A study of Marketing Mix Strategy of Xiaomi Mobile

Phone in Palus that Impacts on Making Decision

towards Customer Satisfaction
A
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CHAPTER-1

1. Introduction

This research paper examines marketing strategy of Xiaomi mobile phone in Palus
that impacts on making decision towards customer satisfaction. This Chapter includes
research background, statement of problem, objective of the study, research questions,
hypothesis of the study, and conceptual framework, variables of the study and definition
of terms.

The core of this study is Marketing Strategy of Xiaomi Mobile Phone in Palus that
affects Customer Making Decision towards satisfaction. Mobile phone industries have
been seeing a rapid growth, has made enormous jumps since its inception, and
particularly in these 5 years that have seen mobile phones getting smarter and more
stylish than its early days when the concept of having a smartphone was totally
misunderstand by the masses.

Xiaomi is a software company that is founded by 8 co-founders in 2010. Xiaomi’s

first product is MIUI, which has over 100 million user-bases to the date of this article
written (En.miui.com, 2015). Xiaomi’s priority is to distribute MIUI globally and their
involvement in hardware business in 2011 mainly is to help boost MIUI user-base.

In order to have more consumers to own their hardware, Xiaomi decided to sell
their products at near-to-cost (Bhagat, H. 2014). To Xiaomi, setting up a traditional brick
and mortar store might increase the cost of the product and in view of this Xiaomi
concentrated their businesses online. Due to Xiaomi’s product will not be available on the
website at all times; Xiaomi needed a way to communicate with its consumers. So the
best way for them to communicate with consumers is through the social media. Xiaomi’s
strategy of concentrating their business through the social media allows their brand to be
known in no time (Shih, Lin, & Luarn, 2014; Stone, 2014).

Chinese electronics firm Xiaomi’s smartphones have been on sale unofficially in

Myanmar for over a year, but the company is now gearing up to officially start selling its
products as user demand picks up. Local company Strong Source Co Ltd signed an
agreement with Xiaomi to retail the phone at Myanmar authorized distributors. Xiaomi
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was the world’s fifth-largest smartphone maker in 2015 Xiaomi with 70.8 million units
sold, accounting for about five percent of the global smartphone market according to
(Roettgers, J. (2015). However, some users griped about the smartphone’s inferior
processor and low internet speed (Hitesh Bhasin, (January 25, 2019)

“The camera quality is great and resolution as well. However, there is no original
headset and internet speed is low. I bought the phone last month and now the processor
does not work well. I think that will be a barrier to attract Myanmar users,” a Xiaomi Mi
4i user, Ma Yamin, said (MOH MOH KYI, (16 JUN 2016).

The brand will be available in six models in Myanmar including the Mi 5, Red Mi
3, Red Mi Note 3 Pro, Mi 4i, Note 2 and Red Mi 2, which will be distributed in the
market with a one-year guarantee, according to Assistant General Manager of Strong
Source Ko Thet Zin. Besides that, Mi service center, Mi Corner, Mi Home will be
provide in Palus, Mandalay, and Naypyitaw for Xiaomi official products (MI HOME
MYANMAR, 2018).

Xiaomi holds a leading11percentage of penetration in the Smartphone marketing

China. The company grossed more than $5 billion in revenues during the first half of
2014.With only 2,600 employees (as of June 2013), it has a market capitalization of over
$10 billion. Its top executives have technological backgrounds and experiences from
many other high-tech multinational companies in the west.

For a short time, Xiaomi, a china mobile company is rapidly market in the
Myanmar Technology Market. Xiaomi established by CEO Lei Jun with his seven
partners in 2010. In August 2011, the smart phone was firstly introduce into the market,
and then in 2014, it became the top brand in China smartphone market. It becomes as
world biggest smartphone company, currency.

Today, companies attempt to live on with the help of customer satisfaction and
more sale and profit through market researches and identification of customers’ needs in
the current world of competition. Therefore, one of the ways of achieving the mentioned
objectives is to analyze the concept of marketing mix in any kind of business (Fakhimi
Azar, Akbari Vanehabad, & Rasouli, 2011). Any sort of marketing strategy has impact on
customer satisfaction and marketing mix elements are a set of controllable marketing
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variables in the hands of managers and decision-makers of the company. (Khodadad

Hosseini & Rezvani, 2009).

If the relationships between marketing strategy such as product, price, place,

promotion and customer satisfaction especially Xiaomi mobile in Palus Myanmar are
determined, the decision-makers of the company will easily decide upon how to employ
marketing mix elements to impacts on the highest of making decision (Purna Satit, Rezky
and Huam, 2012).

1.2 Objective of the Study

The general objective of this study is to explore Marketing Mix Strategy of

Xiaomi Mobile Phone in Palus that effects on making decision towards customer
satisfaction. The specific objectives are as follows..

1. To analyze which marketing strategies are impact on customer

making decision towards Xiaomi mobile phone in Palus
2. To study how the customers are satisfaction level of Xiaomi
mobile phone in Palus r.

3. To determine how relationship between marketing strategy and

customer making decision related to Xiaomi mobile phone in Palus

1.3 Statement of Problem

Myanmar is in a transforming period of democracy and changing of its IT and

network system of 2G,3G to 4G would up a great potential for mobile phone market; so it
is the most important to apply marketing strategy and making decision towards customer
satisfaction Xiaomi mobile phone. Therefore, this study aims to research the marketing
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strategy that impact on Xiaomi mobile phone towards customer making decision in Palus

This study assumed that marketing strategy of Xiaomi mobile phone will help to
be refocus on the variables those impacts on customer making decision and could get the
advantage in this various competitive market in So, researcher collect the respondents
that is belonging to Xiaomi mobile phone Company in Palus Myanmar before take
researching to the customers of Myanmar people who use Xiaomi mobile phone and their
making decision.

Peter Doyle (Doyle, 2000) claims that the marketing mix approach leads to
unprofitable decisions because it not ground in financial objectives such as increasing
shareholder value. According to Doyle it has never been clear what criteria to use in
determining an optimum marketing mix.

Objectives such as providing solutions for customers at low cost have not
generated adequate profit margins. Against Kotler's four P's, some claim that they are too
strongly oriented towards consumer markets and do not offer an appropriate model for
industrial product marketing (Kotler, Philip, Keller, Lane, 2005).

That is why, the statement of questions in this research are as below;

1. Is there relationship between marketing mix strategy (product,

price, place, promotion) that affect making decision towards customer satisfaction
of Xiaomi mobile phone in Palus Myanmar?

2. How impacts the marketing mix strategy of Xiaomi mobile phone

towards the customer satisfaction level?

1.4 Scope of the Study

As mention above of the objective of the study, researcher focus on the

marketing strategy such as product, price, place and promotion that impacts on
customer satisfaction of Myanmar people who use Xiaomi mobile phone due to the
limitation this study. The target population of this research is the customers in Palus
who use Xiaomi mobile phone.
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Figure: 1 Conceptual Framework

Independent Variables Dependent Variable

Marketing
Strategies H1
Produc
t
H2 Making Decision towards
Price
customer Satisfaction
H3
Place

Promotion
H4

1.5 Hypothesis of the Study

According to conceptual framework, marketing mix strategy that impact on

making decision on Xiaomi mobile phone variables towards customer satisfaction
through studying the relationships of mentioned structures, background of the study, and
the literature. The conceptual framework provided in Figure 1. This framework includes
four variables of product quality, price, promotion and customer satisfaction.

H1: There is relationship between marketing mix strategy of product and

making decision towards customer satisfaction of Xiaomi mobile phone in Palus

H2: There is relationship between marketing mix strategy of price and

making decision towards customer satisfaction of Xiaomi mobile phone in Palus

H3: There is relationship between marketing mix strategy of place and

making decision towards customer satisfaction of Xiaomi mobile phone in Palus
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H4: There is relationship between marketing mix strategy of promotion and

making decision towards customer satisfaction of Xiaomi mobile phone in Palus

1.6 Variables of the Study

In this study marketing mix strategy of product, price, place and promotion are
independent variable. On the other hand, making decision towards customer satisfaction
of Xiaomi mobile phone in Palus Myanmar is dependent variable.

1.7 Definition of terms

Marketing strategy means a marketing strategy that is well - articulated will

enable one to focus on marketing activities to achieve the target market goal. According
to Philip Kotler, Marketing Strategy is the marketing logic by which the business unit
expects to achieve its marketing objectives.

Product refers what a production or even an individual offers. In marketing mix,

product is define as what is offered to market for noticing, buying, or using which may
meet a need. Product include a physical object, service, place, organization, or even an
idea (Fakhimi Azar et al., 2011). In the current study, the quality of product has been
consider as the most important factor in the mobile phone industry.

Price defines that Xiaomi mobile phone is low price and good quality for
customers. Price is the value that put to a product or service and is the result of a complex
set of calculations, research and understanding and risk taking ability. A pricing strategy
takes into account segments, ability to pay, market conditions, competitor actions, trade
margins and input costs, amongst others.

Place strategy plays a fundamental role in the marketing mix of a product or

service. Place strategy outlines how and where a company will place its products and
services in an attempt to gain market share and consumer purchases. This component of
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the 4Ps is sometimes refer to as the distribution strategy and may include stores, both
physical and online, and any other means by which the company can reach customers.

Promotion in marketing mix refers to establishing relationships with customers to

inform them or affect their attitude or satisfaction. Promotion used to inform people of
products and encourage the buyers in target market to buy particular brands. Promotion
stimulates attention and sometimes arouses interest.

Decision making defines that the process of identifying and selecting a course of
action to buy a specific product." According to Trewartha and Newport, "Decision
making involves the selection of a course of action from among two or more possible
alternatives in order to arrive at a solution for a given problem.

Customer satisfaction, a business term refers a measure of how products and

services supplied by a company meet or surpass customer expectation. It is as a key
performance indicator within business and is part of the four perspectives of a Balanced
Scorecard.
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CHAPTER-2
Literature Review
2. Literature Review

Xiaomi is a privately owned Chinese electronics design and manufacturing company.

Founded by Lei Jun in 2010, the company has its headquarters in Beijing and comes about
the fourth on the list of the top Smartphone makers in the world. Its consumer electronics and
computer hardware products are some the fastest moving in China. The rate at which Xiaomi
is growing is alarming to Samsung and Apple as the company has almost managed to
position itself as the top Smartphone spot in China. Hitesh Bhasin, (January 25, 2019)

In this research in literature review, researcher will describe the theoretical of

marketing mix, marketing strategy of Xiaomi mobile phone, marketing mix of Xiaomi
mobile phone, good quality product of Xiaomi mobile and low price, pricing strategy of
Xiaomi mobile, Place or distribution strategy of Xiaomi mobile, promotion strategy of
Xiaomi mobile, making decision of customers, customer satisfaction and measuring customer
satisfaction of Xiaomi mobile phone and related research theory.

2.1 Theoretical of the Study

2.1.1 Marketing Mix

The term "marketing mix" became popularized after Neil H. Borden published his
1964 article, The Concept of the Marketing Mix. Borden began using the term in his teaching
in the late 1940's after James Culliton had described the marketing manager as a "mixer of
ingredients". The ingredients in Borden's marketing mix included product planning, pricing,
branding, distribution channels, personal selling, advertising, promotions, packaging, display,
servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later
grouped these ingredients into the four categories that today are known as the 4 P's of
marketing.

The marketing mix is a model of creating and implementing marketing strategies. It

stresses the blending of various factors in such a way that both organizational and consumer
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objectives are attained. The elements are the marketing tactics, also known as the 'four Ps',
the marketing mix elements are price, place, product, and promotion. The model was
developed by Neil Borden who first started using the phrase in 1949. When blending the mix
strategy, marketers must consider their target market. They must understand the wants and
needs of the market customer then use these mix elements in constructing and formulating
appropriate marketing strategies and plans that will satisfy these wants.

Marketing refers to searching for the most appropriate market and the sections that
the organization can be more effective and useful and fulfill the needs of people. In other
words, Marketing and Branding Research 2(2015) marketing is the conscious attempt to
allocate resources and establish allocation in the market (Rousta et al., 2004).

The concept of marketing mix was first proposed by Neil Borden in 1949. However,
the most common variables in marketing mix (product, price, distribution and promotion)
were introduced by Mccarthy and were known as 4Ps (Vazir Zanjani, Motameni, & Mousavi,
2010). Until now, there has been no considerable change in the concept of marketing mix and
in many researches, 4P is still the coordination concept that other aspects of marketing are
organized around it. The most common definition of marketing mix in target market is to
offer the proper product at a reasonable price in the proper place and time. To put it another
way, marketing decision variables in different models of marketing mix provide a framework
through which the business develop plans for its marketing activities (Khodadad Hosseini &
Rezvani, 2009).

Marketing mix indicates the fundamental activities of marketing managers. After

selecting a target market, the marketing managers must develop a systematic plan for selling
to customers and establishing long-term and loyal relationships. Marketing plan includes
decisions on product, price, promotion and distribution. These are the most important parts
that marketing managers must allocate company resources to them to achieve the objectives
of sale and profitability (Garavand, Nourayi, & Saee Arasi, 2010).
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2.2 Marketing Strategies of Xiaomi mobile phone

A “Marketing Strategy” is a business overall game plan for reaching people and
turning them into customers of the product or services that the business provides. The
“Marketing Strategy” of the company contains the company’s: Value proposition, Key
marketing message, Information on the target customers, The Marketing Strategy informs the
market plan, which is a document that lays out the type and timing of marketing activities.

Xiaomi Inc. is a Beijing-based Internet company which was founded on 6 April, 2010
by Lei Jun. The company began its activities with the development of Android based
firmware MIUI. In April 2014, they hired former Google employee Hugo Barra as Xiaomi
VP to expand their business to international markets. And, then launched itself in INDIA in
July, 2014 with their then flagship Mi3 (via Flipkart). Xiaomi has 8,100 employees and it is
currently operating in China, HongKong Taiwan, Singapore, Malaysia, Indonesia,
Philippines, and India and

The mission statement and vision of Xiaomi mobile phone is 1. Making Quality
Technology accessible to everyone. 2. Engaging Users or Fans helping them develop their
new Products. 3. To lay more focus on After-Sales Service. 4. To open 10,000+ Offline
Stores by early 2017.

VISION: To make Xiaomi mobile phone Myanmar Company. 1. Creating an Internet

Ecosystem through their innovation in technology. 2. To achieve the top spots in Myanmar
Smartphone Industry.

Xiaomi does not own any physical stores and sell exclusively from its online
store/virtual store. It also relies on social networking for marketing. 2. Incorporate
customer’s feedback: Xiaomi listen closely to customer feedback, having them test out and
incorporate those features in upcoming phones. 3. Tight control over stock: Xiaomi is able to
place cheaper batch orders as demand dictates. Xiaomi Limited availability online flash sales
ensure that supply never outstrips demand and helps create promote its products. So, Xiaomi
mobile is always update and good quality.
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Another strategy of Xiaomi mobile phone is going directly to retail to cut out the
margins and, in turn, pass on the benefits to the consumers. Xiaomi will sharpen its focus on
its own Mi online stores to sell its wares, a strategy which has paid off rich dividends in its
home market.

2.3 Good products quality of Xiaomi and low prices

Presenting itself as the good quality phone with the low prices is the good strategy
that drives Xiaomi to the top spot in the Smartphone industry. It has more special features
than the standard Android phones and has options for customization. The biggest key that
drives Xiaomi on becoming successful is the software rather than the hardware.

Product refers to what a production or service unit or even an individual offers. In

marketing mix, product is defined as what is offered to market for noticing, buying, or using
which may meet a need. Product may include a physical object, service, place, organization,
or even an idea (Fakhimi Azar et al., 2011).
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Figure: 2 Xiaomi mobile phone products

In the current study, marketing mix strategy of Xiaomi product has been considered
as the most important factor in the mobile phone industry. The quality of product plays an
important role in customer making decision preferences of shops (Prentice Hall, and D. J.
Reibstein., (1985). The consumers often judge the product quality or brand by the perceived
quality (Sheau-Fen, Sun-May, & Yu-Ghee, 2012). Perceived brand quality can be identified
as the consumer’s general subjective judgment on the advantage or superiority of a product
which is derived from the evaluation process of its different features (Beristain & Zorrilla,
2011). The chance of success for brands of higher perceived quality is more than brands of
lower perceived quality (Sheng, et al., 2012).

Chinese brands were seen as cheap and low quality but Xiaomi changes this thinking
by providing high-quality products at affordable prices. It was important to do that as Indian
buyers love to save their money. Soon, this Chinese brand established an image of value for
money products.
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2.4 Pricing strategy of Xiaomi mobile

Xiaomi sells its phones at a price that just covers the cost of the device rather than its
cost of production. Xiaomi is focusing more on selling its phones at a low price today, but
gaining more in the future from selling contents such as applications, service and accessories.

There is a major difference between price and other marketing mix factors; price is an
income-making factor while other marketing mix factors are costly. Price as a marketing tool
for Xiaomi mobile is a key factor in selling product to customers. Following this, pricing can
be effectively used to indicate the position of a product in proportion to other competitors
and this can provide reliable information regarding the different sections of the market.
Moreover, price is a quality index and products must be analyzed in terms of the advantages
they offer (Khazaei Pool & Baloee Jam Khaneh, 2011).

In consumable markets, price is an external indication of product quality and high-

price brands are considered as high-quality brands (Kim & Hyun, 2011). On the other hand,
since the quality of a product is a norm and can be easily proved, higher price may have
negative effect on making decision to buy products and customer satisfaction; because it may
lack the indication of higher quality and it just highlights the more money that must be paid
(Cretu & Brodie, 2007).

2.5 Place or distribution of Xiaomi mobile

There are many countries outside China where the Smartphone market is dominated
by Apple and Samsung. This is the main obstacle for Xiaomi in expanding its brand
internationally. Xiaomi already has a strong base in mainland China, Malaysia, and
Singapore. Currently, Xiaomi is expanding its market to Myanmar, India and the Philippines.
Xiaomi mostly sells its products online instead of opening physical stores.

Distribution refers to activities that are done to deliver a product or service to

customers. Distribution or place are the simplest terms in 4P; however, they play a very
important role in it.
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In this study, distribution refers to all the shops and authorized resellers of the studied
Xiaomi. In consumer marketing, research shows that channel performance contributes to
building customer making decision to buy (Prentice Hall, and Reibstein, (2014). Good store-
image not only attracts more attention, interests, and contacts from potential consumers, but
also it increases consumer satisfaction and positive word-to-mouth. Moreover, distributing
through good-image stores signals that a brand has good quality.

Moreover, distribution intensity has a positive effect on aspects of Xiaomi mobile

market as high distribution intensity expands the probability of buying decistion wherever
and whenever consumers want. Specifically, since the increase in distribution intensity
reduces consumer efforts for finding and acquiring Xiaomi, consumers are likely to perceive
it more valuable which in turn increases consumer satisfaction and making decision (Kim &
Hyun, 2011).

The store-image is reflected in quality and diversity of products, convenience, price,

physical environment of shops, and the quality of services. These signals influence the
costumers’ making decision towards satisfaction as a whole and general assessment (Huang
& Sarigöllü, 2012; Kim & Hyun, 2011). The store image can be defined as a particular type
of feedback from those in a given market regarding the credibility of the identity claims that
the organization makes (Kim & Hyun, 2011).

2.6 Promotion strategy of Xiaomi mobile

Advertisement or promotion in marketing mix refers to establishing relationships with

customers to inform them or affect their attitude or behavior. Promotion is used to inform
people of products and encourage the buyers in target market to buy particular brands.

Promotion stimulates attention and sometimes arouses interest. Promotion techniques

such as prize draw, price stimuli, free samples, etc. have great impact on promoting the
customers to shopping through encouraging the customer to test a brand. Promotion is based
on communication and includes all the communicative tools that pass on a particular message
(Khazaei Pool & Baloee Jam Khaneh, 2011).
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Promoting design tools to buy faster is confined to a period of time (Valette-Florence,

Guizani, & Merunka, 2011). Promotions lead to developing knowledge of making decision to
buy for all the promoted products and brands (Huang & Sarigöllü, 2012; Buil et al., 2013).
However, promotions of repeated sales like reduction in price in a short time, discount,
repay, and coupon may thwart the attempts of brand because it may be a low-quality signal or
an outdated kind. Repeated price promotions may confuse the costumers since they may not
understand that why high-quality products are promoted and offered at special price.
According to self-perception theory, those customers who choose a product based on price
promotions (an external reason) rather than positive attitude towards the product (an internal
reason) will change their choice and choose other products whenever the external reason is
eliminated (Baldauf et al., 2009; Buil, Chernatony, & Martínez, 2013).

2.7 Theoretical Model of Marketing Mix

The marketing mix framework was particularly useful in the early days of the
marketing concept when physical products represented a larger portion of the economy.
Today, with marketing more integrated into organizations and with a wider variety of
products and markets, some authors have attempted to extend its usefulness by proposing a
fifth P, such as packaging, people, process, etc.

Today however, the marketing mix most commonly remains based on the 4 P's.
Despite its limitations and perhaps because of its simplicity, the use of this framework
remains strong and many marketing textbooks have been organized around it.

The goal is to make decisions that center the four P's on the customers in the target
market in order to create perceived value and generate a positive response. Theoretical model
are as below as independent variable and dependent variable.
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Figure: 2.1 Model of Marketing Mix and decision making towards customer
satisfaction

Independent Variable dependent variable

Product

Price

Place

Promotion

2.7 Independent Variables

The marketing mix in relocation benchmark for summers for retailing management
strategy, either price, product, place/distribution and promotion, can be performed using
multiple criteria decision model. Making Decision Model attempt to identify all alternatives
and to quantify characteristics of these alternatives—attributes—in order to rank them in
some consistent manner. Making decision can be divided into those that allow tradeoffs
between attribute levels (“compensatory decision rules”) and those that do not, and those that
explicitly incorporate risk, or uncertainty, and those that do not. Therefore, to make decision,
customers are impacted following marketing mix strategies;

2.7.1 Decisions making and customer satisfaction can be impacted by product

The term "product" refers to tangible, physical products as well as services. Although
this typically refers to a physical product, it has been expanded to include services offered by
a service organization. The specification of the product is one of the variables that a marketer
has at his/her control. For example, the product can include certain colors, certain scents, and
certain features. Lastly, in the broadest sense when a consumer purchases a product it also
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includes the post-sales relationship with the company. The post-sales relationship can include
customer service and any warranty or customer satisfaction.

2.7.2 Decisions making and customer satisfaction can be impacted by price

The price is the amount paid for a product. In some cases, especially in business-to-
business marketing this can also include the total cost of ownership. Total cost of ownership
may include costs such as installation and other products required to deliver a complete
functional solution. Xiaomi mobile phone is low price and good quality product. So, as an
under development country, Myanmar people are suitable price to use it. Quality is more
valuable than price. In that reason, most people from Myanmar are making decision to buy
Xiaomi and get satisfaction on it.

2.7.3 Decisions making and customer satisfaction can be impacted by Place

(Distribution)

Place represents the location where a product can be purchased. It is often referred to
as the distribution channel. It can include any physical store as well as virtual stores on the
Internet. Distribution is about getting the products to the customer. Customers are easy to
check to buy the products, price, quality and brand from the distribution channel without
going anywhere to make decision towards customer satisfaction.

2.7.4 Decisions making and customer satisfaction can be impacted by Promotion

In the context of the marketing mix, promotion represents the various aspects of
marketing communication, that is, the communication of information about the product with
the goal of generating a positive customer response. Promotion represents all of the
communications that a marketer may insert into the marketplace. This can include TV, radio,
and print advertising, as well as coupons, direct mail, billboards, and online advertising. One
of the less well-defined areas in promotion is the role of a human sales force. On the other
hand, consumers may rather purchase the product only when sold through the support of a
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known salesperson. In this case, the service, perceived or real can be defined as a feature of
the product. Therefore, customers can make decision whether to buy that products or not and
decide their satisfactions.

2.8 Dependent Variable

2.8.1 Customer Satisfaction

Customer satisfaction is a perception (Nam, Ekinci, & Whyatt, (2011) as dependent

variable in this paper. It is also a question of degree. Providing quality products and services
is all about meeting customer requirements. Customer satisfaction, a business term, is a
measure of how products and services supplied by a company meet or surpass customer
expectation. It is seen as a key performance indicator within business and is part of the four
perspectives of a Balanced Scorecard. In this research customer satisfaction is independent
variable because their expectation and quality of products, low price, easy to checking place
and distribution channel are fulfilling of their needs and wants.

In a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy. The four key steps for successful marketing are identified as understanding
the customer, making value for customer, communicating the value to target market, and
making decision for the customer to buy (Torres, & Tribó, (2011).

2.9 Measuring Customer Satisfaction

Organizations are increasingly interested in retaining existing customers while

targeting non-customers; measuring customer satisfaction provides an indication of how
successful the organization is at providing products and/or services to the marketplace.

Customer satisfaction is an ambiguous and abstract concept and the actual

manifestation of the state of satisfaction will vary from person to person and product/service
 19

to product/service. The state of satisfaction depends on a number of both psychological and

physical variables which correlate with satisfaction behaviors such as return and recommend
rate. The level of satisfaction can also vary depending on other options the customer may
have and other products against which the customer can compare the organization's products.

Because satisfaction is basically a psychological state, care should be taken in the

effort of quantitative measurement, although a large quantity of research in this area has
recently been developed.

Work done by Berry, Brodeur between 1990 and 1998 defined ten 'Quality Values'
which influence satisfaction behavior, further expanded by Berry in 2002 and known as the
ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value,
Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front
line Service Behaviors, Commitment to the Customer and Innovation. These factors are
emphasized for continuous improvement and organizational change measurement and are
most often utilized to develop the architecture for satisfaction measurement as an integrated
model.

Stated by Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the
basis for the measurement of customer satisfaction with a service by using the gap between
the customer's expectation of performance and their perceived experience of performance.
This provides the measurer with a satisfaction "gap" which is objective and quantitative in
nature.

Revealed by Cronin and Taylor propose the "confirmation/disconfirmation" theory of

combining the "gap" described by Parasuraman, Zeithaml and Berry as two different
measures (perception and expectation of performance) into a single measurement of
performance according to expectation. According to Garbrand, customer satisfaction equals
perception of performance divided by expectation of performance.

The usual measures of customer satisfaction involve a survey with a set of statements
using a Likert Technique or scale. In this paper, researcher use a 4 points Likert scale. The
customer is asked to evaluate each statement and in term of their perception to making
decision to buy Xiaomi mobile phone of customer satisfaction being measured.
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CHAPTER-3

Research Methodology

This chapter is to discuss the methodological approach undertaken to discover

marketing mix strategy of Xiaomi mobile phone in Palus that affects making decision
towards customer satisfaction. The research methods must be appropriate to the objectives of
the study. This research carried out via exploratory research, which allows familiarizing with
the problem or concept to be study, followed by descriptive-causal research to determine
which variable might be causing a certain behavior. The final stage will be a conclusive
research to provide information that is useful in reaching conclusions or decision-making and
customer satisfaction of Xiaomi mobile phone with a valid research instrument.

This chapter will present types of research methodology, population and sample,
demographic profile of sample, research instrument and data analysis will be discuss.

3.1 Types of research methodology

3.1.1 Qualitative Research

This type of research methods involves describing in details specific situation using
research tools like interviews, surveys, and Observations. Qualitative Research is primarily
exploratory research. It used to gain an understanding of underlying reasons, opinions, and
motivations. It provides insights into the problem or helps to develop ideas or hypotheses for
potential quantitative research (Creswell, 2003).

Qualitative Research also used to uncover trends in thought and opinions, and dive
deeper into the problem. Qualitative data collection methods vary using unstructured or semi-
structured techniques. Some common methods include focus groups (group discussions),
individual interviews, and participation/observations. The sample size is typically small, and
respondents are select to fulfill a given quota (Royall, 2000).
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Quantitative Research used to quantify the problem by way of generating numerical

data or data that can be transform into useable statistics. It used to quantify attitudes,
opinions, behaviors, and other defined variables–and generalize results from a larger sample
population (Berg, & Lune, 2004).

Quantitative Research uses measurable data to formulate facts and uncover patterns in
research. Quantitative data collection methods are much more structure than data collection
methods. Quantitative data collection methods include various forms of surveys – online
surveys, paper surveys, mobile surveys and kiosk surveys, face-to-face interviews, telephone
interviews, longitudinal studies, website interceptors, online polls, and systematic
observations (Richard, 2000).

Quantitative methodology is used in this study for many reasons. This type of
research methods requires quantifiable data involving numerical and statistical explanations.
Quantitative Research is used to quantify the problem by way of generating numerical data or
data that can be transformed into useable statistics. It is used to quantify attitudes, opinions,
behaviors, and other defined variables–and generalize results from a larger sample
population.

Quantitative Research uses measurable data to formulate facts and uncover patterns in
research. Quantitative data collection methods are much more structured than Qualitative
data collection methods. Quantitative data collection methods include various forms of
surveys – online surveys, paper surveys, mobile surveys and kiosk surveys, face-to-face
interviews, telephone interviews, longitudinal studies, website interceptors, online polls, and
systematic observations (Creswell, (2003).

3.2 Population and Sample

A sample is the term that refers to the group surveyed anytime the survey is not
administered to all members of the population. The process of selecting a smaller group of
the people that have the same characteristics and preferences as the total group from which it
is drawn called sampling (Richard Valliant, Alan Dorfman, and Richard Royall, 2000).
 22

A famous quote: Cervante stated “By a small sample we may judge the whole piece.”
In marketing research, the goal is to assess target segments efficiently and effectively by
designing and executing representative sample plans. In most cases, the study objects of
interest consist of a large universal. The reason, which select the sampling technique over a
census, is due to cost saving, time economy, more in-depth information, less total error,
greater practicality and greater security (Geneva, 2016).

3.2.1 Simple Random sampling

Researcher choose simple random sampling in the research for conceptually; simple
random sampling is the simplest of the probability sampling techniques (Richard Royall,
2000). It requires a complete sampling frame, which may not be available or feasible to
construct for large populations. Even if a complete frame is available, more efficient
approaches may be possible if other useful information is available about the units in the
population.

In statistics, a simple random sample is a group of subjects (a sample) chosen from a

larger group (a population). Each subject from the population is chosen randomly and
entirely by chance, such that each subject has the same probability of being chosen at any
stage during the sampling process. This process and technique is known as Simple Random
Sampling, and should not be confused with Random Sampling.

In small populations such sampling is typically done "without replacement", i.e., one
deliberately avoids choosing any member of the population more than once. An unbiased
random selection of subjects is important so that in the long run, the sample represents the
population.

However, this does not guarantee that a particular sample is a perfect representation
of the population. Simple random sampling in this study merely allows us to draw externally
valid conclusions about the entire population based on the sample. Although simple
random
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sampling can be conducted with replacement instead, this is less common and would normally
be described more fully as simple random sampling with replacement.

Advantages using simple random sampling in this study are that it is free of
classification error, and it requires minimum advance knowledge of the population. For it
best suits situations where not much information is available about the population and data
collection can be efficiently conducted on randomly distributed items. A simple random
sample of 186 customer’s respondents was obtained from each of the four retail Xiaomi
mobile stores; sum up a total of 350 respondents data.

Keeney (1992) has emphasized that the decision making should define objectives
before seeking alternatives that permit to attain his objectives. Therefore, researcher manage
to expose the relationship between the marketing mix, 4ps with customer making decision
lies in each P, it was elucidate clearly link to satisfaction.

3.2.2 Sample Size

Osahon, Kingsley. (2016) formula in this research, researcher used the to calculate
the sample size for this study: n=N/ (1+N (e2) Where n represents the sample size,
Population size is represented capital N and e2 Represent the level of precision (± 5%, or at
the 95 % confidence level). The sample size, calculates method for this research as: N = 350/
(1+350 (0.05²)), Therefore n = 186.7. Therefore, the researchers take 186 respondents as
sample size for this study.

3.3 Demographic profile of sample

Demography is the quantitative study of populations. Demographic data, in their

simplest form, refer to six interacting dimensions: - Births, deaths, migration (and resulting
population growth), Age, sex, income, educational level, occupation, spatial distribution and
resulting population structure (Bureau Haub, 2009).
 24

Customer from Palus who used Xiaomi mobile were asked to rate the level of
agreements based on a five point of the Likert rating scale with providing the various
statements that impact of making decision that could be relationship between products, price,
place and promotion and their making decision towards satisfaction to buy Xiaomi mobile.

3.3.1 Demographic Coding Structure

Coding structure is useful in processing the data and analyzing the data and
interpreted the data to generate an interpretation to analyze the data to research questions.
Zikmund, defined “the process of identifying and classifying each answer with a numerical
score or other symbol” and the coding sample are collected as follows;

What is your gender?

1 = Male, and 2 =

Female How old are

you?

Age structure (years): (1) less than 20, (2) 21-35, (3) 36-40, (4) 41-50

What is your marital status?

Marital status: 1=Single, 2=Married

What is your occupation?

1=Student, 2= Office, 3= Company, 4=Others

What is your education level?

1 =Ungraduated, 2=Graduated, 3=Post graduated.

What is your month income?

 25

1=Less than 100,000Kyat, 2=100,001-200,000Ks, 3=200,001-300,000Ks, 4=300,001-

500,000Ks, 5= Over 500,001Ks.

Targets’ approach: 1 means Strongly satisfaction, 2 satisfaction, 3 means moderate, 4

dissatisfaction, and 5 strongly dissatisfaction. Xiaomi mobile phone user were asked that the
coding structures that will be used in the questionnaire of this research are as follows:

Product quality of Xiaomi (1) Strongly satisfaction, (2) satisfaction, (3) means
moderate, (4) dissatisfaction, and (5) strongly dissatisfaction.

Price of Xiaomi (1) Strongly satisfaction, (2) satisfaction, (3) means moderate, (4)
dissatisfaction, and (5) strongly dissatisfaction.

Place or distribution channel of Xiaomi (1) Strongly satisfaction, (2) satisfaction, (3)
means moderate, (4) dissatisfaction, and (5) strongly dissatisfaction.

Promotion of Xiaomi (1) Strongly satisfaction, (2) satisfaction, (3) means moderate,
(4) dissatisfaction, and (5) strongly dissatisfaction.

Overall satisfaction of using Xiaomi mobile of customers in Palus.

Are you satisfaction with using with Xiaomi mobile phone?

1 = yes, 2 = No.

This study will employ the SPSS software, as the software benefits the researcher as
it easy to use and appropriate in handling data (Gaur, 2006); therefore, the SPSS software
will be employed in this study.

3.4 Research Instruments

3.4.1 Research Design

BURNS, & GROVE, (2003) define a research design as “a blueprint for conducting
a study with maximum control over factors that may interfere with the validity of the
findings”.
 26

Parahoo, (2006) describes a research design as “a plan that describes how, when and where
data are to be collected and analyses”. Polit et al (2001:167) define a research design as “the
researcher’s overall for answering the research question or testing the research hypothesis”.

This study focuses on marketing mix strategies of Xiaomi mobile phone in Palus that
impacts on making decision towards customer satisfaction. The research approach for the
research study is “Descriptive Research”. Descriptive research is a study designed to show
the participants in an accurate way. More simply put, descriptive research is all about
describing people who take part in the study.

Descriptive research can be explained as a statement of affairs as they are at present

with the researcher having no control over variable. Moreover, “descriptive research may be
characterized as simply the attempt to determine, describe or identify what is, while
analytical research attempts to establish why it is that way or how it came to be” ( Ethridge,
2004, p.24).

Descriptive studies can contain the elements of both, qualitative and quantitative
methods within a single research. In descriptive studies data collection is facilitated without
changing the environments.

An important distinctive trait of descriptive research compared to alternative types of

studies relates to the fact that while descriptive research can employ a number of variables,
only one variable is required to conduct a descriptive study.

3.4.2 Design of Questionnaire

Questionnaires are the Xiaomi mobile phone users from Palus to collect the primary
data about their attitudes towards the all variables in this research. Survey are conducted to
understand the right target and approach towards the research, questionnaires are used as the
surveys for this research.

Close-end questions are used in this field of study, which limited the respondents to
answer the question in a specific way by selecting the closest option from the given
alternative
 27

choices in the question (Zikmund, 2004). The researcher had divided the questionnaire into
three parts and engaged the 1-5-point Likerst.

Zikmund (2004) defined the Likert scale as the respondents indicate their attitudes by
checking how toughly they satisfy or dissatisfy with carefully constructed statement that
range from very negative to very positive toward the attitudes object. Review of academic
literature, text and research articles, and identified the variables that related to the study.

The questionnaires were designed Burmese and English in this research. The
questionnaire will be divided into three parts:

The Part one is managed to plan in exploring demographic dealing with marketing
mix; and making decision towards customer satisfaction variables; whereas the Part two will
explore the impact of 4P such as product, price, place and promotion towards making
decision to buy Xiaomi mobile phone. The last part is overall satisfaction of using Xiaomi
mobile phone.

Questions 1 to 5 are elementary on demographic and the impact of marketing mix

strategy variables, including gender, age, marital status, occupation, income and education
level. Questions 6 to 9 were related marketing mix 4Ps. Questions 10 to 11 were related to
the most significance of the marketing mix strategy that impact of making decision towards
overall satisfaction using Xiaomi mobile in Palus

3.4.3 Data collection procedure

In every research the data is collected in two ways, the secondary and primary
research process. The two methods used by the all researchers for generating the data for the
research. The secondary research collects the data from the past researcher and primary
research collect the data though the questionnaires. Moreover, this study employs the
secondary and primary research to collect the data.

The secondary research is used to collect data from the related books on marketing
mix on customer satisfaction, physical environment, ambient conditions, layout, sign,
symbols, artifacts, product, price, place and promotion from the past research, case studies,
online or offline journal and all are the related data that support the framework of the
research. Also the
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collected data, aid in making of the framework and questionnaire is formed. The created
questionnaire will employ for the generating the primary data for this study.

This study was conducted in Palus area, the most populous state in Palus with
approximately 5.21 million residents. At the time of the study, four retail stores were chosen
as the research sites. The data were collected by means of questionnaire. The age of less than
20 to 50 users of Xiaomi phone were the target of the research during the surveyed period.
First appointment was conducted with the personal in-charge in each Xiaomi retail mobile
store in Palus to request cooperation and approval for data collection and survey respond in
this research.

3.5 Statistical methods and analysis of Data

Data analysis describes how the collected data is brought to order, structured and
appropriate interpretation is derived (Catherine and Rossman, 2006). Using Statistical
Package for social Sciences (SPSS) software, data obtained was coded and analyzed using
descriptive statistics which include frequency distribution, mean scores percentages and
standard deviation.

Descriptive statistics data analysis enabled the researcher to meaningfully describe

the data with numerical indices. The data collected from questionnaire was systematically
organized to facilitate descriptive analysis in order to obtain Marketing Mix Strategy of
Xiaomi Mobile Phone in Palus that Impacts on Making Decision towards Customer
Satisfaction.

Firstly, the researcher collected the information and insights by analyzing raw data.
Secondly, it can help researcher to interpret and understand related analysis. Finally,
Techniques of analysis data or handle of data are important and can result in constructively
researcher's objectives.

Every studies conducted by the researcher are unique of its own kind and data are
analysis as per individual researcher need or the studies conducted. However, all the data will
be analysis will involve in editing the data and coding of the data. Which will be a
combination
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of one or more data analysis will be techniques and will have to concern with presenting the
results effectively.

Zikmund (2003) defined editing as the “process of making data ready for coding and
transfer to data storage”. Editing is aimed to ensure the data are completeness, consistency,
and reliability. The role of the editing process is to identify omissions, ambiguities, and
errors in the responses. It should be conducted in the field by the interviewer and field
supervisor, as well as by the analyst, just prior to data analysis. Careful editing makes the
coding job easier.

Coding is defined as the “process of identifying and classifying each answer with a
numerical score or other character symbol” (Zikmund, 2003). After finishing data
preparation, the data analysis firstly requires analyzing and measuring each question by using
tabulation. Tabulation simple by counting the case and categorized the case into various
categories. Aim at the data cleaning in identifying the omissions, ambiguity and errors made
by respondent measured as an interval or ratio; they are transformed to nominally scaled
variables for the purpose of cross-tabulation.