CHAPTER 1 INTRODUCTION

If you haven't heard of smart phones, we'd like to learn where you've been hiding all this time. Smart phones have been all over the news and chances are, you do know what they are - only you know them under a different name. Smart phones are mobile phones with computer like capabilities and internet search. What's that? Aha! Yes, you've not only heard of them, you've probably seen them as well. Packed with Internet access, email capabilities, address books, and a whole lot more, cell phones have come a long way since their first debut. Sandbox devices are tools that come pre-loaded with things like calendars, calculators, and a notepad. What differentiates them from smart phones is that users can add (download and install) additional programs to smart phones and they seemingly become good portable computers for the people who use them. That - and the ability to edit the content that sits on them - is what makes these phones "smart." Some of the more popular brand names include the most famously Apple with its iconic iPhone, Blackberry, PalmSource, Nokia, and Windows CE. Yet the craze is extending to even some unknown company names. Today, it's hard to find a cell phone that doesn't offer some sort of "smart" technology because it's in such a high demand. The convenience of having information at our immediate access is phenomenal - so much so that thousands of programmers have jumped on the opportunity to build unique applications specific to these small machines. As a result, you can find tons of games, databases, GPS systems, weather reporting programs, and even small encyclopedias on these things - each accessible not at the click of a mouse - but at a few presses of a free thumb. Of course a small keyboard is available for the text-messaging fan or for the poor fellow who can't seem to get away from the office. In the latter case, don't be surprised if you find the entire Microsoft Office suite displayed within a screen no bigger than a matchbook. Is this a phase? That's highly doubtful. The market for these devices extends from the highly technical and professional all the way to the pre-teen socialite. The product crosses all demographics and thanks to decreasing expense - it sees no economic boundaries as well. The Wikipedia encyclopedia claims that "Out of 1 billion camera phones to be shipped in 2008, Smart phones, the higher end of the market with full email support, will represent about 10% of the market or about 100 million units."

But what is it that makes smart phones so appealing? As I told earlier, smart phones give us the ability to not only carry our data around with us where ever we go, it also gives us the ability to edit that data any place - any time. In today's "reality" based generation, we're always looking for the opportunity to capture and relive a moment. And we want to share that moment with others. At best, smart phones give us the opportunity to express ourselves impromptu with entertaining results. Attempting to do the same with a bulky regular computer or laptop is to cumbersome. Even some of the smallest peripherals (digicams, digital cameras, etc.) don't give us the same opportunities that smart phones do. Being able to carry around a device for communication, creation, recording, and editing simply compliments the need for today's generation to do more and then do it, faster!

History of Smart phones

Alexander Graham Bell is the inventor of the telephone. In 1878 he made the first phone call. Telephones have not only come a long way, but may one day be completely obsolete. Motorola introduced some of the first cell phones to the public during the 1980s. These cell phones were completely unlike the cell phone of today since they were not at all compact nor by any means cost effective. Some of these cell phones cost as much as $4,000, and weighed over 2 pounds! The first smart phone was developed by IBM and BellSouth, which came out to the public in 1993. Although basic compared to todays standards Simon had a touch screen that was capable of accessing email and sending faxes. Smart phones are major extensions on normal cell phones. Cell phones can make phone calls and even some have video recording capabilities but they do not have GPS capabilities along with a whole array of other applications. Text messaging is one of the biggest forms of communication today, especially among the younger folks. Smart phones capability does not end at the Internet access, or at document editing. Smart phones also have the ability to interpret and decipher information like that from a quick response code that may be on a products packaging. Smartphone users can download QR code scanners as well as other applications so they have the ability to read the information embedded in the QR code that may take them to a website, a coupon, or even a social media site. Smart phones are advancing at a very quick pace and some have the ability to talk to you, answer questions, turn off your lights when you are not there, open doors, and even watch movies

PURPOSE OF THE STUDY

To study the factors that impact brand preferences. To study and compare different brands who launch products in same category. To identify the true intentions of buyers i.e. WHAT THEY WANT TO BUY AND WHY? To study the change in trend of people buying and using smart phones nowadays.

CONTEXT OF THE STUDY

When the smart phone industry was born, some companies like apple and Samsung put a bet on it as the main weapon to lead the post-pc era while other companies like Nokia and blackberry enjoying golden era dominance ridiculed this measure and tried to play safe by not distracting their then product cycle. Fast forwarding to the current scenario, the bet worked, every company in this consumer segment is indulged in this war and trying to combat and penetrate this market. Here, this war of the century creates an interesting context of the study where consumer preference has dynamically changed over years. Nokia and blackberry are now outdated where consumer prefer an apple or Samsung smart phone.

SIGNIFICANCE OF THE STUDY

To understand the product driven factors responsible for consumer preference for a certain brand To understand the drastic transformation of dynamics in market share of different companies To understand the consumer driven factors responsible for preference for a certain Smartphone company To analyze the future prospects of different companies

THEORITICAL FRAMEWORK

Consumer preferences are defined as the subjective (individual) tastes, as measured by utility, of various bundles of goods. They permit the consumer to rank these bundles of goods according to the levels of utility they give the consumer. Note that preferences are independent of income and prices. Ability to purchase goods does not determine a consumers likes or dislikes.

CHAPTER 2: REVIEW OF LITERATURE

Karjaluoto ,J.et al (2005).Examination of consumer buying behaviour of mobile phones and to investigate reasons underlying mobile phone change. Study reflected seven factors characterising mobile phone choice:Innovative services Design and basic properties Price Mokhli and Yaakop(2012).Study was carried amongst students in Malaysia to show influence of a product feature and suggest consumer on purchase decision on basis of their evaluation of products attributes. Personal recommendation affecting students buying behaviour is also discussed. Relationship between perception and consumers actual behaviour is focused on. Osman, A.et al (2012).This study has provided insightful overview of the smartphone trends and usage behaviours in Malaysia. Study influences of marketing strategies on the smartphone demands and usage efficiency in commercial strategies is also discussed and buying behaviour is studied. Bojei and Hoo(2001).Examining factors which influence the repurchase intention of Smart phones. Product life cycles, innovative characteristics in smart phones are discussed. Brand awareness ease of use and acceptance influencing repurchase intentions are Monitored. Aliabadi, H.et al (2012).Credibility of constituent brands and consumer co-brand preference is studied. Factors like credibility and perceived quality of constituent brands is discussed. Advertising expenditures and investment patterns are discussed. Djerv and Malla(2012).Operator offerings and deals as influential factors on brand preferences are critically evaluated. Attachment respective to smart phones is a direct consequence of functional and emotional insights. It opens up for possibility to research a sight of locus from marketing efforts targeted with the physical individual at centre, to virtually connected individual. Lowdermilk(1998).Co-relation between preference of brands and perceived usability of products is explored. Emotional relationship with brands affects consumer perceptions of alternative products and services. Physiological effect on use of product is determined. Ferreira, A. et al (2003).Marketing and mobile phone manufacturers study user needs,

focusing on design of new handsets and services. Using automatic logging, in which software automatically captures user actions for later analysis and data mining for strategic planning. Bdker, G.et al (1975).This study uses TCV to understand user experience of smartphones over time as perceived by its users. This paper compliments technology adoption research by demonstrating consumer research, specifically the TCVs. Bojei and Hoo(2005).There is a significant and positive relationship between brand equity dimensions and re-purchases intention, current use and re-purchases intention; the measure of return of marketing investment have been discovered.