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CONSUMER BEHAVIOUR TOWARDS SMARTPHONE PURCHASING DECISION
IN
UNITED ARAB EMIRATES
DEPARTMENT OF MANAGEMENT
BIRLA INSTITUTE...
Table of Contents
CHAPTER 1: INTRODUCTION...................................................4
1.1BACKGROUND .................
CHAPTER 1
Chapter 1: Introduction
1.1Background
Nowadays, mobile phone, or cell phone, has almost become a necessity product in people’s social
life among t...
Smart phones have gained a lot of popularity and are considered to be great tools. Smartphones
are being used for entertai...
features of the phone. For example, pictures taken with the camera can be linked to the address
book so that users can see...
CHAPTER 2
Chapter 2: Literature review
The literature review provides us the previous knowledge about all these theories that relate...
2.2 The theory of gender difference
There is one popular topics has been brought out recently, which focus on gender diffe...
Additionally, the consumer’s preferences on smartphone specifications such as design, computing
power, operating platform,...
CHAPTER-3
Chapter 3: Data Analysis
3.1 Primary Data
Primary data is that data which is collected for the first time. It is original ...
3.3 Demography
The total targeted sample consisted of 50 people in which 50 of them used smartphone. The
result shows that...
3.4 Occupation
Table (2) showing percent of occupation of respondents
According to the table (2) the maximum numbers of re...
This question was to identify the satisfaction of respondents with their smartphone. According to
table (3) 90% said that ...
Which brand of Smartphone did you purchase last time?
According to the table (5) shows that, they have people mostly prefe...
This table shows that people still prefer Samsung compare to Apple, Sony and HTC, where
Samsung cover the 36.734 % of the ...
3.5 Education
Table (8) Student Qualification
Out of 50 sample survey, 27 of the students are in their graduation and 16 s...
This question was to identify as do the smartphone users want to switch their smartphone brand
with another with additiona...
Price Friend&
Family
Brand Advertisment Sales
after
Service
Promotion Brand
Loyality
Features Shape
and
Size
Sum 153 165 1...
Table (12).Opinion on their Smart Phones
Opinion in the following statements. 1- Strongly Non Influential 5- Strongly
Infl...
According to the average Score and the Rank provided to the these statement shows that most of
the people recommend the br...
CHAPTER 4
CHAPTER 4: CONCLUSION
The objective of this research was to investigate the underlying factors that determine the decision...
CHAPTER 5
CHAPTER 5: REFERENCES
 http://gulfbusiness.com/2013/11/uae-smartphone-usage-drives-mobile-retail-
growth/#.VPdk7fmUdGY
 ...
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Consumer behaviour towards a smartphone purchasing decision in The United Arab Emirates

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Consumer behaviour and attitude towards smartphone brand in the United Arab Emirates .

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Consumer behaviour towards a smartphone purchasing decision in The United Arab Emirates

  1. 1. CONSUMER BEHAVIOUR TOWARDS SMARTPHONE PURCHASING DECISION IN UNITED ARAB EMIRATES DEPARTMENT OF MANAGEMENT BIRLA INSTITUTE OF TECHNOLOGY
  2. 2. Table of Contents CHAPTER 1: INTRODUCTION...................................................4 1.1BACKGROUND .........................................................................5 1.2 CURRENT SCENARIO.................................................................5 1.3 SMARTPHONE CHARACTERISTICS ................................................6 1.3 PURPOSE ...............................................................................7 CHAPTER 2: LITERATURE REVIEW ...........................................9 2.2 THE THEORY OF GENDER DIFFERENCE.........................................10 2.3 PURCHASE DECISION-MAKING PROCESS .....................................10 2.4 RESEARCH OBJECTIVE.............................................................10 2.5 METHODOLOGY....................................................................11 CHAPTER 3: DATA ANALYSIS................................................. 13 3.1 PRIMARY DATA.....................................................................13 3.2 SECONDARY DATA.................................................................13 3.3 DEMOGRAPHY ......................................................................14 3.4 OCCUPATION........................................................................15 3.5 EDUCATION..........................................................................19 CHAPTER 4: CONCLUSION..................................................... 25 CHAPTER 5: REFERENCES...................................................... 27
  3. 3. CHAPTER 1 Chapter 1: Introduction
  4. 4. 1.1Background Nowadays, mobile phone, or cell phone, has almost become a necessity product in people’s social life among the world Smart-phone ownership in the UAE has outstripped the global average by 30 per cent resulting in increased growth opportunities for mobile retail. According to a survey by research consultancy TNS Global, around 78 per cent of UAE residents own a smart-phone compared to the global average of 42 per cent. The survey also revealed that nearly 40 per cent of consumers in the Emirates either own or are looking to own a tablet. (Gulfbusiness.com). The poll showed 46% of the UAE resident use their mobile phone for instant messaging and 34% use for social networking. (Gulfbusiness.com).The first Smart Phone companies target users were Business users who has to get connected to the internet everytime to get updated by emails, time (CFI Group,2009).There are number of factors that need to be taken into account when exploring mobile phone buying decision process, including both the factors micro and marco economic conditions that affect the evolution of mobile phone market in decision making process. As the mobile phone market is a typical technology push driven market where products are created ahead of the recognition of existing recognized consumer needs (e.g., Gerstheimer and Lupp, 2004) mobile phone development is based on consumers’ possible future needs and thus companies that best hunch the technologies and services of future will be the leaders in the discipline (for discussion of technology push see, e.g., Brown, 1991; Hamel and Prahalad, 1991; Kumar, 1997; Nagel, 2003). 1.2 Current Scenario
  5. 5. Smart phones have gained a lot of popularity and are considered to be great tools. Smartphones are being used for entertainment and due the introduction of new features every day. They have become more than just call making and receiving calls. Mobile phone handsets now have more business-friendly applications. With emerging technology, smartphones have become more than communication devices they are the tools to stay ahead of competitors and peers in the present times. 1.3 Smartphone Characteristics Within the mobile phone category, there is a sub class of Smart phones. A Smart phone is a mobile phone that integrates a feature phone and a mobile computing platform, and the models today even function such as digital cameras, media players, high-speed data access via Wi-Fi, GPS navigation, and other applications with option to download application through application market. Typically, smartphones also comprise web browsers and high-resolution touchscreens, which provide people better viewing and browsing experience. In its simplest form, a smartphone is a mobile phone with built-in, add-on applications and Internet (4G network) access. However, because of its capability to handle a great amount of applications and functions at the same time the concept of a smartphone slowly transitioned into definitions of a computer. The smartphone becomes more than a device for sending and receiving text sms and calls as it consists of various methods to interact with others in a more personalized way, compared to the traditional mobile phones. One of the significant differences between a feature phone and a smartphone is that a smartphone can install third-party applications from applications store. Users are able to download and install application on their operating systems. Generally a Smartphone is based on a certain operating system that allows phone users to install applications on it. Systems include Apple’s iOS, Google’s Android, Microsoft’s Windows Phone etc. These applications must work together seamlessly and with the
  6. 6. features of the phone. For example, pictures taken with the camera can be linked to the address book so that users can see who is calling. Navigation software uses addresses stored in the address book in combination with GPS data to facilitate data entry. 1.3 Purpose The purpose of this paper is to investigate smart phone purchase behaviour preferences among youth and resident in United Arab Emirates of particular interest is the issue of gender differences regarding the behavioral aspects of the cell phones.
  7. 7. CHAPTER 2
  8. 8. Chapter 2: Literature review The literature review provides us the previous knowledge about all these theories that related to our study and theory of gender differences, consumer purchase decision-making process, and Consumer choice behavior has some important prevailing conditions that must be taken into account while studying choice. In the light of the classical problem solving buying behavior, consumers engage in information search before making the actual choice. We limit our analysis in this paper to consumer choice that can range from choice oriented referring to a decision on which alternative to purchase from a set of alternatives, whether or not to purchase, or whether to purchase now or later to value oriented choice (Shuv and Huber, 2000). The younger the consumer the more hedonistic features consumers tend to value in mobile phones (Wilska, 2003). The research showed that addictive use was common among females and was related to trendy and impulsive consumption styles. Instead, males were found to have more technology enthusiasm and trend-consciousness. Price of the phone has been identified as a critical factor in the choice of the mobile phone model, especially among younger people (Karjaluoto et al., 2003a; Karjaluoto et al., 2003b) Features like touchscreen functionality, and location-based services remain in demand and software application installation, full programmability, multimedia Presentation, high-resolution displays and numerous operation system continue to play a significant role in fulfill the satisfaction of the consumer. In a survey revealed by BDS Marketing in 2012, statistics showed that 26 percent of smartphone buyers purchased a different brand of phone originally intended to purchase once at the store. Sean Wargo, Sr. Director of Business Intelligence for BDS says: “Sales and promotions in the store do have an impact, but so does the associate, making them a key component of the selling process and an important target for in-Store marketing efforts.”
  9. 9. 2.2 The theory of gender difference There is one popular topics has been brought out recently, which focus on gender difference in influence ablity. Even though the research regarding this topic is limited, it shows that the male and female have different abilities to influence others and these differences relates to gender differences in power. (Carli, 1999) 2.3 Purchase decision-making process Understanding consumers purchase decision-making process allows marketers to gain more knowledge about their consumers. Moreover, it can be a foundation for them to create more suitable marketing strategies for their target consumers. If marketers understand the process of their consumers, they will know how their consumers search for information before buying, which criteria can encourage them to buy, and what factors influence their purchase decision- making. (Solomon et al., 2010). 2.4 Research Objective Drawn from the issues, the purpose of this study is to better understand the current dynamics of the UAE demand market for smartphone and the consumer purchasing decision. This study has looked into the familiarity of users towards smartphones, choices of smartphone brand and service providers and most importantly the determinants that influence their purchasing decision.
  10. 10. Additionally, the consumer’s preferences on smartphone specifications such as design, computing power, operating platform, and price were investigated. Specifically, the purpose of this study can be listed as below: i. To understand the level of influence of price towards consumer decision making in purchasing smartphone ii. To understand the impact of different brand name towards consumers decision making in purchasing smartphone 2.5 Methodology  The participants of the study are undergraduate and post graduates students from a university located in Ral Al Khaimah, UAE as well as from the Resident of UAE. The technique used for data collection was questionnaire. The demographic aspects included age, gender, education, occupation, and income.  In addition to the Secondary research. Primary data was also collected from young students as well as working age group between (15-30) years were considered as the respondents of this study and articles published on newspapers, magazines and industry report and from World Wide Web
  11. 11. CHAPTER-3
  12. 12. Chapter 3: Data Analysis 3.1 Primary Data Primary data is that data which is collected for the first time. It is original in nature in the shape of raw material. For the purpose of collection of primary data, a well-structured questionnaire was framed which was filled by the respondents. The questionnaire comprises of close ended as well as open ended questions. 3.2 Secondary Data Secondary data is the data which is already collected by someone. They are secondary in nature and are in shape of finished product. Secondary data was collected so as to have accurate results. Required data was collected from various books, magazines, journals and internet This chapter is data analysis, in this chapter the data collected through online questionnaires was analyzed. As the primary research method was survey, Questionnaires was distributed among people via email and Facebook. This chapter will first show the sample and analyse the targeted sample. Then according to research objectives the finding was discussed and analyzed.
  13. 13. 3.3 Demography The total targeted sample consisted of 50 people in which 50 of them used smartphone. The result shows that out of the 50 people most of them were students the highest majority of respondents were of age 21-25 Table (1) showing percent of age group As shown in the diagram most of the age group are between 21-25 from the sample provided The second highest and third highest respondents were age 15-20-30 and 31-25. 0 5 10 15 20 25 30 15-20 21-25 26-30 31-35 AGE DISTRIBUTION
  14. 14. 3.4 Occupation Table (2) showing percent of occupation of respondents According to the table (2) the maximum numbers of respondents were students followed by salaried and self-employed Consumer’s attitude toward owning and level of satisfaction from smartphone Table (3) showing respondent’s satisfaction with their smartphone 0 5 10 15 20 25 30 35 40 45 50 salaried self employed student OCCUPATION occupation 10% 90% Customer satisfaction with Smartphone(%) No Yes
  15. 15. This question was to identify the satisfaction of respondents with their smartphone. According to table (3) 90% said that they are satisfied with their smartphone and 10% said that they are not satisfied with their smartphones. This data helps in analysing the satisfaction level of consumers from smartphone, as maximum respondents using a smartphone are satisfied with their product. Do you think you would be buying a smartphone in near future? Table (4) showing respondents plan to buy a smartphone in future This question was to identify that those people who are not using smartphone currently, are they planning to buy a smartphone or not. So in this table (4) we see that out of that 50 respondents 45% plans to buy a smartphone in near future and 18% do not want to buy a smartphone and 37% did not answer. This result clarifies that maximum number of people are looking forward to buy a smartphone in future. 45% 18% 37% Would you buy a smart phone in future? (%) Yes No No answer
  16. 16. Which brand of Smartphone did you purchase last time? According to the table (5) shows that, they have people mostly prefer Samsung and secondly comes Apple followed by Sony, HTC and rest of the others. Based on your own experience, which brand you like the most? Table (6) shows the percentage of brand preference in future 13 1 1 4 19 5 1 1 1 1 2 0 5 10 15 20 RECENT MOST SMART PHONE BRAND PURCHASED recent most smart phone brand purchased 30.6122449 2.040816 2.040816 2.040816 2.040816 6.12244898 2.040816 2.040816 2.040816 36.73469388 8.163265306 2.040816 2.040816 0 5 10 15 20 25 30 35 40 Apple Asus Blackberry Google Google nexus HTC huawei lenovo nokia samsung sony xolo no response Brand preference according to experience(%) brand preference according to experience(%)
  17. 17. This table shows that people still prefer Samsung compare to Apple, Sony and HTC, where Samsung cover the 36.734 % of the total share and apple has 30.612% share market and after these two big companies Sony and HTC has also entered into the market with less market share. How much are you willing to pay for a smartphone? Table (7) shows that how much they are willing to pay for a smartphone This question was asked to identify as how much people are willing to pay to purchase a smartphone this question also helps in understanding as which range of smartphone have high sales. 23 % people prefer to pay between 1000-1500AED and 25% of people are willing to pay between 1500-2000AED and 2000-2500AED, 8% of people is willing to pay between 2500- 3000AED and 19% are willing to pay more than 3000AED. This result shows that most of the students are willing to pay between 1000-2500AED for the smartphone. 23% 25% 25% 8% 19% Amount willing to be paid on a smart phone 1000-1500 AED 1500-2000 AED 2000-2500 AED 2500-3000 3000 & ABOVE
  18. 18. 3.5 Education Table (8) Student Qualification Out of 50 sample survey, 27 of the students are in their graduation and 16 students are in their post- graduation followed by diploma and others. This results shows that most of the students where under- graduation. Would you like to switch to another brand with additional features? Table (9) shows respondents view on switching brands 0 5 10 15 20 25 30 Diploma Graduation Others Post Graduation 2 27 3 16 EDUCATION Education 22 22.5 23 23.5 24 24.5 25 25.5 Yes No switch over to a new brand with additional features switch over to a new brand with additional features
  19. 19. This question was to identify as do the smartphone users want to switch their smartphone brand with another with additional or new features as new brands are launching new and improved smartphone and some improved features differs from brand to brand . This result it clarifies that most people will switch their smartphone brand in order to get new features with different brand. Influence of the following factors 1 –Strongly Non-Influential 5- Strong Influential Table (10). Influence of the following factor 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 Average Score BUYING BEHAVIOUR Family and Friend Price Brand Advertisment After Sales and Service Promotion and Offers Brand Loyality Features Design And Shape
  20. 20. Price Friend& Family Brand Advertisment Sales after Service Promotion Brand Loyality Features Shape and Size Sum 153 165 195 144 179 170 166 198 189 Average Total 3.06 3.3 3.9 2.88 3.58 3.4 3.32 3.96 3.78 Rank 8 7 2 9 4 5 6 1 3 Table (11). Influence of the following factor In the above table (10), (11) shows that the people mostly want features as per the ranking of the following is given depending on the average total. Rank 1 is given to the feature since most of the student wants features in their Smartphone, followed by the Brand etc advertisement is the least factor in the following.
  21. 21. Table (12).Opinion on their Smart Phones Opinion in the following statements. 1- Strongly Non Influential 5- Strongly Influential My Smartphone brand is more than product(6.1) I will switch to another brand (6.2) I would recommend brand to my friends (6.3) I consider myself to be loyal to brand (6.4) The quality of my smartphone is good(6.5) Total score 164 144 168 152 156 Average Score 3.28 2.88 3.36 3.04 3.12 Rank 2 5 1 4 3 2.6 2.7 2.8 2.9 3 3.1 3.2 3.3 3.4 Average score OPINION ON SMARTPHONE 6.1 6.2 6.3 6.4 6.5
  22. 22. According to the average Score and the Rank provided to the these statement shows that most of the people recommend the brand to friends which plays a vital role in purchase of the smart phone in students followed by the Rank-2 shows that Smartphone is more than product to them and the quality of the smartphone is good is rank 3and the least factor is switching to another brand which is not so important for the student.
  23. 23. CHAPTER 4
  24. 24. CHAPTER 4: CONCLUSION The objective of this research was to investigate the underlying factors that determine the decision to purchase mobile phone devices. According to the study, majority of the consumers own Samsung smartphones followed by Apple. Features is the dominant factor affecting the decision to buy smartphone. Secondly, brand plays a major role which is considered by the consumers while purchasing the mobile phone. Thirdly, Shape and Size of the smartphone followed by sales after service in the fourth rank and promotions and offers are rated in the fifth rank then brand loyalty , family and friends, price is least important to the consumers for buying smartphones In the survey results most of the student purchase their smartphones by recommendation from their friends which has been ranked first and secondly, as per the result their smartphone is more than a product and the most of the students are happy with their smart phones quality which has been ranked third, least important has been seen in brand loyalty and switching to another brand. In the end the company has to look for more features to capture the youth market in United Arab Emirates which will benefit the company in this region. Company should look to go beyond the average shopping experience and use mobile to deliver an improved experience that inspires, while saving time and money. UAE consumers are more likely to be influenced by brand and quality rather than price, and the most popular brand in the country is Samsung with 55 per cent of sales, followed by Apple with 40 per cent and followed by HTC, Sony which is also giving a good competition to these leading brands. Branding is also very important when it comes to smartphone purchases.
  25. 25. CHAPTER 5
  26. 26. CHAPTER 5: REFERENCES  http://gulfbusiness.com/2013/11/uae-smartphone-usage-drives-mobile-retail- growth/#.VPdk7fmUdGY  http://www.mcser.org/journal/index.php/mjss/article/viewFile/1787/1791  https://www.academia.edu/7004890/Factor_affecting_consumers_buying_intention_of_s martphones  http://www.tradearabia.com/news/IT_239251.html  http://www.iosrjournals.org/iosr-jbm/papers/Vol16-issue5/Version-3/L016537378.pdf

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