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Customer satisfaction level on Smart phone

Business Research Project Report


On
“Customer satisfaction level on Smartphones”

Submitted to:- Submitted by:-


Prof. S. Bisaliah Akshata Hegde

Ashish Sarda

Gokul DR

Manasa B

Meghana SH

Rithin R

Siddesh GR

Sonal G Kanakagiri

Tejus PM

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Customer satisfaction level on Smart phone

Acknowledgements

The success and final outcome of this project required a lot of guidance and assistance from many
people and we are extremely privileged to have got this all along the completion of our project. All that we
have done is only due to such supervision and assistance and I would not forget to thank them.

We owe our deep gratitude to our project guide Prof. S.BISALIAH, who took keen interest on our project
work and guided us all along, till the completion of our project work by providing all the necessary
information related to it.

I heartily thank our internal project guide, Prof. LALTIH ACHOTH for his guidance and suggestions
during this project work.

I am thankful to and fortunate enough to get constant encouragement, support and guidance from all
Teaching staffs which helped us in successfully completing our project work. Also, I would like to extend
our sincere esteems to Dr. NS Viswanath (Principal and Director, MPBIM) for their timely support.

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Customer satisfaction level on Smart phone

CONTENTS
1. Executive Summary………………………………………………………4
2. Research Objectives…………………………………………………….. 4
3. Major Research Findings…………………………………………………4
4. Recommendations………………………………………………………...5
5. Chapter 1- Introduction……………………………………………………6
6. Chapter 2- Literature Survey……………………………………………..7
7. Chapter 3- Statement of the problem…………………………………....8
8. Chapter 4- Research Objectives……………………………………......9
9. Chapter 5- Research Methodology…………………………………….10
 Type of research
 Research Method
 Research technique
 Data collection sources
 Data gathering Procedure
 Sampling Techniques
 Demographic Profile

10.Chapter 6-Hypothesis………………………………………………………13

11.Chapter 7-Research limitation…………………………………………….14

12.Chapter 8-Data analysis & Inference……………………………………..15

13.Chapter 9- Major research findings……………………………………….23

 Consumer Surplus……………………………………………………….23

14.Chapter 10- Conclusion and Recommendations………………………..24

15.Annexure…………………………………………………………………….25

16.Reference…………………………………………………………………...36

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Customer satisfaction level on Smart phone

EXECUTIVE SUMMARY

Today, communication is one of the gifts of man. It acts as a repository of wisdom, a propeller for
the advancement of knowledge and the telescope to view the vision of the future. Therefore
communication is linchpin of a business. The research focuses on customers’ satisfaction towards smart
phone users particularly college students. Descriptive research method has been used for this study. The
data related to Smartphone users were collected through Questionnaire method. Convenience sampling
method was used by the researcher to collect the data. The sources of data were primary. The size of
sample is 70. The data collected were edited, coded and processed with the help of (R) software. The
statistical tools are used for Z-Test, and F-Test. There is a significant difference between the satisfaction
level of Smartphone users and gender of the respondents.

RESEARCH OBJECTIVES
1. To study awareness level about Smartphone applications.

2. To identify and analyze factors influencing wide adoption of Smartphone applications by


customers.

3. To identify which category is maximum preferred category of the Smartphone users.

4. To identify satisfaction level of customers in the usage of Smartphone applications.

MAJOR RESEARCH FINDINGS


There are number of factors influencing the choice of the students for a particular specialization,
we here concentrated mainly on the age, gender, annual income and the influence of peer groups. On
the basis of our research we found that the major reasons for going for a particular type of smart phones
(to be continued).

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RECOMMENDATIONS
Following are some of the recommendations or feedback which our sample surveyed users think should
be implemented to better improve their satisfaction and better their user experience.

1. By giving better endurance of batteries


2. Maximum people look for the budget phone
3. Ideal combination is found to be: Camera(8 to 12MP),
4. Price(Rs.5,000 to Rs.10,000), Android operating system, and Battery backup of over 30 hours
and Internal memory of 32GB

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INTRODUCTION

Alexander Graham Bell is the inventor of 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 Cellphones to the public during the 1980s. These cellphones were completely
unlike the cell phones of today since they were not at all compact nor by any means cost effective. Some
of these Cellphones cost as much as $4,000, and weighed over 2 pounds! The first smartphone was
developed by IBM and BellSouth, which came out to the public in 1993. Although basic compared to
today’s standards “Simon” had a touch screen that was capable of accessing email and sending faxes.
Smartphones are major extension on normal cellphones. Cellphones can make phone calls and even
some have video recording capabilities but they do not have Global System for Mobile Communications
(GSM) 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. Smartphones capability does not end at the internet access, or at document editing.
Smartphones also have the ability to interpret and decipher information like that form a quick response
code that may be on a product’s packaging. Smartphone users can download Quick Response (QR)
code scanners as well as other applications so they have the ability to read the information embedded in
the Quick Response (QR) code that may take them to a website, a coupon, or even a social media site.

Meaning of Smartphone
A mobile phone that performs many of the functions of a computer especially it has touch screen,
interface, internet access, and an operating system capable of running downloaded apps.

Customer satisfaction
Customer satisfaction is a term frequently used in marketing. It is a measure of how products and
services supplied by a company meet or surpass the customer expectation. Customer satisfaction is
defined as "the number of customers, or the percentage of total customers, who reported their experience
with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.

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LITERATURE SURVEY
Vipan Bansal and Bindu Bansal (2013) [1] “Have studied the Customer satisfaction of mobile
phone service users operating in Malwa Punjab” This paper is used to trace the reason for purchasing
mobile phones and usages of mobile phone applications. This study revealed that SMS is the most
widely used Valued Added Service. The results revealed that most of the respondents were satisfied with
their current service provider show maximum willingness for shifting to Airtel.

Dr. T. N. R. kavitha and Mr. R. Mohana Sundaram (2014) [2] their study entitled “A Study on
Customer Satisfaction towards Samsung Mobile Phone in Erode City”. This paper carried out with an
objective to determine the consumer preference and satisfaction. This paper concentrated on one
particular mobile phone brand called Samsung and its price, quality, colour, and satisfaction level.

Uchin Lee, et al. [3] have studied the negative aspects of smartphone overuse on young adults,
such as sleep deprivation and attention deficits, are being increasingly recognized recently. This
emerging issue motivated us to analyse the usage pattern related to smartphone overuse. The paper is
also analysed the usage data of identify between group usage differences, which range from the overall
usage patterns to app-specific usage pattern.

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THE PROBLEM STATEMENT

How Younger generation users are experience the smart phones compared to the Adults?

Our study is to compare how the youngsters quickly adopt to the smart phones.

We recognize that the adults would take time to be aware of the features in the smart phones. At the end
of the study we will be able to analyze the customer satisfaction level towards Smartphone usage.

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RESEARCH OBJECTIVES

This research studies the Consumer behavior of Smartphone application users of Bangalore.

1. To study awareness level about Smartphone applications.


2. To identify and analyze factors influencing wide adoption of Smartphone applications by
customers.
3. To identify which category is maximum preferred category of the Smartphone users.

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RESEARCH METHODOLOGY

Type of Research:
Descriptive research method has been used for this present study. The data entire related to
Smartphone users. Descriptive research studies are concerned with describing the characteristics of a
particular individual, or of a group.It is useful to obtain information concerning the status of the
phenomena to describe, “What exists” with respect to variables or conditions in a situation. This research
deals with describing the characteristics of consumers who use smartphone application and their
Awareness of smartphone application, Adoption of smartphone application, Usage pattern of smartphone
application, Preference of smartphone application and satisfaction been derived from Smartphone
application. Hence, descriptive research method is most appropriate for the given study.

Research Method

Survey method has been used to collect the data for doing this research.

Research Technique

Both questionnaires and schedules covering various parameters of respondents attitude towards
various factors and their influence on the choice of buying Smartphones.

Data Collection Sources

Primary data
1. Questionnaires
2. Schedules

Data gathering procedure


Data has been gathered by getting the input from the respondents through online using Google
docs. And to understand the preference of the customers [i.e, CONJOINT ANALYSIS were used] the
research had taken the input from the mobile retailer through Schedule

Sampling Technique:
Convenience Sampling was used by the researcher to collect the data

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The data were collected, edited, coded and processed with the help of (R) software and SPSS
software for Conjoint analysis and T-test Respectively.

Demographic Profile
Sample size = 71
Variables Characteristics No. of respondents Percentage
18 – 30 66 93%
31 – 40 3 4%
Age Group
40 – 50 1 1%
50 and above 1 1%
Male 44 62%
Gender Female 26 37%
Not prefer to say 1 1%
<5,000 37 52%
5,000 - 15,000 8 11%
15,001 - 25,000 9 13%
Income Group 25001 - 35,000 2 3%
35,001 - 45,000 1 1%
45001 - 55,000 1 1%
55,000 > 4 6%

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For Conjoint Analysis (sample size of 32)

Variables Characteristics No. of respondents Percentage


18 – 30 26 81%
31 – 40 - -
Age Group
41 – 50 3 9%
50 and above 3 9%

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HYPOTHESIS

Null Hypothesis Ho: Age does not impact on purchase of smartphone


Alternative Hypothesis Ha: Age has an impact on purchase of smartphone.

Statistical Tools

1. Conjoint analysis is used to understand the customer desired features on their smartphones.
2. Rank order method is used to identify the customer preference on smartphone and various
factors are such as Cost, Screen Size, Memory, Operating systems and Battery Backup.
3. T-test and Chi-Square are also used for the Hypothesis.

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Customer satisfaction level on Smart phone

RESEARCH LIMITATION

This survey has various limitations, Like any other survey:


1. Time Constraints.
2. As the study is on behavior aspect, information may be biased.
3. The study is limited at Bangalore city.
4. The study is conducted in a very small area and on a small sample size, the results of the study
cannot be generalized for another area of country.

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DATA ANALYSIS & INFERENCE

It is ascertained from the above table 93% of respondents felt in the category of below 18-
30 years, It is also ascertained that 7% respondents belong to the age of over 30 years.
It is ascertain that 62% of the respondents are Male, 26% of the respondents are female and 1%
wouldn’t prefer to say.
From the demographic profile we also ascertain that 52% of the respondents are students, 11%
belongs to the income group ranges from 5,000 to 15,000, 13% of them belong to the income
group ranges from 15,001 to 25,000, 3% of them belong to the income group ranges from 25,001
to 35,000., 1% each for the income group ranging from 35,001 to 45,000 and 45001 to 55,000.
And 6% of the respondents belong to the income group of over 55,000.

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T-Test

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

GENDER 71 .39 .520 .062

AGE 71 .11 .464 .055

INCOME 0a,b . . .

OWNERSHIP 71 .99 .119 .014

SATISFIED 71 1.01 .597 .071

NOTSATISFIED 56 1.27 .726 .097

REASONS 0a,b . . .

BRAND 0a,b . . .

SWITCH 71 .99 .643 .076

LEVELOFSWITCH 71 2.61 .918 .109

VAR00011 0a,b . . .

WILLINGNESSTOPAY 0a,b . . .

SAMEOROTHER 0a,b . . .

BUDGET 71 3.17 1.219 .145

INFLUENCE 71 3.54 1.119 .133

REPUTATION 71 3.73 1.253 .149

SEASON 71 3.10 1.364 .162

AFTERSALESER 71 3.89 1.202 .143

SCREEN 71 3.96 .933 .111

OPERATINGSYS 71 4.35 .830 .098

BATTERY 71 4.77 .614 .073

RAM 71 4.55 .771 .091

CAMERA 71 4.58 .750 .089

FOURG 71 4.59 .838 .099

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a. t cannot be computed because the sum of caseweights is less than or equal 1.

b. t cannot be computed. There are no valid cases for this analysis because all
caseweights are not positive.

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Customer satisfaction level on Smart phone

One-Sample Test

Test Value = 0

T df Sig. (2-tailed) Mean Difference 99% Confidence 99% Confidence


Interval of the Interval of the
Difference Difference

Lower Upper

GENDER 6.385 70 .000 .394 .23 .56

AGE 2.044 70 .045 .113 -.03 .26

OWNERSHIP 70.000 70 .000 .986 .95 1.02

SATISFIED 14.302 70 .000 1.014 .83 1.20

NOTSATISFIED 13.070 55 .000 1.268 1.01 1.53

SWITCH 12.910 70 .000 .986 .78 1.19

LEVELOFSWITCH 23.923 70 .000 2.606 2.32 2.89

BUDGET 21.910 70 .000 3.169 2.79 3.55

INFLUENCE 26.619 70 .000 3.535 3.18 3.89

REPUTATION 25.098 70 .000 3.732 3.34 4.13

SEASON 19.136 70 .000 3.099 2.67 3.53

AFTERSALESER 27.256 70 .000 3.887 3.51 4.26

SCREEN 35.761 70 .000 3.958 3.66 4.25

OPERATINGSYS 44.194 70 .000 4.352 4.09 4.61

BATTERY 65.518 70 .000 4.775 4.58 4.97

RAM 49.739 70 .000 4.549 4.31 4.79

CAMERA 51.461 70 .000 4.577 4.34 4.81

FOURG 46.169 70 .000 4.592 4.33 4.85

Source: Computed data from SPSS

Inference:

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Customer satisfaction level on Smart phone

Since P value is more than 0.01 (i.e., 0.045), the null hypothesis is accepted and the alternative
hypothesis is rejected at 1% level of significance. Hence, it could be concluded that the Age does not
impact on purchasing the smart phones.

χ2 - Test
Observed
do you think you would be buying the smartphone in Column
near future? Labels
Grand
Row Labels Maybe No Yes Total
18 – 30 23 9 20 52
31 – 40 2 2
40 – 50 1 1
50 and above 1 1
Grand Total 24 9 23 56

Expected
do you think you would be buying the smartphone in
near future? Column Labels
Grand
Row Labels Maybe No Yes Total
18 – 30 39.79592 14.92347 38.13776 52
31 – 40 1.530612 0.57398 1.466837 2
40 – 50 0.765306 0.28699 0.733418 1
50 and above 0.765306 0.28699 0.733418 1
Grand Total 24 9 23 56
Source: Computed data from Excel.

From χ2 table it could be noted that at 5% level of significance and 11 Degrees of freedom

χ2tab= 19.675
And from the computed table χ2cal= 6.92.
i.e., χ2tab> χ2cal
Thus Accepting Ho; Hence we conclude that age does not impact on buying the smart phones.

CONJOINT ANALYSIS
'Conjoint analysis' is a survey based statistical technique used in market research that helps determine
how people value different attributes (feature, function, benefits…,) that make up an individual product or service.

We have used (R) software to identify the different specification of the Smartphone.

We arrive at 13 possible cards out of 243 cards using (R) Software.


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Customer satisfaction level on Smart phone

Phone
Phones Specification

Your
Battery rating
Camera Cost (in Operating backup Memory out of
(in pixel) 1000's) systems (in hrs) (in GB) 100
Phone 1 8 to 12 >15 windows 24 8 1789.22
Phone 2 >12 5 to 10 others 24 8 1702.45
Phone 3 5 to 7 >15 Android 30 8 1858.5
Phone 4 >12 10 to 15 Android >30 8 1920.6
Phone 5 5 to 7 5 to 10 windows >30 8 1840.5
Phone 6 5 to 7 5 to 10 Android 24 16 2024.5
Phone 7 8 to 12 10 to 15 Others 30 16 1893.22
Phone 8 >12 >15 windows >30 16 2007.45
Phone 9 >12 >15 Android 24 32 2231.75
Phone
10 5 to 7 10 to 15 windows 24 32 2057.25
Phone
11 >12 5 to 10 windows 30 32 2143.66
Phone
12 8 to 12 5 to 10 Android >30 32 2254.33
Phone
13 5 to 7 >15 Others >30 32 2012.45
Source: Computed result

The rating in the last column is the summation of the input given by the respondents rating out of 100.

Totaling the respondents input we found that “Phone 12” has the highest ratings (i.e, 2254.33) followed
by “Phone 9” and “Phone 11”.

Thus Smartphone industries must focus on the features of the “Phone 12” the most, so as to meet
customer satisfaction.

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PHONE PREFERED
2500

2000

1500

1000 Customer…

500

RANK ORDER
This helps us to know the preference of the customers for buying the smart phones,

The preference is based on the 5 attributes such as

1. Cost,
2. Screen Size,
3. Battery Backup,
4. Operating systems &
5. Memory.

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From the sample of 70 respondents

Your
age [Operating [Battery
group [Cost] systems] [Camera] backup] [Memory]
18 – 30 1 2 5 3 4
18 – 30 3 3 2 3 3
18 – 30 2 1 1 2 2
18 – 30 2 3 3 3 3
18 – 30 3 3 3 3 3
18 – 30 1 4 3 4 4
18 – 30 1 2 2 1 2
31- 40 1 1 3 1 3
18 – 30 1 1 1 1 1
31- 40 3 2 5 4 3
41-50 3 2 3 1 3
31- 40 2 1 2 1 2
50> 1 5 3 2 4
41-50 3 2 1 1 1
50> 2 1 4 3 5
41-50 1 2 3 2 2
50> 3 1 5 4 2
41-50 1 1 2 1 2
50> 2 1 2 2 1
41-50 3 4 3 4 4
Source: Computed from Excel

Computations:

Cost= 22*3+17*2+22*1+6*4+5*3= 161.

Similarly, Battery Backup= 174

Operating systems= 177

Camera=186

Memory=195.

Lower the score, higher is the preference,

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Thus Cost(=161) is the influencing factor for buying the smart phones followed by

Battery Operating
backup= 174, systems= 177, Camera= 186, Memory= 195

MAJOR RESEARCH FINDINGS


A Discriminate analysis was conducted to predict whether age will influence in buying smart
phones or not. We had used T-test and χ2 – Test to prove the hypothesis.

From both the test we recognized that the age does not influence in buying the smart phones [accepting
Ho],

Analyzing the questionnaire we found that people are likely to switch to another brand,

Because 21% of the respondent will purchase the same brand.

CONSUMER SURPLUS:
Consumer surplus is defined as the difference between the consumer's willingness to pay for a
commodity and the actual price paid by them, or the equilibrium price.

Here in this Study the maximum 28% of the respondents are willing to pay between Rs.10,000 to
Rs.15,000.

From the conjoint analysis the optimized price range for the Phone 12 was Rs. 5,000 to 10,000. But here
the consumer is willing to pay even more. These difference is known as surplus.

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CONCLUSIONS AND RECOMMENDATIONS


Smart phones these days are getting updated more frequently. This study is conducted in
Bangalore city.

From T-test and χ2 – Test we found that the age does not influence in buying the smart phone, from the
questionnaire we found that, adults take time to be aware of existing technology of smart phones, and
also both young and adult group had chosen the same specification as their preference.

Following are some of the recommendations or feedback which our sample surveyed users think
should be implemented to better improve their satisfaction and better their user experience.

 By giving better endurance of batteries


 Maximum people look for the budget phone
 Ideal combination is found to be: Camera(8 to 12MP), Price(Rs.5,000 to Rs.10,000), Android
operating system, and Battery backup of over 30 hours and Internal memory of 32GB .

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Customer satisfaction level on Smart phone

Questionnaire

Customer satisfaction level on Smart phones

*Required

1. Email address *

2. Name

3. Gender *

Mark only one oval.

Male

Female

Prefer not to say

Other:

4. Age Group *

Mark only one oval.

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18 - 30

31 - 40

40 - 50

50 and above

5. Your Income? *
Mark only one oval.

<5,000

5,000 - 15,000

15,001 - 25,000

25001 - 35,000

35,001 - 45,000

45001 - 55,000

55,000 >

Other:

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6. Do you Own a
Smartphone? * Mark only
one oval.

Yes

No

7. If yes, Are you satisfied with your current


Smartphone? Mark only one oval.

Yes

No

Maybe

8. If No, do you think you would be buying the smartphone in near


future? Mark only one oval.

Yes

No

Maybe

9. For non Smartphone users, what are the Deciding factors that withdraw using
smartphone Tick all that apply.

Price

Not aware how to use

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Customer satisfaction level on Smart phone

Because of Size

Battery back up

we were used to feature phone for long time

10. Which Brand of Smart phone do you prefer to


purchase? * Mark only one oval.

Sony

Samsung

HTC

Apple

Micromax

Vivo

Motorola

Gionee

Oppo

Lava

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Xolo

Intex

Karbon

Xiaomi

One+

others

11. Would you like to switch to another brand if additional features are
offered? * Mark only one oval.

Yes

No

Maybe

12. What is your level if Switching


Smartphones? * Mark only one oval.

1 2 3 4

Very Low Extremely High

13. Would You like to Buy the same brand when Buying a new smart phone in
Future * Mark only one oval.

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Yes

No

Maybe

14. How much are you willing to Pay for Smart


phone? * Mark only one oval.

<5,000

5,001 - 10,000

10,001 - 15,000

15,001 - 20,000

20,001 - 30,000

30,001 - 45,000

45,000>

15. Which is your Operating


Systems * Mark only one oval.

Android

IOS

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Windows

16. what is the influence of family and friends or word of mouth for buying
Phone * Mark only one oval.

1 2 3 4 5

Strongly not influenced Strongly influenced

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17. How Budget Influence you


* Mark only one oval.

1 2 3 4 5

Strongly not incfluenced Strongly influenced

18. Are you influenced by the reputation of the


brand? * Mark only one oval.

1 2 3 4 5

Strongly not Influenced Strongly influenced

19. Are you influenced by Festival Season /


Promotions * Mark only one oval.

1 2 3 4 5

Strongly not influenced Strongly Influenced

20. How ''After sale servicing" is important to


you? * Mark only one oval.

1 2 3 4 5

Strongly not influenced Strongly Influenced

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About Specification

This is to understand the level of satisfaction based on the phones specification

21. How important is the Screen size for buying


Smartphone * Mark only one oval.

1 2 3 4 5

Not important very important

22. How important is the Operating


system * Mark only one oval.

1 2 3 4 5

Not important very important

23. How important is Battery back-


up * Mark only one oval.

1 2 3 4 5

not important very important

24. How important is RAM or


Memory * Mark only one oval.

1 2 3 4 5

Not Important very important

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25. How important is the Camera


resolution * Mark only one oval.

1 2 3 4 5

Not important very important

26. How important is 4G enabled device for


you * Mark only one oval.

1 2 3 4 5

not important Very important

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CONJOINT ANALYSIS
Phone
Phone Specification
Your
rating
Camera Battery
out of
(in Cost (in Operating backup Memory
100
pixel) 1000's) systems (in hrs) (in GB)
Phone 1 8 to 12 >15 windows 24 8
Phone 2 >12 5 to 10 others 24 8
Phone 3 5 to 7 >15 Android 30 8
Phone 4 >12 10 to 15 Android >30 8
Phone 5 5 to 7 5 to 10 windows >30 8
Phone 6 5 to 7 5 to 10 Android 24 16
Phone 7 8 to 12 10 to 15 Others 30 16
Phone 8 >12 >15 windows >30 16
Phone 9 >12 >15 Android 24 32
Phone
10 5 to 7 10 to 15 windows 24 32
Phone
11 >12 5 to 10 windows 30 32
Phone
12 8 to 12 5 to 10 Android >30 32
Phone
13 5 to 7 >15 Others >30 32

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REFERENCE

M Ragupathi, G Prabu, International Journal of Applied Research 2015; 1(10): 270-274


Mithilesh Pandey* and Neelam Nakra*, SMARTPHONE AS A DISRUPTIVE DEVICE IN LIFESTYLE OF CONSUMER”
Vipan Bansal and Bindu Bansal (2013)
Dr. T. N. R. kavitha and Mr. R. Mohana Sundaram (2014)
Uchin Lee, et al.

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