Study of factors Involved in Smartphone
Vol 6 Issue 11 [Year 2015]
IRJMSH
ISSN 2277 – 9809 (0nline)
2348–9359 (Print)
Study of factors Involved in Smartphone Brand Preference by Young
Consumers in Delhi
Faheem Ahmed*
Ph.D Research Schola r, faculty of management, Jamia Hamdard (Hamdard University),
Hamdard Nagar, New Delhi-110062 email: faheem.happ@gmail.com
Dr. Reshma Nasreen
Associate professor, faculty of management, Jamia Hamdard (Hamdard University),
Hamdard Nagar, New Delhi-110062
*corresponding author
Abstract
In today’s world the Smartphone users are increasing day by day as these Smart phones provide
many facilities at one point. Smart phones can be considered to be the substitutes of laptops with
an additional feature of calling. The study is carried out by the researchers to find out the
Smartphone preferences by the consumers in the Delhi and NCR. The purpose of the study is
also to better understand the current dynamics of the market for Smartphone and the usage
behavior of consumers in Delhi and NCR. This study also looked into the familiarity of users
towards Smart phones, choices of Smartphone brands and most importantly in determining the
influencing factors that influence the purchase decisions of consumers. Additionally, the
consumer’s preferences on Smartphone specifications such as design, multimedia, operating
platform, and price were investigated. The study also tries to find out the consumers perception
for their Smartphone brands. The research consists of 100 respondents and among which are
students and working people. The analysis is carried out through SPSS software and results were
determined through various tests such as correlation, cross tabulation etc. The study will help the
Smartphone companies to develop their marketing strategies as per the consumer preferences.
Keywords: Consumer Behavior, Consumer Preference, Influencing Factors, Smartphone
Strategies
Introduction
In the last few years, a mobile phone changed its nature and utilities. From being a tool to
conduct a voice conversation the mobile became a device able to replace many other devices
such as digital camera, video recorder, personal navigation device, portable gaming console, and
even laptop. With over 5 billion people owning a cell phone, 0.7 phones every person, the
phones business is a huge one.Several studies have investigated the demographic features of
Smartphone users. Males (53%) are more likely to have a Smartphone than females (47%)
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(Entner, 2010). Balakrishnan and Yeow, has observed that the Smartphone possession in US is
skewed towards the younger generation people in age group of 25 to 44, (Balakrishnan and
Yeow, 2007). Another study done by Scarborough Research concluded that the young
Americans within the age bracket of 18 to 24 years are more familiar and comfortable with the
text- messaging feature on their cell phones, (Texting, 2008).
Worldwide sales of Smart phones surpassed those of feature phones in early 2013. As of July 18,
2013, 90 percent of global handset sales are attributed to the purchase of Android and iPhone
Smartphones. India is set to become the third- largest market for Smartphones in four years,
according to researcher IDC, with phone makers launching more affordable 3G handsets and
looking to tap buyers in small cities and towns.
Smartphone shipments to India are forecast to rise to 155.6 million units in 2017 from 27.8
million now, accounting for a 10.3% share of the global market behind China’s pro jected 30.2%
share and the US’s 12.1%, according to the IDC Wor ldwide Quarterly Mobile Phone
Tracker report, released on 4 March. India currently ranks sixth with a global market share of
3%; China has a 32.8% share and the US 15%.
India’s Smartphone market is expected to grow sharply because of a variety of factors, including
greater accessibility of low-cost devices and importance on less populous regions. In addition,
expansion of 3G network coverage and the rollout of 4G networks are expected to boost
Smartphone sales in the country.
According to the IDC report, India’s year-on-year Smartphone shipment growth is expected to be
the highest among the top countries—China, US, UK, Japan and Brazil—in the list as a majority
of the country’s mobile phone users presently use regular feature phones.
Literature Review
The Engel, Kollat and Blackwell model shows consumers’ buying-decision process, which is
based on the field of consumer psychology theories such as those developed by (Howard , 1963).
Innovativeness, defined by Bayus (2008) as ―the individual inherent innovative personality,
predisposition, and cognitive style toward innovations that can be applied to consumption
domain across product classes‖, is the essential factor upon which all segment characteristics
come from. It refers to the predisposition to adopt an innovation earlier than most other people
do. Modernisers play a major role in the diffusion and ultimate adoption of a new product.
Therefore, it is not remarkable the effort that academic research put on to identify variables
useful at spotting this category. Reviewing the literature that covers the profiling of early
adopters, it is possible to identify three major academic streams. The first stream was successful
at relating consumer personal characteristic to new product adoption behaviour, suggesting that
Innovators are likely to be younger, have higher levels of incomes and education, have greater
social mobility, favourable assertiveness toward risk, and have social contribution a nd higher
opinion leadership (Dickerson and Gentry 1983; Gatignon and Robertson 1991; Rogers 2003;
Kavak and Demirsoy, 2007).
Due to the speedy growth, the Smartphones has dominated other hand held mobile devices.
Currently, the Smartphone quenches the thirst for those people who need to be connected
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constantly (Lane & Manner, 2011). The Smartphone does not only act as a medium for
telecommunication, but it also helps in connecting to the world on various other ways. These
gadgets facilitate consumers to make use of social media sites and email right away. They also
let consumers surf the web, play games, and listen to music (Lane & Manner, 2011). The
Smartphone has numerous other functions like online banking, watching live television and
online movies, and reading e-books.
While marketers have been diligent in studying the demographic characteristics of Smartphone
users, they have ignored the impact of preferences on Smartphone ownership and use. The
purpose of this study is to examine which preferences by young who are using a Smartphone and
most likely to have a Smartphone and which functions are most important to them.
Devaraj et al, (2008) found that agreeableness has a positive association with beliefs about the
perceived usefulness of technology. While investigating, how young people’s exploits
technology Ehrenberg (2008) found that more displeasing individuals spend more time on calls
and that displeasing individuals with comparatively lower self-esteem spent more time using
instant messaging and shows stronger instant messaging addictive tendencies. Phillips et al.
(2008) revealed that people with low agreeableness were more likely to use their phones to play
games. Devaraj et al. (2008) found that assiduousness governs the relationship between
perceived usefulness of technology and intention to use technology, such that the relationship
was stronger for individuals with higher assiduousness.
Perceived usefulness of technology has not only facilitated Smartphone business, but also other
businesses such as Internet, e-commerce, and mobile advertising as well. Although lot of
information has been collected about the demographic characteristic of Smartphone owners, but
still there is lack of information about the impact of personality types on Smartphone ownership
and use. So, from the perspective of Smartphones makers, it would be invaluable to know if
different types of personality traits play a role in Smartphone ownership. If the marketer can
evaluate which personality type is positively associated with the ownership of Smartphone, then
marketer can focus these factors in an effort to get more of those personality types to purchase a
Smartphone. In addition, the marketer may also try to make their Smartphones attractive to the
other personality types. If the marketer can identify which personality traits are closely
associated with Smartphone functions, then the marketer can focus on those functions in the
selling process. For example, those who feel enjoyment with their personal contacts might prefer
making phone calls, and therefore the marketer may need to give the emphasis on ease of making
a phone call using the Smartphone. On the other hand, the neurotic might prefer email because it
does not involve too much personal contact. Attribute numerosity tends to benefit certain types
of options more than others and consequently has systematic effects on choice (Aner Sela , jonah
berger, 2012)
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Methodology
Primary data were collected by means of survey through structured questionnaire. The data were
collected from Delhi. The targeted audience was student and working executives. All the
respondents were between the age group of 15-40 years at the time of survey. Secondary data
were collected from articles, journals and internet as well as various articles, papers and thesis
related to topic.
Data collection
Data was collected from students and young executives through structured questionnaire. In all,
100 questionnaires were distributed, out of which 70 questionnaire were returned back and only
60 respondent’s questionnaire were chosen for data analysis.
Explorative research design is being carried out using snowball sampling method
Sample Size
60 respondents were randomly selected and research was undertaken in Delhi
Results
i)
Correlation between age group and the brand.
Table 1:
Age
Pearson coefficient
Sig.
Brand
0.012
0.928
Hypothesis- H01 : There is no relation between age group and the brand of Smartphone, Ha:
There is a relationship between age group and the brand of Smartphone
Interpretation: As shown in the above table 1, the significance level between age group and
brand comes out to be 0.928 at 95% confidence interval level which is more than 0.05. It reveals
a non-significant relationship between age and brand of Smartphone at p < .05. Hence the null
hypothesis is accepted resulting into the rejection of alternate hypothesis. This shows that there is
a relationship between age group and brand of Smartphone as shown in above table. The
relationship is .012 which is a positive relationship.
ii)
Correlation between Income and price factor
Hypothesis- H02 : There is no relationship between income of consumer and price of the smart
phone, Ha: There is relationship between income of consumer and price of the smart phone.
Table 2
Income
Price
Pearson coefficient
0.034
Sig.
0.798
Interpretation:As shown in the above table 2, the significance level between income and price
factor comes out to be 0.928 at 95% confidence interval level which is more than 0.05. It reveals
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a non-significant relationship between income and price factor of Smartphone at p < .05. Hence
the null hypothesis is accepted resulting into the rejection of alternate hypothesis.
iii)
Correlation between Occupation and mode of payment
Hypothesis- H03 : There is no relationship between occupation of consumer and the mode of
payment by the consumer, Ha: There is relationship between occupation of consumer and the
mode of payment by the consumer.
Table 3
Occupation
Pearson coefficient
Sig.
Mode of Payment
0.110
0.401
Interpretation: As shown in the above table 3, the significance level between occupation of
consumer and price factor comes out to be 0.401 at 95% confidence interval level which is more
than 0.05. It reveals a non-significant relationship between occupation and mode o f payment of
Smartphone at p < .05. Hence the null hypothesis is accepted resulting into the rejection of
alternate hypothesis.
i)
Smartphone brand used by users as well as is price an important issue?
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Figure 1: Bar diagram showing % of brand users and importance of price
Interpretation: As shown in the above figure, the maximum number of Smartphone is used by
consumer is Samsung and their usage percentage is 48.3%, whereas around 15.0% of
respondents are using Apple. On the other hand 13% of consumers are using Nokia and Sony is
used by 10% of consumers.
Interpretation: As shown in the above figure 1, the majority of the respondents, 43.7%, say that
price is an important issue. 38.3% of the respondents say that price is somewhat important. 13%
respondents admit that price is less important as far as Smartphone are concerned.
ii)
Place of purchase
Table
Preference
Company outlet
Multibrand
Online
Any other
Total
Percent
48.3
36.7
15.0
00.00
100
Interpretation: As shown in the table, the most favored place of purchasing is company
outlet.48.3% of the respondents admit this. 36.7% respondents preferred to buy Smartphone from
the multi-brand store. 15% of the respondents are willing to buy the product online as well.
Online purchase is a growing trend for Smartphone.
iii)
Preferences on the basis of feature
Table 4
Preference
Very important
Somewhat important
Neither
important
unimportant
Less important
Not at all important
Total
Design
48.3
41.7
not 5.00
5.00
00.00
100
Multime dia Cell
feature
56.7
61.7
26.7
28.3
10.0
6.7
Battery
life
61.7
25.0
3.3
Additional
feature
48.3
18.3
13.3
6.6
00.00
100
6.7
3.3
100
11.7
8.3
100.0
3.3
00.00
100
Interpretation: As shown in the above table 4, 61.7% of the users preferred cell feature and
battery life as very important aspect of the Smartphone. 48.3% users admit that design is very
important for Smartphone whereas 56.7% consumers admitted that multimedia is very important
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factor for Smartphone. However, 41.7% consumers revealed that design is somewhat important
and 25% consumers revealed that battery is somewhat important in case of Smartphones. 8.3%
of the consumers also mentioned that additional features are not at all important in Smartphone.
iv)
Smartphone as a symbol of Social status
Table 5
Preferences
Percentage
Very important
23.3
Somewhat important
43.3
Neither
important
not
18.4
unimportant
Less important
10.0
Not at all important
5.0
Total
100
Interpretation: As shown in the above table 5,43% consumers feel that Smartphone is somewhat
a symbol of social status. Only 23.3% respondents felt that it is very important symbol of social
status. 18.4% respondents felt that it’s neither important nor unimportant hence neutral. Only
10% respondents say that it is less important as a social status to have a Smartphone.
v)
Influence of external factors
Table 6:
Preferences
Family
Friends
Colleagues
Advertising
40.0
Professional
advice
45.0
23.3
Brand
ambassador
11.7
Very
important
Somewhat
important
Neither
important nor
unimportant
Less important
Not at all
important
Total
40.0
36.7
38.3
40.0
33.3
33.3
26.7
15.0
13.3
10.0
15.0
8.3
15.0
16.7
1.7
6.7
10.0
3.3
10.0
1.7
10.0
3.3
26.7
8.3
21.7
35.0
100.0
100.0
100.0
100.0
100.0
100.0
Interpretation: As shown in the table 6, 40% respondents feel that family advice is very
important for the purchase decision of Smartphone. Also, 38.3% respondents showed that family
advice is somewhat important. 40% of the consumers mentioned that friend’s advice is
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somewhat important. 45% of the respondents would like to follow the professional advice while
purchasing the Smartphone. 35% consumers say that brand ambassador is not at all important
while purchasing Smartphone.
vi)
Ranking of Features of Smartphones
Table 7:
Rank
Touchscreen
Rank 1
Rank 2
Rank 3
40.0
8.3
6.7
Rank 4
Rank 5
Rank 6
Rank 7
Rank 8
Rank 9
Rank 10
6.7
8.3
3.3
5.0
8.3
10.0
3.3
Rank 11
Total
00.00
100.0
keyp
ad
5.0
3.3
00.
00
6.7
6.7
8.3
3.3
5.0
8.3
10.
0
3.3
100
.0
User
friendl
y
5.0
15.0
11.7
screen
size
Multisi
m
Extende
d
warranty
1.7
5.0
5.0
5.0
5.0
16.7
00.0
6.7
1.7
6.7
11.7
3.3
20.0
11.7
8.3
6.7
3.3
3.3
16.7
3.3
13.3
13.3
5.0
3.3
1.7
1.7
3.3
3.3
5.0
28.3
1.7
8.3
6.7
16.7
18.3
13.3
13.3
00.0
100.0
15.0
100.
45.0
100.0
10.0
100.0
price
quality
Brand
5
11
11
6.7
8.3
11.7
25.0
10.0
15.0
8
10
6
4
3
1
00.0
16.7
13.3
8.3
15.0
15.0
5.0
00.0
11.7
3.3
11.7
3.3
3.3
13.3
00.00
1.7
100.0
00.0
100.0
3.3
100.0
Battery
life
00.0
8.3
6.7
design
3.3
6.7
8.3
23.3
20.0
15.0
16.7
3.3
3.3
3.3
11.7
5.0
21.7
8.3
20.0
3.3
1.7
00.0
100.0
10.0
100.0
Interpretation: As shown in the table 4.11, 40% of the Smartphone users gave the touch screen
as rank 1. 15% of the users gave rank 2 to the user friendliness of the Smartphone. 16.7 % user
ranked 3 to the screen size. Keypad was the most unfavorable feature for the Smartphone. 23%
users put battery life of the Smartphone on rank 4. 16.7% user put extended warranty on rank 7.
Multisim was given rank 11 by 45% Smartphone users. 21.7% users put design on rank 6.
Cross tabulation
1. Age group and mobile use
Table 8
Age
group
15-20
20-25
26-30
31-35
36-40
Total
Sony
Samsung
Apple
Nokia
Blackberry
0.0%
16.7
6.7%
16.7%
0.0%
100.0%
0.0%
37.9
34.5%
20.7%
6.9%
100.0%
11.1%
22.2%
22.2%
33.3%
11.1%
100.0%
0.0%
25.0%
37.5%
37.5%
0.0%
100.0%
0.0%
42.9%
42.9%
0.0%
14.3%
100.0%
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Interpretation: Table 8, reveals 11.1% users are using Apple mobile within age group 15-20
years. Samsung is 2nd most preferred mobile i.e. 37.9%, under the age group 20-25 years whereas
Blackberry mobile was used by 42.9% users in the same age group. Also within the age group of
26-30 years, 42.9% users preferred blackberry mobile. 37.5% users preferred Nokia.
2) Age group and importance of price
Table 9:
Age group
Very
important
Some what
important
Neither
Less
Not at all
important
important
important
nor
unimportant
15-20
0.0%
4.3%
0.0%
0.0%
0.0%
21-25
34.6%
30.4%
0.0%
37.5%
33.3%
26-30
46.2%
39.1%
0.0%
0.0%
33.3%
31-35
15.4%
13.0%
0.0%
62.5%
33.3%
36-40
3.8%
13.0%
0.0%
0.0%
0.0%
Interpretation: Table 9, revealed that in the age group of 26-30 years, 46.2% users said that price
is an important issue, 62.5% user in age group 31-35 said that price is less important issue.
46.2% respondents said that price is very important issue in the age group of 26-30 years.
Discussion
Exploration of Smartphone consumer behaviour by finding the determents of Smartphone
purchase. The result shows that product performance, branding, product design along with the
price have the influence on people’s buying decision process, which booms to the works that
whether the product can satisfy people’s needs, branding, appearance, and price can affect
consumer behaviour. According to consumer behaviour models, whether the product is able to
satisfy people needs is one of the arguments that influence people’s buying decision. In the case
of Smartphone, the product performance is considered as the influence that defines whether
one’s major needs could be satisfied; literature suggests that brand name has the effect on certain
level to the understanding of product quality, therefore in this study; brand image of a
Smartphone vendor affects people’s consumption decision. However, the influence is rather
small when comparing with other factors Appearance/Design influences consumers’ behaviour
easily. Here, appearance is the determent that influences buying choice the most according to
discriminant analysis, and is defined as the material se lection of a Smartphone; price has been
pointed out that it can be treated as the signal that represents product quality. In the case of
Smartphone, the result suggests that the influence of representing product quality is relatively
weak, and that people consider that price serves as aconversepointer in terms of buying decision.
Price is namely the price of a Smartphone and the price of additional purchase in the study.
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The main contributions of the thesis is to deconstruct existing theories of consumer behaviour,
proposing an alternative clarification of consumer behaviour in Smartphone purchase in which
major factors that affect Smartphone buying were found through analysis. Findings are able to
aid vendors in the marketing of Smartphone.
The factors in this study were defined strictly based on the literature. Hence, it is difficult to
cover the whole scope from a certain dimension. For example, in this study branding is defined
as the experience and the frequency of advertising that consumers perceived. Yet, the importance
of whether one can shape his/her ideal self- image through brand image was ignored. This kind of
questions could change the result enormously. On the other hand, the number of samples
required to directly represent the distribution may be prohibitively large. As unintentional
sampling was applied in this study and the sample size is small, the generalities about the total
population cannot be made scientifically. In fact, most of the respondents of the sample are
belong to the younggeneration. Since external influences, such as culture, social, and personal
factors, affect consumer behaviour, the result is not unbiased. Also, this study is based on a onetime survey. A longitudinal study to show the measurement of motivation for better reliability is
recommended.
Conclusion
In our survey, we come to know that there is no relationship between age group and the brand of
Smartphone. Also there was no relationship between income of the consumer and price of
Smartphone. It is evident by the data observed. Moreover companies are targeting younger
consumer as purchasing power has increased and user are well aware of the benefit of
Smartphone. Users are also exploring all mode of payments, hence having greater flexibility in
terms of payment, however maximum number of consumer still prefer to purchase from the
company outlet.
On the other hand, multi-brand purchase is on second position. In our finding we also came to
know that maximum numbers of users are of Samsung Smartphone, Apple is on second position,
and Nokia is on 3rd position in terms of Smartphone brand used by respondents. Blackberry and
Sony comes on 4th and 5th position respectively.
Price is very important issue while doing a purchase of Smartphone. Status symbol is also
attached with a Smartphone and hence more exclusive the mobile more status symbol it has.
The Smartphone purchase decision is also influenced by the external factors. Professional advice
is the most important followed by family and friends.
Among various feature of Smartphone, touch screen, user friendly, battery life are most favored
features whereas multi-sim and keypad were least favored feature in Smartphone.
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Study of factors Involved in Smartphone Brand Preference by Young
Consumers in Delhi
Faheem Ahmed*
Ph.D Research Schola r, faculty of management, Jamia Hamdard (Hamdard University),
Hamdard Nagar, New Delhi-110062 email: faheem.happ@gmail.com
Dr. Reshma Nasreen
Associate professor, faculty of management, Jamia Hamdard (Hamdard University),
Hamdard Nagar, New Delhi-110062
*corresponding author
Abstract
In today’s world the Smartphone users are increasing day by day as these Smart phones provide
many facilities at one point. Smart phones can be considered to be the substitutes of laptops with
an additional feature of calling. The study is carried out by the researchers to find out the
Smartphone preferences by the consumers in the Delhi and NCR. The purpose of the study is
also to better understand the current dynamics of the market for Smartphone and the usage
behavior of consumers in Delhi and NCR. This study also looked into the familiarity of users
towards Smart phones, choices of Smartphone brands and most importantly in determining the
influencing factors that influence the purchase decisions of consumers. Additionally, the
consumer’s preferences on Smartphone specifications such as design, multimedia, operating
platform, and price were investigated. The study also tries to find out the consumers perception
for their Smartphone brands. The research consists of 100 respondents and among which are
students and working people. The analysis is carried out through SPSS software and results were
determined through various tests such as correlation, cross tabulation etc. The study will help the
Smartphone companies to develop their marketing strategies as per the consumer preferences.
Keywords: Consumer Behavior, Consumer Preference, Influencing Factors, Smartphone
Strategies
Introduction
In the last few years, a mobile phone changed its nature and utilities. From being a tool to
conduct a voice conversation the mobile became a device able to replace many other devices
such as digital camera, video recorder, personal navigation device, portable gaming console, and
even laptop. With over 5 billion people owning a cell phone, 0.7 phones every person, the
phones business is a huge one.Several studies have investigated the demographic features of
Smartphone users. Males (53%) are more likely to have a Smartphone than females (47%)
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(Entner, 2010). Balakrishnan and Yeow, has observed that the Smartphone possession in US is
skewed towards the younger generation people in age group of 25 to 44, (Balakrishnan and
Yeow, 2007). Another study done by Scarborough Research concluded that the young
Americans within the age bracket of 18 to 24 years are more familiar and comfortable with the
text- messaging feature on their cell phones, (Texting, 2008).
Worldwide sales of Smart phones surpassed those of feature phones in early 2013. As of July 18,
2013, 90 percent of global handset sales are attributed to the purchase of Android and iPhone
Smartphones. India is set to become the third- largest market for Smartphones in four years,
according to researcher IDC, with phone makers launching more affordable 3G handsets and
looking to tap buyers in small cities and towns.
Smartphone shipments to India are forecast to rise to 155.6 million units in 2017 from 27.8
million now, accounting for a 10.3% share of the global market behind China’s pro jected 30.2%
share and the US’s 12.1%, according to the IDC Wor ldwide Quarterly Mobile Phone
Tracker report, released on 4 March. India currently ranks sixth with a global market share of
3%; China has a 32.8% share and the US 15%.
India’s Smartphone market is expected to grow sharply because of a variety of factors, including
greater accessibility of low-cost devices and importance on less populous regions. In addition,
expansion of 3G network coverage and the rollout of 4G networks are expected to boost
Smartphone sales in the country.
According to the IDC report, India’s year-on-year Smartphone shipment growth is expected to be
the highest among the top countries—China, US, UK, Japan and Brazil—in the list as a majority
of the country’s mobile phone users presently use regular feature phones.
Literature Review
The Engel, Kollat and Blackwell model shows consumers’ buying-decision process, which is
based on the field of consumer psychology theories such as those developed by (Howard , 1963).
Innovativeness, defined by Bayus (2008) as ―the individual inherent innovative personality,
predisposition, and cognitive style toward innovations that can be applied to consumption
domain across product classes‖, is the essential factor upon which all segment characteristics
come from. It refers to the predisposition to adopt an innovation earlier than most other people
do. Modernisers play a major role in the diffusion and ultimate adoption of a new product.
Therefore, it is not remarkable the effort that academic research put on to identify variables
useful at spotting this category. Reviewing the literature that covers the profiling of early
adopters, it is possible to identify three major academic streams. The first stream was successful
at relating consumer personal characteristic to new product adoption behaviour, suggesting that
Innovators are likely to be younger, have higher levels of incomes and education, have greater
social mobility, favourable assertiveness toward risk, and have social contribution a nd higher
opinion leadership (Dickerson and Gentry 1983; Gatignon and Robertson 1991; Rogers 2003;
Kavak and Demirsoy, 2007).
Due to the speedy growth, the Smartphones has dominated other hand held mobile devices.
Currently, the Smartphone quenches the thirst for those people who need to be connected
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constantly (Lane & Manner, 2011). The Smartphone does not only act as a medium for
telecommunication, but it also helps in connecting to the world on various other ways. These
gadgets facilitate consumers to make use of social media sites and email right away. They also
let consumers surf the web, play games, and listen to music (Lane & Manner, 2011). The
Smartphone has numerous other functions like online banking, watching live television and
online movies, and reading e-books.
While marketers have been diligent in studying the demographic characteristics of Smartphone
users, they have ignored the impact of preferences on Smartphone ownership and use. The
purpose of this study is to examine which preferences by young who are using a Smartphone and
most likely to have a Smartphone and which functions are most important to them.
Devaraj et al, (2008) found that agreeableness has a positive association with beliefs about the
perceived usefulness of technology. While investigating, how young people’s exploits
technology Ehrenberg (2008) found that more displeasing individuals spend more time on calls
and that displeasing individuals with comparatively lower self-esteem spent more time using
instant messaging and shows stronger instant messaging addictive tendencies. Phillips et al.
(2008) revealed that people with low agreeableness were more likely to use their phones to play
games. Devaraj et al. (2008) found that assiduousness governs the relationship between
perceived usefulness of technology and intention to use technology, such that the relationship
was stronger for individuals with higher assiduousness.
Perceived usefulness of technology has not only facilitated Smartphone business, but also other
businesses such as Internet, e-commerce, and mobile advertising as well. Although lot of
information has been collected about the demographic characteristic of Smartphone owners, but
still there is lack of information about the impact of personality types on Smartphone ownership
and use. So, from the perspective of Smartphones makers, it would be invaluable to know if
different types of personality traits play a role in Smartphone ownership. If the marketer can
evaluate which personality type is positively associated with the ownership of Smartphone, then
marketer can focus these factors in an effort to get more of those personality types to purchase a
Smartphone. In addition, the marketer may also try to make their Smartphones attractive to the
other personality types. If the marketer can identify which personality traits are closely
associated with Smartphone functions, then the marketer can focus on those functions in the
selling process. For example, those who feel enjoyment with their personal contacts might prefer
making phone calls, and therefore the marketer may need to give the emphasis on ease of making
a phone call using the Smartphone. On the other hand, the neurotic might prefer email because it
does not involve too much personal contact. Attribute numerosity tends to benefit certain types
of options more than others and consequently has systematic effects on choice (Aner Sela , jonah
berger, 2012)
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Methodology
Primary data were collected by means of survey through structured questionnaire. The data were
collected from Delhi. The targeted audience was student and working executives. All the
respondents were between the age group of 15-40 years at the time of survey. Secondary data
were collected from articles, journals and internet as well as various articles, papers and thesis
related to topic.
Data collection
Data was collected from students and young executives through structured questionnaire. In all,
100 questionnaires were distributed, out of which 70 questionnaire were returned back and only
60 respondent’s questionnaire were chosen for data analysis.
Explorative research design is being carried out using snowball sampling method
Sample Size
60 respondents were randomly selected and research was undertaken in Delhi
Results
i)
Correlation between age group and the brand.
Table 1:
Age
Pearson coefficient
Sig.
Brand
0.012
0.928
Hypothesis- H01 : There is no relation between age group and the brand of Smartphone, Ha:
There is a relationship between age group and the brand of Smartphone
Interpretation: As shown in the above table 1, the significance level between age group and
brand comes out to be 0.928 at 95% confidence interval level which is more than 0.05. It reveals
a non-significant relationship between age and brand of Smartphone at p < .05. Hence the null
hypothesis is accepted resulting into the rejection of alternate hypothesis. This shows that there is
a relationship between age group and brand of Smartphone as shown in above table. The
relationship is .012 which is a positive relationship.
ii)
Correlation between Income and price factor
Hypothesis- H02 : There is no relationship between income of consumer and price of the smart
phone, Ha: There is relationship between income of consumer and price of the smart phone.
Table 2
Income
Price
Pearson coefficient
0.034
Sig.
0.798
Interpretation:As shown in the above table 2, the significance level between income and price
factor comes out to be 0.928 at 95% confidence interval level which is more than 0.05. It reveals
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a non-significant relationship between income and price factor of Smartphone at p < .05. Hence
the null hypothesis is accepted resulting into the rejection of alternate hypothesis.
iii)
Correlation between Occupation and mode of payment
Hypothesis- H03 : There is no relationship between occupation of consumer and the mode of
payment by the consumer, Ha: There is relationship between occupation of consumer and the
mode of payment by the consumer.
Table 3
Occupation
Pearson coefficient
Sig.
Mode of Payment
0.110
0.401
Interpretation: As shown in the above table 3, the significance level between occupation of
consumer and price factor comes out to be 0.401 at 95% confidence interval level which is more
than 0.05. It reveals a non-significant relationship between occupation and mode o f payment of
Smartphone at p < .05. Hence the null hypothesis is accepted resulting into the rejection of
alternate hypothesis.
i)
Smartphone brand used by users as well as is price an important issue?
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Figure 1: Bar diagram showing % of brand users and importance of price
Interpretation: As shown in the above figure, the maximum number of Smartphone is used by
consumer is Samsung and their usage percentage is 48.3%, whereas around 15.0% of
respondents are using Apple. On the other hand 13% of consumers are using Nokia and Sony is
used by 10% of consumers.
Interpretation: As shown in the above figure 1, the majority of the respondents, 43.7%, say that
price is an important issue. 38.3% of the respondents say that price is somewhat important. 13%
respondents admit that price is less important as far as Smartphone are concerned.
ii)
Place of purchase
Table
Preference
Company outlet
Multibrand
Online
Any other
Total
Percent
48.3
36.7
15.0
00.00
100
Interpretation: As shown in the table, the most favored place of purchasing is company
outlet.48.3% of the respondents admit this. 36.7% respondents preferred to buy Smartphone from
the multi-brand store. 15% of the respondents are willing to buy the product online as well.
Online purchase is a growing trend for Smartphone.
iii)
Preferences on the basis of feature
Table 4
Preference
Very important
Somewhat important
Neither
important
unimportant
Less important
Not at all important
Total
Design
48.3
41.7
not 5.00
5.00
00.00
100
Multime dia Cell
feature
56.7
61.7
26.7
28.3
10.0
6.7
Battery
life
61.7
25.0
3.3
Additional
feature
48.3
18.3
13.3
6.6
00.00
100
6.7
3.3
100
11.7
8.3
100.0
3.3
00.00
100
Interpretation: As shown in the above table 4, 61.7% of the users preferred cell feature and
battery life as very important aspect of the Smartphone. 48.3% users admit that design is very
important for Smartphone whereas 56.7% consumers admitted that multimedia is very important
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factor for Smartphone. However, 41.7% consumers revealed that design is somewhat important
and 25% consumers revealed that battery is somewhat important in case of Smartphones. 8.3%
of the consumers also mentioned that additional features are not at all important in Smartphone.
iv)
Smartphone as a symbol of Social status
Table 5
Preferences
Percentage
Very important
23.3
Somewhat important
43.3
Neither
important
not
18.4
unimportant
Less important
10.0
Not at all important
5.0
Total
100
Interpretation: As shown in the above table 5,43% consumers feel that Smartphone is somewhat
a symbol of social status. Only 23.3% respondents felt that it is very important symbol of social
status. 18.4% respondents felt that it’s neither important nor unimportant hence neutral. Only
10% respondents say that it is less important as a social status to have a Smartphone.
v)
Influence of external factors
Table 6:
Preferences
Family
Friends
Colleagues
Advertising
40.0
Professional
advice
45.0
23.3
Brand
ambassador
11.7
Very
important
Somewhat
important
Neither
important nor
unimportant
Less important
Not at all
important
Total
40.0
36.7
38.3
40.0
33.3
33.3
26.7
15.0
13.3
10.0
15.0
8.3
15.0
16.7
1.7
6.7
10.0
3.3
10.0
1.7
10.0
3.3
26.7
8.3
21.7
35.0
100.0
100.0
100.0
100.0
100.0
100.0
Interpretation: As shown in the table 6, 40% respondents feel that family advice is very
important for the purchase decision of Smartphone. Also, 38.3% respondents showed that family
advice is somewhat important. 40% of the consumers mentioned that friend’s advice is
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somewhat important. 45% of the respondents would like to follow the professional advice while
purchasing the Smartphone. 35% consumers say that brand ambassador is not at all important
while purchasing Smartphone.
vi)
Ranking of Features of Smartphones
Table 7:
Rank
Touchscreen
Rank 1
Rank 2
Rank 3
40.0
8.3
6.7
Rank 4
Rank 5
Rank 6
Rank 7
Rank 8
Rank 9
Rank 10
6.7
8.3
3.3
5.0
8.3
10.0
3.3
Rank 11
Total
00.00
100.0
keyp
ad
5.0
3.3
00.
00
6.7
6.7
8.3
3.3
5.0
8.3
10.
0
3.3
100
.0
User
friendl
y
5.0
15.0
11.7
screen
size
Multisi
m
Extende
d
warranty
1.7
5.0
5.0
5.0
5.0
16.7
00.0
6.7
1.7
6.7
11.7
3.3
20.0
11.7
8.3
6.7
3.3
3.3
16.7
3.3
13.3
13.3
5.0
3.3
1.7
1.7
3.3
3.3
5.0
28.3
1.7
8.3
6.7
16.7
18.3
13.3
13.3
00.0
100.0
15.0
100.
45.0
100.0
10.0
100.0
price
quality
Brand
5
11
11
6.7
8.3
11.7
25.0
10.0
15.0
8
10
6
4
3
1
00.0
16.7
13.3
8.3
15.0
15.0
5.0
00.0
11.7
3.3
11.7
3.3
3.3
13.3
00.00
1.7
100.0
00.0
100.0
3.3
100.0
Battery
life
00.0
8.3
6.7
design
3.3
6.7
8.3
23.3
20.0
15.0
16.7
3.3
3.3
3.3
11.7
5.0
21.7
8.3
20.0
3.3
1.7
00.0
100.0
10.0
100.0
Interpretation: As shown in the table 4.11, 40% of the Smartphone users gave the touch screen
as rank 1. 15% of the users gave rank 2 to the user friendliness of the Smartphone. 16.7 % user
ranked 3 to the screen size. Keypad was the most unfavorable feature for the Smartphone. 23%
users put battery life of the Smartphone on rank 4. 16.7% user put extended warranty on rank 7.
Multisim was given rank 11 by 45% Smartphone users. 21.7% users put design on rank 6.
Cross tabulation
1. Age group and mobile use
Table 8
Age
group
15-20
20-25
26-30
31-35
36-40
Total
Sony
Samsung
Apple
Nokia
Blackberry
0.0%
16.7
6.7%
16.7%
0.0%
100.0%
0.0%
37.9
34.5%
20.7%
6.9%
100.0%
11.1%
22.2%
22.2%
33.3%
11.1%
100.0%
0.0%
25.0%
37.5%
37.5%
0.0%
100.0%
0.0%
42.9%
42.9%
0.0%
14.3%
100.0%
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Interpretation: Table 8, reveals 11.1% users are using Apple mobile within age group 15-20
years. Samsung is 2nd most preferred mobile i.e. 37.9%, under the age group 20-25 years whereas
Blackberry mobile was used by 42.9% users in the same age group. Also within the age group of
26-30 years, 42.9% users preferred blackberry mobile. 37.5% users preferred Nokia.
2) Age group and importance of price
Table 9:
Age group
Very
important
Some what
important
Neither
Less
Not at all
important
important
important
nor
unimportant
15-20
0.0%
4.3%
0.0%
0.0%
0.0%
21-25
34.6%
30.4%
0.0%
37.5%
33.3%
26-30
46.2%
39.1%
0.0%
0.0%
33.3%
31-35
15.4%
13.0%
0.0%
62.5%
33.3%
36-40
3.8%
13.0%
0.0%
0.0%
0.0%
Interpretation: Table 9, revealed that in the age group of 26-30 years, 46.2% users said that price
is an important issue, 62.5% user in age group 31-35 said that price is less important issue.
46.2% respondents said that price is very important issue in the age group of 26-30 years.
Discussion
Exploration of Smartphone consumer behaviour by finding the determents of Smartphone
purchase. The result shows that product performance, branding, product design along with the
price have the influence on people’s buying decision process, which booms to the works that
whether the product can satisfy people’s needs, branding, appearance, and price can affect
consumer behaviour. According to consumer behaviour models, whether the product is able to
satisfy people needs is one of the arguments that influence people’s buying decision. In the case
of Smartphone, the product performance is considered as the influence that defines whether
one’s major needs could be satisfied; literature suggests that brand name has the effect on certain
level to the understanding of product quality, therefore in this study; brand image of a
Smartphone vendor affects people’s consumption decision. However, the influence is rather
small when comparing with other factors Appearance/Design influences consumers’ behaviour
easily. Here, appearance is the determent that influences buying choice the most according to
discriminant analysis, and is defined as the material se lection of a Smartphone; price has been
pointed out that it can be treated as the signal that represents product quality. In the case of
Smartphone, the result suggests that the influence of representing product quality is relatively
weak, and that people consider that price serves as aconversepointer in terms of buying decision.
Price is namely the price of a Smartphone and the price of additional purchase in the study.
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The main contributions of the thesis is to deconstruct existing theories of consumer behaviour,
proposing an alternative clarification of consumer behaviour in Smartphone purchase in which
major factors that affect Smartphone buying were found through analysis. Findings are able to
aid vendors in the marketing of Smartphone.
The factors in this study were defined strictly based on the literature. Hence, it is difficult to
cover the whole scope from a certain dimension. For example, in this study branding is defined
as the experience and the frequency of advertising that consumers perceived. Yet, the importance
of whether one can shape his/her ideal self- image through brand image was ignored. This kind of
questions could change the result enormously. On the other hand, the number of samples
required to directly represent the distribution may be prohibitively large. As unintentional
sampling was applied in this study and the sample size is small, the generalities about the total
population cannot be made scientifically. In fact, most of the respondents of the sample are
belong to the younggeneration. Since external influences, such as culture, social, and personal
factors, affect consumer behaviour, the result is not unbiased. Also, this study is based on a onetime survey. A longitudinal study to show the measurement of motivation for better reliability is
recommended.
Conclusion
In our survey, we come to know that there is no relationship between age group and the brand of
Smartphone. Also there was no relationship between income of the consumer and price of
Smartphone. It is evident by the data observed. Moreover companies are targeting younger
consumer as purchasing power has increased and user are well aware of the benefit of
Smartphone. Users are also exploring all mode of payments, hence having greater flexibility in
terms of payment, however maximum number of consumer still prefer to purchase from the
company outlet.
On the other hand, multi-brand purchase is on second position. In our finding we also came to
know that maximum numbers of users are of Samsung Smartphone, Apple is on second position,
and Nokia is on 3rd position in terms of Smartphone brand used by respondents. Blackberry and
Sony comes on 4th and 5th position respectively.
Price is very important issue while doing a purchase of Smartphone. Status symbol is also
attached with a Smartphone and hence more exclusive the mobile more status symbol it has.
The Smartphone purchase decision is also influenced by the external factors. Professional advice
is the most important followed by family and friends.
Among various feature of Smartphone, touch screen, user friendly, battery life are most favored
features whereas multi-sim and keypad were least favored feature in Smartphone.
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