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Consumer Behaviour On Dell Laptops

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`1 A PROJECT REPORT ON CONSUMER BUYING BEHAVIOUR OF DELL LAPTOPS MARKETING ENVIRONMENT AND ANALYSIS SUBMITTED TO Dr.RITANJALI MAJHI, Asst.Professor, NIT Warangal, SCHOOL OF MANAGEMENT. SUBMITTED BY V.MOUNIKA (138951) E.VIGNESH (138952) `2 ABSTRACT In this project we studied and analyzed the consumers buying behavior of DELL laptops with respect to male and female perceptions. The research method is descriptive research. In this the research is based on the primary data which is collected from different persons through the form of questionnaire. A set of questions was constructed and administered to the different persons to elicit first hand information with regard to consumer behavior. In this research we used Z-Test for analyzing the data. Here the sample size is 50. Here sample frame is age group. `3 Contents Topic name Page Numbers 1. Introduction (01-05) o Introduction 04 o Evolution of Laptops 04 o Scope of the Study 05 o Objectives of the Study 05 o Research methodology 05 2. Company profile (06-07) o Introduction 06 o About the company 06 o Industry Profile 06 o Description of Dell’s Products 07 o SWOT Analysis Dell 07 3. Research methodology (09-10) o Introduction 09 o Research design 09 o Sample profile 09 o Methods of data collection 10 o Tools of data collection 10 o Tools for analysis 10 4. Data analysis (11-13) o Analysis 11 o Interpretations and findings 13 5. Conclusion (14-14) o Limitations 14 o Recommendations and Suggestions 14 6. References 15 7. Questionnaire 16 `4 1. INTRODUCTION 1.1 Introduction: After going through everything from Cell Phones, to Washing Machines, Hi Definition Televisions, and Digital Cameras, LCD Projectors and Vacuum Cleaners, we decided to focus on a rather more interesting, and soon-to-be-needed option… i.e. LAPTOP 1.2 Evolution of Laptops: As the personal computer became feasible in the early 1970s, the idea of a portable personal computer followed. A "personal, portable information manipulator" was imagined by Alan Kay at Xerox PARC in 1968, and described in his 1972 paper as the "Dynabook". The IBM SCAMP project (Special Computer APL Machine Portable), was demonstrated in 1973. This prototype was based on the PALM processor (Put All Logic In Microcode). The IBM 5100, the first commercially available portable computer, appeared in September 1975, and was based on the SCAMP prototype. As 8-bit CPU machines became widely accepted, the number of portables increased rapidly. The Osborne 1, released in 1981, used the Zilog Z80 and weighed 23.6 pounds (10.7 kg). It had no battery, a 5 in (13 cm) CRT screen, and dual 5.25 in (13.3 cm) single- density floppy drives. In the same year the first laptop-sized portable computer, the Epson HX-20, was announced. The Epson had a LCD screen, a rechargeable battery, and a calculator-size printer in a 1.6 kg (3.5 lb) chassis. Both Tandy/RadioShack and HP also produced portable computers of varying designs during this period. The first laptops using the flip form factor appeared in the early 1980s. The Dulmont Magnum was released in Australia in 1981–82, but was not marketed internationally until 1984–85. The $8,150 ($18,540 today) GRiD Compass 1100, released in 1982, was used at NASA and by the military among others. The Gavilan SC, released in 1983, was the first computer described as a "laptop" by its manufacturer From 1983 onward, several new input techniques were developed and included in laptops, including the touchpad (Gavilan SC, 1983), the pointing stick (IBM ThinkPad 700, 1992) and handwriting recognition (Linus Write-Top, 1987). Some CPUs, such as the 1990 Intel i386SL, were designed to use minimum power to increase battery life of portable computers, and were supported by dynamic power management features such as Intel Speed Step and AMD Power Now! In some designs. Displays reached VGA resolution by 1988 (Compaq SLT/286), and colour screens started becoming a common upgrade in 1991 with increases in resolution and screen size occurring frequently until the introduction of 17"-screen laptops in 2003. Hard drives started to be used in portables, encouraged by the introduction of 3.5" drives in the late 1980s, and became common in laptops starting with the introduction of 2.5" and smaller drives around 1990; capacities have typically lagged behind physically larger desktop drives. Optical `5 storage, read-only CD-ROM followed by writeable CD and later read-only or writeable DVD and Blu-Ray, became common in laptops soon in the 2000s. 1.3 Scope of the Study: The research covers about DELL, which is best for its Laptop products and multifunctional devices. To lend a comprehensive study to this research work this particular company is chosen. The perceptions of male and female customers while buying DELL laptops are examined. 1.4 Objectives of the Study: • To study the consumer buying behavior of Dell laptop with respect to Male and Female perceptions. 1.5 Research methodology:- The research method is descriptive research. In this the research is based on the primary data which is collected from different persons through the form of questionnaire. The sample size is 35 collected from different persons. `6 2. COMPANY PROFILE DELL LAPTOPS 2.1 Introduction: Dell Computer was founded as PC's Limited in 1984 by university student Michael Dell. Selling assembled computers from his dormitory room, Michael abandoned the university during the planning stage of his first in-house computer design in 1985. The company was so successful that within two years PC's Limited had distribution offices in Europe, and changed its grammatically-incorrect name to Dell Computer Corporation. By 1991, seven years after selling its first computer, Dell Computer Corporation was listed in the Fortune 500. With much experience in mail order telephone sales, Dell was one of the first companies to offer computers for mail order via the Internet. The Dell Coupon program made many Internet models cheaper than other brands, and continues to be popular to this day. 2.2 About the company: Dell, Incorporated is a computer hardware manufacturer and distributor. The company is one of the world's largest computer distributors in terms of both quantity of units sold and gross income, and one of the United States' largest corporations. From 1999 until 2006 Dell delivered more complete computer systems worldwide per quarter than any other PC manufacturer. However, a bad reputation stemming from poor customer support had seen Dell's market shrink, with rival Hewlett- Packard outselling Dell for the first time in Q4 2006. Dell is now attempting to improve its image with Linux-based desktop and laptop models, a community-driven idea generation website, and a move to less expensive AMD processors. Most of Dell's products are IBM PC-compatible desktop, laptop, and server computers using Intel or AMD processors. The company also markets a line of HTC-produced handheld computers hand, rebranded computer peripherals such as keyboards and mice, and Sony-developed monitors and televisions. Other Dell-branded peripherals such as scanners and printers are often designed in-house with production outsourced. Dell also distributes third-party hardware such as gaming consoles from Sony, Nintendo, and Microsoft. Often Dell will market via the company website third-party devices that compete with its own products, such as the Palm Tungsten handheld that competes with Dell's own Axim line. 2.3 Industry Profile: Dell wants its name to ring from the desktop to the data center. The world's 3 rd largest supplier of PCs (behind 1st HP and 2nd Lenovo), the company offers a broad range of technology products for the consumer, education, enterprise, and government sectors. In addition to a full line of desktop and notebook PCs, Dell offers network servers, data storage systems, printers, Ethernet switches, and peripherals, such as displays and projectors. It also markets third-party software and hardware. The company's growing services unit provides asset recovery, financing, infrastructure consulting, support, systems integration, and training. Dell generates nearly half of its revenues outside the US. `7 2.4 Description of Dell’s Products: • Laptops 2.5 SWOT Analysis Dell:- Strengths:- • Dell is the World's largest PC maker. Profits for the 3 months to July 2005 were in excess of $1 billion US, representing a growth of around 28%. For the last couple of years it has held its position as market leader (it took it from rivals Hewlett-Packard). The Dell brand is one of the best known and renowned computer brands in the World. • Dell cuts out the retailer and supplies directly to the customers. It uses information technology, and Customer Relationship Management (CRM) approaches to capture data on its loyal consumers. So a customer selects a generic PC model, and then adds items and upgrades until the PC is kitted out to the customer's own specification. Components are made by suppliers, never by Dell. PC's are assembled using relatively cheap labour. You can even keep track of your delivery by contacting customer services, based in India. The finished goods are then dropped off with the customer by courier. Dell has total command of the supply chain. Weaknesses:- • The company has such a huge range of products and components from many suppliers from a plethora of countries, that there is the occasional product recall that can cause Dell some embarrassment. In 2004 Dell had to recall 4.4 million laptop adapters because of a fear that they could overheat, causing electric shocks or fires. • Dell is a computer maker, not a computer manufacturer. It buys from a group of concentrated hi-tech component manufacturers. Whilst this is a tremendous advantage in terms of business operations, allowing Dell to focus on marketing and logistics, the Product Name : Dell Inspiron 1720 (Core2 Duo5450! Cate"or# : $aptops %rand : Dell Price &an"e : &s' 65523 Product Name : Dell (ostro 1500 (Core2 Duo 7500! Cate"or# : $aptops %rand : Dell Price &an"e : &s' 6615) Product Name : Dell *P+ 1330 (Core2Duo7100! Cate"or# : $aptops %rand : Dell Price &an"e : &s' ,0-470 `) company is reliant on a few large suppliers, and to an extent is locked in for periods of time (i.e. unable to switch supply dues to the lack of large suppliers in the World). Opportunities:- • Kevin Rollins replaced Michael Dell in 2004 as Dell's Chief Executive Officer. Dell remained the company's Chairman. Despite founder Dell's massive success, new blood and a change in management thinking could lead the company into a new, even more profitable period. Dell was born in 1965, and founded Dell in 1984 with $1000 whilst studying at the University of Texas. He became the youngest Fortune 500 CEO in 1992, and will be a tough act to follow. • Dell is pursuing a diversification strategy by introducing many new products to its range. This initially has meant good such as peripherals including printers and toners, but now also included LCD televisions and other non-computing goods. So Dell competes against iPod and other consumer electronics brands. • Dell is making and selling low-cost, low-price computers to PC retailers in the United States. The PC's are unbranded and should not be recognized as being Dell when the consumer makes a purchase. Rebranding and rebadging for retailers, although a departure for Dell, gives the company new market segments to attack with the associated marketing costs. Threats:- • The single biggest problem for Dell is the competitive rivalry that exists in the PC market globally. As with all profitable brands, retaliation from competitors and new entrants to the market pose potential threats. Dell sources from Far Eastern nations where labour costs remain low, but there is nothing stopping competitors doing the same - even sourcing the same or similar components from the same or similar suppliers. Remember, Dell is a PC maker, not a PC manufacturer. • Dell, being global in its marketing and operations, is exposed to fluctuations in the World currency markets. Although it is a very lean organization, orders do have to be placed some time ahead due to their size or value. Changes in exchange rates could leave the company exposed to potential loses in parts of its supply chain. `, 3. RESEARCH METHODOLOGY 3.1 Introduction: Research is finding something again. It is different from discovery or invention, it is to find the existing facts and analysis them. So, the basic motive is to study the existing problem and try to find the solution, if any or to search out better options, if available. A research can be done by both ways, exploratory and descriptive, as per the need. Here the research has done descriptive research to know about the buying behavior of Laptops and also particular brand they are using. 3.2 Research design: Research is designed in the way that it covers all the aspects of set objectives and serves the purposes. It is a descriptive research to find out the customer buying behavior for Dell laptops. There are two types of research methods: 1. Qualitative approach 2. Quantitative approach 1. Qualitative approach: It is a research that addresses marketing objectives through techniques to provide elaborate interpretations of market phenomenon without depending on numeric measurement. 2. Quantitative research: It is based on empirical assessments that involves measurement and analysis, of mathematic and statistics. It is more analytical in nature. 3.3 Sample profile: Sample is collected from different persons by random sampling method. Sample size is 50 and it has been collected from various persons in the campus. Most of them are not interested in giving the information are to fill the questionnaires. `10 Although it is very less percentage of the population size, but it still represents the population. As customers have been give clear information about the products they using. 3.4 Methods of data collection: Primary source:- In this study the responses was collected with the help of the schedule administered to the customers of Dell laptops. Schedule is the main primary source of data for this research work. The primary data has been collected in three phases. In the first phase, the purpose and objective of the study are explained to them and requested to go through the schedule thoroughly. In the second phase doubts of the respondent about the contents of the scheduled, if any are clarified. In the third phase, the filled in schedules are collected from the respondents. 3.5 Tools of data collection: A schedule with a set of questions was constructed and administered to the sample employees of the organizations to elicit first hand information with regard to customer requirement levels. 3.6 Tools for analysis : The study was undertaken by meeting different persons for collecting the data. The data collected through the scheduled from primary sources have been processed by sample space by serving questionnaires to them and Z-Test, correlation & regression tools are used for analysis. `11 4. DATA ANALYSIS As the study goes on the Consumer buying behavior in the field of Laptops, by going to different persons and asked them what are the factors that effected or considered while buying the laptop. In the study we went to nearly 60 members and out of them 50 members had given their data which they are using. 4.1 Analysis: Considerations: - In our research from the data which we collected through questionnaire we found that • 25% of consumers considered the Brand of the laptop. • 2% of consumers considered the Price of the laptop. • 12% of consumers considered the Configuration of the laptop. • 61% of consumers considered all the above factors of the laptop. 25. 2. 12. 61. Considerations %rand Price Con/i"uration 0l t1e a2o3e `12 Major Use:-In our research from the data which we collected through questionnaire we found that • 20% of consumers use the laptop for Surfing. • 12% of consumers use the laptop for playing Games. • 56% of consumers use the laptop for Education purpose. • 12% of consumers use the laptop for other purposes. Z-TEST:- We used Z-test for analyzing the primary data which we had collected through Questionnaire. In this test we tried to calculate whether there are any significant changes in between the buying behavior of Males and Females. We calculated the means and standard deviations of males and females individually. MALE FEMALE FACTORS MEAN STD MEAN STD &e/erence 1'12 1'046606237 0')2 0',07),611, 4eatures 1'64 1'255143265 1'44 1'3)312)15 %rand 1',6 0'710362)54 2 0'56465,703 Price 1'7 0'7775701) 1'72 0'7172)1502 Table 1 20. 12. 56. 12. Major Use +ur/in" 5ames 6ducation 7t1ers `13 By using the Mean and Standard deviation values we calculated Z value by using the formula Z= |X1-X2| / Sqrt((SD1^2 / N1)+(SD2^2 / N2)) Where X1 is the mean of male consumers, SD1 is the standard deviation of male consumers, N1 is the sample size, X2 is the mean of female consumers, SD2 is the standard deviation of female consumers, N2 is the sample size. FACTORS Z VALUE CRITICAL VALUE S/NS &e/erence 1'53 1',6 N+ 4eatures 0'757 1',6 N+ %rand 0'311 1',6 N+ Price 0'133 1',6 N+ S- Significant Change NS- No Significant Change Table 2 4.2 Interpretations and findings: Z- Test • In this we assumed the hypothesis as “There is no significant change in between the perceptions of Male and Female” . • From the table 2 we found that all Z values {1.53, 0.757, 0.311 and 0.133} are less than critical value i.e. 1.96 • Hence the hypothesis is accepted. • So we can interpret that there is no significant change in any factor between Males and females in buying a Dell laptop. `14 5. Conclusion We studied and analyzed the consumers buying behavior of DELL laptops with respect to male and female perceptions and we conclude that there is no significant difference between their perceptions in buying a Dell laptop. 5.1 Limitations: This schedule used for the purpose of collecting information from the respondent have the following limitations. • In the process of data collection some of the respondents have expressed unwillingness in answering the schedule. • The information collected from different customers may not be always exact. • The present study is confirmed to sample of customers using Dell laptops. 5.2 Recommendations and Suggestions: • It needs to concentrate more on its advertising. • They have to provide some promotions so that they can sell more laptops to the consumers and can regain their position. • Needs to decrease the cost of the products. The consumers always expect an efficient product at a cost effective price. • It also needs to improve after sales service to the delight of the customers. `15 6. REFERANCES • Retrieved from “Laptop-Wikipedia, the free encyclopedia” at 12.24 PM on 8 Nov 2013 http://en.wikipedia.org/wiki/Laptop • Retrieved from “What is DELL?- An introduction to Dell Computer corporation and its History” at 12.45 PM on 8 Nov 2013 http://what-is-what.com/what_is/dell.html • Retrieved from “Dell Inc. Company Profile-Yahoo! Finance” at 14.28 PM on 9 Nov 2013 http://biz.yahoo.com/ic/13/13193.html • Retrieved from “Dell Laptops-Compare Dell Laptop Price Online India” at 16.02 PM on 10 Nov 2013 http://www.naaptol.com/top-brands/dell/laptops.html • Retrieved from “Dell Monitors price- Compare N Buy Dell LCD monitor prices in India” at 16.28 PM on 10 Nov 2013 http://www.naaptol.com/top-brands/dell/monitors.html • Retrieved from “Dell Desktop PCs| Computer Price- Compare Dell Computer| Desktop PCs Price In India” at 16.42 PM on 10 Nov 2013 http://www.naaptol.com/top-brands/dell/desktop_pcs.html • Retrieved from “Dell Projectors- Compare Dell Projectors Price Online India” at 17.12 PM on 10 Nov 2013 http://www.naaptol.com/top-brands/dell/projectors.html • Retrieved from “Dell Mobile- Compare Dell Mobile Phone Price Online India” at 17.28 PM on 11 Nov 2013 http://www.naaptol.com/top-brands/dell/mobile_pda_and_smartphones.html • Retrieved from “Dell SWOT” at 17.28 PM on 12 NOV 2013 http://marketingteacher.com/swot/dell-swot.html `16 7.QUESTIONNAIRE CONSUMER BUYING BEHAVIOUR OF DELL LAPTOPS Name: .......................................... Occupation: .................................... Age: ....................... PRODUCT SL.N O Questionnaire Strongly Agree (5) Agree (4) Neither (3) Disagree (2) Stron gly Disag ree (1) 1. Do you think popularity of the brand influences you in buying dell laptop? 2. Do you think dell brands are better than other company brands? 3. Do you think You will see battery life while buying dell laptop? 4. Do you think You will see operating system while buying dell laptop? 5. Do you think You will check the processor while buying? PLACE SL.NO Questionnaire Strongly Agree (5) Agree (4) Neither (3) Disagree (2) Stron gly Disag ree (1) 1. Do you prefer to go check out the dell product in store and then decide buying the dell laptop? 2. Do you think student relay more on laptop? 3. Is staff assistance during goods purchase good? 4. Are wide ranges of products available? 5. Is shop ambience attractive? `17 PRICE SL.NO Questionnaire Strongly Agree (5) Agree (4) Neither (3) Disagree (2) Stron gly Disag ree (1) 1. Do you think your budget plays a major role that influences you in buying laptop? 2. Do you think discount offers influence you more in buying dell laptop? 3. Do you think You will see price, design, offer while buying? 4. The prices effect your decision of buying the laptop? 5. Do #ou t1in8 desi"n and st#le o/ laptops is t1e ma9or /actor t1at in/luences #ou in 2u#in" laptops: PROMOTION SL.NO Questionnaire Strongly Agree (5) Agree (4) Neither (3) Disagree (2) Stron gly Disag ree (1) 1. Do you think celebrities and brand ambassadors create the impact of demand in buying the dell laptop? 2. Do you think physical media (newspapers, magazines, pamphlets etc.) helps you in receiving updated information about various details of different dell laptop? 3. Do you think broadcast/electronic media (radio, television, website, email etc.) helps you in receiving updated information about various details of different dell laptop? 4. Do you think you will relay more on customization of the product? 5. Is staff behavior courteous and friendly? `1) GENERAL SL.NO Questionnaire Strongly Agree (5) Agree (4) Neither (3) Disagree (2) Stron gly Disag ree (1) 1. Do you think it’s better to relay on your friend’s advice in buying the dell laptop? 2. Do you think other brands are better than dell brand? 3. Do you see innovation in the product? 4. Do you see service of the product? 5. Do you already purchased dell product .are you satisfied? Thank You for Your Feedback