfaction and
dissatisfaction.

Limitations:
The study has the following limitations-
1. One district survey cannot represent the view of whole Indian Market
2. Some respondents show their unwillingness in sharing information with researcher.
3. The conclusions drawn were purely based on the information provided by the
respondents.

Analyses and Interpretations:

Table 1 Showing the ratio of respondents on the Gender basis.

Gender No. Of Share In Sample
Respondents
Male 60 60%
Female 40 40%
Total 100 100%

This table shows the ratio of respondents on the gender basis. Where 40% respondents are
female and 60% respondent are male.

Table 2 Showing the ratio of respondent on the basis of Service Provider they are using.

Service Provider No. of Share In Sample
Respondents
Airtel 40 40%
Reliance 10 10%
BSNL 20 20%
Tata 5 5%
Vodafone 15 15%
Idea 10 10%
Total 100 100%

This table shows no. of respondents on the basis of service provider they are using where 40%
using airtel, 10% using reliance, 20% using bsnl, 5% using tata, 15% using Vodafone and 10%
using idea.

Table 3 Showing no. of respondent on the basis of type of connection they are using.

Type of Connection No. of Respondent Share in Sample
Prepaid 80 80%
Postpaid 20 20%
Total 100 100%

This table shows that 80% users using prepaid connection and 20% users using postpaid
connection.

Table 4 Showing the factors that affect the buying decision of Mobile Users in Jodhpur.

Option No. of Respondent Share in
percentage
Offers & Scheme 75 75%
Friends & Family 15 15%
Advertisement 10 10%
Total 100 100%

This table shows factors affecting buying decision of mobile users in Jodhpur where 75% says it is offers
& schemes, 15% says it is friends & family and 10% says it is the advertisements.

Table 5 Showing preferences of mobile users while selecting a service provider

Options Strongly Agree Undecided Disagree Strongly Mean
agree disagree Score
Network 84 16 0 0 0 1.84
connectivity
Call charges 76 18 6 0 0 1.70
& tariffs
plans
Value added 36 34 14 8 8 .90
services &
customer
care

Applying F-test
Null Hypothesis- H0:µ1=µ2=µ3
Alternate Hypothesis- Hα: µ1≠µ2≠µ3
N=15
n=3
Table 1
X1 X2 X3 X4 X5 Total 1
Network 84 16 0 0 0 100
Connectivity
Call Charges 76 18 6 0 0 100
& Tariffs
VAS & 36 34 14 8 8 100
Customer
Care
Total 196 68 20 8 8 300

Table 2
X12 X22 X32 X42 X52 Total 2
New 7056 256 0 0 0 7312
feature
Call 5776 324 36 0 0 6136
Charges &
Tariffs
VAS & 1296 1156 196 64 64 2776
Customer
Care
Total 14128 1736 232 64 64 16224

Correction Factor= C.F. = (Total 1)2/N= ( 300 )2/15= 6000

SST= Total 2 - C.F.= 16224 – 6000 = 10224
SSC= (∑X1)2/n +(∑X2)2/n + (∑X3)2/n - C.F.= 14523 – 6000 = 8523
SSR= SST- SSC= 1701

ANNOVA TABLE
Source Sum of Degree Mean F F
of squares of Square calculated tabulated
variation freedom
Between 8523 4 2130.75
sample
Within 1701 10 170.1
sample
Total 12.52 3.49

Therefore, calculated value of F is greater than table value of F i.e. with degree of freedom
being v1=4 and v2=10. Thus, null hypothesis of no difference is rejected and alternate
hypothesis is accepted.

Table 6 Showing level of satisfaction in mobile users

Option No of Respondent Share in Percentage

Highly Satisfied 15 15%
Satisfied 41 41%
Neutral 0 0%
Dissatisfied 30 30%
Highly Dissatisfied 14 14%
Total 100 100%

This table shows level of satisfaction among mobile users in jodhpur where 15% says they are highly
satisfied, 41% satisfied, o% neutral, 30% dissatisfied and 14% are highly dissatisfied with their service
provider.

Table 7 Showing reason for satisfaction among mobile users

agree (2) (1) (0) (-1) disagree Score
(-2)
Network 40 8 2 6 0 1.46
Connectivity
Call Charges 24 22 6 4 0 1.17
& Tariffs
VAS & 22 24 0 6 4 0.96
Customer
Care

Applying F-test
N=15
n=3
Table 1
Network 40 8 2 6 0 56
Connectivity
Call Charges 24 22 6 4 0 56
& Tariffs
VAS & 22 24 0 6 4 56
Customer
Care
Total 86 54 8 16 4 168

Table 2
X12 X22 X32 X42 X52 Total 2
Network 1600 64 4 36 0 1704
Connectivity
Call Charges 576 484 36 16 0 1112
& Tariffs

VAS & 484 576 0 36 16 1112
Customer
Care
Total 3928

Correction Factor= C.F. = (Total 1)2/N= ( 168)2/15= 1882
SST= Total 2 - C.F.= 3928 – 1882 = 2046
SSC= (∑X1)2/n +(∑X2)2/n + (∑X3)2/n +(∑X4)2/n +(∑X5)2/n - C.F.= 3549 –
1882 = 1667
SSR= SST- SSC= 379

ANNOVA TABLE
Source of Sum of Degree of Mean F F
variation squares freedom Square calculated tabulated
Between 1667 4 416.75
sample
Within 379 10 37.9
sample
Total 10.99 3.49


Table 8 Showing reason for dissatisfaction among mobile users

(-2)
Network 28 14 2 0 0 1.59
Connectivity
Call Charges 16 16 4 6 2 0.86
& Tariffs
VAS & 8 12 6 6 12 -.04
Customer
Care

Applying F-test
N=15
n=3

Table 1
Network 28 14 2 0 0 44
Connectivity
& Tariffs
VAS & 8 12 6 6 12 44
Customer
Care
Total 52 42 12 12 12 132

Table 2
X12 X22 X32 X42 X52 Total 2
Network 784 196 4 0 0 98
Connectivity
Call Charges 256 256 16 36 4 568
& Tariffs
VAS & 64 144 36 36 144 424
Customer
Care
Total 1976

Correction Factor= C.F. = (Total 1)2/N= ( 132)2/15= 1162
SST= Total 2 - C.F.= 1976 – 1162 = 814
SSC= (∑X1)2/n +(∑X2)2/n + (∑X3)2/n +(∑X4)2/n +(∑X5)2/n - C.F.=
1651 – 1162 = 489
SSR= SST- SSC= 325

ANNOVA TABLE
Between 489 4 122.25
sample
Within 325 10 32.5
sample
Total 3.76 3.49

being v1= 4 and v2= 10. Thus, null hypothesis of no difference is rejected and alternate

Table 9 Showing no of respondent who are willing to change their service provider

Option No of Respondent Share in Percentage

Yes 44 44%
No 56 56%
Total 100 100%

This table shows that 44% of the respondents are willimg to change their service provider, while 56% of
respondents are not willing to change their service provider.

Table 10 Showing reason for changing service provider

(-2)
Network 26 12 0 4 2 1.27
Connectivity
Call Charges 10 20 6 8 0 0.72
& Tariffs
VAS & 14 18 0 8 4 0.68
Customer
Care

Applying F-test
N=15
n=3

Table 1
Network 26 12 0 4 2 44
Connectivity
& Tariffs
VAS & 14 18 0 8 4 44
Customer
Care
Total 50 50 6 20 6 132

Table 2
X12 X22 X32 X42 X52 Total 2
Network 676 144 0 16 4 840
Connectivity
Call Charges 100 400 36 64 0 600
& Tariffs
VAS & 196 324 0 64 16 600
Customer
Care
Total 2040

Correction Factor= C.F. = (Total 1)2/N= (132)2/15= 1162
SST= Total 2 - C.F.= 2040 – 1162 = 878
SSC= (∑X1)2/n +(∑X2)2/n + (∑X3)2/n +(∑X4)2/n +(∑X5)2/n - C.F. =
1824 – 1162 = 662
SSR= SST- SSC= 216

ANNOVA TABLE
Between 662 4 165.5
sample
Within 216 10 21.6
sample
Total 7.66 3.49


Table 11 Showing reason for not changing service provider

(-2)
Network 44 6 0 6 0 1.57
Connectivity
Call Charges 22 16 10 8 0 0.92
& Tariffs
VAS & 20 20 8 6 2 0.89
Customer
Care

Applying F-test
N=15
n=3

Table 1
Network 44 6 0 6 0 56
Connectivity
Call Charges 22 16 10 8 0 56
& Tariffs
VAS & 20 20 8 6 2 56
Customer
Care
Total 86 42 18 20 2 168

Table 2
X12 X22 X32 X42 X52 Total 2
Network 1936 36 0 36 0 2008
Connectivity
Call Charges 484 256 100 64 0 1204
& Tariffs
VAS & 400 400 64 36 4 904
Customer
Care
Total 4116

Correction Factor= C.F. = (Total 1)2/N= ( 168 )2/15= 1882
SST= Total 2 - C.F.= 4116 – 1882 = 2234
SSC= (∑X1)2/n +(∑X2)2/n + (∑X3)2/n +(∑X4)2/n +(∑X5)2/n - C.F.=
3296 – 1882 = 1414
SSR= SST- SSC= 820

ANNOVA TABLE
Between 1414 4 353.5
sample
Within 820 10 82
sample
Total 4.31 3.49

Therefore, calculated value of F is greater than table value of F i.e. with
degree of freedom being v1= 4 and v2= 10. Thus, null hypothesis of no
difference is rejected and alternate hypothesis is accepted.

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