Consumer behaviour: Smartphones

Profile of the Consumer Interviewed

Criteria Consumer 1 Consumer 2 Consumer 3
Name Manish Nalawade Kavita Shetty Dinesh Raj T.
Age 31 53 23
Gender Male Female Male
Occupation Service Homemaker Service
Income 10 l.p.a. - 5 l.p.a
Family Size 6 3 4
Family Income 20 l.p.a 30 l.p.a 15 l.p.a

We have selected the consumers while keeping the gender and economic diversity as the prime focus.
The price of the product owned by the aforementioned consumers spans the entire range of 10,000
Rs. to 30, 000 Rs.

Data Collection Process:

Criteria Consumer 1 Consumer 2 Consumer 3
Mode of interview Face to face Face to face Telephonic
Place Airoli Versova -
Duration 21 minutes 12 minutes 29 minutes

The overall data collection process was instrumental in gaining insights about the consumer thought
process while choosing a product. It also helped in analysing the impact of consumer diversity in the
product preferences and choice.

Individual and Group Factors affecting Consumer Choice behaviour:

Cultural factors: Generally, the cultural factors do not affect the Consumer Choice of a smartphone.

Social factors: A consumer’s sphere of influence usually consists of family and friends who already own
the smartphone. Negative feedback from the sphere of influence can potentially discourage the
consumer from choosing a certain product.

Personal factors: As part of the exercise, it has been observed that young consumers have a propensity
to choose a phone which is popular on social media.

Perception: While the young consumers are more susceptible to trying a newly launched brand of
smartphone, urban elderly consumers prefer a smartphone from trusted brands.

Learning: The choice of both, the young and elderly consumers, is driven by learnings from a previous
purchase of a certain brand. If the consumer was not satisfied with an existing product, he/she is more
likely to explore other brands of smartphones available in the market. Likewise, if a customer has had
a good experience with a particular brand, it increases the chances of the consumer choosing a
smartphone from the same brand.

Emotions: For a consumer in his twenties, the hype about a launch of new smartphone plays an
important role. Conversely, for a relatively older consumer, there isn’t a strong emotional connect
with the brand of a smartphone.
Implications & insights:
A smartphone with price ranging between 10,000 Rs. to 30,000 Rs. is a high involvement product. This
makes the consumer focus on the ‘value for money’ aspect of the product. Being a competitive
market, consumers tend to choose a product which provides maximum features in minimum cost.

Given the price range, this product is not an impulse purchase. Maximum consumers claim, while
choosing a smartphone ‘value for money’ is a feature that can’t be compromised on. A consumer
typically looks for a smartphone which has better features compared to the previously owned phone.

In order to choose the product, the consumer does substantial research on all the available substitutes
across brands. While internet is primary source of information, consumers are also reliant on peer
reviews. Generally, a consumer searches for product information on various YouTube channels,
popular technology blogs, product comparison websites and peer feedback about the product. The
duration of information search generally stretches from few weeks to a month, implying that a
consumer is less prone to an impulse purchase. A consumer seeks for information on primarily the
price, features and reviews. Feedback from a consumer’s sphere of influence carries weightage with
the consumer and has the ability to potentially change their decision.

While evaluating available alternatives, a consumer is usually open to options across brands. On the
other hand, a brand loyal customer considers different options under the same brand. At least 3 to 4
other products are considered by the consumer while choosing a smart phone.

The past purchase seldom influences the current consumer choice in young consumers. On the
contrary, it has been observed that a relatively older consumer prefers sticking to the same brand.
Prior to deciding on a product, lot of research goes into finalizing it, which reiterates the fact that this
is not a product that is impulsively bought. Customer and peer reviews also play an important role in
shaping the purchase decision. Apart from the primary factors, additional factors such as availability
of service centres and experiences from a past purchase are equally important factors in the decision.
Depending on the availability, consumers tend to consider buying a smartphone from ecommerce
websites as well as from retail shops.

Considering the fact that consumers carry out a thorough research before purchasing a smartphone,
they are satisfied with their choice post the purchase and are more likely to recommend the product.