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This document appears to be a research paper submitted by a student named K.T.D. Nisansala for their Management Research Project module at University College Dublin in Ireland. The paper is 4,986 words and examines grey markets in the mobile phone industry in Sri Lanka. It includes a table of contents, literature review on grey markets, methodology section describing the research design, findings from data collection and analysis, and conclusions. Signatures from the student and supervisor indicate approval of the paper.
This document appears to be a research paper submitted by a student named K.T.D. Nisansala for their Management Research Project module at University College Dublin in Ireland. The paper is 4,986 words and examines grey markets in the mobile phone industry in Sri Lanka. It includes a table of contents, literature review on grey markets, methodology section describing the research design, findings from data collection and analysis, and conclusions. Signatures from the student and supervisor indicate approval of the paper.
This document appears to be a research paper submitted by a student named K.T.D. Nisansala for their Management Research Project module at University College Dublin in Ireland. The paper is 4,986 words and examines grey markets in the mobile phone industry in Sri Lanka. It includes a table of contents, literature review on grey markets, methodology section describing the research design, findings from data collection and analysis, and conclusions. Signatures from the student and supervisor indicate approval of the paper.
I declare that all materials included in this report are the end result of my own work and that due acknowledgements have been given in the bibliography and references to all sources be they printed, electronic or personal
The Declaration of the Student I declare that all materials included in this report are the end result of my own work and that due acknowledgements have been given in the bibliography and references to all sources be they printed, electronic or personal
The Approval of the Supervisor I am glad to approve this research paper which was done by K.T.D.Nisansala who was under the supervision of me regarding the management research project module of the B.Sc (Business Management) degree program, Batch 14.
Signature: .. Date: 18/03/2012 Mr. Gajaba Gunawardena Project Supervisor
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Table of Contents
Chapter 01 .................................................................................................................................. 1 Introduction ................................................................................................................................ 1 1.1 Research Topic ................................................................................................................. 1 1.2 Introduction to the topic ................................................................................................... 1 1.3 Background Study to the Research .................................................................................. 1 1.4 Research Problem (Problem Statement) .......................................................................... 6 1.5 Research Question ............................................................................................................ 6 1.6 Research Objectives (Significance of the Study) ............................................................. 6 Chapter 02 .................................................................................................................................. 7 Literature Review....................................................................................................................... 7 The Concept of Grey Markets ............................................................................................ 7 Distribution of Goods through Unauthorized Channels ......................................................... 7 Strategies that Manufacturers and Trademark owners have to craft for overcoming the Threats from Grey Markets .................................................................................................. 8 Grey Markets in the Mobile phone industry with particular reference to Sri Lanka. ............ 8 The Nature, Extent and the factors affecting mobile phone users shift to the Grey Market .. 8 Strategies for regulating smuggling of grey market ............................................................... 9 Chapter 03 ................................................................................................................................ 10 Methodology ............................................................................................................................ 10 3.1 Conceptual Framework .................................................................................................. 10 3.2 Population and Sampling ............................................................................................... 10 3.3 Instrumentation............................................................................................................... 11 3.3.1 Instruments for collecting primary data................................................................... 11 3.3.2 Instruments for collecting secondary data ............................................................... 11 3.4 Method of Data Presentation .......................................................................................... 11
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3.5 Method of Data Analysis ................................................................................................ 11 3.5.1 Data Analysis Framework ....................................................................................... 11 3.6 Validity and Reliability of the Data Related to the Research ........................................ 12 3.6.1 Validity and Reliability of Primary Data ................................................................. 12 3.6.2 Validity and Reliability of Secondary Data ............................................................. 12 3.7 Scope and Limitations .................................................................................................... 12 3.7.1 Scope of the Research .............................................................................................. 12 3.7.2 Limitations of the Research ..................................................................................... 12 Chapter 04 ................................................................................................................................ 13 Research Findings .................................................................................................................... 13 4.1 Data presentation ............................................................................................................ 13 4.2 Data Analysis ................................................................................................................. 22 4.2.1 General data analysis on the sample ........................................................................ 22 4.2.2 Data analysis related to the significance of the study. ............................................. 24 Chapter 05 ................................................................................................................................ 29 Concussion ............................................................................................................................... 29 References Bibliography Appendices Appendix 01: Annotated Bibliography Appendix 02: Questionnaire related to the Survey of the study Appendix 03: Plagiarism Test Certificate Appendix 04: Supervisors Comment Form
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List of Figures
Figure 4.1 age distribution of the sample................................................................................. 22 Figure 4.2 gender distribution of the sample ........................................................................... 22 Figure 4.3 geographic distribution of the sample .................................................................... 23
List of Tables Table 1.1 Mobile subscribers in Sri Lanka from 1992 to 2011(July) ........................................ 2 Table 1.2 Cumulative Number of Mobile Phones in Sri Lanka and its annual increment ........ 3 Table 1.3 Market shares of Top five Mobile Phone Brands (Approximate Values) ................. 4 Table 1.4 Sri Lankans Major importing percentage by origins ................................................ 5 Table 4.1 Data regarding the age category of the sample ........................................................ 13 Table 4.2 Data regarding the gender representation of the sample.......................................... 13 Table 4.3 Data regarding the representation of occupational type of persons in the sample .. 14 Table 4.4 Data regarding the representation of income level of persons in the sample .......... 14 Table 4.5 Data regarding the Geographical area of persons in the sample.............................. 14 Table 4.6 Data regarding the age distribution of the sample against the gender ..................... 15 Table 4.7 Data regarding the age distribution of the sample against the occupational type .... 15 Table 4.8 Data regarding the age distribution of the sample against the income level. .......... 15 Table 4.9 Data regarding the age distribution of the sample against the income level with mentioning the occupational type. ........................................................................................... 16 Table 4.10 Data regarding the age distribution of the sample against the geographic area related to the persons in the sample ......................................................................................... 16 Table 4.11 Data regarding first time users of a mobile phone in terms of the gender ......... 17 Table 4.12 Data regarding first time users of a mobile phone in terms of age category ...... 17 Table 4.13 Data regarding first time users of a mobile phone in terms income level .......... 17 Table 4.14 Data regarding the category of the mobile phone of the first time users ............... 18 Table 4.15 Data regarding the first time users of Phone with no Brand Name, no local agent and having no country of origin in terms of income ................................................................ 18 Table 4.16 Data regarding the first time users of Phone with no Brand Name, no local agent and having no country of origin in terms of geographical area ............................................... 18
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Table 4.17 Data regarding the factors affecting first time users to purchase a mobile phone in grey market .............................................................................................................................. 19 Table 4.18 Data regarding the price range of the mobile phone related to the first time users in the grey market. ................................................................................................................... 19 Table 4.19 Number of users who shifted towards grey markets in their last purchase ........... 19 Table 4.20 Number of users who shifted towards grey markets in their last purchase in terms of the age category ................................................................................................................... 20 Table 4.21 Number of users who shifted towards grey markets in their last purchase in terms of the geographic area .............................................................................................................. 20 Table 4.22 Data regarding the factors affecting users to shift towards mobile phone in grey market ...................................................................................................................................... 20 Table 4.23 Data regarding the price range of the mobile phone related to the Shifted users in to grey market. ......................................................................................................................... 21 Table 4.24 the awareness of TRCSL approval on the quality and the health safeguards relating to Mobile phones ........................................................................................................ 21 Table 4.25 Issues occur when increasing the number of mobile phones in Sri Lanka ............ 21 Table 4.26 Analysis on factor affecting mobile phone users to shift towards grey markets ... 26
List of Charts Chart 1.1 Mobile subscribers in Sri Lanka from 1992 to 2011(July) ........................................ 2 Chart 1.2 the number of mobile phones in Sri Lanka ................................................................ 3
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Acknowledgement It is a great pleasure to acknowledge this research paper to my dear sir, Mr. Gajaba Gunawardena in order to give him the best honor and respect for guiding me towards the victory path of the research study.
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Executive Summary This research is a study on Factors affecting mobile phone users to shift towards grey markets. The research problem of the study stated that mobile phone users in Sri Lanka visualized a significance trend of shifting towards mobile phones in grey markets since 2007 era. This problem statement leads the study for having a research question stated that What are factors that motivate mobile phone users to shift towards Mobile Phones in Grey Markets? The entire study depends on the research question and the research formulated objectives to get answers for the research question. This guided the study to solve the research problem of the study. The study was supported by a comprehensive literature review regarding the concept of grey markets and the other relevant marketing concepts were mentioned at the annotated bibliography of the study attached in the appendices. Mentioning on the methodology of the study, distributing questionnaires used as a survey method to collect primary data on the study and the data was analyzed according to a developed manner by using simple statistics in lights of the conceptual framework developed under Consumer Behavior Studies. As major findings of the study, the research status that there are factors other than low price levels motivate mobile phone users to shift towards mobile phones in grey markets and the study stated Offered Features as a highly motivating factor and the Appearances / Attractiveness as a moderate motivational factor. The study also discussed on the user awareness regarding governments regulatory approval on the health and safeguard conditions of mobile phones as well as users knowledge on the issues occur in relevant to the rapid development of the number of mobile phones in the country. The research study comprehensively discussed the purchasing behavior of mobile phone users in terms of their age, gender, income level etc. The research study was fulfilled its objectives and successfully answered to the research question which directed the entire study to solve the research problem.
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Chapter 01 Introduction 1.1 Research Topic Factors Affecting Mobile Phone Users to Shift towards Grey Markets 1.2 Introduction to the topic The Mobile Phone and the mobile wireless cellular technology are playing a major role in the modern society for fulfillment of the growing communication needs of the people. The term Mobile Phone in this study means only the Hand sets (Hand held sets), specifically excluding other mobile phone devices such as CDMA and Car phones. People in Sri Lanka have embraced the use of mobile phones so strongly, developing a phenomenon into a culture. The rapid and continuous growth of the use of mobile phones by Sri Lankans is seen by the phenomenal increase in the subscriber rate during the recent few years. In 2009 the rate was 69.8 per 100 persons and in 2010 it was 83.5 (Central Bank Annual Report, 2010, P.59). With the flooding of mobile phones related to grey markets in late 2007, users visualized an extremely intense tendency to shift towards Mobile Phones in Grey Markets (Lanka Business Online, 2010). That cause the rapid growth related to the mobile phone usage in the country. The research problem stated that most number of mobile phone users in Sri Lanka recently shifted towards purchasing Mobile Phones in Grey Markets than purchasing mobile phones available in Authorized distribution channels. 1.3 Background Study to the Research Mobile Technology is one of the most rapidly developed technologies in the modern world. With the emergence of the epoch making concept of Geostationary Satellite Communication developed by Prof. Arthur C. Clerk in 1945, the wireless mobile technology grew and developed dizzying heights. The mobile phone usage in Sri Lanka is being increasing year by year and the best indicator for this is the Mobile Phone Subscriber Rate The Subscribers per 100 persons for a mobile phone in Sri Lanka in 2009 were 69.8. But in 2010 it was 83.5 (Central Bank Annual Report, 2010)
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The history regarding the growth of mobile phone subscribers over the last 20 years Year Subscribers Year Subscribers 1992 2,664 2002 931,403 1993 14,687 2003 1,393,403 1994 29,182 2004 2,211,158 1995 51,316 2005 3,361,775 1996 71,029 2006 5,412,496 1997 114,888 2007 7,983,489 1998 174,202 2008 11,082,454 1999 256,655 2009 14,262,442 2000 430,202 2010 17,267,407 2001 667,662 2011 July 18,176,030
Table 1.1 Mobile subscribers in Sri Lanka from 1992 to 2011(July) Source: Telecommunications Regulatory commission, Sri Lanka (2011)
Chart 1.1 Mobile subscribers in Sri Lanka from 1992 to 2011(July) Source: Telecommunications Regulatory commission, Sri Lanka (2011) 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 Mobile subscribers in Sri Lanka from 1992 to 2011(July)
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Cumulative Number of Mobile Phones in Sri Lanka and its annual increment Year Cumulative Number of Mobile Phones Number of newly added 2006 5,412,000 .. 2007 7,983,000 2,571,000 2008 11,083,000 3,100,000 2009 14,264,000 3,181,000 2010 17,247,000 2,983,000
Table 1.2 Cumulative Number of Mobile Phones in Sri Lanka and its annual increment Source: Central Bank Annual Report (2007/2008/2009/2010)
Chart 1.2 the number of mobile phones in Sri Lanka Source: Authors work based on (Central Bank Annual Report, 2009, P.57) & (Central Bank Report, 2010, P.59) The above mentioned facts and figures prove the rapid increment of the usage of mobile phones in Sri Lanka. The major reason for this was the occurrence of grey markets in late 2007 which that idea proved below. 0 2000000 4000000 6000000 8000000 10000000 12000000 14000000 16000000 18000000 20000000 2006 2007 2008 2009 2010 The number of mobile phones in Sri Lanka
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The occurrence of grey markets as a factor of increasing the number of mobile phones in Sri Lanka The best selling mobile phone brand in Sri Lanka, Nokia faced a great challenge from grey markets in 2010. People were attracted by the features offered by those products for lower prices (Lanka Business Online, 2010). The Market Share of conventional brands decreased while grey market increased it shares in the Sri Lankan mobile phone industry. Phone Brand Market Share in 2007-08 Market Share in 2008-09 Market Share in 2010-11 Nokia 83% 60% 40 -45% Samsung, LG, Sonny Ericson and other conventional brand 17% 20%-25% 15-20% Mobile phones in grey markets N/A 15%-20% 40%
Table 1.3 Market shares of Top five Mobile Phone Brands (Approximate Values) Source: Lanka Business Online with Softlogic (2010), Sudeep Nair, 2010 & Sunday Leader, 12th Nov: 2011
The reasons for occurring this rapid spreading of Grey Products are reducing import duties and taxes on mobile phones by the government. Those advancements on the grey mobile phone market of Sri Lanka motivated mobile phone users to shift towards Grey Markets. (Sudeep Nair, 2010). The below mentioned table illustrated Sri Lankas Major importing percentage by origins. This will help to get an idea about how grey markets developed in Sri Lanka. The imports regarding European region went down from 14% in 2005 to 11% in 2010 may reflects that the imports of mobile phones form Scandinavian region especially Nokia from Finland and Motorola from Germany decreased.
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Table 1.4 Sri Lankans Major importing percentage by origins Source: Central Bank Annual Report (2010, P.59)
The situation on China and Singapore is different than the Europe case that Chinese imports increased from 7% in 2005 to 9% in 2010 and for Singapore imports increased from 8% to 12%. Those import form those courtiers definitely got a high concernable percentage of mobile phones and majority of those mobile phones from china and Singapore related to grey markets.
The above mentioned arguments related to secondary sources proved that the rapid advancement of grey markets motivated to increase the number of mobile phones in Sri Lanka.
Country / Region Import Percentage in 2005 Import Percentage 2010 Europe Region 14% 11% USA 2% 1% India 21% 19% Singapore 8% 12% China 7% 9% Asia Others 24% 18% Middle East 8% 14% Other 16% 16%
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1.4 Research Problem (Problem Statement) The research problem stated that Most number of mobile phone users in Sri Lanka recently shifted towards purchasing mobile phones in grey markets than purchasing conventional mobile phones available in Authorized distribution channels. 1.5 Research Question What are factors that motivate mobile phone users to shift towards Mobile Phones in Grey Markets? 1.6 Research Objectives (Significance of the Study) To get a comprehensive understanding about the newest trend of mobile phone users in Sri Lanka on shifting towards mobile phones in grey markets. To determine the factors affecting first time purchasers to prefer a mobile phone. To determine the factors that affect mobile phone users to shift towards mobile phones in grey markets other than purchasing products in authorized distribution cannels. To study on Prevention related to Health Hazards expose to radiation by using mobile phones. Studying the issues regarding the Growth of Mobile Phone Usage.
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Chapter 02 Literature Review The purpose of presenting the literature review is to examine the current state regarding the basic concepts of Grey Markets. The Review has sufficiently addressed itself on several key issues and aspects of Grey Marketing pertaining the research question investigated in this study. As such, the literature review mainly focuses on the following fundamental concepts and applications. The Concept of Grey Marketing Effects of Emergence and Operations of Grey Markets Grey Markets in the Mobile phone industry with particular reference to Sri Lanka. The Nature, Extend and the factors affecting the shift to the grey market Strategies for Regulating Smuggling of Grey Markets The Concept of Grey Markets A Grey Market goods and services are offered outside the original distribution channels authorized by the manufacturer. Grey Market products are not necessarily duplicates or imitations. It could still be the same genuine product from the original manufacturer. Czinkota and Ronkainen (2003, P.357), Hill and Samil (1998, P.213), Cateora and Graham (2008, P.622), Onkvisit and Show (1997, P.190) and Investopedia (2010) Distribution of Goods through Unauthorized Channels The undisputed identity of the grey market is that it is operating on unauthorized distribution channels, and in addition the authentic products are offered at relatively cheaper prices by jumping tariff walls (De Burca, Brown and Fletcher, 2004, P.416). Cateora and Graham (2008, P.622) argued that if the price differences are greater than the cost of transportation between countries, there is an obvious potential to occur grey markets. They stressed that E Marketing also substantially affect the appearance of grey markets. Because customers can see the price differences between similar products in different
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websites related to different firms. Cateora and Graham (2008, P.623) emphasized that having an over production as well as maintaining an over distribution environment motivate a product to be sold at the grey markets. Strategies that Manufacturers and Trademark owners have to craft for overcoming the Threats from Grey Markets Maintaining a strong direct and a visible movement of goods from manufacturer to customer (one price policy related to its supply of goods), producing different versions of products for different markets and Launching Promotional Campaigns related to original trademark products are appropriate strategies that support genuine manufacturers to defend the challenges from grey markets.(Czinkota and Ronkainen, 2003, P.360). Cateora and Graham (2008, P.622) suggested that price harmonization as a suitable strategy of facing the challenge from the grey markets that grey markets exists because of the price differences between original distribution channel and the grey markets. Grey Markets in the Mobile phone industry with particular reference to Sri Lanka. The grey markets of the mobile phone industry in Sri Lanka were highly emerged with the flooding of Chinese originated mobile phones in late 2007. In 2009 the number of newly added mobile phones in Sri Lanka was 3,181,000 and among them 636,200 (approximately 20%) represented mobile phones in grey markets. In 2010, the number of newly added mobile phones in Sri Lanka was 2,983,000 and within that number 1,193,200 (approximately 20%) phones related to Grey Market. This proves that grey markets invaded Sri Lankan mobile phone industry. Central Bank Annual Report (2010), Lanka Business Online (2010), Nokia Emerging Asia Corp. interview with Sunday Leader (12th Nov: 2011) and Sudeep Nair, (2010). The Nature, Extent and the factors affecting mobile phone users shift to the Grey Market Among the mobile phone owners of the country, people between 16 years to 35 years account a higher proportion. The reason is that most of the persons representing this age group use mobile phones to connect to the internet for using social networks.
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As the high price conscious of Sri Lankan consumers, especially the young crowd on purchasing mobile phones leads them to prefer mobile phones in grey markets. Because the products in grey markets are relatively cheaper in price. Sri Lankan mobile phone users are mostly demanding the price range of 3,000 LKR 3,500 LKR for buying a mobile phone and there are products suited for this price range in grey markets. Attractive offered features for low price levels motivate users to buy mobile phones in grey markets. The life expectation for such mobile phones in grey markets is not exceeding one year. But most of the users prefer of using a cheap mobile phone around one year and replace it. Business Times (2010), Daily News (19/07/2010) and Lanka Business Report (04/03/2011). Strategies for regulating smuggling of grey market It is compulsory to get the TRCSL approval on the quality, health condition, and electromagnetic capability of mobile phones before vending them to the users. This can be concerned as an effective regulating strategy on preventing flooding of illegal as well as bias mobile phones with health hazards to the country. Reducing tax rates on importing mobile phones is a good strategy to tackle the challenge from grey markets. It will help the importers who import conventional mobile phones to import more and more conventional products and offer them to the customers for reasonable prices. Business Times (2010) and Daily News (19/07/2010)
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Chapter 03 Methodology 3.1 Conceptual Framework The conceptual framework of the research emphasizes the scientific method of analyzing the collected data in a developed manner to get an answer for the research question of the study What are factors that motivate mobile phone users to shift towards Mobile Phones in Grey Markets. In this research study, the conceptual framework is the Consumer Behavior concept. The consumer behavior concept is the study of the buying behavior of consumers on products and services. The buying behavior of consumers is depended on many reasons such as the nature of the products and services, price levels and the convenience of reaching the products and services and the promotional activities which those aspects come under the 4Ps concept of marketing. Those factors are the motivational factors for occurring buying behaviors on consumers mindset. So the conceptual framework of the research study Consumer Behavior is the foundation for analyzing the collected data in a meaningful manner and determining the conclusions of the study.
3.2 Population and Sampling Population: The mobile phone users representing any age category Sampling: The Mobile phone users representing the age group between 20 to 35 years representing both urban and rural geographic areas. Reason for Sampling in terms of user age: The researcher assumed that the shift from one mobile phone to another can mostly be seen in the young crowed between 20 35 years. Reason for Sampling in terms of geographic area: To get the attitudes of users in terms of the geographical area which they live.
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Sampling Method: Random Sampling method Sample Size: 60 persons in between the age range of 20 -35 years representing both urban and rural. 3.3 Instrumentation
3.3.1 Instruments for collecting primary data Offer questionnaires to collect primary data. Distribute questionnaire among the sample while conduct a telephone questionnaire session for getting details on rural areas.
3.3.2 Instruments for collecting secondary data Text Books, Journals, E-Based documents, Internet, Government Publications
3.4 Method of Data Presentation Presenting the data by using tables, graphs, Histogram and pie charts 3.5 Method of Data Analysis Use percentage analysis method to analyze the factors affecting users to shift to grey markets. 3.5.1 Data Analysis Framework Using percentage analysis methods for analyzing the sample characteristics such as gender, income levels of users and also to analyze the factors affecting users to shift towards grey markets, knowledge on TRCSL approval on the condition of the mobile phones and etc Analyze the shifting behavior of users towards grey markets by using the percentage analysis method Analyze weights assigned for factors affecting users to shift towards grey markets, issues with the increment of the mobile phones in grey markets etc by summing the weights together and getting the mean. Analyzing factors affecting users to shift towards grey markets against user characteristics such as income level, age category etc by mentioning the percentages related to the sample.
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3.6 Validity and Reliability of the Data Related to the Research 3.6.1 Validity and Reliability of Primary Data The data which will be collected through questionnaires is valid to the study in terms of their relevancy point of view. By offering questionnaire for a focused sample, the study will get the relevant data for proofing the hypothesis of the study. 3.6.2 Validity and Reliability of Secondary Data The data related to secondary sources such as text books, journals, Government Publication and the internet etc are valid and relevant to the study that those references are based on responsible authorities. The researcher referred only what the study needs as data and as literature.
3.7 Scope and Limitations 3.7.1 Scope of the Research The scope of the research is to study the entire mobile phone industry in Sri Lanka in relevant to the shifting behavior of mobile phone users towards grey markets. 3.7.2 Limitations of the Research It is always better to study the trend of shifting of mobile phone users towards mobile phones in grey markets in terms of the brands in grey markets. But it is a limitation to the study that there are hundreds of brands in the grey markets and the idea on studying the shift trend on particular brands is not practical at all.
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Chapter 04 Research Findings This section addressed two major components related to the research study. They are data presentation section and the data analysis sections on the study. In the data presentation section, it mention the data gathered from the survey, the primary data regarding the study by using data presentation methods such as graphs, figures and charts. In data analysis, the results are been analyzed in a meaningful manner to prove the hypothesis. 4.1 Data presentation Sample size: 60 persons representing the age gap of 20 years to 35 years in terms of the age segmentation and representing both rural areas and urban areas in term of geographical segmentation point of view. Data regarding the age category of the sample. Age Category Size from the sample of 60 Percentage related to the sample 20 Years to 24 Years 27 45% 25 Years to 29 Years 18 30% 30 Years to 34 Years 15 25%
Table 4.1 Data regarding the age category of the sample Source: Survey on the primary data collection
Data regarding the gender representation of the sample Gender Category Size from the sample of 60 Percentage related to the sample Male 33 55% Female 27 45%
Table 4.2 Data regarding the gender representation of the sample Source: Survey on the primary data collection
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Data regarding the representation of occupational type of persons in the sample Occupational type Size from the sample of 60 Percentage related to the sample Government Sector 09 15 Private Sector 39 65 Self Employment 10 16.67 Non Employed 02 3.3
Table 4.3 Data regarding the representation of occupational type of persons in the sample Source: Survey on the primary data collection
Data regarding the representation of income level of persons in the sample Income level Size from the sample of 60 Percentage related to the sample Less than 10,000/= 06 10 10,000 - 25,000 31 51.67 25,000 40,000 15 25 Over 40,000 06 10
Table 4.4 Data regarding the representation of income level of persons in the sample Source: Survey on the primary data collection
Data regarding the Geographical area of persons in the sample Geographical area Size from the sample of 60 Percentage related to the sample Urban 36 60 Rural 24 40
Table 4.5 Data regarding the Geographical area of persons in the sample Source: Survey on the primary data collection
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Data regarding the age distribution of the sample against the gender Gender
Age Category Male female 20 Years to 24 Years 15 12 25 Years to 29 Years 10 08 30 Years to 34 Years 08 07
Table 4.6 Data regarding the age distribution of the sample against the gender Source: Survey on the primary data collection
Data regarding the age distribution of the sample against the occupational type Occupational Type
Age Category Government Sector Private Sector Self Employment Non Employed 20 Years to 24 Years 3 18 4 2 25 Years to 29 Years 2 12 4 0 30 Years to 34 Years 4 9 2 0
Table 4.7 Data regarding the age distribution of the sample against the occupational type Source: Survey on the primary data collection
Data regarding the age distribution of the sample against the income level. Occupational Type
Age Category Less than 10,000/= 10,000 - 25,000 25,000 40,000 Over 40,000 20 Years to 24 Years 06 13 05 01 25 Years to 29 Years - 12 03 03 30 Years to 34 Years - 06 07 02
Table 4.8 Data regarding the age distribution of the sample against the income level. Source: Survey on the primary data collection
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Data regarding the age distribution of the sample against the income level with mentioning the occupational type. Keys: G- Government Sector, P- Private Sector, S- Self employment Occupational Type
Age Category Less than 10,000/= 10,000 - 25,000 25,000 40,000 Over 40,000 20 Years to 24 Years 06 (6P) 13 (P10,G3) 05 (P2, S3) 01(S1) 25 Years to 29 Years - 12 (P8,G2,S2) 03 (P2,S1) 03 (P2,S1) 30 Years to 34 Years - 06 (P3,G2,S1) 07 (P4,G2,S1) 02 (P2)
Table 4.9 Data regarding the age distribution of the sample against the income level with mentioning the occupational type. Source: Survey on the primary data collection
Data regarding the age distribution of the sample against the geographic area related to the persons in the sample Geographic Location
Age Category Urban Rural 20 Years to 24 Years 17 10 25 Years to 29 Years 10 08 30 Years to 34 Years 09 06
Table 4.10 Data regarding the age distribution of the sample against the geographic area related to the persons in the sample Source: Survey on the primary data collection
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Data regarding first time users of a mobile phone in terms of the gender First Time User Yes (7) No (53) Male 5 28 Female 2 25
Table 4.11 Data regarding first time users of a mobile phone in terms of the gender Source: Survey on the primary data collection
Data regarding first time users of a mobile phone in terms age category First Time User Yes (7) No (53) 20 Years to 24 Years 7 20 25 Years to 29 Years 0 18 30 Years to 34 Years 0 15
Table 4.12 Data regarding first time users of a mobile phone in terms of age category Source: Survey on the primary data collection
Data regarding first time users of a mobile phone in terms income level First Time User Income Level Yes (7) Less than 10,000 5 10,000 25,000 2 25,000 40,000 - Over 40,000 -
Table 4.13 Data regarding first time users of a mobile phone in terms income level Source: Survey on the primary data collection
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Data regarding the category of the mobile phone of the first time users First Time User Size Phone with Brand Name, local agent and having country of origin 4 Phone with no Brand Name, no local agent and having no country of origin 3
Table 4.14 Data regarding the category of the mobile phone of the first time users Source: Survey on the primary data collection
Data regarding the first time users of Phone with no Brand Name, no local agent and having no country of origin in terms of income.
Table 4.15 Data regarding the first time users of Phone with no Brand Name, no local agent and having no country of origin in terms of income Source: Survey on the primary data collection
Data regarding the first time users of Phone with no Brand Name, no local agent and having no country of origin in terms of geographic area
Table 4.16 Data regarding the first time users of Phone with no Brand Name, no local agent and having no country of origin in terms of geographical area Source: Survey on the primary data collection Income Level First time user of a Phone with no Brand Name, no local agent and having no country of origin Less than 10,000 2 10,000 25,000 1 25,000 40,000 - Over 40,000 - Geographic Area First time user of a Phone with no Brand Name, no local agent and having no country of origin Urban 2 Rural 1
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Data regarding the factors affecting first time users to purchase a mobile phone Factors affecting first time users to purchase a mobile phone in grey market Total Weighting Rank Low Price Levels 1+1+1 = 3 1 Offered Features 2+3+2 = 7 2 Attractiveness (Appearances) 3+2+3 = 8 3 Promotional Activities
Table 4.17 Data regarding the factors affecting first time users to purchase a mobile phone in grey market Source: Survey on the primary data collection
Data regarding the price range of the mobile phone related to the first time users in the grey market. Price Range Number of people 1000 LKR-2000 LKR - 2001 LKR 3000 LKR 2 3001 LKR-4000 LKR 1
Table 4.18 Data regarding the price range of the mobile phone related to the first time users in the grey market. Source: Survey on the primary data collection
Data regarding the number of users who shifted towards grey markets in their last purchase Number of users who shifted towards grey markets in their last purchase (Yes)
9 Number of users who did not shift towards grey markets in their last purchase (No)
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Table 4.19 Number of users who shifted towards grey markets in their last purchase Source: Survey on the primary data collection
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Data regarding the number of users who shifted towards grey markets in their last purchase in terms of the age category Age Category Person(s) 20 Years to 24 Years 7 25 Years to 29 Years 2 30 Years to 34 Years -
Table 4.20 Number of users who shifted towards grey markets in their last purchase in terms of the age category Source: Survey on the primary data collection
Data regarding the number of users who shifted towards grey markets in their last purchase in terms of the geographic area Geographic area Person(s) Urban 7 Rural 2
Table 4.21 Number of users who shifted towards grey markets in their last purchase in terms of the geographic area Source: Survey on the primary data collection Data regarding the factors affecting users to purchase a phone in the grey market at their last purchase Factors affecting users to purchase a mobile phone in grey market by shifting Total Weighting Rank Low Price Levels 1+1+1+1+1+2+1+1+1 = 10 1 Offered Features 2+2+2+2+1+1+1+2+2 = 15 2 Attractiveness (Appearances) 3+2+2+2+2+2+2+3+3 = 21 3 Promotional Activities 3+3+3+3+3+3+2+2+3 = 25 4
Table 4.22 Data regarding the factors affecting users to shift towards mobile phone in grey market Source: Survey on the primary data collection
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Data regarding the price range of the mobile phone related to the first time users in the grey market. Price Range Number of people 1000 LKR- 2000 LKR 3 2001 LKR 3000 LKR 4 3001LKR -4000 LKR 2
Table 4.23 Data regarding the price range of the mobile phone related to the Shifted users in to grey market. Source: Survey on the primary data collection
Data regarding the awareness of TRCSL approval on the quality and the health safeguards relating to Mobile phones Know on TRCSL Approval regarding the quality and the health safeguards relating to Mobile phones (Yes) 25 Do not know on TRCSL Approval regarding the quality and the health safeguards relating to Mobile phones (No) 35
Table 4.24 the awareness of TRCSL approval on the quality and the health safeguards relating to Mobile phones Source: Survey on the primary data collection
Issues occur when increasing the number of mobile phones in Sri Lanka health problems 37 tendency to occur traffic related to mobile network connections 07 leads and motivates to increase crimes in the country 13 misuses of mobile phones 11
Table 4.25 Issues occur when increasing the number of mobile phones in Sri Lanka Source: Survey on the primary data collection
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4.2 Data Analysis 4.2.1 General data analysis on the sample Analysis on the age distribution of the sample The sample size of the survey is 60 and it was segmented in terms of the age and the geographical area of mobile phone users. By looking at the sample, 45% of the sample is representing the mobile phone users related to the age category of 20 years to 24 years. The age category of 25 Years to 29 Years and 30 Years to 34 Years represents 30% and 25% of the sample respectively.
Figure 4.1 age distribution of the sample Source: Data Presentations from the survey Analysis on the gender distribution of the sample In the sample, 55% represent males while the rest 45% related to female.
Figure 4.2 gender distribution of the sample Source: Data Presentations from the survey 20 years - 24 years, 45% 25 years - 29 years, 30% 30 years - 34 years, 25% Male, 55% Female, 45%
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Analysis on the occupational type of persons in the sample From the 60 persons interviewed, 15% represent the government sector while majority from the private sector as 65%. 16.67% of persons in the sample are self employed while there 3.3% of unemployment. Analysis on the monthly income level of persons in the sample Those who employed in the sample, among them 10% are having a monthly income below 10,000 LKR. 51.67% of persons enjoy a monthly income between 10,000 LKR 25,000 LKR. 25% get 25,000 to 40,000 LKR as their monthly income while 10% of persons are having a monthly income over 40,000 LKR. Analysis on the geographical area representations of the sample. 60% of the persons in the sample represent urban areas while the rest 40% of persons represent the rural areas.
Figure 4.3 gender distribution of the sample Source: Data Presentations from the survey
Urban , 60% Rural, 40%
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4.2.2 Data analysis related to the significance of the study. The analysis on the first time mobile phone users The survey stated that 11.6% of the sample represents first time mobile phone users. They all belong to the age category of 20 years 24 years. From that user community most of them will step at their early 20s that the first exposure to a mobile phone in Sri Lankan context can be seen after the completion of the school education. 28.57 of the first time users of a mobile phone are female while the majority (71.43%) is males. This may feels that males are more careful and willing to keep the things that they use rather than female do. 28.57 of the first time users of a mobile phone are unemployed while the rest 71.43% are employing. As stated earlier, most of the first time users may at their early 20s and they may do their studies and so that no exposure to employment at all. But with the grown up of the life, in the age around 22 years, they may do occupations by not continuing the studies represents the rest 71.43% as the young working crowd Among the employed first time users, 60% are receiving a monthly income level below 10,000 LKR. 40% enjoys a monthly income range of 10,000 LKR TO 25,000 LKR. As they young, this will be the salary range that they will have. Among the first time users, 42.85% of users are using a mobile phone related to grey market. The rest of 57.14% use mobile phones in conventional market. By looking at the income level of first time users who use mobile phone in grey market, 66.3% are enjoying a monthly salary less than 10,000 LKR. So the low income level of first time users may motivate them to prefer and purchase mobile phones in grey markets. By concerning the geographic status of the first time users who purchase mobile phones in grey markets, 66.6% of them representing the urban areas and the rest 33.3% represent the rural areas. The reason for this may be the high availability of grey markets and the related products in the vicinity of urban areas. By looking at the price ranges of mobile phones related to grey markets in terms of the first time users, 66.6% users are having a mobile phone priced between 2001 LKR 3000 LKR. This reflects that they like on purchasing mobile phones in grey markets as they will be able to purchase a mobile phone for a very less price.
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As an overall view of the factors affecting first time buyer to purchase a mobile phone, 57.14% say that low price levels is the highly motivating factor of them to be attracted to a mobile phone. 42.85% of first time users say that they were highly motivated by the features offered with the product. 71.42% of the first time users stated that they were less motivated with the promotional activities of the grey markets. 57.14% says they were moderately motivated by the appearance of the mobile phones in grey markets. The analysis on mobile phone users who shifted towards mobile phones in grey markets The survey stated that 88.33% of the sample represents mobile phone users who already had subsequent purchases related to mobile phones Among them 16.98% shifted towards mobile phones in grey markets. This may refer the statistics of the improvement of the market share of mobile phones related to grey market. As per the table 1.1 the market share of the grey market of mobile phone in the period of 2010 - 2011 was 40% approximately. This refers the purchases of the first time buyers and the subsequent purchasers who shifted on purchasing mobile phones in grey markets. Among the mobile phone users who shifted towards grey markets, 77.7% of them are related to the age category of 20 years 24 years and 22.3% of the mobile phone users who shifted to grey markets are related to the age category of 25 years to 29 years. There is no a significance shifting behavior can be seen in the age category of 30 years to 34 years. So the shifting nature towards mobile phones in grey markets can be mostly seen in the age category of 20 years to 30 years. The subjective reasons for this are mentioned at the latter part of the analysis. Mentioning on the monthly income level of the mobile phone users who shifted towards mobile phones in grey markets, 88.89% are receiving a monthly income level between10, 000 LKR to 25,000 LKR. The rest 11.11% enjoys a monthly salary range between 25,000 LKR to 40,000 LKR. As can be seen above, 88.89% of users get a low middle income shifted towards purchasing a mobile phone in grey market may be to save money from their salary and to have a mobile phone with lot of features and facilities. By looking at the geographic status of the mobile phone users who shifted towards mobile phones in grey markets, 77.7% of them representing the urban areas and the rest 22.3% represent the rural areas. This trend is like the same as it refers to the first time users of mobile phones. The reason for occurring this kind of a situation will be like urban areas
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having the potential of promoting the mobile phones regarding the grey markets than rural areas. People in rural areas may go for second hand conventional mobile phones for even for cheaper price levels that the availability of mobile phones related to grey markets is too low in rural environment. Mentioning the mobile phones price ranges related to the mobile phone users who shifted to the grey market in their subsequent purchase, 11.1% of the mobile phone users shifted towards very cheap phones in the range of 2001 LKR to 3000 LKR. 22.2% of the mobile phone users purchased a mobile phone in grey market in the price range of 3001 LKR to 4000 LKR. The rest 66.6% purchased mobile phones in grey markets in the price range of 4001 LKR to 5000 LKR. Not like in the situation of first time users, 66.6% of the shifted users purchased mobile phones in the price range of 4001 LKR to 5000 LKR that their income level is much better than the first time users. Now it is the time for analyzing the factors affecting mobile phone users to shift towards mobile phones in grey markets. This is the most vital part of the data analysis section of the study. This analysis will help to answer the research question and to prove the hypothesis of the research study. The below mentioned table will help to evaluate the number of weight assign for the factors listed at the questionnaire and to analyze ho those factors affect mobile phone users to shift towards mobile phones in grey markets. Keys for mean weight: 1 Highly motivational factor, 2 Moderate motivational factor, 3 Less motivational factor. Factor Total weight assigned Mean of the weight assigned Motivational level of the factor on shifting towards grey markets Low Price Levels 10 10/9 = 1.11 Highly motivational factor on shifting users towards grey market Offered Features 15 15/9 = 1.60 Between high and moderate motivational status Appearance / Attractiveness 21 21/9 = 2.3 Moderate motivational factor on shifting users towards grey market Promotional Activities 25 25/9 = 2.78 Less motivational factor
Table 4.26 Analysis on factor affecting mobile phone users to shift towards grey markets Source: Table 4.22
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According to the table the highly motivational factor for mobile phone users to shift to the grey markets is the low price levels of mobile phones. This is a mentioned independent variable related to the hypothesis of the research. The factor offered features got 1.6 in mean value from the weight assigned as per the survey. According to the defined keys of analyzing the table, the factor offered features is having a strong motivational potential of motivating mobile phone users to shift towards purchasing mobile phones in grey markets. The factor Appearance / Attractiveness of the mobile phones in grey markets moderately motivate mobile phone users to shift towards them. The factor got 2.3 in mean value from the weight assigned as per the survey and as it close to the value 2 the factor moderately motivate users on shifting grey markets. The factor Promotional Activities is a less motivational factor for motivating mobile phone users to shift towards grey markets as per the analysis from the table 4.22 that it got a mean value of 2.78 which close to the value 3.
Data analysis on the mobile phone user awareness on TRCSL approval regarding the quality and the safeguard relating to mobile phones 58.33% of persons related to the sample is not aware on the TRCSL approval regarding the quality and the safeguard relating to mobile phones. The percentage of not having the awareness of TRCSL approval on mobile phones is high in number and this is not a better situation that mobile phone users have to follow the regulatory approval of the Sri Lankan government on mobile phones for ensuring the quality and the health safeguard of those products. Data analysis on the issues occurs when increasing the number of mobile phones in Sri Lanka The question was properly answered by 71.67% of the sample. Among them 86.04% say that the issue regarding occurring health problems is the major issue by increasing the number of mobile phones in Sri Lanka. Only 16.27% stated that there is a high tendency to occur traffic related to mobile network connections can be occurred. 30.23% stated that the increment of the number of mobile phones in Sri Lanka leads and motivates to increase crimes in the
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country. It is true to a great extent that with the spreading of the mobile phones over the country, those who do criminals like robberies can communicate with each others to do their unacceptable jobs. 25.58% says that the misuses of mobile phones can be occurred with the increment of the number of mobile phones in Sri Lanka. This may include the early adoption of children for mobile phones, using mobile phones for corrupted activities etc.
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Chapter 05 Concussion The research study was conducted to find out the factors affecting mobile phone users to shift towards grey markets. That research area is researchable that there is a reasonable research problem stating most number of mobile phone users in Sri Lanka recently shifted towards purchasing mobile phones in grey markets than purchasing conventional mobile phones available in Authorized distribution channels. The research problem leaded the study to formulate the research question as what factors do mobile phone users motivate to shift towards purchasing mobile phones in grey markets and the study was conducted by developing a hypothesis on the research for testing research problem and to find out reasons for occurring the research problem. In order to prove the hypothesis, the study was conducted as a primary research after setting objectives of the research. By looking at the major findings of the research study, first it focused on the first time users of mobile phones. 11.6% of the sample represents first time mobile phone users and they all represent the age category of age 20 -24. Among the first time users, 42.85% of users are using a mobile phone related to grey market and with the urban representation of 66.6%. Among them 66.6% users are having a mobile phone priced between 2001 LKR 3000 LKR. Majority of first time users (57.14%) motivated to buy a mobile phone in grey market as the price levels of the markets are low. 42.85% of first time users say that they were highly motivated by the features offered with the product. Every 7 out of ten first time users stated that they were not motivated for purchasing mobile phones in grey markets by the promotional activities. 88.33% of the sample represents mobile phone users who already had subsequent purchases related to mobile phones. Within that number 16.98% shifted towards mobile phones in grey markets in their last purchase. 77.7% of the mobile phone users who shifted towards mobile phones in grey market related to the age category of 20 years 24 years and 22.3% of the mobile phone users related to the age category of 25 years to 29 years. Among the users shifted towards grey markets, 88.89% related to a middle level monthly income of 10000
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LKR to 25000 LKR and that represents the users purchase mobile phones in grey markets because they will be able to shoulder the price of them. The highly motivational factor for mobile phone users to shift to the grey markets is the low price levels of mobile phones as per the survey. The factor Offered features is having a strong motivational potential of motivating mobile phone users to shift towards purchasing mobile phones in grey markets. The factor Appearance / Attractiveness of the mobile phones in grey markets moderately motivate mobile phone users to shift towards them while there is a very low degree of motivation related to the promotional activities motivate users on shifting towards grey markets. These findings helped the study to answer the research question and to prove the hypothesis of the research study in a descriptive manner. Beside those finding, the research study focused on getting data on the user awareness of the quality and health safeguard on the mobile phones by checking the knowledge on TRCSL approval and the result was 58.33% of the sample are not aware on the regulatory approval of TRCSL. The survey finally checked the users knowledge on the issues occurs with the increment of the number of mobile phones in the country. The questioned was answered by 71.67% from the sample and among them 86.04% emphasizes on health issues, 16.27% discussed on connectivity barriers, 30.23% and 25.58% stated on increasing crimes and misusing of connectivity space respectively. The research study was a successful one with achieving its objectives by answering the research question that led to solve the research problem.
References Business Times, 2010. Lankan mobile phone vendors urge TRC to crack down on phone mafia, [English] 13/11/2011. Available at http://www.thesundayleader.lk/?s=13%2F11%2F2011&x=0&y=0 [Accessed 18/02/2012] Cateora, P.R., Graham, J.L. and Salwan, P., 2011. International Marketing.13 th edition. India: McGraw Hill Inc Central Bank of Sri Lanka, 2010. Annual Report 2010, Colombo: CBSL. Czinkota, M.R., and Ronkainen, I., 2003. International marketing. 7 th Edition. Stanford: South Western College Daily News. 2010. Tax reduction sees rise in mobile phone sales, [English] 19/07/2010. Available at http://www.dailynews.lk/2010/07/19/bus02.asp [Accessed 18/02/2012] de Burca, S., Fletcher, R. & Brown, L., 2004. International Marketing: An SME Perspective. 1st edition. Harlow: Pearson UK. Investopedia. 2011. Grey Market. [Online] Available at < http://www.investopedia.com/> [Accessed 08/12/2011] LBR, 2012. Sri Lanka mobile internet usage poised for growth: Neilson, [English] 04/03/2011. Available at http://www.lbr.lk/fullstory.php?nid=201103041615077468 [Accessed 18/02/2012] Nair, S., 2010. Market Research Sri Lanka and Africa. [Online] Available at < http://www.slideshare.net/sudeepnair84/market-research-sri-lanka-and-africa-4922624> [Accessed 10/11/2011] Onkvisit, S., and Shaw, J.J., 1997, International Marketing: Analysis and Strategy. London: Rutledge Samil, A.C., and Hill, J.S., 1998. Marketing Globally Planning and Practices. Chicago: NTC Business Books
Telecommunications Regulatory commission of Sri Lanka, 2011. Corporate web site Statistics. [Online] Available at < http://www.trc.gov.lk/information/statistics.html > [Accessed 10/11/2011] The Sunday Leader, 2011. Interview with Nokia Emerging Asia Corporation, [English] 13/11/2011. Available at http://www.thesundayleader.lk/?s=13%2F11%2F2011&x=0&y=0 [Accessed 13/11/2011]
Bibliography Baker, W., Hutchinson, J.W., Moore, D. and Nedungadi, P., 1986. Brand Familiarity and Advertising: Effects on the Evoked set and Brand Preference. [Online] Available at :< http://www.acrwebsite.org/volumes/display.asp?id=6570&print=1 > [Accessed 12 th Dec: 2011] Baker, M.J., 2000. The Marketing Book. 4 th edition. Delhi: Viva Books (Pvt) Ltd Central Bank of Sri Lanka, 2009. Annual Report 2009, Colombo: CBSL. Central Bank of Sri Lanka, 2008. Annual Report 2008, Colombo: CBSL. Central Bank of Sri Lanka, 2007. Annual Report 2007, Colombo: CBSL. Central Bank of Sri Lanka, 2006. Annual Report 2006, Colombo: CBSL. Constantin, J.A., Evans, R.C. and Morris, M.L., 1976. Marketing Strategy and Management. Michigan: Business Publications Cravens, D.W., Hills, G.E. and Woodruf, R.B., 1987. Marketing Management. 2 nd edition. Irwin Cravens, D.W., 1997. Strategic Marketing. 5 th edition. Irwin Cunningham, W.H., Cunningham, I.C.M. and Swift, C.M., 1987. Marketing, a Managerial Approach. 2 nd Edition. Stanford: South Western Division of Thomson Learning Evans, J.R., and Berman, B. 1984. Essentials of Marketing. New York: Macmillan Publication Evans, J.R., and Berman, B., 1990. Marketing 4e. 4 th edition. New York: Macmillan Frain, J., 1992. Principals and Practice of Marketing. Allahabad: Wheeler Publishers. Gwin, C.F., 2009. The Brand Preference to Search Relationship: an Empirical Investigation [pdf] Available at: <http://www.swdsi.org/swdsi2009/Papers/9N02.pdf> [Accessed 13th Dec: 2011] Heldman, K., 2003. Project Management Jump Start. Delhi: BPB Publications
Hindle, T., 2000. Guide to Management Ideas. London: Profile Books Management Study Guide. 2011. Brand Preference. . [Online] Available at < http://www.managementstudyguide.com/brand-image.htm> [Accessed 05/12/2011] May, P., 2001. Mobile Commerce: Opportunities, Applications and Technologies of Wireless Business. Cambridge: Cambridge University Press McCarthy, E.J., 1982. Essentials of Marketing. Irwin Myers, J.H., 1986, Marketing. New York: McGraw Hill Riffai, R., 2010. Sri Lanka Nokia agents tackle Chinese competition, Lanka Business Online, [online]. Available at: <http://www.lbo.lk/fullstory.php?nid=1855813359> [Accessed 09 Nov: 2011] Schoell, W.F. and Ivy, T.T., 1982, Marketing: Contemporary Concepts and Practices, Boston: Allyn and Bakers Stantion, W.J., Etzel, M.J. and Walker, B.J., 1991.Fundimentals of Marketing. New York: McGraw Hill Sticky Marketing.net. 2011. Brand Loyalty. [Online] Available at < http://www.sticky- marketing.net/glossary/brand_loyalty.htm> [Accessed 10/11/2011] Sutherland, J. and Conwell, D., 2004.Key Concepts in Management. New York: Palgrave Macmillan Vaghefi, R., and Huellmantel, A.B., 1999. Strategic Management for the 21 st Century. CRC Press Vaid, H., 2003. Branding: Brand Strategy, Design and Implementation of Corporate and Product Identity. New York: Watson Guptill Publications. Wikipedia. 2011. Grey Market. [Online] Available at < http://en.wikipedia.org/wiki/Grey_market> [Accessed 08/12/2011]
Appendices Appendix 01: Annotated Bibliography Appendix 02: Questionnaire related to the Survey of the study Appendix 03: Plagiarism Test Certificate Appendix 04: Supervisors Comment Form
Appendix 01 Annotated Bibliography
Baker, W., Hutchinson, J.W., Moore, D. and Nedungadi, P., 1986. Brand Familiarity and Advertising: Effects on the Evoked set and Brand Preference. [Online] Available at :< http://www.acrwebsite.org/volumes/display.asp?id=6570&print=1 > [Accessed 12 th Dec: 2011] The journal relates on studying the link between brand familiarity of customers and the advertising which leads for awaking the concept - brand preference. The journal broadly delivers the sub concepts regarding brand preference such as Brand Recognition, Brand Recall etc which are more useful for a person who is studying on brand preference. The journal was useful to the researcher for getting the basic literature regarding branding and brand preference concept that the journal comprehensively stated the basics and the complex areas of brand preference in a descriptive manner. The Journal mentioned the definition for brand preference related to Obermiller (1985) as A greater average of liking for brands. Obermiller (1985) further stated that there is a positive relationship between brand preference and the advertising and the researcher understood advertising as a motivator for occurring brand preference in customers buying behavior. The arguments mentioned in the journals are very correct that generally if a brand is having lot of advertising on it, the preference of customers towards buying and use that particular brand will occur as in a quick movement that there will be a familiarity towards that brand because of the advertising process.
Baker, M.J., 2000. The Marketing Book. 4 th edition. Delhi: Viva Books (Pvt) Ltd The text The Marketing Book is a book which got a simple as well as reader friendly layout that the book itself divided into sections that reflect the basic concepts of the subject marketing in a very descriptive manner. The text is supported with many examples as well as it highlighted the main concepts and key learning points of marketing in an attractive user friendly manner.
The researcher found literature regarding branding and especially on brand preference concept by referring the book. As per the arguments of the text, there are lots of brands which got preferences on them by the customers and a preference of a customer on a particular brand leads that brand for repetitive purchases. That literature was really helpful to the researcher in order to understand the exact effect of having a brand preference on a brand that the brand will lead for repetitive purchases in consumer buying behavior.
Central Bank of Sri Lanka, 2010. Annual Report 2010, Colombo: CBSL. Central Bank of Sri Lanka, 2009. Annual Report 2009, Colombo: CBSL. Central Bank of Sri Lanka, 2008. Annual Report 2008, Colombo: CBSL. Central Bank of Sri Lanka, 2007. Annual Report 2007, Colombo: CBSL. Central Bank of Sri Lanka, 2006. Annual Report 2006, Colombo: CBSL.
The Annual report of the Central Bank gives the information on every industry operates in Sri Lanka with their status in the financial and economic point of view. The key economic and social indicators listed under the annual report provide the current economic and social position of the country with relevant facts and figures. The research is regarding mobile phone (Handsets) industry in Sri Lanka and the annual report of Central Bank of Sri Lanka visualize the information regarding telecommunication such as Telephone density of the country in the year which the document published with a comparison to last year, the mobile phone density and the cumulative number of mobile phones in the country, Mobile phone subscriber rate and many more. The fully association of government organizations for providing information to the annual report made the work easy and the information mentioned at the report is accurate up to a high level as of this association of external parties with the Central Bank. This document was really useful to get the background idea on the research such as the growth rate of mobile phones in Sri Lanka. Again the Annual Report was useful to the researcher for getting information on percentages of imports commodities in terms of regional and countries that helped the researcher to understand how Sri Lanka increase imports from china and Singapore in the last years where
there are lots of grey distribution channels operate. Researcher founded the documents through NIBM Library.
Constantin, J.A., Evans, R.C. and Morris, M.L., 1976. Marketing Strategy and Management. Michigan: Business Publications The text is all about the strategic use of Marketing and it is well developed into sections that give a reader a better understanding about the basic marketing concepts and their strategic use for doing businesses in profits. The researcher referred the branding section of the text which comprehensively described the concept of branding with examples. The text argued that customer switch from one brand to another brand that it happens when consumer is having dissatisfaction on that particular brand. The argument is correct that if a brand fails to give what the consumer needs, definitely there will be a deviation of his or her purchasing decision from that brand to another one which leads to occur brand preference on an another brand by ignoring the previously preferred one.
Cateora, P.R., Graham, J.L. and Salwan, P., 2011. International Marketing.13 th edition. India: McGraw Hill Inc The book is on international marketing and it covers every related aspect of international marketing with lot of real time real world examples. Researcher used the text in order to study on the influences happened because of the grey markets. The text itself mentioned on those issues as well as it mentioned its own definition on Grey Market as A place where importers buy products from distributors in one country and sell them in another to distributors who are not part of the manufacturers regular distribution system. The text described the way of occurring grey markets and its flooding pathway to the hands of customers with price differences. It mentioned the way of deviating the flooding of commodities from the original distribution channels with the intervention of a third party. The book keenly emphasized the issues regarding pricing goods internationally because of grey markets.
Cravens, D.W., Hills, G.E. and Woodruf, R.B., 1987. Marketing Management. 2 nd edition. Irwin The text is consisted with Marketing basics which aimed the beginner learners of marketing that the book is stated all the basics of marketing with examples. The text written at the late 1980s and the text also mentioned the marketing concepts in 1980s and a reader can get an understanding on how those concepts developed in relevant to time. All the authors of the text are very popular for writing management related books and among them Cravens is the most significant person that he wrote books such as strategic marketing which those texts are really worth in knowledge point of view. The researcher used the book as a reference to the basic literature on branding and especially on the literature related to brand switching. The text defined the brand switching as switching of customers from one brand to another over two purchase periods. The text mentioned that customers are not depend and living on one brand if they are not getting what they expected by using the brand and the result will be switching from the preferred brand to another alike brand at the next period of purchasing.
Cravens, D.W., 1997. Strategic Marketing. 5 th edition. Irwin The book is an advanced text related to marketing in terms of its strategic point of view. The text is really updated with the concepts regarding strategic marketing and the text used examples as well as discussions related to the subject matters mentioned at the book. The Author, David Cravens is a well known writer of marketing books and most of his books are using as referencing text at many universities and colleges. The researcher used the text to get the literature on Brand Image concept which is described at the book in a very keen manner. As per the text a strong brand image gives a brand a better position among the competitive brands while creating a strong competitive advantage. The text argued that having a strong brand image will be motivated such brands for repetitive purchases which is the base of brand preference. It also mentioned that the brand preference of customers will change due to factors like price levels of competitive brands, nutritional and environmental factors etc.
Cunningham, W.H., Cunningham, I.C.M. and Swift, C.M., 1987. Marketing, a Managerial Approach. 2 nd Edition. Stanford: South Western Division of Thomson Learning This book is on the subject marketing and the way its applying to the managerial aspects of the organizations such as decision making, Sales and Marketing Planning etc. The author, William H. Cunningham is the professor of Marketing in University of Texas and he wrote many books on marketing with all his experiences. Dr. Isabella Cunningham is another author of the book and who is the wife of Professor William H. Cunningham. The other Author Christopher Swift is a well known writer of marketing books in the United States. The researcher used this book to get the basic literature on brand and branding concepts. The text mentioned branding as the way of firm identifies itself to customers. The term or the definition for branding is acceptable that it emphasizes how a firm reflects and be stand upon others in order to visualize who they are in the industry. The book clearly mentioned the objectives of branding a commodity which that cited by the researcher.
Czinkota, M.R., and Ronkainen, I., 2003. International marketing. 7 th Edition. Stanford: South Western College The book is well developed into sections related to the concepts of international marketing and it is a great referencing book that gives a hundred percent reader friendliness to the reader and the examples in modern world as well as in past gives the idea that the book is up to date. The authors Czinkota and Ronkainen are specialist in writing books related to international marketing and management and they are capable for giving the knowledge for other on this field. The researcher used the book for getting the literature on the grey markets and it was successful that the book provided a comprehensive meaning and definitions on that concept. As per the text it defined a grey market as an authentic and legitimately manufactured trademark items that are produced and purchased abroad but imported or diverted by passing the designed channels. The text also defines a grey brand as products that enter markets in ways not desired by the manufacturer. The researcher agreed with the definition that grey market occurs when selling products from the original manufacturer in a low price level but not in the original distribution channel. The
text defined that concept in a descriptive manner which was useful to the researcher to strength the literature review of the research.
de Burca, S., Fletcher, R. & Brown, L., 2004. International Marketing: An SME Perspective. 1st edition. Harlow: Pearson UK. The Text is written on International Marketing and it gives a range of comprehensive literature and supported examples for readers who are interested in studying the field of International Marketing. By referring the text, the researcher got a clear understand on the distribution of goods in the international marketing arena. The text clearly defined what distribution of goods is and how it happens in international marketing arena. The text further mentioned the concept of Grey Distribution in International markets and recognized it as a new trend in doing marketing internationally by unauthorized parties who are not related to authorize distribution channels of the original manufacturers. Totally the text was really helpful to the researcher on getting literature related to Grey distribution in international marketing.
Evans, J.R., and Berman, B. 1984. Essentials of Marketing. New York: Macmillan Publication The book is written on the fundamentals of marketing including the practical applications of those marketing concepts to the real business and marketing world. Both Barry Berman and Joel Evans are popular writers in marketing and they wrote about 15 books together regarding the marketing concepts and retailing management. The researcher used this book to refer the basic literature on brand and branding concept. Berman and Evans (1984) argued that Consumers Brand decisions Leads with their Preference level on that Brand. In here the brands decision means the purchasing decision on a particular brand. So the idea regarding brands decision in the text stated that a high or a satisfactory level of brand preference leads consumers to take the purchasing decision on that brand.
By using this text book, the researcher was able to do a valuable investigation on how brand preference leads a customer for purchasing such a brand and the researcher understood that a strong brand preference on a brand will motivate customer to occur repetitive purchases on that brand which the idea mentioned at the text itself.
Evans, J.R., and Berman, B., 1990. Marketing 4e. 4 th edition. New York: Macmillan The book is on basic practical marketing which means it targets mostly the study on retailing and whole selling in the marketing world. The text is descriptively mentioned on the grey markets and their behavior on other authorized stakeholder communities. Telling on the authors Evan and Berman are well known over years for writing marketing books together and their books are really practical that real time real life examples can be seen within the books. The researcher gets the maximum usage out of this book by citing the ideas from the book on grey markets. It described how grey markets occurs, how they exists within the world of marketing and the factors that cause grey markets to occur and ensure the existence in terms of getting both short term as well as short term returns.
Frain, J., 1992. Principals and Practice of Marketing. Allahabad: Wheeler Publishers. John Frain, a popular marker as well as an author who had written many books regarding Marketing and this text is really helpful for the beginners who like to study marketing as a major subject in their educational and professional carrier. The book consisted with the basic principals of marketing such as market and marketing principals, Product and service concepts, Marketing mix and segmentation form basics and branding Etc. The text is very useful for the research study in terms of collecting literature regarding branding and the authors explanations related to the basics of branding did in a very clever and a simple manner. By referring the text, researcher was able to find out the history of branding and how it came to the real world of marketing. As per the text the history of Branding was imposing a mark or a symbol by burning a flesh of an animal or a slave belongs to a land lord. By doing alike, a person can get the ownership of that particular animal or the slave while others can get recognize the identity of that particular objective on
that person. The text stated that in relevant to time the concept Branding stands for giving a specific identity as well as an ownership for a product or service. By reading the text, a reader can get a better understanding on the development of the marketing concepts on early 1990s.
Gwin, C.F., 2009. The Brand Preference to Search Relationship: an Empirical Investigation [pdf] Available at: <http://www.swdsi.org/swdsi2009/Papers/9N02.pdf> [Accessed 13th Dec: 2011] This is a research paper related to Brand Preference and the aim of this research was to find out whether there is a relationship between brand preference and brand loyalty. The author, Dr. Carol F. Gwin, a senior lecturer in marketing at the Pepperdine University, Los Angels did a marvelous job regarding working on this research paper that it gives the way of doing a comprehensive research by adhering to a structured manner. The research paper provides many definitions and discussions related to brand preference and brand loyalty such as Ben Akiva et al. (1999), Rundle-Thiele and Mackay (2001), Odin et al. (2001), Allenby and Lenk (1995) and etc and the definition of it owns which are really valuable for this study. The literature review of the research paper is comprehensive enough to address the reader regarding the relationship between brand loyalty and brand preference with the high support of various literatures from various authorities and sources. As examples the research paper mentioned the definition of Ben Akiva et al. (1999) on Brand Preference as A comparative Judgment between entities and then described the inside of that definition by the researcher herself. Totally the research paper of Dr. Gwin was referred by the researcher in order to assess the link between brand loyalty and brand preference and also to understand the two concepts separately. The research paper was capable enough to give what the researcher expected.
Heldman, K., 2003. Project Management Jump Start. Delhi: BPB Publications The book is written on the basic or the fundamentals of Project Management and it is helpful for the students who are studying project management as a subject and it is too helpful for company executives whose area is tally with project management concepts. The author Kim Heldman is a certified project management professional who wrote many popular texts on
Project Management and this book is reflecting his ability of spreading his knowledge all around the world that requires the project management knowledge. The researcher used this text to get an idea on the trend analysis and the book itself mentioned a comprehensive definition regarding Trend Analysis as Analyzing project results periodically to determine whether the project performance is improving or getting worse. The definition itself describes trend analyzing involving analyzing set of results from a period of time and to check whether there is a trend or not and if there is a trend check whether it is a positive or increasing trend or a decreasing or a negative trend. The trend analysis is a must to study in order to recognize the brand preference trend of mobile phone users in Sri Lanka towards mobile phones in grey markets.
Hindle, T., 2000. Guide to Management Ideas. London: Profile Books The Book, Guide to Management Ideas is a book which covers every aspect of Management in fundamentals point of view. It describes the basic concepts of general management, marketing, sales etc. The Author Tm Hindle is a well known writer and editor and he popular in the business field with his editorial works in the Magazines The Banker and The Economist. He used all his experiences towards writing the book. The marketing section of the book mentioned some basics on branding as well which helped the researcher to get some idea based on this authority regarding the branding concept. The text itself mentioned a definition for branding as Imposing on goods and services for getting a distinctive Identity. The definition introduced branding as a tool of making identity of a commodity within other competitive commodities as per the text. Those definitions and ideas helped the researcher to organize his literature review on the topic.
Investopedia. 2011. Grey Market. [Online] Available at < http://www.investopedia.com/> [Accessed 08/12/2011] Investopedia is a web based area for investing finance and education and there are lots of materials available at the web site regarding many subject areas in management studies while anyone can access the website without a single penny.
Researcher used the web site, Investopedia to get a definition regarding Grey Market and was able to catch a definition for grey market mentioned as A place where a product is bought and sold outside of the manufacturers authorized trading channel. The researcher is fully agreed with what the definition says that more authoritative text books such as Cateora and Graham (2008) etc defines grey market as alike. Researcher got knowledge on the legal as well as ethical aspects of grey markets through the usage of Investopedia. According to the site it stated that grey markets are totally legal and cannot be concerned as black markets but in business etiquette point of view, it is an unacceptable practice which harms the original manufacturer.
Management Study Guide. 2011. Brand Preference. . [Online] Available at < http://www.managementstudyguide.com/brand-image.htm> [Accessed 05/12/2011] Management Study Guide is a free site which is consisted with free tutorials on management studies and it is really great to have such web based facilities that it is very easy to use and more comfort on using it. The web layout is appropriate and descriptive for users to finds and study what they wish and want. The site was useful for the researcher to find out the importance of brand image concept and brand image concept was described at the site as the current view of the customers about a brand and it is acceptable that an image is a mental creation of humans on something available in physical and brand image is the same. Argument on brand image regarding mentioned in the site is relevant to the researchers facts finding mission on branding concepts.
May, P., 2001. Mobile Commerce: Opportunities, Applications and Technologies of Wireless Business. Cambridge: Cambridge University Press The Author Paul May was successful with his effort of presenting the idea regarding Mobile commerce and its usage of applying the concepts of mobile commerce to the practical scenarios in the modern competitive business world. The book is written in an order which is comprehensive towards giving a better understanding regarding the basics of Mobile Commerce, The development of the concept of Mobile Phone, the practical applications of
mobile phones etc and by following the layout of the book, a reader will be able to get the in- depth knowledge on the concept Mobile Commerce from initial or basics to major concepts. The text Mobile Commerce: Opportunities, Applications and Technologies of Wireless Business is relevant to the research in terms of its literature point of view that the research is all about mobile phones, development of mobile phones and how the applications of mobile phone technology drives people to use mobile phones. The text provides the basics of those mentioned points regarding the research. The text mentioned the way of converting the world towards a mobile world in a very short time with the rapid advancement of the mobile and information technology and which those ideas helped the researcher to understand how the world is running within a mobile based technology in terms of fulfilling the communication and technology needs of the general world.
McCarthy, E.J., 1982. Essentials of Marketing. Irwin The book is related to the basic theories of marketing and it mentions the way of applying those theories in to practice. Book is perfect with the layout and the examples given in the text is helpful to understand the concept in a clear manner. The author, Jerome McCarthy is an active marketer in US and he got the capability of presenting his experiences and knowledge through publishing this book. The researcher used this book to find out some literature regarding branding concept. Especially the definition for brand preference is very useful to the researcher in order to make strong the literature review of the research. As it mentioned at the text Brand preference is choosing a brand over another Brand Perhaps one of habit or past experience. Thats true that preferencing is liking over another and that cause past experiences as well which are the motivators for selecting one brand over another.
Myers, J.H., 1986, Marketing. New York: McGraw Hill The text is on basic marketing concepts. The text is suitable for the readers who are at the initial stage of their bachelors degree in marketing or general management. Telling regarding the Author, James Mayors is a well known author regarding marketing books and he
contributes a lot to the marketing education by being in the field with his writing competence in marketing area. The researcher used and referred the book to get the literatures on brand preference and how brand preference cause customers to get their purchasing decision on a particular brand or brands. The text emphasizes that a brand preference of a customer is indicating through his or her purchasing behavior. The text further stated that a strong brand preference leads customers to proceed actual purchases on that brand. The argument of the text regarding link between brand preference and the purchasing behavior of customer on a respectable brand or brands is agreeable that customers always go for what they like.
Nair, S., 2010. Market Research Sri Lanka and Africa. [Online] Available at < http://www.slideshare.net/sudeepnair84/market-research-sri-lanka-and-africa-4922624> [Accessed 10/11/2011] This is a slide show related to a research by an Indian Researcher; Sudeep Nair is based on the Sri Lankan Mobile Industry and its newest trends regarding preferring mobile phones in Grey Markets over conventional brands. The research mentioned the basic facts of Sri Lankan mobile phone industry by listing the leading brands that are playing in Sri Lankan mobile market. It also mentioned the tendency of preferring mobile phones in grey markets by mobile phone users and also focused on the influences on reducing the markets share of other conventional brands as the appearance of the mobile phones in grey markets. This slide show document was very helpful for the fulfillment of the secondary data needs of the research.
Onkvisit, S., and Shaw, J.J., 1997, International Marketing: Analysis and Strategy. London: Rutledge The text is on international marketing and it is mentioning every aspects regarding international marketing such as International Political Environment, International legal environment etc and their effects on international marketing, international trade policies etc. Both writers, Onkvisit and Shaw are professors in Marketing and also they are expert in International marketing with their experiences with international marketing arena.
The researcher used this text to study on grey markets and the grey distribution channels which is a necessary thing to know within the research that he is doing. The text stated the manner of creating a grey market within the markets as manufacturer ends up with an unauthorized channel of distribution that performs activities similar to the planned channel. That definition is comprehensive that a grey market starts in manufacturer but ends with no intervention of the original distribution path and it is deviating the original distribution path of the genuine manufacturer. The researcher cited the idea mentioned in the text saying that the only reason for existing grey market is the significance price differences and that idea is true for a great extend and there are some other reasons to exist grey markets but price difference is the major reason and the text is correct to the best.
Riffai, R., 2010. Sri Lanka Nokia agents tackle Chinese competition, Lanka Business Online, [online]. Available at: <http://www.lbo.lk/fullstory.php?nid=1855813359> [Accessed 09 Nov: 2011] Lanka Business online is Sri Lankas Leading online magazine for businesses and it is being Capturing the Sri Lankan online reading community over past two years and doing well by providing business news related to many fields. In this article, it mentioned how the Chinese grey phone industry invaded conventional mobile phone industry of Sri Lankan. The researcher used this article for getting the approximate market share rate of conventional brand and the grey mobile brands over past 3-4 years which are really helpful for the research study in qualitative manner. The data are more authoritative that those data are sourced from the softlogic Holdings Ltd, who are the Nokia agent for Sri Lanka. the article also mentioned that mobile phone users prefer to buy Chinese originated mobile phones in grey markets for many reasons and the main two reasons as per the article are significant price differences and the feature relate attractiveness. Totally the article was useful to the researcher in order to find the secondary data on market shares of conventional brands and brands in grey markets and also to determine the facts that motivate users to prefer mobile phones in grey markets over conventional brands.
Samil, A.C., and Hill, J.S., 1998. Marketing Globally Planning and Practices. Chicago: NTC Business Books The book is all about the way of doing marketing in global context. Marketing is not limited for a destination but it is embracing the entire globe, as the book states. The book gives more and more examples to prove those and a reader who is referring this book will be able to catch all the important elements that are involving in the global marketing arena. The researcher used this book to get the knowledge on grey markets and grey marketing. The definition on grey market was helpful to the researcher in order to develop the literature review with the concept Grey Market. As per the text Grey market is a place where there can be seen an involuntary entry mode for product whose prices are very significantly from one market to another. Researcher got the practical aspects and influences of grey markets after studying the example regarding the grey market of world famous Watch Brand Seiko. The text mentioned that high quality Seiko watches are selling at USA through better jewelry shops and department stores with warranties. But in Kenya there are same products for very low prices which those products reach the Kenyan market through an unauthorized distribution channel. Those kinds of real world examples mentioned in the text helped the researcher to understand how grey markets invaded the world of marketing in the recent past.
Schoell, W.F. and Ivy, T.T., 1982, Marketing: Contemporary Concepts and Practices, Boston: Allyn and Bakers The text is in to detail on the concepts of marketing. Both Schoell and Ivy well known writers for marketing related books and they had shown their high competency regarding their knowledge on marketing by writing this text. Researcher referred the text to get the literature on branding concept, especially on brand preference. As per the text it defined Brand Preference as The status of accepted and preferred over others in the same product category. The sole idea on brand preference is with that definition liking a brand over another brand.
Stantion, W.J., Etzel, M.J. and Walker, B.J., 1991.Fundimentals of Marketing. New York: McGraw Hill This book was written in 1991 in the era where the marketing concepts had been developed and applied rapidly to the practical scenarios. The book mentioned all the basic areas of Marketing and especially targeted the study of consumer behavior, retailing and whole selling and their practical values. Telling about the authors Bruce J. Walker, William J. Stantion and Michael J. Etzel are professors in Marketing and well qualified researchers for doing many market as well as marketing researches in recent past. They together wrote about 15 books in the subject area of marketing. The researcher used this text to cite a definition for brand and the text mentioned the definition of American Marketing Association on Brand as Name, Term, Symbol and / or a special design that is intended to identify the good or services of one seller or group of sellers. The text was helping the researcher to find out a definition for Grey Marketing and the text defined grey marketing as Products distributed by a hole selling middlemen do not wind up where product- supplier intend. Product as sold trough distribution channels that are not authorized by the manufacturer this practice. The text emphasizes the intervention of unauthorized middle parties for original distribution channels are the base for occurring grey marketing practices.
Sticky Marketing.net. 2011. Brand Loyalty. [Online] Available at < http://www.sticky- marketing.net/glossary/brand_loyalty.htm> [Accessed 10/11/2011] Sticky Marketing.net is a website which is maintaining with databases regarding the articles on marketing concepts. It is very helpful for beginner researchers to find out the definitions regarding marketing concepts. It clearly mentioned the marketing related concepts and their definitions in a user friendly web layout. The researcher used this web site for getting a definition related to brand loyalty and founded a definition on the web site which described brand loyalty as Situation occurs When a customer or group of customers switch their allegiance form one brand of a certain type of product to another and this will happen with the failure of the brand of not providing what customer exactly expected as further expressed in the web. This is the truth that if a brand
fails to deliver what customer expects, definitely the brand will fail and customer will shift from that particular brand to another brand.
Sutherland, J. and Conwell, D., 2004.Key Concepts in Management. New York: Palgrave Macmillan The Book, Key Concepts in Management is a well developed book under the basic concepts of management such as Marketing, General Management, Economics and etc. Telling about the authors both Jonathan Sunderland and Diane Conwell, they were lecturers in marketing in their early life and now they are professional authors for many business management and management books. The book was very useful for the research in order to get the literature regarding Branding and its concepts such as brand image, brand loyalty etc. The researcher got the definition of the text regarding Branding as The Creation of an association between a name of a product and various values, image, awareness, recognition and the definition itself describes that branding is all about linking the name of a brand with its core characteristics such as value, image etc for getting a separate recognition over other similar brands in the market. The researcher cited definitions regarding brand loyalty and brand differentiation by referring the text and the valuable idea that the researcher got by citing these definitions is differentiation of brands will help those respective brands to retain in the market and to grow the brand loyalty with the advancement of the time retains in the market.
Telecommunications Regulatory commission of Sri Lanka, 2011. Corporate web site Statistics. [Online] Available at < http://www.trc.gov.lk/information/statistics.html > [Accessed 10/11/2011] The corporate web site of Telecommunications Regulatory commission of Sri Lanka provided researcher information about the mobile phone subscriber rate, statistics on the number of mobile phones in Sri Lanka and the telephone density of Sri Lanka including landlines, CDMA and Mobile handsets etc which are really valuable for doing the secondary data collection on the research.
The graphs and tables at the statistic section of the web site mentioned the growth of mobile phone usage in Sri Lanka over the past two decades and that data was really helpful for the researcher for collecting secondary data related to the research.
The Sunday Leader, 2011. Interview with Nokia Emerging Asia Corporation, [English] 13/11/2011. Available at http://www.thesundayleader.lk/?s=13%2F11%2F2011&x=0&y=0 [Accessed 13/11/2011] The Sunday leader is one of the most leading and popular news papers in Sri Lanka and also available online. This document is mentioned some comments on the mobile phone industry in Sri Lanka which the comments were abstracted from an interview with Nokia Emerging Asia Corporation. The abstract of the interview mentioned at the e-news paper is useful to the researcher that it mentioned how the mobile phones in grey markets invaded the conventional mobile phone market in Sri Lanka and it also stated some comments regarding why people attract on mobile phones flooding under grey markets especially Chinese originated ones.
Vaghefi, R., and Huellmantel, A.B., 1999. Strategic Management for the 21 st Century. CRC Press The text is stating the Concepts of Strategic Management with lot of illustrations and descriptions for clarifying the concepts. The book is really useful for the decision makers of organizations, thinkers and planners of real organizations, students who are doing business management in strategic point of view and any person who are interested in studying the subject. From this reference, the researcher was able to get the fully idea regarding the trend analysis chart that can be used to evaluate and identify a trend or set of trends occur in an industry and also will be helped on developing strategies to face the challenges from those trends. The research topic is all about studying the trend of preferring mobile phones in Grey Markets and by using the chart it will easy to understand the trend and how it happened with the factors that influenced for occurring it.
Vaid, H., 2003. Branding: Brand Strategy, Design and Implementation of Corporate and Product Identity. New York: Watson Guptill Publications. This book is an advanced book that provides a great space for a reader to become a true learner on branding concepts. The book is suited for the students in Bachelors level and upper whose interested field is branding that the book is having an in-depth analysis on branding concepts. Telling about the author, Helen Vaid is an Independent Consultant in Marketing and Management and with her experience in the field, she was able to wrap all her experience in branding for publishing the this book as her first book. The researcher used this authority to get the literature in branding concepts. In the text it defined brand as distinct product, service or business and the text further emphasized that a powerful brand can speak to customers directing to born brand preference and finally the loyalty o that brand. The text defined branding as Act of impressing a product, service or a business and that is the way of making customers aware on a brand. The text argued that modern definitions for branding were created at the 19 th century with the Mass production with the industrial revolution and the concept was developed under the rapid advancement of the telecommunication technology. At another argument by the text, it stated that branding is not only a physical and visual aspect, but it is creating a strong bond in the customer mindset.
Wikipedia. 2011. Grey Market. [Online] Available at < http://en.wikipedia.org/wiki/Grey_market> [Accessed 08/12/2011] Wikipedia is the site where there are thousands of articles written by anonymous writers for free of charge. It is having both valid and invalid documents and the users have to be careful in using such web sites like Wikipedia. The researcher was able to find out a definition for grey market and it defined Grey Market as The Trade of a commodity through distribution channel which while legal, are unofficial, unauthorized or unintended by the original manufacturer. The researcher agrees upon this definition that it give the basic idea of grey market in a comprehensive manner.
Appendix 02: Questionnaire related to the Survey of the research study
I am an undergraduate student of the Bachelors of Science Degree Program (Batch - 14) related to University College Dublin, Ireland with the local affiliation of National Institute of Business Management, Colombo 07. As per the requirement on completing my Bachelors degree, I am conducting a Research on Factors Affecting Mobile Phone Users to Shift towards Grey Markets and I need your kind help to collect data by filling the below mentioned Questionnaire. Thank You, Yours Faithfully, K.T.Dinum Nisansala
Questionnaire Question 01: - Please Tick your Age Category
20 Years to 24 Years 25 Years to 29 Years 30 Years to 34 Years
Question 02: - Please Tick
Question 03: - Please Select Your Occupational Type
Government Sector Private Sector Self Employment Non Employed
Question 04: - Select Your Income Level
Less than 10,000/= 10,000 - 25,000 25,000 40,000 Over 40,000 Male Female
Question 05: - Select the category of the Geographical area where you are living
Urban Rural
Question 06: - Are you a first time user of a mobile phone?
Question 07: -If Yes, Please mention what is the category of your mobile phone which you are using as a first time user
Brand Name Country of Origin Local Agent No Brand Name No Country of Origin No Local Agent
Question 08: -If you are having purchased for the first time, what were the factors that motivated you to prefer such a product?
Please assign 1 for highly motivating factor, 2 for moderate motivating factor and 3 for less motivating factor.
Low Price Levels Offered Features Attractiveness (Appearances) Promotional Activities
Any Other Reason .. Question 09: - Select the price range of the mobile phone which you are using LKR 1000 LKR -2000 LKR 2001 LKR 3000 LKR 3001 LKR -4000 LKR 4001 LKR -5000 LKR 5001 LKR 8000 LKR 8001 LKR 11,000 LKR 11,001 LKR 14,000 LKR 14,001 LKR 17,000 LKR 17,001 LKR 20,000 LKR 20,001 LKR and Up
Yes No
Question 10: - If you are not a first time user, did you shift toward mobile phones in grey market (No Brand Name, No country of origin, No local agent) at your last purchase?
Yes No
Question 11: - If yes, what are the factors that motivate you to prefer a mobile phone in the grey market at your last purchase?
Please assign 1 for highly motivating factor, 2 for moderate motivating factor and 3 for less motivating factor.
Low Price Levels Offered Features Attractiveness Promotional Activities
Any Other Reason
Question 12: - Select the price range of the mobile phone which you are using now after replacing the last one LKR 1000 LKR -2000 LKR 2001 LKR 3000 LKR 3001 LKR -4000 LKR 4001 LKR -5000 LKR 5001 LKR 8000 LKR 8001 LKR 11,000 LKR 11,001 LKR 14,000 LKR 14,001 LKR 17,000 LKR 17,001 LKR 20,000 LKR 20,001 LKR and Up
Question 13: - Are you aware of the need for the TRCSL Approval regarding the quality and the health safeguards relating to Mobile phones?
Yes No
Question 14: - As you think, what are the issues occurs when increasing the number of mobile phones in Sri Lanka? .. .. ..
Thank You very Much! Appendix 03
Confirmation Certificate
Congratulations!
You have successfully completed the Library Plagiarism Quiz.
Student Name: K.T.D.Nisansala
Student Number: 10296085
Date: 28 th January: 2012
THIS IS TO CERTIFY THAT (signature) HAS COMPLETED THE PLAGIARISM QUIZ
Remember that the confirmation certificate is a statement by you that you understand plagiarism and know how to avoid it. If you think that you do not understand plagiarism and how to avoid it after working through this tutorial, you should confer with your module coordinator, no matter what score you have obtained on the test.
Please print out this page and attach a copy of the certificate to the final page in all assignments you submit on each module as part of your programme (It is your responsibility to print the certificate, complete the information, sign it, and keep a copy of it for your records) Appendix 04