A PROJECT REPORT ON TO STUDY THE BRAND PREFERENCE OF MOBILE PHONES AMONG THE GRADUATES & POST GRADUATES PDF

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A PROJECT REPORT ON TO STUDY THE BRAND PREFERENCE OF MOBILE PHONES AMONG THE GRADUATES & POST GRADUATES Submitted in partial fulfillment of the requirements for the award of the Post Graduate Diploma IN MARKETING MANAGEMENT Narsee Monji Institute of Management and Studies, Maharashtra Submitted ...

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A PROJECT REPORT ON TO STUDY THE BRAND PREFERENCE OF MOBILE PHONES AMONG THE GRADUATES & POST GRADUATES

Submitted in partial fulfillment of the requirements for the award of the Post Graduate Diploma IN MARKETING MANAGEMENT Narsee Monji Institute of Management and Studies, Maharashtra

Submitted by, Akash Dixit Student Id: 77115001387 PGDMM- Semester IV Batch : 2015-2017

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ACKNOWLEDGEMENT It is my immense pleasure to express my deepest sense of gratitude to my highly respected and esteemed faculty of NMIMS, Maharashtra, for their invaluable support. They have been instrumental in helping me to stay focused and determined towards my project. This thesis would never have been possible without their continuous guidance, technical mentoring, inspiration and valuable suggestions. I have learnt numerous things from them and greatly admire their dedication. Their exceptional capability of reducing complexities has enormously helped in the smooth progress of the work. I am especially expressing my sincere gratitude to my brother Mr. Anshul Dwivedi, Software Engineer & Senior Programming analyst in NEWGEN organization for providing necessary support and encouragement during the entire period of progress of the project work. My Friend Mr. Chaitanya Kasera , Avinash Yadav & Amit Singh for being so encouraging and helped me through in completing this project. I owe a debt of gratitude to people of my family my dear colleagues , my friends & their department for their suggestions and guidance during the progress of the work. I express my sincere thanks to all famous authors Mr. Philip Kotler, authors of NMIMS books, Google, Wikipedia ,who have directly or indirectly helped me in completion of project work. I wish to express my gratitude to my parents for their consistent inspiration which has been precious throughout my life. Last but not the least, my sincere thanks to all who are directly or indirectly encourage and help me in carrying the work. (AKASH DIXIT) ENROLL ID-775115001387 II

Table of Contents List of Tables………………………………………………………………………I List of Figures…………………………………………………………………....VI Abstract…………………………………………………………………………VIII

Chapter 1- Introduction 1.1 What is Brand…………………………………………………………………1 1.2 Brand Preference…………………………………………………………….. 2 1.3The Concept of Brand Preference…………………………………………….. 3 1.4 Studies on Brand Preference…………………………………………………. 4 1.5 Brand Experience ……………………………………………………………..5 1.6 Types of Preferences……………………… ………………………………….5 1.6.1 Homogeneous Preferences………………………………………… ……5 1.6.2 Diffused Preferences……………………………………………………. 6 1.6.3 Clustered Preferences……………………………………………………6 1.6.4 Heterogeneous Preferences…………………………………………….. .6 1.7 Factors Influencing Consumer Preference……………………………………7 1.7.1 Cultural factors…………………………………………………………7 1.7.2 Personal Psychological…………………………………………………9 1.7.3 Personal Factors………………………………………………………..11 1.7.4 Personality & Self concept…………………………………………. …12

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Chapter II – Literature Review 2.1 Barbara Culiberg and Ica Rojsek (2010) ……………………………………14 2.2 Androulidakis ; G. Kandus (2011) ………………………………………….14 2.3 Tajzadeh Namin A. A. ; Rahmani Vahid ; Tajzadeh Namin Aidin (2012) …14 2.4 Serkan Aydin, Gökhan Özer, Ömer Arasil, (2005)………………………….14 2.5 Jonathan, Lee ,Janghyuk, Lee and Lawrence, Feick, (2001)………………. .15 2.6 The Dream Catchers Group (2008)………………………………………….15 2.7 Oyeniyi, Omotayo Joseph - Abioudun, Abolaji Joachim (2010) .…………..15 2.8 Rodolfo Martínez Gras ; Eva Espinar Ruiz (2012) ..………………………..15 2.9 Wafa' N. Muhanna ; Awatif M. Abu-Al-Sha'r (2009) ………………………16 2.10 Nasr Azad ; Ozhan Karimi ; Maryam Safaei (2012)……………………….16 2.11 Nasr Azad ; Maryam Safaei (2012)………………………………………...16 2.12 Mehran Rezvani; Seyed Hamid Khodadad Hoseini;Mohammad Mehdi Samadzadeh (2012)……................... ………………………………………… ...16 2.13 Sany Sanuri Mohd. Mokhtar; Ahmed Audu Maiyaki ; Norzaini bt Mohd Noor (2011) …………………………………………………………………… ……...17 2.14 Shakir Hafeez ; SAF Hasnu (2010) ………………………………………..17 2.15 Shibashish, Chakraborty and Kalyan Sengupta (2008) ……………………17 2.16 Harsha de Silva, (2011) ..…………………………………………………..18 2.17 Brenda, Mak, Robert Nickerson and Henri Isaac (2009)……………… .….18 Chapter III- Objectives of the study 3.1 Objective and Scope of the Work……………………………… …………...19

Chapter IV- Executive Summary 4.1 Summary of the project…. …………………………………………………..20

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Chapter V- Research Methodology 5.1 Sampling Methodology………………………………………………. ……..21 5.2 Research Design…………………………………………………………… ..21 5.3 Data Collection………………………………………………………………21

Chapter VI- Data Analysis & Interpretation………………………………… .22

Chapter VII- Conclusion 7.1 Summary and Conclusion……………………………………………………35 7.2 Suggestions for Future Work…………………………………………… …..35 7.3 References……………………………………………………………… …...36 Annexure

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List of Tables Chapter I 1.7 Classified Factors Influencing Consumer Preference................... …….……...7 Chapter VI 6.1 Gender Profile of the respondents……………………………....……………22 6.2 Educational Back Ground……………………………………………………23 6.3 Which Mobile Phone you are Using…………………………………………24 6.4 Latest Mobile features you are aware of………………………..……………26 6.5 What are the reasons for using the mobile handset……………..……………27 6.6 How Long you are using the mobile phones…………………………………28 6.7 How often do you change mobile phone………………………..……………29 6.8 What is your favourite brand in Mobiles………………………..…………...30 6.9 Why do you like the brands you choose above………………………………32 6.10 What is the brand image b/w the participants…………………. …………..33

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List of the Figures Chapter VI 6.1 Gender Profile of the respondents……………………………....……………22 6.2 Educational Back Ground……………………………………………………23 6.3 Which Mobile Phone you are Using…………………………………………25 6.4 Latest Mobile features you are aware of………………………..……………26 6.5 What are the reasons for using the mobile handset…………….. ...…………27 6.6 How Long you are using the mobile phones…………………… …………..28 6.7 How often do you change mobile phone………………………..…………...30 6.8 What is your favourite brand in Mobiles……………………….. …………..31 6.9 Why do you like the brands you choose above………………… .…….…….32 6.10 What is the brand image b/w the participants…………………. …….…….33

VII

ABSTRACT The present work deals with the brand preference & their marketing strategy. In this project several aspects are taken into consideration for the achievement of the goal. The first and foremost step taken was the use the sampling methodology , research design. Also concepts of the marketing strategy from the veteran author & and the mentor of modern marketing era Mr. Philip Kotler. On the basis of data collection & analysis we would come to know brand preferences among the Graduates & Post Graduates student. This is all I have displayed in my project to fulfill the objective of my research.

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CHAPTER I Introduction

1.1. What is a brand? The term “brand” “derives from the Old Norse ’brandr’ meaning ’to burn.’7 The use of the term evolved in Middle English to the practice of “marking permanently with a hot iron,” a practice used for the marking of cattle and livestock. The practice of branding consumer things with a name, some picture or logo is however much older and has been part of economic exchange since the invention of papyrus in early Egypt and of paper in the Western Zhou Dynasty of China needed to make posting signs (Landa, 2006). The identity of the brand differs the product from others of the same category and enabled buyers to appraise its origins and value before purchasing the particular brand. Recovered from the ruins of Pompeii, preserved loafs of bread carried markings, made with so-called bread stamps, to signify the origin of its maker and its quality, providing a demonstration of the use of branding as early as AD 79. The branding of bread was also used in medieval Europe to enforce regulation of its quality. In 1931, the American Marketing Association formally defined a brand as a “word, letter, group of words or letters composing a name, a design, or a combination of these which identifies the goods or services of one seller or group of sellers and/or distinguishes them from those of competitors” (Committee on Definitions, 1935). But a brand is more than the product it identifies “because it can have dimensions that differentiate it in some way from other products designed to satisfy the same need. These differences may be rational and tangible – related to product performance of the brand - or more symbolic, emotional, and intangible – related to what the brand represents.” (Keller, 2012) Brands are estimated to be highly valuable assets. According to industry expert Interbrand, the top 100 most valuable global brands represented a joint value in excess of $1.7 trillion in 2015. Of these, CPG brands represent 21 of the world’s 100 most valuable brands, with a combined value of $259 billion. The “brand value” or commercial value of a brand’s underlying trademark to the firm that owns the mark can be a large and important intangible asset. While it is widely believed that brands create important barriers to entry and help sustain supernormal profits (e.g. Bain 1956; Demsetz 1982; Schmalensee 1982a, 1983), 1

the measurement of brand value is challenging in practice. The commercial value to a firm of owning the trademark to a brand is ultimately defined relative to a counterfactual (Goldfarb, Lu, and Moorthy, 2008): what are the net present value of a firm’s factual equilibrium profits versus what would have been the firm’s net present value of equilibrium profits but-for the brand.

1.2. BRAND PREFERENCE Brand preference is strongly linked to brand choice what attracts consumer towards that can influence the consumer decision making or their taste too and activate brand purchase. "Brand Preferences can be defined as the subjective, conscious and behavioural tendencies which influence consumer’s predisposition toward a brand". Understanding the brand preferences of consumers’ will dictate the most suitable and successful Marketing Strategies. One of the indicators of the strength of a brand in the hearts and minds of customers, brand preference represents which brands are preferred under assumptions of equality in price and availability. Measures of brand preference approach to quantify the impact of marketing activities in the hearts and minds of consumers and potential consumers. Higher brand preference usually indicates more revenues (sales) and profit, also making it an indicator of company financial performance. There has been a long standing process from marketers and their lot of analysis to understand how customers form their preferences and according to their interest toward a specific brand. Brand preference is closely related to brand choice that can facilitate consumer decision making and activate brand purchase. Knowing the pattern of consumer preferences and their taste over the years across the population is a severe input for designing and developing innovative marketing strategies. It also uncovers the heterogeneity of consumer choices leading to efficient market segmentation strategies. However, foreseeing consumer’s preferences & choices between brands is not an easy task as we all know that their preferences changes 2

with the time. Most of the early models focused on brand attributes in preference construction (e.g. Fishbein, 1965). Thus the evolving marketing strategies concentrate on analyzing and communicating information or exchanging their views about product attributes. Although these cognitive responses derived from beliefs about brand attributes are important in building preferences, there are other emotional responses (e.g. elaboration likelihood model-1982), social influences (e.g. extended Fishbein model) that can influence brand preferences. It is observed that consumers can have an already established preference or taste and refer to the brand attributes that confirm their preferences and choices. In addition, this traditional cognitive view that deemed consumer as rational decision making had been shifted to the experiential view focuses on the emotional, cognitive, symbolic responses of consumption (Holbrook and Hirschman, 1982). This shift echoed the changes that organisations have moved from concentrating on attributes and features toward creating & innovative experiences to their customers. Brands are no longer bundles of functional characteristic but are means of providing experiences (Schmitt, 1999). Moreover, these experiences were hyped to be an important driver in building brand preferences & choices. This study adopts the experiential view in studying the relationship between brand experience and brand preference. It will identify how brand experiences can build consumer’s preferences toward certain brands directly or indirectly by affecting the brand associations and brand personality. This paper is organised in three sections as follows; firstly, discuss the concept of brand preference, model of formation, and the previous studies. Secondly, the conceptual framework, and finally, the research design. Based on the previous experience with the product consumer will choose it rather than competitors of its availability. Organisations with products at the brand preference stage are at favorable position in competition their industry since the brand preference results in brand loyalty organisations more market share. 1.3. The Concept of Brand Preference The notion of preference has been considered in different disciplines such as economists, psychologists, sociology. However if there is no common agreed defined condition of preference among these disciplines. For example, economists trust that preferences are exogenous, stable, and known with satisfactory accuracy and are uncovered through decision conduct. The economic perspective of 3

preferences had been condemned for accepting that preferences are steady and endogenous. A person's preferences are not steady and can be endogenous or exogenous. In marketing writing, the word preferences implies the conclude or decision of an option. Preference are most importantly behavioral propensities (Zajonc and Markus, 1982). Mark preference is characterized differently as the customer's preference toward a brand that changes relying upon the notable convictions that are initiated at a given time; the purchaser dual behavior toward a specific brand; the degree to which a buyer favors one brand over another. For this review a working definition for brand preference is offered: "the one-sided behavioral propensities mirroring the shopper's preference toward a brand". In addition, there is contrast between brand preference and brand steadfastness. Mark preference speaks to the attitudinal brand dedication barring the activity of rehash obtaining; the brand-arranged attitudinal dependability. The primary subject is that the initial three basic leadership periods of brand reliability constitute the central of brand preference. Consequently, mark inclination is identified with brand devotion; nonetheless, mark unwaveringness is more reliable delineated by the long haul rehashed obtaining conduct.

1.4. Studies on Brand Preference Earlier reviews on brand preference can be divided into two stages: the main group is for studies analyzed the effect of shopper related variables. They concentrated on the effect of social, social, mental and individual components of shoppers. The principle discoveries of this group revealed the discovery that adjustments in shoppers' way of life can bring about changes in their image preference. The purchasers' identity attributes and values are likewise thought concern on marketing and promotion. One of the major discovery of these studies is that the brand attributes, plus other brand factors such as perceived value have a significant impact on brand preference. In addition, the introduction between the 4

self-image and brand-image; the self-image congruence has shown to be very important in brand preference building. 1.5. Brand Experience Brand experience is the subjective internal consumer feedback and behaviour evoked by brand related stimuli that are a part of a brand’s design and identity, packaging, communications and conditions of the enviornment (Brakus et al, 2009, p.55). Preference formation is a cumulative, learning process that evolves through time given that experience is the first and foremost source of learning. It is discussed that all aspects of brand experience pave the way and play a primary role in understanding and building customer’s brand preference. 1.6. Types of Preferences The target customer might like the product but not prefer it to others. In this case, the communicator must try to build consumer preference by promoting quality, value, performance and other features. The communicator can check the campaign’s success by measuring target customer preference after the campaign. The following are the types of preference.    

Homogeneous Preferences · Diffused Preferences · Clustered Preferences Heterogeneous Preferences

1.6.1. Homogeneous Preferences A market where the entire customer have roughly the same preference. The market shows no natural segments. We would forecast that existing brands would be same and spectrum around the middle of the measured scale in both good and creamy.

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1.6.2 Diffused Preferences At the other extreme, consumer preferences may be spread throughout the space, indicating that consumer vary highly in their preferences. The first brand to enter the market is likely to position in the center to appeal to the target crowd. A brand in the center minimizes the sum of total customer dissatisfaction. A second competitor could locate next to the first brand and rival for market share or it could locate in a corner to attract a consumer group that was not satisfied with the center brand. If many brands are in the market, they are likely to position throughout the space and show real difference to match consumer preference differences. 1.6.3 Clustered Preferences The market might reveal diffrerent preference clusters called natural Market Sectors. The first firm in this market has three choices. It might position in the center hoping to appeal to all groups. It might position in the largest market sector. It might develop & build many brands, each positioned in a different sector if the first firm developed only one brand and arc rivals would enter and introduce brands in the other segments. 1.6.4. Heterogeneous Preferences Customer preference heterogeneity perhaps the most important thing for segmenting in consumer preference. Taste and preferences differ among crowd. Some people are highly worried about the appearance of a product, whereas others are more concerned about functionality. As preference heterogeneity increase the case for segmentation increases in strength very much; the greater the variability the large the number of profitable sectors present in a market.

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1.7. FACTORS INFLUENCING CONSUMER PREFERENCE A consumer’s purchasing preference is influenced by cultural, social, personal and psychological factors.

Table No.1 Classified Factors Influencing Consumer Preference Cultural Social Culture Sub culture Social Class

Personal Psychological Reference groups Family Roles and Statues

Culture Sub culture Age, life cycle & Stage Occupation Economic Circumstance Life style Personality Self-conception

Social Class Motivation Perception Learning Beliefs & Attitude

1.7.1 Cultural Factors Culture represents an overall social heritage, a different form of environmental adaptation by a whole society of people. It includes a set of learned beliefs, values, attitudes, morals, customs, rituals, habits and forms of preference that are shared by a society and transmitted from generation to generation within that society which we can call a legacy. Please not that culture is alive, moving and ever-changing within us. It reacts to internal and external ...