Customer Buying Preference towards Laptops A Comparative Analysis of Lenovo and Acer Laptops

A
MAJOR PROJECT REPORT
ON
“Customer Buying Preference towards Laptops
A Comparative Analysis of Lenovo and Acer Laptops”
Submitted in partial fulfillment for the award of the degree
Master of Business Administration
Chhattisgarh Swami Vivekananda Technical University, Bhilai
.
Submitted by,
RAHUL PRAKASH SINGH
MBA 4th Semester
Session 2013-15
Approved By, Guided By,
DR.SOUREN SARKAR PRATHEMESH TELANG
Head of the Department Asst.Professor (FMS)
Shri Shankaracharya Group of Institutions
Faculty of Management Studies
Approved By AICTE
(Managed by ShriGangajali Education Society, Bhilai)

Major Project Report And Viva Voce 5377613082 2013-15
2
Rahul Prakash 08982419919
DECLARATION
I, the undersigned solemnly declare that the report of the project work entitled
“Customer Buying Preference Towards Laptop A Comparative Analysis of
Lenovo and Acer Laptops” is based on my own work carried out during the course
of my study under the supervision of Mr. PRATHEMESH TELANG.
I assert that the statements made and conclusions drawn are an outcome of my
research work. I further declare that to the best of my knowledge and belief the
report does not contain any part of any work which has been submitted for the award
of MBA degree or any other degree/diploma/certificate in this University or any other
University of India or abroad.
Place : Bhilai
Date :
_________________
Rahul Prakash Singh
MBA 4th
Semester
Enrollment No: AM5671

3
CERTIFICATE
This is to certify that the project titled “Customer Buying Preference towards
Laptops A Comparative Analysis of Lenovo and Acer Laptops” has been
conducted by RAHUL PRAKASH SINGH, a student of MBA 4th semester at Shri
Shankaracharya Group Of Institution, Bhilai. He has conducted this project under my
guidance and supervision.
_______________________________
Place: Bhilai MR. PRATHEMESH TELANG
Date: Asst. Professor
FMS, SSGI

4
ACKNOWLEDGEMENT
A written word often has the unfortunate tendency to degenerate genuine gratitude
into stilled formality. But this is the only way I can express my heartfelt thanks.
My special thanks to Mr PRATHEMESH TELANG , who has given me continuous
guidance and support during this project.
I would thank my friends, family and the residents of Bhilai/Durg city who has helped
a lot for successful completion of this report.
I shall be failing in my duty if I don’t express my deep sense of gratitude to my
Faculties and classmates, who have shared their valuable time and helped me
directly or indirectly in the preparation of this report.
Place: Bhilai Rahul Prakash Singh
Date : MBA – Semester IV

5
TABLE OF CONTENTS
i. DECLARATION 2
ii. CERTIFICATE 3
iii. ACKNOWLEDGEMENT 4
iv. TABLE OF CONTENTS 5
1. INTRODUCTION 6-10
2. COMPANY PROFILE 11-16
3. LITERATURE REVIEW 17-20
4. RESEARCH METHODOLOGY 21-23
5. DATA ANALYSIS AND RESULTS 24-26
6. FINDINGS 27-28
7. RECOMMENDATIONS 29-30
8. LIMITATIONS 31-32
9. CONCLUSION 33-34
vi. REFERENCES 35
vii. QUESTIONNAIRE 36

6
CHAPTER - 1
INTRODUCTION

7
INTRODUCTION OF STUDY
To sell a product it is must to make healthy relationship customers and
for this it is important to know the behavior of consumers. How they
satisfy? What are the expectations of consumers?
This project is undertaken to know the customer behavior & factor
influencing purchase intension for Lenovo and Acer laptops.
The present is the era of customers. Customers are more
knowledgeable than ever before and because the customer is more
knowledgeable, companies must be faster, more agile and more
creative than few years ago. So companies should strive to enhance
customer satisfaction through knowing their expectations regarding
products.
Laptops are an integral part of today’s student’s study kit. And with a
number of brands available the market, each trying to differentiate itself
from the other in terms of features, style, etc and trying to entice the buyer
with attractive offers, the decision of purchasing the laptop has become a
gruesome exercise for the customers. The very nature of the product

8
encourages the prospective buyer to go through all the stages of a typical
buying process. That is the reason that I have taken up to study the
consumer buying preference for laptop buying, A Comparative Analysis of
Lenovo and Acer Laptops.
HISTORY OF LAPTOP
It is very difficult to say when the first portable computer was created.
This is because the first laptop did not look the same as we know it
today. It could not be folded. The first laptop was probably invented in
1979 by William Moggridge. He developed his portable computer for
Grid Systems Corporation. His computer was five times lighter than any
other computer used at that time. Historians, however consider that the
first laptop was created in 1981 and its name was Osborne 1. Its
inventor was Adam Osborne who was also a former cool publisher. He
was the founder of Osborne Computer. His portable computer weighed
24 pounds. The company spent 1795 US dollars on creating the
computer. It had a five inch screen a special place for a modem and two
devices for using a floppy disk. There were also several programs
designed for computer and a battery pack for providing energy. The
computer however, was not successful. The same year saw the birth of
another computer called Epson HX-20. It was portable computer with a

9
liquid crystal display LCD monitor. The computer included a built in
printer. The whole was battery powered. One year later, in 1982, two
computer designers from Microsoft Kazuhiko Nishi and Bill Gates,
started their discussion concerning a new portable computer. The main
thing about the computer was a new LCD technology. The prototype of
the new laptop was presented to Radio Shack. The latter agreed to start
the production of the computer. A year later company launched its TRS-
80 model 100, which was a computer that looked pretty much like a
laptop we know it today.
Laptops usually run on a single main battery or from an external AC/DC
adapter that charges the battery while also supplying power to the
computer itself. Many computers also have a 3 volt cell to run the clock
and other processes in the event of a power failure. Laptops contain
components that are similar to their desktop counterparts perform the
same functions, but are miniaturized and optimized for mobile use and
efficient power consumption.
Although typically less powerful for the same price. Laptops usually have
liquid crystal displays and most of them use different memory modules
for their random access memory (RAM), for instance, SO-DIMM in lieu of
the larger DIMMs. In addition to a built-in keyboard, they may utilize a

10
touchpad (also known as a track pad) or a pointing stick for input, though
an external keyboard or mouse can usually be attached.
It is a little hard to determine what was the first portable or laptop
computer, the first portable computers did not look like the book-sized
and folding laptops that we are familiar with today, however, they were
both portable and lap able, and lead to the development of notebook
style laptops. I have outlined several potential first below and how each
qualifies; many of the off-site links provide good photos of the computers
that will let you see the progression in design.
In this day and age, computer technology develops so rapidly that it
seems there is no end to the possibilities of the miracle
machine. Computers, once monstrous behemoths that could dominate
whole rooms, can now be compacted into Lightweight, portable
notebook systems. The laptop computer was likely unimaginable when
computers were first created more than 60 years ago, but today it
features incredible technology in a very small package.

11
CHAPTER - 2
COMPANY PROFILE

12
Company Profile of Lenovo
Lenovo markets its products directly to consumers, small to medium size
businesses, and large enterprises, as well as through online sales, company-
owned stores (in China only), chain retailers, and major technology distributors
and vendors.
Lenovo Group Ltd. is a Chinese multinational technology company with
headquarters in Beijing, China, and Morrisville, North Carolina, United States. It
designs, develops, manufactures and sells personal computers, tablet
computers, smartphones, workstations, servers, electronic storage devices, IT
management software and smart televisions. In the second quarter of 2013
Lenovo was the world's largest personal computer vendor by unit sales. It
markets the ThinkPad line of notebook computers and the ThinkCentre line of
desktops.
Lenovo has operations in more than 60 countries and sells its products in
around 160 countries. Lenovo's principal facilities are in Beijing, Morrisville and
Singapore, with research centers in those locations, as well as Shanghai,
Shenzhen, Xiamen, and Chengdu in China, and Yamato in Kanagawa
Prefecture, Japan. It operates a joint venture with EMC, LenovoEMC, which
sells network-attached storage solutions. It also has a joint venture with NEC,
Lenovo NEC Holdings, which produces personal computers for the Japanese
market.
Lenovo was founded in Beijing in 1984 as Legend and was incorporated in
Hong Kong in 1988. Lenovo acquired IBM's personal computer business in
2005 and agreed to acquire its Intel-based server business in 2014. Lenovo

13
entered the smartphone market in 2012 and as of 2014 is the largest vendor of
smartphones in Mainland China. In January 2014, Lenovo agreed to acquire the
mobile phone handset maker Motorola Mobility from Google.
Lenovo is listed on the Hong Kong Stock Exchange and is a constituent of the
Hang Seng China-Affiliated Corporations Index, often referred to as "Red
Chips".
In 2009, Lenovo was the fourth largest vendor of personal computers in the
world The Company is the largest seller of PCs in China, with a 28.6% share of
the China market, according to research firm IDC in July, 2009. It reported
annual sales of $14.9 billion for the fiscal year ending 2008/2009.
In India :
Lenovo has gained significant market share in India through bulk orders to
large companies and government agencies. For example, the government of
Tamil Nadu ordered a million laptops from Lenovo in 2012 and single-handedly
made the firm a market leader. Lenovo distributes most of the personal
computers it sells in India through five national distributors such as Ingram
Micro and Redington
Given that most smartphones and tablets are sold to individuals Lenovo is
pursuing a different strategy making use of many small state-centric
distributors. Amar Babu, Lenovo's managing director for India, said, "To reach
out to small towns and the hinterland, we have tied up with 40 regional
distributors. We want our regional distributors to be exclusive to us. We will, in
turn, ensure they have exclusive rights to distribute Lenovo products in their
catchment area." As of 2013, Lenovo had about 6,000 retailers selling
smartphones and tablets in India. In February 2013, Lenovo established a
relationship with Reliance Communications to sell smartphones. The
smartphones carried by Reliance have dual-SIM capability and support both
GSM and CDMA. Babu claims that the relative under-penetration of
smartphones in India represents an opportunity for Lenovo.

14
Lenovo has assembled a team of senior managers familiar with the Indian
market, launched mobile phones at all price points there, and worked on
branding and marketing in order to build market share. As of February 2014,
Lenovo claims that its sales of smartphones in India have been increasing 100%
per quarter while the market is only growing 15-20% over the same period.
Lenovo did marketing tests of its smartphones in November 2012 in Gujarat
and some southern cities, where Lenovo already had a strong presence.
Lenovo's strategy has been create awareness, maintain a broad selection of
phones at all price points, and developing distribution networks. Lenovo
partnered with two national distributors and over 100 local distributors. As of
February 2014, more than 7,000 retail outlets in India sold Lenovo
smartphones. Lenovo has also partnered with HCL in order to setup 250
service centers in 110 cities
In India, where Lenovo is relatively unknown, Lenovo grants distributors
exclusive territories, but allows them to sell computers from other companies.
Lenovo uses its close relationships with distributors to gain market intelligence
and speed up product development.

15
Company Profile of Acer
Acer Inc. is a Taiwanese multinational hardware and electronics corporation
specializing in advanced electronics technology and is headquartered in Xizhi,
New Taipei City, Taiwan. Acer's products include desktop and laptop PCs,
tablet computers, servers, storage devices, displays, LED, LCD and plasma
televisions, smartphones and peripherals. It also provides e-business services
to businesses, governments and consumers. In 2014 Acer was the fourth-
largest personal computer vendor in the world. In the early 2000s, Acer
implemented a new business model, shifting from a manufacturer to a
designer, marketer and distributor of products, while performing production
processes via contract manufacturers. In addition to its core business, Acer
owns the largest franchised computer retail chain in Taipei, Taiwan.
Acer was founded by Stan Shih, his wife Carolyn Yeh, and a group of five others
as Multitech in 1976, headquartered in Hsinchu City, Taiwan.
It began with eleven employees and US$25,000 in capital. Initially, it was
primarily a distributor of electronic parts and a consultant in the use of
microprocessor technologies. It produced the Micro-Professor MPF-I training
kit, then two Apple II clones; the Microprofessor II and III before joining the
emerging IBM PC compatible market, and becoming a significant PC
manufacturer. The company was renamed Acer in 1987.
Acer increased worldwide sales while simultaneously reducing its labor force
by identifying and using marketing strategies that best utilized their existing
distribution channels. By 2005, Acer employed a scant 7,800 people
worldwide. Revenues rose from US$4.9 billion in 2003 to US$11.31 billion in
2006.

16
In the mid-2000s years, consumer notebooks have been almost the sole
growth drivers for the PC industry, and Acer's exceptionally low overheads and
dedication to the channel had made it one of the main beneficiaries of this
trend. Acer grew quickly in Europe in part by embracing the use of more
traditional distribution channels targeting retail consumers when some rivals
were pursuing online sales and business customers. In 2007 Acer bought
Gateway in the USA and Packard Bell in Europe and became the Number 3
world provider of computers and number 2 for notebooks, and achieved
significant improvement in profitability. Acer has been striving to become the
world`s largest PC vendor, in the belief that the goal can help it achieve
economy of scale and garner higher margin. But such a reliance on the high-
volume, low-value PC market made Acer exposed when buying habits changed.
2013 re-organization
On November 2013 Chairman and CEO J.T. Wang, and President Jim Wong,
both resigned due to the company's bad financial performance. Wang had
already been reportedly due to leave Acer at year's end to be replaced by
Wong. Acer founder Stan Shih has taken over as board chairman and interim
president as the company searches for a new candidate to assume the role of
presidency. The position of CEO will be eliminated and its responsibilities
transferred to the chairman or president, according to Acer in order to
improve decision-making efficiency. On December 23 Acer named Jason Chen,
vice president of worldwide sales and marketing at Taiwan Semiconductor
Manufacturing, as its new president and CEO, effective Jan. 1. Entertainment
industry executive and former actress Nancy Hu was named CFO and
Spokesperson as of May 1, 2014.
In India :
Acer's subsidiary in India is Acer India (Pvt) Limited, and was incorporated as a
wholly owned subsidiary of Acer Computer International, Ltd. in 1999. It is a
notable vendor in key segments such as education, desktop computers and low
profile notebooks for education. The headquarters are in Bangalore, India

17
CHAPTER-3
LITERATURE REVIEW

18
Definition of Buyer Behavior:-
Buyer behavior is ―all psychological, Social and physical behaviors of
potential customers as they become aware of evaluate, purchase,
consume and tell others about product & service.
Customer buying Decision Process:-
1. Problem identification:-
Problem recognition occurs when a buyer becomes aware of a difference
between a desired state and an actual condition.
Problem deification called need recognition by some is the point where
a potential buyer determines that they have an unfulfilled need want or
desire.
The recognition may result from internal stimuli (e.g. hunger, tired,
the need for additional help, etc.).
The recognition may result from external stimuli (e.g. an
external requirement, an ad, a suggestion from a someone, the creation of
a new position, the retirement of a key individual).
2. Information Search:-
The consumer tries to collect information regarding various
products/service. Through gathering information, the consumer learns
about completing brands and their features. Information may be
collected form magazines, catalogues, retailers, friends, family
members, business association, commercial, chamber of commerce,

19
telephone directory, trade air etc. Marketers should find out the source
of information and their relative degree of importance to the
consumers.
 Personal Sources:- Family, friends, neighbor, as quittances.
 Commercial Source:- Advertising, sales persons, dealers, packaging,
displays.
 Public sources:- mass media, consumer, rating organizations.
 Experimental sources:- Handling. Examine, using the product.
3. Evaluation of alternative:-
There is no single process used by all consumers by one consumer in all
buying situations. There is several First, the consumer processes, some
basic concepts are:
1. The consumer is trying to satisfy need.
2. The consumer is looking for certain benefits from the product solutions.
The marketer must know which criteria the consumer will use in the
purchase decision.
4 . Purchasing decision:-
From among the purchase of alternatives the consumer makes the
solution. It may be to buy or not to buy. If the decision is to buy, the other
additional decisions are:
• Which types of laptop he must buy?
• From whom do you buy a laptop.
• How the payment to be made. And so on.

20
The marketer up to this stage has tried every means to influence the
purchase behavior, but the choice is properly consumers. In the evaluation
stage the consumer forms preferences among the brands in the choice set.
The consumer may also form an intention to but the most preferred brand.
5. Post Purchase Behavior:-
After purchase the product, the consumer will experience the same level of
product. The Marketer‘s job not end when the product is buying must
monitor post-purchase satisfaction, post-purchase action, post-purchase
use and disposal
Post Purchase Satisfaction:-
The customer, satisfaction is a function of closeness between the buyer,
expectation and the products Perceiver performance. The larger the gap
between expectation and performance, the greater is the consumer
dissatisfaction.
Factors which influence the consumer buying intention for laptops:
FACTORS
Price
Brand Name
Looks and Stylishness
Offers and Discounts
Advertisement & Promotions
After sales service
Processing speed
Battery Life
Availability
Warranty and Guarantees

21
CHAPTER - 4
RESEARCH
METHODOLOGY

22
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research
problem. It deals with the objective of a research study, the method of
defining the research problem, the type of hypothesis formulated, the
type of data collected, method used for data collecting and analyzing the
data etc. The methodology includes collection of primary and secondary
data.
OBJECTIVES OF THE STUDY
 To identify various factor which affect customer buying preference
 To determine those factor which influence the buying preference
of customer towards Laptop the most.
 To compare the buying preference level of the customer toward
Lenovo and Acer Laptops
RESEARCH PLAN
A research design is a basis of framework, which provides guidelines for
the rest of research process. It is the map of blueprint according to
which, the research is to be conducted. The research design specifies
the method of study. Research design is prepared after formulating the
research problem.
RESEARCH PLAN
Research Design: Descriptive
Research Method Used Survey
Research Technique Used Questionnaire
Data Collection (location) Users
Sampling Size 50

23
INFERENCE
The research design used in report is Exploratory and the research
method used is survey method. The technique used for survey is the
Questionnaire Technique.
DATA COLLECTION
Data are the raw materials in which marketing research works. The task
of data collection begins after research problem has been defined and
research design chalked out. Data collected are classified into primary
data and secondary data
PRIMARY DATA
Questionnaires were used for collecting primary data.
DESCRIPTIVE RESEARCH
The study follows descriptive research method. Descriptive studies aims
at portraying accurately the characteristics of a particular group or
situation. Descriptive research is concerned with describing the
characteristics of a particular individual or a group. Here the researcher
attempts to present the existing facts by collecting data.

24
CHAPTER - 5
DATA TABULATION,
ANALYSIS AND
RESULTS

25
Data Tabulation, Analysis and Results
1. There were 50 Respondent out of which 32 have shown interest
towards Lenovo laptops whereas 18 have shown interest towards
Acer Laptops.
2. Ratio of the factors influencing purchase intensions for Acer laptops.
64%
36%
Respondent Ratio
Lenovo Acer
12%
3%
11%
10%
12%
9%
11%
10%
12%
10%
Acer Laptops
Price
Brand
Looks
Offers
Ad
AfterSales
Speed
Battery
Availability

26
3. Ratio of the factors influencing purchase intensions for Lenovo
laptops.
4. Comparison of the different factors influencing purchase intensions
for Lenovo and Acer Laptops.
12%
12%
10%
9%
11%
8%
10%
9%
11%
8%
Lenevo Laptops
Price
Brand
Looks
Offers
Ad
AfterSales
Speed
Battery
Availability
0
1
2
3
4
5
6
7
Comparison of Factors
Acer
Lenovo

27
CHAPTER – 6
FINDINGS OF THE STUDY

28
 This study is based on 10 Factors of Laptop which are considered
by a customer while purchasing.
 64% of respondent have shown their interest towards purchasing
Lenovo Laptops.
 36% of respondent have shown their interest towards purchasing
Acer Laptops.
 Brand Name is the most influencing factor for customers while
purchasing laptops.
 Price, looks and availably are the other factors which influence
customers more than other factors.
 Comparatively Brand Name is the factor which influences the
customers towards purchasing Lenovo Laptops whereas
Availability is the Factor which influences the customers towards
purchasing Acer Laptops.

29
CHAPTER - 7
RECOMMENDATION

30
RECOMMANDATION
 Lenovo should work on its Price Mix.
 Lenovo should work on increasing the Performance of the
Laptops.
 Lenovo should provide better availability..
 Lenovo should concentrate on providing after sales services.
 Acer should work on to improve its Brand name.
 Acer should provide more offers and discounts to the customers.
 Acer should improve its advertisement and promotion activities.
 Acer should work on the speed of its laptops.

31
CHAPTER-8
LIMITATION

32
Limitation
Samples are collected from Bhilai city only considering that are the
representatives of entire market that may not be universally true. The
mental status of the respondent has not been considered that might
have influenced the accuracy of the data.
The study is having some limitation as follow:
 The sample size is 50 which is very small.
 The time given for the survey is too less for the study.
 The study is done in Bhilai region because survey in all the area is
very time consuming, which is not possible during academic
session.
 Time complexity is yet another limitation.
 Mental status of the users might affect the survey.

33
CHAPTER-9
CONCLUSIONS

34
CONCLUSION
In India Bothe Lenovo and Acer laptops have a very bright future. There
are many different models with both these companies. This research
state that Price, processing speed, battery-life, performance and other
features are important factors, which affect the purchase intension of
customers. So both the company should focus on these dimensions as
well as on other dimensions which influence to purchase intension of
customers.
Both the Companies are performing equally on some factors like
Advertisement and after sales service, but still in some areas there is a
significant difference in the performance of both the companies.

35
REFERENCES
BOOKS:
1. Marketing Research by G C Beri- third edition – © 2000, Tata
McGraw-Hill Publishing Company Ltd.
2. Marketing Research by Rajendra Nargundkar- 2nd edition 2006,
Tata McGraw-Hill Publishing Company Ltd
3. Kotler Philip, (2003) “Marketing Management” 11thEd.
4. Batra k Satish, shahKazmi “consumer behavior” 1st ed. 2004.
INTERNET:
www.lenovo.com/in
www.acer.co.in/ac/en/IN/content/group/laptops
http://en.wikipedia.org/wiki/Acer_Inc.
http://en.wikipedia.org/wiki/Lenovo

36
QUESTIONNAIRE
I am a student of Shri Shankaracharya technical campus, Bhilai. As a part of my
curriculum, I am conducting “A Study on Customer Buying Preference towards
Laptops A Comparative Analysis of Lenovo and Acer Laptops”
The data will be used exclusively for academic purpose only, without disclosing
your identity. I would be grateful to you for your candid responses. Please
mark a tick (√) in your preferred box.
PART-A
I Prefer Lenovo Acer
Strongly
disagree
Neu
tral
Strongly
agree
1 Price is an important factor while purchasing Laptop. 1 2 3 4 5 6 7
2 I consider Brand Name while purchasing a Laptop 1 2 3 4 5 6 7
3 I consider Looks while purchasing a Laptop. 1 2 3 4 5 6 7
4 I Prefer discounts while purchasing a laptop. 1 2 3 4 5 6 7
5 I consider Advertisement while purchasing a Laptop. 1 2 3 4 5 6 7
6 After sales service is an important factor. 1 2 3 4 5 6 7
7 I prefer processing speed while purchasing a Laptop 1 2 3 4 5 6 7
8 I consider Battery Life while purchasing a Laptop 1 2 3 4 5 6 7
9 Availability is an important factor while purchasing. 1 2 3 4 5 6 7
10 Warranty is an important factor while purchasing. 1 2 3 4 5 6 7
PART-B
Personal Details
1 Name
2 Age o < 20 o 20 - 40 o 41 - 60 o > 60
3 Gender o Male o Female
4
Annual
Income
o 0 - 1.49 o 1.5 - 2.99 o 3 - 4.50 o > 4.5
5 Occupation o Student
o Business
Person
o Service
Person
o Profession-
al
o House
hold
o Other
(Specify)
-----------

Customer Buying Preference towards Laptops A Comparative Analysis of Lenovo and Acer Laptops

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