Chapter 1) INTRODUCTION

(1.1)History

2010

On 6 April 2010 Xiaomi was co-founded by Lei Jun and six partners:

 Lin Bin, vice president of the Google China Institute of Engineering

 Dr Zhou Gunging, senior director of the Motorola Beijing R&D center
 Liu De, department head of industrial design at the University of Science and
Technology Beijing
 Li Wanqiang, general manager of Kingsoft Dictionary
 Wong Kong-Kat, principal development manager
 Hong Feng, senior product manager for Google China

In the first round of funding, institutional investors included Temasek Holdings, IDG Capital,
Qiming Venture Partnersand Qualcomm.

On 16 August 2010, Xiaomi officially launched its first Android-based firmware MIUI. It
resembles Samsung's TouchWiz and Apple's iOS

2011

The Xiaomi Mi 1 smartphone was announced in August 2011. It has Xiaomi's MIUI firmware.
The device could also be installed with stock Android.

2012

In August 2012 Xiaomi announced the Xiaomi Mi 2 smartphone.

2013

On 24 September 2013 Xiaomi sold over 10 million Mi 2 phones.

On 5 September 2013, Xiaomi CEO Lei Jun announced plans to launch an Android-based 47-
inch 3D-capable Smart TV, which will be assembled by Sony TV manufacturer Wistron

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Corporation of Taiwan. The company explained the choice as to take advantage of Wistron's
skill as a supplier of Sony.

In September 2013, Xiaomi announced its Mi 3 phone.

On 25 September 2013, Xiaomi announced plans to open its first service centre in Beijing.

By October 2013 Xiaomi was the fifth-most-used smartphone brand in China.

In 2013 it sold 18.7 million smartphones.

2014

In 2014 Xiaomi announced its expansion outside China, with their first international
headquarters in Singapore. Future product launches and activities in the region will be set up
there. Following Singapore, the company opened in Malaysia, Philippines and India, and plans
to enter Indonesia, Thailand, Russia, Turkey, Brazil and Mexico in the following months.

On 21 February 2014 Xiaomi's Redmi and Mi 3 phone were released in Singapore. The Xiaomi
Mi 3 batches were sold out within 2 minutes of the opening day sale in Singapore.

On 17 March 2014, Redmi Note phablet was announced by Xiaomi CEO Lei Jun.

In April 2014 Xiaomi purchased the Internet domain mi.com for a record US$3.6 million, the
most expensive domain name ever bought in China, replacing xiaomi.com as the official
Xiaomi domain.

In November 2014 Xiaomi said it would invest US$1 billion in television content building.

In December 2014 Xiaomi completed a round of equity financing led by Hong Kong-based
technology fund All-Stars Investment Limited, a fund run by former Morgan Stanley analyst
Richard Ji raising over US$1 billion, with a valuation of more than US$45 billion making it
one of the most valuable private technology companies in the world.

The company sold over 60 million smartphones in 2014.

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2015

In April 2015 Xiaomi announced it would make its Mi devices available through two of India's
major e-commerce sites and through offline retailers for the first time.

On 23 April 2015, Xiaomi CEO Lei Jun and VP Hugo Barra came together to announce a new
smartphone named Mi 4i in India, the first phone to be launched in India before any other
country. The Xiaomi Mi Band was also launched in the same event.

On 27 April 2015, it was reported Rattan Tata had acquired a stake in Xiaomi.

On 30 June 2015, Xiaomi announced its expansion into Brazil with the launch of locally
manufactured Redmi 2; it is the first time the company assembled a smartphone outside of
China.

2016

On 24 February 2016, Xiaomi launched the Mi 5 smartphone.

On 9 March 2016, Xiaomi launched its Redmi Note 3 in India. It was a ground-breaking
smartphone at the time in the budget segment, and was well received by Indian customers. It
made record sales on the year, and Xiaomi brand name continued to grow.

On 10 May 2016, Xiaomi launched the Mi Max.

Shortly after starting operations in Brazil the company left the country in the second half of
2016.

In July 2016 Chinese artists as Liu Shishi, Wu Xiubo and Liu Haoran became the first
ambassadors of Xiaomi's Redmi series in China.

In August 2016 Xiaomi entered Bangladesh via Solar Electro Bangladesh Limited.

In September 2016 Xiaomi's cell phones became officially available in the European Union
through their partnership with ABC Data.

On 20 February 2017, Xiaomi officially launched in Pakistan and brought its Mi and Redmi
Note line-up to the country.

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On 19 April, Xiaomi launched Mi 6, its flagship phone at the time.

In May, Xiaomi opened two MI Home stores; one in Bangalore (India) and one in Bangladesh.
It is the first of several planned for the region.

On 25 May, Xiaomi released Mi Max 2.

On 26 August, new MIUI v9 alongside Mi 5x has been released.

On 31 August, Xiaomi opened its first flagship Mi Store in Faisalabad, Pakistan.

On 5 September Xiaomi released Mi A1, which is the first Android One smartphone under the
slogan: Created by Xiaomi, Powered by Google. In the event key note Xiaomi stated they
started working with Google for the Mi A1 Android One smartphone almost six months ago.
An alternate version of the phone is also available with MIUI and is known as MI 5X.

In September Xiaomi released Mi MIX 2

In October, the EU's first Mi Store has been opened in Athens, Greece.

On 7 November, Xiaomi started operating in Spain, making available the Mi A1 and Mi Mix
2 smartphones.

In Q3 2017, Xiaomi overtook Samsung to become the number one smartphone brand in India.
Xiaomi has sold 9.2 million units during this period.

2018

On 20 February, Xiaomi opened their first Mi Store in the Philippines.

In March 2018, at China's annual legislative session in Beijing, Xiaomi CEO Lei Jun
announced that Xiaomi has "always been considering entering the US market" and will launch
in the US smartphone market by late 2018 or early 2019. Xiaomi already sells assorted items
in the US such as power banks and Bluetooth speakers.

On 3 April 2018, Xiaomi launched the Mix 2S model which is a successor of Mix 2.

On 25 April 2018, Xiaomi launched the Mi 6X, a successor of Mi 5X.

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On 22 May 2018, Xiaomi will open, in Paris, its first French store.

On May 3, 2018, Xiaomi filled to go public on the Hong Kong Stock Exchange and aims to
raise $10 billion in IPO which is expected to be the world’s biggest IPO raise since 2014.

On May 3. 2018, Xiaomi announced in partnership with 3 (telecommunications) to sell

smartphones in the United Kingdom, Ireland, Austria, Denmark, and Sweden

In May 2018, Xiaomi began selling some of their smart home products in the United States
through Amazon.

In September 2018, Xiaomi launched its 4th 'Mi Home' experience store in India. They also
launched their products in the UK, offering UK customers to purchase without customs fees.

Etymology

Xiaomi is the Chinese word for "millet”. In 2011 its CEO Lei Jun suggested there are more
meanings than just the "millet and rice." He linked the "Xiao" part to the Buddhist concept that
"a single grain of rice of a Buddhist is as great as a mountain," suggesting Xiaomi wants to
work from the little things, instead of starting by striving for perfection, while "mi" is an
acronym for Mobile Internet and also Mission Impossible, referring to the obstacles
encountered in starting the company. He also stated that he thinks the name is cute. In 2012
Lei Jun said that the name is about revolution and being able to bring innovation into a new
area. Xiaomi's new 'Rifle' processor has given weight to several sources linking the latter
meaning to the Communist Party of China's "millet and rifle" (小米加步枪) revolutionary
idiom during the Second Sino-Japanese War.

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Business model

A Xiaomi Exclusive Service Centre for customer support in Kuala Lumpur.

Lei Jun, Xiaomi's CEO, said that the company prices the phone almost at bill-of-material prices
without compromising the component quality and performance compared to other premium
smartphones It also profits by selling phone-related peripheral devices, smart home products,
apps, online videos and themes. According to Xiaomi's Hugo Barra in 2014, the company sees
hardware sales as a means of delivering software and services in the long term, "We are an
Internet and a software company much more than a hardware company." However, financial
data available at the time indicated that this is either wishful thinking or plans for the far future:
94% of the company's revenue came from mobile phone sales, an even higher proportion than
Apple.

At first, to reduce overhead costs, Xiaomi did not own any physical stores, selling exclusively
from its online store. In recent years, they have opened 54 brick and mortar stores to combat
the strategies of other low-cost competitors in Chinese markets. It also did away with traditional
advertising and relies on social networking services and word-of-mouth to publicise its
products.

By keeping a tight control over its stock, Xiaomi is able to place cheaper batch orders as
demand dictates. Limited availability flash sales ensure that supply never outstrips demand and
helps promote its products. In contrast, traditional OEMs incur large upfront productions costs,
which must be recouped by selling prices, in order to ship phones, some of which may not sell,
out to retailers all around the world.

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Xiaomi say that they listen closely to customer feedback, having them test out upcoming
features themselves, and building an extensive online community. Lei Jun described it this
way, "When I was with Kingsoft, I had the opportunity to work with Nokia and Motorola, two
mobile phone giants of their time. One day, I pointed out to their R&D boss, some inadequacies.
After that, they merely acknowledged my input, but never acted upon what I had said. So I
thought to myself, if I make a phone, you can tell me anything you wish for it or what's wrong.
If it is justifiable, we will work on it immediately. I'll give you an update every week and you
may even see your wishes come true within a week." In practice, Xiaomi's product managers
spend a lot of time browsing through the company's user forums. Once a suggestion is picked
up, it is quickly transferred to the engineers. Therefore, features can turn from mere concept to
shipping products within a week. The company then ships a new batch of phones out every
week on Tuesday at noon Beijing time, containing the new software builds and possible minor
hardware tweaks. Xiaomi calls this process "design as you build."

According to the patent landscape report published in December 2016 by a patent research and
analytics firm GreyB Services Xiaomi owns 6989 patents with more than 90% of patents
filed/acquired after 2012. The surge in number of patents was due to aggressive patent
acquisition/licensing deals with many companies including Broadcom, Intel, and Microsoft.
The patent acquisition was a strategic move by Xiaomi to strengthen its weak patent portfolio
aligned with its global expansion plan to create a defence against patent lawsuits.

Xiaomi's mascot is a white rabbit wearing an Ushanka (known locally as a "Lei Feng hat" in
China) with a red star and a red scarf around its neck.

Controversies

GPL violation

Xiaomi was unfavourably covered for its non-compliance with the terms of the GNU GPL. The
Android project's Linux kernel is licensed under the copyleft terms of the GPL, which requires
Xiaomi to distribute the complete source code of the Android kernel and device trees for every
Android device it distributes. By refusing to do so, or by unreasonably delaying these releases,
Xiaomi is operating in violation of intellectual property law in China, as a WIPO state
Prominent Android developer Francisco Franco publicly criticized Xiaomi's behaviour after

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repeated delays in the release of kernel source code. Xiaomi has previously pledged to comply
with the GPL in a timely fashion but has since reneged.

Comparisons with Apple Inc.

Xiaomi has been compared to the American corporation Apple Inc., as reviewers found some
of Xiaomi's phones and tablets similar in appearance to Apple's In addition, the marketing
strategy of Xiaomi is at times described as riding on the back of the "cult of Apple". It is
reported that, after reading a book about Steve Jobs in college, Xiaomi's chairman and CEO,
Lei Jun, carefully cultivated a Steve Jobs image, including jeans, dark shirts, and Jobs's
announcement style at Xiaomi's earlier product announcementsGiven the above, he was
categorized as a "counterfeit Jobs."

In 2012, the company was said to be counterfeiting Apple's philosophy and mindset In 2013,
critics debated how much of Xiaomi's products were innovative and how much of their
innovation was just really good public relations. Others point out that while there are
similarities to Apple, the ability to customize the software based upon user preferences through
the use of Google's Android operating system sets Xiaomi apart

During the Mi 4 unveiling conference in 2014, the presentation slides used Apple's iconic "One
more thing..." slide before introducing the Mi Band; it was the only English language slide in
the whole presentation.

Xiaomi has been also known for their hunger marketing tactics, which Apple also uses. "Sold
out in just 50 seconds!" This comment is what an article said when Xiaomi released their latest
smart phone, Mi Note 2, and it made more people focus on their new product. When Xiaomi
releases new products, they make the shortest time record every time they sold out the new
item. Their new products are only available for purchase on their official website, people who
pre-registered could get a chance to make a purchase.

State administration of radio, film, and television issue

In November 2012, Xiaomi's smart set-top box stopped working one week after the launch due
to the company having run afoul of China's State Administration of Radio, Film, and
Television. The regulatory issues were overcome in January 2013.

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Hugo Barra

In August 2013, the company announced that it was hiring Hugo Barra from Google, where he
served as vice president of product management for the Android platform. Barra has declined
to comment on the timing of the Google relationships, and stated that he had been in talks with
Xiaomi for over a year prior to announcing the move. He will be employed as vice president
of Xiaomi to expand the company outside of mainland China, making Xiaomi the first company
selling smartphones to poach a senior staffer from Google's Android team Barra's focus was to
help Xiaomi grow internationally. Barra quit his position in January 2017 to join Facebook as
VP of virtual reality

Privacy concerns

Xiaomi's cloud storage service Mi Cloud stores all the user data in its servers located in China.
There were also reports that Xiaomi's Cloud messaging service sends some private data like
call logs and contact information to Xiaomi servers. Xiaomi later released a MIUI update that
made cloud messaging optional, no private data is sent to Xiaomi servers if the cloud messaging
service is turned off, as Xiaomi claimed.

In October 2014, Xiaomi announced that they are setting up servers outside of China for
international users citing improved services and compliance to regulations in several nations
Around the same time, the Indian Air Force issued a warning against Xiaomi phones, stating
that they were a national threat as they sent user data to an agency of the Chinese government.
In September 2016, Thijs Broen ink, a computer science student, suspected a pre-installed app
named Analytics Core in Xiaomi phones. Upon further investigation Thijs Broenink reported,
through a blog post, that Analytics Core can send device information, including IMEI, MAC
address, Model, and other parameters, to Xiaomi servers. He also revealed Xiaomi phones
having a backdoor allowing installation of any app without user approval. The veracity of his
claims has yet to be verified.

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Sales numbers

The Taiwanese Fair Trade Commission had investigated the flash sales and found that Xiaomi
had sold fewer smartphones than advertised. In December, 3 separate flash sales were
investigated. In those flash sales Xiaomi claimed that the number of smartphone sold was
10,000 units each for the first two sales, and 8,000 units for the third one. However, FTC had
investigated the claims and found out that Xiaomi only sold 9,339 devices in the first flash sale,
9,492 units in the second one, and 7,389 for the third. It was found that during the first flash
sale, Xiaomi had given 1,750 priority ‘F-codes’ to people who could place their orders without
having to go through the flash sale, thus diminishing the stock that was publicly available. The
FTC fined Xiaomi NT$600,000

Temporary ban in India

On 9 December 2014, the High Court of Delhi granted an ex prate injunction that banned the
import and sale of Xiaomi products in India. This injunction was issued in response to a
complaint filed by Ericsson in connection with the infringement of its patent licensed under
FRAND (Fair, Reasonable and Non Discriminatory Licensing). This injunction issued by the
High Court was applicable until 5 February 2015, the date on which the High Court was
scheduled to summon both parties for a formal hearing of the case. On 16 December The Delhi
High Court granted permission to Xiaomi to sell its devices that are running on a Qualcomm-
based processor until 8 January 2010 Following this, Xiaomi held various sales on Flipkart
including on 30 December 2014. With this sale, the company received press coverage when
their flagship Xiaomi Redmi Note 4G phone sold out in 6 seconds. The judge extended the
division bench's interim order allowing Xiaomi to continue the sale of Qualcomm chipset-
based handsets until March 2018.

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1.2) Industry overview market scenario

A little more than a month after its IPO in Hong Kong, Chinese smartphone and consumer
electronics company Xiaomi reported a 68 percent revenue increase and $2.1 billion profit for
the second quarter of 2018, beating analyst expectations across the board.

Having sold 32 million smartphones in the quarter, Xiaomi’s revenue jumped to 45.2 billion
RMB ($6.6 billion), bringing its total for the first six months of 2018 to 79.65 billion RMB,
which is nearly 70 percent of the company’s revenue for the entire year of 2017.

According to IDC’s latest estimates, Xiaomi is currently the fourth largest smartphone maker
in the world, trailing only Samsung, Huawei and Apple. Notably, the company recently
surpassed Samsung to become the market leader in India’s booming smartphone market and
the company plans to further grow its footprint outside of its home market.

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Chinese smartphone maker Xiaomi's quarterly revenue soared due to strong demand in India
and other emerging markets but doubts remained on whether it can sustain the fast pace of
growth and its shares reversed early gains to end lower.

Xiaomi, which toppled Samsung Electronics as the top smartphone seller in the price-conscious
Indian market earlier this year, said on Wednesday in its first results as a listed firm that revenue
from overseas markets for the quarter ended June 30 more than doubled from the year-ago
period.

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The company started trading in July after a closely watched but disappointing initial public
offering that valued it at almost half the $100 billion (roughly Rs. 7 lakh crores) that industry
analysts had initially estimated.

"The overseas market opportunity is massive, which provides huge growth potential for Xiaomi
on both hardware and software," Fubon Research analyst Dany Wu said in a broker note.
"Despite the margin decline, we think this is a compromise for rapid expansion in its overall
product lines."

The company's gross margins dropped 2 percentage points to 12.5 percent as steady profits at
its Internet services business failed to offset declines in its hardware businesses, that includes
smartphones and Internet-connected devices such as smart TVs.

Xiaomi, which has gained sizeable market share in India by taking on Samsung and Apple, is
scheduled to start selling a new phone in the South Asian nation called Poco F1 ₹ 20,986 at the
end of this month. The company will sell the device only in India at first, underscoring the
market's importance to Xiaomi.

The phone packs a punch for the price, according to reviews in technology websites. The
cheapest version is expected to be sold at around $300 in India, more than double that of its
popular Redmi 5 model.

Xiaomi doesn't break out India sales. International revenue in the second quarter was CNY
16.4 billion, accounting for more than a third of total revenue.

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1.3]Major player in market

1.3.1) Huawei

Huawei Technologies Co., Ltd. is a Chinese multinational telecommunications equipment and

consumer electronics manufacturer, headquartered in Shenzhen. Ren Zhengfei, a former
engineer in the People's Liberation Army, founded Huawei in 1987. At the time of its
establishment, Huawei focused on manufacturing phone switches, but has since expanded to
include building telecommunications networks, providing operational and consulting services
and equipment to enterprises inside and outside of China, and manufacturing communications
devices for the consumer market. Huawei had over 170,000 employees as of September 2017,
around 76,000 of them engaged in research and development (R&D). It has 21 R&D institutes
in countries including China, the United States, Canada, the United Kingdom, Pakistan,
Finland, France, Belgium, Germany, Colombia, Sweden, Ireland, India, Russia, Israel, and
Turkey. As of 2017 the company invested US$13.8 billion in R&D, up from US$5 billion in
2013. In December 2018, Huawei's vice-chairperson and CFO Meng Wanzhou was arrested in
Canada on December 1, 2018, at the request of the United States, which accuses her of violating
US sanctions against Iran. The U.S. Department of Justice filed formal charges of fraud,
obstruction of justice, and theft of trade secrets against Huawei in January 2019.

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1.3.2) Oppo

Oppo Electronics Corporation, commonly referred to as Oppo, is a Chinese consumer

electronics and mobile communications company, known for its smartphones, Blu-ray players
and other electronic devices. A leading manufacturer of smartphones, Oppo was the top
smartphone brand in China in 2016 and was ranked No. 8 worldwide.

1.3.3) Vivo

Vivo Communication Technology Co. Ltd. (commonly referred to as Vivo, named after the
Esperanto word for "life") is a Chinese technology company owned by BBK Electronics that
makes smartphones, smartphone accessories, software, and online services. It was founded in
2009 in Dongguan, China. The company develops software for their phones such as the Vivo
App Store, iManager included in their proprietary Android-based operating system called Fun
touch OS. Vivo joined the ranks of the top 10 smartphone makers in the first quarter of 2015
with a global market share of 2.7%. With research and development centres in Shenzhen and
Nanjing, the company employs 1,600 R&D personnel as of January 2016.

1.3.4) Apple

Apple Inc. is an American multinational technology company headquartered in Cupertino,

California, that designs, develops, and sells consumer electronics, computer software, and
online services. It is considered one of the Big Four of technology along with Amazon, Google
and Facebook. Apple is well known for its size and revenues. Its worldwide annual revenue
totalled $265 billion for the 2018 fiscal year. Apple is the world's largest information
technology company by revenue and the world's third-largest mobile phone manufacturer after
Samsung and Huawei. In August 2018, Apple became the first public U.S. company to be
valued at over US$1 trillion. The company employs 123,000 full-time employees and
maintains 504 retail stores in 24 countries as of 2018. It operates the iTunes Store, which is the
world's largest music retailer. As of January 2018, more than 1.3 billion Apple products are
actively in use worldwide. The company also has a high level of brand loyalty and is ranked as
the world's most valuable brand. However, Apple receives significant criticism regarding the
labour practices of its contractors, its environmental practices and unethical business practices,
including anti-competitive behavior, as well as the origins of source materials.

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1.4) About of XIOMI MI

Xiaomi Corporation is a Chinese electronics company headquartered in Beijing. Xiaomi makes

and invests in smartphones, mobile apps, laptops, and related consumer electronics. Xiaomi
released its first smartphone in August 2011 and rapidly gained market share in China to
become the country's largest smartphone company in 2014. At the start of Q2 of 2018, Xiaomi
was the world's fourth-largest smartphone manufacturer, leading in both the largest market,
China, and the second-largest market, India. Xiaomi later developed a wider range of consumer
electronics, including a smart home (IoT) device ecosystem.

Xiaomi has 15,000 employees in China, India, Malaysia Singapore and is expanding to other
countries including Indonesia, the Philippines, and South Africa. According to Forbes
magazine, Lei Jun, the founder and CEO, has an estimated net worth of US$12.5 billion. He is
China's 11th richest person and 118th in the world Xiaomi is the world's 4th most valuable
technology start-up after receiving US$1.1 billion funding from investors, making Xiaomi's
valuation more than US$46 billion.

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Chapter 2 LITERATURE REVIEW
1)Andreoulakis ; G. Kunduz (2011) correlated the brand of mobile phone to users’ security
practices,. Users show different behavior in an array of characteristics, according to the brand
of the mobile phone they are using. As such, there is a categorization of areas, different for
each brand, where users are clearly lacking security mind, possibly due to lack of awareness.
Such a categorization can help phone manufacturers enhance their mobile phones in regards to
security, preferably transparently for the user.

2) Taj Zadeh Namin A. A. ; Rahmani Vahid ; Tajzadeh Namin Aidin (2012) analysed that the
process of deciding over (choosing) a brand may be influenced by situation and content. The
findings suggest a significant relationship between the variables “brand attitude”, “corporate
attitude”, and “product (cell phone) choice”. In addition, no significant relationship was found
between individual decision making processes (independent or mediated) and product choice.

3) Serkan Aydin, Gökhan Özer, Ömer Arasil, (2005) had focused on to measure the effects of
customer satisfaction and trust on customer loyalty, and the direct and indirect effect of
“switching cost” on customer loyalty. The findings of this study show that the switching cost
factor directly affects loyalty, and has a moderator effect on both customer satisfaction and
trust

4) Jonathan, Lee ,Janghyuk, Lee and Lawrence, Feick, (2001) analysed that moderating role of
switching costs in the customer satisfaction-loyalty link; and to identify customer segments
and to retain them. Thus the purposes of this paper are: to examine the moderating role of
switching costs in the customer satisfaction-loyalty link; and to identify customer segments
and then analyse the heterogeneity in the satisfaction-loyalty link among the different
segments. An empirical example based on the mobile phone service market in France indicates
support for the moderating role of switching costs. Managerial implications of the results are
discussed.

5) The Dream Catchers Group (2008) investigated if demographic variables or if telephone

features included on phones students already owned were predictive of young consumers'
perceptions of bundled features. In addition, this study set out to determine if there were any
significant differences in students' perceptions of bundled features across demographic
variables (rural vis-a-vis HBCU, gender, grade level, cellular telephone brand, major, and age).

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6) Oyeniyi, Omotayo Joseph - Abioudun, Abolaji Joachim (2010) emphasis on customer
loyalty and customer switching cost. Switching cost is one of the most discussed contemporary
issues in marketing in attempt to explain consumer behaviour. The present research studied
switching cost and its relationships with customer retention, loyalty and satisfaction in the
Nigerian telecommunication market. The study finds that customer satisfaction positively
affects customer retention and that switching cost affects significantly the level of customer
retention.

7) Rodolfo Martínez Gras ; Eva Espinar Ruiz (2012) highlight a new dimension in information
and technology with respect to teenagers in spain. The main objective of this article is to
analyse the relationship between Information and Communication Technologies and Spanish
adolescents. Specifically, researchers have studied, through qualitative methodology, the
characteristics of teenagers’ access and uses of technological devices. and analyzed the
purposes that motivate the utilization of Information and Communication Technologies,
highlighting a close relationship between technologies and peer communication and
entertainment. On the contrary, there is an under-utilization of all these devices for teaching
and learning purposes.

8) Wafa' N. Muhanna ; Awatif M. Abu-Al-Sha'r (2009) aims at investigating Jordanian

university undergraduate and graduate students' attitudes towards the learning environment
where cell phones are used as learning tools in classroom. The study comprised two
independent variables, level and gender, as covariates. The findings indicate that
undergraduates are more favourable to cell phone environment than graduate students. The
study also reveals that cell phone has more influence on male students than on female students.

9) Nasr Azad ; Ozhan Karimi ; Maryam Safaei (2012)had presented an empirical study to
investigate the effects of different marketing efforts on brand equity in mobile industry. The
results show that there is a positive and meaningful relationship between marketing mix efforts
and brand equity. In other words, more advertisements could help better market exposure,
which means customers will have more awareness on market characteristics. Among all mixed
efforts, guarantee influences more on brand equity, which means consumers care more on
product services than other features. Finally, among different characteristics of brand equity,
product exclusiveness plays an important role. In other words, people are interested in having
exclusive product, which is different from others.

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10) Nasr Azad ; Maryam Safaei (2012)states that there are many evidences to believe that
customers select their products based on brand name. Products also maintain their own
characteristics, which make them differentiable from others. In this paper, researchers have
present an empirical study to determine important factors influencing customers' purchasing
intend for cellular phones in capital city of Iran, Tehran. The results of the study show that
there are some positive relationships between exclusive name and quality perception, between
exclusive name and word of mouth advertisement, between quality perception and fidelity,
between word of mouth advertisement and brand name and between brand name image and
brand name.

11) Mehran Rezvani; Seyed Hamid Khodadad Hoseini; Mohammad Mehdi Samadzadeh
(2012) investigates the impact of Word of Mouth (WOM) on Consumer Based Brand Equity
(CBBE) creation. WOM characteristics such as, volume, valence, and source quality are
studied to find how intensely they each affect brand awareness, perceived quality, and brand
association. The results suggested that volume and valence, two elements of WOM, affect
CBBE and no significant relationship between source type and brand equity was seen.

12) Sany Sanuri Mohd. Mokhtar; Ahmed Audu Maiyaki ; Norzaini bt Mohd Noor (2011)
explores the relationship between service quality and customer satisfaction on customer loyalty
with regards to mobile phone usage among the postgraduate students of a university in
Northern Malaysia. The results show that both service quality and customer satisfaction
significantly affect the level of customer loyalty of mobile phone users in Malaysia. It was
therefore, recommended that mobile service providers should pay special attention to their
service quality and the factors that drive customer satisfaction.

13) Shakir Hafeez ; SAF Hasnu (2010) states that Customer satisfaction is a crucial element
for the success of all businesses. One of the biggest challenges for a market is how to satisfy
and retain the customers. This study is based on Mobilink’s prepaid customers. The findings
suggest that overall customer satisfaction and customer loyalty is comparatively low among
the customers of Mobilink. The Customer loyalty in Pakistan’s mobile sector is relatively low
because it is an emerging industry, new players are entering in this market and customers are
more fascinated to try the new service providers. However it is expected that when the industry
will be well established, the results will be more comparable to other studies.

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14) Shibashish, Chakraborty and Kalyan Sengupta (2008) endeavors to make a detailed study
on important demographic variables of customers affecting brand switching of customers. This
study will highlight pertinent aspects of prediction of switching proclivity of customers from
one service provider to another. Harsha de Silva, (2011), generally shows that adoption of
(primarily) mobile telephones has significant benefits not just to the adopter, but to the
community at large. In this context, the objective of the current article is to examine, from a
user perspective, the influences (as well as the interplay of these influences) on mobile phone
adoption by the poor in a selected set of countries in the emerging Asian region.

15) Brenda, Mak, Robert Nickerson and Henri Isaac (2009),investigates the factors affecting
the attitudes towards the social acceptance of mobile phones in public places and how this
attitude affects its usage Results of the analysis indicate that the attitudes about mobile phone
use in public places depend on country, and age factors. This attitude in turn significantly
affects the usage frequency of mobile phones. In addition, usage frequency also is affected by
gender and work status.

16) Arvind Sahay and Nivedita Sharma (2010) focused on brand relationships are indeed
important for different categories of young consumers; second, to investigate the effect of peer
influence, family influence, and brand relationships on switching intentions amongst young
consumers; and third, to look at the impact of price changes on switching intentions in the
context of brand relationships. Researcher’s results suggest that young consumers develop
relationships on all brand relationship dimensions.

20
Chapter 3 THEORATICAL BACKGROUND
Theories Marketing Kotler & Keller (2008:27) marketing is about to identifying and meeting
human and social needs. One of the shortest good definition of marketing is meeting needs
profitably. In the other theories Beckman et al. (1962:42) says marketing is essentially a
process like farming, manufacturing, mining or construction. As such basically functional in
character and may, therefore, be defined as the performance of all activities necessary ability,
effecting transfer of ownership of products, providing for their physical distribution, and
facilitating the entire marketing process. Based on this researcher can defined that Marketing
is getting the right product or service in the right quantity, to the right place, at the right time
and making a profit in the process, understanding customer and giving them what they want.

Consumer Behaviour Kotler & Keller (2008:172) considered that consumer behaviour is the
study of how individuals, groups, and organizations select, buy, use and dispose of goods,
services, ideas, or experiences to satisfy their needs and wants. Consumer behaviour involves
the use and disposal of products as well as the study of how they are purchased. Consumer
behaviour involves services and ideas as well as tangible products. In this process the consumer
evaluates a purchase depicted by the need recognition –realization of the difference between
desired situations that serves as a trigger for the entire consumption process (Engel et al.
1995:55). The researcher defined consumer behaviour is the study of individuals, groups, or
organizations and the processes they use to select, secure, use, dispose of products, services,
experience, or ideas to satisfy need and the impacts that these processes have on the consumer
and society.

Consumer Purchase Decision Kotler and Keller (2008:185) The Engle, Kollat and Blackwell
model shows consumers buying-decision process, based on the basic of consumer psychology
that reviewed play an important role in consumers actual buying decision. It indicates that
consumers pass through five stages: problem recognition, information search, evaluation of
alternatives, purchase decision, and post purchase behaviour. Clearly the buying process starts
long before the actual purchase and has consequence long afterward. However, consumer don’t
always pass through all five stages-they may skip or reverse some. For example when you buy
your regular brand of toothpaste, you go directly from the need to the purchase decision,
skipping information research and evaluation., and going directly from the problem recognition
to the purchase decision.

21
Culture

Kotler and Keller (2008:173) Culture, subculture, and social class are particularly important
influences on consumer buying behaviour. Culture is the fundamental determinant of a person’s
wants and behaviour. Through family and other key institutions, are influenced by beliefs,
knowledge, work language, and art. Culture can be considered as a lifestyle and passed on from
one generation to the next generation under the different culture, people may have their own
views of selves, or relationship to others. Marketers must closely attend to cultural values in
every country to understand how to best market their existing product and find opportunities
for new products.

Social

Kotler and Keller (2008:175) Social factors are the factors that comes from reference groups,
family, social roles, and status that influence the Consumer behaviour to make purchase
something. The researcher found that the social factors is the facts and experiences that
influence individuals personality, attitudes and lifestyle comes from people around.

Personal

Kotler and Keller (2008:177) Personal factors are the factors that using the characteristics of
each consumer that influence consumer behaviour they are age and stage In the life cycle,
occupation and economic circumstance, personality, and self-concept. Researcher defined that
personality is the set of traits and specific characteristics of each individual it is the product of
the interaction of psychological characteristics of the individual of something such as brand.

Psychological

Kotler and Keller (2008:182) Psychological factors influencing consumer behaviour and
divided into 4 categories: motivation, perception, learning as well as beliefs and attitudes. It
can be define that one of the definition of psychological is the process through which an
individual selects, organizes and interprets the information he/she receives in order to do
something that make sense.

22
Previous Research

Shahjehan (2012), The effect of personality on impulsive and compulsive buying behaviours:
investigate the impact and effect of personality on buying behaviour. The influence of
individual personality traits, that is, extraversion, agreeableness, conscientiousness, openness,
and neuroticism on impulsive and compulsive buying has been analysed. The effect of the age
and educational level has significant influence. The analysis presents interesting insight on the
aforementioned relationship. Durmas (2014), The impact of psychological factors on
consumer buying behaviour and an empirical application in Turkey. The purpose of this study
is by shedding light to the managers of founded and will be set up business and especially to
the marketing department, which provides to development of country and which leads that the
consumers are better known by them and better quality goods, services and ideas.

23
Chapter 4 RESEARCH METHODOLOGY

The data has been collected on the basis of the different sources in order to achieve
the object of the project.

(4.1) Objectives of study

(4.2.1) To study of various factor affecting consumer to purchase of XIOMI MI Phones

(4.2.2) To study the strength and weakness of the company.

(4.2.3)To study on demographic factor.

(4.2) Hypothesis

There is no significance difference between occupation and income with XIOMI MI

smartphones.

There is no significance difference between Age and gender with XIOMI MI Smartphones.

(4.3) Research design

 We would have used descriptive research design. Questionnaire is being prepared and
corrected the mistakes in it. Sent it to sample customers. Got 50 responses Analyzed the
data and kept it in a format. Interpreted the data and drawn the outputs. The final data is
stated in the form of graphs
(4.4) Data collection

 Primary Data
Primary data was collected by me with the help of questionnaires presented to 100 respondents.

 Secondary data
Secondary data was collected through Internet, Project reports and marketing books.

(4.5) Sampling frame

We are study in only Patan local area.

(4.6) sample size

50 samples are surveyed.

24
(4.7) Sampling methods

Non - Probability Convenience sampling for collecting Information.

(4.8) Data collection tools

We are used questionnaire as a research instrument which consisted of structured questions and
they were of close ended questions. We are used the questionnaire as instrument as they are
and asked closed ended questions as there was need for analysis and interpretation.

(4.9) Data analysis tools

Collected data would be analysed by pie chart, column chart, bar chart with frequency
distribution cross tabulation, chi square test and ANOVA test.

(4.10) Limitation of study

 Time limitation
 Geographical Constraint
 Responded Bias

25
1) GENDER FREQUENCY DISTRIBUTION

Table 5.1 Gender frequency

Frequency Percent Valid Percent Cumulative
Percent
1=Male 27 54.0 54.0 54.0
Valid 2=Female 23 46.0 46.0 100.0
Total 50 100.0 100.0

Chart 1 Gender frequency

INTERPRETATION:

The above graph and table shows that in this research project the male respondents are dominant one
.i.e. 54% respectively.

2) AGE FREQUENCY DISTRIBUTION

Table 5.2 Age Frequency

26
 Frequency Percent Valid Percent Cumulative
Percent
1=18-20 Years 10 20.0 20.0 20.0
2=21-25 Years 27 54.0 54.0 74.0
3=26-30 Years 8 16.0 16.0 90.0
Valid 4=31-35 Years 3 6.0 6.0 96.0

5=Above 36 Years 2 4.0 4.0 100.0

Total 50 100.0 100.0

Chart 2 Age frequency

Interpretation:

The above graph and table shows that in this research project the age group of 21-25 is more
dominant with 54% respectively. And above 36 years is use only 4%.

3) OCCUPATION FREQUENCY DISTRIBUTION

Table 5.3 Occupation frequency

Frequenc Percent Valid Cumulative
y Percent Percent

27
 1=Professional 7 14.0 14.0 14.0
2=Employee 7 14.0 14.0 28.0
3=Businessman 2 4.0 4.0 32.0
Valid 4=Student 30 60.0 60.0 92.0
6=Housewife 3 6.0 6.0 98.0
7=Any Other 1 2.0 2.0 100.0
Total 50 100.0 100.0

Chart 3 Occupation Frequency

Interpretation:

The above graph and table show that in this research project the people with student and
professional occupation is more dominant with 60% respectively and 14 % respectively .
4) EDUCATION FREQUENCY DISTRIBUTION

Education
Frequency Percent Valid Percent Cumulative
Percent

Valid 1=Under S.S.C. 3 6.0 6.0 6.0

28
 2=H.S.C. 7 14.0 14.0 20.0
3=Graduate 23 46.0 46.0 66.0
4=P.G. 16 32.0 32.0 98.0
5.00 1 2.0 2.0 100.0
Total 50 100.0 100.0

Chart 4 Education frequency

Interpretation: -
The above graph and table show that in this research project the Graduate and P.G. passed
people are more dominant with 43% respectively and 32% respectively. And under ssc
students are use only 6%.
5) Annual Income Frequency distribution

Annual Income
Frequenc Percent Valid Cumulative
y Percent Percent
1=1lac-2lac 25 50.0 50.0 50.0
Valid
2=3lac-4lac 11 22.0 22.0 72.0

29
 3=5lac-6lac 10 20.0 20.0 92.0
5=Above
4 8.0 8.0 100.0
7lac
Total 50 100.0 100.0

Chart 5 Annual income frequency

Interpretation: -

The above graph and table show that in this research project the household income of range
Rs.1 lac to 2 lac and Rs.3 lac to 4 lac are more dominant with 50% respectively and 22%
respectively. And 8% people are using XIOMI mi phone. Whose income are above Rs. 8lac.

6) XIOMI MI SMARTPHONES FREQUANCY DISTRIBUTON

Here we are gathering information regarding Xiomi Mi Smartphones so before knowing do people
use Xiomi Mi Smartphones we require knowing do they use non – Xiomi Mi Smartphones or not.

Do You Know about XIOMI MI Smartphone?

Frequency Percent Valid Percent Cumulative
Percent
Valid 1=Yes 49 98.0 98.0 98.0

30
 2=No 1 2.0 2.0 100.0

Total 50 100.0 100.0

Chart 6 XIOMI MI Smartphone frequency

Interpretation:

Here we have asked closed ended question and from the chart we can see that all the
respondents have Xiomi Mi Smartphones and also using this phones.

7).What impression come in your mind when you heard XIOMI MI Smart
phones ?

What Impression Come in your mind when you heard XIOMI MI

Smartphone?
Frequency Percent Valid Percent Cumulative
Percent
1=Good 14 28.0 28.0 28.0

Valid 2=Average 9 18.0 18.0 46.0

3=Satisfactory 20 40.0 40.0 86.0

31
 4=Excellent 7 14.0 14.0 100.0
Total 50 100.0 100.0

Chart 7 Impartation frequency distribution

Interpretation:

Generally customers are looking for good smart phones So Xiomi Mi Smartphones affects very
much to consumers satisfaction. Satisfaction level will show the product quality by different factors
40% respectively of responders are satisfied Xiomi Mi Smartphones. 28% respectively of
responders are highly satisfied to Xiomi Mi Smartphones. Overall we can see that Xiomi Mi
Smartphones is looking best as per different factor because most of users are satisfied with Xiomi Mi
Smartphones.

8). What are the factors do you consider most while you purchasing the
XIOMI MI
.
What are the factors do you consider most while you Purchasing the XIOMI MI
Smartphone?
Frequency Percent Valid Percent Cumulative
Percent

Valid 1=Brand Name 2 4.0 4.0 4.0

32
 2=Packaging 2 4.0 4.0 8.0
3=Quality 14 28.0 28.0 36.0
4=Price 9 18.0 18.0 54.0
5=Durability 8 16.0 16.0 70.0
7=Features 12 24.0 24.0 94.0
8=Design 3 6.0 6.0 100.0
Total 50 100.0 100.0

Chart 8 Factors frequency distribution

Interpretation:

33
This question defines the basis, which the customer considered while purchasing the Xiomi Mi
Smartphones. From this question we can find out that what are the basic physical product of the
company and its basic services to the customer.

Here we can see that most of the people considered quality of product and attractive features as the
best criteria for purchasing Xiomi Mi Smartphones , if is followed by, quality 28%, durability
packaging 4% respectively ,design 6% respectively, price 18 % respectively as a criteria for
purchasing Xiomi Mi Smartphones.

9).Through which advertisement medium you are aware about

[This question defines the reach of individual media used by For this XIOMI MI Smartphones question
we can see and measure the affordability of the media]

Through Which Advertisement medium you are aware about

Frequency Percent Valid Percent Cumulative
Percent
1=Television 5 10.0 10.0 10.0
2=Relatives 7 14.0 14.0 24.0
3=Friends 17 34.0 34.0 58.0
4=Newspaper 1 2.0 2.0 60.0
Valid
5=Social media 9 18.0 18.0 78.0

6=Word of Mouth publicity 9 18.0 18.0 96.0

7.00 2 4.0 4.0 100.0

Total 50 100.0 100.0

34
Chart 9 Advertisement frequency distribution

Interpretation:

Here in above chart we see that 34% respectively people have given preference given to Friend for
purchasing decision of Xiomi Mi Smartphones then 18 % respectively people have given preference
to social media and then 14% and 10% people have given preference to relatives and television from
above analysis can suggest the company should give more advertisement of television and television.

35
10.What you feel when you use/ seen/ XIOMI MI Smart phones?

What you feel when you use/seen/XIOMI MI Smart phones?

Frequency Percent Valid Percent Cumulative
Percent

1=Highly Satisfied 11 22.0 22.0 22.0

2=Satisfied 31 62.0 62.0 84.0

3=Neutral 6 12.0 12.0 96.0
Valid
4=Dissatisfied 1 2.0 2.0 98.0
6.00 1 2.0 2.0 100.0
Total 50 100.0 100.0

36
Chart 10 Feel to smartphone use frequency distribution

Interpretation: -
The above graph and table show that in this research project the people with satisfaction are
more dominant with 45% respectively.

11.Which of major products/Brands are you using?

[This is helpful in knowing what type of variety people prefer in non-geared scooters.]

Which of major Products/Brands are you using?

Frequenc Percent Valid Cumulative
y Percent Percent
1=Redmi 6 Pro 7 14.0 14.0 14.0
2=Redmi note 4 16 32.0 32.0 46.0
3=Redmi note 5
8 16.0 16.0 62.0
Valid pro
4=Redmi note 5 5 10.0 10.0 72.0
5=Redmi note 7 4 8.0 8.0 80.0
6=Redmi 6A 4 8.0 8.0 88.0

37
 7=Redmi Y2 6 12.0 12.0 100.0
Total 50 100.0 100.0

Chart 11 Major factor frequency distribution

Interpretation

In the above chart we can see that Redmi note 4 has the largest market share in Xiomi Mi
Smartphones and that after Redmi note 5 pro it has the largest market then it is followed by Redmi 6
pro and Redmi Y2 with 34% and 16 % respectively.

38
12. Rank the company as per your preference.

1) XIOMI
Frequency Percent Valid Percent Cumulative
Percent
1=Rank 1 32 64.0 64.0 64.0
2=Rank 2 10 20.0 20.0 84.0
3=Rank 3 4 8.0 8.0 92.0
Valid
4=Rank 4 3 6.0 6.0 98.0
5=Rank 5 1 2.0 2.0 100.0
Total 50 100.0 100.0

39
Chart 12. XIOMI Smartphone frequency distribution

Interpretation: -
The above graph and table show that in this research project the people with rank 1 for XIOMI
MI Smartphones are more dominant with 64% respectively .
2) VIVO
VIVO
Frequenc Percent Valid Cumulative
y Percent Percent
1=Rank 1 7 14.0 14.0 14.0
2=Rank 2 17 34.0 34.0 48.0
3=Rank 3 10 20.0 20.0 68.0
Valid
4=Rank 4 4 8.0 8.0 76.0
5=Rank 5 12 24.0 24.0 100.0
Total 50 100.0 100.0

40
Chart 13 VIVO Smartphone frequency distribution

Interpretation: -

The above graph and table show that in this research project the people with rank 2 for VIVO
Smartphone are more dominant with 34% respectively.

3)OPPPO

Oppo
Frequency Percent Valid Percent Cumulative Percent

1=Rank 1 5 10.0 10.0 10.0

2=Rank 2 11 22.0 22.0 32.0
3=Rank 3 17 34.0 34.0 66.0
Valid
4=Rank 4 5 10.0 10.0 76.0
5=Rank 5 12 24.0 24.0 100.0
Total 50 100.0 100.0

41
Chart 14 OPPO Smartphone frequency distribution

Interpretation: -
The above graph and table show that in this research project the people with rank 3for OPPO
Smartphone are more dominant with 34% respectively.

4) GIONEE:

Gionee
Frequency Percent Valid Percent Cumulative
Percent
1=Rank 1 3 6.0 6.0 6.0
2=Rank 2 1 2.0 2.0 8.0
3=Rank 3 8 16.0 16.0 24.0
Valid
4=Rank 4 20 40.0 40.0 64.0
5=Rank 5 18 36.0 36.0 100.0
Total 50 100.0 100.0

42
Chart 15 GIONEE Smartphone frequency distribution

Interpretation: -

The above graph and table show that in this research project the people with rank 4 for GIONEE
Smartphones are more dominant with 40% respectively.
5) SAMSUNG
Samsung
Frequency Percent Valid Percent Cumulative Percent

1=Rank 1 11 22.0 22.0 22.0

2=Rank 2 22 44.0 44.0 66.0
3=Rank 3 7 14.0 14.0 80.0
Valid 4=Rank 4 4 8.0 8.0 88.0
5=Rank 5 5 10.0 10.0 98.0
23.00 1 2.0 2.0 100.0
Total 50 100.0 100.0

43
Chart 16 SAMSUNG Smartphone frequency distribution

Interpretation: -

The above graph and table show that in this research project the people with rank 2 for
SAMSUNG Smartphone are more dominant with 44% respectively.

44
Cross tabulation
Gender * Age Crosstabulation
Count

Age Total

1=18-20 2=21-25 3=26-30 4=31-35 5=Above 36

Years Years Years Years Years

1=Male 8 15 3 1 0 27
Gender 2=Femal
2 12 5 2 2 23
e
Total 10 27 8 3 2 50

Occupation * Annual Income Crosstabulation

Count

Annual Income Total

1=1lac-2lac 2=3lac-4lac 3=5lac-6lac 5=Above 7lac

1=Professional 1 1 3 2 7

2=Employee 2 3 2 0 7

3=Businessman 0 2 0 0 2
Occupation
4=Student 21 4 4 1 30

6=Housewife 1 1 0 1 3

7=Any Other 0 0 1 0 1
Total 25 11 10 4 50

45
1)
H0: There is no significance difference between occupation and income with XIOMI MI
smartphones.

There is no significance difference between Age and gender with XIOMI MI Smartphones

H1: There is significance relation between effect of promotional scheme and Gender

Chi-Square Tests

Value df Asymp. Sig. (2-

sided)

Pearson Chi-Square 6.488a 4 .166

Likelihood Ratio 7.486 4 .112
Linear-by-Linear Association 6.052 1 .014
N of Valid Cases 50

a. 7 cells (70.0%) have expected count less than 5. The minimum expected
count is .92.

Here,
The calculated value is Greater than table value (Cal value > Table value) as that reason
decision is follow.
; Ho is rejected
; H1 is accepted
H1: There is significance relation between effect of promotional scheme and Gender

2)
H0: There is no significance relation between effect of promotional scheme and age group.

H1: There is significance relation between effect of promotional scheme and age group

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 29.698a 15 .013

Likelihood Ratio 26.766 15 .031

Linear-by-Linear Association 2.456 1 .117

N of Valid Cases 50

46
a. 21 cells (87.5%) have expected count less than 5. The minimum expected count is .08.

Here,
The calculated value is Greater than table value (Cal value > Table value) as that reason
decision is follow.
; Ho is rejected
; H1 is accepted
H1: There is significance relation between effect of promotional scheme and age group

Gender

Sum of Squares df Mean Square F Sig.

Between Groups 1.612 4 .403 1.678 .172

Within Groups 10.808 45 .240
Total 12.420 49

ANOVA
Annual Income

Sum of Squares df Mean Square F Sig.

Between Groups 17.830 5 3.566 2.961 .022
Within Groups 52.990 44 1.204

47
Total 70.820 49

FINDING:

 In research time we are finding that Honda bike & scooter is India largest selling non
–geared scooter and geared bike.
 Quality is the foremost criteria which the customer of HMSI consider while
purchasing Honda bike & scooter.
 All most the customers of Honda bike & scooter are satisfied with it.
 News paper is the most reachable media used by HMSI. fore the reach of advertising
media the customer.
 Honda service centre is easily available in the Indian market.
 Most of the customers of HMSI will recommend it to others.

48
Conclusion:
 Consumer satisfaction is the one of the most major part of the buying behavior.
 Company has to build strong brand awareness and credibility among its customers.
 Majorities of people are aware about its brand.
 Try to produces such vehicles that attract the customer.
 On technical base Honda is the best from others consumer prefer Honda bike due to
high resell value and low maintenance.
 Honda bike service station is excellent, careful with personal information and is value
for money.

49
Suggestions:
1. The most important media for consumer durables is television. So, they should go for
television advertisements rather going for newspaper, the television advertisements influences
more on the people. They should spend some expenditure for T.V. advertisements.

2. Being the price of the Honda’s high they should try to reduce prices because there are many
other competitors which can be selling at lower cost. If not, the sales may decrease.

3. More features should be added to the bikes according to the needs of the customer, because
their competitors are coming with new models. According to the competitors these people
should change the models or change the technology.

4. Company should give some incentives to the dealers for promoting the products of Honda.
They should not neglect dealers. They should select good dealers, which they can give
customer satisfaction.

5. Company should setup service canters at dealer level itself. They should train some
personnel for exclusive maintenance of these two wheelers. They should provide home service
to the customers. The personnel should be appointed by company to the dealers. The service
should be accurate.

50