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Criteria Of Consumer Selecting Mobile Phones Marketing Essay

Although mobile phones became a basic a part of personal communication across the world throughout the past 10years, consumer research has devoted very little specific attention to motives and choice underlying the mobile phones for call method. There are numerous complicated factors that require to be taken under consideration once exploring decision of buying mobile phone for call method, as well as each macro and microeconomic conditions that have an effect on the evolution of mobile phone market normally and individual consumer’s motives and decision making particularly. Moreover, it’s necessary to differentiate to tell apart between buying behavior pertaining to the selection between different mobile phone models and types modification and alter aspects pertaining to reasons that affect change. Because the mobile phone market may be a typical technology push driven market wherever product are created prior the popularity of existing recognized consumer desires (e.g., Gerstheimer and Lupp, 2004),mobile phone development is predicated on consumers’ attainable future needs and therefore corporations that best hunch the technologies and services of future are going to be the leaders within the discipline (for discussion of technology push see, e.g., Brown, 1991; Hamel and Prahalad, 1991; Kumar,1997; Nagel, 2003).

1.2. Problem statement

The purpose of this research is to analyzed the criteria of consumer in selecting their mobile phone. In this research we are analyzing the functions, brands preferred by consumer and what way to update themselves on the latest innovation in cell phones.

An evolving physique of ability appropriate mobile phone attitudes and behaviour has been arising in the business literature. One accepted accommodation active through the analysis has been to analyse factors affecting customer best of adaptable ¼ˆSafiekMokhlis et al. 205¼‰

A study by Liu (2002) within the Philippines showed that decisions between movable brands were laid low with new technology options like SMS-options and memory capability, quite size. This finding would possibly as results of the actual fact that everyone competitive brands have quite similar sized phones that are sufficiently little. The investigator suggests that the trend can truly be not towards smaller size of phones however towards phones with higher capability and bigger screen.

Advanced mobile technology continues to form skilled environments. Good cell phones cut back the necessity of users to stay near a wired system infrastructure and permit for task performance in many alternative contexts. Among the implications are changes in technology needs, like the necessity to limit weight and size of the devices. Within the current paper, we tend to concentrate on the factors that users notice necessary in mobile devices. Four factors were found to be considerably connected with overall user analysis, particularly practicality, movability, performance, and usefulness. (Judith, 2007)

The development of mobile communication technology (e.g. wireless web, the movable, MP3 player, GPS navigation system) has been an extended journey of innovation that is consistently evolving and change as results of consumers’ dynamical wants and preferences (Coghill, 2001, p. 28). The device has had one amongst the quickest house adoption rates of any technology within the world’s fashionable history (Comer and Wikle, 2008). At the tip of 2010, movable subscriptions had reached 5 billion worldwide with subscriptions from developing countries out numbering that of the developed countries (Kelly, 2009; Rebello, 2010). With the increasing of omnipresence of movable possession, the device is not any longer perceived as a luxury item or a standing image however rather a necessity in people’s way of life (Walsh and White, 2006). To satisfy users’ info wants, innovative options and applications ar unceasingly being more to mobile phones to create them perform more new functions. Consequently, movable that is basically a communication device has undergone various transformations, creating its functionalities transcending the normal speech between 2 people (Kushchu, 2007; Hakoama and Hakoyama, 2011).

1.3. Objectives

Mobile phone markets are the mainly unstable market environments today appropriate to increased competition and change. Therefore, it is of rising concern to look at consumer purchasing choice method and emit light on the factors that after all determine consumer choices between different mobile phone brands. On this basis, this article deals among consumers’ choice criterion in mobile phone markets by studying factors so as to manipulate intention to obtain new mobile phones on one hand and factors that manipulate on mobile phone vary on the other. With the use ofa sequence of hub group interviews (Study 1) with 79 graduate students followed by a assessment (Study 2) of 196 respondents, it was create that even though the option of a mobile phone is a one-sided choice situation, there are some universal factors that appear to direct the choices. The two studies demonstrate that while mechanical problems are the essential reason to change mobile phone amongst students; price, brand, interface, and more.

1.4. Research question

What are the functions in cell phones that consumers are attracted to?

How do they choose their brand?

How do consumers keep themselves updated on the latest innovation in cell phones (function)?

1.5. Significance

There are various brands of hand phones in the market. People may confuse which mobile phone is suitable for them. Hence, this study to show how they choice the brand of the mobile phone.

1.6. Research matrix

Research Question

Data

Sources (Who)

What are the functions in cell phones that consumers are attracted to?

Survey

Segi students

How do they choose their brand?

Survey

Segi students

How do consumers keep themselves updated on the latest innovation in cell phones (function)?

Survey

Segi students

2. Literature review

2.1. Introduction

The term ‘smartphone’ has commonly discussed among young adult especially students from higher learning institutional. Young adult eventually used their phone to communicate with people, alarming themselves from few reminders, direct ways, downloading songs, games, texting messages and more. Several industries have hurriedly espoused mobile devices, such as personal digital assistants (PDAs) which have industry by having a new buzzword, “Smartphone,” illustrate this popular PDA-phone amalgamation with numerous capabilities (Park and Chen, 2007). Smartphone are complex in nature and usually there is no single factor or simple reason can be determined. The four independent variable under investigation in this study include product features, brand name, price and social influences. The main objective of this study is to develop a literature review of criteria of consumer in selecting mobile phones.

2.2. Feature

A feature is an attribute of a product that to meet with the satisfaction level of consumers’ needs and wants through the owning of the product, usage, and utilization for a product (Kotler, Philip, Armstrong, and Gary, 2007). The difference of feature will bring a diverse level of satisfaction such as mobile phones are equipped with various features that enable communication, short message service (SMS), MP3 (MPEG-1 Audio Layer 3) player, games, internet, videos, wireless connectivity, a built-in Web browser, application installation, full programmability, a file management system, multimedia presentation and capture, high-resolution displays, several gigabytes of storage and location and movement sensors.

2.3. Price

Price will always be the key concern of consumers’ before making any purchasing decision. The price is positively affected behavioural because price establishes image of the brand in the eyes of the consumers (Aaker, 1991). In a consumer’s heuristics, a high (low) price connotes a high (low) quality and image. There are two types of products by price: high-priced brands are brands on the market whose image is seen as the key factor. Consumers of these brands often purchase them mainly for image and are willing pay a premium price for their perceived high quality and status, which make them price-inelastic (Bolton, 1989). Low-priced brands tend to be purchased for utilitarian value, with the consumer relying on the perceived value for price. Consumers tend to interpret higher prices with high quality, and low prices are perceived value as an indication of inferior quality (Rao and Monroe, 1988). Then, most of the consumers will regard high price goods and services equals to high quality. Thus, if the price level is at peak but quality of features are comply with the consumers’ expectation; they might perceived as fair and are more willing to pay a at a higher price to owns a better quality goods or service (Monroe, 2003). Recently, most of the consumers are pursuing a high quality services, though service is an important factor, yet the unwillingness of consumers to pay for obtaining a high level of service by satisfactions an extra amount can still be seen (Tae, 2001).

2.4. Social influences

Social influences means one person causes in another to make a change on his or her feelings, attitudes, thoughts and behaviour, intentionally or intentionally (Rashotte, 2007). This includes media influences, parents and peers (Nelson and Mcleod, 2005). Generally, peers are the influences, followed by media and parents at a research. Social influences plays a vital role when the consumer are making decision on purchasing (Mourali, Laroche and Pons, 2007). Both male and female often seek for advise and opinion of their friends based on fashion related items and tend to purchase the same clothes that their friend wear( Nelson and Mcleod, 2005). Today, smartphones using application like Twitter, Facebook and etc to communicate each other. This shows that people will influence by their friends when they are making decision on buying a product.

2.5. Brand

Recent changing global environment, competitive advantage, profitable ways and efficiencies are the most important gears that companies are force to seek for in order to differentiate among them in business world (Mei, Dean and White,1991). Brand name are valuable assets that help correspond quality and suggest precise knowledge structures which related to the brand (Srinivasan and Till, 2002). Researchers said brand name as an important tool in improving a product’s value (Dodds, Monroe and Grewal, 1991). According to American marketing association, defined the brand as “name, term, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition” (Khasawneh and Hasouneh, 2010). Brand name is to provide information on the quality of a product. The value of a brand name adds to the product is named as brand equity (Farquhar, 1989). More and more companies realized that one of their most priceless assets is the brand names that related with their products or services (Cornelis, 2010). According to Khasawneh and Hasouneh (2010), the product’s brand name will influence consumers’ evaluation and subsequently, affect the buying decision.

2.6. Conclusion

In the nutshell, telecommunication is the key of development, and the best choice is mobile-phone, that is cheap and doesn’t need to be literate to use it. Setting up mobile-phone infrastructure is cheaper than land line, and then it is easier to use it in low-income countries. Also mobil-phone users in developed countries increase dramatically. This is great opportunity for mobile-phone factories to catch the higher profits. To meet with the satisfaction level of consumers’ needs and wants through the owning of the product, usage, and utilization for a product. Several factors are important to concern about for producing mobile-phone. Price, size, functions, brands and design are the important factors in mobile-phone markets to find more customers. To reach to higher number of customers should spend in research and development in competitive market.

3.1 Introduction

This chapter describes the case study’s research methodology; it is included respondents of the study, research instrument, research procedure and analyses of data. In this case study, quantitative method has been used.

3.2 Respondents of the study

The respondents are made up of 15 students who study in SEGI University. Any university student from SEGI can participate in this research. Students are randomly chosen from different age, sex and course. This study is randomly choose from those who readily available and volunteer to participate in the research. In this study 10 male and 5 females have been participate in this research. The range of age of respondents is 19 to 23 years old. There 3 students for 19 years old, 4 student for 20 years old, 6 students for 21 years old and 2 students for 23 years old.

3.3 Research instrument

Quantitative method has been used to conduct this research. Quantitative method is chosen because it has high reliability as it produces statistical data for research which can be analyzed in many types of tests. By using questionnaire, data can be collected by using different types of questions that can determine respondent’s opinion. This method is good as it is an unbiased approach where respondents only answer the questionnaire without interacting and emotional effect with the researcher like qualitative method.

The questionnaire consist of three sections which are survey on cell phone that consumer attracted to, how consumer choose cell phone’s brand and how do consumer keep themselves updated on the latest innovation in cell phone. Every section has 15 questions which mean there are total of 45 questions for three sections. 22 of Yes/No type questions, 18 of multiple choices questions, 4 of scale questions and 1 subjective question.

3.4 Research procedures

A set of questionnaire is drafted and reviewed by lecturer. After verified from the lectures, questionnaire is then prepared and ministered to students. Survey form is collected on the spot to make sure student’s feedback is received for analyze process. The data is analyzed and result is obtained.

3.5 Analyses of data

The data will be present in chapter 4.

4.1 Data presentation and analysis

Category

Number of question

Function

13

Design

11

Price

1

Brand

20

Total

45

Function = 100% = 28.89%

Design = 100% = 24.44%

Price = = 2.222%

Brand = Ã- 100% = 44.44%

4.2 Discussion

After the questionnaire session is carried out, there are statistics that conclude the criteria which influence the consumer choice in purchasing mobile phones. In the questionnaire, there are 13 questions about the function of the mobile phones, 11 questions in design criteria, 1 question in pricing of the phone, 20 questions in branding, and total is 45 questions. In term of percentage, the function is 28.89% of the total question, design is 24.44%, the price is 2.222%, and the brand is 44.44%.

4.3 Data presentation and analysis

As for the results, mostly people prefer the colour screen and in term of displaying type is mostly people prefer more on Retina which used in Apple Iphone. Mostly people prefer a back camera which has more than 5 megapixels and above2 megapixels for the front camera. In term for the speakers, 4 speakers is mostly recommended by people and mostly people wanted Bluetooth and wireless connection as a compulsory features in the phone. For the size of the phone, mostly people prefer a moderate size and for the screen is 4 inch is the preferable for the consumer. A number of people prefer software like Siri which can operate their phones thru voice command and mostly people prefer touchscreen phones. As for now, mostly people are still using 3g phones and usually use their phone for sms. Mostly people use WAP connection to check movie availability in cinema and flash light is preferable. According to the students, Iphone is very popular to them. Mostly people prefer a price range between 1k to 2K and mostly people is satisfy the brand of mobile phone they are using now. They wanted their phone as user friendly as possible. According to the student, Samsung is very well-known and high durability among all the brands, but in terms of service centre, the Iphone is the best among others. Mostly people are influence by the design of the phone according to the students. Mostly people are very comfortable with the current phone they are using now and mostly people are easily influence by media of launching new product. According to the students, they are more prefer in using IOS as their operating system. As for the user now, nokia having the best signal accuracy compared to other brands. According to the students, advertisement plays a very important role and mostly people now get to know new product by web browsing. As for the result for the research question 3, mostly people are care about the latest innovation of the mobile phones and they get updated thru websites as people are not really getting the information thru newspaper and normally people get info thru flyer according to the research. According to the students, using email to promote latest mobile phones is workable as doing promotions for the new cell phones and they suggested that advertisement of the particular brand should be attractive. Mostly students will purchase games from the particular brand apps store. Mostly student agreed that telco plays a very important role in promoting new phones and mostly student prefer digi. Mostly students agreed that professional models, popular ambassador and even friends influences the choice of consumer in purchasing mobile phones.

4.4 Conclusion

According to research, mostly people go for brand and pricing is not a problem to them. Attractive advertisement, professional model, popular ambassador and even friends can influence the choice of consumer in purchasing mobile phone. Besides branding and advertisement, attractive features and software can also influence the choice of consumer in purchasing mobile phone as people now can enjoy listening music, gaming, web browsing and even use their phone as PDA(personal digital assistant). In conclusion, advertisement can increase a certain product reputation and hence students are get attracted and buy the mobile phone.

5.1 Summary and conclusion

In the end of this research, handphone user is increasing day to day. They are a certain criteria that influence choice of consumer purchasing handphone. Criteria which include brands, features, design and pricing were affect people thinking and overview of the product. In this case, questionnaire section is carrying out to determine the criteria among the segi student. The results of the questionnaire show that students are more on the brand and design of the product than the pricing. They are willing to pay more to fulfill their satisfactory. Besides branding and design, advertisement and promotion can increase that particular brand reputation which would affect the criteria of consumer on purchasing mobile phone.

5.2 Implication

This study was carried out to ascertain selection criteria among students in Segi. This study improves consciousness of consumer behavior and recommends that consumers make decisions on the base of their evaluation of product characteristics. Results of the study displayed that 4 factors characterize mobile phone choice features, brand, price, and social influence. The features are the key for the student selection of mobile phones. In this case, innovation in mobile phone features and design prepares attain on top of the list in consumers’ choice of mobile phones.

Besides that, other factor affecting students’ choice of mobile phones was social influences. People may buy the wrong brand and even products. To solve this problem with the hazards of buying wrong products, consumers prefer on social influences as a risk reliever.

5.3 Recommendation

Besides features, design and social influences, price is also important. Due to this reason, their spending power is completely depending on the amount of money they have and their spending is their 1st priority. Based on this research, there are recommendations are made to manufacturers and marketers of mobile phones:

The promotional plans in a high-risk purchase situation must influence the consumers over personal channels (opinion leaders, word-of-mouth), somewhat than general media.

Mobile phones need extraordinary involvement and information processing, in this case, the promotion regarding new product of the mobile phone models must beyond emphasizing properties to highlighting the features that can attract the users.

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