Mazharkhan Modi Final Project Report (1)

8/12/2019 Mazharkhan Modi Final Project Report (1)

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Title of Project

Study of MVAS & M-COMMERCE IN INDIA

A Thesis subitted i! "#rti#l fulfille!t of

P$DM e-%usi!ess "ror#

S'%MITTED %(

M#)h#r*h#! Modi

'NDER T+E $'IDANCE O,

Prof Di#*#r .##th

De"#rte!t / P$DM e-%usi!ess

PRIN0 10 N0 2E1IN$.AR INSTIT'TE O, MANA$EMENT

DEVE1OPMENT & RESEARC+3 M'M%AI 4 566 678

96thM#rch :67:

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Statement by the Candidate

I wish to state that the work embodied in the thesis titled Study of MVAS & M-COMMERCE

in India forms my own !ontribution to the resear!h work !arried out under the "uidan!e of

#rof $%iakar 'amath at the #rin$ ( ) *elin"kar Institute of Mana"ement %eelo+ment and

Resear!h ,*eS!hool$ .his work has not been submitted +reiously to *eS!hool or to any otherInstitution or +a+er !ontest either in full or +art$ *heneer referen!e has been made to +reious

works of others/ it has been !learly indi!ated as su!h and in!luded in the 0iblio"ra+hy$

11111111111111111111

Si"nature of the Candidate

)ame 2 Ma3harkhan Modi

Certified by

111111111111111111

Si"nature of the 4uide

)ame 2 #rof$ %iakar 'amath

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A!knowled"ements

I would like to e5tend my sin!ere thanks to the +eo+le who +layed a instrumental role in hel+in"

me durin" my !ourse of the +ro6e!t$ 7irst of all I would like to thank Welingkar Institute of

Management Development & Researchfor "iin" me an o++ortunity to !arry out this +ro6e!t and

derie a "reat industrial learnin" from it$

I would like to e5tend my sin!ere thanks to Prof0 Di#*#r .##th for "uidin" me from time to

time and "iin" me !ontinuous su++ort in eery +ossible manner$ #rof$ %iakar 'amath had

been a ery "ood mentor and would like to thank him for bein" a key +erson in hel+in" me to

!om+lete my +ro6e!t and +roidin" me with all the essential information needed to !om+lete the

+ro6e!t$

I would also like to thank our +ro"ram %ean Prof0 Pr#dee" Pe!dse Sirfor +roidin" us with an

o++ortunity of workin" in this +ro6e!t$

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ContentsE5e!utie Summary $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 8

Introdu!tion $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 9

Mobile Value Added Seri!es in India $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ :Industry %efinition $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ ;.he MVAS 0usiness Model $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ :

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E;ecutie Su#ry

.he mobile +hone is !omin" of a"e as it be!omes an inte"ral +art of our life/ and its a++li!ation

e5tends from basi! oi!e !allin" to instant messa"in"/ !al!ulator/ mini !amera/ musi! +layer to

an internet ready/ a++li!ation drien !om+utin" system$ *hile the rea!h of the mobile +hone is a

for!e to be re!koned with and its +otential to delier seri!es is immense/ the ran"e of seri!es!urrently bein" offered in the Indian market is !ertainly limited$ ?oweer/ the +lethora of needs/

from health and edu!ation to finan!ial in!lusion and "oernan!e/ that it !an sere are unlimited$

In this !onte5t/ this study seeks to understand the !urrent and future state of Mobile Value AddedSeri!es ,MVAS in India alon" with some of the key driers/ !hallen"es/ and solutions whi!h

!an s+ur the "rowth of the e!osystem

.o understand this to+i! thorou"hly/ I studied lot of #rticlesfrom the different 6ournals@re+orts$

A< After understandin" the to+i!/ I fi"ured out a +roblem whi!h is fa!ed by the mobileo+erator in !arryin" out MVAS a!tiities$ .he "roble st#tee!tfor the resear!h study

was de!ided as Whether the Mobile operator will be able to attract non buyers,acquire new customers and retain existing customers through MVAS activities0

*ith this ob6e!tie in mind/ I +re+ared a =uestio!!#ireand !ir!ulated the Buestionnaire online$ I

"ained = res+ondents for the surey !ondu!ted and then later analy3ed the data to brin" out a

!on!lusion$

After analy3in" the data/ hae made fe> recoe!d#tio!s$ Some of the re!ommendations are2

Marketers also need to remember that 9=D hae neer transa!ted in mobile$ Consumers

need reassuran!e oer se!urity/ edu!ation about aailability of seri!es/ and ease of use$

More +rodu!t information is needed on the mobile internet$ .his is an o++ortunity for

+ublishers and retailers/ and will be!ome an im+ortant +art of eery mobile marketers6ob/ so that !onsumers are aware of whats aailable$ Seri!es that are likely to do well

in!lude2

#rodu!t reiew sites and !onsumer forums

Com+arison sho++in" seri!es

%is!ount sites and !ou+on seri!es

#ri!e a""re"ators

Classifieds

Mobile !ontent is still mu!h in demand$

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.hose industries that will win in the immediate term in!lude2

.rael

4ad"ets

#hysi!al media

0anks and mer!hants hae a !ru!ial role to +lay in reassurin" !onsumers about their

se!urity$ Messa"es between banks/ mobile +ayment +roiders/ mer!hants/ e-wallet+roiders/ tel!os/ and so on/ hae be!ome in!onsistent and di33yin"$ Consumers do not

know who to trust/ who to !hoose/ what is best$ Industry standards need to be set$ .he

followin" tools are im+ortant first ste+s2

In demand are seri!es ,su!h as SMS notifi!ations whi!h reassure users$

0alan!e enBuiries an im+ortant a!tiity ahead of +ur!hase$

Introduction

India is a !ountry of a billion +lus +eo+le with needs s+annin" a!ross basi! hy"iene andsanitation/ !lean drinkin" water/ basi! health!are/ +rimary edu!ation to adeBuate housin"/ roads/

hi"her edu!ation/ bankin" fa!ilities/ disease !ontrol/ and disease mana"ement$ Ea!h +roblem is

e5a!erbated by its sheer ma"nitude$ .oday/ we still stru""le to disseminate basi! bankin"/ health/and edu!ation seri!es to lar"e se"ments of the +o+ulation$

F .o rea!h a billion +lus +eo+le and ensure eBuitable distribution of basi! amenities and seri!es

is a diffi!ult +ro+osition "ien the "eo"ra+hi!al s+read and dis+arate leels of infrastru!turedeelo+ment$ ?oweer/ the ability to fulfill key needs of the !iti3ens is also a minimum

reBuirement for +ro+ellin" "rowth and deelo+ment in the !ountry$ In this a"e/ te!hnolo"y is a

"reat enabler for "rowth/ whi!h !uts a!ross all se!tions and strata of so!iety$ India has theo++ortunity to take its "rowth story to the ne5t leel and a!hiee a sustainable basis by

leera"in" te!hnolo"y to the fullest$

F In todays world/ instantaneous e5!han"e of arious forms of data has enabled seri!es from

edu!ation to health!are ins+ite of limited +hysi!al a!!ess to seri!e +roiders and +hysi!al formsof data$ *ith the ra+id s+read of mobile te!hnolo"y there is ho+e that some of these basi!

seri!es !an thus be +roided to a far "reater number of +eo+le at an e5+edited +a!e$

F .here is no doubt that the mobile +hone is the te!hnolo"y +rodu!t that has tou!hed the hi"hestnumber of Indians to date$ *hile the teleision s!reen dominated our lies for the lon"est time/

and the #C and the internet em+owered urban India to take its +la!e on the "lobal business sta"e/

it is the mobile +hone that Indians hae taken u+ with "usto $ *ith 9== MillionG subs!ri+tions

far sur+assin" all fore!asts and estimations/ the mobile +hone has be!ome ubiBuitous in the!ountry$ .hese numbers are e5+e!ted to "row een further "oin" u+ to nearly without +hysi!al a!!ess/ as is seen

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from su!h initiaties around the world$ *ith the adan!ement in te!hnolo"y/ een mobile

+hones at the lowest +ri!e +oints today !an su++ort +owerful a++li!ations whi!h em+ower the

user in a ariety of ways/ from e5!han"in" information ia SMS/ a!!essin" entertainment basedseri!es to !he!kin" bank a!!ount details/ !ro+ +ri!es/ re!eiin" +ersonali3ed health alerts and

obtainin" o!ational trainin"$ .his makes mobiles +hones the +erfe!t medium to delier a ariety

of !ontent and seri!es/ or as referred to in +o+ular +arlan!e H Mobile Value Added Seri!es,MVAS - to the Indian +o+ulation$

Mobile Value Added services

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I!dustry Defi!itio!

.he nature of alue added seri!es !han"es oer time$ A VAS may be!ome !ommon+la!e and

!ommoditi3ed su!h that it !eases to +roide a basis for differentiation$ 7or e5am+le/ #># SMS

was the only form of VAS in the early days of ado+tion of mobile tele+hony in India$ 4ien the!urrent state of the industry #># SMS has !eased to +roide a meanin"ful tool for seri!e

differentiation/ and therefore has not been in!luded for !al!ulatin" the market si3e for the

+ur+ose of this study$

$ro>th Driers

4ien the !hallen"es +osed by the Indian mobile tele+hony market as hi"hli"hted in the se!tion

aboe/ MVAS is likely to be!ome a tool for additional reenue/ seri!e differentiation/ and

!ustomer retention$ .ele!om o+erators are lookin" at MVAS as the ne5t wae for "rowth and alar"e !hunk of reenue is e5+e!ted to flow in from VAS in the near future$

.he "rowth in the market will be +ro+elled by o+erator initiaties/ as well as by the followin"

ma!ro-e!onomi! fa!tors2

The booi! I!di#! eco!oy/ India has emer"ed as one of the fastest "rowin" e!onomies in

the world/ with s+endin" on infrastru!ture and !onsum+tion "rowin" at a ra+id +a!e$ 4rowin"em+loyment o++ortunities hae resulted in a si"nifi!ant in!rease in dis+osable in!ome/ leadin" to

a "rowin" a!!e+tan!e of new te!hnolo"ies and e5+enditure on !ommuni!ation

I!cre#si! user cofort >ith b#sic obility serices/ .he Indian mobile tele+hony market hasattained !riti!al mass due to the in!reasin" affordability of mobile seri!es/ as well as the

in!reasin" !omfort with basi! mobility seri!es$ A lar"e !hunk of users are !omfortable with

o+eratin" their mobile +hones/ and would +ro"ress into demandin" more alue-add beyond basi!

oi!e a++li!ations/ driin" the ne5t +hase of "rowth$

Perso!#li)#tio! of co!te!t #!d deices/ 7or a lar"e number of subs!ribers/ the mobile +hone

has be!ome an e5tension of their +ersona$ .he su!!ess of !aller rin" ba!k tones is eiden!e

that users are willin" to ado+t seri!es whi!h offer them the +ossibility of +ersonali3ation

Market Size:

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The Indian Mobile Value Added Services (MVAS) industry is estimated to grow to ` !"#$$ crores by #$%& 'rom the

current estimated size o' ` %#"#$$ crores

on*voice revenues currently constitute about + %$, o' revenues o' Indian telecom o-erators A com-arison with

other countries (.e'er /igure &) indicates an average o' +#0," -roviding large sco-e 'or growth o' MVAS in India

Telecom o-erators" who have made heavy investment commitments to the tune o' ` 12"$$$ crores collectively

in 03 s-ectrums2" and will need to make 'urther investments in setting u- the network in'rastructure 'or 03" are

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looking to the MVAS market to enhance their A.45s in the ne6t 'ew years

The MVAS Business Model

MVAS has also resulted in the emer"en!e of an entirely new business e!o-system "iin" rise to

su++ortin" industries su!h as !ontent deelo+ment and a""re"ation$ .here are multi+le

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H An o+en wallet system/ whi!h may fuel ra+id su!!ess of these seri!es in India/ is yet to be

allowed in the !ountry$ ?oweer/ the )ational and #ayments Cor+oration of India ,)#CI - set

u+ by R0I/ as an umbrella institution for all the retail+ayments system in the !ountry - is !urrently +ilotin" a #erson-to-#erson ,#># money transfer

me!hanism !alled the LInterbank Mobile #ayment Seri!e ,IM#S$ Si5 of the leadin" banks in

India are +arti!i+atin" in this +ilot/ whi!h !an hel+ in "reater e5+ansion of mobile bankin"seri!es$

Statement of the problem

*hether the Mobile o+erator will be able to attra!t non buyers/ a!Buire new !ustomers and retain

e5istin" !ustomers throu"h MVAS a!tiities0

Motivation for the study

My interest in the .ele!om Se!tor whi!h I deelo+ed when I was studyin" this sub6e!t and also

lot of readin" whi!h I hae done s+e!ifi! to the se!tor $

Scope of the study

.he mobile +hone is !omin" of a"e as it be!omes an inte"ral +art of our life/ and its a++li!ation

e5tends from basi! oi!e !allin" to instant messa"in"/ !al!ulator/ mini !amera/ musi! +layer to

an internet ready/ a++li!ation drien !om+utin" system$ *hile the rea!h of the mobile +hone is afor!e to be re!koned with and its +otential to delier seri!es is immense/ the ran"e of seri!es

!urrently bein" offered in the Indian market is !ertainly limited$ ?oweer/ the +lethora of needs/

from health and edu!ation to finan!ial in!lusion and "oernan!e/ that it !an sere are unlimited$In this !onte5t/ this study seeks to understand the !urrent and future state of Mobile Value Added

Seri!es ,MVAS in India alon" with some of the key driers/ !hallen"es/ and solutions whi!h

!an s+ur the "rowth of the e!osystem $.he study deles into the +otential of MVAS to enhan!ethe Buality of life and standard of liin" for ma6or se!tions of the Indian +o+ula!e/ in!ludin" the

effe!tie and effi!ient deliery of "oernment seri!es

Limitations of the study

.his study is more s+e!ifi! with the MVAS se!tor and hen!e few !on!lusions drawn out of it

may not be true to s+e!ifi! se!tor $

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The specific contribution which this study has made from an industry standpoint

.he !on!lusions drawn out of this resear!h +ro6e!t !an hel+ the tele!om +layers to de!ide on the

future MVAS strate"ies based on !ustomer +referen!e$

!iterature "eview

.he (iterature sureyed for this resear!h !an be diided into 8 broad areas2

>$< .he MVAS 0usiness Model$

>$> .he adertisin" +ers+e!tie in MVAS Industry>$ 'ey %riers Of Mobile Value Added seri!es$

>$ 0enefits for the !ustomers/ role of the dei!es and future demand for

different +layers$>$8 'ey reasons for India to look at M-Commer!e as a fo!us area

.he followin" se!tion +roides an outline of literature reiewed under ea!h of the aboe heads$

:07< The MVAS %usi!ess Model/ Rese#rch %y %osto! A!#lytics3 Oct :66@

MVAS has also resulted in the emer"en!e of an entirely new business e!o-system "iin" rise to

su++ortin" industries su!h as !ontent deelo+ment and a""re"ation$ .here are multi+lestakeholders +layin" a!ross the MVAS alue !hain many with oerla++in" roles and fun!tions$

.he main stakeholders inoled in the VAS alue !hain are

Co!te!t co"yriht o>!ers/ At the first leel of the MVAS alue !hain are the !ontent !o+yri"ht

owners/ whi!h deelo+ ori"inal !o+yri"ht !ontent$ E5am+les in!lude musi! +rodu!tion houses

,SaRe4aMa/ Sony/ 0ollywood +rodu!tion houses ,ash Ra6 7ilms/ and media houses ,Sony/

Star/ Jee/ et!$

Custoi)ed co!te!t cre#tors/ Refers to !om+anies that "enerate !ustomi3ed !ontent for users

throu"h their own +ortals$ E5am+les in!lude Mau6/ One K:/ and ?un"ama Mobile$

Co!te!t "ort#ls?#re#tors/ .hese are indiiduals@or"ani3ations that "ather web !ontent and

in some !ases distribute !ontent to suit !ustomer needs$ E5am+les in!lude Indiatimes and?un"ama Mobile$

Mobile o"er#tors/ .hey +roide trans+ort and su++ort me!hanisms for deliery of mobile

!ontent$ E5am+les in!lude Airtel/ Relian!e/ 0S)(/ M.)(/ ?ut!h/ Idea Cellular/ et!$

Tech!oloy e!#blers/ On the other end of the alue !hain are te!hnolo"y enablers$ .hese

+roide te!hnolo"y +latforms that enable a!!ess to MVAS$ #layers in!lude On Mobile/ 0harti.elesoft/ *ebaroo/ et!$

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+#!dset #!uf#cturers2 Mobile handset manufa!turers hae also started +layin" an im+ortant

role/ throu"h their intera!tion with all other stakeholders a!ross the alue !hain$ .heir a!tiities

in!lude embeddin" software links in their handsets/allowin" dire!t a!!ess to !ontent +ortals/ !reatin" seri!es !ustomi3ed to the need of !ertain

re"ions/ et!$ 'ey +layers in the Indian market in!lude )okia/ Motorola/ and Samsun"$

:0: The #dertisi! "ers"ectie i! MVAS I!dustry %y Mr0 Sh#shi Si!h# CEO

1o#dest#r/

Mr$ Shashi Sinha CEO (oadestar said/ *ith the adent of 4/ adertisin" +otential is bi"$ 0ut

the tri!k is to +ersonali3e the !ontent that is bein" dished out$ More !om+etition is sure to drie

down +ri!es but the need of the hour is not to be restri!tie but hae an a""re"ate$ Adertisin"

and !ontent is surely set to inte"rate from to 8 years from now$

:09< .ey Driers Of Mobile V#lue Added serices/ Rese#rch by ASSOC+AM & Deloitte

.he key driers for Ntility MVAS in!lude2

, A++li!ation based seri!es whi!h hae a leel of intera!tiity/ and reBuire the !onsumer to

+lay an a!tie role su!h as !he!kin" the status of +ayments/ IVR based lan"ua"e trainin"

seri!es/ et!$

, Enablement seri!es whi!h in!lude seri!es formin" a !lose substitute of those +roided by a

+hysi!al infrastru!ture su!h as a bank or a s!hool$ .hese seri!es usually inole transa!tions

su!h as +erson-to-+erson +ayments/ trael reserations et!$

:05< %e!efits for the custoers3 role of the deices #!d future de#!d for differe!t

"l#yers / Accordi! to Shri Peeyush A#r>#l3 Chief $e!er#l M#!#er3 0Mr0 Su!)#y

P#ss#ri3 E;ecutie Vice Preside!t- VAS & Deices3 Ess#r Teleco %usi!ess $rou"3 Mr0

Sh#shidh#r#! 4 M#!#i! Director3 %h#r#t E;hibitio!s

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90 Mobile/ 2ides"re#d Cost Effectie Ch#!!el

India has 9== Mn mobile subs!ribers/ "rowin" at a ra+id +a!e$ Com+ared to the :=/=== bankbran!hes in India/ !aterin" to the 9/==/=== illa"es and !ities/ the mobile is a far more

wides+read/ and !ost-effe!tie !hannel$ It is in!reasin"ly diffi!ult for banks to e5+and in rural

areas be!ause of arious infrastru!ture/ man+ower/ and o+erational +roblems$

Research Methodology

After formulatin" the resear!h +roblem/ the resear!her is interested to find out a suitable way to

sole the +roblem$ Resear!h methodolo"y is the way to systemati!ally sole that +roblem$ A

resear!h methodolo"y !onsists of arious ste+s$ A resear!her should hae detailed knowled"e

before im+lementin" all the ste+s of resear!h methodolo"y$ .he resear!her must dei"n the ste+s

of resear!h methodolo"y fo!usin" on the resear!h ob6e!ties and the lo"i! behind it$ .hus when

we talk of resear!h methodolo"y we not only talk on resear!h methods but also !onsider the

lo"i! behind the methods$ 'ee+in" the !on!e+t in mind the study desi"ns the followin" resear!h

methodolo"y$

Objectives of the Study

*hether the Mobile o+erator will be able to attra!t non buyers/ a!Buire new !ustomers and retain

e5istin" !ustomers throu"h MVAS a!tiities$

Hypothesis

Mobile +hones !an be a +owerful !hannel to delier essential information and seri!es to the

!iti3enry ia the "oernment and +riate +layers/ there are also some fundamental !hallen"es that

need to be addressed

Overview of Research Methodoloy

.his study often inoles the des!ri+tion of the e5tent of the asso!iation between two or more

ariables$ .he +resent study basi!ally deals with the mobile VAS and !onsumer behaior$

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Sample! Source and Method of "ata #ollection for the study and period of study

etc$

Resear!h desi"n2 %escri"tie desi! of rese#rch was used to obtain the +rimary data$

Method of data !olle!tion2 Surey ethod%ata !olle!tion is one of the most im+ortant methods for any resear!h$ *ithout data !olle!tion

the study does not do data analysis$ If a resear!her is unable to do data analysis then the out!ome

may not be +ossible/ so data !olle!tion is im+ortant$ %ata are of two ty+es i3/ +rimary andse!ondary data$ .here are arious sour!es of !olle!tin" +rimary and se!ondary data$

uestionnaire is one of the methods of !olle!tin" +rimary data whi!h the study ado+ted$ After

doin" literature reiew related to mobile MVAS and !onsumers behaior in national !onte5t theBuestionnaire has been made$

uantitatie resear!h te!hniBue2 .he =uestio!!#irewas administered online to the sele!ted

sam+le whi!h +roided us with the ne!essary information$ .he resear!h was !arried out usin"ma5imum !losed ended Buestions desi"ned to !olle!t the reBuisite information from the

res+ondents$

Sam+lin" method2 .he study took the hel+ of R#!do S#"li!$

.he data hae been !olle!ted throu"h stru!tured Buestionnaire whi!h has been "re testedamon"

the resear!hers and fa!ulties before +ostin" the final one$

Sam+le si3e2 56,+eo+le stayin" anywhere in the !ountry$

Resear!h .ime %uration2 .he resear!h took a++ro5imately


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8

=D

>9-8 >

9=D

9-8 > 8D

8 or more > 8D

4ender

Male >=

8=D

7emale >

=

8=D

?ae you eer +ur!hased any +rodu!t throu"h online transa!tion usin" mobile +honeP

es 8D

)o

=

:8D

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19

If es/ *hi!h +rodu!ts hae you bou"ht in the +ast 9 months usin" your mobile +honeP

4ro!eries = =D

Ele!troni!s and small a++lian!es 8D

Content for my +hone ,e" "ames/ ideos/ m+s/ rin"tones 9


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Bibliography


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Documents

Mazharkhan Modi Final Project Report (1)