Unit 6 Business Decision making

     Unit No:                 6
     Title:                       Business Decision Making


The start of new business (mobile phone sale)and the problem faced by the business.


Cellular phones business is the most confused marketing locations these days owing to improved struggle and alteration. Therefore, that is of increasing anxiety to watch at customer purchasing choice procedure and throw beam on the issues which at long last decide customer selection or choice among diverse cellular phone brand names in the UK marketplace. The influencing purposes to obtain latest cellular phones on one side and reasons which persuade on mobile phones alteration on the other side. Due to the usage of a sequence of focus grouping discussions  by means of  graduation level students followed with a another survey of different people, it was established that though the selection of a cellular phone is a individual preference condition, still there are a number of common features or factors which appear to direct the selection. The both findings illustrate that although technological troubles are the essential cause to alter cellular phone among people; pricing, brand name, interfaces, and new features are the most significant aspects or factors that affect the real selection among different brands of mobile phone.


In this study first of all I shall introduce the problem faced by the mobile phone business and then the reason of that problem.
The major problem in the mobile phone business is the costumer’s choice and the competition among different companies. 
This study will explore the factors affecting consumer choice for the mobile phone regardless of the ‘service providers’ in the UK within community. By applying the focus group technique and survey method, researcher will determine the existing public opinion, trends and decision making criterion in selecting mobile phones.


  1. To investigate the selection behaviour of the respondents for cellular phones.
  2. To explore the underlying motives that facilitates their decision making
  3. To assess the impact of marketing, prior knowledge and hypothetical interferences on respondents before buying mobile hand-set.
  4. To explore the awareness of various choices of products within respondents.
  5. To highlight prevailing trends in ‘consumer behaviour’ for mobile phone market.
  6. To address un-addressed crucial factors within respondents which affect their buying behaviour for the cellular hand-sets
  7. To appraise the literature on consumer behaviours within mobile phone industry.


  1. It will briefly describe the contemporary models & theories of the consumer behaviour within telecommunication sector
  2. That would be the unique research of its kind which will focus on mobile handsets not available from service providers due to consumer contracts.
  3.  Results of this research will be of significance for the mobile retailers and companies.
  4. It will highlight the psychology and adoptability of mobile technology within different segments of the UK population.

P1. The selection of a plan for collecting data
Secondary data
Secondary data refers to the information that has already been collected for other purposes and thus readily available. Secondary data can be collected from two different sources.

Internal data sources:
          Sales by country
          Sales by products
          Sales by volume
          Pricing information
          Communication mix information
          Sales representatives

External source of data:
  • The Government (www.statistics.gov.uk)
  • Competitors
  • Trade Publications – e.g, the Grocer
  • General media
  • National and local press / magazines
  • Internet
  • Informal contacts
  • Trade directories
  • Libraries
  • Professional institutes and organisations
  • Census data
  • Public records

Primary data
Primary data refers to the information that is collected first hand, generated by original research tailor-made to answer specific current research.
Primary data can be collected by two ways.

          Quantitative research: Provides Quantitative research is a method which involves collecting numerical data (which is analysed at a later stage) in order to test a particular hypothesis or analyze a certain assumption about society.  ‘Quantitative research is empirical research where the data is in the form of numbers’. (Punch, 2005, Pg. 3)

          Qualitative research: Provides a holistic view of a research problem by integrating a larger number of variables, but asking only a few respondents.
In quantitative and qualitative research, the commonly used methods are:
1.       Questionnaires
2.       Surveys, and
3.       Structured interviews.

The best example of quantitative method is questioner that means numerical data will be used like calculation etc. whereas qualitative method in which data cannot be calculated the best example is interviews. In this research I used both the method questioner and interviews. I shall prepare the questions like about the choice and likeness of the mobile handsets in UK market.

P2. Describe and justify the survey methodology and frame used.
Both qualitative and quantitative methods were used in this case study by following ‘mix & match’ approach to get accurate results.
Focus group interviews were conducted with four groups of students. Indeed, there was a open-invitation to participate in it and anonymity was respected. Help was taken from couple of colleagues to act as ‘Moderators’. A project brief and ‘list of questions’ was developed for moderators. This helped to achieve the objectives of the focus group interviews.

After designing questionnaire for the survey, I decided to take random respondents. A few national & under-ground stations were visited in London city to get random respondents.

Permission was gained firstly from respondents that they would receive call, email or postal survey (as per their convenience) for this study.
Following table will describe the classification of the respondents

Types of Survey
No. Of Participants
E-mail survey
Telephone survey
Printed survey

‘Flexible approach’ were adopted throughout the research process in order to ease respondents. Questionnaire had following topical coverage in the questions.
a.       The basis of decision-making in phone selection
b.      Price
c.       Brand
d.      New features
e.       Recommendation or prior knowledge

P4. Information for decision making

Through focus groups interviews 74 respondents gave their open-views on the topic of the research. 200 respondents participated in the survey.
Apart from these sources, literature searches were carried out on electronic databases. Also some books were consulted on ‘consumer behaviour’, marketing research and ‘research methods’. A couple of quick searches on Google resulted into bring out some quality evidence on ‘pilot study’.

Validity issues

This research was indeed able to attract some respondents. However, keeping in view the size of mobile consumers in UK it is still a very small study. But this research carries validity due to its outreach towards genuine consumers of the mobile hand-sets. Qualitative and quantitative research approach helped to grasp the complexity in the topic of ‘consumer behaviour in mobile industry’. No doubt, one cannot generalize the findings of this study to complete UK mobile telecommunication sector but still this study provides  insights into small chunks of the consumers that how they select the mobile hand-sets.



I examine customer liking concerning cellular phone purchase in the focus group set. Focus group system was selected as the deep examination of the observable fact as well as to provide the opening tip to the study 2. The Focus groups create information which is forever subjective from different respondent however as well supply significant information founded on grouping communication and provide insight which is less easy to get by means of other interview means (Morgan, 1991, 1992; Threlfall, 1998, 1999).

The sum of 4 focus grouping type interview was performed in March 2010 along with graduation level youngsters. The quantity of member within every group range as of 16 to 20, along with mainly of the youngsters were from 21-26 years of age. By means of these groupings 2 vital standards measured which were significant within focus grouping discussions were attained: the groups were not homogenous within the conditions of demographic as well as socioeconomic features however besides mutual a moderately ordinary foundation of knowledge by means of the subject that was under consideration. Even if the figures of members within every focus group were sensibly high contrast to the perfect quantity 8-12 recommended during market study literatures the dialogue within the members as well as among the mediator was soft.


Survey (n = 223) proposes that there are basically two different frame works that could be utilized to learning customer selection actions or behaviour; The typical difficulty resolving concept as well as the sequence of customer selection as of items division by brand name selection.

Survey; n = 351
Customers build selection among different base on partial in sequence hunt as well as dispensation.

Survey; n = 117
Literature review
Selection is prepared with no thorough assessment of substitute.

Four experimentations;
n = 88
In this count selection completed since big variety be able to guide to poor action.
Three learning’s; n = 48; n = 66; n = 28
Furthermore, item for consumptions knowledge persuades liking owing to partial assessment of substitutes.

Two surveys (n = 234; n = 235)
Signifying to conjunctive heuristic is mainly utilized choice representation within the deliberation set arrangement.

Survey; n = 275
Customer choice building approach could alter owing to individual situation as well as mission specific issues.
Literature review;
Customer selection frequently happened mindful consciousness. Unaware sway influence selection a big compact than a lot of researching persons consider.


Survey; n = 638
Selections are frequently determined with self-indulgent consideration
Specially, the young the customer the extra self-indulgent characters customers be apt to worth in cellular phones. Cellular phone selection and practice is dependable to common utilization methods.

Survey; n = 95
Telling that earlier knowledge of cellular phone selection influences upcoming preference.

Survey; n = 499
Individuals time scheduling characters in cellular phones.
Predictions and analysis telling that latest technical qualities are driving purchasers towards obtain latest cellular phones
Survey; n = 799
 Moreover, dimension and trade name of the cell phone are disturbing selection.

Survey; n = 398
Worth of a cellular phone influences selection in places in which cellular phones are not connected to the network provider agreement. The four set discussion were guided by group member. Unique concentration was specified to offer a calm mood as well as thus building conversation non ruling and impulsive. This has been assured that just by letting impulsive relaxed communication focus groups are precious qualitative methods inside explore unaware requirements plus motive plus furthermore regularly supposed as extra thrilling plus start by members than surveys or face to face  dialogue (Edward and Bristol, 1996, 1997).

In this research primary and secondary data both are used, in primary data I use questioner method and interview because with this I can have a close contact with managers, owners and employees of different mobile phone maker and seller companies, which will help me in getting different factors of integration of customer choice of mobile handset. Questioners are also used for consumers in different areas so it is easy to get data.
 In Secondary data I will use books, journal article, and websites describing the basic concept about the choice of mobile phone in UK and business strategies and relationship between them.


Mobile phone choice in the U.K
Section 1: The following questions concern when, where, what and with whom you go shopping and how much you spend

  1. How often do you shop for mobile?
More than once a week                                    Once a month                          
Once a week                                                    once in 6 months                      
Fortnightly                                                       Less than 6 months                  

2.    What day do you go shopping for mobile phone mobile phone?
Monday                                                               Friday                                         
Tuesday                                                               Saturday                                     
Wednesday                                                          Sunday                                       
Thursday                                     

3.    How many hours do you spend shopping on each excursion for mobile phone?
0-1 hour                                                                3-4 hours                                   
        1-2 hours                                                              Others________________        
2-3 hours                                     

4.    Which store do you prefer to purchase apparel?
Department store                                                  Outlet store                               
High street shop                                                    Others_______________         

5.   Where do you obtain information about mobile phone before shopping?
Television                                                              Newspaper                               
Magazine                                                               Others_______________        
Radio                                          

  1. Who do you go shopping with?
On my own                                                      Mother/Family                        
Friend/s                                                Other______________                        
Girlfriend                                     

Does the person/s influence your purchase?
Yes                           No                           Sometimes      

7.    Who usually buys your mobile phone?
Myself                                                                Mother/Family             
Friend/s                                                  Other______________           
Girlfriend                          

7.      On an average what percentage of your monthly expenditure is spent on:

%  spent
Mobile phone

Other Mobile phone products

Entertainment & entertainment products

Consumer products

Others (Please specify) :

Please indicate the extent to which you agree or disagree with the following statements

1=Strongly Agree      2=Agree     3=Neutral     4=Disagree     5=Strongly Agree”

SA      A       N       D      SD
Extrinsic Criteria
9.    I choose the well-know, national, or                                 1        2        3        4        5
Popular mobile phone brands.
10.  I usually choose expensive brands.                                    1        2        3        4        5
11.  I have favourite mobile phone that I buy.                        1        2        3        4        5

12.  I think that the higher price of the product, the              1        2        3        4        5
better the quality.
13.  I buy as much as possible at sale price.                            1        2        3        4        5
14.  I look very carefully to find the best value for                1        2        3        4        5

Country of origin
15.  I usually choose the country of origin of product.          1        2        3        4        5

1=Strongly Agree      2=Agree     3=Neutral     4=Disagree     5=Strongly Disagree”

SA      A       N       D      SD
Store; Store image
16.  Shopping in different stores is a waste of time.                 1        2        3        4         5
17. I visit the same stores each time I shop.                              1        2        3        4         5
18. For variety I shop in different stores and buy                    1        2        3        4         5
different brands.
19. Sometimes, it’s hard to decide which store to shop.           1        2        3        4        5
20. I keep my personality up to date with the changing           1        2        3        4        5
mobile phones.

Salesperson’s evaluation
21.  My favourite store offers a good personal service.            1        2        3        4        5
22.    I like to have a salesperson assisted me selecting             1        2        3        4        5
the product.

Department in store
23.  I tend to shop in a store with a variety of                         1        2        3        4        5

Approval of others
24.  I always seek the approval from others before I buy.       1        2        3        4        5

25. I tend to buy the products which have warranty.              1        2         3        4       5
Please state how important the following factors are in your choice of mobile phones.

“1=very important    2=important    3=Neither   4=Unimportant   5= Very unimportant”

VI       I        N      U      VU
28.  Product Composition

Style                                                                                        1        2        3        4        5
Colour / Design                                                                      1        2        3        4        5
Mobile phone                                                                         1        2        3        4        5
Appearance                                                                            1        2        3        4        5
Applications content                                                              1        2        3        4        5

29. Product performance
Easy for care                                                                            1        2        3        4        5
Mobile shape and size                                                              1        2        3        4        5
Durability                                                                                 1        2        3        4        5
User friendly                                                                            1        2        3        4        5
Safety                                                                                        1        2        3        4        5
Colour of mobile                                                                      1        2        3        4        5

30. Quality
Construction / Workmanship                                                  1        2        3        4        5
Physical                                                                                      1        2        3        4        5
Software                                                                                    1        2        3        4        5

31. Colour Appropriateness                                                    1        2        3        4        5

Section 3: Profile

Age: __________ years

Status:  Single        In a relationship           Married          Separated/Divorced     

Occupation: ___________________________________

Your annual income:  lower than 5,000              5,001-15,000      15,001-25,000      
25,001-35,000                  35,001-45,000    More than 45,001 
Education:  Undergraduate Degree           Postgraduate Degree      


  1. This study is based on limited respondents as compared to huge marketing research projects of the mobile phone companies and service providers in the UK.
  2. This study is also excluding the ‘consumers’ who opt for mobile phone hand-sets due to their service providers.
  3. This researcher could not travel outside of the London City; hence it is difficult to say that it belongs to all UK despite by the fact that demography of the respondents was diverse.
 To sum up, with the help of first and second study, some declarations are able to be created. Firstly, though cellular phone selection is the biggest business problem in the mobile phone market influenced by some phone features, customers estimated, selection is frequently done with no thorough assessment and knowledge of the features and qualities that come with latest mobile handsets. Secondly, choice building mostly tracks a sensible choice building procedure in that diverse features are assessed, however besides has several figurative quality like brand name was considered as significant in a lot of study members. The mainly notable suggestion for cellular phone makers, mobile shopkeepers and different value chain constituents is that marketing of latest cellular phone have to be away from prominence features to show or discussed what consumer may perform through those latest technological characteristics.
Although, one have to keep in brain as there are number issues, like as law and diverse culture in different parts of UK, certainly give an effect on data. Regardless of above piece of study gives a little knowledge about the different features or factors which influence the customers’ behaviour in buying the cellular phone handset, the effort is presently in its initial level and has some limits relating to the study situation have to be distinguished for the guidance of future research.
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