LAPTOPS – A STATISTISTICAL STUDY ON THE PREFERENCES OF GIM STUDENTS

By: Khushagra Deep (2010144) Levllyn Rocha (2010145) Lincoln Araujo (2010146) Madhumitha J (2010147) Nandini Choudhary (2010149)

LAPTOPS – A STATISTISTICAL STUDY ON THE PREFERENCES OF GIM STUDENTS

Submitted to: Prof. Sharmila Veloso and Prof. Raghuvir Vernekar In partial fulfillment of course requirement in Management Communication

By: Khushagra Deep (2010144), Levllyn Rocha (2010145), Lincoln Araujo (2010146), Madhumitha J (2010147), Nandini Choudhary (2010149)

PGP1 – Goa Institute of Management

September 25, 2010

MEMORANDUM

DATE: TO: FROM:

September 20, 2010 Sharmila Veloso and Raghuvir Vernekar Kushagra Deep, Levllyn Rocha, Lincoln Araujo, Madhumitha J and Nandini Chaudhury.

SUBJECT:

LAPTOPS – A STATISTICAL STUDY ON THE PREFERENCES OF GIM STUDENTS

Here is the report you requested on August 20, 2010 about the buying behavior of laptops of the students of Goa Institute of Management. The study included both primary and secondary research. The primary study focused on the students of Goa Institute of Management, Sanquelim. Although there were a few variation from the norm, conclusions on the contemporary trends were very apparent. Most students bought laptops with either education or an all round purchase in mind. We recommend that retailers stock up on these laptops during the beginning of the academic year concentrating on laptops having good value for money, since brands like Dell are popular in the student community. We are grateful to the first year students of Goa Institute of Management, Sanquelim, for supporting us by taking part in the survey. Their enthusiasm and support contributed greatly to the success of our project. Please call, Professor. Sharmila Veloso, if we may provide any additional information that you may need or answer questions.

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TABLE OF CONTENTS

MEMORANDUM ................................................................................................................................ ii EXECUTIVE SUMMARY ................................................................................................................. iv LAPTOPS – A STATISTICAL STUDY ON THE PREFERENCES OF GIM STUDENTS ............... 1 Statement of purpose......................................................................................................................... 1 BACKGROUND .................................................................................................................................. 2 METHOD ............................................................................................................................................. 3 ANALYSIS OF DATA ........................................................................................................................ 5 Analysis of mean values ................................................................................................................... 7 Brand-wise breakup .......................................................................................................................... 8 Usage patterns ................................................................................................................................... 9 CONCLUSIONS .................................................................................................................................10 RECOMMENDATIONS .....................................................................................................................11 REFERENCES ....................................................................................................................................12 APPENDIX .........................................................................................................................................13

LIST OF FIGURES Figure 1 Attributes mean rating……. ……………..………………………………………….. 7 2 Buyer Focus……………………………………………………………………...…... 8 3 Brand-wise breakup ……………………………………………………………...….. 9

LIST OF TABLES Table 1 Majority votes……. ……………..………………………………………………….. 5

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EXECUTIVE SUMMARY

Purposes of the report The main purpose of the report is (1) Analyze the laptop market in MBA colleges to infer the buying trends of students and (2) advise potential retailers as to how they can cater to this demand. A questionnaire survey was circulated within the first year students of the Goa Institute of Management out of which a total of 50 students responded to the survey. Note that this report focuses on one college and is not representative of all colleges. Buying trend at GIM The main finding of the survey was that students mainly purchase laptops that have a decent set of all round features. Many of the student purchase for the sole purpose of education. A comparison between men and women reveals that the trends followed are almost similar. The main features that potential buyers are looking for are a large amount of RAM, a good processor Wi-Fi, Battery Life and Value for money. Students are not willingly to spend much and a majority of them just want to have the basic configurations are required in an MBA course Recommendations to retailers Some of the recommendations we have are (1) retailers should concentrate on laptops which have good all round features that are available at reasonable prices for students. (2) Models offered should have a good processor, a good amount of RAM. (3) In addition it should be able to connect to a network via Wi-Fi as this is a requirement in most college campuses.

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Laptop – Current Trends

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LAPTOPS – A STATISTISTICAL STUDY ON THE PREFERENCES OF GIM STUDENTS To determine the laptop buying behavior of students at GIM The purpose of this report is to collate information about the current trends among MBA 1students in the laptop market. This analysis can be of use to laptop retailers as well as manufacturers to understand the market with regard to laptop sales in MBA colleges (specifically GIM). The report will compare value for money, brands, after sales services, features and cost of ownership. From the data collected we can draw conclusions as to exactly what a potential MBA student is looking for when he or she starts the course at the Goa Institute of Management. The report is significant to laptop companies as this information can be used by them to understand current trends in buying behavior of students. This can help in improving sales and adapting market strategies of various laptop retailers. It can also be used to help the college get a bulk order from the vendors at the beginning of the academic year. The study is limited to the laptop buying preferences of students of the Goa Institute of Management only.

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BACKGROUND The idea for the need of this report arose from the situation that was faced by the batch of 2010-12 at the Goa Institute of Management. When joining the college the usual bulk laptop deal that is offered by the college could not be availed of because of the low numbers who opted for it. The college only offered a single laptop which was priced quite expensively. Hence we thought that we could investigate more deeply into what the average student wants in his or her laptop. Not all have education in mind while purchasing. There are music lovers, programmers, gamers and many other genres under which potential buyers can be classified under. Apart from this many look for specific features when they buy. With the wide variety of options available it is not very easy for students to decide on what to buy. Nor is it easy for retailers to know the current trends of the laptop markets. The data collected by us aims at looking for the general preferences of the average MBA student. We thought that the data collected by us could be used for a variety of purposes like in improving sales and adapting market strategies of various laptop retailers. Also it could help the college and the vendors come to a consensus on a bulk deal for the upcoming academic year.

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METHOD Participants The first year students of Goa Institute of Management were the participants. The college has pan Indian presence of students. The college raised the number of seats in 2010 from 120 to 240 students. The students are not just academically qualified but also have strong cocurricular background. Their hobbies vary from music, professional computer gaming, photography, cinematography, animation. Academics and hobbies are the main factors that define the choice of students while buying laptops. India is a country of cultural diversity, and as the students are from various parts of the country, their hobbies are dependent on the culture of their region. Our sample, thus, reflect the diverse levels of performance that these students will require from their laptops. The requirements for academics are common. The laptop is expected to run Microsoft Office Suite, one of the leading business software along with statistical software like SPSS. The College is one of the leading B-Schools in India and the faculty is skilled in the latest software. In fact, they have a visionary approach so they insist on planning according to the future. Thus laptops bought keeping in mind the requirements of future software. Procedure The students were asked seventeen scale questions in which the students had to rate their preference on a scale of five with respect to various factors. The answers were too be rated on the scale of 1 to 5 (5 being the most important). Therefore if for example one didn't see the battery life before buying, you would give that a lower importance, score of one or two. Survey questions like the brand preference, configuration and specifications were asked. These were the factors which lead to the students’ satisfaction with respect to the performance of laptops. These factors decide whether their academic and leisure related requirements are met by the laptop or not. There are questions related to other aspects like looks and style which were not that important to the budget conscious students.

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The requirements for academics are common. The laptop is expected to run Microsoft Office Suite, one of the leading business software along with statistical software like SPSS. The College is one of the leading B-Schools in India and the faculty is skilled in the latest software. In fact, they have a visionary approach so they insist on planning according to the future. Thus laptops bought keeping in mind the requirements of future software. Procedure The students were asked seventeen scale questions in which the students had to rate their preference on a scale of five with respect to various factors. The answers were too be rated on the scale of 1 to 5 (5 being the most important). Therefore if for example one didn't see the battery life before buying, you would give that a lower importance, score of one or two. Survey questions like the brand preference, configuration and specifications were asked. These were the factors which lead to the students’ satisfaction with respect to the performance of laptops. These factors decide whether their academic and leisure related requirements are met by the laptop or not. There are questions related to other aspects like looks and style which were not that important to the budget conscious students.

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ANALYSIS OF DATA The data that we collected to had to be sorted and analyzed, as it could not be used in its raw form. We have summarized a series of tables and charts to be used as aides. This enables us to understand what the data is ultimately conveying and helps us to draw inferences.
Table 1: Majority votes for different factors

Factor Battery Wi-Fi Processor type Value for Money After sales Service RAM Hard Disk Screen size Sound quality Bluetooth Looks Weight Graphics card Indicator lights Camera

Majority Rating 5 5 5 5 4 4 4 4 4 4 3 3 3 2 2

Numbers 27/50 26/50 26/50 25/50 27/50 24/50 22/50 21/50 20/50 17/50 20/50 18/50 13/50 20/50 17/50

Percentage 54 52 52 50 54 48 44 41 40 32 40 34 26 40 32

As can be clearly seen certain factors have begun to clearly stand out from the rest in terms of adding desirability and value to laptops.

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The highest ranked votes were garnered by the attributes listed below. Battery A laptop being a portable computer has to able to power itself without requiring charging for long periods of time. This is inherent to the functionality of the machine. Unavailability of charging points is a common phenomenon, due to the uncertainty that accompanies the easy access of charging points people usually prefer to have a laptop which promises them several hours of usage before having to charge the machine up again. This may be one of the reasons that the maximum number of people have chosen to give the battery the highest possible importance, and hence a rating of 5. Wi-Fi Being in a college setup there are several areas in which getting access to a LAN port is impossible, and here we have to make use of a wireless connections. Wi-Fi offers not only a high speed of connectivity but also a secure connection. Being able to access the network wirelessly becomes imperative so as to get to your data as soon as possible, which might explain the reason for Wi-Fi being given a high rating of 5 by a majority of those surveyed. Processor type The processor type not only defines how fast your system will function but in this age of multi-tasking decides on how many applications you can run simultaneously. For the aspiring manager, being able to complete multiple tasks at different deadlines means, being able to work on several things at once. This is probably the reason those surveyed have given thought to what processor their machine possesses, and have hence rated it at 5. Value for money In this time and age every person wants to get as much for their money as possible. They not only research their buys thoroughly but weigh the pros and cons the different offerings grant them. Especially in the Indian context, when purchasing a high value item much thought goes into the process. This possibly explains the rating of 5 to Value for money.

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Analysis of mean values The previous table showed us the results from taking a majority of the votes and gave us a picture of what factors were important. The inadequacy of the method was that it took into account only the largest group of votes, and not the overall trend that was emerging. Taking an average (mean) of the data for each factor, gives us a clearer picture, as it considers data for the entire spectrum and not just one point individually.
Figure 1: Attributes mean rating – In descending order of preference

The graph above throws in a surprising leader to the board, it puts the factor of RAM at the top of the chart when it comes to averages. This is as a large number of people have voted for RAM as an important factor the votes are split among the top ratings of 4 and 5. This clearly begs the question as to why RAM is such an important factor to most people? Although your computer might have a good processor and a great HDD, the bottle neck between both is the RAM. If the quantity of RAM is too little, regardless of your other hardware the operating speed of your computer might be seriously affected. Most students are aware of this and have thus given due and just importance to this factor.

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The other Top factors are pretty much the same as those displayed in the table above. Brand-wise breakup A whopping majority of the students taking the survey had purchased Dell laptops; this was a very surprising and caused us to investigate further.
Figure 2 : Breakup of brands

Lenovo 4% Compaq 8% Acer 2%

HP 6%

Asus Sony Vaio 2% 4%

Brand Breakup

Dell 74%

Dell computer’s offer one of the most flexible routine when it comes to purchasing of laptops. It not only provides you with the chance to customize your machines hardware, but offers different options with respect to the looks and add-ons to your system. It so happens that dell has very comprehensive after sales service. i.e. in the warranty period in case there is any problem with the system they send a service person to your current address on the next business day so as to rectify the fault. This makes it very convenient and easy for the students, as their busy schedule is minimally interrupted. Also with an added amount over the sticker price, dell provides up to 3 years of comprehensive cover for the laptop, it covers all kinds of damage, other than loss by fire and theft. Students being users in very high risk conditions find this as a great value add on to the service provided by dell which makes the offering by dell complete value.

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Usage Patterns As can be seen from the graphs below. The main focus when buying the laptop of the various people was very different. Nearly 32% focused on use for education purposes. While 38% wanted a machine with all round features. 18 % wanted a machine that was oriented towards gaming. Not surprisingly the 18 % were all males, and no female in the survey group stated that one of the needs for buying the laptop was gaming.
Figure 3: Buyer Focus

Main Focus
Music 2% Education 32% All round 38%

Gaming 18%

High End Applications 10%

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CONCLUSIONS The main focus of students when purchasing laptops is all round experience with many students aiming just for the basics required for education. This conclusion is based on the fact that 70% of the students stated the same. Most of these students have purchased a laptop for the first time. A majority of the women had education as their primary focus. In contrast men went in for a model that was good all round across the various features offered. Almost 20% of the people surveyed mentioned that gaming was an important factor in choosing which laptop to buy The most important attributes that an MBA student looks for are RAM, Processor, Wi-Fi, Battery Life and Value for money. While Indicator lights, Camera, Weight, Graphics card and Looks do not matter much during purchasing a laptop. Dell is by far the most popular brand among the student community. This is as it offers good quality at affordable prices. It also allows customization. In general the trends between men and women were similar. Men rated RAM, Wi-Fi and Battery life higher than women. Women on the other hand gave relatively more preference to Value for money and Hard disk space than their male counterparts

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RECOMMENDATIONS Retailers should concentrate on laptops which are good all round, which are available at reasonable prices for students. Models offered should have a good processor, a good amount of RAM. In addition it should be able to connect to a network via WiFi as this is a requirement in most college campuses. Keeping a large stock of Dell as it seems to be the most popular among all the brands. A special offer for students either at the retail outlets or directly at the colleges is a good idea to boost sales just before the first semesters.

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REFERENCES Nilson, L. &. (2004). Enhancing Learning with Laptops in the Classroom, New Directions for Teaching and Learning. Rocha, L. (2010, September 25). Data collated by the authors of this report from the survey conducted by them on Laptop Preferences. Retrieved from Google Docs: https://spreadsheets.google.com/ccc?key=0AtG8Y5ZidNkpdGFVS3VoLWhoVnZnVTV zNHVveG83NXc&hl=en#gid=0 Weaver, B. E. (2005). Laptops in class: What are they good for? What can you do with them? Enhancing Learning with Laptops in the Classroom, New Directions for Teaching and Learning , 3-13. Wikipedia - Laptop entry. (n.d.). Retrieved September 25, 2010, from Wikipedia: http://en.wikipedia.org/wiki/Laptop

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APPENDIX Questionnaire General Information 1. Name. 2. Gender. 3. College. 4. What is the brand of your laptop? Dell Compaq Vaio Asus Lenovo HP Acer Other

How you chose your current laptop? Rate on a scale of 1 to 5 the importance of the attribute of your laptop (5 being the most important). Therefore if for example you didn't see the battery life before buying, you would give that a lower importance. 1. Value for Money 2. After Sales Service 3. Looks 4. Weight 5. Processor Type 6. Hard disk space 7. RAM 8. USB Ports

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9. Screen Size 10. Indicator Lights for Caps Lock etc 11. Graphic Card 12. Camera 13. Bluetooth 14. Camera 15. Sound Quality of Speakers 16. Battery Life Main Focus for Purchasing your Laptop? Gaming For High End Applications For Cool Looks For Basic Educational Use All Round but Nothing Specific Others