A Report

On
Factors Affecting The Pre
And Post Decision Of Buying
Mobile And Services By
Different Users

Submitted By-
Piyush Asthana
07BS2837

ICFAI Business School

Faculty Guide
Dr. P.R Bhattacharyya
Faculty Member
IBS-Kolkata
 A Report
Factors Affecting The Pre
And Post Decision Of Buying
Mobile And Services By
Different Users
Submitted By-
Piyush Asthana
07BS2837
A report submitted in the partial fulfillment
Of the requirements of MBA Program
Of

ICFAI Business School

Faculty Guide
Dr. P.R Bhattacharyya
Faculty Member
IBS-Kolkata
Acknowledgements:
Survey is an excellent tool for learning and exploration. No classroom routine can substitute
which is possible while working in real situations. Application of theoretical knowledge to
practical situations is the bonanzas of this survey. Without a proper combination of inspection
and perspiration, it’s not easy to achieve anything. There is always a sense of gratitude, which
we express to others for the help and the needy services they render during the different
phases of our lives. I too would like to do it as I really wish to express my gratitude toward all
those who have been helpful to me directly or indirectly during the development of this
project.
I am grateful for finishing this project to many people.
First of all, I want to thank Mr. Ashim Ghosh,Director ICFAI Business School Kolkata.
Secondly I wish to express my profound gratitude and sincere thanks to my esteemed
Professor P.R.Bhattacharya at ICFAI Business School who was always there to help and
guide me when I needed help. His perceptive criticism kept me working to make this project
more full proof. I am thankful to him for his encouragement and valuable support. Working
under him was an extremely knowledgeable and enriching experience for me. I am very
thankful to him for all of the productive discussions on emerging mobile services and
changing business dynamics in the world of manufacture’s & operator’s business. I am
grateful to many anonymous experts working in the turbulent environment of mobile
communications business, who provided me with better understanding of interrelationships in
mobile business ecosystems. These insights helped me in explaining some of the empirical
research findings. In addition to industry experts I also thank my research colleagues at ICFAI
Business School for constructive comments and lively discussions on mobile services and
emerging market trends. I am also thankful to the administrator and owner of SurveyShare
Inc. because without their site this project cannot be even thought. Without my friends it
would have been difficult to balance between work and free time. I would like to thank Ankit
Dwivedi, Alok Kumar and numerous other friends in Kolkata, and elsewhere in the India. I
also thank my parents, Mr. P.M. Asthana, Mrs. Pratibha Asthana, brother Prateek Asthana,
and the rest of my family for encouragement and support with respect to my post-graduate
studies. At last but not least, I want to thank God without whose inspiration and guidance this
herculean task would not have been accomplished.
Piyush Asthana

March 25, 2009

Abstract:

Keywords: Price, Perceived quality, Perceived sacrifice, Perceived value,

purchase intention, mobile phones.

Mobile phone markets are one of the most unstable market atmospheres
nowadays due to increased competition and change. Thus, the growing concern
requires the marketers to strictly look at consumer buying decision process and
more focus on the factors such as Prices, Perceived quality, Perceived sacrifice,
Perceived value, and Purchase intention that subsequently determine willingness
to purchase between different mobile phones. On this basis, this research deals
with consumers’ sacrifice and willingness to purchase criteria in mobile phone
markets by studying factors that influence customer perceived value and
purchase intention to acquire new mobile phones on one hand and factors that
influence on mobile phone change on the other hand. It was found that although
the willingness to buy of a mobile phone is a subjective choice situation, there
are some general factors that seem to guide the willingness to buy. The study
shows that while technical problems are the basic reason to change mobile
phone among consumers, prices, brands, interface, and properties are the
influential factors affecting the actual choice among brands. Overall profiling of
customer is also done to find out the requirement of customers.
In addition, the results show customers sensitively emphasize on prices but
sacrifice and also less willing to purchase mobile phone. Accordingly, it is
useful to consider the age, gender, income, and education of consumers to
predict consumer decision more precisely.
TABLE OF CONTENTS

Acknowledgement……………………………………………….
Abstract ………………………………………………………….
1) INTRODUCTION …………………………………………………………………......4
Background ……………………………………………………………………….……6
Research Objectives…………………………………………………………………….6
Research Limitation……………………………………………………………………..6
Research Flow…………………………………………………………………………..6
2) MAIN TEXT LITERATURE REVIEW………………………………………………….8
Consumer Buying Behavior……………………………………………………………..9
Consumer Buying Decision Process…………………………………………………….10
Industry Overview……………………………………………………………………….21
Industry Structure………………………………………………………………………..22
Cellular Service………………………………………………………………………….26
3) Research Methodology …………………………………………………………………..29
Research Definition………………………………………………………………………30
Research Methodology…………………………………………………………………..30
Research Design………………………………………………………………………….31
Data Collection…………………………………………………………………………...31
Data Preparation………………………………………………………………………….32
4) Data ANALYSIS ………………………………………………………………………...33
Missing Value Analysis…………………………………………………………………..34
Regression Analysis for service provider………………………………………………...36
Regression Analysis for Handset Maker…………………………………………………44
Factor Analysis …………………………………………………………...58
5) Conclusion......................................................................................................................92
6) References.......................................................................................................................93
7) Glossary..........................................................................................................................94

Appendices
CHAPTER ONE

INTRODUCTION
Definition of Cellular/Mobile phone

www.wikipedia defines cellular phone as:

The Cellular telephone (commonly "mobile phone" or "cell phone" or "handphone") is a long-range,
portable electronic device used for mobile communication. In addition to the standard voice function
of a telephone, current mobile phones can support many additional services such as SMS for text
messaging, email, packet switching for access to the Internet, and MMS for sending and receiving
photos and video. Most current mobile phones connect to a cellular network of base stations (cell
sites), which is in turn interconnected to the public switched telephone network (PSTN) (the exception
is satellite phones. Cellular telephone is also defined as a type of short-wave analog or digital
telecommunication in which a subscriber has a wireless connection from a mobile telephone to a
relatively nearby transmitter. The transmitter's span of coverage is called a cell. Generally, cellular
telephone service is available in urban areas and along major highways. As the cellular telephone user
moves from one cell or area of coverage to another, the telephone is effectively passed on to the local
cell transmitter. A cellular telephone is not to be confused with a cordless telephone (which is simply a
phone with a very short wireless connection to a local phone outlet). A newer service similar to
cellular is personal communications services (PCS).

The Global Cellular Mobile Industry:

The global mobile phone industry is based on many different manufacturers and operators. The
industry is based on advanced technology and many of the manufacturers are operating in different
industries, where they use their technological skills, distribution network, market knowledge and brand
name. Four large manufacturers of mobile phones are today dominating the global mobile phone
industry; Nokia, Sony Ericson, Samsung and Motorola. In addition to these companies there are many
manufacturers that operate globally and locally.

Telecom Industry in India

 The telecom industry is one of the fastest growing industries in India. India has nearly
200 million telephone lines making it the third largest network in the world after China
and USA.
 With a growth rate of 45%, Indian telecom industry has the highest growth rate in the

7
 world.
 Much of the growth in Asia Pacific Wireless Telecommunication Market is spurred by
the growth in demand in countries like India and China.
 India‘s mobile phone subscriber base is growing at a rate of 82.2%.
 China is the biggest market in Asia Pacific with a subscriber base of 48% of the
total subscribers in Asia Pacific.
 Compared to that India’s share in Asia Pacific Mobile Phone market is 6.4%.
Considering the fact that India and China have almost comparable populations, India’s
low mobile penetration offers huge scope for growth.

History of Indian Telecommunications

Started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of
British power). Telephone services were introduced in India in 1881. In 1883 telephone services were
merged with the postal system. Indian Radio Telegraph Company (IRT) was formed in 1923. After
independence in 1947, all the foreign telecommunication companies were nationalized to form the
Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of
Communications. Telecom sector was considered as a strategic service and the government considered
it best to bring under state's control.

The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector
was allowed in telecommunications equipment manufacturing. In 1985, Department of
Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-
distance service that would be its own regulator (separate from the postal system). In 1986, two wholly
government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for
international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in
metropolitan areas. In 1990s, telecommunications sector benefited from the general opening up of the
economy. Also, examples of telecom revolution in many other countries, which resulted in better
quality of service and lower tariffs, led Indian policy makers to initiate a change process finally
resulting in opening up of telecom services sector for the private sector. National Telecom Policy
(NTP) 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications
sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act
as a regulator to facilitate the growth of the telecom sector. New National Telecom Policy was adopted
in 1999 and cellular services were also launched in the same year. Telecommunication sector in India
can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line
services consist of basic services, national or domestic long distance and international long distance
services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic
services. Private sector services are presently available in selective urban areas, and collectively
account for less than 5 per cent of subscriptions. However, private services focus on the
business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user
group and videoconferencing. Cellular services can be further divided into two categories: Global
System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM
sector is dominated by Airtel, Vodfone-Essar, and Idea Cellular, while the CDMA sector is dominated
by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony
services are the major growth drivers for cellular industry. Cellular operators get substantial revenue
from these services, and compensate them for reduction in tariffs on airtime, which along with rental
was the main source of revenue. The reduction in tariffs for airtime, national long distance,
international long distance, and handset prices has driven demand.

Classification of Telecommunication services

8
1. Basic services

2. Cellular services

3. Internet Service Provider (ISP)

Research Objective :

Objective of this project is “Factors affecting the pre and post decision of buying mobile and services
by different users.” This project is done in order to analyze all the factors affecting the customer’s
decision made before and after the purchase of mobile phone.

Mobile phones are incomplete product. An Incomplete product is a product that needs further
investment by customer in order to get the utility of a product. For example automobile they require
petrol, VCD players need video CD to give its core benefit to customers without these add on an
incomplete products is of no use to user .Can we imagine an automobile without petrol? No it is not
even giving its core benefit, which is transportations, to its user and therefore mobile is also an
incomplete product because without service provider it is of no use. Therefore a complete buying
behavior cannot be studied by considering both aspects separately. A complete picture of factors
affecting buying decision can emerge only when pre and post decision of buying mobile set is taken
under consideration

The underlying problem in predicting customer choice resides much more in the fact that purchasing
decisions are made on the basis of many different criteria simultaneously, including brand, quality,
performance, price, features, and so on. This problem is further confounded in service applications,
where customers may consider intangible features and characteristics of the market offerings for e.g.,
service quality, safety, and trust; interactions between service providers and customers.Thus,
incorporating customer preferences and choices into day-to-day managerial decisions is extremely
important for today’s highly competitive environment, because their customers evaluate them on
more than one criterion. In such a scenario, it is worthwhile to find out the various aspects of pre and
post mobile phone and service purchase decision of various user groups.

9
 Introduction

Literature review

Research Flow Research design

and methodology

Research result and

analysis

Discussion

Conclusion

LIMITATIONS OF THE STUDY

 The internet information can be irrelevant.

 Time will be a major constraint.
 Financial constraints
 The respondent may be biased.

10
CHAPTER TWO

MAIN TEXT
LITERATURE REVIEW

11
Consumer Buying Behavior
Definition:
Consumer behavior refers to the mental and emotional process and the observable behavior of
consumers during searching, purchasing and post consumption of a product or service. Consumer
behavior involves study of how people buy, what they buy, when they buy and why they buy. It blends
the elements from psychology, sociology, socio-psychology, anthropology and economics. It also tries
to assess the influence on the consumer from groups such as family, friends, reference groups and
society in general. Buyer behavior has two aspects: the final purchase activity visible to any observer
and the detailed or short decision process that may involve the interplay of a number of complex
variables not visible to anyone.
Factors Affecting Consumer Buying Behavior
Consumer buying behavior is influenced by the major three factors:
1. Social Factors
2. Psychological Factors
3. Personal Factors.
Social Factors
Social factors refer to forces that other people exert and which affect consumers’ purchase behavior.
These social factors can include culture and subculture, roles and family, social class and reference
groups.
Example: By taking into consideration Reference group, these can influence/ affect the consumer
buying behavior. Reference group refers to a group with whom an individual identifies herself/ himself
and the extent to which that person assumes many values, attitudes or behavior of group members.
Reference groups can be family, school or college, work group, club membership; citizenship etc.
Reference groups serve as one of the primary agents of consumer socialization and learning and can be
influential enough to induce not only socially acceptable consumer behavior but also socially
unacceptable and even personal destructive behavior. For example, if fresher student joins a college /
university, he/she will meet different people and form a group, in that group there can be behavior
patterns of values, for example style of clothing, handsets which most of group member prefer or even
destructive behavior such as excessive consumption of alcohol, use of harmful and addictive drugs etc.
So, according to how an individual references him / herself to that particular reference group, this will
influence and change his/her buying behavior.
Psychological Factors
These are internal to an individual and generate forces within that influence her/his purchase behavior.
The major forces include motives, perception, learning, attitude and personality.
Example: Attitude is an enduring organization of motivational, emotional, perceptual and cognitive
processes with respect to some aspect of our environment. Consumers form attitude towards a brand
on the basis of their beliefs about the brand. For example, consumers of Sony products might have the

12
belief that the products offered by Sony are durable; this will influence those customers to buy Sony
products due to this attitude towards the brand.
Personal Factors
These include those aspects that are unique to a person and influence purchase behavior. These factors
include demographic factors, lifestyle, and situational factors.
Example: Lifestyle is an indicator of how people live and express themselves on the basis of their
activities, interests, and opinions. Lifestyle dimension provide a broader view of people about how
they spend their time the importance of things in their surroundings and their beliefs on broad issues
associated with life and living and themselves. This is influenced by demographic factors and
personality. e.g. A CEO or Manager is likely to buy more formal clothes, ties and shoes or PDAs and
less informal clothes like jeans as compared to a Mechanic or Civil engineer. So according to their
lifestyle and profession, the buying behavior of people differs from one another.

CONSUMER BUYING DECISION PROCESS

Definition:
Consumer buying decision process is the processes undertaken by consumer in regard to a potential
market transaction before, during and after the purchase of a product or service. Consumer decision
making process generally involves five stages

Design and Price Call Rates

Newest Looks
Technology

Problem Information Alternative Purchase Post

Recognition Search Evaluation Decision purchase
Actions

Interpersonal
influence

Figure 1 Mobile phone purchaser decision-making process and major influence factors

Problem Recognition:
Purchase decision making process begins when a buyer becomes aware of an unsatisfied need or
problem. This is the vital stage in buying decision process, because without recognizing the need or
want, an individual would not seek to buy goods or service.
There are several situations that can cause problem recognition, these include: • Depletion of stock
• Dissatisfaction with goods in stock •Environmental Changes
• Change in Financial Situation
• Marketer Initiated Activities
It’s when a person recognizes that she cannot make a call from her mobile phone that’s when she

13
recognizes that her phone has been damaged i.e. the phone has hardware problems and needs to be
repaired or buying a new piece.
Information Search:
After the consumer has recognized the need, he / she will trying to find the means to solve that need.
First he will recall how he used to solve such kind of a problem in the past, this is called nominal
decision making. Secondly, a consumer will try to solve the problem by asking a friend or goes to the
market to seek advice for which product will best serve his need, this is called limited decision
making. Sources of information include:
• Personal sources • Commercial Sources • Public sources • Personal experience
Example: The user of the phone after recognizing that her phone is damaged, she will eventually try to
find out how she can repair her phone. If she cannot repair it herself she will ask a friend to help out, if
the friend cannot solve the problem she will go to mobile repair shop, if they also cannot repair it then
she will try to find which mobile phone is good and that can serve her need. In this process of
information collection it will yield awareness of set of brands of mobile phones she can buy.
Alternatives evaluation:
Consumers’ evaluates criteria refer to various dimension; features, characteristics and benefits that a
consumer desires to solve a certain problem. Product features and its benefit is what influence
consumer to prefer that particular product. The consumer will decide which product to buy from a set
of alternative products depending on each unique feature that the product offers and the benefit he /
she can get out of that feature.
Example: When that user got enough information concerning the different brands of mobile phones
available in the market, she will decide which kind of a mobile phone and brand she’s going to buy
depending upon her need for that particular mobile, either a mobile for multimedia and entertainment,
smart-phone or classic phone.
Purchase Action:
This stage involves selection of brand and the retail outlet to purchase such a product. Retail outlet
image and its location are important. Consumer usually prefers a nearby retail outlet for minor
shopping and they can willingly go to a far away store when they purchase items which are of higher
values and which involve higher sensitive purchase decision. After selecting where to buy and what to
buy, the consumer completes the final step of transaction by either cash or credit.
Example: After selecting brand of the phone and model from different alternatives of mobile phones,
she will make a final decision of where to buying that phone and make the final transaction
procedures.
Post-purchase Actions
Consumer favorable post-purchase evaluation leads to satisfaction. Satisfaction with the purchase is
basically a function of the initial performance level expectation and perceived performance relative to
those expectations. Consumer tends to evaluate their wisdom on the purchase of that particular
product. This can result to consumer experiencing post purchase dissatisfaction. If the consumer’s
perceived performance level is below expectation and fail to meet satisfaction this will eventually
cause dissatisfaction, and so the brand and/ or the outlet will not be considered by the consumer in the
future purchases. This might cause the consumer to initiate complaint behavior and spread negative
word-of-mouth concerning that particular product.
Example: If she decided to buy a multimedia phone she will try to compare the quality of music it
provides and pictures taken if they meet her expectations. If she will find that her expectation are meet
she will be satisfied, if she found that there are more additional features that she did not expect this
mobile phone to have, she will be delighted, otherwise she will be dissatisfied.
From marketing perspective, some researchers stated that consumer purchase intention can be studied
through the classical five steps: Need-information search-evaluation of alternatives-purchase- post-
purchase evaluation. The five step model is usually suitable for decision making that assumes rational
problem solving behavior and in most cases complex decision making. To acquire the new mobile

14
phone follows this traditional view of buying process. It has been noted that purchase intention have
both utilitarian and hedonic features, and thus it can also be proposed that the purchase intention
between mobile phone have both utilitarian (e.g., communication, calendar, time planning, and email
service to PCs) and hedonic (e.g., games, music, and camera) features. The younger the consumer the
more hedonic features consumers tend to value in mobile phones. Another important aspect that has
risen from different studies is that consumer purchase new phone due to the fact that their existing
one’s capacity is not appropriate referring to the idea that new technology features such as built-in
cameras, better memory, radio, more developed messaging services, and color displays are influencing
consumer purchase intention to acquire new models . Thus, it can be expected that new features will
influence the intention to acquire new model phones. In addition, price of the phone is also the most
important factor in the purchase intention of mobile phone model. Also, this researcher mentioned that
price of the phone has been identified as a critical factor in the purchase intention of the mobile phone
model, especially among younger people . Legard 2001 has shown that the customer’s growth demand
in Asia-Pacific region countries in mobile phone subscriptions would reach a total of 230 million in
2002.
Customer-Perceived Price:
The perceived price includes all the cost the buyer faces when making a purchase: purchase price,
acquisition costs, transportation cost, installation cost, order handling, repairs and maintenance, risk of
failure or poor performance. Price of mobile phone has been identified as a critical factor in the choice
of the mobile phone model, especially among younger people. Also price of the mobile phone plays an
important role in the choice especially among lower income consumers. Therefore, several researchers
have said that price and properties were regarded as the most influential factors affecting the purchase
of a new mobile phone and also the most important in relation to the choice of the mobile phone. From
consumer’s cognitive conception, price is something that must be given up or sacrificed to obtain
certain kinds of products or services (Zeithaml, 1988). Price is an indicator of cost because consumers
have to sacrifice or give up a certain quantity of money in an exchange for the product and associated
benefits (Agarwal, S., Teas, R (2002)). Because most consumers operate under budget constraints, the
higher the price of a product, the higher the perceived monetary sacrifice associated with purchasing
the product and the lower the availability of money to purchase other products. Anderson, Fornell and
Lehmann (1994) also emphasized price as an important factor of consumer satisfaction, because
whenever consumers evaluate the value of an acquired product, they usually think of the price. Due to
the researchers’ viewpoint above, two components come out perceived monetary price and perceived
non-monetary price.

Perceived Monetary Price:

This refers to perceived price in the eyes of the customer, for the usage of product, whereas the
objective price is the actual price. There are differences in how customers perceive the price,
expensive or cheap. Some customers do not take notice of the price.

Perceived Non-Monetary price:

This price represents the other costs than the monetary and refers to time costs, energy costs, and
psychic costs. Therefore, price plays an important role in consumer sacrifice and purchase intention
especially the expected price reduction seem to be a factor slowing the diffusion of new model phones
especially among lower income consumers. Finally, the price of the mobile phone is very important to
the consumers’ choice especially among lower income consumers.

Customer-Perceived Quality:
Basically, most of companies greatly challenged each other in the same market segmentation to gain
more market share or become a market leader because of many factors such as quality, service and so
on and forth. Thus, product quality was the crucial topic that marketer has to receive considerable

15
attention in the marketing literature. Zeithml (1988) found that quality is broadly defined as superiority
or excellence, and perceived quality can be extendedly defined as the consumer’s assessment about the
product’s overall excellence or superiority. According to cue-utilization theory, several researchers
demonstrated that product consist of an array of cues that serve as surrogate indicators of quality. Cues
can be classified into two categories: extrinsic and intrinsic. Extrinsic are product-related attributes
that are not part of the physical product (price, brand name, and packaging). Intrinsic cues represent
product-related attributes that cannot be manipulated without changing physical properties of the
product (such as ingredients of grocery product, clothing size, design of an automobile). Importantly,
he further defined perceived quality: (1) perceived quality is distinctive from objective or actual
quality, (2) a higher-level concept rather than a specific attribute of a product, (3) a global assessment
that in some cases resembles attitude, and (4) a judgment usually made within a consumer’s evoked set
Zeithaml (1988). The ability of consumers to assess quality based on intrinsic attributes depends upon
whether or not it is feasible to sense and evaluate intrinsic attributes at the time of purchase (Nelson,
1970). Holbrook and Corfman (1985) noted that early philosophers used the word “quality” to refer to
explicit features (i.e., properties or characteristics) of an object as perceived by a subject Importantly,
according to some previous research Garvin (1987) proposed that product quality can be captured in
eight dimensions: performance, features, reliability, conformance, durability, serviceability, aesthetics,
and perceived quality. Also, Olshavsky (1985) and Parasuraman et al. (1985) viewed quality as a form
of overall evaluation of a product, and similarity in many ways to attitude. Zeithaml (1987) defined the
perceived quality as the consumer’s assessment about an entity’s overall excellence or superiority, and
it is also viewed as the degree and direction of difference between consumers’ perceptions and
expectations. Finally, consumer perceived quality of mobile phone basing on what have they expected
and perceived after acquiring such as audibility, properties, hedonic, durable….etc. Moreover, product
is good quality when the customers’ expectation towards products can meet or satisfy their needs. In
line with Bergman et al, 1995, p.13) said that a definition of quality is “It’s ability to satisfy, or exceed
the customer’s needs and expectations”.

Customer-Perceived Sacrifice:
As mentioned earlier, the reasons for focusing on sacrifice are many. Monroe states that people, in
general, values a reduction of sacrifice more, than a gain of benefits. By emphasizing the reduction in
sacrifice, the reduction is perceived as an increase in value. Furthermore, it seems logical to start
reducing the existing sacrifices, rather than focusing on the increase of the benefits part. This approach
is further supported by Ravald et al . In this section the components of the sacrifices will be presented
and also motivations will be given why different components are excluded in the sacrifice part. The
main reason why some are excluded depends on the component’s influence in a mobile phone.
Zeithmal et al (1996) argue that the sacrifice components contain both monetary and nonmonetary
costs, which seems logical. This will therefore form the base of our frame of reference. The monetary
costs are relatively easy to obtain and understand. These are purchase price, acquisition coast,
transportation, installation, order handling, repairs and maintenance risk of failure or poor
performance. The monetary costs are not only sacrifice that consumers make to obtain products. Non-
monetary represent other sources of sacrifice perceived by consumers when buying and using a
product. Times cost, search cost and psychic cost often enter into the evaluation of whether to buy or
re-buy a product, and may at times be more important concerns than monetary price. Kolter also notes
these elements of non-monetary costs, including time cost, energy cost and psychical costs. According
to non-monetary cost, we introduce the passive Time cost, Active time cost and Psychic cost. These
new concepts seem to be better suited to describe the costs involved. Both Zeithaml et al (1996) and
Kolter (2000) concur on the time cost as a form of passive waiting, and on the psychical cost, which
revolves around fears. Nonetheless, they have different definitions when discussing the costs that
include some form of effort that has to be invested in order to be able to use the product. According to
this reason, in order to buy mobile phone product consumer has to face the sacrifices both money and

16
other resources (e.g., time, energy, effort) to obtain products and services. Therefore, (Horton, 1976)
defined financial risk as the probability of monetary loss associated with buying a product because the
product may need to be repaired, replaced, or returned. Performance risk refers to the loss incurred
when a product fails to meet a consumer’s expectations. Privacy risk reflects the degree to which
consumers suffer a loss of privacy owing to information collected about them when they decide to buy
products .Recent research reveals that saving time has become a key concern of consumers for buying
products such as mobile phone product. Many customers in the globe definitely do not want to spend
much time jut to buy mobile phone. Thus, these studies also show that consumers are willing to spend
money to get more convenient package. As proposed the higher the price of a product, the higher the
perceived monetary sacrifice associated with purchasing the product and the lower the availability of
money to purchase other products. Many consumers consider time as an important commodity.
Anything that can be built into products to reduce time, effort, and search costs can reduce perceived
sacrifice and thereby increase perception of value. At the same time, the higher price represents a
monetary measure of what must be sacrificed to purchase the goods, leading to a reduced willingness
to buy. If we measure the concept of sacrifice from a budget constraint perspective this measure allow
for the possibility that the perception of sacrifice will vary depending on an individual’s financial
situation and the same price may involve a higher level sacrifice for a financially constrained
individual when compared with a financially endowed individual. However, according to Zeithmal
found that consumer may also incur non-monetary sacrifices such as time, effort, and search cost. For
instance, customer wants to obtain a telephone service besides having to pay for the first month rental
plus a deposit, he must also consider the cost of transportation, internal wiring, waiting time, repairs
and maintenance, risk of failure and/or poor performance.
As a result of the reasoning above, the following frame of reference has emerged.

Sacrifice
s
Monetary Nonmoneta
cost ry Cost

Purchase Passive
price time cost

Acquisition
Active
cost Fear of not
time cost
The emerged frame of reference can be seen in Figure 2.1. understandi
Installation
cost Psychical
costs Fear of
Risk of uncertainty
failure or
poor

Purchase price: In this project we define purchase price to the amount of money the customer need to
give in order to obtain a product.
Acquisition cost: Our definition of this refers to the other costs than purchase price when acquiring a
product. This can be complementary equipment that is needed in order to use the product or service
offer. In the acquisition costs is also transportation cost included. Transportation costs, in this case, are
not for transportation of the service, but rather the cost for visiting retailers where the product can be
bought etceteras.
Installation cost: The definition of this monetary cost is the costs that appear when setting up the
product or service and make the product and service useable for customer.
Risk of failure or poor performance: The monetary costs associated with the post-purchase costs
caused by the fact that the product or service does not carry out with the expectations. The reasons for
this can be of different kids. In all, this causes new cost in order to get a satisfactory solution.

17
Passive time costs. The definition of passive time cost is a non-monetary cost that occurs when the
customer for some reason passively has to wait on the service delivery that is the cost customer
sacrifices when waiting in line to get a product or service deliveries.
Active time costs: Active time cost is a non-monetary cost that is defined as time cost where the
customers have to contribute actively to reach the desired results. There is energy or an activity needed
and the cost is exemplified by search costs, that is the energy it takes for a customer to identify and
select the desired service, both in time and resources. In this time cost the energy to learn and
understand the service and product are also included. The meaning of learning is the efforts invested
for gaining knowledge of how the product can be used to its fullest potential.
Psychical cost: The psychical costs are often the most painful for non-monetary costs. The two
components are:
 Fear of not understanding, which means that the customer feel insecure in using the new
mobile phone.
 Fear of uncertainty, can be explained as the customer does not feel that he or she can
understand how the use of the product influences other parts of the company.

Customer-Perceived Value: To be able to discuss value, there is a need to define what value really is.
Monroe (1990) defines perceived value as the ratio between perceived benefits and perceived price.
Perceived
benefits
Perceived
value

Perceived Customer-Perceived Value

price

Kotler (2000) argues that value is the difference between total customer value and total customer cost,
whereas Zeithaml et al (1996) offers a broader definition of value; they argue that value is the
customers overall judgment of what is received and what is given.

Total Total Customer

Customer Delivered
Cost Value
Value
Value Source :Kotler (2000)

What is
Value received?

What is
given?

Value Source: Zeithaml et al

Despite variations, value is formed by a positive, contributing part and a negative, deducing part.
However, the definition found that to be suitable for this project, is that value is the ratio between the
benefits a customer gains when purchasing and using product, and the sacrifices the customer has to
make in order to be able to use the product. Given the definition of value, it can be increased either by
increasing the benefits or by reducing the sacrifice. Importantly, customer perceived value of products
sometimes depended on the time and places. Thus, Woodruff, defined value is the perspective of
customers, considering what they want and believe that they get from buying and using a seller’s
product. Zeithaml found that integrated the viewpoints of perceived value into an overall definition as
the consumer’s overall assessment of the utility of a product based on perception of what is received

18
and what is given, and pointed out that value represents a trade-off of the salient give and get
components which are perceived as benefits and sacrifices, respectively. Based on previous
definitions, perceived customer value is defined here as a consumer’s perception of the net benefits
gained in exchange for the costs incurred in obtaining the desired benefits. We argued that some
consumers perceive value when there is a low price; others perceive value when there is a balance
between quality and price. According to Butz and Goodstein demonstrated that customer value is the
emotional bond established between a customer and a producer when the customer used a salient
product or service produced by the producer and found that the product provides an added value. We
found that there are different classifications of types of customer value.
The model at Figure 2.2 shows how attributes, consequences and desired end-states (goal) are linked
together in a mean-end model that ultimately allow the determination of customer-perceived or desired
value. So that, Woodruff stated that it is possible to take a top-down or bottom-up view of the
hierarchy more efficient way of increasing value, than increasing the benefits. Especially, it can be
suited in the area of mobile communications context. Sawyer and Dickson (1984) conceptualized the
meaning of value as a comparison between ‘weighted get attributes’ and ‘give attributes’. However,
the most common definition of value in the marketing literature review is the definition proposed by
Buzzell and Gale (1987) as “a ratio or trade-off of total benefits received to total sacrifices”.

Desired End State Describe the

end goal of person and /or
organization

Perceived Customer value

Consequences Describes the

desired user/product interaction in
use situation

Attributes Describe the product

attribute and attribute performance
Source: Woodruff andGardial (1996 & Woodruff(1997).

Willingness to buy: Willingness to buy is a normal effectiveness measurement and often used to
anticipate a response behavior. In addition, it seems that size and brand play to some extent and
important role in decision making. Liu (2002) for instance surveyed Asian mobile phone users and
found that size of the phone has no impact on mobile phone choice, but these findings might be due to
the fact that all competing brands have quite similar sized phones that are small enough. Liu continues
that the trend will actually be not towards smaller phones but towards phones with better capacity and
larger screens. The economic theory of utility assumes that consumers are economically rational and
so will try to achieve the maximum utility, or satisfaction, possible given their resource limitations

19
(such as budget, time, and cognitive capabilities). According to Patterson et al (1997) provides a
model of the customer purchase intentions. Based upon the empirical study, they state that there is
exists a linkage between value, intentions and satisfaction. The results showed that value was found to
have a strong and significant impact on satisfaction, and satisfaction in turn has a significant effect on
intentions.

VALUE

Satisfaction

Intentions

Figure 2-3. Linkage between intentions, satisfaction and value Source: Patterson et al, (1997).

Previous studies have provided ample evidence for the positive influence that perceived value has on
purchase intention or consumers’ willingness-to- buy. In Mobile phone-based consumer markets, the
same positive effect of perceived customer value on purchase intention is anticipated. Importantly,
willingness to buy could be defined as purchase intention of a customer to buy products. Actual
behavior and intention have been found to be highly correlated. Another important aspect that has
risen from different studies is that consumers purchase new phones due to the fact that their existing
one’s capacity is not appropriate referring to the idea that new technology features such as built-in
cameras, better memory, radio, more developed messaging services, and color displays are influencing
consumer decisions to acquire new models .Thus it can be expected that new features will influence
the intention to acquire new mobile phones. People learn about cellular phone from many sources,
mainly from friends and families, through advertisement and from their own experience. In the long-
run, advertisement help brands by making consumer less price sensitive and more loyal. Exposure of
an ad is crucial to be effective in changing consumer knowledge, attitude and behavior. And for the ad
to be seen, it must grab the attention of its target audience. ‘Ads originality’ as defined from Pietes,
Warlop and Wedel, (2002) were easier for customer to remember than ordinary ads by increasing
attention to it. This thus increased attention to the brand being advertised. However, regardless of the
content, ads for brand leaders are more successful due to the influence of the brand. Ads for less
popular brands may be less successful even though the content may be good. However whether
consumers like or dislike an ad does not necessarily lead to brand acceptance or rejection. So, even
though consumers may like the ad that they see, it does not necessarily mean that they will go out and
buy the brand advertised. Usually the consumer uses their attitude towards the ad in brand choice
equaled that of attitude towards the brands. As a marketer I know that advertising messages are
interpreted differently between different genders and also between different groups of people

In building brand preferences, Alreck and Settle (1999) proposed six strategies:

1) Need association- the product/brand linked to need through repeated messages. 2) Mood
associations- brands should be associated with good feelings through slogans, songs. 3) Subconscious
motivation-use of symbol to excite consumers’ subconscious motives. 4) Behavior modification-
consumers are conditioned to buy the brand by controlling cues and rewards. 5) Cognitive processing-
penetrating perceptual and cognitive barriers to create favorable attitudes towards the brand/product. 6)
Model emulation- portraying idealized lifestyles for consumers to imitate.

Brand preference and product attribute: Attributes are the characteristic or features that an object may
or may not have and includes both intrinsic and extrinsic. Benefits are the positive outcomes that come

20
from the attributes. People seek products that have attributes that will solve their problems and fulfills
their needs Understanding why a consumer choose a product based upon its attributes helps marketers
to understand why some consumers have preferences for certain brands . In the Lancaster model of
consumer demand, also referred to as the product attributes model, was used to evaluate brand
positioning. This model assumes that consumer choice is based on the characteristics (or attributes) of a
brand. Each product is a bundle of attributes and that choice is based on maximizing utility/satisfaction
from the attributes subject to budget constraints. Both tangible and intangible attributes of a product are
equally important in choosing a product or brand. It was, found though, that the more attributes (non-
negative) associated with a brand, the more loyal the customer Romariuk and Sharp (2003) suggested
that marketers should focus more on how many attributes the brand should be associated with and not
what attributes. However, this study did not specify what sort of attributes marketers should associate
the brand with; i.e. whether they should be relevant or irrelevant attributes, tangible or intangible etc
.This is because it is important that consumer accurately lean about product attribute performances
since it would influence their interpretations of product performance by causing memory encode and
retrieval bias. Unfounded product attribute relationship beliefs can mislead them into expecting
something that is not there. Hence if products fall short of customer expectations, then dissatisfaction
would result. It was also found that through irrelevant, some attributes may still be important in
influencing consumer choice. Persistent preferences for product attribute occurs when there is low
ambiguity in the initial potential choice for salient attributes coupled with experience, although those
attributes maybe irrelevant (i.e. an attributes usually not associated with favorable brand outcomes.
According to Mason and Bequette perceptions on product performance based on salient attributes are
more important in influencing the consumer purchase behavior than actual product attribute
performances. For low-involvement products, consumers have more objective view of the nature of the
attributes (eg. food, cosmetics) because they are constantly being advertised and promoted. We can say
that consumer evaluation of a product can be broken down into evaluation related to product (tangible
or physical attributes) and brand name (intangible attributes, or images added to the product due to its
brand names).However perception of product performance on the salient attributes are more important
than actual performance. The attributes that consumers expect in a product and how positively or
negatively they rate these attributes to help develop and promote a successful product. Retailers need to
be knowledgeable of the product attributes perceived as the most important by each individual
consumer group in order to build and maintain market share. It is the consumer who determines which
attributes matter to them. Different consumer groups place different importance on different attributes.
Thus the need for the study is justified because most of the past researches are either done on either
considering the handset or about the service providers, which does not extract the complete and true
picture of consumer buying behavior of mobile phone. The adoption of mobile phones has been
exceptionally developed in many parts of the world. All though mobile phones have become a
fundamental part of personal communication across the globe during the past ten years, consumer
research has devoted little specific attention to motives and purchase intention underlying mobile phone
buying decision process. There are numerous complex factors that need to be taken into account when
exploring mobile phone buying decision process, including both macro-and microeconomic conditions
that affect the evolution of mobile phone market in general and individual consumer perceived value
and purchase intention in particular.

Moreover, it is important to differentiate between buying behavior referring to perceived value and
willingness to buy between different mobile phone models and brands and change aspects referring to
reasons that affect changes. As the mobile phone market is a typical technology push driven market
where products are created ahead of the recognition of existing recognized consumer needs obile
phone development is based on consumers’ possible future needs and thus companies that best guess
the technologies and services of future will be the leaders in the discipline. The telecommunications
sector has been struggling over the past years, not only due to high prices companies paid for UMTS
licenses but also due to the global economic downturn. Although mobile phone handset market is

21
growing five to ten percent per year and operator subscriber bases are growing, average revenue per
user (ARPU) is falling and price competition is heating up. We are currently experiencing a shift from
the second generation (2G) to the (3G) mobile phones, which is expected to change the way people
use their mobile phones. The rise of 3G network and its consumer acceptance is said to be one of the
toughest marketing challenges in recent history. In general terms, the success of 3G depending
primary on how the real benefits of the technology are marketed to consumers on one hand and on
pricing policy of the products on the other. If we look beyond the hype around 3G it is obvious that we
are not experiencing a revolution in mobile phone markets, rather an evolution where consumers are
able to do the same things they could with 2G and 2.5G (e.g. GRP and EDGE technology), but only
better and faster in terms of download times. The mobile phone industry is currently using many
standards (e.g. Japanese PDC, European GSM, American CDMA), which has made it difficult for
users traveling to utilize their phones extensively. The evolution of 3G is expected to simplify this as
only two standards are competing, the WCDMA (Wide-Code Division Multiple Access) that will
become the European UMTS (Universal Mobile Telecommunications System), CDMA2000 (Code
Division Multiple Access), and the Chinese TD-SCDMA (Time Division-Synchronous Code Division
Multiple Access). The WCDMA standard is said to dominate the global market for the next five years.
Consumer shift from 2G to 3G means that in order to be able to use the services offered by the faster
network consumers need acquires new mobile phone handsets equipped with Internet access and new
features such as possibility to receive and send multimedia messages. Although recent news indicates
a strong demand for new mobile phones equipped with color displays and build in camera, there still is
plenty of skepticism in the media as well as in the market itself towards the technological
development. The development of mobile phones is leading the market into a situation where the
basic need, communication, is actually broadened to new means of interaction and personal digital
assistance. In fact, mobile phone evolution will eventually lead to the convergence of mobile phones
and digital personal assistant (PDAs). Thus, communication is not the only need mobile phones fulfill.
Beyond voice, three main trends shaping the so-called mobile culture have been identified: 1)
communication services such as voice, text and pictures, 2) wireless Internet services such as
browsing, corporate access and e-mail, and 3) different media services such as motion pictures, games
and music. Mobile phone development has been rapid and new models are introduced to the markets
almost on a weekly basis. Especially, 3G networks and smart phones are expected to affect the
evolution of the mobile phone market in short future . However, at the present majority of new mobile
phones purchased is low-cost handset without the latest technological features. Whereas color displays
have become common with sales of over fifty percent in 2003 in some countries. In addition, phones
with built-in camera reached globally below 15 percent of the total sales in the last quarter in 2003
(Gartner Dataquest, 2004; Strategy analytics, 2003). However, more and more users are acquiring
camera phones and learning how to take, send and print photos. The sales of built-in camera phones
has contributed to an increase in mobile data usage and also enhanced device sales. Research institutes
forecast that step by step properties like built-in camera and calendar will become a standard inclusion
within mobile phones .In terms of technology, the mobile multimedia market will remain in its infancy
during 2004, but companies and analytics expect that the demand will continue to develop for mobile
imaging, games music and other media services as users become more aware and familiar with the
services and their different purposes of use. But as the Internet finally finds its way to mobile phones
the basic need to acquire a mobile phone might expand from communication to gaining Internet
access. This in turn is expected to bring mobile phone one step closer to personal computers. The
primary objective of this project is to examine the important of different factors affecting consumer
perceived value and purchase intention related to mobile phone purchasing and followed by selection
of mobile service provider and investigate the main reasons to change mobile phone as well as service
provider. Consumers can benefit more as long as sacrifice decreases such as monetary and non-
monetary cost. The monetary costs resolves mainly around the purchase price, but the entire sacrifice
part (i.e., purchase price, acquisition costs, transportation, installation, order handling repairs and

22
maintenance, risk of failure or poor performance) are likely to fit into the monetary cost. The non-
monetary cost comprises of such costs derived from time, energy and psychic. The reduction of
monetary and non-monetary components could be somewhat difficult – there are already fundamental
strives to reduce monetary costs in profit maximizing companies, and the extent of the non-monetary
costs are not easily ascertained. All in all, the sacrifices, what would concept is complex, and any
customer attempting to reduce sacrifice will have a boring task approaching. Nevertheless, if consumer
would set out to reduce the sacrifices, what would be the most profitable action? In order to determine
a course of action, customer needs to know the factors that affect the customer perception of value.

Moreover, telephone features, connection fee, access cost, mobile to mobile phone rates, call rates and
free calls are not only the most important factors influencing the consumers but also innovative
services, multimedia, design, brand and basic properties, outside influence, price, and reliability
among lower income consumers. From customer’s perspective, customers had different viewpoints
some customers want to buy the products with high price because they found it satisfied them with
good quality, however some customers are not, just want to go with the lower price because they will
take less risk. As these researchers mentioned that price definitely acts on consumers in two different
ways, first its signals quality and second its signals the amount of monetary sacrifice involved in
purchase intention. In order to use the price as the indicator of purchase intention is really not adequate
yet because only prices could not represent the decision-making. So that, (Monroe, 1990) found that
how consumer uses price information in evaluating products is influenced by decision-making. And
some researchers answered price has a dual effect on consumer decision. First, price is a cue to
perceived quality. Second, price is an indicator of financial sacrifice. Normally, customers’
perspective is willing to get benefits exceed sacrifice otherwise they would not buy. As several
scholars (Monroe, 1990; Zeithaml, 1988) found that to evaluate products positively, consumers must
perceive that benefits exceed sacrifices. Nowadays, some customers really focus on prices to buy
products because high prices sometimes could represent for product qualities. So that, Olson, has
suggested that people are more likely to use price as an indicator of quality for relatively expensive
products. Reversely, previous researchers mentioned that, consumers should not only focus on
qualities as an indicator to make choice but they also need to take the perception of prices into
consideration as well because the perception of prices directly influences willingness to buy. As
Szybillo and Jacoby (1974) suggested that value for the money would have a strong relationship to
perceived likelihood of purchase than would perceive quality. Moreover, the value is one of the major
factors impacting the purchase intention through mobile phone products because it can distinguish
between costs and benefits. Thus, the researcher found that value perception is the important tool to
evaluate the result of cost-benefits trade-off. According to this standpoint, we don’t know whether
price, perceived quality or perceived value is the most important and very much influenced the
willingness to buy for mobile phone products. In order to monitor the issue of price, sacrifice, and
perceived value or quality very much influenced on purchase intention we have to compare among
them to it. Dodds and Monroe,stated that when compared to perceived quality, perceived value is more
directly linked to consumers’ willingness to buy.In addition, regarding Dodds et al. (1991) intended
that the involving linkages among extrinsic quality and sacrifice, perceived quality, perceived
sacrifice, perceived value, and willingness to buy based on four promises. First, consumers’
willingness to buy is a function of their perception of product value. Second, consumers’ perception of
value is a function of a tradeoff between their perceived product quality and monetary sacrifice. Third,
consumers’ perception of product quality is a function of extrinsic cues, such as brand name, price,
and retailer reputation. Fourth, consumers’ perception of sacrifice is a function of price. Thus, several
researchers could make some questions.What do consumers mean by quality and value? How are
perceptions of quality and value formed? Are they similar across consumers and products? How do
consumers relate quality, price and value in their deliberations about products?

In order to uncover the fundamental key factors for price, perceived value, perceived sacrifice and

23
perceived value lead to customer’s willingness to buy will positively or negatively influence each
other it will be the final results after collecting the data and analyzing it. Therefore, there is a strong
need to reflect and realize what its factors will be affected the actual potentiality of customer’s
willingness to buy needs to be thoroughly studied. Additionally, we found that factors influencing
customers to buy are different depending on income level, education and so on and forth. Truly, the
higher educational and income level people tend to focus on quality, however customers with lower
educational and income level tend to rely on price as a cues to quality. It seems more logical, however,
to expect that higher educational and income levels would be associated with what might be termed
greater independence and objectively in forming quality judgments. There are several researchers
stated that income level influences decisions to purchase and apparently assessments of quality.
Additionally, Shapiro also found that persons with lower educational levels want to rely on prices. Tull
et found that educational level seemed to affect purchase intention by implication of quality
perceptions. Therefore, we could assert that because higher incomes and educational levels tend to be
associated, they might be expected to have essentially similar effects on perceptions of quality.
However, due to this research we still don’t know yet whether what factors really impact consumer
sacrifice and purchase intention. Therefore, the following questions need to be addressed in this study:

(1) What factors determine consumer sacrifice and purchase intention for Mobile phone and network
service providers?

(2) Which of the sacrifice components are most important to them, when evaluating Mobile phone and
network service providers?
Currently, as we observed, that price is likely to be a major cue for product quality. Although (Olson,
1977) stated that price has long been considered as an important cue for product quality and Stafford
and Enis inserted that their experimental subjects used price as a cue to product quality. That finding
was in agreement with the results of most, though not all, of the extant experimental research on the
influence of price on perceptions of quality. The effect generally is agreed to be positive and it is
strongest when price is the only experimental treatment. When others cues are present, some
researchers have found that price remains the dominant cue but others have found that it declines in
importance and may become insignificant in its impact on quality perception. Thus, some researchers
suggested, however, that the general positive relationship doesn’t not hold if more cues are available
such as brand name, or store name).Additionally, there is a positive relationship between price and
product quality exists unless consumers use price as a quality indicator as it simply reflects a belief
that supply and demand forces lead to order products relying on price scale. Nevertheless, other
researchers have found that price goes on being to be a quality cue in the present of other extrinsic
cues such as brand name or store name. Therefore, price should be a positive indicator of perceived
quality owing to the general absence of intrinsic cues in buying cell phone products. As we have
already known, most consumers need enough information in order to buy product. Based on this
scholar found that the relationship between price and quality persist because consumers do not have
total information about product quality moreover, a different view- point was suggested over forty
years ago that buyers might use price as an indicator of product quality. Hence, they use extrinsic cues
such as price, brand name, and store image as indicators of product quality. Currently, most of
customers mentioned that high price is going to be high quality. So that, he inserted that higher
perceived prices lead to greater perceived quality and, consequently, to an increased willingness to
purchase based on perceived quality. Peterson and Wilson (1985) have suggested that over time and
though experiences, some consumers develop for certain product categories and expect that “the
higher the price, the better the quality”. Some previous research have found that consumer with a
strong price-reliance schema are more likely to prefer higher-priced products, which implies that
they perceive a positive relationship between price and product quality. Moreover, several researchers
have mentioned that price is thought to impact quality because high quality products generally cost
more to produce than low quality product and competitive pressures limits firms’ opportunities to

24
charge high prices for low-quality
quality products. We really agree that customers see price as the indicator
of quality is likely only for expensive products. Therefore, customers are more likely to use price as an
indicator of quality for relatively expensive products.
p Finally, we find that there are many conflicts
among the previous researchers because some researchers did have distinct ideas relying on the
relationship between perceived price and quality. Nonetheless, we will know whether how strong is it
the relationship
ship between perceived price and quality for consumers on cell phone product

Industry overview:

In the cell phone industry, the products and services are highly standardized. In the past, the products
differentiated in cell phones and services. Today, with th more technology enhancement, Product
Characteristics: In the cell phone industry, the products and services are getting highly standardized;
the products in different companies are essentially similar. Since this is a cell phone industry, there is
a maximum
ximum amount of products and services that consumers can choose from. Yet, consumers do not
want to purchase cell phones at a higher price value unless the companies are able to make it
attractive. Camera cell phones: The key factor consumers consider whenn choosing a device is their
context. Phones with the ability to take images, both still and video have captured about 40% of the
wireless phone market. But despite the product’s popularity, customer users want higher resolution,
the ability to use storage
ge media, and many other state of the art features found in modern digital
camera. With consumers’ desire for high resolution digital camera, the market for camera and
camcorder phones will peak in 2007.Nowadays camera phones are the rage in markets all aaround the
globe because consumers are attracted to the convenience of having an imaging device with them at all
times. The business model is focused on users displaying and sending images wirelessly. As advanced
3G networks are implemented in the coming years,
years, the advance higher resolution camera phones will
likewise become very popular. There are three critical pieces to this type of phone:

1. The device (phone) 2. The application (picture taking) 3. The network (2G/EDGE
(2G/EDGE or 3G)

Government Other

Regulations Obligations
HANDSET
MAKER

END USER

Application
SERVICE
software
PROVIDER
provider

25
Industry Structure

The introduction of 3G network will accelerate the adoption of the camera phones. Why? Because
the timing is right for digital imaging to become part of the cell phone industry, especially in new cell
phones and new networks. Camera phones would not work with older phones and networks, because
there are small monochrome displays and little storage, and the speed to transmit a digital photo would
take a long time. Just as important is improvement to camera phones, new advanced third generation
wireless network (3G) will enable the cost effective transmission of these higher-resolution images.
Purpose of migrating to 3G is to enable users to spend more time using their multimedia phones every
day by enjoying the world and keeping in touch with their friends and families. Here are
characteristics of the 3G network on cell phones:

The 3G networks are able to transmit at 380 K bps.

There is also improvements on the image to 330,000 pixels

Internal storage grew so consumers could store a dozen photos on their phone. This means better
pictures, better experience, and consumers bought them – by tens of millions of cell phones around the
world. Consumers do not have to pay extra for the camera features; they will get the camera as part of
the phone. Although camera phones are great to take pictures, consumers use them as wallpaper and
screensavers instead of printing. This is how consumers change the way they interact with digital
technology. Today, camera phones are so popular that every cell phone company or provider offers
them. Features on all cell phones are similar. If consumers were to just buy cell phones for their
features, consumers can find a similar phone in other companies as well. This makes the industry very
competitive which drives companies to lower product cost and service cost in order to bring large
volumes of consumers. Although camera phones are very popular, one factor that makes consumers
dissatisfied is the picture quality, which is limited when these images are printed or sent:

 Vast majority of users use high-resolution camera in addition to their camera phones.
 3% of consumers use their phone as their only digital camera
 Most consumers take fewer than 10 pictures with their camera phone each month
 Fewer than 2% of consumers say they will consider a camera phone with less than one mega
pixel 50% of consumers say they would only consider a handset with more than two mega
pixels of resolution.

Downloadable Application:

Cell phones are programmed allowing users to download applications onto their cell phones. Such
common downloads are of games such as JAMDAT Bowling. Most applications are large, between
40 KB to 550KB, and with applications ever growing-in-size and very-more-appealing, better
multimedia and larger memory in the phones, and better network capabilities for economic high-speed
data access. Video (Streaming): Video Streaming is when videos are sent over a wireless network to a
cell phone. The Video streaming with 3G helps in ways that is usable and cost effective by the
consumer, and economical viable for the wireless operator.

Internet Access via PC Card: Wireless PC Cards in smaller form will be produced for handhelds. IT
wants access through the internet at the fastest data rates possible, and at the lowest costs. Operator
wireless also wants to keep consumers happy with internet access which will maximize revenues and

26
reduce their costs.

Scale Economies: There are two types of economies of scale pertaining to the cell phone industry.
They are the internal and external economies.

1) Internal Internal economies of scale are economies made within a company as a result of mass
production. So as a company produces more and more products and services to consumers, the
average cost begins to fall so the companies should focus on the following six factors:

 A technical economy: when the companies use its entire means to generate revenues and
increase profitability. This includes spending a large amount of money on capital to start the
company.
 Managerial economies: when the company splits up managerial duties to meet specific
company goals and values. This in turns helps to complete specific tasks and improve the
company to better service consumers.
 Financial economies: cell phone companies borrow lots of money to purchase capital in order
to create products for consumers.
 Marketing economies: where cell phone companies spends a lot of money to advertise their
products and services on television and in newspapers everyday to reach consumers across
nations. Companies resorts to marketing in hope of attracting more consumers to try their
products and to generate higher profits and revenue.
 Commercial economies: cell phone companies order their products and supplies in bulk at a
lower rate rather than buying them separately.
 Research and development economies: the cell phone companies are continuously developing
new and advance technology cell phone to be in pace with the competitive market.

ii. External The external economies are made outside of the company as a result of its location. Most
cell phone companies have a corporate headquarter that concentrates on the following to keep track of
the company’s progress.

 Cell phone companies have licensed franchises that operate to sell products and services to
consumers. They have a network that connects them to manufacturers, service carriers, and
main corporate officer that is the backbone of the stores and products it sells.
 The cell phone companies works closely with service carriers to provide phone service such as
clear phone calls, not lost calls, and good receptions.
 The companies work and communicate directly with manufacturers reputable for the new
phones enhancement, upgrades, and features.

Learning & Experience Effects: The major complaint found in the cell phone industry was cost and
services. So to improve their service, the company has increased the training for customer service
employees to 10 days a year, and introduced a new plan to address common complaints; also tied
executive compensation to customer satisfaction. There are more options that buyers can choose from,
whether it be the actual phone itself or the service plan. Companies are now giving customers a series
of contract terms and costs as well as giving them a sample of how their first bill will look like so they
understand the contract before signing it. Service carrier is a very important factor to maintaining
consumer satisfaction and to keep consumers. With that, companies are all pushing new data services
for business customers to increase new revenue sources.

Capital Requirements: The cell phone companies require large capital to enter and remain in the
market successfully. Companies require capital to create products that attracts consumers and for total

27
assets and revenues to enlist other products and services that are featured with cell phones. Cell phone
companies work with manufacturers to create new technological and innovative cell phones in the
market today to attract consumers. A valuable capital in the cell phone industry is the consumers
because revenue and profits depends on them who buy the companies’ cell phones. New products are
introduced continually, technology evolves on a daily basis, and customers are eager to become part of
the future of a wireless society. This makes the market very competitive and large companies that
have big economies of scale provide a highly automated service to a large number of customers, and
have the financial resources required in building and maintaining a large network of communications
devices. Smaller companies can also compete, but only in small markets or by provide specialty
services. In addition, companies spend millions of dollars on developing brand name recognition, and
promoting and marketing their products. Companies also want to spread their companies out through
franchises, because more offices mean more visibility in drawing consumers in to buying their
products and services.

Industry Profitability: The cell phone industry will remain a competitive market and will increase
continuously with a total of 1,200 wireless companies with total annual revenue of $100 billion. The
profitability of individual companies is driven mainly by their ability to develop new products,
providing better service, making their products affordable for consumers. Profitability of companies is
achieved also by taking advantage of marketing their products, have access to capital, and by inquiring
the expertise to improve the cell phones. The profitability of the cell phone industry is dependent on
the volume of consumer they can attract. The profitability of companies has increased drastically
since 2002 and will continue to increase as new cell phones are improved. Since 2004, the financial
markets of cell phone companies seem to increase fast because of the new technologies and services
that companies are offering consumers, and at the same time they compete for customers. Although
there are complaints and dissatisfaction from consumers, cell phone and the service along with it has
become a necessity which companies use as an advantage by charging consumers higher price. As in
any industry, there are declining and inclining profits. The cell phone has experienced a slight decline;
worldwide shipments of cell phones rose 26 percent in the first quarter of 2006 compared with the
same period last year. Currently today, the global market continues to thrive on consumers replacing
older phones with new purchases, a total of 226.7 million mobile phones. For individual company
profitability, Nokia is listed at the top, retaining a third of the global market share and enjoying a 39.6
percent growth. Motorola also had a high increase of 60.6 gains and is controlling 20.3 percent of the
market. Samsung has shipped over 29 million phones and is in third place with a decrease in sale to
only 18.4 percent growth. LG came fourth for market share with 6.9 percent and experienced an
operating loss for the quarter due to marketing expenses and fewer sales. The cell phone industry looks
strong and competitive between the companies and service they provide. Even more as new options
are in place, such as, allowing consumers to keep their numbers while switching carriers. Five Forces
of Competition

When compared to the general environment, the industry environment often has a direct effect on the
firm’s strategic actions. Our textbook discusses Porter’s five forces of competition in most industries.
However, in analyzing the Cell Phone Industry, not only do we cover the five forces model which
includes (1) the threat of new entry, (2) the power of suppliers, (3) the power of buyers, (4)
product/service substitutes, and (5) the intensity of rivalry among competitors

28
1. Threat of New Entrants

The cell phone industry is highly concentrated. Following the recent Sprint/Nextel merger, only four
firms actually control 80% of the current market. Since start-up
start up costs for a cell phone service provider
are extremely high, the threat of new entrants is low. A great sum of money must be invested to attain
the economies of scale, and it is difficult to enter the market with existing firms already operating on
cost and differentiation strategies.

2. Bargaining Power of Suppliers

Cell phone operators provide such high volume orders that suppliers have been cautio
cautious not to temper
with the relationship and ended up being in a low bargaining position. Already dragging with the
specter of gadget gridlock, carriers continuously seek for ever more features in the handsets and
threaten to increase the pressure on suppliers
suppli with the “reverse e-auction.”T-Mobile
Mobile is the first carrier,
who has staged an online bidding war, asking six vendors to bid against each other online for a
contract to build cell phones for one handset segment.

3. Bargaining Power of Buyers

In August 2005, the Florida PIRG Education Fund Report revealed how cell phone early termination
fees hurt customers. Their research showed that half of cell phone users would switch carriers if they
did not have to pay contract termination penalties. Feeling locked
locked in a cell, most consumers resent the
$150 - $240 penalties per phone, should they consider changing to another carrier for lower rate or
better service. The report also indicated that $4.6 billion have been paid in the last 3 years due to
penalties – that’s
at’s $2.5 billion in actual penalties and $2.1 billion in lost services from consumers who
either cannot afford the penalty or didn’t think it’s worth paying. This clearly suggests that
buyers/consumers have little bargaining power in this end.

4. Threat of Substitute Products/Services

A lot of active research and development into mobile phone technology has been underway:

i. Operators are upgrading their networks to advanced wireless and other third
third-generation (3G)

29
 services, many new entertainment and communications services are becoming available,
including new broadcast-type operations on spectrum formerly occupied by Television
channels 52-69. With downlink speeds close to that of wire line DSL, mobile service can now
provide music download and streaming video sharing. Services such as MobiTV or Juice
Caster are some applications that leverage these new networks.
ii. Development in miniaturized hard disks and flash drives to solve the storage space issue are
already surfacing, therefore opening the possibility for phones to become portable music
libraries and players similar to an iPod.
iii. Some cell phones already have GPS positioning. In the future, this may be coupled with
accelerometer positioning, to cover underground or indoor positioning. This would lead to
maps and help finding group members nearby, or identifying strangers. When coupled with
camera phone, the GPS technology may also allow users to take a picture or snap the exact
location and angle at which the picture was taken.

5. Intensity of Rivalry among Competitors

The landscape of mobile wireless industry has changed much in recent years Sprint and Nextel
Communications Inc. together created a leading carrier augmented by a global IP network that offers
consumer, business, and government customers’ broadband wireless and integrated communications
services A little earlier, AT&T Inc., formed by SBC Communications’ purchase of AT&T Corp.
created the then largest wireless phone company. Cingular Wireless won that distinction in 2005 after
its takeover of AT&T Wireless for $41 billion. Mergers lead to concentrated pricing power in the
hands of fewer companies. When one phone company owns another phone company, the total savings
to the company through the “synergies” are substantial, but the potential for competition is
undermined

Among the five major cell phone makers,

i. Nokia has the most market capital and net income, which makes Nokia the largest cell phone
maker in the world.
ii. Motorola comes into second in net income.
iii. Nokia has the best Price/Earning ratio, which means Nokia’s stock has the relative high
iv. earning per share.
v. Ericsson has the highest gross margin. Gross margin (gross profit / sales revenue) is a measure
of a company's efficiency in turning raw materials into income. In other words, Ericsson is
most efficiency in turning raw materials into income.

Cellular Service

Overview

1. There are six major private service operators in each area, and an incumbent state operator. Almost
80% of the cellular subscriber base belongs to the pre-paid segment.

2. The DoT has allowed cellular companies to buy rivals within the same operating circle provided their
combined market share did not exceed 67 per cent. Previously, they were only allowed to buy
companies outside their circle.

Growth Drivers

Opening up of international and domestic long distance telephony services are growth drivers in the

30
 industry. Cellular operators now get substantial revenue from these services, and compensate them for
reduction in tariffs on air time, which along with rental was the main source of revenue. The reduction
in tariffs for airtime, national long distance, international long distance, and handset prices has driven
demand.

The Key players in the Telecom Market in India

Cellular Service provider:

1. BSNL

2. Airtel

3. Vodafone

4. Reliance

5. Tata indicom

6. Idea

The total number of telephone subscribers has reached 241.02 million at the end of August 2007 as
compared to 232.87 million in July 2007. The overall tele-density has increased to 21.20% in August
2007 as compared to 20.52% in July 2007.In the wireless segment, 8.31 million subscribers have been
added in August 2007 while 8.06 million subscribers were added in July 2007. The total wireless
subscribers (GSM, CDMA & WLL(F)) base reaches 201.29 million at the end of August 2007.The
wireline segment subscriber base stood at 39.73 million with a decrease of 0.16 million at the end of
August 2007. Circle wise wire line subscriber base of service providers is given at following chart ..

Market Share of the telecom Company in India

31
32
CHAPTER THREE

RESEARCH DESIGN
AND METHODOLOGY

33
Definition of Research

The word research is derived from the Latin word meaning to know. It is a systematic and a replicable
process, which identifies and defines problems, within specified boundaries. It employs well-designed
method to collect the data and analyses the results. It disseminates the findings to contribute to
generalize able knowledge. The main characteristics of research presented below are:

Systematic problem solving which identifies variables and tests relationships between them,
Collecting, organizing and evaluating data.
Logical, so procedures can be duplicated or understood by others
Empirical, so decisions are based on data collected
Reductive, so it investigates a small sample which can be generalized to a larger
population
Replicable, so others may test the findings by repeating it.
Discovering new facts or verify and test old facts.
Developing new scientific tools, concepts and theories, this would facilitate to take
decision.

For the proper analysis of data simple statistical techniques such as percentage were use. It helps in
making more generalization from the data available. The data which will be collected from a sample of
population was assumed to be representing entire population was interest. Demographic factors like
age, income and educational background was used for the classification purpose.

RESEARCH METHODOLOGY

The study conducted will be a conclusive descriptive statistical study; I will come to the decision
which is precise and rational. The study is conclusive because after doing the study the researcher will
comes to a conclusion regarding the position of the brand and factors responsible for purchase of
handset as well as service in the minds of respondents of different groups. The study is statistical
because throughout the study all the similar samples are selected and group together. All the similar
responses are taken together as one and their percentages are calculated by using various statistical
tools to reach a final conclusion. Thus, this, conclusive descriptive statistical study is the best study for
this purpose as it provides the necessary information which is utilize to arrive at a concrete decision.
The study primarily uses quantitative tools with qualitative information. For quantitative results, the
research design involves descriptive research using survey method. The sample size used for the
project is 190 customers. In this project snow ball sampling is done.

In this study five handset manufacturers and six mobile service providers are selected which are given

34
 below:-

Handset Manufacturers Mobile Service Providers

Nokia Airtel

Motorola Vodafone

Sony Ericson BSNL

Samsung Reliance Communications

LG TATA Indicom
-

IDEA

RESEARCH DESIGN

This MRP project aims to study the customer’s decision making style on mobile handset makers and
mobile service providers. The project primarily uses quantitative tools with help from qualitative
information. For quantitative results, the research design involves descriptive research using survey
method. Thus a structured questionnaire has been used to elicit the specific information. The sample
size used for the project is 190 customers.

DATA COLLECTION
The data, which is collected for the purpose of study, is divided into 2 bases:

 Primary Source: The primary data comprises information survey of “Factor Affecting the choice of
handset brand and service provider brand by customers”.

 Secondary Source: The secondary data was collected from internet and references from Library.

To know the response I will use the questionnaire method in sample survey. If one wishes to find what
people think or know, the logical procedure is to ask them. This has lead marketing researchers to use
the questionnaire technique for collecting data more than any other method. Since online method of
surveys are much more convenient in nature for the respondent as they are filling the questionnaire at
their free time hence it can be considered as more reliable therefore I preferred this method of
conducting survey. In this method questionnaire is prepared and the link is send and posted via
emails, blogs etc. to the respondents and they were asked to answer the questions in the questionnaire.

35
The questionnaire, were non-disguised because the questionnaire were constructed so that the
objective is clear to the respondent. The respondents were aware of the objective. They knew why they
asked to fill the questionnaire. After collecting the response the data will be uploaded to the computer
for further processing.

DATA PREPARATION

Questionnaire Scrutiny-

For data preparation, the questionnaire’s link was open for a week and total responses received were
199 then the questionnaire is scrutinized for completeness and interviewing quality. As mentioned
earlier, the checks were initialized while fieldwork was still underway. The questionnaires were
reviewed to identify illegible, incomplete, inconsistent or ambiguous responses. They were also
checked for consistency. The sampling requirements were also considered. Unsatisfactory responses
were assigned missing values or even questionnaires discarded depending on the degree of inadequacy
of the responses. In this survey nine cases were discarded due to contradictory answers.

Scale transformation –

In this study, ordinal scale has been used in which numbers have been assigned to objects to indicate
the relative extent to which objects possess some characteristics. In simple language, a five point
Likert scale has been used to measure the attitude of customers towards the company and its products.

Statistical techniques-

The data collected through the survey has been analyzed using Multivariate Techniques. Multivariate
techniques are suitable here for analyzing the data because there are two or more measurements of
each element and the variables are analyzed simultaneously.

36
ANALYSIS OF DATA

37
Multiple Imputation

Missing Values

a,b
Variable Summary

38
 Missing

N Percent Valid N Mean Std. Deviation

In_last_five_purchases_you_ 63 33.2% 127 1.33 1.049

reffered_Others

Which_Mobile_network_servi 51 26.8% 139 3.08 2.401

ce_provider_you_are_using

In_last_five_purchases_you_ 45 23.7% 145 1.38 .952

reffered_LG

In_last_five_purchases_you_ 44 23.2% 146 1.68 1.033

reffered_Samsung

In_last_five_purchases_you_ 39 20.5% 151 1.71 1.101

reffered_Motorola

In_last_five_purchases_you_ 32 16.8% 158 2.20 1.434

reffered_SonyErricson

Which_Mobile_handset_you_ 31 16.3% 159 1.85 1.553

are_using_currently

a. Maximum number of variables shown: 25

b. Minimum percentage of missing values for variable to be included: 10.0%

39
40
Regression

Variables Entered/Removed

Variables Variables
Model Entered Removed Method

41
1 How_important_ . Enter
are_price_of_val
ue_added_servic
e,
How_important_
are_relatives_in_
same_network,
How_important_
are_good_networ
k_coverage,
How_important_
are_customer_ca
re_service,
How_important_
are_call_charges
,
How_important_
are_value_added
_servicesa

a. All requested variables entered.

b
Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

a
1 .261 .068 .025 2.091

a. Predictors: (Constant),
How_important_are_price_of_value_added_service,
How_important_are_relatives_in_same_network,
How_important_are_good_network_coverage,
How_important_are_customer_care_service,
How_important_are_call_charges,
How_important_are_value_added_services

42
 Model Summaryb

Adjusted R Std. Error of the

Model R R Square Square Estimate

a
1 .261 .068 .025 2.091

a. Predictors: (Constant),
How_important_are_price_of_value_added_service,
How_important_are_relatives_in_same_network,
How_important_are_good_network_coverage,
How_important_are_customer_care_service,
How_important_are_call_charges,
How_important_are_value_added_services

b. Dependent Variable:
Which_Mobile_network_service_provider_you_are_using

b
Model Summary

Change Statistics

R Square
Model Change F Change df1 df2 Sig. F Change

1 .068 1.577 6 129 .159

b. Dependent Variable: Which_Mobile_network_service_provider_you_are_using

b
ANOVA

Model Sum of Squares df Mean Square F Sig.

a
1 Regression 41.379 6 6.896 1.577 .159

43
 Residual 563.967 129 4.372

Total 605.346 135

a. Predictors: (Constant), How_important_are_price_of_value_added_service,

How_important_are_relatives_in_same_network, How_important_are_good_network_coverage,
How_important_are_customer_care_service, How_important_are_call_charges,
How_important_are_value_added_services

b. Dependent Variable: Which_Mobile_network_service_provider_you_are_using

a
Coefficients

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) .736 1.091 .675 .501

How_important_are_good_ne .759 1.031 .068 .736 .463

twork_coverage

How_important_are_relatives .167 .161 .090 1.037 .302

_in_same_network

How_important_are_call_cha .278 .348 .079 .799 .426

rges

How_important_are_custome .241 .267 .086 .905 .367

r_care_service

How_important_are_value_a .010 .274 .004 .036 .971

dded_services

How_important_are_price_of .247 .302 .098 .816 .416

_value_added_service

a. Dependent Variable: Which_Mobile_network_service_provider_you_are_using

44
 Coefficientsa

Correlations

Model Zero-order Partial Part

1 How_important_are_good_ne .138 .065 .063

twork_coverage

How_important_are_relatives .126 .091 .088

_in_same_network

How_important_are_call_cha .182 .070 .068

rges

How_important_are_custome .173 .079 .077

r_care_service

How_important_are_value_a .130 .003 .003

dded_services

How_important_are_price_of .182 .072 .069

_value_added_service

a. Dependent Variable:
Which_Mobile_network_service_provider_you_are_using

a
Residuals Statistics

Minimum Maximum Mean Std. Deviation N

Predicted Value 2.44 6.12 3.11 .554 136

Residual -3.431 4.562 .000 2.044 136

Std. Predicted Value -1.214 5.429 .000 1.000 136

Std. Residual -1.641 2.182 .000 .978 136

a. Dependent Variable: Which_Mobile_network_service_provider_you_are_using

45
Charts

46
47
From the above done regression analysis I found that the decision to purchase the service does not
depend very significantly on any one factor. But then also roughly we can say that the decision is
affected by network coverage, relatives on same network and up to some extent on customer care
service provided by the network service provider.

48
Regression

Variables Entered/Removed

Variables
Model Variables ntered Removed Method

49
1 What_is_the_deg . Enter
ree_of_Importan
ce_of_ref_recom
mendation,
What_is_the_deg
ree_of_Importan
ce_of_Built_in_c
amera,
What_is_the_deg
ree_of_Importan
ce_of_small_size
,
What_is_the_deg
ree_of_Importan
ce_of_usability,
What_is_the_deg
ree_of_Importan
ce_of_WAP_serv
ices,
What_is_the_deg
ree_of_Importan
ce_of_colour_scr
een,
What_is_the_deg
ree_of_Importan
ce_of_known_br
and,
What_is_the_deg
ree_of_Importan
ce_of_mode_at_r
edused_price,
What_is_the_deg
ree_of_Importan
ce_of_multimedi
a,
What_is_the_deg
ree_of_Importan
ce_of_appearenc
e_and_style,
What_is_the_deg
ree_of_Importan
ce_of_new_prod
uct,
What_is_the_deg
ree_of_Importan
50
ce_of_advance_
message_capabil
ity,
a. All requested variables entered.

b
Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .309a .095 -.016 1.414

a. Predictors: (Constant),
What_is_the_degree_of_Importance_of_ref_recommendation,
What_is_the_degree_of_Importance_of_Built_in_camera,
What_is_the_degree_of_Importance_of_small_size,
What_is_the_degree_of_Importance_of_usability,
What_is_the_degree_of_Importance_of_WAP_services,
What_is_the_degree_of_Importance_of_colour_screen,
What_is_the_degree_of_Importance_of_known_brand,
What_is_the_degree_of_Importance_of_mode_at_redused_price,
What_is_the_degree_of_Importance_of_multimedia,
What_is_the_degree_of_Importance_of_appearence_and_style,
What_is_the_degree_of_Importance_of_new_product,
What_is_the_degree_of_Importance_of_advance_message_capability,
What_is_the_degree_of_Importance_of_bluetooth,
What_is_the_degree_of_Importance_of_larger_memory,
What_is_the_degree_of_Importance_of_reliability,
What_is_the_degree_of_Importance_of_JAVA_enabled

b. Dependent Variable:
Which_Mobile_handset_you_are_using_currently

b
Model Summary

Change Statistics

R Square
Model Change F Change df1 df2 Sig. F Change

51
1 .095 .856 16 130 .621

b. Dependent Variable: Which_Mobile_handset_you_are_using_currently

b
ANOVA

Model Sum of Squares df Mean Square F Sig.

a
1 Regression 27.387 16 1.712 .856 .621

Residual 260.083 130 2.001

Total 287.469 146

a. Predictors: (Constant), What_is_the_degree_of_Importance_of_ref_recommendation,

What_is_the_degree_of_Importance_of_Built_in_camera,
What_is_the_degree_of_Importance_of_small_size,
What_is_the_degree_of_Importance_of_usability,
What_is_the_degree_of_Importance_of_WAP_services,
What_is_the_degree_of_Importance_of_colour_screen,
What_is_the_degree_of_Importance_of_known_brand,
What_is_the_degree_of_Importance_of_mode_at_redused_price,
What_is_the_degree_of_Importance_of_multimedia,
What_is_the_degree_of_Importance_of_appearence_and_style,
What_is_the_degree_of_Importance_of_new_product,
What_is_the_degree_of_Importance_of_advance_message_capability,
What_is_the_degree_of_Importance_of_bluetooth,
What_is_the_degree_of_Importance_of_larger_memory,
What_is_the_degree_of_Importance_of_reliability,
What_is_the_degree_of_Importance_of_JAVA_enabled

b. Dependent Variable: Which_Mobile_handset_you_are_using_currently

a
Coefficients

52
 Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 3.064 .641 4.777 .000

What_is_the_degree_of_Imp .092 .290 .032 .319 .751

ortance_of_colour_screen

What_is_the_degree_of_Imp -.207 .164 -.137 -1.266 .208

ortance_of_multimedia

What_is_the_degree_of_Imp -.089 .159 -.056 -.558 .578

ortance_of_Built_in_camera

What_is_the_degree_of_Imp -.281 .132 -.191 -2.119 .036

ortance_of_small_size

What_is_the_degree_of_Imp -.011 .177 -.007 -.063 .950

ortance_of_advance_messag
e_capability

What_is_the_degree_of_Imp -.059 .217 -.031 -.270 .787

ortance_of_larger_memory

What_is_the_degree_of_Imp -.126 .196 -.091 -.642 .522

ortance_of_JAVA_enabled

What_is_the_degree_of_Imp .160 .216 .115 .740 .461

ortance_of_WAP_services

What_is_the_degree_of_Imp .073 .216 .036 .339 .735

ortance_of_bluetooth

What_is_the_degree_of_Imp .120 .150 .083 .800 .425

ortance_of_new_product

What_is_the_degree_of_Imp -.030 .164 -.019 -.185 .854

ortance_of_mode_at_reduse
d_price

53
 What_is_the_degree_of_Imp .136 .226 .064 .602 .548
ortance_of_appearence_and
_style

What_is_the_degree_of_Imp .114 .323 .040 .352 .725

ortance_of_reliability

What_is_the_degree_of_Imp -.291 .282 -.118 -1.031 .304

ortance_of_usability

What_is_the_degree_of_Imp .193 .180 .107 1.072 .286

ortance_of_known_brand

What_is_the_degree_of_Imp -.263 .146 -.180 -1.795 .075

ortance_of_ref_recommendat
ion

a. Dependent Variable: Which_Mobile_handset_you_are_using_currently

a
Coefficients

Correlations

Model Zero-order Partial Part

1 What_is_the_degree_of_Imp .018 .028 .027

ortance_of_colour_screen

What_is_the_degree_of_Imp -.107 -.110 -.106

ortance_of_multimedia

What_is_the_degree_of_Imp -.030 -.049 -.047

ortance_of_Built_in_camera

What_is_the_degree_of_Imp -.195 -.183 -.177

ortance_of_small_size

What_is_the_degree_of_Imp -.029 -.006 -.005

ortance_of_advance_messag
e_capability

54
 What_is_the_degree_of_Imp .001 -.024 -.023
ortance_of_larger_memory

What_is_the_degree_of_Imp -.040 -.056 -.054

ortance_of_JAVA_enabled

What_is_the_degree_of_Imp .005 .065 .062

ortance_of_WAP_services

What_is_the_degree_of_Imp .013 .030 .028

ortance_of_bluetooth

What_is_the_degree_of_Imp .005 .070 .067

ortance_of_new_product

What_is_the_degree_of_Imp -.085 -.016 -.015

ortance_of_mode_at_reduse
d_price

What_is_the_degree_of_Imp .027 .053 .050

ortance_of_appearence_and
_style

What_is_the_degree_of_Imp -.018 .031 .029

ortance_of_reliability

What_is_the_degree_of_Imp -.067 -.090 -.086

ortance_of_usability

What_is_the_degree_of_Imp .014 .094 .089

ortance_of_known_brand

What_is_the_degree_of_Imp -.133 -.155 -.150

ortance_of_ref_recommendat
ion

a. Dependent Variable: Which_Mobile_handset_you_are_using_currently

a
Residuals Statistics

55
 Minimum Maximum Mean Std. Deviation N

Predicted Value .75 2.87 1.90 .433 147

Residual -1.872 3.895 .000 1.335 147

Std. Predicted Value -2.655 2.248 .000 1.000 147

Std. Residual -1.323 2.753 .000 .944 147

a. Dependent Variable: Which_Mobile_handset_you_are_using_currently

Charts

56
57
58
59
60
61
62
63
From the above done regression analysis I found that the decision to purchase the handset also does
not depend very significantly on any one factor. But then also roughly we can say that the decision is
affected by size of the handset, reference group recommendation, multimedia capability, brand and
finally usability.

Due to the output of above two analysis when no such rule is derived I move ahead in my analysis
of profiling the customers by using factor analysis.

Factor Analysis

Descriptive Statistics

Mean Std. Deviation Analysis N

What_is_the_degree_of_Imp 1.31 .489 171

ortance_of_colour_screen

What_is_the_degree_of_Imp 1.78 .917 171

ortance_of_multimedia

What_is_the_degree_of_Imp 1.62 .882 171

ortance_of_Built_in_camera

64
What_is_the_degree_of_Imp 2.32 .980 171
ortance_of_small_size

What_is_the_degree_of_Imp 2.04 .926 171

ortance_of_advance_messag
e_capability

What_is_the_degree_of_Imp 1.57 .736 171

ortance_of_larger_memory

What_is_the_degree_of_Imp 2.06 1.010 171

ortance_of_JAVA_enabled

What_is_the_degree_of_Imp 2.15 1.016 171

ortance_of_WAP_services

What_is_the_degree_of_Imp 1.37 .641 171

ortance_of_bluetooth

What_is_the_degree_of_Imp 2.23 .960 171

ortance_of_new_product

What_is_the_degree_of_Imp 2.06 .875 171

ortance_of_mode_at_reduse
d_price

What_is_the_degree_of_Imp 1.64 .683 171

ortance_of_appearence_and
_style

What_is_the_degree_of_Imp 1.27 .498 171

ortance_of_reliability

What_is_the_degree_of_Imp 1.38 .555 171

ortance_of_usability

What_is_the_degree_of_Imp 1.56 .826 171

ortance_of_known_brand

What_is_the_degree_of_Imp 2.47 .996 171

ortance_of_ref_recommendat
ion

What_was_the_degree_of_I 1.39 .653 171

mportance_of_Feature

65
What_was_the_degree_of_I 1.46 .688 171
mportance_of_Batterybackup

What_was_the_degree_of_I 1.78 .724 171

mportance_of_Looks

What_was_the_degree_of_I 1.71 .866 171

mportance_of_Price

What_was_the_degree_of_I 1.49 .762 171

mportance_of_Brand_Reliabil
ity

How_important_are_good_ne 1.04 .199 171

twork_coverage

How_important_are_relatives 2.37 1.153 171

_in_same_network

How_important_are_call_cha 1.36 .580 171

rges

How_important_are_custome 1.63 .826 171

r_care_service

How_important_are_value_a 1.85 .927 171

dded_services

How_important_are_price_of 1.80 1.005 171

_value_added_service

Correlation Matrix

66
 What What
_is_th _is_th What
What What e_deg What What What What e_deg _is_th
_is_th What _is_th What ree_o _is_th _is_th _is_th What _is_th ree_o e_deg What What
e_deg _is_th e_deg _is_th f_Imp e_deg e_deg e_deg _is_th e_deg f_Imp ree_o _is_th _is_th
ree_o e_deg ree_o e_deg ortanc ree_o ree_o ree_o e_deg ree_o ortanc f_Imp e_deg e_deg
f_Imp ree_o f_Imp ree_o e_of_ f_Imp f_Imp f_Imp ree_o f_Imp e_of_ ortanc ree_o ree_o
ortanc f_Imp ortanc f_Imp advan ortanc ortanc ortanc f_Imp ortanc mode e_of_ f_Imp f_Imp
e_of_ ortanc e_of_ ortanc ce_m e_of_l e_of_ e_of_ ortanc e_of_ _at_r appea ortanc ortanc
colour e_of_ Built_i e_of_ essag arger JAVA WAP e_of_ new_ eduse rence e_of_ e_of_
_scre multi n_ca small e_cap _mem _enab _servi blueto produ d_pric _and_ reliabi usabil
en media mera _size ability ory led ces oth ct e style lity ity

Corre What_is_t 1.000 .295 .261 .110 .106 .097 .070 .169 .328 .221 .049 .404 .180 .062
lation he_degree
_of_Import
ance_of_c
olour_scre
en

What_is_t .295 1.000 .261 .045 .037 .017 .427 .451 .227 .071 -.158 .111 .131 .059
he_degree
_of_Import
ance_of_
multimedia

What_is_t .261 .261 1.000 .101 .139 .153 .223 .095 .416 .196 .009 .320 .186 .069
he_degree
_of_Import
ance_of_B
uilt_in_ca
mera

What_is_t .110 .045 .101 1.000 .169 .088 .088 .082 .138 .245 .243 .164 .035 .077
he_degree
_of_Import
ance_of_s
mall_size

67
What_is_t .106 .037 .139 .169 1.000 .532 .388 .389 .246 .189 .142 .104 .324 .329
he_degree
_of_Import
ance_of_a
dvance_m
essage_ca
pability

What_is_t .097 .017 .153 .088 .532 1.000 .406 .424 .328 .086 -.057 .159 .295 .348
he_degree
_of_Import
ance_of_l
arger_me
mory

What_is_t .070 .427 .223 .088 .388 .406 1.000 .743 .230 .198 -.104 .218 .143 .107
he_degree
_of_Import
ance_of_J
AVA_enab
led

What_is_t .169 .451 .095 .082 .389 .424 .743 1.000 .305 .170 -.116 .169 .071 .099
he_degree
_of_Import
ance_of_
WAP_serv
ices

What_is_t .328 .227 .416 .138 .246 .328 .230 .305 1.000 .232 .031 .343 .123 .117
he_degree
_of_Import
ance_of_b
luetooth

What_is_t .221 .071 .196 .245 .189 .086 .198 .170 .232 1.000 .290 .388 .123 .152
he_degree
_of_Import
ance_of_n
ew_produ
ct

68
What_is_t .049 -.158 .009 .243 .142 -.057 -.104 -.116 .031 .290 1.000 .255 .067 .180
he_degree
_of_Import
ance_of_
mode_at_r
edused_pr
ice

What_is_t .404 .111 .320 .164 .104 .159 .218 .169 .343 .388 .255 1.000 .290 .283
he_degree
_of_Import
ance_of_a
ppearence
_and_style

What_is_t .180 .131 .186 .035 .324 .295 .143 .071 .123 .123 .067 .290 1.000 .600
he_degree
_of_Import
ance_of_r
eliability

What_is_t .062 .059 .069 .077 .329 .348 .107 .099 .117 .152 .180 .283 .600 1.000
he_degree
_of_Import
ance_of_u
sability

What_is_t .004 .014 .157 .095 .082 .160 .073 -.021 .007 .241 .064 .253 .395 .379
he_degree
_of_Import
ance_of_k
nown_bra
nd

What_is_t .047 .048 .045 .090 .078 -.120 .078 .018 .001 .339 .349 .224 .044 .077
he_degree
_of_Import
ance_of_r
ef_recom
mendation

69
What_was .102 .258 .144 -.094 .016 .080 .135 .154 .150 .015 -.116 .007 -.057 -.083
_the_degr
ee_of_Imp
ortance_of
_Feature

What_was -.056 .008 -.032 .148 .252 .137 .071 .114 -.010 .060 .058 -.127 .164 .221
_the_degr
ee_of_Imp
ortance_of
_Batteryba
ckup

What_was .224 .124 .119 .049 -.068 -.055 .098 .123 .110 .277 .096 .522 -.030 -.014
_the_degr
ee_of_Imp
ortance_of
_Looks

What_was .007 -.088 -.062 .181 .020 -.006 -.135 -.172 -.102 .040 .328 .012 .119 .061
_the_degr
ee_of_Imp
ortance_of
_Price

What_was -.090 .109 -.030 -.029 -.083 -.043 -.029 .052 -.007 .013 -.171 -.038 .158 .118
_the_degr
ee_of_Imp
ortance_of
_Brand_R
eliability

How_impo .050 -.080 -.078 .023 .024 .041 -.071 -.088 .019 .011 .086 .108 .183 .232
rtant_are_
good_net
work_cove
rage

How_impo .043 .010 .013 .049 .092 .060 .006 .109 -.005 .043 .168 .029 -.037 .015
rtant_are_
relatives_i
n_same_n
etwork

70
 How_impo .085 .002 .037 .200 .130 .198 .135 .111 .182 .082 .198 .338 .209 .307
rtant_are_
call_charg
es

How_impo .085 .032 .126 .026 .140 .090 .125 .080 .051 .170 .147 .189 .237 .235
rtant_are_
customer_
care_servi
ce

How_impo .118 .093 .015 .067 .136 .050 .060 .080 .144 .258 .135 .267 .180 .262
rtant_are_
value_add
ed_service
s

How_impo .142 .098 -.048 .175 .027 .055 -.023 .029 .026 .147 .142 .193 .278 .309
rtant_are_
price_of_v
alue_adde
d_service

Sig. What_is_t .000 .000 .076 .084 .103 .180 .014 .000 .002 .261 .000 .009 .210
(1- he_degree
tailed _of_Import
) ance_of_c
olour_scre
en

What_is_t .000 .000 .279 .317 .411 .000 .000 .001 .177 .019 .074 .044 .223
he_degree
_of_Import
ance_of_
multimedia

What_is_t .000 .000 .093 .035 .023 .002 .108 .000 .005 .454 .000 .007 .186
he_degree
_of_Import
ance_of_B
uilt_in_ca
mera

71
What_is_t .076 .279 .093 .014 .126 .127 .142 .036 .001 .001 .016 .326 .159
he_degree
_of_Import
ance_of_s
mall_size

What_is_t .084 .317 .035 .014 .000 .000 .000 .001 .007 .032 .089 .000 .000
he_degree
_of_Import
ance_of_a
dvance_m
essage_ca
pability

What_is_t .103 .411 .023 .126 .000 .000 .000 .000 .132 .229 .019 .000 .000
he_degree
_of_Import
ance_of_l
arger_me
mory

What_is_t .180 .000 .002 .127 .000 .000 .000 .001 .005 .088 .002 .031 .082
he_degree
_of_Import
ance_of_J
AVA_enab
led

What_is_t .014 .000 .108 .142 .000 .000 .000 .000 .013 .065 .014 .177 .098
he_degree
_of_Import
ance_of_
WAP_serv
ices

What_is_t .000 .001 .000 .036 .001 .000 .001 .000 .001 .344 .000 .054 .064
he_degree
_of_Import
ance_of_b
luetooth

72
What_is_t .002 .177 .005 .001 .007 .132 .005 .013 .001 .000 .000 .054 .023
he_degree
_of_Import
ance_of_n
ew_produ
ct

What_is_t .261 .019 .454 .001 .032 .229 .088 .065 .344 .000 .000 .191 .009
he_degree
_of_Import
ance_of_
mode_at_r
edused_pr
ice

What_is_t .000 .074 .000 .016 .089 .019 .002 .014 .000 .000 .000 .000 .000
he_degree
_of_Import
ance_of_a
ppearence
_and_style

What_is_t .009 .044 .007 .326 .000 .000 .031 .177 .054 .054 .191 .000 .000
he_degree
_of_Import
ance_of_r
eliability

What_is_t .210 .223 .186 .159 .000 .000 .082 .098 .064 .023 .009 .000 .000
he_degree
_of_Import
ance_of_u
sability

What_is_t .481 .429 .020 .108 .144 .018 .171 .391 .464 .001 .204 .000 .000 .000
he_degree
_of_Import
ance_of_k
nown_bra
nd

73
What_is_t .270 .265 .277 .121 .157 .059 .157 .406 .492 .000 .000 .002 .282 .159
he_degree
_of_Import
ance_of_r
ef_recom
mendation

What_was .092 .000 .030 .111 .416 .148 .039 .022 .025 .425 .066 .463 .230 .141
_the_degr
ee_of_Imp
ortance_of
_Feature

What_was .235 .458 .337 .027 .000 .037 .177 .068 .449 .217 .224 .048 .016 .002
_the_degr
ee_of_Imp
ortance_of
_Batteryba
ckup

What_was .002 .053 .060 .262 .190 .236 .101 .054 .077 .000 .105 .000 .349 .429
_the_degr
ee_of_Imp
ortance_of
_Looks

What_was .464 .127 .211 .009 .397 .470 .039 .012 .093 .300 .000 .440 .060 .213
_the_degr
ee_of_Imp
ortance_of
_Price

What_was .120 .078 .348 .353 .141 .289 .351 .249 .464 .434 .013 .309 .019 .063
_the_degr
ee_of_Imp
ortance_of
_Brand_R
eliability

74
How_impo .257 .148 .154 .385 .377 .295 .179 .126 .400 .442 .131 .079 .008 .001
rtant_are_
good_net
work_cove
rage

How_impo .286 .447 .431 .262 .115 .217 .467 .078 .476 .290 .014 .355 .316 .421
rtant_are_
relatives_i
n_same_n
etwork

How_impo .135 .489 .317 .004 .045 .005 .039 .075 .008 .144 .005 .000 .003 .000
rtant_are_
call_charg
es

How_impo .134 .338 .050 .368 .034 .121 .052 .150 .254 .013 .027 .007 .001 .001
rtant_are_
customer_
care_servi
ce

How_impo .063 .114 .422 .192 .038 .260 .219 .149 .030 .000 .039 .000 .009 .000
rtant_are_
value_add
ed_service
s

How_impo .032 .100 .265 .011 .364 .239 .383 .351 .366 .027 .032 .006 .000 .000
rtant_are_
price_of_v
alue_adde
d_service

Correlation Matrix

75
 What_ What_ What_
What_ is_the What_ was_t What_ was_t How_i
is_the _degr was_t he_de was_t What_ he_de How_i How_i How_i mport
_degr ee_of he_de gree_ he_de was_t gree_ mport mport mport How_i ant_ar
ee_of _Impo gree_ of_Im gree_ he_de of_Im ant_ar ant_ar How_i ant_ar mport e_pric
_Impo rtance of_Im portan of_Im gree_ portan e_goo e_rela mport e_cust ant_ar e_of_
rtance _of_re portan ce_of portan of_Im ce_of d_net tives_i ant_ar omer_ e_valu value_
_of_k f_reco ce_of _Batte ce_of portan _Bran work_ n_sa e_call care_ e_add added
nown_ mmen _Feat ryback _Look ce_of d_Reli cover me_n _char servic ed_se _servi
brand dation ure up s _Price ability age etwork ges e rvices ce

Correl What_is_th .004 .047 .102 -.056 .224 .007 -.090 .050 .043 .085 .085 .118 .142
ation e_degree_
of_Importa
nce_of_col
our_screen

What_is_th .014 .048 .258 .008 .124 -.088 .109 -.080 .010 .002 .032 .093 .098
e_degree_
of_Importa
nce_of_mul
timedia

What_is_th .157 .045 .144 -.032 .119 -.062 -.030 -.078 .013 .037 .126 .015 -.048
e_degree_
of_Importa
nce_of_Bui
lt_in_camer
a

What_is_th .095 .090 -.094 .148 .049 .181 -.029 .023 .049 .200 .026 .067 .175
e_degree_
of_Importa
nce_of_sm
all_size

What_is_th .082 .078 .016 .252 -.068 .020 -.083 .024 .092 .130 .140 .136 .027
e_degree_
of_Importa
nce_of_adv
ance_mess
age_capabi
lity

76
What_is_th .160 -.120 .080 .137 -.055 -.006 -.043 .041 .060 .198 .090 .050 .055
e_degree_
of_Importa
nce_of_lar
ger_memor
y

What_is_th .073 .078 .135 .071 .098 -.135 -.029 -.071 .006 .135 .125 .060 -.023
e_degree_
of_Importa
nce_of_JA
VA_enable
d

What_is_th -.021 .018 .154 .114 .123 -.172 .052 -.088 .109 .111 .080 .080 .029
e_degree_
of_Importa
nce_of_WA
P_services

What_is_th .007 .001 .150 -.010 .110 -.102 -.007 .019 -.005 .182 .051 .144 .026
e_degree_
of_Importa
nce_of_blu
etooth

What_is_th .241 .339 .015 .060 .277 .040 .013 .011 .043 .082 .170 .258 .147
e_degree_
of_Importa
nce_of_ne
w_product

What_is_th .064 .349 -.116 .058 .096 .328 -.171 .086 .168 .198 .147 .135 .142
e_degree_
of_Importa
nce_of_mo
de_at_redu
sed_price

77
What_is_th .253 .224 .007 -.127 .522 .012 -.038 .108 .029 .338 .189 .267 .193
e_degree_
of_Importa
nce_of_ap
pearence_
and_style

What_is_th .395 .044 -.057 .164 -.030 .119 .158 .183 -.037 .209 .237 .180 .278
e_degree_
of_Importa
nce_of_reli
ability

What_is_th .379 .077 -.083 .221 -.014 .061 .118 .232 .015 .307 .235 .262 .309
e_degree_
of_Importa
nce_of_usa
bility

What_is_th 1.000 .311 .010 .064 .067 .107 .219 .074 .013 .169 .223 .127 .167
e_degree_
of_Importa
nce_of_kno
wn_brand

What_is_th .311 1.000 -.030 -.008 .127 .087 .044 .020 .132 .103 .160 .212 .033
e_degree_
of_Importa
nce_of_ref
_recomme
ndation

What_was .010 -.030 1.000 .182 .265 -.007 .283 -.077 .018 -.039 .051 .107 -.004
_the_degre
e_of_Impor
tance_of_F
eature

78
What_was .064 -.008 .182 1.000 .105 .127 .159 .078 .102 .032 .157 .165 .136
_the_degre
e_of_Impor
tance_of_B
atterybacku
p

What_was .067 .127 .265 .105 1.000 .096 .106 -.020 .034 .157 .139 .109 .076
_the_degre
e_of_Impor
tance_of_L
ooks

What_was .107 .087 -.007 .127 .096 1.000 .056 -.033 .040 .080 -.096 -.004 .059
_the_degre
e_of_Impor
tance_of_P
rice

What_was .219 .044 .283 .159 .106 .056 1.000 .062 -.074 .098 .215 .038 .054
_the_degre
e_of_Impor
tance_of_B
rand_Relia
bility

How_impor .074 .020 -.077 .078 -.020 -.033 .062 1.000 .087 .128 .166 .130 .131
tant_are_g
ood_netwo
rk_coverag
e

How_impor .013 .132 .018 .102 .034 .040 -.074 .087 1.000 .169 .123 .120 .117
tant_are_re
latives_in_
same_netw
ork

How_impor .169 .103 -.039 .032 .157 .080 .098 .128 .169 1.000 .243 .200 .348
tant_are_c
all_charges

79
 How_impor .223 .160 .051 .157 .139 -.096 .215 .166 .123 .243 1.000 .425 .332
tant_are_c
ustomer_c
are_service

How_impor .127 .212 .107 .165 .109 -.004 .038 .130 .120 .200 .425 1.000 .629
tant_are_v
alue_adde
d_services

How_impor .167 .033 -.004 .136 .076 .059 .054 .131 .117 .348 .332 .629 1.000
tant_are_pr
ice_of_valu
e_added_s
ervice

Sig. What_is_th .481 .270 .092 .235 .002 .464 .120 .257 .286 .135 .134 .063 .032
(1- e_degree_
tailed) of_Importa
nce_of_col
our_screen

What_is_th .429 .265 .000 .458 .053 .127 .078 .148 .447 .489 .338 .114 .100
e_degree_
of_Importa
nce_of_mul
timedia

What_is_th .020 .277 .030 .337 .060 .211 .348 .154 .431 .317 .050 .422 .265
e_degree_
of_Importa
nce_of_Bui
lt_in_camer
a

What_is_th .108 .121 .111 .027 .262 .009 .353 .385 .262 .004 .368 .192 .011
e_degree_
of_Importa
nce_of_sm
all_size

80
What_is_th .144 .157 .416 .000 .190 .397 .141 .377 .115 .045 .034 .038 .364
e_degree_
of_Importa
nce_of_adv
ance_mess
age_capabi
lity

What_is_th .018 .059 .148 .037 .236 .470 .289 .295 .217 .005 .121 .260 .239
e_degree_
of_Importa
nce_of_lar
ger_memor
y

What_is_th .171 .157 .039 .177 .101 .039 .351 .179 .467 .039 .052 .219 .383
e_degree_
of_Importa
nce_of_JA
VA_enable
d

What_is_th .391 .406 .022 .068 .054 .012 .249 .126 .078 .075 .150 .149 .351
e_degree_
of_Importa
nce_of_WA
P_services

What_is_th .464 .492 .025 .449 .077 .093 .464 .400 .476 .008 .254 .030 .366
e_degree_
of_Importa
nce_of_blu
etooth

What_is_th .001 .000 .425 .217 .000 .300 .434 .442 .290 .144 .013 .000 .027
e_degree_
of_Importa
nce_of_ne
w_product

81
What_is_th .204 .000 .066 .224 .105 .000 .013 .131 .014 .005 .027 .039 .032
e_degree_
of_Importa
nce_of_mo
de_at_redu
sed_price

What_is_th .000 .002 .463 .048 .000 .440 .309 .079 .355 .000 .007 .000 .006
e_degree_
of_Importa
nce_of_ap
pearence_
and_style

What_is_th .000 .282 .230 .016 .349 .060 .019 .008 .316 .003 .001 .009 .000
e_degree_
of_Importa
nce_of_reli
ability

What_is_th .000 .159 .141 .002 .429 .213 .063 .001 .421 .000 .001 .000 .000
e_degree_
of_Importa
nce_of_usa
bility

What_is_th .000 .447 .202 .193 .081 .002 .168 .434 .014 .002 .048 .014
e_degree_
of_Importa
nce_of_kno
wn_brand

What_is_th .000 .351 .458 .049 .130 .284 .396 .043 .090 .019 .003 .335
e_degree_
of_Importa
nce_of_ref
_recomme
ndation

82
What_was .447 .351 .009 .000 .462 .000 .158 .408 .304 .253 .081 .477
_the_degre
e_of_Impor
tance_of_F
eature

What_was .202 .458 .009 .086 .050 .019 .156 .091 .339 .020 .016 .038
_the_degre
e_of_Impor
tance_of_B
atterybacku
p

What_was .193 .049 .000 .086 .107 .083 .398 .329 .020 .035 .079 .161
_the_degre
e_of_Impor
tance_of_L
ooks

What_was .081 .130 .462 .050 .107 .234 .336 .304 .149 .105 .477 .221
_the_degre
e_of_Impor
tance_of_P
rice

What_was .002 .284 .000 .019 .083 .234 .209 .168 .100 .002 .309 .243
_the_degre
e_of_Impor
tance_of_B
rand_Relia
bility

How_impor .168 .396 .158 .156 .398 .336 .209 .130 .048 .015 .045 .044
tant_are_g
ood_netwo
rk_coverag
e

How_impor .434 .043 .408 .091 .329 .304 .168 .130 .014 .054 .060 .063
tant_are_re
latives_in_
same_netw
ork

83
 How_impor .014 .090 .304 .339 .020 .149 .100 .048 .014 .001 .004 .000
tant_are_c
all_charges

How_impor .002 .019 .253 .020 .035 .105 .002 .015 .054 .001 .000 .000
tant_are_c
ustomer_c
are_service

How_impor .048 .003 .081 .016 .079 .477 .309 .045 .060 .004 .000 .000
tant_are_v
alue_adde
d_services

How_impor .014 .335 .477 .038 .161 .221 .243 .044 .063 .000 .000 .000
tant_are_pr
ice_of_valu
e_added_s
ervice

Communalities

Initial

What_is_the_degree_of_Imp 1.000
ortance_of_colour_screen

What_is_the_degree_of_Imp 1.000
ortance_of_multimedia

What_is_the_degree_of_Imp 1.000
ortance_of_Built_in_camera

What_is_the_degree_of_Imp 1.000
ortance_of_small_size

What_is_the_degree_of_Imp 1.000
ortance_of_advance_messag
e_capability

84
What_is_the_degree_of_Imp 1.000
ortance_of_larger_memory

What_is_the_degree_of_Imp 1.000
ortance_of_JAVA_enabled

What_is_the_degree_of_Imp 1.000
ortance_of_WAP_services

What_is_the_degree_of_Imp 1.000
ortance_of_bluetooth

What_is_the_degree_of_Imp 1.000
ortance_of_new_product

What_is_the_degree_of_Imp 1.000
ortance_of_mode_at_reduse
d_price

What_is_the_degree_of_Imp 1.000
ortance_of_appearence_and
_style

What_is_the_degree_of_Imp 1.000
ortance_of_reliability

What_is_the_degree_of_Imp 1.000
ortance_of_usability

What_is_the_degree_of_Imp 1.000
ortance_of_known_brand

What_is_the_degree_of_Imp 1.000
ortance_of_ref_recommendat
ion

What_was_the_degree_of_I 1.000
mportance_of_Feature

What_was_the_degree_of_I 1.000
mportance_of_Batterybackup

What_was_the_degree_of_I 1.000
mportance_of_Looks

85
What_was_the_degree_of_I 1.000
mportance_of_Price

What_was_the_degree_of_I 1.000
mportance_of_Brand_Reliabil
ity

How_important_are_good_ne 1.000
twork_coverage

How_important_are_relatives 1.000
_in_same_network

How_important_are_call_cha 1.000
rges

How_important_are_custome 1.000
r_care_service

How_important_are_value_a 1.000
dded_services

How_important_are_price_of 1.000
_value_added_service

Extraction Method: Principal Component

Analysis.

Total Variance Explained

Initial Eigenvalues Rotation Sums of Squared Loadings

Compo
nent Total % of Variance Cumulative % Total % of Variance Cumulative %

1 4.521 16.743 16.743 2.610 9.668 9.668

2 2.659 9.848 26.591 2.495 9.239 18.907

3 2.048 7.585 34.175 2.210 8.184 27.090

4 1.779 6.588 40.764 2.028 7.513 34.603

86
5 1.507 5.580 46.343 1.841 6.817 41.421

6 1.442 5.341 51.685 1.645 6.091 47.512

7 1.257 4.654 56.339 1.552 5.749 53.260

8 1.071 3.968 60.307 1.524 5.645 58.905

9 1.052 3.898 64.205 1.431 5.300 64.205

10 .971 3.598 67.803

11 .934 3.460 71.263

12 .908 3.363 74.626

13 .768 2.845 77.470

14 .726 2.690 80.160

15 .662 2.453 82.613

16 .635 2.351 84.964

17 .581 2.150 87.114

18 .535 1.982 89.097

19 .470 1.741 90.837

20 .453 1.676 92.513

21 .367 1.358 93.871

22 .362 1.340 95.211

23 .339 1.254 96.466

24 .322 1.193 97.659

25 .261 .968 98.626

26 .193 .715 99.342

27 .178 .658 100.000

87
Extraction Method: Principal Component Analysis.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .677

Bartlett's Test of Sphericity Approx. Chi-Square 1346.435

df 351

Sig. .000

Rotated Component Matrixa

Component

88
 1 2 3 4 5 6 7 8 9

What_is_the_degree_of .028 -.027 .680 .193 -.029 -.026 .094 .175 -.097
_Importance_of_colour
_screen

What_is_the_degree_of .490 -.086 .271 .248 .009 .208 -.018 .002 -.469
_Importance_of_multim
edia

What_is_the_degree_of .072 .143 .700 -.097 .173 .086 -.070 -.081 -.090
_Importance_of_Built_i
n_camera

What_is_the_degree_of .146 .022 .110 .134 .092 -.124 .632 .063 -.004
_Importance_of_small_
size

What_is_the_degree_of .501 .365 .190 -.031 .056 -.050 .186 -.251 .418
_Importance_of_advan
ce_message_capability

What_is_the_degree_of .519 .452 .205 -.128 -.203 -.025 .051 -.006 .333
_Importance_of_larger_
memory

What_is_the_degree_of .868 .076 .095 -.021 .128 .026 -.064 .077 -.048
_Importance_of_JAVA_
enabled

What_is_the_degree_of .892 -.024 .101 .055 .008 .085 -.039 .096 .020
_Importance_of_WAP_
services

What_is_the_degree_of .243 .085 .696 .006 -.052 .018 -.009 .077 .113
_Importance_of_blueto
oth

What_is_the_degree_of .133 .059 .318 .128 .610 .005 .172 .066 .055
_Importance_of_new_p
roduct

What_is_the_degree_of -.179 .021 .063 .083 .443 -.192 .472 .111 .355
_Importance_of_mode_
at_redused_price

89
What_is_the_degree_of .068 .201 .500 .089 .300 -.079 .038 .621 .013
_Importance_of_appear
ence_and_style

What_is_the_degree_of .053 .795 .179 .168 .005 .023 .075 .006 -.086
_Importance_of_reliabili
ty

What_is_the_degree_of .089 .767 .048 .219 .026 -.027 .092 .084 .104
_Importance_of_usabilit
y

What_is_the_degree_of -.022 .617 -.049 .001 .455 .131 -.011 .104 -.168
_Importance_of_known
_brand

What_is_the_degree_of .029 .024 -.068 .073 .824 -.020 .038 .049 .035
_Importance_of_ref_rec
ommendation

What_was_the_degree .115 -.156 .221 .023 -.051 .753 -.049 -.009 .017
_of_Importance_of_Fea
ture

What_was_the_degree .106 .168 -.077 .178 -.056 .515 .322 -.282 .345
_of_Importance_of_Bat
terybackup

What_was_the_degree .008 -.179 .249 -.009 .215 .411 .100 .612 .033
_of_Importance_of_Loo
ks

What_was_the_degree -.200 .116 -.100 -.104 .045 .145 .736 .078 -.030
_of_Importance_of_Pric
e

What_was_the_degree -.026 .275 -.218 .032 .032 .656 -.101 .150 -.202
_of_Importance_of_Bra
nd_Reliability

How_important_are_go -.212 .293 .014 .159 -.091 -.027 -.201 .191 .372
od_network_coverage

90
How_important_are_rel .104 -.173 -.058 .174 .122 .024 .021 .109 .547
atives_in_same_networ
k

How_important_are_cal .161 .271 -.057 .238 -.059 -.080 .163 .642 .194
l_charges

How_important_are_cu .030 .250 .028 .492 .268 .199 -.245 .089 .249
stomer_care_service

How_important_are_val .028 .091 .113 .813 .190 .067 -.011 -.003 .130
ue_added_services

How_important_are_pri -.016 .190 -.009 .842 -.055 -.034 .171 .157 -.026
ce_of_value_added_se
rvice

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 17 iterations.

Component Transformation Matrix

Compo
nent 1 2 3 4 5 6 7

1 .439 .488 .437 .379 .301 .123 .164

2 -.684 .270 -.341 .344 .277 -.122 .260

3 -.236 -.596 .442 -.036 .443 .000 .090

4 -.116 -.036 -.145 .414 -.093 .719 -.406

5 .359 -.494 -.391 .209 .179 .263 .382

6 -.042 .294 -.110 -.600 .349 .487 .338

7 -.240 -.044 .348 .006 -.657 .282 .530

91
8 -.052 .008 -.059 -.401 -.031 .185 -.371

9 -.280 -.019 .432 .040 .207 .182 -.233

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

Component Transformation
Matrix

Compo
nent 8 9

1 .273 .166

2 .158 .200

3 .377 -.217

4 .113 -.300

5 -.147 .402

6 -.112 -.234

7 .096 .136

8 .503 .638

9 -.670 .392

Extraction Method: Principal

Component Analysis.

Rotation Method: Varimax with

Kaiser Normalization.

92
 Component Score Coefficient Matrix

Component

1 2 3 4 5 6 7 8 9

What_is_the_degree_of -.093 -.056 .356 .099 -.111 -.036 .064 .016 -.075
_Importance_of_colour
_screen

What_is_the_degree_of .193 -.074 .046 .186 -.011 .051 .058 -.055 -.378
_Importance_of_multim
edia

What_is_the_degree_of -.105 .061 .388 -.087 .083 .051 -.070 -.182 -.033
_Importance_of_Built_i
n_camera

93
What_is_the_degree_of .075 -.050 .006 .068 -.031 -.085 .433 -.008 -.106
_Importance_of_small_
size

What_is_the_degree_of .153 .105 .059 -.075 .026 -.025 .075 -.227 .256
_Importance_of_advan
ce_message_capability

What_is_the_degree_of .157 .171 .045 -.148 -.153 -.018 .006 .013 .216
_Importance_of_larger_
memory

What_is_the_degree_of .385 -.020 -.125 -.038 .087 -.048 -.039 .065 -.073
_Importance_of_JAVA_
enabled

What_is_the_degree_of .393 -.082 -.115 .015 .001 -.009 -.010 .087 -.017
_Importance_of_WAP_
services

What_is_the_degree_of -.023 -.004 .355 -.036 -.094 .004 -.028 -.030 .104
_Importance_of_blueto
oth

What_is_the_degree_of .015 -.040 .102 .007 .330 -.013 .042 -.093 .001
_Importance_of_new_p
roduct

What_is_the_degree_of -.077 -.056 .024 -.023 .199 -.086 .230 -.006 .200
_Importance_of_mode_
at_redused_price

What_is_the_degree_of -.037 .038 .155 -.073 .059 -.077 -.046 .366 -.010
_Importance_of_appear
ence_and_style

What_is_the_degree_of -.054 .355 .063 .011 -.056 -.013 .023 -.067 -.148
_Importance_of_reliabili
ty

What_is_the_degree_of -.014 .318 -.025 .021 -.051 -.039 .011 .009 -.016
_Importance_of_usabilit
y

94
What_is_the_degree_of -.030 .291 -.097 -.109 .262 .057 -.065 .009 -.179
_Importance_of_known
_brand

What_is_the_degree_of .041 -.032 -.112 -.025 .515 -.026 -.067 -.068 -.009
_Importance_of_ref_rec
ommendation

What_was_the_degree -.029 -.097 .122 -.017 -.044 .474 -.007 -.046 .090
_of_Importance_of_Fea
ture

What_was_the_degree -.003 .016 -.012 .060 -.057 .348 .210 -.252 .231
_of_Importance_of_Bat
terybackup

What_was_the_degree -.029 -.129 .042 -.110 .031 .252 .037 .414 .067
_of_Importance_of_Loo
ks

What_was_the_degree -.068 .045 -.053 -.097 -.054 .123 .512 .045 -.094
_of_Importance_of_Pric
e

What_was_the_degree -.020 .143 -.158 -.053 .013 .391 -.050 .122 -.131
_of_Importance_of_Bra
nd_Reliability

How_important_are_go -.135 .113 .034 .011 -.096 .002 -.203 .134 .287
od_network_coverage

How_important_are_rel .048 -.160 -.051 .050 .050 .036 -.055 .067 .413
atives_in_same_networ
k

How_important_are_cal .091 .055 -.161 .023 -.162 -.078 .067 .494 .074
l_charges

How_important_are_cu -.031 .037 -.020 .200 .133 .097 -.243 -.032 .165
stomer_care_service

How_important_are_val -.021 -.074 .037 .448 .050 -.005 -.050 -.148 .022
ue_added_services

95
How_important_are_pri -.005 -.015 -.047 .474 -.140 -.079 .112 .019 -.137
ce_of_value_added_se
rvice

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

Component Scores.

Component Score Covariance Matrix

Compo
nent 1 2 3 4 5 6 7

1 1.000 .000 .000 .000 .000 .000 .000

2 .000 1.000 .000 .000 .000 .000 .000

3 .000 .000 1.000 .000 .000 .000 .000

4 .000 .000 .000 1.000 .000 .000 .000

5 .000 .000 .000 .000 1.000 .000 .000

6 .000 .000 .000 .000 .000 1.000 .000

7 .000 .000 .000 .000 .000 .000 1.000

8 .000 .000 .000 .000 .000 .000 .000

9 .000 .000 .000 .000 .000 .000 .000

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

Component Scores.

Component Score Covariance

Matrix

96
Compo
nent 8 9

1 .000 .000

2 .000 .000

3 .000 .000

4 .000 .000

5 .000 .000

6 .000 .000

7 .000 .000

8 1.000 .000

9 .000 1.000

Extraction Method: Principal

Component Analysis.

Rotation Method: Varimax with

Kaiser Normalization.

Component Scores.

When all 27 variables were collectively used then a total of nine factors were extracted and 64%
variance of the data is explained.

Factor 1: These customer s are technology oriented they use the latest features of the phone like
JAVA enabled, WAP services, Advance message capability & larger memory.

Factor2 :These are the type of customer who are not very risk taking neither they are highly technical
they generally like to use the core benefit of the product

Factor3 :These are the customers who wants those features that are visible like colour screen, good
camera, look wise it should be better.

97
Factor4 :This is a unique group of customers or we can say an emerging group of customers(as value
added services are in very nascent stage in India) who normally use their phone as value added
service.

Factor5: This is the group of customer who generally like to use new product or depends on
reference group recommendation for its purchase

Factor6: This is a group of customer that basically a middle path follower they also like to go for
feature but also wants brand reliability in its purchase decision.

Factor7 : This is very price sensitive group of customers that wants mainly the small size handset
with reasonable price of the service

Factor8: These is also very similar to the customer of seventh factor seventh group customer don’t
want to show their handset and is price sensitive but these customers want to show their phone so they
need a special touch in their handset so that the look wise and appearance wise their handset looks
better. They are also very price sensitive customers

Factor9: These are the customer who is highly price sensitive they don’t need any other thing in their
phone they do a lot of talking so they need a handset and service provider that only provide them
most of the talking with the least cost.

Based on above analysis the four major group of customers can be considered that is currently boiling
up the Indian market they are:

 Talkers: These are the customer who is highly price sensitive they don’t need any other thing
in their phone they do a lot of talking so they need a handset and service provider that only
provide them most of the talking with the least cost.

 Referrers: This is the group of customer who generally like to use new product or depends on
reference group recommendation for its purchase

 Showers: These are the customer who wants those features that are visible like colour screen,
good camera, look wise it should be better.

 Safe Movers: This is a group of customer that basically a middle path follower they also like
to go for feature but also wants brand reliability in its purchase decision.

98
 CONCLUSION
As per my belief we have seen that the choice of mobile handset and services can not be separated
came out true because when we tried to find out the factors affecting purchase decision separately we
failed to find any statistically significant factor but when we combined the two to profile the customer
we successfully classified customers in to eight group each with some special requirement service
wise and handset’s attribute wise.

Competition in telecom industry is heating up its time for Indian telecom players also to align up in the
new dynamic business environment. Telco majors should think to launch the product according to the
needs of customers to satisfy them and make them brand loyal as very soon this blue ocean of Indian
telecom scenario will convert into red ocean where the loss of is the gain of other.

They should also think for searching new space or we can say either creating a new blue space to
sustain their growth in long run.

There is more room for data analysis but the rest of the part is beyond the scope of this project report

According to the results, the most important determinant for consumers are price and sacrifice
perception (monetary and non-monetary sacrifice), which in this case there are three parts for price
perception. These are periodical fixed cost, minute or traffic charge and opening cost when purchasing
mobile phone. The results indicate that the minute charge is the most influential factor when a
customer assesses to purchase. The second most important factor is the periodical fixed cost and
another factor is the opening cost. These indicate, not surprisingly, that communication firms need to
deeply consider. Also, this indicates that a lot of effort must be put in the pricing strategy.

99
References

Books:

Philip Kotler, ‘marketing management’ prentice Hall of India Pvt. Ltd. New Dehli.

C. R. Kothari ‘Research methodology’, vishwa publication, New Delhi.

Saxena Rajan ‘marketing management’ Tata Mcgraw-hill publicating Co. Ltd. New Delhi.

H. V. Verma ‘marketing of services’ Global business press, New Delhi.

Business today magazine of February issue,2008.

Web Resources:
http://www.surveyshare.com
http://www.tataindicom.com/t-aboutus-ttsl-organization.aspx
http://www.rcom.co.in/webapp/Communications/rcom/Aboutus/aboutus_home.jsp
http://www.ideacellular.com/IDEA.portal?_nfpb=true&_pageLabel=IDEA_Page_AboutIdea http://www.bsnl.co.in/about.htm
http://www.bsnl.co.in/service/tariff_excel_pre.htm
http://210.212.144.243/utility/tariff.htm
http://www.trai.gov.in/trai/upload/PressReleases/15/pr16jan06.pdf
http:// www.wikipediawww.totalnetwork.co.in .
http://www.rcom.co.in/webapp/Communications/rcom/index.jsp

100
GLOSSARY

101
Company Profile

102
Nokia Corporation is a Finnish multinational communications corporation, headquartered in
Keilaniemi, Espoo, a city neighboring Finland's capital Helsinki established in 1865. Nokia is focused
on wireless and wired telecommunications, with 112,262 employees in 120 countriescountries, sales in more
than 150 countries and global annual revenue of 51.1 billion Euros and operating profit of 8.0 billion
as of 2007. It is the world's largest manufacturer of mobile telephones: its global device market share
was about 38% in Q3 of 2008, down from 39% in Q3 2007 and down from 40% sequentially. Nokia
produces mobile phones for every major market segment and protocol, including GSM, CDMA, and
W-CDMA
CDMA (UMTS). Nokia's subsidiary Nokia Siemens Networks produces telecommunications
network equipments, solutions and services. Nokia has sites for research and development,
manufacturing and sales in many continents throughout the world. As of March 2008, Nokia had R&D
centers in 10 countries and employed 30,415 people in research and development, represen representing
approximately 27% of Nokia’s total workforce. The Nokia Research Center, founded in 1986, is
Nokia's industrial research unit of about 800 researchers, engineers and scientists. It has sites in seven
countries: Finland, Denmark, Germany, China, Japan, United Kingdom and United States. Besides its
NRCs, in 2001 Nokia founded (and owns) INdT – Nokia Institute of Technology, a R&D institute
located in Brazil. Nokia's production facilities are located at Espoo, Oulu and Salo, Finland; Manaus,
Brazil; Beijing,
ng, Dongguan and Suzhou, China; Fleet, England; Komárom, Hungary; Chennai, India;
Reynosa, Mexico; Jucu, Romania and Masan, South Korea. Nokia's Design Department remains in
Salo, Finland.Nokia plays a very large role in the economy of Finland: it is by fa far the largest Finnish
company, accounting for about a third of the market capitalization of the Helsinki Stock Exchange
(OMX Helsinki) as of 2007; a unique situation for an industrialized country. It is an important
employer in Finland and several small companiescompanies have grown into large ones as Nokia's
subcontractors. Nokia increased Finland's GDP by more than 1.5% in 1999 alone. In 2004 Nokia's
share of the Finland's GDP was 3.5% and accounted for almost a quarter of Finland's exports in 2003.
In 2006, Nokia generated revenue that for the first time exceeded the state budget of Finland. Finns
have ranked Nokia many times as the best Finnish brand and employer. Nokia brand valued at $35.9
billion, is listed as the 5th most valuable global brand in Interbrand/Business
usiness Week’s Best Global
Brands list of 2008 (1st non-USUS company).it
company). is thenumber one brand in Asia (as of 2007) and Europe
(as of 2008), 23rd most admirable Fortune's World's Most Admired Companies list of 2008 (tied with
Exxom mobil) 2nd in Network Communications, 5th non-US non company,, and is the world's 88th largest
fortune global 500 list of 2008, up from 119 of the previous year. As of AMR research Nokia’s global
supply chain ranks number two in the world.

103
 Motorola Inc. is an American,, multinat
multinational, Fortune 100, telecommunications based in Schaumburg,
Illinois . It is a manufacturer of wireless telephone handsets, also designing and telecommunications
company based handsets, also designing and selling wireless network infrastructure equipment such as
cellular transmission base station and signal amplifiers.Motorola's home and broadcast network
products include set up box digital video recorders, and network equipment used to enable video
broadcasting, computer telephony
telephony, and high-definition
definition television. Its business and government
customers consists sts mainly of wireless voice and broadband systems used to build private networks and
public safety communications systems. Motorola creates numerous products for use of the
government,
nment, public safety officials, business installments, and the general public. These products
include cell phones laptops computer processors, and radio communication devices. devices The Motorola
RAZR line has sold over 120 million units bringing the company to the the number two mobile phone slot
in 2005. Enterprise Mobility Solutions: Headquarters, located in Schaumburg IL comprise of
communication offered to government and public safety sectors and enterprise mobility business.
Motorola develops analog and digital two way radio, voice and data ata communications products and
systems, mobile computing, advanced data capture, wireless infrastructure and RFID solutions to
customers worldwide. Home & Networks Mobility: Headquarters, located in Horsham, PA produses
end to endd systems that facilitate uninterrupted access
access to digital entertainment, information and
communications services via wired and wireless mediums. Motorola develops digital video system
solutions, interactive set-top
top devices, voice and data modems for digital
digital subscriber line and cable
networks, broadband access systems for cable and satellite television subscriber line and cable
networks, broadband access systems for cable and satellite television providers and also wire line
carriers and wireless service providers.
providers Mobile Devices: Headquartered at Libertyville, IL, currently
the least prosperous arm of the firm, designs wireless handsets, but also licenses much of its
intellectual properties. This includes cellular and wireless handsets,. This includes cellular cel and
wireless system and as well as integrated applications and Bluetooth accessories. Motorola is the No. 2
manufacturer of wireless handsets after global leader Nokia. After a previous reorganization, its
remaining operations have been focused in ffour our business segments: connected home solutions;
government and enterprise mobility solutions; mobile devices; and networks. The company generates
nearly 60% of sales through the manufacture and sales of wireless handsets and related products.

104
 The LG Group is South Korea's third largest chaebol and is a multinational conglomerate that
produces electronics, mobile phones, and petrochemical products and operates subsidiaries like LG
Electronics, LG Telecom, Zenith Electronics and LG Chem in over 80 countries.LG Group founder
Koo In Hwoi established Lak Hui Chemical Industrial Corp. in 1947. As the company expanded its
plastics business, it established GoldStar Co., Ltd., (currently LG Electronics Inc.) in 1958.In 1959,
Goldstar produced Korea's first radio. Many consumer electronics were sold under the brand name
GoldStar, while some other household products (not available outside South Korea) were sold under
the brand name of Lucky. The Lucky brand was famous for its hygiene products line such as soaps and
Hi-Ti laundry detergents, but most associated with its Lucky and Perioe toothpaste.In 1995, it was
renamed "LG", the abbreviation of "Lucky GoldStar". More recently, the company associates its
tagline "Life's Good", with the letters LG.Since 2001, LG has two joint ventures with Royal Philips
Electronics: LG Philips Display and LG.Philips LCD. LG has entered into a joint venture with Nortel
Networks and has created LG-Nortel Co. Ltd.LG also has a joint venture with Hitachi, Hitachi-LG
Data Storage, which manufactures optical data storage products like DVD-ROM drives, CD writers,
etc. LG acquired American television manufacturing company Zenith in 1999.

LG Electronics is the world's second biggest maker of Televisions and third biggest marker of LCD
TVs and Mobile Phones. With headquarters in the LG Twin Towers on Yeouido, Seoul, LG
Electronics is the flagship company of LG Group, one of the world's largest Conglomerate.The
company has 75 subsidiaries worldwide that design and manufacture televisions, home appliances, and
telecommunications devices. LG Electronics owns Zenith Electronics and controls 37.9 percent of LG
Display. By 2005, LG was a Top 100 global brand and in 2006, LG recorded a brand growth of
14%.Now the world's largest plasma panel manufacturer, its affiliate, LG Display, is one of the largest
manufacturers of liquid crystal displays. Also in 2006, the company's mobile phone division, LG
Mobile, marketed the LG Chocolate phone, changing the company's image of the maker of thick 3G
phones. It now focuses on the design and marketing of phones such as the LG Shine, the LG Glimmer
and LG Prada (KE850). As a result, the company was picked as "The Design Team of the Year" by the
Red Dot Design Award in 2006~2007 and is often called the "New Apple" in the industry and online
communities. In 2006, its net income was $226 million, on total revenues of $24.7 billion. The
company was originally established in 1958 as GoldStar, producing radios, TVs, refrigerators,washing
machines, and air conditioners. The LG Group was a merger of two Korean companies, Lucky and
GoldStar, from which the abbreviation of LG was derived. The current "Life's Good" slogan is a
backronym. Before the corporate name change to LG, household products were sold under the brand
name of Lucky, while electronic products were sold under the brand name of GoldStar . The GoldStar
brand is still perceived as a discount brand.In 1995, GoldStar was renamed LG Electronics, and
acquired Zenith Electronics of the United States. LG Solar Energy is a subsidiary formed in 2007 to
allow LG Chem to supply polysilicon to LG Electronics for production of solar cells. In 2008, LG took
its first dive into the solar-panel manufacturing pool, as it announced a preliminary deal to form a joint
venture with Conergy. Under the deal, set to be completed by year's end, LG would acquire a 75
percent stake in Conergy's Frankfurt solar-panel plant

 Mobile communications
 LG Electronics is the world's third largest handset maker.
 Digital appliance

The home appliance division makes products like refrigerators, air conditioners and washing
machines. Its 2007 sales totaled KRW 11.8 trillion, accounting for 29% of the company's total
revenue. The division's profit was KRW 717.1 billion. About 35% of the company's home appliance
revenue comes from the North American market. Plasma TVs, LCD TVs, Micro Display Panel TVs,
Monitors, PDP Modules, OLED Panels, USB Memory, Flat Panel Computer Monitors.Home Theater

105
Systems, DVD Recorders,, Super Multi DVD Rewriters, CD±RW, Notebook PCs, Desktop PCs,
PDAs, PDA Phones, MP3 Players,
Players New Karaoke Systems, Car Infotainment

Sony Ericsson is a joint venture established on October 3, 2001 by the Japanese consumer electronics
company Sony Corporation and the Swedish telecommunications company Ericsson to make mobile
phones.. The stated reason for this venture is to combine Sony's consumer electronics expertise with
Ericsson's technological leadership in the communications sector. Both companies have stopped
making their own mobile phones.The company's global management is based in Hammersmith,
London, and it has research & development teams in Sweden, Japan, China, Germany, the United
States, India, Pakistan and the United Kingdom. By 2008, it was the fifth-largest
fifth largest mobile phone
manufacturer in the world after Nokia, Samsung, LG and Motorola.. The sales of products largely
increased due to the launch of the Walkman and Cyber-shot series.While Sony Ericsson has been
enjoying strong growth recently, its South Korean rival LG Electronics overtook it in Q1 2008 due to
the company's profits falling significantly by 43% to €133 million (approx. US$ 179.6697 million),
sales falling by 8% and market share dropping from
fro 9.4% to 7.9%, despite favorable conditions that
the handset market is expected to grow by 10% in 2008. Sony Ericsson has, as of July 18, 2008,
approximately 9,400 employees and 2,500 contractors worldwide. Hideki Komiyama is the president
of the company and has been since November 1, 2007 when he replaced Miles Flint Flint. The Corporate
Executive Vice President is Anders Runevad.
Runevad

Background of the joint venture

Sony was a marginal player in the worldwide cell phone market with a share of less than 1 percent in
2000. It was also struggling in this area with losses but wanted to focus more in this area. In Apr
April
2001, Sony confirmed that it was in talks with Ericsson for a possible collaboration in the handset
business. This was soon after Toshiba and Siemens had announced plans in November 2000 to work
together on handsets for 3G mobile networks, which was cancelled in 2001.By August 2001, the two
companies had finalized the terms ofof the merger announced in April. The company was to have an
initial workforce of 3,500 employees

The joint venture, however, continued to make bigger losses in spite of booming sales. Thus, it kept
postponing its target date for making a profit from its fi
first
rst year to 2002 to 2003 to second half of
2003.It even failed in its mission of becoming the top seller of multimedia handsets and was in fifth-
fifth
place and struggling in 2003.Sony Ericsson's recovery is credited to the success of the T610 model.In
2004, Sony Ericsson's market share increased from 5.6 percent in the first quarter to 7 percent in the
second quarter. On March 1, 2005, Sony Ericsson introduced the K750i with a 2 megapixel camera, as
well as its platform mate, the W800i,
W800i the first of the highly successful Walkman phones capable of
doing 30 hours of music playback and two low-end
low phones. On February 2, 2007, Sony Ericsson
acquired UIQ Technology,, a Swedish software company from Symbian Ltd. Sony Ericsson currently

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 concentrates on the categories of: music, camera, business (web and email), design, all
all-rounder, and
budget focused phones. Its five largest categories
categor are:

 The Walkman-branded
branded W series music phones, launched in 2005.
The Sony Ericsson W-series
series music phones are notable for being the first music
music-centric series mobile
phones, prompting a whole new market for portable music that was developing at the time. Sony
Ericsson's Walkman phones have previously been commercially endorsed endorsed by pop stars Christina
Aguilera and Jason Kay across Europe.
 The Cyber-shot-branded
branded line of phones, launched in 2006 in newer models of the K series phones.
phones.This
range of phones are focused on the quality of the camera included with the phone. Cyber
Cyber-shot phones
always include a flash, some with a xenon flash, and also include auto-focus
auto focus cameras. Sony Ericsson
kicked off its global marketing campaign for Cyber-shot
Cyber shot phone with the launch of ''Never Miss a Shot'.
The campaign featured top female tennis players Ana Ivanović and Daniela Hantuchová
Hantuchová. On 10
February 2008, the series has been expanded with the announcement of C702 and C902 phones. And
the whole new thing;Sony Ericsson C905.
 The BRAVIA-branded branded line of phones, launched in 2007 Japan market only.
Now, two mobile phones (FOMA FOMA SO903iTV and FOMA SO906i[7]) uses BRAVIA brand. BRAVIA
branded phone are able to watch 1seg terrestrial television.
 The UIQ smartphone range of mobiles, introduced with the P series in 2003 with the introduction of
P800.They
They are notable for their touchscreens, QWERTY keypads (on most models), and use of the
UIQ interface Platform from Symbian OS. OS. This has since expanded into the M series and G series
phones.
 The Xperia range of mobile phones, heralded by the Sony Ericsson XPERIA X1 on February 2008 at
the Mobile World Congress (formerly 3GSM) held in Barcelona Spain , had opened the door for
integration of Windows Mobile Operating System into Sony Ericsson powerhouse smartphones.
XPERIA was the first trademark promoted by the Sony Eri Ericsson
csson as its own and is designated to
provide technological convergence among its target user base

Sony Ericsson sold 60 million music enabled phones in 2006, including 17 million Walkman devices,
underlining how its products are more popular than Apple's iPod. Apple sold 46 million iPods in 2006.
According to the Swedish Magazine M3ss issue 7/2006 Sony Ericsson is the best best-selling phone brand
in the Nordic countries,, followed by Nokia. According to the IT research firm Gartner, in the third
quarter of 2008, Sony Ericsson became for the first time the third largest mobile phone manufacturer
in the world after Nokia and Samsung,
Samsung, despite failing to improve significantly its market share (8.05%
globally), and it is followed very closely by Motorola (7.98%) and LG (7.80%).

The Samsung Group is the world's largest conglomerate leading several industries in the world. It is
composed of numerous international businesses, all united under the Samsung brand, including
Samsung Electronics,, the world's largest electronics company, Samsung Heavy Industries
Industries, one of the
world's largest shipbuilders and Samsung Engineering & Construction,, a major global construction

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company. These three multinationals form the core of Samsung Group and reflect its name - the
meaning of the Korean word Samsung is "tristar" or "three stars".The Samsung brand is the best
known South Korean brand in the world and in 2005, Samsung overtook Japanese rival Sony as the
world's leading consumer electronics brand and became part of the top twenty global brands overall. It
is also the leader in many domestic industries, such as the financial, chemical, retail and entertainment
industries.Currently helmed by Lee Soo-bin, CEO of Samsung Life Insurance, it has been run by
generations of one of the world's wealthiest families, formerly by chairman Lee Kun-Hee, the third
son of the founder, Lee Byung-Chull. Samsung Group also owns the Sungkyunkwan University, a
major private university in South Korea.Many major South Korean corporations such as CJ
Corporation, Hansol Group, Shinsegae Group and Joong-Ang Ilbo daily newspaper were previously
part of the Samsung Group, split apart by the government in order to prevent Samsung from becoming
too powerful. A large number of South Korean firms, particularly those in the electronics industry, are
dependent on Samsung for the supply of vital components or raw materials such as semiconductor
chips or LCD panels.This has led to continued allegations of price fixing and monopolistic
practices.Samsung Group accounts for more than 20% of South Korea's total exports, with strong
government support, including the ability to access unlimited amount of funds from major banks in
South Korea. In many domestic industries, Samsung Group is the sole monopoly dominating a single
market, its revenue as large as some countries' total GDP. In 2006, Samsung Group would have been
the 34th largest economy in the world if ranked, larger than that of Argentina. The company owns or
has taken over so many mid to small sized businesses that it is often called a 'colonial empire' or
'hungry dinosaur'. The company has a powerful influence on the country's economic development,
politics, media and culture, being a major driving force behind the Miracle on the Han River; many
businesses today use its international success as a role model. Lee founded Samsung in 1938. It started
as a small trading company with forty employees, located in Seoul.The company did fairly well until
the Communist invasion in 1950 which caused great damage to his inventories. He was forced to leave
and start over in Suwon in 1951. In just a year, the company’s assets had grown twentyfold. In 1953,
Lee created a sugar refinery—the South Korea’s first manufacturing facility after the Korean War.
“The company prospered under Lee’s philosophy of making Samsung the leader in each industry he
entered” (Samsung Electronics). The company started moving into service businesses such as
insurance, securities, and department store. In the early 1970s, Lee borrowed money from foreign
companies to begin the mass communication industry by launching a radio and television station
(Samsung Electronics). South Korean government effectively required foreign telecommunications
equipment manufacturers to hand over advanced semiconductor technology in return for access to the
Korean market” (Samsung Electronics). This enormously helped Samsung to manufacture the first
Korean dynamic random access memory chips. Samsung Group later formed several electronics-
related divisions, such as Samsung Electron Devices Co., Samsung Electro-Mechanics Co., Samsung
Corning Co., and Samsung Semiconductor & Telecommunications Co., and grouped them together
under Samsung Electronics Co., Ltd. in 1980s. Its first product was a black-and-white television set
(Samsung Electronics).In the late 1980s and early 1990s, Samsung Electronics invested heavily in
research and development, constructing the company as a leader in the global electronics industry. “By
the 1980s Samsung was manufacturing, shipping, and selling a wide range of appliances and
electronic products throughout the world” (Samsung Electronics). In 1982, it built a television
assembly plant in Portugal; in 1984, it built a $25 million plant in New York; and in 1987, it built
another $25 million facility in England (Samsung Electronics).The 1990s saw Samsung rise as an
international corporation. Not only did it acquire a number of businesses abroad, but also began
leading the way in certain electronic components. Samsung's construction branch was awarded a
contract to build one of the two Petronas Towers in Malaysia, Taipei 101 in Taiwan and the Burj
Dubai in United Arab Emirates (founded by Callum Cuirtis), which is the tallest structure ever
constructed. In 1996, the Samsung Group reacquired the Sungkyunkwan University foundation. In
1993 and in order to change the strategy from the imitating cost-leader to the role of a differentiator,

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 Lee Kun-hee, Lee Byung-chull’s
’s successor, sold off ten of Samsung Group's subsidiaries, downsized
the company, and merged other operations to concentrate on three industries: electronics, engineering,
and chemicals (Samsung Electronics).

 Samsung
amsung is the world's largest manufacturer of Televisions and various other consumer electronics
electronics.
 Samsung is the world's second largest mobile phone maker.

Compared to other major Korean companies, Samsung survived the Asian financial crisis of 1997-98
relatively unharmed Most importantly, Samsung Electronics (SEC) was officially spun spun-off from the
Samsung
msung Group and has since come to dominate the group and the worldwide semiconductor business,
even surpassing worldwide leader Intel in investments for the 2005 fiscal yea year. Samsung's brand
strength has greatly improved in the last few years. Samsung became the largest producer of memory
chips in the world in 1992. In 1995, it built its first liquid-crystal display screen. Ten years later,
Samsung grew to be the world's largest manufacturer of liquid-crystal
liquid crystal display panels. Sony, which had
not invested in LCDs, contacted Samsung
Sams to cooperate. In 2006, S-LCD was established as a joint
venture between Samsung and Sony in order to provide a stable supply of LCD panels for both
manufacturers. S-LCD is owned by Samsung and Sony 51% to 49% respectively and operates its
factories and facilities in Tangjung, South Korea. In 2008, Samsung became the largest mobile phone
maker in the United States and 2nd largest mobile phone maker in the world. orld. Considered a strong
competitor by its rivals, Samsung Electronics expanded production dramatically to become the world's
largest manufacturer of DRAM chips, flash memory, optical storage drives and it aims to double sales
and become the top manufacturer
facturer of 20 products globally by 2010. It is now one of the world's leading
manufacturers of liquid crystal displays and next generation mobile phones. Samsung Samsu Electronics,
which saw record profits and revenue in 2004 and 2005, overtook Sony as one of the world's most
popular consumer electronics brands, and is now ranked #20 in the world overall. By late 2005,
Samsung had a net worth of US$77.6 77.6 billion.

Bharti Airtel,, formerly known as Bharti Tele-Ventures Limited (BTVL) is India India's largest and world's
third largest cellular service provider with more than 82 million subscribers as of December 2008. It
also offers fixed line services and broadband services. It offers its TELECOM services under the
Airtel brand and is headed by Sunil Mittal.
Mittal. The company also provides telephone services and Internet
access over DSL in 14 circles. The company complements its mobile, broadband & telephone services
with national andd international long distance services. The company also has a submarine cable
landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore.
The company provides end-to-end end data and enterprise services to the corporate customers through its
nationwide fiber optic backbone, last mile connectivity in fixed-line
fixed line and mobile circles, VSATs, ISP
and international bandwidth access through the gateways and landing station. SingTel owns over 30%
of the Bharti Telecom. Vodafone is also a shareholder of Airtel with 4% of the shares. Thus maki making it
a sister company of the brand Bharti Airtel India’s largest integrated and the first private telecom
services provider in all the 23 telecom circles. With its world class products and services, Bharti Airtel

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since its inception, has been at the forefront of technology and has steered the course of the telecom
sector in the country. The businesses at Bharti Airtel are structured into three strategic business units
(SBU’s) - Mobile Services, Telemedia Services & Enterprise Services. The Mobile business provides
mobile & fixed wireless services using GSM technology across 23 telecom circles, Telemedia
Services business offers broadband & telephone services in 94 cities. The Enterprise services provide
end-to-end telecom solution to corporate customers and additionally provides national & international
long distance services to carriers. We have recently forayed into Media Business by launching our
DTH Services in October 2008. All these services are rendered under a unified brand “Airtel”.Bharti
Airtel serves over 82mn customers as of October 31, 2008; of whom 80,199,747 subscribe to GSM
services and 2,549,043 use Telemedia Services either for voice and/or broadband access delivered
through DSL. They are the largest wireless service provider in the country, based on the number of
subscribers as of October 31, 2008. Bharti Airtel has a dominant position in the GSM services with a
market share of 34.5 % as of September 2008.The company also deploys, owns and manages passive
infrastructure pertaining to telecom operations under its subsidiary Bharti Infratel Limited. Bharti
Infratel owns 42% of Indus Towers Limited. This has been incorporated with an objective to provide
“Shared Telecom Infrastructure” to telecom operators across the world on a nondiscriminatory basis.
It’s commitment towards continuous innovation will enable optimization of future tower rollout and
enhance operational efficiencies and result in substantial cost savings for its customers.The strategy of
de-coupling infrastructure and backend processes from the core sales and marketing function was a
strategy pioneered by Airtel and then implemented by a number of other companies.Airtel is the
largest cellular service provider in India in terms of number of subscribers. Leading international
telecommunication companies such as Vodafone and SingTel held partial stakes in Bharti Airtel.

The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man would have
access to affordable means of information and communication. Dhirubhai, who single-handedly built
India’s largest private sector company virtually from scratch, had stated as early as 1999: “Make the
tools of information and communication available to people at an affordable cost. They will overcome
the handicaps of illiteracy and lack of mobility.” It was with this belief in mind that Reliance
Communications (formerly Reliance Infocomm) started laying 60,000 route kilometers of a pan-India
fiber optic backbone. This backbone was commissioned on 28 December 2002, the auspicious
occasion of Dhirubhai’s 70th birthday, though sadly after his unexpected demise on 6 July 2002.
Reliance Communications has a reliable, high-capacity, integrated (both wireless and wire line) and
convergent (voice, data and video) digital network. It is capable of delivering a range of services
spanning the entire infocomm (information and communication) value chain, including infrastructure
and services — for enterprises as well as individuals, applications, and consulting. Today, Reliance
Communications is revolutionizing the way India communicates and networks, truly bringing about a
new way of life.Reliance Communications along with Reliance Telecom and Flag Telecom, is part of
Reliance Communications Ventures (RCoVL). According to National Stock Exchange data, Anil
Ambani controls 66.75 per cent of the company, which accounts for more than 1.36 billion shares of
the company.[1]Reliance Infocomm is an Indian telecommunications company. It is the flagship
company of the Reliance-Anil Dhirubhai Ambani Group, comprising of power (Reliance Energy),
financial services (Reliance Capital) and telecom initiatives of the Reliance ADA Group. Reliance
Infocomm is currently managed by Anil Dhirubhai Ambani.It uses CDMA2000 1x technology.At

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present, Reliance Telecom's GSM cellular services are available in 340 towns within its eight-circle
footprint. Reliance's CDMA services are available in 19 states and cover about 65% of the country,
state wise. Reliance Infocomm also offered for the first time in India, mobile data services through its
R-World mobile portal. This portal leverages the data capability of the CDMA 1X network.

During the twelve months ended March 31, 2007, revenues of the Wireless business increased by 46%
to Rs. 10,728 crore (US$ 2,489 million) from Rs. 7,364 crore (US$ 1,709 million). Wireless EBITDA
increased to Rs. 3,984 crore (US$ 924 million) from Rs. 2,250 crore (US$ 522 million). Margins
expanded to 37% from 31%.EBITDA of the Global business increased by 98% during the twelve
months ended March 31, 2007 to Rs. 1,271 crore (US$ 295 million). EBITDA margins increased to
24% from 12% last year.In the same period, the Broadband business achieved revenue growth of
123% to Rs. 1,144 crore (US$ 265 million), and EBITDA increased by more than 6 times, to Rs. 519
crore (US$ 120 million). The EBITDA margin crossed 45% in the twelve months ended March 31,
2007, from 15% in the corresponding period in the previous year.

Tata Teleservices Limited (TTSL) is a part of the Tata Group of companies, an Indian conglomerate. It
runs under the brand name Tata Indicom in India, in various telecom circles of India. The company
forms part of the Tata Group's presence in the Telecommunication Industry in India, along with Tata
Teleservices (Maharashtra) Limited (TTML) and TATA COMMUNICATIONS LTD.Tata
Teleservices is part of the INR Rs. 2,51,543 Crore (US$ 62.5 billion) Tata Group, that has over 87
companies, over 330,000 employees and more than 2.8 million shareholders. With a committed
investment of INR 36,000 Crore (USD $7.5 billion) in Telecom (FY 2006), the Group has a
formidable presence across the telecom value chain.Tata Teleservices spearheads the Group’s
presence in the telecom sector. Incorporated in 1996, Tata Teleservices was the first to launch CDMA
mobile services in India with the Andhra Pradesh circle.Starting with the major acquisition of Hughes
Telecom (India) Limited [now renamed Tata Teleservices (Maharashtra) Limited] in December 2002,
the company swung into an expansion mode. With a total Investment of Rs 19,924 Crore, Tata
Teleservices has created a Pan India presence spread across 20 circles that includes Andhra Pradesh,
Chennai, Gujarat, J & K, Karnataka, Delhi, Maharashtra, Mumbai, North East, Tamil Nadu, Orissa,
Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala,
Kolkata, Madhya Pradesh and West Bengal.Having pioneered the CDMA 3G1x technology platform
in India, Tata Teleservices has established a robust and reliable 3G ready telecom infrastructure that
ensures quality in its services. It has partnered with Motorola, Ericsson, Lucent and ECI Telecom for
the deployment of a reliable, technologically advanced network.The company, which heralded
convergence technologies in the Indian telecom sector, is today the market leader in the fixed wireless
telephony market with a total customer base of over 3.8 million.Tata Teleservices’ bouquet of
telephony services includes Mobile services, Wireless Desktop Phones, Public Booth Telephony and
Wireline services. Other services include value added services like voice portal, roaming, post-paid
Internet services, 3-way conferencing, group calling, Wi-Fi Internet, USB Modem, data cards, calling
card services and enterprise services. Some of the other products launched by the company include
prepaid wireless desktop phones, public phone booths, new mobile handsets and new voice & data
services such as BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactive
applications like news, cricket, astrology, etc.Tata Indicom redefined the existing prepaid mobile

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market in India, by unveiling their offering – Tata Indicom "Non Stop Mobile" which allows
customers to receive free incoming calls. Tata Teleservices today has India’s largest branded telecom
retail chain and is the first service provider in the country to offer an online channel www.ichoose.in to
offer postpaid mobile connections in the country.Today, Tata Teleservices Limited along with Tata
Teleservices (Maharashtra) Limited serves over 28 million customers in over 5,000 towns. With an
ambitious rollout plan both within existing circles and across new circles, Tata Teleservices offers
world-class technology and user-friendly services in 20 circles.Tata Teleservices has also acquired
GSM licenses for specific circles in India.Tata Indicom in March 2008, crossed the 24 million
subscribers mark in the wireless category with an overall subscriber base of over 25 million.It has a
current subscriber base of 24.3 million and a 9.33% cumulative market share. Tata Indicom continues
to register the highest CAGR at 113% in the wireless segment with a net base of 12.8 million against a
starting base of 11.8 million.(All figures based on March 2008. Figures Available on AUSPI
website).Tata Teleservices also gained the No. 2 slot in terms of Market Share in Delhi NCR region
with a subscriber base of 3 million. It beat Vodafone to the No. 2 spot and positioned itself just behind
Airtel in the circle.Tata Teleservices operates primarily on the CDMA network. CDMA offers a robust
and technologically superior path & ecosystem. CDMA has an edge over GSM as it allows more
communication to be carried with the same infrastructure and also brings costs down. Tata Indicom’s
enterprise solutions work on the CDMA 3G-1X technology that offers superior voice clarity and
congestion-free networks. Many existing GSM 2G (GSM/GPRS) operators are slowly beginning to
switch to WCDMA technology. 25 GSM operators worldwide have deployed CDMA2000 to deliver
3G value added services.The total tower strength of Tata Indicom is currently at 12,500 towers
nationwide, which includes 10,000 for TTSL and 2,500 for TTML.The Enterprise segment is another
important business vertical for the company.Tata Indicom as a brand stands out amongst other
Telecom brands in India due to the trustworthiness and dynamic nature of the Tata trademark, as well
as the consumer connect it has created over the years. According to a survey conducted by global
market research agency Synovate, Tata Indicom, the retail brand of Tata Teleservices Limited, was
positioned as numero-uno by television viewers in major Indian metropolitan cities in September
2007. Tata Teleservices has recently launched the Virgin Mobile Brand to target the youth segment.
Going forward, Tata Teleservices will introduce more segmented brands/products for niche markets in
India.The company currently operates its retail business nationally through 3,000 plus outlets
comprising of 600 TTSL owned stores and more than 2,500 stores in the Franchisee format. Tata
Indicom already covers the top 700 towns in India in terms of population through Tata Indicom
Exclusive Stores. Most towns with a population of 50,000 and above within the 20 circles of TTSL’s
operation already have the presence of a Tata Indicom Exclusive outlet.This is the largest branded
retail presence amongst all telecom operators in the country and in fact, makes Tata Indicom the
largest retailer in India in terms of number of stores under one brand name. The two retail formats
earlier existed as True Value Hubs and True Value Shops, primarily depending on the kind of products
and level of customer service provided. Over a period of time, the small format TVSs’ were upgraded
to undertake a larger extent of varied customer services like bill payments, customer service requests,
etc.Tata Teleservices, in October 2007, unveiled a full-blown Tata Zone, the popular infotainment
space on Tata Indicom BREW-enabled mobile phones, in Hindi. This unique service comes loaded
with exciting applications, pricing details, downloads and browsing instructions in Hindi.The rationale
behind this was simple: - 66% of all Indians speak Hindi, while less than 5% understand English. Tata
Teleservices, the country’s fastest growing telecom service provider today, recognizes this fact and is
therefore, increasingly embracing Hindi to drive the adoption of data services among the non-English
speaking population.Under its VAS bouquet, TTSL offers varied services such as News, Games,Faith
and Prayers, Ringtones, Fun Shows, Video Zone, Song Download Express, Cricket, Internet Surfing,
Astrology, Mobile Office, Remo Mail and other such services.In March 2008, Tata Indicom also
launched a first of its kind service known as i-HELP services, a free of charge service which enables
subscribers to contact their near and dear ones in times of an emergency via one simple SMS.Tata

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Indicom will also soon provide m-commerce, mobile advertising, mobile TV and social networking
under its VAS offerings.Tata is the direct competitor with Reliance, both CDMA operators in India.
The company provides unified telecommunication solutions including mobile, fixed wireless, fixed
line and broadband. Other competitors are Vodafone, Airtel, Aircel, Idea, MTNL, BSNL providing
GSM based mobile telephony.The company was first in India to provide free intra network calling
within city limits. They launched a unique scheme providing lifetime rental free connectivity on its
mobile and fixed wireless for a one time charge.

Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation Limited) is a
public sector communications company in India. It is the India's largest telecommunication company
with 25.14% market share as on December 31, 2007. Its headquarters are at Bharat Sanchar Bhawan,
Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini-ratna - a status assigned to
reputed Public Sector companies in India.BSNL is India's oldest and largest Communication Service
Provider (CSP). Currently BSNL has a customer base of 68.5 million (Basic & Mobile telephony). It
has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are
managed by MTNL. As on December 31, 2007 BSNL commanded a customer base of 31.7 million
Wireline, 4.1 million CDMA-WLL and 32.7 million GSM Mobile subscribers. BSNL's earnings for
the Financial Year ending March 31, 2007 stood at INR 397.15b (US$ 9.67 b) with net profit of INR
78.06b (US$ 1.90 billion). Today, BSNL is India's largest Telco and one of the largest Public Sector
Undertaking with estimated market value of $ 100 Billion. The company is planning an IPO with in 6
months to offload 10 % to public.Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th
largest Telecommunications Company providing comprehensive range of telecom services in India:
Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT,
VoIP services, IN Services etc. Within a span of five years it has become one of the largest public
sector unit in India. BSNL has installed Quality Telecom Network in the country and now focusing on
improving it, expanding the network, introducing new telecom services with ICT applications in
villages and wining customer's confidence. Today, it has about 47.3 million line basic telephone
capacity, 4 million WLL capacity, 20.1 Million GSM Capacity, more than 37382 fixed exchanges,
18000 BTS, 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network
connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs villages.
BSNL is the only service provider, making focused efforts and planned initiatives to bridge the Rural-
Urban Digital Divide ICT sector. In fact there is no telecom operator in the country to beat its reach
with its wide network giving services in every nook & corner of country and operates across India
except Delhi & Mumbai. Whether it is inaccessible areas of Siachen glacier and North-eastern region
of the country. BSNL serves its customers with its wide bouquet of telecom services.
BSNL is numero uno operator of India in all services in its license area. The company offers vide
ranging & most transparent tariff schemes designed to suite every customer.
BSNL cellular service, CellOne, has more than 17.8 million cellular customers, garnering 24 percent
of all mobile users as its subscribers. That means that almost every fourth mobile user in the country
has a BSNL connection. In basic services, BSNL is miles ahead of its rivals, with 35.1 million Basic
Phone subscribers i.e. 85 per cent share of the subscriber base and 92 percent share in revenue terms.

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 BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers who access
Internet through various modes viz. Dial-up,
Dial up, Leased Line, DIAS, Account Less Internet(CLI). BSNL
has been adjudged as the NUMBER
UMBER ONE ISP in the country. BSNL has set up a world class multi multi-
gigabit, multi-protocol
protocol convergent IP
IP infrastructure that provides convergent services like voice, data
and video through the same Backbone and Broadband Access Network. At present there are 0.6
million DataOne broadband customers. The company has vast experience in Planning, Installation,
network
etwork integration and Maintenance of Switching & Transmission Networks and also has a world
class ISO 9000 certifieded Telecom Training Institute.Scaling
Institute.Scaling new heights of success
success, the present
turnover of BSNL is more than Rs.351,820 million (US $ 8 billion) with with net profit to the tune of
Rs.99,390 million (US $ 2.26 billion) for last financial year.
year The infrastructure asset on telephone
alone is worth about Rs.630,000 million (US $ 14.37 billion). BSNL plans to expand its customer base
from present 47 millions lines to 125 million lines by December 2007 and infrastructure investment
plan to the tune of Rs. 733 crores (US$ 16.67 million) million) in the next three years.
The turnover, nationwide coverage, reach, comprehensive range of telecom services and the desire to
excel
xcel has made BSNL the No. 1 Telecom Company of India.

BSNL provides almost every telecom service in India. Following are the main telecom services
provided by BSNL:

 Universal Telecom Sevices : Fixed wireline services & Wireless in Local loop (WLL) using CDMA
Technology called bfone and Tarang respectively. BSNL is dominant operator in fixed line. As of
December 31, 2007,, BSNL has 81% marketshare of fixed lines.

 Cellular Mobile Telephone Services:

Services: BSNL is major provider of Cellular Mobile Telephone services
using GSM platform under the brand name CellOne[2]. Prepaid cellular services of BSNL are know as
Excel. As of March 31, 2007 BSNL has 17% share of mobile telephony in the country.

 Internet:: BSNL provides internet services through dial-up

dial connection (Sancharnet
Sancharnet) as Prepaid,
(NetOne)) as Postpaid and ADSL broadband (DataOne).
( ). BSNL has around 50% market share in
broadband in India. BSNL has planned aggressive rollout in broadband for current financial year.

 Intelligent Network (IN):: BSNL provides IN services like televoting, toll free calling, premium calling
etc.

Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16 telecom
circles in India Despite
espite the official name being Vodafone Essar, its products are simply branded
Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is
especially strong in the major metros.Vodafone Essar provides 2G services based on 900 MHz and
1800 MHz digital GSM technology, offering voice and data services in 16 of the country's 23 licence

114
areas.Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 16 telecom
circles in India . Despite the official name being Vodafone Essar, its products are simply branded
Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is
especially strong in the major metros.Vodafone Essar provides 2G services based on 900 MHz and
1800 MHz digital GSM technology, offering voice and data services in 16 of the country's 23 licence
areas.Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals,
15%.On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka
Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja
Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at
USD 18.8 billion . The transaction closed on May 8, 2007.

In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating its services
under a single identity. The Company entered into agreement with NTT DoCoMo to launch i-mode
mobile Internet service in India during 2007.The company used to be named Hutchison Essar,
reflecting the name of its previous owner, Hutchison. However, the brand was marketed as Hutch.
After getting the necessary government approvals with regards to the acquisition of a majority by the
Vodafone Group, the company was rebranded as Vodafone Essar. The marketing brand was officially
changed to Vodafone on 20 September 2007.On September 20, 2007 Hutch becomes Vodafone in one
of the biggest brand transition exercises in recent times.Vodafone Essar is spending somewhere in the
region of Rs 250 crores on this high-profile transition being unveiled today. Along with the transition,
cheap cell phones have been launched in the Indian market under the Vodafone brand. There are plans
to launch co-branded handsets sourced from global vendors as well.A popular daily quoted a
Vodafone Essar director as saying that "the objective is to leverage Vodafone Group's global scale in
bringing millions of low-cost handsets from across-the-world into India."While there is no revealing
the prices of the low-cost Vodafone handsets, the industry is abuzz that prices might start at Rs 666,
undercutting Reliance Communications' much-hyped 'Rang Barse' with cheap handsets beginning at
Rs 777.Meanwhile, Vodafone Essar sources said there would be no discounts or subsidized handset
offers -- rather handset-bundled schemes for customers.Incidentally, China's ZTE, which is looking to
set-up a manufacturing unit in the country, is expected to provide several Vodafone handsets in India.
Earlier this year, Vodafone penned a global low-cost handset procurement deal with ZTE.

In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994 was
awarded a licence to provide mobile telecommunications services in Mumbai (formerly Bombay) and
launched commercial service as Hutchison Max in November 1995. Analjit Singh of Max still holds
12% in company.By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison
Whampoa had acquired interests in six mobile telecommunications operators providing service in 13
of India's 23 licence areas and following the completion of the acquisition of BPL that number
increased to 16. In 2006, it announced the acquisition of a company that held licence applications for
the seven remaining licence areas.In a country growing as fast as India, a strategic and well managed
business plan is critical to success. Initially, the company grew its business in the largest wireless
markets in India - in cities like Mumbai, Delhi and Kolkata. In these densely populated urban areas it
was able to establish a robust network, well known brand and large distribution network -all vital to
long-term success in India. Then it also targeted business users and high-end post-paid customers
which helped Hutchison Essar to consistently generate a higher Average Revenue Per User ("ARPU")
than its competitors. By adopting this focused growth plan, it was able to establish leading positions in
India's largest markets providing the resources to expand its footprint nationwide.In February 2007,
Hutchison Telecom announced that it had entered into a binding agreement with a subsidiary of
Vodafone Group Plc to sell its 67% direct and indirect equity and loan interests in Hutchison Essar
Limited for a total cash consideration (before costs, expenses and interests) of approximately US$11.1
billion or HK$87 billion.In 2005 Hutch Acquired BPL, another mobile service provider in India and
later in 2008 Vodafone acquired Dishnet Wireless, a service provider in Orissa and has successfully

115
launched its services in the following circle.and Vodafone launched the Apple iPhone 3G to be used
on its 17 circle 2G network.Hutch was often praised for its award winning advertisements which all
follow a clean, minimalist look. A recurrent theme is that its message Hello stands out visibly though
it uses only white letters on red background. Another recent successful ad campaign in 2003 featured a
pug named Cheeka following a boy around in unlikely places, with the tagline, Wherever you go, our
network follows. The simple yet powerful advertisement campaigns won it many admirers.

IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange (BSE and
the National Stock Exchange (NSE) in March 2007.Idea Cellular is a leading GSM mobile service
operator with pan India licenses. With a customer base of over 36 million in 15 service areas,
operations are soon expected to start in Orissa and Tamil Nadu-the first steps in providing pan India
services covering over 90% of India's telephony potential.A frontrunner in introducing revolutionary
tariff plans, IDEA Cellular has the distinction of offering the most customer friendly and competitive
Pre Paid offerings, for the first time in India in an increasingly segmented market.Customer Service
and Innovation are the drivers of this Cellular Brand. A brand known for many firsts, Idea was the first
to launch GPRS and EDGE in the country. Idea has received international recognition for its path-
breaking innovations when it won the GSM Association Award for "Best Billing and Customer Care
Solution" for 2 consecutive years.IDEA Cellular is part of the Aditya Birla Group, India's first truly
multinational corporation. The group operates in 25 countries, and is anchored by over 100,000
employees belonging to 25 nationalities. The Group has been adjudged 'The Best Employer in India
and among the Top 20 in Asia' by the Hewitt-Economic Times and Wall Street Journal Study
2007.Initially the Birlas, the Tatas and AT&T Wireless each held one-third equity in the company. But
following AT&T Wireless' merger with Cingular Wireless in 2004, Cingular decided to sell its 32.9%
stake in Idea. This stake was bought by both the Tatas and Birlas at 16.45% each.Tata's foray into the
cellular market with its own subsidiary, Tata Indicom, a CDMA-based mobile provider, cropped
differences between the Tatas and the Birlas. This dual holding by the Tatas also became a major
reason for the delay in Idea being granted a license to operate in Mumbai. This was because as per
Department of Telecom (DOT) license norms, one promoter could not have more than 10% stake in
two companies operating in the same circle and Tata Indicom was already operating in Mumbai when
Idea filed for its license.The Birlas thus approached the DOT and sought its intervention, and the Tatas
replied by saying that they would exit Idea but only for a good price. On April 10, 2006, the Aditya
Birla Group announced its acquisition of the 48.18% stake held by the Tatas at Rs. 40.51 a share
amounting to Rs. 44.06 billion. While 15% of the 48.14% stake was acquired by Aditya Birla Nuvo, a
company in-charge of the Birlas' new business initiatives, the remaining stake was acquired by Birla
TMT holdings Private Ltd., an AV Birla family owned company.Currently, Birla Group holds 49.1%
of the total shares of the company.Global in vision, rooted in Indian values, the Group is driven by a
performance ethic pegged on value creation for its multiple stakeholders.The group operates in 25
countries, and is anchored by over 100,000 employees belonging to 25 nationalities. The Group has
been adjudged 'The Best Employer in India and among the Top 20 in Asia' by the Hewitt-Economic
Times and Wall Street Journal Study 2007. A premium conglomerate, the Aditya Birla Group is a

116
leader in swathe of products - viscose staple fibre, aluminium, cement, copper, carbon black,
insulators, garments.The Group has also made successful forays into financial services, telecom.Idea
has successfully launched 2 more new circles (service areas) in India viz. Bihar (including Jharkhand),
and Mumbai.Recently, Idea has also entered the mobile markets of Karnataka and Punjab through the
acquisition of Modi Group owned Spice Telecom to make itself a pan-India player. The official brand
name has been changed from Spice to Idea in these circles w.e.f. 19th December 2008.With a
customer base of over 36 million, IDEA Cellular has operations in Delhi,Maharashtra, Goa, Gujarat,
Andhra Pradesh, Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh
and Kerala. IDEA Cellular's footprint currently covers approximately 45% of India's population and
over 50% of the potential telecom-market.As a leader in Value Added Services, Innovation is central
to IDEA's VAS Factory. It is the first cellular company to launch music messaging with 'Cellular
Jockey', 'Background Tones', 'Group Talk', a voice portal with 'Say IDEA' and a complete suite of
Mobile Email Services.Idea Cellular is a wireless telephony company operating in various states in
India. The company has its retail outlets under the "Idea n' U" banner. The company has also been the
first to offer flexible tarrif plans for prepaid customers. It also offers GPRS services in urban areas.,

Charts Of Various Demographic Factors

117
118
119
Growth of telecommunicatiom

120
Definitions
3G The third generation of mobile system infrastructure provides high-speed data transmissions up to 2 Mbit/s. 3G supports multimedia
applications such as streaming video, video conferencing and Internet access.
3GPP 3GPP is the 3rd Generation Partnership Project (3GPP), which was established in December 1998. The project’s main aim is to
specify the 3G mobile phone system.
Access point Access point is usually defined as the interface to something. In the context of mobile data services the access point is
defined as the setup of parameters, through which it is possible to connect to the operator’s network and services.
ANOVA ANOVA is a statistical technique testing whether several samples have equal means, and therefore it is different from the t-test,
which only compares two samples at the same time.
ARPU Average revenue per user reflects the amount of revenue extracted from a single (mobile) subscriber.
ASCII ASCII (American Standard Code for Information Interchange) is a 7-bit code that represents the basic letters of the Roman
alphabet, numbers, and other characters used in computing and information technology.
Bluetooth Bluetooth is a standard describing a wireless communication interface between small wireless devices, such as mobile
phones. In comparison to infrared, an immediate line of sight is not needed.
Breusch-Pagan / Cook-Weisberg test A common test for heteroscedasticity, developed by Breusch and Pagan (1979) and also
implemented in Stata.
CDMA2000 CDMA2000 is an extension to the standard CDMA technology. It is a 3G technology, principally utilized in the U.S.
Ceteris paribus Latin, meaning all else kept constant.
Deviance Deviance is a measure of how well data are fitted by a statistical model, utilized for example in GLM methods.
Dominant mobile market ecosystem Dominant mobile market ecosystem is defined as the existing dominant value-network and related
business practices in a particular country’s (market’s) operator business world.
DRM Digital rights management (DRM) deals with the security and protection of content under copyright. In other words, DRM
systems and technologies set out to prevent copyright infringements and protect intellectual property rights.
Dummy variable Dummy variable is a Boolean variable indicating e.g. certain background factors. For example, a gender dummy
variable in regression studies separates variance due to gender differences (male/female).
EDGE EDGE (Enhanced Data GSM Environment) is one of the technology upgrade options available to GSM networks, along with
GPRS and HSCSD. Being built on the old GSM standard, it can support up to 384 kbit/s data transmission.
Endogenous variable Endogenous variable is a variable defined inside the model. It is not isolated, but rather affected by other included
variables in the mathematical model.
Exogenous variable Exogenous variables, in contrast to endogenous variables, are defined outside the model. They do not depend on
other variables in the mathematical model.
Factor analysis Factor analysis is a statistical technique used to either estimate factors or latent variables, or reduce the dimensionality
of a large number of variables to a fewer number of factors.
Factorial MANOVA A MANOVA setting in which the dependent variables are constructs consisting of several variables, such as in
factor analysis.
GLM GLM (generalized linear models) are a family of statistical methods, which can be used in regressing e.g. counts, binary or
fractional variables, which do not fulfill the assumptions of standard regression calculus.
GPRS GPRS is a packet data transfer capability brought in the market in 2001. It supports always-on data connections, in which
subscribers are only charged for actual data transmission. It also supports enhanced data transfer rates.
GSM GSM (Global System for Mobile Communication) is a mobile communication system standard, mainly used in Europe. It was one
of the first digital mobile communication standards, spreading quickly all over the world in the 90s.
Heteroscedasticity A phenomenon in statistical studies, in which there is a lack of homogeneity of variance. This is a situation in which
the variance of a dependent variable differs (is heterogeneous) across all levels of the independent variables

HTTP HTTP stands for Hypertext Transfer Protocol. HTTP is a way of transferring information in the World Wide Web. It
is an application-layer protocol.
IM IM stands for instant messaging. Instant messaging is a chatlike service, in which users engage in conversations with text
messages over the network.

121
IMAP IMAP stands for Internet Message Access Protocol, which is a common application-layer protocol in email services.
The main idea is that a client can access emails that reside on a remote server.
IMS IMS stands for IP-based multimedia subsystem. IMS is a technology providing an integrated IP-based platform to
provide mobile services. For an operator IMS provides new possibilities to manage and provision IP based services in an
integrate fashion, combining everything from charging to service hosting.
Infrared A technology developed for communication between small handheld devices, such as mobile phones. Physically
infrared medium is a portion of the electromagnetic spectrum immediately adjacent to visible light.
Internet Internet is a vast collection of inter-connected networks that are connected using the TCP/IP protocols, providing
services such as WWW, nowadays also multimedia such as streaming video.
IP IP stands for Internet Protocol. It is a network-level dataoriented protocol. IP is used in transmitting data across
packetswitched networks. The structure of the Internet is based on IPaddresses, and TCP/IP stack is an important part of the
daily operation of the Internet.
IPv4 IPv4 is currently the most popular network layer protocol in the Internet. The address space is, however, limited to 32
bits.
IPv6 Extends the current IPv4 architecture in internet packet traffic. IPv6 uses 128-bit addresses rather than the current 32-bit
addresses allowing for an exponential increase in the number of available IP addresses. IPv6 also adds new security and
performance features to the protocol.
Lawley-Hotelling trace A test statistic frequently used in multivariate analysis of variance (MANOVA), reflecting e.g. the
statistical explanatory power of a variable.
Page 122 of 124

MANOVA MANOVA is a statistical technique for testing whether several samples have equal means in multiple
dimensions, and it thus utilizes several dependent variables, differing thus from ANOVA.
Maximum likelihood method The maximum likelihood method is a general method of finding estimated (fitted) values of
parameters. Estimates are found such that the joint likelihood function, which is the product of the values of the distribution
function for each observed data value, is as large as possible.
McFadden's pseudo-R A measure of fit used in evaluating Tobit regressions.
MMS MMS (Multimedia Messaging Service) is a technology used in mobile communications that allows you to create, send,
and receive text messages that also include an image, audio, and/or video clip.
Mobile VoIP Mobile VoIP is a VoIP (see VoIP) service implemented for mobile pocket-size devices.
MSE MSE is the mean squared error of an estimator, and it is the expected value of the square of the difference between the
estimator and the parameter.
Negative binomial regression A regression method, which utilizes the negative binomial distribution in fitting the sample
data and analyzing the relationship to various independent variables.
Newton-Raphson Newton-Raphson is a well-known numerical algorithm for solving equations, used in maximum likelihood
estimating.
OLAP OLAP (online analytical processing) is a class of powerful database programs that allow users to analyze data from
databases, convert them, create statistics, graphs, look into relations etc.
Packet data Packet data refers to data connections and services, which go in packets, i.e. packet-switched connections. For
example mobile networks support both circuit and packet-switched connections in accessing the Internet. Packet data is the
defacto way of connecting to the Internet nowadays.
PDA PDA (personal digital assistant) is typically a small, handheld wireless device capable of storing and/or transmitting
pages, data messages, voice calls, faxes and e-mails. Today’s smartphones are much like PDA devices, but PDA devices in
their traditional definition were not able to wirelessly transmit data or connect to cellular networks.
Pearson chi-square Pearson chi-square is the traditional chi-square statistic, which can be used in non-parametric
contingency table testing, for instance.

Pillai’s trace A test statistic frequently used in multivariate analysis of variance (MANOVA), reflecting e.g. the statistical
explanatory power of a variable.
Poisson regression Poisson regression is a member of GLM family, and it is used in regressing counts (which follow Poisson

122
distribution).
POP POP stands for Post Office Protocol. It is an application-layer protocol in the Internet, which provides a possibility to
retrieve email from a remote server.
Probit analysis Probit analysis is similar to logistic analysis in that it studies binary variables. It is also a member of the
GLM family, differing from the logistic regression because of a different link function.
Proxy variable Proxy variable is a special variable used in statistics, e.g. in regression studies. Proxy variable perhaps does
not directly reflect the thing to be measured, but it at least partly reflects that variable. In other words, there is correlation
between the thing to be measured and the proxy variable. For example, the extent of early-adopter behavior could be
measured with the variable indicating the time or activities spent with the smartphone.
PSTN Public switched telephone network (PSTN) is the network of all of the public circuit-switched telephone networks in
the world. PSTN is largely digital nowadays, and it includes both fixed and mobile telephones. ITU-T has mostly driven the
standardization of PSTN.
Push-to-talk Push-to-talk is a walkie-talkie kind of voice service, which does not support full-duplex talk. It is sometimes
also called as pushover-cellular or PoC.
Ramsey RESET test Ramsey’s RESET specification test is used in looking for model misspecification in regressions. This
test is based on a testequation where the original equation is expanded with powers of the interpolation fit series.
Roy’s largest root A test statistic frequently used in multivariate analysis of variance (MANOVA), reflecting e.g. the
statistical explanatory power of a variable.
S60 A platform for smartphones, developed by Nokia. Based on the Symbian operating system, S60 provides a standardized
interface and a semi-open platform for developers to create advanced applications for modern smartphones. The platform was
earlier known as Series 60.
SIP SIP stands for Session Initiation Protocol. It is a signaling protocol used to initiate, modify and terminate sessions. SIP is
likely to have an important role in the implementation of VoIP services, multimedia offerings and other new generation
Internet-type services.
Smartphone Smartphone is an intelligent mobile handset that typically includes a large color display, processing capacity,
digital camera, multimedia capabilities, Internet connection etc. They extend the lifeline of PDA devices, integrating also the
capabilities of mobile phones into the same handset.
SMS SMS (Short Message Service) is a text communication system in GSM networks. Rather than making a long call to
cover a simple purpose, an SMS can be sent as a text message to other mobile users quickly and cheaply.
SMTP SMTP is Simple Mail Transfer Protocol, and it is a widely used Internet standards for sending email messages.
Spyware Spyware is illegal software used in monitoring subscribers without them knowing about it. Subscriber
data/information is delivered to such actors, who usually use it in e.g. direct marketing (e.g. spamming).
Stata A statistical software, which provides various advanced statistical tools.
Symbian Symbian is an operating system specifically developed for mobile handsets. It is the basis for Nokia Series 60
platform.
T-test T-tests can be used when comparing means between two different samples. It utilizes Student’s t distribution as a
reference statistic.
UMA Unlicensed mobile access is a developed technology for providing tunneled connections over unlicensed
packetswitched networks (such as WiFi hotspots) back to the operator’s core network. Among others, UMA provides a
capability to do handovers from GSM to WiFi. Nowadays the technology is developed under 3GPP under the name GAN.
UMTS UMTS (Universal Mobile Telephone System) is the technology standard used in 3G mobile phones. Among others, it
will provide improved data transmission capability.
-value A mathematical term describing how much variation of a particular dependent variable is being explained by an
independent variable. Typically used in regression reporting.
VoIP VoIP (voice over IP) means voice services, which are carried through IP based packet-switched networks instead of
traditional circuit-switched networks.
WAP services WAP stands for Wireless Application Protocol. It was designed to implement mobile applications as flexibly
as just possible through browsers. Similarly to HTML and WWW, WML is the markup language of WAP.
WCDMA WCDMA stands for wide-band CDMA. It is an extended CDMA protocol adopted for third-generation use by
ETSI in Europe. WCDMA supports very high-speed multimedia services.
WEB services WEB services are generally considered as services that reside in the Internet and particularly in the WWW.
White’s test A common test for heteroscedasticity, developed by White (1980) and also implemented in Stata.
Wi-Fi Wi-Fi generally refers to the set of WLAN technologies (IEEE 802.11 specifications). The idea is to support wireless
highspeed local area connectivity.

123
Wilk’s lambda A test statistic frequently used in multivariate analysis of variance (MANOVA), reflecting e.g. the statistical
explanatory power of a variable.
WiMAX WiMAX is a new radio access technology, standing for Worldwide Interoperability for Microwave Access. It is
meant for implementing last-mile mobile broadband connections.

124
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Factor Affecting the choise of handset brand and sevice provider brand by customers (Preview Only)
indicates a required answer

1) Name

2) City of current residance

3) Are you Male or Female?

Male
Female

4) What is your age group?

18-21
22-25
26-30
31-40
41-50
51-60
61 or over

5) What is your current relationship status?

Single, Never Married
Boyfriend/Girlfriend
Married
Divorced
Widowed

6) What is the highest level of education you have completed?

Secondary
Higher Secondary
Graduate
Post Graduate
Above Post Graduate
Other:

7) What is your employment status?

Student
Professional
Business
Housewife/homemaker
Retired
Other:

8) Tell us your degree of agreement/disagreement

It is most likely that I would choose certain brand if I like the advertisement

I like to lead other

I often carve for excitement

I am always looking for thrill

Value added service are need of today

I like to do things differently

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Product I use shows my personality

9) How long you have been using mobile phone

Less than 1 month
More than 1 month but less than 6 months
More than 6 monrhs but less than 1 year
More than 1 year but less than 5 years
More than 5 years

10) Which Mobile handset you are using currently select all that apply
Nokia
Motorola
Sony Erricson
Samsung
LG
Other:

11) Which Mobile network service provider you are using currently select all that apply
Airtel
Vodafone
BSNL
Reliance Communication
Tata Indicom
Idea
Other:

12) What was the degree of Importance of each factors that you had considered while you were purchasing your current handset
Features

Battery Backup

Looks

Price

Brand Reliability

13) For your next purchase of mobile handset you will buy
Same brand
Try new brand
Don't know

14) For next purchase of handset you will prefer

Nokia
Motorola
Sony Erricson
Samsung
LG
Other:

15) What is the degree of Importance of each factors that you will consider while purchasing a new handset
Very important Important Not Required Less important Not at all important
Colour screen

Multimedia

Built in camera

Small size

Advance message capability

Larger memory

JAVA enabled

WAP service

Bluetooth

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New Product

Model at reduced price

Appearance and styling

Reliability

Usability

Known Brand

Reference group recommendation

16) In last five purchases (yourself,family and friends) how many times you have referred buying
None Once Twice Thrice More than three times
Nokia

Motorola

Sony Erricson

Samsung

LG

Others

17) Rate the following service providers on following attributes you have rate according to your perception that is what you think(it is not necessary that you are using
it) you have rate according to your perception that is what you think(it is not necessary that you are using it) where column 1=rank 1,column 2=rank 2,column 3=rank
3,column 4=rank 4,column 5=rank 5,column 6=rank 6
Network

Call rates
Roaming
services
Power
recharge/rate
cutters
Customized
Produc
Value added
services
Customer
care
Value for
money
Overall

18) How would you rate following mobile handset manufacturer under theses attributes? You have rate according to your perception that is what you think(it is not
necessary that you are using it) where column 1=rank 1,column 2=rank 2,column 3=rank 3,column 4=rank 4,column 5=rank 5
Documents and manuals are informative enough

User friendly

Colour variety

Style & looks

Variety of product

Way product works is consistent

Operation of this product is simple

After sales service

Value for money/Price

Overall

19) How important are the following factors while choosing for a network service provider
Strongly Agree Agree Can't say Disagree Strongly Disagree
Good network coverage

Most of your relatives are in same network

Call charges

Customer service

Value added service

Price of value added service

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20) What is the most important reason for using mobile phone choose the most appropriate option
To use in case of emergency/personal safety
Everyone I know had one
o keep in touch with friends and other social contacts
To keep in touch with parents
For business reason
For information access(phone number,email,sport,etc)
It offer good value
Privacy management(stay in touch with family,girlfriend etc:other call me on my landline
Other:

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