"A study of Sales Promotional Strategies of Cellular Handset Manufacturing Companies with Special Emphasis on Buying Perception Prevailing in Central India"
Dr Dileep Kumar Singh,
Narsee Monjee Institute of Management Studies, Hyderabad
Orcid id : 0000-0001-7163-9360
Dr. Shailesh Kediya
Associate Professor,
Department of Logistics and Supply Chain Management,
Symbiosis Skills and Professional University, Pune".
email: Kediya.shailesh@gmail.com
orchid id:0000-0002-2144-7800
Dr. Rajesh Mahajan
Assistant Professor,
School of Commerce,
SVKM's NMIMS university Indore Campus
rajesh.mahajan@nmims.edu
Dr. Sumita Dave,
Dean- Faculty of Management and Commerce
Director- Amity Business School
sdave@rpr.amity.edu
Abstract
This study investigates the factors that influence the purchasing decisions of cell phone consumers. The phone market in India is booming. Customers' shopping decisions are influenced by the qualities of their mobile devices and their purchasing motivations. Customers use both their brains and their emotions while making a purchase. Determine how much cognitive and emotional activity influences a purchase decision.
This study examines how these two factors affect customer decisions when purchasing a smartphone. The results were based on the correlation of these variables.
Keywords: Sales promotional Strategy, Cell Phone, Mobile, Telecom, Consumer perception
Introduction:
With the announcement of the National Telecom Policy in 1994, the Indian telecom industry saw a significant transformation. In August 1995, commercial mobile services were started in India. The average monthly customer increase was around 0.05 to 0.1 million in the first 5–6 years, and the total mobile subscriber base in December 2002 was 10.5 million.As a result of a number of active activities conducted by the regulator and licensor, monthly mobile subscriber additions climbed to more than 2 million per month in 2003–04 and 2004–05.In the previous few years, there has been a huge exponential increase, with around 10 to 15 million new members joining the customer base every month.
When it comes to reaching the second billion customers, manufacturers must focus on their device portfolios. Carriers must work closely with device manufacturers and software developers to tailor their handset portfolios to consumer needs. Businessmen, field workers, and other clients want features like ease of use, phone book, reminder, push-to-talk, camera phones, multimedia messaging service (MMS), video streaming, and audio streaming. As a result, phone manufacturers, carriers, and software developers will need to cater to a greater number of clients.
Review of Literature:
The concept of consumer confusion is linked to industries that are rapidly expanding technologically and competitively. These impediments limit customers' awareness of such markets, limiting their purchasing decisions. Turnbull et al (Cadet et al., 2012). The researcher sought to determine the most efficient price marketing tactics used by businesses in a competitive environment. (Raju et al (Mary Metilda et al., 2016). Mobile phones can help marketers and researchers. These technologies make consumers more accessible and mobile internet communication more interesting. Ferris, This study examines consumer perceptions toward mobile advertising and their behaviour. A tool to gauge public sentiment on mobile advertising is currently being developed. Tsang and colleagues the specialist to assess the impact of mobile devices on marketing practises, the four Ps (product, pricing, promotion, and placement) and the four Cs are employed (consumer, cost, communication, and convenience).Mary Metilda et al. Mobile marketing includes advertising, sales promotion, entertainment, location-based services, internet, banking, and shopping. (Ferris, 2007) Prices, brands, interfaces, and properties are the most critical criteria determining brand selection. Turnbull et al (Karjaluoto et al., 2005). This study highlights how product attributes influence consumer behaviour and how customers make purchasing decisions. Image, pricing, personal recommendation, durability and mobility, media influence, and after-sales service are all elements that influence mobile phone purchases, according to the study. (Narasuman & Chan)
Objectives of the study:
The study used a 400-person sample from central India. So the studied universe is central India. Purposive sampling is utilised. The meaningful explanation was derived using the Chi-squared, t-test, and spearman's rho tests.
Hypothesis
H01. According to the consumer's perspective, logical characteristics of handsets aren't more important than emotional features in influencing a purchasing decision.
H02. Consumer income has no meaningful relationship with pricing choice.
H03. Consumer income has no meaningful relationship with brand preference.
H04. The relevance of handset emotional and logical characteristics is unrelated to age.
H05. Logic and emotion are not linked in purchase decisions.
Result and discussion:
Hypothesis 1
T-TEST
The t-test results reveal t=12.988, P=0.000, mean logical scores = 3.99, and mean emotional scores = 3.69. As shown above, people value logical characteristics of handsets over emotive features when making buying decisions. The mean logical score is higher than the mean emotional score, P0.05. So the null hypothesis fails.
Conclusion:
Mean logical scores outperform mean emotional scores i.e. logical features trump emotional ones.
Hypothesis 2
Consumer income has no meaningful relationship with pricing choice.
SPEARMAN’S RHO TEST
A significant correlation exists between two variables for all respondents. r = 0.179, P = 0.000. It implies a substantial link between consumer income and handset prices. So no null hypothesis.
Conclusion:
The link between income and price preference is not zero for men or women. However, this coefficient is zero for men. This indicates that there is a link between female income and price preferences.Affluence in men is not linked to a high price preference.
Hypothesis 3
Consumer income has no meaningful relationship with brand preference.
CHI-SQUARE TEST
The chi-square test for the independence of row and column variables is used in a cross-tabulation.This implies a relationship between two variables.
The chi-square test for all respondents shows no significant link between two variables. The chi-square value of 25.761 and P value of 0.105 confirm this. So the null wins.
Conclusion:
For both men and women, there is no substantial relationship between income and brand preference. The relationship between income and brand preference is stronger among men.
Hypothesis 4
The relevance of handset emotional and logical characteristics is unrelated to age.
As seen in the table below, there is no significant link between two factors for all respondents. The r = -0.05 and p = 0.928 are not significant. For all respondents, there is no significant relationship between age and the emotional and logical aspects of phones, and the variables are inversely associated. The p value of the test is more than 0.05. So the null wins.
Conclusion:
In men, age and the relevance of emotional and logical elements of cellphones are inversely related. But for women, there is a positive correlation between age and the importance of logical and emotional traits. The older men are, the less they value a range of product features. However, older women have a stronger desire for a variety of product attributes.
Hypothesis 5
Emotional and intellectual purchase impulses are linked. Charles Spearman's non-parametric correlation analysis was employed to test this idea.The following are the logical purchasing motives:
While the emotional purchasing impulses are categorised as follows:
The tables below show the association between rational and emotional purchase impulses.
Fashion and imitation motives with rational purchase motives: The Spearman's rho test results for all customers show the following table values for fashion and imitation motives with logical buying motives:
There are no significant differences in the P values for the various reasons given in this study (P0.05). Thus, there is a considerable correlation between fashion and imitation motives and the aforesaid logical purchase motives. But P value for quality motive is greater than 0.05. Thus, there is no substantial relationship between fashion and imitation motives and quality motive. So we can accept the null hypothesis for quality but reject it for the others.
Table 2
b Linking enjoyment to rational buying motives:
Table values relating to the connection between fun and logic are shown.
The results show a strong link between fun and all rational buying motives. Because the P value is low. Hence we can rule out the null Convenience and comfort with reasonable purchasing goals: As seen in the following table, all consumers benefit from convenience and comfort:
The results show a strong correlation between convenience and comfort and rational buying factors. Because the P value is low. Hence we can rule out the null.
Conclusion:
The cellular handset sector is unique in that product attributes can be used to promote sales. Indians are still proud of their cell phones. Many marketing experts believe that the characteristics of a cell phone are the ideal advertising technique for businesses.
Advertisements, free gifts, and other sales promotional activities affect consumer purchase decisions, according to the study. Ads have a big impact on customers.
The study concludes that buyers value logical qualities above emotive ones. Indian shoppers, as expected, make rational choices. It is often assumed that female buyers are more emotional than male buyers.
This research provides wide outcomes. For all respondents, there is no significant relationship between income and brand preference.
Age and relevance of emotional and logical qualities of handset are inversely related.
In general, logical and emotional purchase impulses are associated positively. However, there is an
Inverse relationship between emotional purchase and quality preference.
Suggestions
Suggestions are given below:
The research and development departments of cell phone manufacturers should focus more on the logical characteristics of the phone, as rational purchase motives influence consumer decisions more than emotional ones.
Companies that make mobile phones must focus on the latest technology, style and appearance, and brand reputation, as these are the most important aspects in consumer decision-making. Companies must aggressively promote their cell phone brands. Stylish look, battery backup, hands-free speaker, advanced shortcuts, internet access mode, light weight, camera, built-in flash, voice recorder, calendar organiser, and cut-out cover should be emphasised in their campaigns.
Because communicating with friends and family is the main use of a cell phone, marketing for cell phones must emphasise social connection. Because utility is the main reason for buying a phone, marketing should emphasise this.
Product convergence is a critical issue in today's marketing world. In the mobile phone industry, it is the optimum mix of features to meet various consumer demands. To maximise consumer pleasure, the feature portfolio should include both rational and emotive features.
References
