A Study on Perception of Mobile Phone User's of Bhubaneswar
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SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 7 Issue 3–March 2020 A Study On Perception of Mobile Phone User’s of Bhubaneswar Towards Chinese Mobile Phone’s Quality Debasish Rout*, Dr Somabhusan Janakiballav Mishra**, Rahul Gupta*** *Asst Professor, Amity Global Business School, Bhubaneswar ** Asst Professor, Amity Global Business School, Bhubaneswar *** Student of MBA (Operations), Amity Global Business School, Bhubaneswar ABSTRACT With the advancement of technology and people perception and buying behavior has spanned over three becoming tech-savvy, Bhubaneswar market has become decades after India implemented “Open door policy” cosmopolitan as far as electronic gadgets are by inviting companies abroad to come to India and set concerned. People have become exposed to the cyber- up their manufacturing facilities. Immediately after environment and have become more and more risk LPG many American, Canadian, French, Chinese takers and early adapters. The buying behavior is so companies had invested in this vast Indian market dynamic that people are least bothered about price if which consists of more than 700 million middle class they get all the features they want. Internet has with purchasing power. Barring Chinese companies educated the consumers to such an extent that they almost all other companies have won the confidence of don‟t wait for promotion. Proactively they look for the the consumers in India. But there is a notion about the products to be released in the near future. But in spite Chinese products of not being durable and cheap. The of all these quality is a buzzword in today‟s world and study, therefore aims to examine the perceptions of the companies cannot ignore this important factor. consumers of Bhubaneswar towards the quality of Consumers in the today‟s world measure value for Chinese mobiles. money and that is crucial for every investment of the consumer in buying a product. Research on consumer KEYWORDS - quality, affordability, durability, consumer satisfaction, value, country-of- origin INTRODUCTION growing and bulging economy with market size worth more than 2 billion middle class population. To Globalization has contributed a lot to the availability of enhance the bilateral relationship both the countries different products and the presence of foreign have set up some modalities in the dialogue process as companies in India. History of globalization traces back far as economic, political issues are concerned. Exports to the ancient civilization when foreign invaders had to China has risen many fold and India companies like brought culture, language, commodities to India. Adani, Dr Reddy, Zindal steel, BHEL, BEML Ltd have Thanks to the political will and determination of opened their branches in China. Similarly the trade erstwhile Prime Minister Late P.V. Narasimha Rao, surplus is heavily tilted in favor of China with Chinese India accepted adapted and implemented liberalization, exports to India rising by 45 times. The imports include privatization and globalization in the year 1991. That machinery equipments, iron & steel, metals and textiles. paved the way for the foreign companies from countries like America, France, and China to come and invest in India’s telecom market is the second largest in the India. world in terms of number of telephone (both landline and mobile) subscribers. Liberalization of The history of relationship between China and India telecommunication was started way back in 1980 when dates back to 2nd century BC and today in the 21st the then Prime Minister Indira Gandhi had allowed the century it has attained a business of 85 billion dollar. French company Alcatel CIT to sign a contract with Today India and China are the two Asian giants of state owned Indian Telephone Industry (ITI). Post 1991 ISSN: 2393 - 9125 www.internationaljournalssrg.org Page 93 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 7 Issue 3–March 2020 Govt of India established Telecom Regulatory The perception of the buyer’s before buying a Chinese Authority of India (TRAI) to monitor the operation of product is also important because as it is the “cheap” private telecom companies like Vodafone, Hutch, image of these products that are already haunting in the Virgin Mobiles, Airtel, Uninor etc. Today India has market.(Abdullah Sarwar, S.M. Ferdous Azam, become the smart phone manufacturer’s universe as the Ahasanul Haque, et at, 2013) people’s appetite for these electronic gadgets of different brands with varied feature has grown in leaps Consumer ethnocentrism is a major aspect of buying and bounds despite the global slowdown. products but sometimes it differs from consumer to consumer based on individual perception. But The entry and success of Chinese mobiles in India is somewhere in the mind of the consumer there is a link largely due to the failure of Indian brands like between the country-of-origin and quality of products Micromax, Intex, Karbonn, Lava etc. There was a time because people have a perception that products from when these two brands Micromax, Intex were ruling developed countries are better than the developing with more than 54% of Indian Market which today is countries as far as quality is concerned. (Wang & less than 10%. Shenzen based Gionee was the first Lamb, 1983). But this also has limited takers in places china brand to enter into India. Later Gionee was sold like Bhubaneswar in Odisha. to Karbonn mobiles of India. If we look back, in the few years the Chinese mobiles have dominated the The term “Made in” is an important phrase in the Indian market by overpowering the brands like Nokia, perception of a product as far as brand is concerned. Samsung etc. Today four of the top five Smartphone (Nagashima, 1970). brands are from china like Xiaomi, Oppo, Vivo, Realme, Lenovo etc. Past research on the factor of pricing has revealed that people buy specific brand which is of value and the Top 5 Smartphone Brands in India Q3 performance worth of money. That makes the 2019: (Source:- https://candytech.in/smartphone- consumers very price conscious and they try to get the market-share-india/) best deal worth of their money (Sternquist, Byun and Jin, 2004). 1. Xiaomi – Market Share – 26% OBJECTIVES 2. Samsung – Market Share – 20% 1) To study about the important factors of buying 3. Vivo – Market Share – 17% decision of consumers in Bhubaneswar 2) To know the association between various factors 4. Realme – Market Share – 16% such as price and quality; durability and quality; price 5. Oppo – Market Share – 8% and durability. 6. Others (Apple, LG, Huawei, Asus, Google, RESEARCH METHODOLOGY Lenovo, Motorola, etc) – Market Share – 13% The study was based on primary data which was collected through a structured questionnaire (the Today Chinese mobiles are presumed to be popular in questions are closed ended with multiple choices). A India and our survey about the perception of people, sample of 113 respondents were taken on the basis of users of Bhubaneswar, capital of state of Odisha with a convenience. Attempt has been made to find out population of about 1 million would add to that whether the factors such as price, quality, durability, presumption. country of origin, reliability, ease of use affect the buying decision of consumers in Bhubaneswar. Also LITERATURE REVIEW whether there is an association between price and quality, quality and durability and price and durability The purchase intentions of the consumers buying has been tested using chi square analysis. mobile phones are very complex. Their search is limited to a specific country or the mobile is a matter of Chi-square test: research. Because sometimes country-of-origin Chi-square test formula = ∑((Observed frequency- dominates the brand of mobile. But quality is so expected frequency)^2 / Expected frequency) important in attracting and retaining the customers that The computer calculates a Chi-square (pronounced Ki- the marketer has to ensure it before selling to the square) value. If the actual data and expected data (if no customers. (Lai Chi Choy, 2015) difference) are identical, the Chi-square value is 0. ISSN: 2393 - 9125 www.internationaljournalssrg.org Page 94 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 7 Issue 3–March 2020 Greater differences between expected and actual data produce a larger Chi-square value. The larger the Chi- square value, the greater the probability that there really is a significant difference. Chi-square test is carried out by using Excel 2007. Table 2 ANALYSIS AND INTERPRETATION Preferred Country of Origin The questionnaire has been developed to know about China 52 the consumers of Bhubaneswar city in detail. Data analysis enables to know different patterns and India 51 association between the variables. 113 respondents America 10 were taken and it was observed that 60% respondents were female and 40% respondents were male. 80% respondents were in the age group of ( 21-30). 92% of the respondents were unmarried. 81% respondents were students. Figure 1 shows a pie chart that represents the percentage of respondents favoring country of origin Preferred Country of Origin before buying a mobile phone. It shows that 42% of the 60 52.00 51.00 respondents want to buy a mobile that is manufactured 50 in India. 40 Table 1 30 20 10.00 Country of Origin Affecting Buying 10 Decision 0 Yes 47 (42%) China India America No 66 (58%) Figure 2 Figure 3 shows a bar chart that represents factors that Manufacturer's country of consumers of Bhubaneswar consider before buying a origin affecting buying mobile. In the Bar chart below it is shown that 79 respondents out of 113 respondents consider Price as an decision important factor followed by 60 respondents consider durability as important factor. 41 respondents consider 42% country of origin as an important factor.