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Exam thesis

Survey on Factors affectin­g consumer behavior of smartpho­ne user

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ACE Institute of Management, Nepal

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2018

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ANOVA


What is the smartphone brand you are currently using?


Sum of

df

Mean

F

Sig.


Squares

Square





Between

12.312

4

3.078

.471

.757

Groups






Within

679.798

104

6.537



Groups








Total

692.110

108




Table 30: ANOVA table for accessories provided and current brand

Factors Influencing Consumer Behavior of Smartphone Users 48


The following F-test is conducted to analyze if the selection of current brand by the smartphone user is influenced by accessories provided. So this test shows how influential the accessories provided is.


From the table 29, we can see F-value is 0.471 and p-value is 0.757. Here p-value is greater than significance level of 5%, so there is enough evidence to support that there is no significant relationship between accessories provided and current brand.


Therefore it can be said that there is no or less impact of accessories provided on the choice of current brand of smartphone among the given sampled 109 participants.


4.1.3.17 Performance and Current Brand


H0: There is no significant relationship between performance and current brand


H17: There is significant relationship between performance and current brand


ANOVA

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What is the smartphone brand you are currently using?


Sum of

df

Mean

F

Sig.


Squares

Square





Between

17.511

4

4.378

.675

.611

Groups






Within

674.599

104

6.487



Groups








Total

692.110

108




Table 31: ANOVA table for performance and current brand


The following F-test is conducted to analyze if the selection of current brand by the smartphone user is influenced by performance. So this test shows how influential the performance is.

Factors Influencing Consumer Behavior of Smartphone Users 49


From the table 31, we can see F-value is 0.675 and p-value is 0.611. Here p-value is greater than significance level of 5%, so there is enough evidence to support that there is no significant relationship between performance and current brand.


Therefore it can be said that there is no or less impact of performance on the choice of current brand of smartphone among the given sampled 109 participants.


4.1.3.18 Correlation Analysis among Factors Influencing Purchase Decision of Smartphone


Users


Correlations of Satisfaction with Various Factors



Brand

Peer

Product

Service

Looks

Accessories



Price

and

Performance


Image

Influence

Features

Quality

Provided



Design










Price

1

.185

.376

.124

.109

.172

.139

.209

Brand


1

.017

.219

.321

.357

.201

.258

Image










Peer



1

.165

.262

.216

.147

.203

Influence











Product




1

.185

.350

.181

.496

Features












Service





1

.363

.279

.267

Quality













Looks and






1

.250

.513

Design














Accessories







1

.133

Provided















Performance








1










Table 32: Correlation Analysis of Factors Influencing Purchase Decision

Factors Influencing Consumer Behavior of Smartphone Users 50


The above table shows the correlation among various variables. From the table we can see in general that, every variable are positively correlated to each other.


From table it can be seen that product feature and looks and design is mildly correlated with performance. However other factors are seen to have low correlation among each other.


From this we can interpret that there is less dependency of variables among each other in terms of satisfaction i.e. if 3an individual is satisfied with price, there is chance that he/she may not be equally satisfied with other factors.


4.1.3.19 Analysis of Income Level and Satisfaction from Pricing


H0: There is no significant relationship between income level and satisfaction from pricing


H18: There is significant relationship between income level and satisfaction from pricing


Satisfaction with pricing


Income Level

N

Mean

Std. Deviation

10000-25000

16

3.56

1.315





25000-40000

32

3.88

.942





40000-55000

26

3.77

.908





55000 and above

35

3.77

.843





Table 33: Descriptive analysis of income level and satisfaction from pricing


The above table shows the response of 109 respondents in regards to satisfaction from pricing. In the questionnaire the respondents were asked to give their response in regards to satisfaction level from pricing of smartphone with 1 being highly dissatisfied and 5 being highly satisfied.


In the table mean value of the response is shown among different income groups. It shows that income group of 10000-25000 has mean value of 3.56 which shows that they are satisfied with pricing. Similarly other income group also has shown satisfaction in regards to pricing. So, to test the given assumption, F-test is done.


ANOVA


Satisfaction


Sum of

df

Mean

F

Sig.


Squares

Square





Between

1.042

3

.347

.371

.774

Groups






Within

98.224

105

.935



Groups








Total

99.266

108




Table 34: ANOVA Table for income level and satisfaction from pricing


Here, from the table F-value is 0.371 and p-value is 0.774. Since p-value is greater than significance level of 0.05, we can conclude that there is no significant relationship between income group and satisfaction with pricing. Hence, it can be said that there is no difference in satisfaction with pricing in regards to income group.

Factors Influencing Consumer Behavior of Smartphone Users 52


4.2 Findings and Result


Alternate

Statement

Remarks

Hypothesis






H1

There is significant relationship between age group and current

TRUE

brand of smartphone






H2

There is significant relationship between income group and

TRUE

current brand of smartphone






H3

There is significant relationship between willingness to spend and

TRUE

age






H4

There is significant relationship between willingness to spend and

TRUE

income level






H5

There is significant relationship between age and preferred brand

FALSE




H6

There is significant relationship between income and preferred

FALSE

brand






H7

There is significant relationship between gender and preferred

FALSE

brand






H8

There is significant relationship between income level and price

FALSE




H8

There is significant relationship between income level and brand

FALSE

image






H8

There is significant relationship between income level and peer

FALSE

influence






H8

There is significant relationship between income level and

TRUE

product features






H8

There is significant relationship between income level and service

FALSE

quality






H8

There is significant relationship between income level and looks

TRUE

and design






H8

There is significant relationship between income level and

FALSE

accessories provided






H8

There is significant relationship between income level and

TRUE

performance






H9

There is significant relationship between gender and price

FALSE




H9

There is significant relationship between gender and brand image

FALSE








Factors Influencing Consumer Behavior of Smartphone Users 53


H9


There is significant relationship between gender and peer


TRUE








influence



















H9


There is significant relationship between gender and product


FALSE




features



















H9


There is significant relationship between gender and service


FALSE




quality



















H9


There is significant relationship between gender and looks and


FALSE




design




















H9


There is

significant relationship between gender and accessories


FALSE




provided




















H9


There is

significant relationship between gender and performance


FALSE










H10


There is significant relationship between price and current brand


FALSE










H11


There is significant relationship between brand image and current


TRUE




brand



















H12


There is significant relationship between peer influence and


FALSE




current brand

















H13


There is significant relationship between product features and


FALSE




current brand

















H14


There is significant relationship between service quality and


FALSE




current brand

















H15


There is significant relationship between design and current brand


FALSE










H16


There is significant relationship between accessories provided


FALSE




and current brand

















H17


There is significant relationship between performance and current


FALSE




brand



















H18


There is significant relationship between income level and


FALSE




satisfaction from pricing

















Factors Influencing Consumer Behavior of Smartphone Users 54


Chapter 5: Summary, Conclusion and Recommendation


5.1 Summary and Conclusion


Smartphone has not only been the want but also a need in this modern era (Nagarkoti, 2009). An average person spending at least 2 hours of the day for using smartphone prove that how smartphones have played a vital role in our daily life. Due to the multiple uses of smartphones, there has been a high demand of smartphones. It has been a part of life in Kathmandu Valley.

Companies have been spending millions in producing smartphones. From R&D to advertisement to after sales service, mobile phones have taken an access height in the market. From releasing a promo to introduction in the market, people are crazy about upcoming smartphones in the market. There has been a paradigm shift of smartphone, say it from design to product features over the past decades.

The Moore’s law seems to become true in context to smartphones too, as the years passes by the performance of smartphones is increasing while its Intel chips size is decreasing.


This study was conducted among the people in Kathmandu. Sample of 109 respondents were taken for the purpose of study which included 56% male and 44% male. The sample was further divided on the basis of income group, occupation and age group. Various factors were considered for the purpose of studying the consumer behavior of smartphone users. Apple was the most preferred brand followed by Samsung and Huawei.


The study showed that current brand of smartphone varies as per age and income group.

Similarly willingness to spend on a new smartphone varies according to age and income level.

Factors Influencing Consumer Behavior of Smartphone Users 55


Though there is significant difference between age group and income and current brand, however there is no significant impact of age and income on preferred brand of smartphone.


Various factors such as price, brand image, etc. were studied to understand the consumer behavior of smartphone user. The study highlighted that on the basis of income level, difference was found among respondents when they considered the variables/factors like product features, looks and design and performance while making the purchase of smartphone. However there was no significant relationship between income level and other variables.


Similar study was done on the basis of gender. It was found that there was difference between male and female when they considered peer influence while making a purchase difference. On other factors they were independent.


Further statistical analysis was done to know if attitudes of respondents towards these mentioned variables affected the respondent use of current brand of smartphone. On the study it revealed that brand image had significant impact on respondent’s current brand of smartphone. Therefore, the difference in the attitudes of respondents towards brand image has significant impact towards consumer current choice of smartphone.

5.2 Recommendation


Consumer behavior and decision making is influenced by various factors. Similarly in the smartphone industry, consumer’s perception, attitudes, behavior and decision making are affected by these factors which include demographic factors as well as non-demographic factors like price, brand image, peer influence etc. So, it is important for the smartphone dealers to consider these factors when making strategies.

They need to understand how each factor impact

Factors Influencing Consumer Behavior of Smartphone Users 56


on consumers’ perception towards particular smartphone brand thus affect their decision making and purchase behavior.


A recommendation for future research in this field is to conduct the study with a larger sample as larger sample will help in analyzing the consumer behavior more accurately. Also, it would be beneficial to conduct this study over a period of time, with a longitudinal time horizon, thus discovering trends in attitudes and behaviors. Finally, consumer attitude could be better understood if other factors which are driving consumer in purchasing a smartphone are taken into consideration.

Factors Influencing Consumer Behavior of Smartphone Users 57


References


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Agrawal, R. (2013, Septmeber 2). Why are local brands like Micromax killing it in India’s smartphone market? India.


Amonkar, R. (2016). Customer Satisfaction Towards After Sales Service: A Case Study Analysis. International Journal of Science and Research, 1520-1524.


BURNETT, J. (n.d.). Understanding buyer behavior. saylor.org.


Chand, S. (n.d.). Consumer Behaviour: Meaning/Definition and Nature of Consumer Behaviour.


Retrieved from Your Article Library:


meaningdefinition-and-nature-of-consumer-behaviour/32301


Coulter, R. H., & Zaltman, G. (1994). Using the Zaltman Metaphor Elicitation Technique to Understand Brand Images. Association for consumer research.


Ganlari, D., Deka, P. K., & Dutta, C. (2016, May 3). A study on Consumer Buying behavior of smartphones. Journal of Management in Practice, 1, 1-26.


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Factors Influencing Consumer Behavior of Smartphone Users 58


Khanal, R., & Rijal, P. (2016, June 14). ekantipur. Retrieved from The Kathmandu Post:


Koskela, H. (2002). Customer Satisfaction and Loyalty in After Sales Service:Modes of Care in Telecommunications Systems Delivery. Otakaari 4, Espoo, Finland: HUT Industrial Management and Work and Organizational Psychology.


Kotler, P., & Armstrong. (2010).


Kotler, P., & Armstrong, G. M. (2007). Principles of Marketing.


Kotler, P., & Keller, K. L. (2012). Analyzing consumer market. In Marketing management (p.


151). Prentice Hall.


Kuusik, A. (2007). Customer Loyalty.


McLeod, M. R. (2005). Adolescent brand consciousness and product placements: awareness, liking and perceived effects on self and others. International journal of consumer study.


Mohan, A. (2014). CONSUMER BEHAVIOUR TOWARDS SMARTPHONE INDUSTRY IN INDIAN MARKET. Dublin Business School.


Murrow, D. (2016). The Importance of Features and Benefits.


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Appendix


Factors Influencing Consumer Behavior of Smartphone Users


Greetings,


I am pursuing my Masters Degree at Ace Institute of Management, Pokhara University. As a mandatory requirement for my Masters Degree, I am conducting a research on the topic "Factors Influencing Consumer Behavior of Smartphone Users".


This research is for an academic purpose. The answers provided and the results shall not be disclosed and used for any other purposes. I would request you to help me by filling the questionnaire honestly. Your support, time and help are highly appreciated.


Thank you .


Section A


This part consists of basic information about yourself and your behavior as a consumer of


smartphone.


Q1.

Gender






Male

1


Female 2


Q2.

Age












16-25

1

36-45

3


26-35

2

46 and above

4

Q3. Family Main Occupation


Agriculture

1



Service

3

Businessperson

2



Self-employed

4

Other (please specify) _______

5






Q4. Income Level (in Nrs. per month)





10000 – 25000

1



40000 – 55000

3

25000 – 40000

2



55000 and above

4

Q5. How much money would you spend on a new smartphone? (in Nrs.) _____

Factors Influencing Consumer Behavior of Smartphone Users 61


Q6. What brands of smartphone have you used in last 5 years? (you can select more than one option)


Apple


Sony

Samsung


Xiaomi


HTC


Nokia


Huawei


Oneplus


Other (please specify) _____



Q7. What is the smartphone brand you are currently using? (select the major one)

Apple

1

Sony

5

Samsung

2

Xiaomi

6

HTC

3

Nokia

7

Huawei

4

Oneplus

8

Other (please specify) _____

9


Q8. Rank for the following smartphone brands according to your preference. (1 =most preferred and 8= least preferred)


Apple


Sony

Samsung


Xiaomi


HTC


Nokia


Huawei


Oneplus


Q9. Rank the factors that influence you the most while purchasing a smartphone. (1 =most influence and 8= least influence)


Price


Service Quality

Brand Image


Looks and Design


Peer Influence


Accessories Provided


Product Features


Performance


Factors Influencing Consumer Behavior of Smartphone Users 62


Section B


This part consists of your opinions. Please rate honestly for each statement.


Q10. Price


Statements

Highly

Disagree Neutral Agree

Highly

Disagree

Agree



  1. I compare prices of different models and brands of smartphone before buying one


  1. Less expensive smartphones have less features and are inferior in quality and vice versa


Q11. Brand Image



Statements

Highly

Disagree

Neutral

Agree

Highly


Disagree

Agree













1.

Brand Image is an attraction for me to







purchase a smartphone













2.

I will consider the brand image while







purchasing a new smartphone












Q12. Peer Influence














Statements

Highly

Disagree

Neutral

Agree

Highly


Disagree

Agree













1.

I ask my friends, parents or/and relatives







while buying a new smartphone













2.

Their suggestions help me decide while







making a purchase decision













Factors Influencing Consumer Behavior of Smartphone Users 63


Q13. Product Features


Statements

Highly

Disagree Neutral Agree

Highly

Disagree

Agree



  1. I compare the features and specs of smartphones while buying one


  1. I would rather buy an expensive smartphone with more and good features and specs than less expensive smartphones with less and poor features


  1. Product features does affect my buying decision of smartphone


Q14. Service Quality


Statements

Highly

Disagree Neutral Agree

Highly

Disagree

Agree



  1. I compare service features such as warranty, guarantee, free servicing etc while buying a smartphones

  1. I would prefer an expensive smartphone that provides good service quality over less expensive smartphone with inferior service quality


Q15. Others


Statements

Highly

Disagree Neutral Agree

Highly

Disagree

Agree



  1. Looks, shape, design etc. do effect my buying decision regarding smartphone


  1. The accessories provided with smartphone do affect the choice of smartphone I prefer


  1. I do consider the performance of smartphone when making a purchase decision


Factors Influencing Consumer Behavior of Smartphone Users 64


Q16. For the smartphone brand you are currently using, please tick the response for the factors given below:



Statements

Highly

Dissatisfied

Neutral

Satisfied

Highly


Dissatisfied

Satisfied













1.

Pricing













2.

Brand Image













3.

Product Features













4.

Service Quality













5.

Design













6.

Accessories













7.

Performance













Thank you .


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