factors affecting consumer buying behavior towards …€¦ · indian mobile market has witnessed a...

http://www.iaeme.com/JOM/index.asp 465 [email protected]

Journal of Management (JOM)

Volume 5, Issue 4, July – August 2018, pp. 465–480, Article ID: JOM_05_04_050

Available online at

http://www.iaeme.com/JOM/issues.asp?JType=JOM&VType=5&IType=4

Journal Impact Factor (2016): 2.4352 (Calculated by GISI) www.jifactor.com

ISSN Print: 2347-3940 and ISSN Online: 2347-3959

© IAEME Publication

FACTORS AFFECTING CONSUMER BUYING

BEHAVIOR TOWARDS MOBILE PHONES

Vishesh

Research Scholar, University School of Management Studies,

GGS Indraprastha University, Dwarka, New Delhi

Prof Sanjiv Mittal

Professor, University School of Management Studies,

GGS Indraprastha University, Dwarka, New Delhi

Dr Shivani Bali

Associate Professor, Department of Operations,

Lal Bahadur Shastri Institute of Management, Dwarka, New Delhi

ABSTRACT

Mobile phones have become basic element of communication. Indian mobile

market has witnessed a paradigm shift and emerged as the fastest growing market for

mobile handsets globally. Consumers are showing preference towards smartphones

as it is being used for a variety of purposes. The aim of the present study is to

investigate the factors that affect the consumer buying behavior towards mobile

phone. The study was undertaken on 638 mobile phone users of Haryana state of

India. The data was analyzed using factor analysis and multiple regressions. With the

help of factor analysis ten decision factors of consumer buying behavior were

derived. On these ten factors a multiple regression analysis was performed with

perceived satisfaction of consumers in terms of buying decision as a dependent

variable. The findings showed that “Speed & Performance” has the highest positive

impact on the satisfaction followed by “brand & advertising” and “recommendations

& reviews”. The study provided useful insights of the consumer buying behavior

towards mobile phones.

Keywords: consumer buying behavior, smart phones, features of mobile phones,

factors affecting buying behaviour, perceived purchase satisfaction

Cite this Article: Vishesh, Prof Sanjiv Mittal and Dr Shivani Bali, Factors Affecting

Consumer Buying Behavior towards Mobile Phones. Journal of Management, 5(4),

2018, pp. 465–480

http://www.iaeme.com/JOM/issues.asp?JType=JOM&VType=5&IType=4

Factors Affecting Consumer Buying Behavior towards Mobile Phones


1. INTRODUCTION

Globally, with the advent of technology, mobile feature phones converted to smart phones

have become paramount for individuals. A recent report “The Mobile Economy 2017” by

GSMA (Global System Mobile Association) shows that there are 4.8 billion unique

subscribers in 2015 and by 2020 it is supposed to reach 5.7 billion. The penetration rate,

which stands at 63%, will grow to 72% by 2020. The report also identifies 81% growth in

smart phone market globally. This clearly highlights the opportunity for mobile phone

companies globally.

Indian mobile market has witnessed a paradigm shift. India is one of the fastest growing

markets for mobile handsets globally and is expected to reach 13.5% market share by 2019 as

per the joint report of ASSOCHAM & KPMG, 2016. As per the same report the key drivers

of the growth are popularity and availability of mobile handsets and improved availability of

data services in India. Affordable price of the mobile handsets is yet another key driver of

growth. Mobile phone usage has changed drastically. As observed in the market, besides

communications, people are using mobile phones for social networking, gaming, Internet

surfing, entertainment, camera, online shopping, banking and many more. As per the survey

by ASSOCHAM (2011), a lot many Indians are changing their mobile phones in less than

two years. Nearly 39 per cent of the respondent said that they switch to a new phone in less

than two years because of new applications and technology. Consumers are purchasing smart

phones at a notable pace and see them as personal expressions of their lifestyle (Castells et al,

2006). The government is also doing their bit to fuel the demand for mobile phones. It has

started various schemes like Digital India, relaxation in FDI norms, Make in India etc. to

boost the usage, manufacturing and sale of mobile phones. Apart from this, the increasing

GDP per capita has increased the real disposable income. Growing young population and

changing life styles are also the key determinants of growth of mobile phone industry. So it

can be clearly envisaged that smart phones market holds an immense opportunity for

companies.

If companies want to overpower their competition it becomes imperative for them to

understand how consumers decide for smart phone purchase or what is the consumer buying

behavior towards them. The present study aims towards providing insights for consumer

buying behavior towards smart phones so that it can help companies in deciding type of

smartphones to be introduced in the market. This has changed the competition scenario in the

market where once the dominant position of Nokia has been taken by Samsung and the likes.

Hence the market players in the smartphone industry have understood that studying mobile

phone buying behaviour has to become a regular feature as the product life cycle has

shortened. The pace of introduction of new models/features in the existing series or launching

of new series in smartphones has gone up tremendously with almost every brand launching

more than 10 models each year. E.g. Globally Apple, Xiaomi, Samsung or OnePlus range

sees atleast 1-2 new introduction in their existing series with IPhone 8 & X, Xiaomi Mi6,

Samsung S9, S9+ and OnePlus 6 etc. respectively.

The study aims at determining the factors that influence the consumers to buy mobile

phones and their impact on the customer satisfaction with respect to their purchase decision.

According to Senecal et al (2005) marketers should analyze consumer’s mind where they

buy what they buy and why they buy. Why they choose a particular product is a mystery

because there is a lot to find out. Only those who had recently purchased (i.e. in past six

months) a mobile phone in the price range of Rs 10,000 – Rs 20,000 formed part of the study.

It aims to be useful to the mobile set manufacturers as this would give them the insight about

the technological and product related factors that attract the consumers to select the handset

Vishesh, Prof Sanjiv Mittal and Dr Shivani Bali


while purchasing the same. Study done in Ghana by Dziwornu (2013) also highlights the

importance of features and design in influencing consumers purchase decisions.

2. LITERATURE REVIEW

Consumer behaviour is “the decision process and physical activity individuals engage in,

when evaluating, acquiring, using or disposing of goods and services (Loudon & Bita, 1994).

Understanding the consumer behavior concept is very critical for survival and profitability of

firm. Consumers are central to organizational success and the organizations that understand

this are more successful in their business operations (Blackwell, Miniard, & Engel, 2006).

Peers have more influence amongst teenager’s smart phone buyers compared to parental

influence (Lachance et al., 2003). Bristol and Manglegurg (2005) say “Peer influence plays a

key role in an individual’s decision making towards purchase of consumer goods.” Consumer

behavior in context of mobile phones has been studied widely throughout the globe,

indicating the importance of price, technology and brand as the major significant factors for

decision-making. According to Karjaluoto et al (2005) study of factors affecting consumer

choice for mobile phones in Finland found that price, brand and size of the phone are the

main factors in purchase of any new mobile phone. It also highlighted the importance of

innovative services, multimedia, design, outside influence and reliability as significant

factors. Ling et al (2006) surveyed College students to identify their preference for the mobile

phones. The result showed that physical appearance, size and menu of the mobile phone are

the most determinant factors affecting the buying behavior of consumers. Xihao, H., &

Yang, J. (2006) too measured the influence of the reference group on the purchasing behavior

and found “a strong influence of reference group on cell phone consumers in their purchasing

decisions. Informational influence on consumers found to be highest compared with

utilitarian influence and value-expressive influence.” Mark and Sharples (2009) found

usability as the most important factors of mobile choice; other features like aesthetics and

cost too were important. Consumer behavior towards mobile phones has also been segregated

with respect to age groups and gender differences and substantial research has also been done

in that respect. One such research is by Singh and Goyal (2009) who examined importance of

physical appearance, brand, value added features, core technology features, price and post-

sale services across three different age groups (18-30, 30-50, and 50 above) and two gender

groups. Overall physical appearance got the highest importance followed by brand and post-

sale services. Also Physical appearance, brand, value added features, and core technical

features influence the age group of 18-30 years more than consumers of other age groups.

The consumers of age 50 years and above are price sensitive as they have given greater

importance to price than any other age group. Male respondents have highest rated brand

closely followed by physical appearance. On the other side, female respondents gave highest

importance to physical appearance and least importance to core technical features. Based on

research by Khasawneh (2010) on mobile phones, it was found that products brand name

influence customers’ evaluation and affect to their buying decision. This can also be

supported by the research work of Norazah (2013), brand name was found to have a

significant effect on the demand for smartphones among Malaysian students. Ahmed and

Qazi (2011) investigated buying and re-buying mobile purchase behaviour of 500 University

students in Pakistan for adoption and consumption patterns. Consumer prefers service

provider offering services to suiting to their requirements and features of a mobile phone.

Favorite brand is Nokia and preferred service provider U-phone. Islam (2011) studied mobile

phone adoption amongst farmers in the rural area of Bangladesh. Nokia was the most

preferred brand due to affordability.

Singla and Bansal (2011) researched on factors that affect choice criteria of consumer for

mobile handset and the study revealed that important features of handsets are price, product



design, and availability and brand image. Osman (2012) in their study found that consumers

made purchases on the basis of design and other consideration of mobile functionality.

Mokhlis, Yakkop (2012) when investigated consumer behavior towards mobile phones in

Malaysian University came to the conclusion that seven elements describe cell phone

purchase decision – innovative features, image quality, price, recommendation, durability &

portable aspects, media influence and post sales services. The most important among them

was innovative features followed by recommendation and price. Saif, Razzaq, Amad, and Gul

(2012) in their study of 100 people found the factors that motivate consumers to buy a mobile

phone in Pakistan are price, new technology features, brand name and size/shape. Amongst

them, consumer value new technology features as the most important variable that motivates

them to go for a new handset purchase decision. Malaysian Communications and Multimedia

Commission undertook a survey in 2012 to determine the mobile phone usage among youth

in Malaysia and found that young adult aged between 15-29 are more prone to technology

and innovation features and are likely to embrace new technology faster. Further, new

function and new innovative functionality of hardware and operating system are most

important product features considered by smart phone users while making purchase decision

(Lay-Yee, 2013). According to Ibrahim, Kassim, & Mohamood (2013) Promotion mix

included celebrity endorsement, marketing frequency and exchange offers as the determining

factors. It was also found that social influence works more on young customers while

purchasing smart phones. Consumers collect information on product from various sources,

co-workers, friends, family etc; before making a product purchase. Sata (2013) showed that

in case of mobile purchase price and product features are important followed by brand name

and durability in Ethiopia. Azira, R. et al. (2015) examined factors influencing purchasing

intention of Smartphone among university students in Malaysia and deduced that “Three of

four variables in study namely product features, brand name, and social influence have a

significant relationship with product purchase intention and have positive correlation amongst

them” Kaushal, SK and Kumar Rakesh (2016) conducted study of 159 students and young

professionals from city of Lucknow to find out presence of any significant difference

between factors like Compatibility, Product Features, Price, Brand, relative advantage,

dependency, social influence and convenience that affect consumer's (male or female)

purchase of Smartphone. Results of the study revealed that only Compatibility, Dependency

and Social Influence had a significant effect on purchase intention of Smartphone users. Only

convenience factor showed a significant difference between male and female purchase

intention. Kushagra et al (2017) in their elaborate study involving 417 respondents on Impact

of Brand Cues on Young Consumers’ Preference for Mobile Phones using Conjoint Analysis

and Simulation Modelling deducted that the attributes or brand cues influencing youth can be

broadly classified as extrinsic cues and intrinsic cues. Extrinsic cues were found to be brand

name and price while Camera quality, RAM, Operating system and battery power were

intrinsic cues.

Literature review for consumer behavior towards mobile phones clearly highlights the

importance of technology, price, brand, recommendations and product features. Not only this,

it also highlights that this preference differs across the demographics of the consumer and

marketers must take into account this difference while formulating strategy to sell their

product.

3. RESEARCH OBJECTIVES

The objectives of the study are:

1. To identify the decision factors that affects the buying behavior of consumer with

respect to mobile phones.



2. To study the influence of decision factors on the perceived satisfaction of

consumers with respect to mobile phone buying decision.

4. RESEARCH DESIGN

The study employed survey method to gather data. A structured questionnaire was designed

to collect the data. It was divided into three sections. The first section seeks information

regarding the brand of phone the respondent owns and the usage pattern. In the second part of

the questionnaire respondents rated different attributes related to mobile phones they consider

on the basis of their agreement on a five point likert scale with 5 being strongly agree and 1

being strongly disagree. In this section they were also asked to rate their perceived

satisfaction with the buying decision of the current mobile phone they own. Finally, the third

section collects the demographic information of the respondent.

Exploratory factor analysis (EFA) was applied to the collected data to identify the

decision factors of consumer buying behaviour. A total of 47 items were identified on the

basis of literature review and exploratory study. Further multiple linear regression was

applied to study the relationship between the identified factors of consumer behaviour with

respect to satisfaction while buying the mobile phone. A pilot study was done to test the

content validity. For pilot study the questionnaire was administered to 50 mobile phone users

who had purchased a mobile phone less than six months prior to survey and another 10

questionnaires were given to experts in the area of marketing. The suggestions given by them

with respect to wording of the question, sequence of the question etc. were incorporated as a

result of which construct of the face validity was checked. The instrument was also tested for

reliability using Cronbach alpha score. The value of Cronbach's alpha for 50 items was 0.8,

which implied high internal reliability of the research instrument.

4.1. Sampling and Data Collection

Respondents for the study were the residents of Haryana State, who has purchased a mobile

phone during the past six months in the price range of Rs10,000 - Rs20,000. The

questionnaire was widely distributed by employing quota-sampling method. Most populated

district from each of the four regions of Haryana was taken for the study. From each of the

four districts, Faridabad, Yamunanagar, Bhiwani and Hisar, 200 respondents were taken for

the survey. A total of 800 respondents were interviewed personally, out of which 638

provided complete information. Therefore, out of 800 forms filled by different respondents

638 were taken on records for data analysis. 162 forms were rejected owing to omission,

error data, missing data etc. this constitute an effective response rate of 79.75%.

5. DATA ANALYSIS AND INTERPRETATION

Table 1 Demographic Profile of Respondents

Variables Category Frequency Percentage

Age

18 years and upto 25 years of

age 361 56.58%

18 years and upto 45 years of

age 241 37.77%

45 years and above 36 5.64%

Gender Male 470 73.67%

Female 168 26.33%

Occupation

Students and home makers 332 52.04%

Service professional 149 23.35%

Businessman 157 24.61%



Most of the respondents were in the age group of 18-25 years, i.e. 56.58%. In terms of

gender, approximately 73.67% of the respondents were male, for occupation approx. 52%

belonged to a category of students and homemakers.

The usage of mobile phone is not limited to making and receiving calls, rather people use

it for messaging, checking mails, listening to music, browsing on net and many more. It has

become a mini computer for them. Weekly usage patterns of the consumers for various

activities are summarized in Table 2.

Table 2 Mobile Phone Usage (Weekly)

<1 hr 1-2 hrs 3-5hrs > 5 hrs

Make/Receive calls 50% 29% 13% 8%

Send Text Messages 19% 23% 41% 17%

Checking Emails 45% 40% 13% 2%

Listening to Music 20% 29% 37% 14%

Browsing the Internet 34% 38% 20% 8%

Others (Specify) 53% 47% 0% 0%

6. FACTOR ANALYSIS

Once the data was collected on different parameters/variables then the grouping of these

variables into factors was done using factor analysis. Before using factor analysis to study the

first objective various assumptions of factor analysis were tested.

6.1. Kaiser-Meyer-Olkin (KMO) Test for Sampling Adequacy

The Kaiser-Meyer-Olkin (KMO) measures the sampling adequacy (which determines if the

sample is adequate for applying factor analysis) which should be close to 0.5 for a

satisfactory factor analysis to proceed. Kaiser & Rice (1974) recommends 0.5 (value for

KMO) as minimum (barely accepted), values between 0.7-0.8 acceptable and values above

0.9 are rated as superb. The calculated value of KMO was 0.767, which is found to be

acceptable.

6.2. Bartlett’s test of Sphericity

Bartlett’s test is another indicator of the strength of the relationship among variables.

Bartlett's sphericity test indicates Chi-Square value, which is found to be 17890.733 with df

as 741 and significance level of 0.000. Based on these indicators, factor analysis was found to

be suitable to be applied on 50 items. Table 3 presents the results of KMO and Bartlett's test

of sphericity.

Table 3 KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.767

Bartlett's Test of Sphericity

Approx. Chi-Square 17890.733

Df 741

Sig. .000

Further Principle Component Analysis with Varimax rotation method was used to extract

factors having eigen values greater than 1. Accordingly ten factors were derived from factor

analysis. These 10 factors were Price Advantage, Physical Dimensions, Brand & Advertising,

Reviews & Recommendations, Speed & Performance, Battery, Camera, Availability, Design

& Colour and Exchange Possibility, which explain about 71% of cumulative variance.

Finally, the result of factor analysis along with the factor names is summarized in the Table 4.

https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=7&cad=rja&uact=8&ved=0ahUKEwiDstDSttvVAhVDuI8KHTCvBwcQFghGMAY&url=http%3A%2F%2Fwww.statisticshowto.com%2Fkaiser-meyer-olkin%2F&usg=AFQjCNF74gD4ag35c8YkziC2vrIEyqFB2w



The factors were also checked for their reliability by using cronbach’s alpha. The values

of cronbach alpha for all the factors were more than 0.7, which is acceptable. Hence factors

were found to be reliable for measuring the consumer buying behavior (also shown in table 4)

Table 4 Showing result of Factor Analysis

Factors Fac

1

Fac

2

Fac

3

Fac

4

Fac

5

Fac

6

Fac

7

Fac

8

Fac

9

Fac

10

Cronbac

h's alpha

value i.e.

reliabilit

y

Fac 1: Price

Advantage

The price

advantage that I

get through

freebies offered

with a phone

influences my

buying decision

favorably towards

that phone.

0.94

9

0.929

While choosing

on a phone to buy,

availability of a

flexible price plan

(interest free

EMIs etc.) affects

my choice.

0.94

1

I would prefer

buying a phone

online, if there is

significant price

difference

between its online

price and price in

offline stores.

0.56

9

The cash-

back/payback

(through

credit/debit

cards/PayTM etc.)

available during

purchase makes

me favorably

disposed towards

buying that

phone.

0.84

6

Free Internet data

bundled with a

new phone

purchase will

influence my

buying decision

favorably towards

that phone.

0.93

6

Fac 2: Physical

Dimensions



The thickness of

the phone doesn’t

matter to me

while making a

buying decision

0.84

6

0.869

The screen size of

the phone is an

important factor

for me while

making a buying

decision

0.77

2

I would prefer to

buy a large screen

phone, where I

can see the

pictures and

videos clearly.

0.87

1

I would prefer to

buy a phone,

where I can easily

read and type text

0.67

1

The weight of the

phone is an

important factor

for me while

making a buying

decision

0.86

7

Fac 3: Brand &

Advertising

Popularity of the

brand is an

important factor

for me while

making a decision

to purchase a

mobile phone.

0.72

4

0.857

Image of the

brand is an

important factor

for me, while

making a decision

towards buying a

phone of that

brand.

0.88

8

More often I see

the Ads of a

particular

brand/phone,

more favorably I

am predisposed

towards that

brand/phone.

0.79

Presence of brand

warranty for a

phone helps me

decide favorably

towards buying

that phone

0.87

1



Fac 4: Reviews &

Reccomendations

The favorable

customer reviews

about a phone

helps me decide

favorably towards

buying that

phone.

0.91

2

0.809

The

recommendations

of my

friends/relatives

for any phone

makes me

favourably

disposed towards

buying that

phone.

0.80

5

The

recommendations

of the retail store

personnel for any

phone model

affect my decision

to purchase that

phone.

0.75

The review

ratings given for

any phone model

affect my

purchase decision.

0.83

7

Fac 5: Speed &

performance

Presence of a fast

processor in a

mobile phone is

an important

factor for me

while making a

buying decision

0.54

2

0.854

I would prefer a

phone that will

not hang while

performing

multiple

operations.

0.71

1

I would prefer a

phone that will

not heat up while

performing

multiple

operations.

0.90

5

The operating

system (Android

or Blackberry or

Windows) is an

important

0.90

2



decision factor for

me while making

a buying decision

for any phone.

Fac 6: Battery

Long battery life

in a phone makes

me predisposed

favorably towards

buying that phone

0.88

1

0.929

Fast battery

charging

capability in a

phone influences

my buying

decision towards

that phone.

0.93

6

I would prefer a

phone, whose

battery will last

longer and I don’t

have to charge the

phone often.

0.86

3

Fac 7: Camera

A good quality

camera in a phone

is an important

factor for me

while deciding

which phone to

buy.

0.64

6

0.876

Presence of

multiples cameras

(front and back)

in a phone

influences my

buying decision

towards that

phone.

0.92

3

I would prefer a

phone, which gets

me better pictures

clicked

0.90

9

Fac 8:

Availability

Online

availability of a

phone helps me

decide favorably

towards buying

that phone

0.88

6

0.721 I would prefer

buying phone

from a store that

sells multiple

brands so that I

can make a choice

between them

0.84

7



(Multi Brand

Outlets (MBO)

Exclusive brand

stores offer me

complete range of

brand of my

choice, which

helps me make a

purchase decision

easily. (Exclusive

Brand Outlets

(EBO)

0.70

6

If a particular

brand’s service

centre is close to

me, it influences

my buying

decision favorably

towards that

phone.

0.62

6

Fac 9: Design &

Colour

I would prefer to

buy a phone that

is trendy i.e. has

some fashion

statement.

0.81

5

0.759

My predisposition

lies towards

buying phones

that appear rich &

stylish.

0.78

6

The overall

appearance/design

of a phone matter

to me while

making a buying

decision.

0.82

2

Fac 10: Exchange

Possibility

Availability of an

attractive

exchange offer for

my old phone

while purchasing

a new mobile

phone influences

my buying

decision favorably

towards that

phone.

0.66

5

0.713

Convenient

exchange process

(of older phones,

while buying new

phones)

influences my

buying decision

0.81

2



favorably towards

that phone.

If a new phone

helps me get good

value for my older

phone, I would

prefer buying that

phone.

0.77

5

Eigen Value 3.96

0

3.35

9

2.96

6

2.96

1

2.80

5

2.65

3

2.47

3

2.46

0

2.09

5

1.97

0

% variance

Explained

10.1

55

8.61

3

7.60

6

7.59

3

7.19

2

6.80

2

6.34

0

6.30

9

5.37

2

5.05

2

cumulative

variance (%)

10.1

55

18.7

68

26.3

74

33.9

67

41.1

59

47.9

61

54.3

01

60.6

10

65.9

82

71.0

34

7. RESEARCH MODEL

To study the second objective regression analysis was performed.

The research is exploratory in nature to find out which decision factors impacts the

satisfaction of mobile phone users. To study the relationship between multiple independent

variables (decision factors) and the dependent variable satisfaction with respect to mobile

phone buying decision, multiple regression analysis was applied. This is used to determine

the relative predictive importance of independent variables. (Williams and Monge, 2001)

Figure 1 Framework for consumer buying behavior i.e. Research Model

These ten factors were translated into ten research hypotheses given below:

H01: There exists no significant relationship between the Price Advantage through offers

and perceived satisfaction of the consumers with respect to mobile phone buying decision.

H02: There exists no significant relationship between the Physical dimensions and

perceived satisfaction of the consumers with respect to mobile phone buying decision.

H03: There exists no significant relationship between the Brand & Marketing and




H04: There exists no significant relationship between the Recommendations and reviews)

and perceived satisfaction of the consumers with respect to mobile phone buying decision.

H05: There exists no significant relationship between the Speed & performance and


H06: There exists no significant relationship between the Battery life and perceived

satisfaction of the consumers with respect to mobile phone buying decision.

H07: There exists no significant relationship between the Camera Quality and perceived


H08: There exists no significant relationship between the Availability and perceived


H09: There exists no significant relationship between the Design & Colour and perceived


H10: There exists no significant relationship between the Exchange Possibility and


The multiple regression model with k independent variables can be written as follows:

0 1 1 2 2 ........... k kY x x x

where, Y is the dependent variable and 1 2, ,......, kx x x are independent variables, and i is the

regression coefficient, and is the random error component. The value of the coefficient i

determines the contribution of the independent variable ix , given that the other x variables are

constant and 0 is the y -intercept.

For this work the above translates to the following general equation:

1 1 2 2 7 7( ) ...........Y satisfaction DF DF DF

A step-wise regression was performed by taking all seven decision factor scores as the

independent variables and the dependent variable is satisfaction of the consumers with

respect to mobile phone buying decision. Those variables that significantly influenced the

dependent variable would be considered as the influential decision factors.

At each level described above, the multiple correlation coefficient(R), the coefficient of

determination, adjusted R2

and coefficient Beta values of the model were computed. Those

variables with significance value less than 0.05 would be considered being influential

decision factors.

The list of most significant independent variables influencing the dependent variable can

be seen as follows in table 6.

Table 6 Regression Analysis Result

Constant 13.022

Unstandardized Standardized

Factors Satisfaction (B) Satisfaction (Beta)

Camera 2.370 .859

Speed & Performance 1.037 .376

Battery Life .476 .172

Brand & Advertising .296 .107

Price Advantage .250 .091

Reviews & Reccomendations .139 .050

Exchange Possibility .097 .035



N 638.000

R .965

R2 .932

F 1226.758

Probability > F .000

**p<.01

The above table shows that out of the ten independent factors, seven factors have been

found to have significant positive impact on the dependent variable i.e. satisfaction of the

mobile user with respect to their buying decision. Out of which camera has the highest beta

value indicating that this is the most important factor that influence the satisfaction level of

the mobile phone user followed by speed & performance and battery life. Product dimensions

design & colour and availability related factors were not significant in influencing the

perceived satisfaction of the consumer with respect to mobile phone buying decision.

8. CONCLUSION

The study has provided useful insights about the factors considered important by consumer

while buying smart phones. Ten decision factors of consumer buying behavior identified

through literature review with respect to smart phones were taken like i) Price Advantage, ii)

Physical Dimensions iii) Brand & Advertising iv) Reviews & Recommendations v) Speed &

Performance, vi) Battery Life vii) Camera viii) Availability ix) Design & Colour and x)

Exchange Possibility. A sample of 638 consumers from districts of Yamuna Nagar, Hisar,

Bhiwani and Faridabad in Haryana were surveyed to identify the factors considered important

from among the ten factors identified through literature review. The factor analysis results

showed that seven factors out of ten were found important by them viz. i) Price Advantage,

ii) Brand & Advertising iii) Reviews & Recommendations iv) Speed & Performance, v)

Battery Life vi) Camera and vii) Exchange Possibility.

Out of these seven factors, finally shortlisted through regression analysis revealed that

“Speed & Performance” has the highest positive impact on the customer satisfaction followed

by “brand & advertising” and “recommendations & reviews”.

This finding is useful for the manufacturer in designing a product with focus on the

technological aspect of the smartphone. Studies by Saif et al (2012), Sata (2013), Azira, R. et

al. (2015) etc. support the results. Advertising plays an important role in influencing buying

behaviour and popularizing the brand which eventually becomes one of the important factor

for building consumer intention and purchase towards smartphones. Studies by Singh and

Goyal (2009), Khasawneh (2010), Norazah (2013) etc. support the results. Consumers

normally give importance to recommendations and reviews received through social media,

blogs, communities, friends, colleagues etc. Studies by (Lachance et al., 2003). Bristol and

Manglegurg (2005), Xihao et al (2006) etc. support the results.

REFERENCES

[1] Ahmed, I., & Qazi, T. F. (2011). Mobile phone adoption & consumption patterns of

university students in Pakistan. International Journal of Business and Social Science, 2(9).

[2] ASSOCHAM (2011), People change mobile phones within two years: Survey: Anil

Satapathy, The Mobile Indian, Mumbai Last updated : Tuesday, November 01, 2011.

http://www.themobileindian.com/news/people-change-mobile-phones-within-two-years-

survey-3088

http://www.themobileindian.com/author/anil-satapathy

http://www.themobileindian.com/author/anil-satapathy

http://www.themobileindian.com/news/people-change-mobile-phones-within-two-years-survey-3088

http://www.themobileindian.com/news/people-change-mobile-phones-within-two-years-survey-3088



[3] ASSOCHAM and KPMG (2016), India to have 13.5% share in global smart market by

2019: ASSOCHAM-KPMG study, http://www.assocham.org/newsdetail.php?id=5852 on

Jan 2017.

[4] Blackwell, R. J., Miniard, P. W., & Engel, J. F. (2006). Consumer behavior (10th ed.)

Cincinnati, Orlando: Harcourt College Publishers. South Western-Thomson Learning.

[5] Bristol T, Mangleburg TF (2005). “Not Telling The Whole Story: Teen Deception in

Purchasing,” J. Acad. Mark. Sci. 33 (1), 79-95.

[6] Castells M., Fernandez-Ardevol M., Qiu J. L. and Sey A., Mobile Communication and

Society: A Global Perspective. Cambridge, M. A.: The MIT Press, 2006.

[7] Dziwornu, Raymond K.(2013) "Factors Affecting Mobile Phone Purchase In The Greater

Accra Region Of Ghana: A Binary Logit Model Approach". International Journal of

Marketing Studies .

[8] GSMA (2017). The mobile Economy 2016. A report by Global System Mobile (GSMA).

[9] Islam M. S., (2011), Adoption of mobile phones among the farmers: A case study from

rural Bangladesh. Örebro University, Swedish Business School, MSc in Informatics

program.

[10] Ibrahim, I. I., Subari, K. A., Kassim, K. M., & Mohamood, S. K. B. (2013). Antecedent

Stirring Purchase Intention of Smartphone among Adolescents. Perlis International

Journal of Academic Research in Business and Social Sciences, Vol. 3, No. 12, 84-97.

[11] K Kulshreshtha, V Tripathi and N Bajpai (2017). Impact of Brand Cues on Young

Consumers’ Preference for Mobile Phones: A Conjoint Analysis and Simulation

Modelling, Journal of Creative Communications 12 (3), 205-222

[12] Kaiser, H F and Rice, J (1974). Little Jiffy, Mark IV. Educational and Psychological

Measurement, Vol. 34, No. 1, pp. 111 - 117

[13] Karjaluoto H., Karvonen J., Kesti M., Koivumäki T., Manninen M., Pakola J., Ristola A.,

and Salo J. (2005). Factors Affecting Consumer Choice of Mobile Phones: Two Studies

from Finland. Journal of Euromarketing, Vol. 14(3), pp. 59-82

[14] Kaushal, S. K and Rakesh Kumar.(2016) "Factors Affecting The Purchase Intension Of

Smartphone: A Study Of Young Consumers In The City Of Lucknow". Pacific Business

Review International 1-16. Print.

[15] Khasawneh K and Hasouneh A. B. I. (2010). The effect of familiar brand names on

consumer behaviour: A Jordanian Perspective. International Research Journal of Finance

Economics, 43.

[16] Lachance, Mj, Beaudoin, P & Robitaille, J. 2003. Adolescents’ brand sensitivity in

apparel: influence of three socialization agents. International Journal of Consumer Studies

27(1):47-57.

[17] Lay-Yee, K. L., Kok-Siew, H. and Yin-Fah, B.C. (2013). Factors Affecting Smartphone

Purchase Decisions Among Malaysian GenerationY. International Journal of Asian Social

Science, 2013, 3(12): 2426-2440.

[18] Ling, W. Hwang and G. Salvendy (2006). Diversified users’ satisfaction with advanced

mobile phone features, Universal Access in the Information Society, 5(2), 239-249.

[19] Loudon, D., & Bitta, D. (1994). Consumer Behaviour Application (4th ed.). New York:

McGraw Hill.

[20] Mark and S. Sharples (2009). The importance of usability in product choice: A mobile

phone case study, Ergonomics, 52(12), 1514-1528.

[21] Mokhlis, S., & Yakop, A. Y. (2012). Consumer Choice Criteria in Mobile Phone

Selection: An Investigation of Malaysian University Students. Int. review of social

sciences and humanities. Vol. 2, No. 2. pp. 203-212

[22] Norazah Mohd Suki (2013). Students’ demand for smartphones Structural relationships of

product features, brand name, product price and social influence. 30(4), 236-248.

http://www.assocham.org/newsdetail.php?id=5852



[23] Osman, M. A., Talib, A. Z., Sanusi, Z. A., Shiang-Yen, T., & Alwi, A. S. (2012). A Study

of the Trend of Smartphone and its Usage Behavior in Malaysia. International Journal of

New Computer Architectures and their Applications (IJNCAA), 2(1), 274-285.

[24] Rahim, Azira et al. "Factors Influencing Purchasing Intention Of Smartphone Among

University Students". Procedia Economics and Finance 37 (2016): 245-253. Web.

[25] Saif, N., Razzaq, N., Amad, M., & Gul, S. (2012). Factors Affecting Consumers’ Choice

of Mobile Phone Selection in Pakistan. European Journal of Business and Management,

4(12), 16–26.

[26] Sata, Mesay (2013). Factors Affecting Consumer Buying Behavior of Mobile Phone

Devices Mediterranean Journal of Social Sciences, Vol. 4, No. 12. pp. 103-112

[27] Singh J. and Goyal B. B. (2009), Mobile Handset Buying Behavior of Different Age and

Gender Groups. International J. of Business Management, Vol. 4, No. 5, 179-187

[28] Singla S. and Bansal S. (2011), A study on the factors affecting choice criteria of

consumers for mobile handsets a comparative analysis in Ludhiana & Sangrur districts.

Asian Journal of Management Research, Volume 2, Issue 1, pp. 443-456

[29] Senecal, S., Kalczynski, P.J. and Nantel, J. (2005), “Consumers’ decision-making process

and their online shopping behavior: a clickstream analysis”, Journal of Business

Research, Vol. 58 No. 11, pp. 1599-1608.

[30] Xihao, H., & Yang, J. (2006). Social influence on consumers’ purchasing behavior and

related marketing strategy-a cross–nation comparative study. Working Paper, Georgia

College and State University.

factors affecting consumer buying behavior towards …€¦ · indian mobile market has witnessed a...

Documents