Consumer Intentions to Purchase Smartphones, Research Paper Example

Aim of the study

The reason for this research is to explore how consumers use cell phones and the essential attributes of cellphones that affect their usage. To achieve the goals of the investigation, a sample of 200 users will be taken using the random sample plan. The randomly selected users will be eligible for new and more advanced phones with two-year plans. The programs will be spread equally among four variants: iPhone with Verizon plan, iPhone with MetroPCS plan, Android with Verizon Plan, and Android with MetroPCS plan. Both primary and secondary data will be investigated. The different variables that will be analyzed in the research are social grouping, items included, which involves a set number of features and applications whose relevance to the user will be studied, and time spent online.

Introduction

The improvement of cell phones and technological advancement have been essential in the dynamic changes of consumers’ needs and inclinations. Among these advancements, cell phone gadgets have had one of the quickest family appropriation rates of any innovation on the planet’s cutting-edge history. These days, portable handsets have turned into an essential piece of everyday human life, and personal correspondence over the globe.

In the current exceptionally focused promotion, manufacturers and Telecommunication companies offering data plans battle to locate extra aggressive edge and separating factors to influence customers to choose their brand over those of their competitors. There are different studies directed towards the improvements that these companies make towards controlling the purchase of cell phones. The growth of mobile communication was majorly recorded in 2002 around the globe. The growth rate of the population was 2.69% per year with 71% of American households owning at least one cell phone.

Problem Statement

Mohd Azam Osman (2012), concurred that cellphone technology has dramatically influenced the behaviors of people, especially the youth. Former surveys that have been carried out have proved to be insufficient since they do not have the comprehension on the practices and preferences of consumers. New cell phone models are launched into the international market now and then to gain the competitive upper hand in the industry. The evolution and advancement of the cellphone market have affected the consumers, especially the youth concerning the uses and choices regarding their decisions on smartphone purchases. In this study, we conducted a poll using a simple random sample of 200 people. The classification was according to the brand of the phone, and the data plan.

Research Objectives

The primary objective of this research is to determine the significant effect of social grouping by looking at the cell phone pattern of usage and the time of usage, determine the product features and available services and applications of the device, items included and brand name on demand for smartphones among a random group of users.

Research Hypothesis

H1: Social groups have a significant effect on consumers’ cellphone buying decisions.

H2: Product features have a significant effect on consumers’ cellphone buying decisions.

H3: The brand name has a significant effect on consumers’ cellphone buying decisions.

H4: The customer satisfaction with the quality of customer care based on product reviews has an effect on the customer’s cellphone buying decisions.

Literature Review

Verizon and MetroPCS are among the top telecommunication companies in the US. They were among the first groups to introduce mobile telephony in the country. By 2003, these companies had rolled out 3G data plans which caught the attention of many users. By 2014, the companies had launched the 4G data plans.

Purchasing Intention

Buy expectation is the earlier wanting to purchase items later on. As indicated by Blackwell et al. (2001), whatever every now and again crosses a buyer’s brain implies his or her expectation to buy the specific thing. Scientists demand that shoppers take after a methodology of first perceiving the item, trailed by discovering data about it, assessment, obtaining lastly criticism. In this way, these buyers purchase a thing after earlier research on it to guarantee that they buy the perfect item that will address their issues.

There are many brands of cell phones from which shoppers can pick, to fulfill their wants and needs. Along these lines, diverse clients have distinctive wants. In this examination, the brands utilized are iPhone and Android gadgets with two variations of information gets ready for every single one of them. Consequently, the conduct of clients to purchase cell phones relies upon properties like brand name, manufacture quality, and cost (Leo et al., 2005). Accordingly, it is basic to break down the variables that prompt customers settling on choices with respect to cell phone buying. This exploration tries to inspect the factors, for example, item includes, mark name, and social gathering and their consequences for buyers’ goals to buy cell phones.

Product Features

As of now, the cell phones in the market are retching with high innovation. In this manner, the decision of various individuals will shift contingent upon the diverse cell phone includes that can meet their differing needs. As per Oulasvirta et al. (2011), nowadays cell phones are being constructed and configured with wireless connectivity, pre-installed applications like web browsers, a file management system, high definition displays as well as extensive storage capacities. According to a previous study, there are five essential characteristics of smartphones that consumers prefer like camera, internet browsing capabilities and speeds, wireless connectivity, screen resolution, and voice-activated commands (Lingg et al., 2006).

Product features are classified as the characteristics of an item that can satisfy the needs and preferences of a consumer through ownership and operation of the commodity (Leo et al., 2005). Hardware is the visible and tangible surface of a product such as the body of a cellphone as well as its design and size. On the other hand, software is the programmable feature of the phone which includes installed applications, the operating system, and storage. The examples of operating platforms include iOS and Android. Based on research carried out by Russell (2012), users in America prefer 41%, followed by 35% iOS while the others preferred the less advanced operating systems. The study also indicated that 31% of consumers prefer considering software over hardware at 17%.

Brand Name

Companies always look for ways to set them apart in the market by manufacturing smartphones with unique features like crisp displays, fast and efficient chipsets and bigger, more effective storage memories. These companies improve the technology used on their phones that is not yet accessible to consumers. They ensure that the new features and advanced technology is appealing to the users and satisfies their needs and preferences (Oulasvirta et al., 2011). A brand name is an identity through which a representation of the manufacturing organization is represented.

Nowadays, smartphone users prefer the ones with unique features clear graphical user interface and fast, responsive touchscreens. For example, brands like Samsung, iPhone, Nokia, LG, Motorola, and Xiaomi are the most commonly purchased cell phones. In this study, Samsung and Xiaomi were used as the Android devices while iPhone smartphones were used for iOS. Based on a survey by ChangeWave Research (2010), Apple smartphones have a high number of users due to their esteemed customer treatment and the security features that accompany their phones. The research also showed that some of the consumers purchased iPhones due to the social class associated with owning the brand.

Social Grouping

According to Lingg et al. (2006), social grouping refers to the change of attitude, thoughts, and behavior due to influence by someone else. Social grouping theory relies on the records about people’s organized cognitive psychology that is place carefully in a dataset. This control happens due to relating with others and considering their thoughts and ideas regarding purchasing smartphones. This power can come from friends, family members, and the different media platforms. Examples of these platforms are Facebook, Twitter, Snapchat, and others. People create social network profiles on these platforms and share their thoughts on different matters like smartphones. The influential social media users can influence the mindset and preferences of other others pertaining the purchase of mobile phones by sharing information about the smartphones.

The actions of consumers are influenced by their peers and other people they interact with (Oulasvirta et al., 2011). The users seek information, advice, and different experiences with different smartphones from people they feel or consider technology savvy. According to research by ChangeWave Research (2010), 40% of the respondents preferred buying smartphones depending on the trend in the community.

Theoretical Framework

A theoretical framework is a foundation that is designed to describe the association and relationship among the variables that are relevant to the research.

Data Analysis

In this study, we will use the quantitative data Analysis. The quantitative data will be gathered from the secondary sources of information. Secondary data in the definition is the type of data whose purpose is not in your current project but is, in fact, relevant to shaping the nature of your project. The secondary data will be extracted from reports, manuals, and distinctive diaries, distributions for evaluating existing study, internet, books, and records. The critical motivation behind the Descriptive analysis is a portrayal of the situation as it exists. The outline will be received as it would be useful in demonstrating patterns in dispositions and practices, as well as empower assumption of the findings of the research study to be completed. This plan is deemed as fitting for this review since it spares time; costs and the size of value data yielded are legitimate.

From our research, the three Nuisance variables that may affect how outcome are: fatigue, inspiration, and contentment. A nuisance variable is an undesirable variable that is regularly related to the theorized independent variable inside a test contemplate. It may be normal for the members under investigation or any unintended effect on an exploratory control. A nuisance variable causes more inconstancy in the distribution of a sample’s scores, and influences every one of the groups measured within a specified specimen.

Findings

From the collected data, it was evident that 20% of the respondents purchased smartphones whose price range was below $250, while 39% of the population preferred to buy for a price between $251- 500$. 27% were willing to buy phones between $501 – 900$, and the remaining 14% would be likely to purchase smartphones for over $900.

Using Chi-Square Test

After collection of data, the Chi-square test for independence will be used to determine if there exists a significant relationship between two categorical variables. From the examination of the relationship between independent and dependent variables, the following hypotheses were accepted:

Hypothesis 1: Product features have a significant effect on consumers’ cellphone buying decisions. There was a substantial positive correlation between product features of the smartphones and purchasing intentions of the consumers.

Hypothesis 2: The Brand name has a significant effect on consumers’ cellphone buying decisions. There was a tremendous definite connection between the image name of the cell phones and acquiring expectations of the purchasers.

Speculation 3: Social gathering significantly affects customers’ cellphone purchasing choices. There was an immense positive relationship between social impact and buying expectations of the customers.

Proposal and Conclusion

The criticalness of this examination was to decide the qualities that impact the want and expectations of buying cell phones. The survey inspected the connection between item includes, mark name, and social gathering and the arrangement to purchase a cell phone. Information was gathered from 200 arbitrarily chosen individuals in the US and examined. Three theories were utilized to look at the connection between the factors that were autonomous; item includes, mark name, social impact and the aims to purchase a cell phone. The suppositions in this exploration are that the analyst utilized the irregular inspecting technique to gather information. In this manner, the report was autonomous and fair. All in all, the examination helps us to grasp the significance of item includes, mark name, and social gathering on the intentions to buy smartphones by users among people. According to the expectation inferred the product treatment and the analyzed variables caused the different purchasing behaviors among the population studied.

References

Blackwell, R., Miniard, P., & Engel, J. (2001). Consumer Behaviour (9th ed.). Ohio: South-Western.

ChangeWave Research, Sept. 23, 2010, http://www.investorplace.com/19044/another-major- leap for-google-android-os-among-consumers/

Leo, C., Bennett, R., & Hartel, C. E. (2005). Cross-Cultural Differences in Consumer Decision-Making Styles. Cross-Cultural Management, 12(3), 32-61

Ling C., Hwang W. and Salvendy G. (2006). Diversified users’ satisfaction with advanced mobile phone features, Universal Access in the Information Society, 5(2), 239-249.

Mohd Azam Osman., Abdullah Zawawi Talib., Zainal Abidin Samusi., Tan Shiang Yen., & Abdullah Sani Alwi. (2012). A study of the trend of smartphone and its usage behavior in    Malaysia. International Journal of New Computer Architectures and Their Application          (UNCAA), 2(1), 274-285.

Oulasvirta, A., Wahlstrom, M. and Ericsson K. A. (2011). What does it mean to be good at using a mobile device? An investigation of three levels of experience and skill. International                     Journal of Human-Computer Studies, 69, 155-169.

Russell, J., (2012). Android dominates Southeast Asia’s smartphone market: Report [Online].  Available from http://thenextweb.com/asia/2012/09/04/android-southeast-asia-ericsson-report/