Consumer Buying Behaviour in Smartphones Shaikh Farheen: Journal of Management/Showtoc
Consumer Buying Behaviour in Smartphones Shaikh Farheen: Journal of Management/Showtoc
ABSTRACT
Recent development in mobile has made a new kind of device that is smartphone. It plays very important role in
personal as well as business life. The purpose of writing this research is to find out the buying behavior of
consumers in smartphones. The responses were selected through structured questionnaire. The data was collected
from 67 individuals on non-probabilistic techniques. There are many internal and external factors which affect the
consumers buying behavior.
INTRODUCTION
The increase in number of using smartphones has made the study more interesting towards
consumers buying behavior in smartphones. Nowadays people are mostly addicted towards
smartphones. It is mostly use to make calls, to send text messages, search on internet and to use
various apps and much more. The aim of this research is therefore to find out consumer buying
behavior in smartphones. The research is to find out why people prefer smartphones? What
influences to purchase the smartphones? Different people have different factors in life that
influences the purchase behavior.
It includes both internal and external factors which influence the purchase of smartphones. It also
explains the factors of people’s affecting their purchase behavior. It can be external influence or
internal which affects in some or other way in buying behavior. Marketing activities mostly
influences the purchasing behavior because it is from the marketing activities consumer come to
know about the new product which is launch in the market. Demographics factors is closely
related to buying behavior it may be because of income, age, gender, occupation etc. As per the
research teenagers are found to be mostly addicted towards smartphones rather than old age
person. Culture is the norms, traditions etc. which may affect in some or other way in buying
behavior.
The most commonly used phone is basic phone in which you can have voice call and send text
messages. Now the world is changing due to change in technology, the demand for smartphone
is also increasing. It plays very important role in today’s society. Smartphones is an easy way of
communication and administered by the systems such as IPHONE OS, Android etc. Smartphone
is playing the role of computer which can be used for sharing information, browsing etc.
Smartphones are also available at low prices but sometimes people prefer expensive smartphone.
The research is on what factors influence the buying behavior of consumers in smartphones.
Literature Review:
Hand phone and internet are the two technologies that have major impact on politics, economy
and social in the 21st century (O’Leary & O’Leary, 2005). The converging of hand phone and
internet (Baily et al, 2001) had given birth to smartphone. The introduction of the first iPhone in
2007, since the smartphone became a mass consumption product, though smartphones have been
around for many years. The first device able to combine voice, data and PIM applications was an
IBM product known under the name of “IBM Simon”. The IBM Simon was first presented in
1992 at the CONDEX, the computer industry trade show that takes place in Las Vegas, and was
launched into the market the following years by a company called BellSouth (Schneidawind,
1992)
Every person has different needs, lifestyle, wants etc. Some people may prefer to buy high price
of smartphones it may be because they are willing to pay more. Some consumers are more
conscious towards price, quality, and features. In this technology world consumers come across
different level of satisfaction towards the smartphones. When consumer think to purchase the
phone he/she has to go various process such as recognition, search information, evaluation,
purchase and lastly is feedback (Blackwell Miniard, and Engel,1995). It is found in the survey
that the teenagers and the youth mostly seek advice from friends and relatives. According to
NAR’s CENTRE for Realtor (2009), most of the smartphone category used in social media is
Facebook, Twitter etc. The smartphone users use mostly for getting connected to colleagues,
friends.
In other words, consumer recognized its needs and then search for relevant information and
decides whether to purchase or not. Smartphones markets are divided into 2 types that is camera
group and second are performance and the outer look of the phone. Camera plays a very
important role while purchasing the phones. Most of the people also give much importance as
equivalent to camera that is performance and outlook such as integration of hardware and
software, design of the phone, price, features this are all the factors which affect the buying
behavior of consumers. Most of the person are most brand oriented that is they give much
importance to brand. Now the market of the smartphone has become too competitive and
companies do their best to satisfy the needs of consumers.
Research methodology:
Age
In terms of age the youth that is 16-30 found
100.00% to be more as compare to other age groups.
80.00% It may be because of they want to be socially
60.00% connected and technology friendly. The
40.00% youth are found to be more active on the
20.00% basis of smartphones it may be because of
0.00% features and apps which make the them
Below 16-30 31-45 45 &
more attractive.
15 above
Gender:
In terms of gender it is found that there is no
bias in buying behavior of smartphones. In
100.00%
80.00%
this technology world everyone needs
60.00% smartphones. In some or other way
40.00% smartphone plays very important role in
20.00% everyone’s life. The apps and the features
0.00%
are the main factors which make the
Male Female Other
consumer to buy the smartphones.
Occupation:
62% of the respondents fall in the student
category which is more as compare to other
100.00%
category. As the world changes the technology
80.00%
also gets on changing in the same way
60.00%
smartphones keeps updating as per the needs of
40.00%
consumers. Now the educational institutions are
20.00%
also providing education content online due to
0.00%
which many of the students are shifting to
Self - Student Other
employed
smartphones.
IDEAL BUDGET
The ideal budget of consumers is mostly in
between the range of 10,000-15,000. As per
100.00%
the survey the monthly income which is
80.00% between 0-2.5 lakhs which is high as compare
60.00% to other income group. So the budget between
10,000-15,000 is suitable to 0-2.5 income
40.00%
group. The consumers get all the features in
20.00% the same range that is 10,000-15,000 as
0.00% compare to higher range of smartphones. So
0-5,000 10,000- 20,000- 30,000 most of the time people prefer to have
15,000 25,000 above smartphones according to budget as per their
income.
Research Objectives:
To study about consumer buying behavior towards smartphones.
Proposed Hypothesis was as follows:
H1: On an average the amount spend on present smartphone by people is Rs 15000/-
H2: Less than 30% of respondents purchase the phone annually
H3: More than 60% of respondents get influence by social media for purchase of phone
H4: Budget of phone is not independent of education.
Research Design:
Research Design is carried out in two phases that is exploratory and descriptive.
Research type: It is quantitative type of research.
Data Sources:
Information is gathered from primary data and secondary data.
Information collected from secondary data that is internet search, published journals.
Primary data was collected through questionnaire through mail. The numbers of respondents are
67.
Sampling:
The survey was done on non-probabilistic. In which we got 67 responses as it was done on
sample basis. It was done on questionnaire and sends it through mail, What Sapp, Facebook to
get the responses.
Data Analysis:
Spending on accessories:
Refurbished Phone
.
Hypothesis 1: On an average of amount spend on present smartphone is not Rs 15000/-
Business Decision: According to the t test we can conclude that the amount spend on
Hypothesis 2: Less than is
present smartphone 30%
notofRsrespondents purchaseofthe
15000/-. Majority thephone annually
consumers spend more than Rs 15000/-
to purchase. So the companies should come up with more features and apps which cost more
N H0:µ˃30
than 15000/-
A Ha:µ˂30
Business Decision: It can be
P Left Tail
concluded from P test more than 30%
of the respondents purchase the phone
T P Test annually. Most of the consumers have
Confidence level 99% the habit to change the phone
A 0.1 frequently. The companies should
P 0.1 come up with new features and apps
P Critical -1.28 for those consumers who frequently
P' 16.22% purchase the phone and discounts,
P 30% offers should also be provided in order
q(1-p) 70% to increase the sale.
p*q 0.21
sqrt(p*q) 0.46
sqrt(p*q)/n 0.007
P'-P -23.78%
Sqrt((p*q)/n) 0.007
P Observed 33.97
P 1
A 0.1
Failed to Reject the null
Rejection
Hypothesis 3: More than 60% of respondents get influenced by social media for purchase of phone
N H0:µ˂60
A Ha:µ˃60
T Right Tail
T P Test
Confidence Level 99%
Alpha 0.1
P 0.9 Business Decision: According to p
C (p critical) 1.28 test it can be concluded that less
P' 44.00% than 60% respondents get
P 60% influenced by social media. It may
P'-P -16.00% be because of not every person use
q=(1-p) 40% social media. Companies should
p*q 24%
use new marketing techniques in
order to make awareness about
SQRT(P*Q) 0.49 their product it may be in the form
of marketing activities such as
SQRT(P*Q)/n 0.01 promotion, print media.
P'-P -0.16
Sqrt(p*q)/n 0.01
O(p observed) -21.88
P( p value) 1.00
A( Alpha value) 0.9
D( Decision) Failed to reject null
Hypothesis 4: Budget of the phone is not independent on education
observed Total %
Graduate 1 9 7 8 2 3 3 33 52%
Higher
Secondary 2 5 1 1 1 1 11 17%
Other 1 1 2 3%
Post Graduate 2 6 2 3 3 2 18 28%
Total 3 17 14 12 3 8 7 64 100%
Expected Total
Post Graduate 0.84 4.78 3.94 3.38 0.84 2.25 1.97 18.00
(Fo-Fe)^2/Fe Total
16.58
df=(r-1)*(c-1) 18
C(Chi critical) 17.34
O(Chi Observed) 16.58
P(Probability) 0.75
A(Alpha) 0.5
D(Decision) Failed to reject the null
Limitation:
1) Research is not done on entire population.
2) It is not done separately for rural and urban.
3) As compare to primary data secondary data is limited because smartphone market goes
on changing everyday which makes smartphones markets obsolete.
4) Sometimes there can be bias on the basis of researcher preferences.
References:
http://s3.amazonaws.com/academia.edu.documents/35485578/3.
http://research-methodology.net/a-brief-literature-review-on-consumer-buying-behaviour
https://www.scribd.com/doc/86301776/Consumer-Buying-Behaviour-Towards-
Smartphone
http://www.essay.uk.com/essays/marketing/research-proposal
http://research-methodology.net/research-methods/research-limitations
http://dissertation.laerd.com
http://www.emeraldinsight.com
http://iosrjournals.org
https://www.scribd.com/doc/31550174/Study-of-Consumer-Buying-Behavior-regarding-
the-different-Brands-of-Mobile-Handsets
https://www.scribd.com/document/25486755/Study-of-Consumer-Buying-Behaviour
http://www.slideshare.net/vibhoragarwal9693/a-project-report-on-a-study-on-consumer-
buying-behavior-towards-smartphone
http://www.slideshare.net/jenishsopariwala/consume