Factors Influencing Mobile Phone Purchasing Decision in Delhi

Abstract

Purpose: Market share of various brands had sharply declined over time and many new entrants had disrupted the market over the observation time period from 2013- 2020. This project focuses on analysing the stability of brands market share in Indian mobile phone industry using various indices, Determine the factors that influence the mobile phone purchasing decision among Delhi’s people by using principal component analysis and analysing the impact of marketing strategy of various brands on their market share in the mobile phone industry.

Design/Methodology/Approach: Descriptive statistics, Growth Trend, Growth Trend (Year-on-Year), Herfindahl Hirschman Index and Instability Index were used for analyzing the stability of market share over time. Multiple Regression, Principal component analysis, and Multinomial Regression were used for determining the factors that influence the mobile phone purchasing decisions.

Findings: The results show that the mobile phone industry in India is very unstable and has seen various ups and downs since 2013-2020. There’s been a drastic decline in market share of Nokia and a n acute increase in market share of Xiaomi. Cheap devices with latest specs may be a reason for rise of Xiaomi in India. The results of survey show us that there are total 13 factors that influence the purchasing decision of an individual and to reduce the number of factors in our model we performed PCA which gave us 5 components that captured the features of all 13 variables in just 5 components.

Paper Type: Empirical Research Paper