A STUDY

ON

CONSUMER TRIAL PROBABILITY OF NOKIA SOLUTIONS

AT NOKIA PRIORITY DEALER IN SPENCER PLAZA,
CHENNAI

The report is submitted as partial fulfillment of the requirement of PGDM

program of ITM Business School, Siruseri, Chennai

By

S M ARUN SENTHIL KUMAR

(CH2009PGDM15F79)

Institute for technology and Management Business School

Siruseri, Chennai

July 2010

i
ii
 ACKNOWLEDGEMENTS

My sincere thanks to H. Kamal Kanooga, Store Manager Nokia Priority Dealer Spencer
plaza, for having given me an opportunity to work with the organization and guiding me
through the entire project. He was instrumental in orienting and training me for the internship
program.

I would like to thank the entire Nokia Priority Dealer Staffs for having helped me in making
this internship an enriching learning experience. This project has indeed given me a lot of
exposure in terms of handling different kinds of customer.

I sincerely thank Dr.G.K.Sharma, Director, ITM Business School, Chennai for making this
project a part of the curriculum.

Many thanks to Prof. V.S KUMAR, PGP Chairman, ITM Business School, Chennai for his
valuable guidance and kind patronage to make this project a great success.

Many thanks to Prof Ravi Mohan, Faculty guide, ITM Business School, Chennai for his
valuable guidance and kind patronage to make this project a great success.

Last, but not the least, I would like to thank my classmates and friends for the timely support
and help rendered to me when required.

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 TABLE OF CONTENTS

CHAPTER NO TITLE PAGE

COVER AND TITLE PAGE i

CERTIFICATE FROM SIP COMPANY ii

ACKNOWLEDGEMENTS iii

ABSTRACT vii

EXECUTIVE SUMMARY viii

LIST OF ILLUSTRATIONS ix

`1 INTRODUCTION 1

1.1Brief Introduction 1

1.2 Objective 2

1.3 Methodology 2

1.4 Limitations 2

1.5 Consumer buying behavior in mobile market 3

2 ORGANIZATION DESCRIPTION 4

2.1 Product 4

2.1.1 Nokia Handsets 4

2.1.2 Nokia services 5

2.1.3 Nokia gears 5

2.2 Pricing 5

2.3 Place 6

iv
CHAPTER NO TITLE PAGE

2.4 Promotion 6

2.5 People 7

2.6 Process 7

2.7 Physical Evidence 7

2.7.1 Visual Merchandise 7

2.7.1.1 Benefits of VM 8

2.8 Principle 8

2.9 Types of customer at Nokia Priority Dealer 9

2.10 Buying cycle of the consumers in NPD 10

2.11 Market and Competitors 11

3 PROJECT DESCRIPTION 12

3.1 Project proposed 12

3.2 Marketing Research 12

3.2.1 Research Design 12

3.2.2 Hypothesis 13

3.3 Measurement and scaling 13

3.3.1 Juster purchase probability scale 13

3.4 Sampling and survey 14

3.5 Procedure 14

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CHAPTER NO TITLE PAGE

4 RESEARCH FINDINGS 15

4.1 Project survey findings 15

4.2 Research findings 24

4.2.1 Probability of purchase 24

4.2.2 t-Test 25
4.2.3 Correlation 27

5 CONCLUSION AND RECOMMENDATIONS 28

5.1 Survey Inference 28

5.2 Research Inference 30

ANNEXURE

Survey Questionnaire

REFERENCES

vi
 ABSTRACT

Mobile phone market in India is going through major changes. Key players are losing market
share while new and young companies, mostly from Asian countries, are coming to the
market. At the same time the market is slowly expanding when people are buying more
phones than ever. The whole process of buying mobile phones has changed in the last few
years. Nokia is still the largest mobile phone company in the world, but its long-term
dominance is now challenged more than ever.

The brand name of the product itself is an important attribute. Brands have
both functional (product-related) and symbolic dimensions. On the product related benefit
side, consumers evaluate product performance based on its capabilities, usage effectiveness,
and value for money and reliability. The purchase and consumption of products is increasing
regarded by consumers as an indirect way of communication to improve their self image and
deliver certain impressions to other people in their environment Therefore the brand name
benefits perceived by consumers is highly interrelated to the product-based benefits. Big
brand means a better image and a better product.

This Project is carried out in Nokia priority store to understand the consumer
trial probability in the particular store. It is a place where buyers buy products whether it’s
planned or unplanned purchase. The purchasing probability directly depends on the income
of the person, and indirectly on how many times he or she visits the store to buy products.
This study attempts to explore the association exists between the variables involved in
purchase by tapping the responses of 60 respondents who visits the store in Spencer plaza
with the motive of buying a Nokia solution. It is true that consumer’s buying patterns is based
on various aspects like price, product, promotion and place. This study tries to report new
evidences in the field of consumer buying behavior pertaining to the Nokia solutions at Nokia
Priority Dealer in Chennai. Price is considered as the foremost factor that influences the
purchase decision. This study is carried out to determine how price influences the probability
of purchase of Nokia Solutions at Nokia Priority store in Spencer plaza, Chennai.

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 EXECUTIVE SUMMARY

This study tries to measure the Consumer trial probability of Nokia solutions at Nokia
priority dealer. Purchase is influenced by a combination of familiarity, word-of-mouth,
advertising, and brand image, income of the consumer and many.

The purchase probability is measured using a 11 point scale called Juster

scale. On an average the walk in of the store per month is 600 and it is considered as the
population. So 60 respondents are surveyed. The research carried out is a conclusive
descriptive research and hypothesis is formulated to determine whether the purchase
probability is dependent on price factor and service provided. T-test is done to check the
hypothesis.

The objective of the project is to find the key drivers of consumer trial probability and it is
accomplished by using Pearson’s correlation. The survey findings provide a wholesome
information about the store.

SPSS 17 is used to analyse the primary data collected.

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 LIST OF ILLUSTRATIONS

ILLUSTRATION NO ILLUSTRATION PAGE NO

2.1 Nokia’s Retail Solutions Selling principle 8

4.1 Brand previously owned 15

4.2 Reason for purchasing Nokia 16

4.3 Period of mobile phone use 17

4.4 Store's Atmosphere 18

4.5 Price of Mobile phones in the store 19

4.6 Sales executive's contribution 20

4.7 Store Services 21

4.8 Stores previously visited 22

4.9 Reason for Choosing NPD 23

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 CHAPTER 1

INTRODUCTION

1.1 Brief Introduction

Consumer behavior is defined as the actions a person takes in purchasing

and using products and services, including the mental and social processes that precede and
follow these actions.
The behavioral sciences help answer questions such as:
Why people choose one product or brand over another,
How they make these choices, and
How companies use this knowledge to provide value to consumers

One of the major aims of building brand trust is to achieve a

sustainable competitive advantage and thereby enhance a business performance. Many
researchers have conducted a general consensus-that brand trust is established through a
combination of familiarity, security, privacy, word-of-mouth, advertising, and brand image. It
may be argued that brand trust is an underlying dimension of brand loyalty , the latter is
composed of such a vast number of components that it would be futile to consider it only in
general terms. Indeed, brand trust is extremely important for increasing customers’ loyalty
towards brands.
The earlier research shows that brand trust is not built on one or two components but is
established by the interrelationships between complex components. By carefully investigating
these variables in formulating marketing strategies, marketers can cultivate brand loyalty and
gain a formidable competitive edge.

Brand familiarity is a continuous variable that reflects a consumer’s level of

direct and indirect experiences with a product. Familiarity with a company or brand generates
higher trust, unless a person has a negative perception of a brand.
In the present study, we define brand trust as the willingness of the average consumer to rely
on the ability of the brand to perform its stated function.

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 At a basic level, brand trust is simply the trust a consumer has in that specific brand.
Brand trust recognizes that brand value can be created and developed with management of
some aspects that go beyond consumer’s satisfaction with functional performance of the
product and its attributes.
WOM has been shown to influence awareness, expectations, perceptions, attitudes,
behavioral intentions and behavior. In particular, a further determinant of brand trust is WOM
communication.

Consumers tend to remember best the last experience (the “recency

effect”): thus one positive experience may be sufficient to alter perceptions of more than one
preceding negative experience, and vice versa.Relationship depends on a consumer’s
experience. Similarly, brand trust can be related to experience. In the model of “trusting
behavior”, experience is considered as an important variable as it plays a role in trust by
making it possible to compare the realities of the firm with preconceived expectations.

1.2 Objective

• To determine the probability of purchase of Nokia solutions at Nokia Priority Dealer

• To identify key drivers of customer trial probability of Nokia solutions at Nokia
Priority Dealer

1.3 Methodology

This is a descriptive type of research. Survey method is adopted using

questionnaires with appropriate scaling techniques. This study answers the answers the
question what kind of, how, when, where, why the consumer behavior changes. The type of
data collected will be primary one.

1.4 Limitations

1. The study is limited only to a particular store.

2. This study should be carried repeatedly over a period of 6 months.

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1.5 Consumer buying behavior in mobile market

In recent years, the adoption of the mobile phones has been exceptionally rapid in many
parts of the world especially in India. Earlier people were happy with a mobile phone which
provided basic features like sending SMS's and outgoing calls and incoming calls, but today, even
though there are phones with internet, music, touch screen and everything people are always on a
lookout for better technology. The demands are constantly increasing and the mobile market is a
booming segment.

India has been the hub of mobile activity. No other market in the world has witnessed the same
explosive growth. It's incredible how fast and how vast the India mobile phone market has grown.
And it sees absolutely no sign of slowdown. The Nokia's, Samsung's, and the LG's of the world have
made mobiles reach every nook and corner of India.

What underscores every India made mobile phone is the value for money. Price and properties were
regarded as the most important motives affecting the decision to purchase current mobile phone
model.

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 CHAPTER 2

ORGANISTION DESCRIPTION

Munoth industries’ main business is sale of Nokia solutions as a

franchisee of Nokia. Munoth industries has their Nokia priority stores at 4 different locations
namely Express Avenue, Spencer Plaza, Purasaiwalkam, and Thyagaraya Nagar. Munoth
Industries is head quartered at Munoth Centre, Triplicane. Corporate sale is managed at the
Head Office.

Retail sales also known as RSS (Retail Selling Solutions) of Nokia solutions is the main
business at the retail stores. Nokia solutions include Nokia handsets, Nokia services, and
Nokia gears.

The 8P’s of marketing of Nokia solutions at Nokia priority dealer

in Spencer plaza by Munoth Industries provides a wholesome idea of the business of
the company.

2.1. Product

2.1.1 Nokia handsets

The primary product that is dealt in this store is Nokia handsets. These mobiles are classified
on the basis of features.

1. The mobiles are classified as basic mobiles which does not have any advanced technical
features like Bluetooth technology or internet connections.

2. The next versions of mobiles are the mobile which has features like expandable memory
options, Bluetooth services, MP3 enabled formats and other basic features of a mobile
phones. These phones are fast moving products in the store and it is widely distributed. In
these category of mobile it has been further classified as classic and Xpress music

3. Then there are touch mobile where there are no keypads, and the mobile is operated by
using touch technology. These mobiles have other advanced technological features like

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Bluetooth, GPS (Global positioning system), various megapixel cameras, wi-fi technology.
These mobiles are mostly preferred by youngsters.

4. Nokia have also come up with few mobile phones for professional usage like mails and
internet purpose. These phones come under the category of QWERTY key pads. These
mobiles are mostly preferred by professionals who mail often.

5. Nokia have also introduced higher end models which has the feature of both touch and
qwerty key pads. These models are used for multitasking and for various multimedia options.
These products are priced high as they have all advanced and latest features in mobile
technology.

2.1.2 Nokia services

Nokia were basically selling only wireless devices, but due to increase in competition
globally they have come up with various solution services to enable the consumer to be with
Nokia products.

Nokia have come up with various services which would enable the consumers to
use various applications with the mobile. Nokia is trying to move from product experience to
service experience and they offer various services like music downloads, GPS, messaging
services and other internet based services.

2.1.3 Nokia Gears/Accessories

Accessories play a substantial role in revenue generation. Nokia gears

include accessories like battery, ordinary charger, car charger, and blue tooth device.

2.2 Pricing

The amount of money charged for a product or service or the sum of the values
that consumers exchange for the benefits of having or using the product or service is the
price. All for-profit organizations and many nonprofit organizations set prices on their goods
or services. Whether the price is called rent (for an apartment), tuition fee (for education),
fare (for travel), or interest (for borrowed money), the concept is the same. Throughout most
of history, prices were set by negotiation between buyers and sellers.
In this store the price of mobile phones are not fixed by Nokia or by its distributors, Munoth
industries set prices for the mobiles based on their financial targets. They generally price the

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mobiles with the margin of 4% which is on the higher side compared to their competitors.
This acts as a major disadvantage to the store as mobile market is a price sensitive one. Even
a small margin of difference in prices would lead to loss of some valuable consumers. But
these prices are made flexible only to their regular consumers. Nokia also recommends the
price for Nokia solutions sold at Nokia Priority store. Franchisee are allowed to price the
product 4% from the procurement price of the distributor and this applies only for handsets.
Accessories are sold at maximum retail price printed in the package. Nokia updates the price
periodically.

2.3 Place

Munoth industries has their Nokia priority stores at 4 different locations

namely Express Avenue, Spencer Plaza, Purasaiwalkam, and Thyagaraya Nagar.
Munoth Industries is head quartered at Munoth Centre, Triplicane. Corporate sale is
managed at the Head Office. Priority store at which the project is undertaken is situated
in the second floor, III phase of Spencer plaza.

2.4 Promotion

Promotion is mainly through Word of Mouth and the company also issues
discount coupons to attract customers. Promotional activities are limited by Nokia which
pulls the franchisee from involving in free rein promotion. Promotion is the communication
link between sellers and buyers for the purpose of influencing, informing, or persuading a
potential buyer's purchasing decision. The specification of five elements creates
a promotional mix or promotional plan. These elements are personal selling, advertising,
sales promotion, direct marketing, and publicity. A promotional mix specifies how much
attention to pay to each of the five subcategories, and how much money to budget for each. A
promotional plan can have a wide range of objectives, including: sales increases, new product
acceptance, creation of brand equity, positioning, competitive retaliations, or creation of
a corporate image. Fundamentally, however there are three basic objectives of promotion.
They are:

1.) To present information to consumers as well as others

2.) To increase the demand

3.) To differentiate a product.

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Even though Munoth industry does not deal on promotion activities directly, Nokia deals
with a wide range of promotion activities for the store.

Munoth Industries and Nokia have placed few sales men to deal with personal selling.
Advertising the store is not done by Munoth industries, but Nokia advertises their brand in
news papers, television, internet and other mediums. Nokia has launched new sales
promotion activities like 0% interest on EMIs, unlimited music downloads etc as a sales
promotion activity.

2.5 People

Company employs three permanent staff including store manager,

assistant store manager and sales executive. Nokia employs a sales promoter and a sales
solution specialist through their exclusive consultancy called Chakrath consultants.
Everyone is responsible for sale of Nokia solutions.

2.6 Process

Company procures Nokia solutions from the distributor Hello

Telecom. The purchase and sales are updated to the Head Office. Required stock is
ordered by the store manager. Sale details and cash are submitted to the Head Office by
the next day.

2.7 Physical evidence

The store walls are branded by posters and the store is well lighted.
Dummies of hand sets are placed with high visibility for the customers. Store atmosphere
is maintained with the help of air coolers and fans. A Desktop is placed for service
activation purposes and to know about the Nokia solutions. Sign boards for new launches
are placed both inside and outside the stores. The branding activities of the store are
managed by a third party called PPMS retail.

2.7.1 Visual Merchandise

Visual merchandising is the activity of promoting the sale of goods, especially by their
presentation in retail outlets. This includes combining products, environments, and spaces
into a stimulating and engaging display to encourage the sale of a product or service. It has
become such an important element in retailing that a team effort involving the senior

xvi
management, architects, merchandising managers, buyers, the visual merchandising director,
designers, and staff is needed. The catch of visual displays and arranging merchandise
assortment with a store is to improve the layout and presentation with the key objective to
increase traffic of consumers and sales.

2.7.1.1 Benefits of VM:

Enhances store’s visual image

Creates visual signature for consumers to find the product they want.
Portrays a particular brand and its product in clear manner for the customer
It gives a better shopping experience for consumers
It gives clear live experiences and focused solutions to consumers
It gives a clear base for new product developments.

The Visual merchandising can be done for following places in the store:

Store displays board

Store front
Store floor
Store checkout points
Store billing points

2.8 Principle

Figure 2.1 Nokia’s Retail Solutions Selling principle

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Connect: It is the process of the sales executive to connect to the consumers when they enter
the store. According Nokia’s standard this process should be made within 30 seconds from
the time of customer’s entry

Explore: This is the very important phase of the sale. The sales executive should understand
and explore the customer needs. If the sales executive can explore the need of the customer
he can easily finish a call (sale). This process is the most difficult of all. Many sales men fail
in this process when they cannot finish a call. This process should be completed within 2
mins from the time of connection

Create a WOW experience: The consumers should feel ‘WOW’ in this process. The sales
executive should make sure that he has created an amazing experience with the consumer
based on his need. When consumer feel this experience there is no doubt the customer would
buy the product immediately with no hesitation. If the sales executive is confident and skill
full he can complete this process easily in 3 min from the time of exploring the needs.

Finish the sale: When the consumer is satisfied with the experience, he immediately looks
for various services from the sales executive. If sales executive can provide various services
and solutions, it would not only finish the sale but it will create a trust on the store if not on
the sales executive himself.

Create an everlasting relationship: This process is very important for the future growth of
any retail store. The call should create an everlasting relationship with the consumers, which
would create brand loyalty, repeat purchases and WOM. This enhances sales for the store and
for the brand.

2.9 Types of customer at Nokia Priority Dealer:

There are three types of customers who visit the store. These customers are
classified based on their needs and their characteristics that they show in the store

Knowledgeable customer:

1. Well informed

2. Is hands on

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 3. Is to the point

4. Has specified and précised queries

5. Can be impatient if conversation goes out of context

6. Expects to talk to a person with same level of knowledge or higher

Timid Customer:

1. Is generally shy/quite by nature

2. Is not generally technology savvy

3. Needs a lot of assurance

4. Believes in written material than words

5. Is difficult to convince just by talking

Irate Customers

1. Not in a good mood

2. Is very impatient

3. Needs immediate attention

4. Needs immediate resolution

5. Had a bad exposure in the same context earlier as well

2.10 Buying cycle of the consumers in NPD:

See, Stop, Step In: It drives traffic in the store. Visual merchandising play very vital role in
this process.

Wonder, Approach and Spot: This is where customers decide whether to buy in a particular
store or not.

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Ask , Interact and Experience: In this process customer buying cycle may stop when his
needs are not satisfied with the products available in the particular retail store. Sales
executive’s contribution is huge in this stage.

Purchase Decision and Set up: In this stage the customer would be created an experience in
the retail outlet about the produce which would set up in buying the product or chose
the brand of his choice.

Pay, Leave, Talk about and Come back: In this stage the customers would have finished
purchasing the product. This stage is basically contributed by the after sales services
rendered by the store or the brand which the customers buy. This would create brand
loyalty and trust for the customers. This creates a long term relationship with the
brand and the retail outlet.

2.11 Market and Competitors

As there is only one brand that is sold in the store, there is no internal
competition for Nokia mobiles in the store. But externally the major competitors to the store
are classified as follows:

• Other authorized retail showrooms selling cell phones

• Nokia concept stores and other Nokia Priority dealers

• Unauthorized mobile retails outlets

• Grey market outlets

• Second hand dealers

• Other brand show rooms

These competitors play a vital role in consumer purchasing behavior of Nokia mobiles in
Nokia priority Store.

The factors that these competitors affect are

1. Price

2. Quality

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 3. Brand

4. Promotion

5. Place

6. Brand loyalty.

CHAPTER 3

PROJECT DESCRIPTION

3.1 Project proposed

Study of probability of customer buying a Nokia solution at Nokia Priority

Dealer at Spencer plaza and to identify the key factors responsible for customer trial
purchase.

3.2 Marketing research

The marketing research conducted is a problem solving research which

includes the pricing problem and service. The research is a quantitative research with
descriptive study approach which includes information of who, what, when, where, and
how.

3.2.1 Research design

Descriptive research:

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 Objective: To describe market characteristics or functions.

Characteristics: Marked by prior formulation of hypothesis.

Pre planned and structured design.

Conclusive research design

Objective: To test specific hypothesis and examine relationship

Characteristics: Information needed is clearly defined.

Sample is large and representative.

Data analysis is quantitative.

Outcome: conclusive results and findings used as input to decision making.

Single cross-sectional designs- A cross-sectional design in which one sample of

respondent is drawn from the target population and information is obtained from this
sample once. Also know as sample survey research design.

3.2.2 Hypothesis

The hypothesis is formulated as whether the probability of purchase is

dependent or independent of two factors namely consumer perception of the brand and
value for money.

Null hypothesis: the probability of purchase is independent of price factor and service
provided.

Alternate hypothesis: the probability of purchase is dependent on price factor and service
provided.

3.3 Measurement and Scaling

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 Ordinal scale is used for the purpose of measurement. A ranking scale in
which numbers are assigned to objects to indicate the relative extent to which the object
possess some characteristic is called an ordinal scale.

3.3.1 Juster Purchase Probability Scale

10 Certain, practically certain (99 in 100)

9 Almost sure (9 in 10)
8 Very probable (8 in 10)
7 Probable (7 in 10)
6 Good possibility (6 in 10)
5 Fairly good possibility (5 in 10)
4 Fair possibility (4 in 10)
3 Some possibility (3 in 10)
2 Slight possibility (2 in 10)
1 Very slight possibility (1 in 10)
0 No chance, almost no chance (1 in 100)

The Juster scale has been used to predict purchase rates for a range of
items, in different product classes (durables, services and fast moving consumer goods), over
various time periods. In all cases, the Juster Scale has proved to be a better predictor than
purchase intention scales, although the accuracy of prediction has varied considerably for
different types of goods or services.

3.4 Sampling and Survey

The population is the number of customers who walk-in to the Nokia Priority
Dealer per month which is approximately 600 on an average.

Sample decided is a non-probability and convenience sample and the size is 10% of the
population.

3.5 Procedure

xxiii
 The data was collected by means of a well developed scale according to the
needs of the current study. All of the questionnaires were distributed among the consumers in
the store. Total of 60 questionnaires were distributed and data was collected. The data was
collected in a time frame of 20 days and then responses were fed into the Statistical Package
for Social Sciences (SPSS) version 17 for analysis and evaluation. Multiple regression
analysis was used as a statistical test to determine the degree of relationship between the
variables involved in this study

CHAPTER 4

RESEARCH FINDINGS

4.1 Project survey findings

1. Which mobile brand did u own before?*

xxiv
 Nokia 3 48%
0
Samsung 9 15%
Sony erricson 7 11%
LG 2 3%
Motrola 5 8%
Others 7 11%

FIGURE 4.1 Brand previously owned

Inference: From the above data, 30 respondents who have come to the store owned
Nokia mobile phones previously.

2 What attracted to buy Nokia?

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 Brand Name 44 71%
TV Commercials 2 3%
Bill Boards 1 2%
Word of Mouth 9 15%
Features of the mobile 47 76%

People may select more than one checkbox, so percentages may add up to more than 100%

FIGURE 4.2 Reason for purchasing Nokia

Inference: Almost 23 respondents have said that only the brand name and features of
the mobile have attracted them to purchase nokia mobiles.

3 For how long have you been using mobile phones?

xxvi
 0-1 year 4 7%
2-4 years 15 25%
5 or more 40 68%

FIGURE 4.3 Period of mobile phone use

Inference: 68% of the respondents who buy in that store have been using the mobile
phones for more than five years

4 How will u rate this store's atmosphere?

xxvii
 1- Very bad 0 0%
2 Not 2 3%
satisfactory
3 126%
Normal
6
4 353%
Satisfactory
3
5- Very good 915%

FIGURE 4.4 Store’s atmosphere

xxviii
Inference: 42 respondents felt that the store’s atmosphere was satisfactory.

5 How do you rate the price of mobile phone in this store?

1- very low 0 0%
2 Low 1 2%
3 Medium 33 53%
4 High 23 37%
5- very high 3 5%

xxix
 FIGURE 4.5 Price of Mobile phones in the store

Inference: 59 out of 60 respondents have felt that the price of the mobile phones are on
the higher side.

6 How do you rate the sales executive's contribution towards your buying process of
the phone?

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 1- very low 0 0%
2 Low 3 5%
3 Medium 8 13%
4 High 33 53%
5- very high 16 26%

FIGURE 4.6 Sales executive's contribution

xxxi
Inference: 49 respondents have felt that the sales executive in the store have contributed
highly towards their buying process. This clearly shows that the sales executives have
given clear idea to consumers on which mobile would chose them appropriately.

7 How do you rate the services rendered in this store?

1- very bad 0 0%
2 Not satisfactory 0 0%
3 Ok 915%
4 Satisfactory 3760%
5- very good 1321%

FIGURE 4.7 Store services

xxxii
Inference: 50 respondents have felt satisfactory on the services rendered in this store.
The services may be in the form of registration, activation or providing demonstrations
of the mobile to the consumers.

8 Stores that you have visited to buy before

xxxiii
 FIGURE 4.8 Stores previously visited

Inference: 68% of the respondents have visited other retail outlets and multi-brand
showrooms before they have decided to purchase the mobile in Nokia priority dealer.

9 Why did you choose this store to buy your mobile phone?

FIGURE4.9Reason for choosing NPD

Detailed explanation about the product 1 31%

9
Additional warranty provided 1 23%

xxxiv
 4
Good services and activation 2 34%
1
Brand name and reliability 4 79%
9
Other 5 8%
People may select more than one checkbox, so percentages may add up to more than 100%

Inference: 30 out of 60 respondents have said that the brand name is the only major
reason why they have chosen this store to buy the mobile phones

4.2 Research findings

4.2.1 Probability of purchase

Statistics
Will you prefer purchasing at nokia
priority dealer in spencer plaza
Chennai
N Valid 60
Missing 0

Will you prefer purchasing at nokia priority dealer in spencer plaza Chennai
Frequency Percent Valid Percent Cumulative Percent
Valid 3 1 1.7 1.7 1.7
4 4 6.7 6.7 8.3
5 12 20.0 20.0 28.3
6 9 15.0 15.0 43.3
7 13 21.7 21.7 65.0
8 10 16.7 16.7 81.7
9 7 11.7 11.7 93.3
10 4 6.7 6.7 100.0
Total 60 100.0 100.0

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4.2.2 t-Test

Paired Samples Statistics

Mean N Std. Deviation Std. Error Mean
Pair 1 how do you rate the price of 3.47 60 .623 .080
mobile phone in this store
Will you prefer purchasing at 6.78 60 1.748 .226
nokia priority dealer in spencer
plaza Chennai
Pair 2 How do you rate the services 4.07 59 .612 .080
rendered in this store
Will you prefer purchasing at 6.76 59 1.755 .229
nokia priority dealer in spencer
plaza Chennai

Paired Samples Correlations

N Correlation Sig.
Pair 1 how do you rate the price of 60 .141 .282
mobile phone in this store &
Will you prefer purchasing at
nokia priority dealer in spencer
plaza Chennai
Pair 2 How do you rate the services 59 .384 .003
rendered in this store & Will
you prefer purchasing at nokia
priority dealer in spencer plaza
Chennai

xxxvi
 Paired Samples Test
Paired Differences
95% Confidence Interval
of the Difference
Std. Std. Error
Mean Deviation Mean Lower Upper t Df Sig. (2-tailed)
Pair 1 how do you rate the -3.317 1.771 .229 -3.774 -2.859 -14.509 59 .000
price of mobile
phone in this store -
Will you prefer
purchasing at nokia
priority dealer in
spencer plaza
Chennai
Pair 2 How do you rate -2.695 1.622 .211 -3.117 -2.272 -12.766 58 .000
the services
rendered in this
store - Will you
prefer purchasing at
nokia priority
dealer in spencer
plaza Chennai

xxxvii
4.2.3 Correlation

Correlations
Will you prefer How do you how do you how do you rate the
purchasing at rate the rate the price sales executive's
nokia priority services of mobile contribution towards
dealer in spencer rendered in phone in this your buying process
plaza Chennai this store store of the phone
**
Will you prefer purchasing at Pearson Correlation 1 .384 .141 .142
nokia priority dealer in spencer Sig. (2-tailed) .003 .282 .279
plaza Chennai N 60 59 60 60
How do you rate the services Pearson Correlation .384** 1 .320* .425**
rendered in this store Sig. (2-tailed) .003 .014 .001
N 59 59 59 59
*
how do you rate the price of Pearson Correlation .141 .320 1 .316*
mobile phone in this store Sig. (2-tailed) .282 .014 .014
N 60 59 60 60
** *
how do you rate the sales Pearson Correlation .142 .425 .316 1
executive's contribution towards Sig. (2-tailed) .279 .001 .014
your buying process of the N 60 59 60 60
phone
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).

xxxviii
 CHAPTER 5

CONCLUSION AND RECOMMENDATIONS

5.1 Survey inferences

This survey has been conducted in NPD Spencer plaza to understand the consumer buying
behavior. This project has given a clear view on how the consumer perception changes on
buying a Nokia mobile in the store. From the above data and information we can derive
various conclusions.

1. Most of the consumers owned a Nokia mobile phone before. Most of them had visited
the store for the first time. These consumers after using the mobile phone for more
than 2 or 5 years they have been loyal to the brand. This clearly indicates that if the
consumers are satisfied with a particular product then, they go for repeat purchase of
that particular brand.

2. The customer when they become loyal to a particular brand they prefer only the
showrooms or stores which is under that particular brand. Thus brand trust and brand
loyalty are directly related towards their decision of place to buy the product.

3. Though there are many competitors for Nokia, their brand value never decreased at a
large scale. Many customer who owned other branded mobiles due to the brand name
and the features of the mobile.

4. 23 respondents have shifted to Nokia from other brands only because of the brand
name and the features. Not only the brand name that attracts the consumers. Even the
features of the mobile and user friendliness of Nokia mobiles.

5. Most of the consumers or respondents were using mobile more than 5 years. The
brand and the trust of the store have created these consumers to buy only in NPD.
These consumers would have faced lots of problem with their activation, services,
solutions and other phone related services in other retail outlets and multi brand
showrooms

6. The Store’s atmosphere is pretty much satisfactory to consumers. This plays huge
role in the buying process of the cell phones. During my observation many consumers
 were not coming to purchase at the time of mal-function of the air conditioner. Many
consumers have given complaints of mal-function of the air conditioner.

7. Almost 59 respondents have felt that the price in this particular store has been on the
higher side. Price plays a huge role in this mobile phone market. I also observed that
when the price were reduced in the store to be competitive enough, there has been
increase in sales.

8. In these kind of stores sales executive’s contribution play a very major role in the
buying process. In this store sales executives explain each and every product in detail.
They become the ultimate decision makers for the consumers to choose which product
is suitable for them. According to this survey many respondents felt that the sales
executive have contributed more to their buying process.

9. Most of the respondents have felt satisfied with the service rendered in this store. This
is a very good sign for Nokia as they are moving towards from product to services.
Services are given first preference which would satisfy the customer in a great deal.

10. 68% of the respondents have visited other stores to buy cell phones before they had
visited the NPD. Most of these consumers have said that sales executive and services
played major role in their buying process.

11. Most of the respondents have said that the brand name and reliability are the major
reason why they chose this store to buy mobile phones. Most of the respondents have
visited other retail outlets before they had come to buy the cell phone.

This clearly indicates that the brand image would bring consumers to try the product. But it
just brings the consumers into the store. The major contributors on consumers buying these
mobiles are sales executive’s contribution, price and the service which other retail outlets
lack. The major concern for the store is the Price. In this price sensitive market even a 1%
variation in price would lead to lose of consumers. The other major threat identified from the
observation during the project is difference of prices within the NPD itself. This creates a
doubt among consumers on the reliability and brand image of the store.
5.2 Research Inferences

The probability of purchase of Nokia solutions at Nokia priority dealer at Spencer

plaza is calculated by considering the responses of last 3 points of the scale. The average
shows that for every 100 walk in, the probability that a customer buys a Nokia solution is
0.35

With t-test at 95% confidence level, the two-tailed paired sample significance is less than .
0005, hence null hypothesis is rejected and alternate hypothesis is accepted. Hence the
probability of purchase is dependent on price factor and service provided.

From pearson’s correlation matrix it is evident that only the service provided at the
store is the key driver of consumer trial probability at Nokia priority dealer since Correlation
is significant at the 0.01 level (2-tailed).

The results of this research study clearly indicate that there exists a strong association
between price and service provided with the buying behavior including the attitudinal as well
as behavioral aspects of the consumers.

RECOMMEDATIONS

1 The company should professionalize its staff. Somehow the customers have occasionally
suggested this.
2 The company should try to maintain the stock of mobile phones properly because the
customer has to go with the product when they arrive at the store.
3 Customers are more price conscious. They are on a lookout for cell phones with more
features at lower rates. So the store can consider moderating the price.
4 The launch of a new mobile is first done at NPD stores. This period is known as ‘window
period’. However the store lacks in promotion, advertising and does not offer
 complimentary gifts. So the store loses the first mover advantage. The store must look
into this problem as this would help them effectively improve their sales.

ANNEXURE

Survey Questionnaire

Which brand did u own before?*

• Nokia

• Samsung

• Sony erricson

• Motrola

• Others

What attracted to buy Nokia?

• Brand Name

• TV Commercials

• Bill Boards

• Word of Mouth

• Features of the mobile

How long are you using mobile phones?

• 0-1 year

• 2-4 years

• 5 or more
How will u rate the store's atmosphere ?

1 2 3 4 5
very
Very good
bad

How do you rate the price of mobile phone in this store ?

1 2 3 4 5
very low very high

How do you rate the sales executive's contribution towards your buying process of the phone

1 2 3 4 5
very low very high

How do you rate the services rendered in this store

1 2 3 4 5
very low very high

Stores that you have visited to buy before

• Only Nokia priority dealer

• Other multi brand show rooms

• Other retail outlets

• Other:
Why did you choose this store to buy

• detailed explanation about the product

• additional warranty provided

• Good services and activation

• Brand name and reliablity

• Other:

How do you think this store can be improved *

Will you prefer purchasing at Nokia priority dealer in spencer plaza Chennai *

0 1 2 3 4 5 6 7 8 9 10
No chance, almost no Certain, practically
chance certain
 REFERENCES

Available from: http://www.solostream.com/blog/small-business-life/5-elements-of-a-sales-

relationship/

Available from: http://nokia.co.in/

Available from: http://wikepedia.com/

Available from: http://www.scribd.com/doc/12778357/Consumer-Behaviour-towards-

Telecom-Products/

Available from: http://www.scribd.com/doc/31959991/Introduction-to-Consumer-Behaviour/

Available from: http://www.scribd.com/