Buyer behavior research on smartphone preference and purchase. Use of methodologies like Conjoint analysis.

1. PRATHAMESH MUZUMDAR
THE UNIVERSITY OF TEXAS-ARLINGTON

2. Introduction
 Game of the Names
 Brand name/ Brand title.
 Preferences.
 Purchase intention.
 Purchase decision.
 Subject- Smartphones
 Multiple brands.
 Multiple products.
 Consistent development in technology.
 Affordable.
 Generate interest in various age groups.
 Approach
 Theoretical approach- Literature review.
 Analytical approach.

3. Literature Review
Internal
Information
External
Information
Brand
Familiarity
Purchase
Intention
Brand
Promise
Recall
Usage
Possession
Word of
Mouth
Blackwell, Miniard, & Engel, 2001
Alba & Hutchinson, 1987
Kim & Lennon, 2000
Sen & Johnson, 1997
Kent & Allen, 1994
Moorthy, Ratchford, & Talukdar, 1997
Yes
Affect
Brand Name

4. Literature Review
Research Objective
Recall
Purchase
Intention
Brand A
Kent & Allen, 1994
Brand Name
Brand B
Brand C

5. Hypothesis
 Hypothesis 1
Brand name influences the consumer preference when selecting a brand. Selection of
a brand occurs when brands are comparable on different attributes.
 Preferences- 2 parts
 Part 1- Features or technical specifications.
 Part 2- Particular product of a particular brand.
 Hypothesis 2
Brand name influences the purchase intentions of a consumer particularly when
selecting an smartphone, irrespective of the features provided by the particular model.
 Does the likelihood of purchase changes when a particular product is tagged with certain brand name.
 Is brand name more important than features.
 Hypothesis 3
Particular set of dimensions compare smartphones rather than each available
technical specification (feature) of the smartphone.
 Most of the smartphones are promoted on multiple technical aspects.
 Does all the aspects matter.

6. Data Collection
 Survey Questionnaire
 43 Questions
 6 Sections
 Groups
 Focus group- Attribute determination.
 Experimental group- 2 sections
 Control group- 3 sections
 Method
 Online Survey- Amazon Mechanical Turk.
 Data
 192 responses out of 200.
 157 responses were used for analysis.

7. Survey Statistics
 Countries
India vs. Others Others
India- 115, Others- 43 USA- 28, Europe- 8, Asia- 3
South America- 2

8. Methodology
Focus Group
Experimental Group Control Group
1. Popular Attributes.
2. Popular Brands.
1. Conjoint Analysis.
2. Paired samples t- Test.
1. Positioning Map.
2. Paired sample t- Test.
3. Multidimensional scaling.

9. Focus Group
 30 responses
Specifications/
Attributes/ Features
1. Dimensions- Height/
Weight etc.
2. Display & user
interface.
3. Keys & input method.
4. Connectivity.
5. WLAN features.
6. Data Networks.
7. Operating frequency.
8. Memory.
9. Power management.
10. Processor.
11. Security.
12. Browsing & internet.
13. GPS & Navigation.
14. Main Camera.
Selected
specifications
1. Operating system
2. Memory
3. Display
4. Camera
5. Battery
Experimental Group
Design
Conjoint Analysis
Reduced no of profiles.
Control Group Design
Multidimensional scaling
Positioning Map
Reduced no of dimensions.
Selected Products
1. Apple iPhone 5
2. Samsung GS 3
3. Nokia Lumia 920
4. HTC 8X

10. Experimental Group Design
 Section- Brand names are not exposed.
 Section 1
 5 questions. Paired sample t –Test.
 Respondents rate- 5 attributes/ features (Pre selected).
1. Brand names not included.
2. Ranking of attributes/ features
depend on ranking of other
features.
Feature evaluation- The questions in this section deal with different features of smart phones.
There are 5 features displayed which are to be ranked from 1 to 5.
4. Rank each of these smart phone features from 1 to 5 as per there importance, 1- Most Important 5-
Least important? Feature- Operating System (Ex- Apple- iOS, HTC- Windows etc).
5. Rank each of these smart phone features from 1 to 5 as per there importance, 1- Most Important 5-
Least important? Feature- Memory (Ex- 8GB, 16GB etc).
6. Rank each of these smart phone features from 1 to 5 as per there importance, 1- Most Important 5-
Least important? Feature- Display (Ex- 4 inch, 4.3 inch, 5 inch etc).
7. Rank each of these smart phone features from 1 to 5 as per there importance, 1- Most Important 5-
Least important? Feature- Camera (Ex- 8 mega pixel, 8.5 mega pixel etc).
8. Rank each of these smart phone features from 1 to 5 as per there importance, 1- Most Important 5-
Least important? Feature- Battery (Ex- talk time, standby time, internet use time etc).

11. Experimental Group Design
 Section 2
 16 profiles.
 4 hidden profile.- (HTC 8X, Samsung GS 3, Nokia Lumia 920, Apple iPhone 5)
Attributes /Existing Product
Profiles
Bundle 9 Bundle 10 Bundle 11 Bundle 12 Bundle 13 Bundle 14 Bundle 15 Bundle 16
Operating System iOS 6 Android 4.0 Windows Android 4.0 Android 4.0 iOS 6 Android 4.0 Windows
Memory 64 16 32 32 32 32 16 64
Display 4.8 4.8 4.5 4.8 4.3 4.3 4.3 4.3
Camera 8.7 8 8.7 8 8.7 8 8.7 8
Battery 1800 2100 2000 1440 1800 2100 2000 1440
Attributes / Existing Product
Profiles
Bundle 1 Bundle 2 Bundle 3 Bundle 4 Bundle 5 Bundle 6 Bundle 7 Bundle 8
Operating System Windows Android 4.0 iOS 6 Android 4.0 Android 4.0 Windows Android 4.0 iOS 6
Memory 16 64 32 32 32 32 64 16
Display 4.3 4.5 4.5 4.5 4 4 4 4
Camera 8 8.7 8 8.7 8 8.7 8 8.7
Battery 1800 2100 2000 1440 1800 2100 2000 1440
HTC 8X Apple iPhone 5Nokia Lumia 920Samsung GS 3

12. Control Group Design
 Section- Brand names are included.
 Section 1
 20 questions.
 Positioning Map.
Please rate different features for a particular smart phone model.
13. Apple iPhone 5- Features- Operating System- iOS 6. (1= Very Unsatisfied, 5= Very Satisfied)
14. Apple iPhone 5- Features- Memory- 16 GB, 32 GB, 64 GB. (1= Very Unsatisfied, 5= Very Satisfied)
16. Apple iPhone 5- Features- Display- 4 inch. (1= Very Unsatisfied, 5= Very Satisfied)
17. Apple iPhone 5- Features- Camera- 8 mega pixel. (1= Very Unsatisfied, 5= Very Satisfied)
18. Apple iPhone 5- Features- Battery- 1440 mAh, Talk time- 6 hrs . (1= Very Unsatisfied, 5= Very
Satisfied)
5 Point Likert scale.
5 questions for each brand.

13. Control Group Design
 Section 2
 4 questions.
 Paired sample t- Test.
5 Point Likert scale.
4 questions- Likelihood of
purchase.
Please rate the likelihood of buying a smart phone considering all the features given above.
34. Apple iPhone 5. (1= Very Unlikely, 5= Very Likely)
35. Samsung Galaxy S3. (1= Very Unlikely, 5= Very Likely)
36. HTC 8X. (1= Very Unlikely, 5= Very Likely)
37. Nokia Lumia 920. (1= Very Unlikely, 5= Very Likely)

14. Control Group Design
 Section 3
 6 questions.
 Multi dimensional scaling- Euclidean distance model.
5 Point Likert scale.
6 combination + Pseudo brand.
Please compare and contrast each of the following pair.
38. Apple iPhone 5 and Nokia Lumia 920. (1= Very similar, 5= Very different)
39. Apple iPhone 5 and Samsung Galaxy S3. (1= Very similar, 5= Very different)
40. Apple iPhone 5 and HTC 8X. (1= Very similar, 5= Very different)
41. Samsung Galaxy S3 and Nokia Lumia 920. (1= Very similar, 5= Very different)
42. Samsung Galaxy S3 and HTC 8X. (1= Very similar, 5= Very different)
43. HTC 8X and Nokia Lumia 920. (1= Very similar, 5= Very different)

15. Hypothesis 1
Brand name influences the consumer preference when selecting a brand. Selection of a brand
occurs when brands are comparable on different attributes.
Experimental Group
Conjoint Analysis
1. Factor importance-
Identify attribute.
2. Market share
simulations- Identify
preferred smartphone.
Paired sample t- Test
1. Attribute ranking.
Control Group
Positioning Map
1. Change in preferences-
Attribute.
2. Change in preference-
Smartphone. Market
share.
Brand Name
Smartphone/
Profile #
Features/
Attribute

16. Hypothesis 1
 Control Group
Results
2.
3.
Smartphone Rankings- Market
share
1. Samsung GS 3- 40.94%
Apple iPhone 5- 40.94%
2. Nokia Lumia 920- 11.41%
3. HTC 8X- 6.71%
Attribute-
1. Operating system
Apple iPhone 5- iOS 6
Samsung GS 3- Android
2. Memory
Apple iPhone 5- 16, 32, 64.
3. Display
Samsung GS 3- 4.8 inch.
4. Battery
Samsung GS 3- 2100 mAH.
5. Camera
Samsung GS 3- 8 m.p

17. Hypothesis 1
 Experimental Group
 Paired sample t- Test.
 Conjoint Analysis
Preferred smartphone.
1. HTC 8X.
2. Apple iPhone 5.
Product
Profiles
Profile 1
(HTC 8X)
Profile 8
(Apple iPhone 5)
Profile 10
(Samsung GS 3)
Profile 11
(Nokia Lumia
920)
Predicted
market shares
12.18
(29.84)
10.91
(26.72)
9.56
(23.42)
8.27
(20.26)
Market Share Simulations.
Market share predictions for different scenarios, using the share of preference Rule.
Attribute Rankings.
1. Operating system.
2. Display.
3. Battery.
4. Memory. Non Significant
5. Camera

18. Hypothesis 1
 Conjoint Analysis
AttributesRespondents /
Attributes and Levels
Average Responses
Operating System
Windows 21.06
Android 4.0 0.23
iOS 6 8.37
Display
4.5 22.60
4 13.01
4.8 13.01
4.3 0.03
Memory
16 39.03
32 4.29
64 0.40
Camera
8 3.27
8.7 0.70
Battery
1800 22.61
2100 16.62
2000 15.06
1440 15.95
1. Windows (21.06)
2. 4.5 inch (22.60)
3. 16 GB (39.03)
4. 8 mega pixel (3.27)
5. 1800 mAH (22.61)

19. Hypothesis 1
 Conclusion
 Smartphone Preferences
 Attribute Preferences.
Experimental Group
Conjoint Analysis
HTC 8X
Control Group
Positioning Map
Samsung GS 3
Apple iPhone 5
Experimental Group
Paired Sample t-Test
Windows.
Display 4.5 inch.
Control Group
Positioning Map.
iOS 6 & Android.
4 inch & 4.8 inch.
Brand Name
Control Group
Questionnaire
Brand Name
Control Group
Questionnaire

20. Hypothesis 2
Brand name influences the purchase intention of the consumer when selecting smartphone
irrespective of the features provided by the particular model.
Brand Name
Experimental Group
Conjoint Analysis
1. Market share
simulations- Identify
preferred smartphone.
Control Group
Paired Sample t- Test
1. Likelihood to purchase-
Smartphone ranking.
Experimental Group
Purchase Intention
Control Group
Purchase Intention

21. Hypothesis 2
 Control Group
 Paired Sample t- Test.
Likelihood of Purchase
 Experimental Group
 Conjoint Analysis.
Preferred smartphone – 1. HTC 8X
2. Apple iPhone 5.
Market Share Simulations.
Market share predictions for different scenarios, using the share of preference Rule.
1. Samsung GS 3
2. Apple iPhone 5
3. HTC 8X Non Significant
4. Nokia Lumia 920
Product
Profiles
Profile 1
(HTC 8X)
Profile 8
(Apple iPhone 5)
Profile 10
(Samsung GS 3)
Profile 11
(Nokia Lumia
920)
Predicted
market shares
12.18 10.91 9.56 8.27

22. Hypothesis 2
 Conclusion
 Likelihood of Purchase.
Experimental Group
Preference
Conjoint Analysis
HTC 8X
Control Group
Likelihood of Purchase
Paired sample t- Test.
Samsung GS 3
Brand Name
Control Group
Questionnaire
1. Price variable not included.
2. Comparisons between profiles are solely on the basis
of features

23. Hypothesis 3
 Particular set of dimensions compare smartphones rather than each available technical
specification of the smartphone.
Control Group
Multi-dimensional
Scaling
1. Bi dimensional model.
2. Dimension definition.
Focus Group
14 Attributes/ Features
5 Attributes/ Features
Control Group
5 Attributes/ Features
Few Dimensions

24. Hypothesis 3
 Euclidean Distance Model
Results
Dim 2
Dim 1
Dim 1
Dim 2
Dimension 1
1. Apple iPhone 5.
2. HTC 8X.
Dimension 2
1.Samsung GS 3
2. Nokia Lumia 920.
Pseudo Brand
1. Huwaei

25. Hypothesis 3
 Euclidean Distance Model
Results
Dimension 1
1. Apple iPhone 5.
2. HTC 8X.
Dimension 2
1.Samsung GS 3
2. Nokia Lumia 920.
Pseudo Brand
1. Huwaei
Stimulus Number Stimulus Name
Dimensions (Axis)
1 (X axis) 2 (Y axis)
1 Apple iPhone 5 1.8257 0.1505
2 Nokia Lumia 920 -1.1767 1.1965
3 Samsung GS 3 0.4764 -1.254
4 HTC 8X -1.2919 -0.451
5 Huwaei 0.1664 0.3581
Stimulus Coordinates
Goodness of Fit
Stress 0.00337
R square 0.99986

26. Conclusion
 Dimension definition
Apple iPhone 5
1. Operating System.
2. Memory
HTC 8X
Samsung GS 3
1. Operating System.
2. Display
3. Battery
4. Camera
Nokia Lumia 920
1. Camera.
2. Battery.
3. Display
Dimension 1
Operating system
Memory
Dimension 2
Operating system
Display
Camera
Comparable Features
Operating systems
Memory
Display
Camera

27. Overall Conclusion
 Hypothesis
 All the three hypothesis have been proved.
 Hypo 1- Brand name influences preferences.
1. Smartphone features.
2. Brand and product.
 Hypo 2- Brand name influences purchase intention.
1. Likelihood of buying changes from control group to experimental group.
 Hypo 3- Two dimensions were found.
1. Comparable features were defined.

28. Future Research
 Segmentation- Positioning.
 Demographics- Gender
 Location
 Income group
 Conspicuous Consumption.
 70% Responses- India
 High price brands- Apple & Samsung(Preferred)
 Low price brands- HTC & Nokia.
 Effect of Price.
 Interaction between brand name and price.
 Low cost smartphone in India- Nokia Lumia 610- $250.

29. Thank You