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)

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 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.

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 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

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 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

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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.

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 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 3rd 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.

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 2.4 Description of Dell’s Products:

• Laptops

Product Name : Product Name : Product Name :

Dell Inspiron 1720 Dell Vostro 1500 Dell XPS 1330
(Core2 DuoT5450) (Core2 Duo T7500) (Core2DuoT7100)
Category : Laptops Category : Laptops Category : Laptops
Brand : Dell Brand : Dell Brand : Dell
Price Range : Rs. 65523 Price Range : Rs. 66158 Price Range : Rs. 90,470

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

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 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.

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 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.

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 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.

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 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

Considerations
Brand Price Configuration Al the above

25%

2%

61% 12%

• 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.

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Major Use:-In our research from the data which we collected through questionnaire we
found that

Major Use
Surfing Games Education Others

12%
20%

12%

56%

• 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
Reference 1.12 1.046606237 0.82 0.907896119
Features 1.64 1.255143265 1.44 1.38312815
Brand 1.96 0.710362854 2 0.564659703
Price 1.7 0.77757018 1.72 0.717281502
Table 1

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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

Reference 1.53 1.96 NS

Features 0.757 1.96 NS

Brand 0.311 1.96 NS

Price 0.133 1.96 NS

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.

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 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.

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 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

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 7.QUESTIONNAIRE
CONSUMER BUYING BEHAVIOUR OF DELL LAPTOPS

Name: .......................................... Occupation: .................................... Age: .......................

PRODUCT
Strongly Agree Neither Disagree Stron
Agree gly
SL.N Questionnaire Disag
O (5) (4) (3) (2) 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?

Do you think You will see battery life while buying dell laptop?
3.

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
Strongly Agree Neither Disagree Stron
Agree gly
SL.NO Questionnaire Disag
(5) (4) (3) (2) 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?

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 PRICE

Strongly Agree Neither Disagree Stron

Agree gly
SL.NO Questionnaire Disag
(5) (4) (3) (2) ree

(1)

1. Do you think your budget plays a major role that influences

you in buying laptop?

Do you think discount offers influence you more in buying

2. dell laptop?

Do you think You will see price, design, offer while buying?
3.

4. The prices effect your decision of buying the laptop?

Do you think design and style of laptops is the major

5. factor that influences you in buying laptops?

PROMOTION
Strongly Agree Neither Disagree Stron
Agree gly
SL.NO Questionnaire Disag
(5) (4) (3) (2) 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?
Do you think broadcast/electronic media (radio, television,
3. website, email etc.) helps you in receiving updated
information about various details of different dell laptop?

Do you think you will relay more on customization of the

4. product?

5. Is staff behavior courteous and friendly?

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 GENERAL

Strongly Agree Neither Disagree Stron

Agree gly
SL.NO Questionnaire Disag
(5) (4) (3) (2) ree

(1)
Do you think it’s better to relay on your friend’s advice in
1. buying the dell laptop?

Do you think other brands are better than dell brand?

2.

Do you see innovation in the product?

3.

Do you see service of the product?

4.

Do you already purchased dell product .are you satisfied?

5.

Thank You for Your Feedback

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