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European Journal of Business and Management                                                               www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
                                  2839
Vol 4, No.12, 2012



  Factors Affecting Consumers’ Choice of Mobile Phone Selection

                                                 in Pakistan
                                                   Naveed Saif
                       PhD scholar Gomal University D.I Khan Bannu 28100 KPK Pakistan
                                                         Khan,Bannu
                        Tel: +92-333
                                  333-9300811 Email: Naveedsaif_naveedsaif@yahoo.com
                                                  Nasir Razzaq
                        PhD Scholar SZABIST Islamabad Rawalakot 12350 AJK Pakistan
                                               Islamabad,Rawalakot
                           Tel: +92-336
                                     336-5505398 E-mail: master_nasir18@yahoo.com
                                               Muhammad Amad
                MBA Institute of Management Sciences Peshawar Charsada 24420 KPK Pakistan
                          itute                         Peshawar,Charsada
                         Tel: +92-333
                                    333-9300811 E-mail: Muhammad Amad@gmail.com
                                        Sajid Gul (Corresponding Author)
            Faculty of Administrative Sciences Air University Islamabad Mardan 23200 KPK Pakistan
                                                              Islamabad,Mardan
                             Tel: +92
                                  +92-332-8102955 *E-mail: sajidali10@hotmail.com

Abstract
The study discusses the factors that affect/motivate Pakistani consumers in their mobile phone choice decision.
A sample of 100 people was taken by using the sampling method of Convenience Sampling (or Accidental
Sampling). For this particular study four important factors i.e. price, size/shape, new technology features, brand
name were selected and were analyzed through the use of questionnaire in registering consumers’ perception of
these factors. From the analysis it is clear that consumer’s value new technology features as the most important
variable amongst all and it also acts as a motivational force that influences them to go for a new handset
purchase decision. The study also discusses that when selecting between different mobile phone handsets
                        he
consumers prefer well known brands instead of non familiar brands or Chinese handsets. The study also shows
that price does affect consumers’ choice for a mobile phone but becomes less important of a factor as we move
from low monthly income to higher income earning consumers. From the study it is clear that consumers in
Pakistan are well aware of the new technology trends in the mobile phone industry. The study also reveals that
male respondents were more interested in the new technological developments in the mobile phone industry as
compared to female respondents.
Keywords: Nokia, LG, Samsung, Consumer Preference
           :

1. Introduction
It started in USA on June 17, 1946 when the very first cellular telephone call was engineered in the city of St. Louis
Missouri. But the then system was impractical if we compare it to present day mobile phones because it weighted
80 lbs and cost $30 US dollars on monthly basis along with that 3 40 cents were also charged on every local area
                                                                   30-40
call. The premier economically viable fully automatic mobile network known as the first generation i.e. 1G was
initiated in Japan in 1979 from NTT ( i.e. Nippon Telegraph and Telephone Corporation) by at fir concentrating
                                                                                                  first
just on metropolitan parts of the city of Tokyo. During the next five operational years NTT’s service expanded and
covered the entire Japanese population and hence became the pioneer nationwide first generation network of the
world. World’s first ever modern technology based network i.e. Second Generation 2G mobile systems was
                s
launched in Finland by Radiolinja in 1991 which operated on the GSM standards and gave rise to for the first time
competition in telecom services providers at a time when the already experienced 1G NMT Network of Telecom
Finland was challenged by Radiolinja. The year of 2001 saw the first totally commercial launching of third
generation i.e. 3G mobile technology and since then mobile phones and mobile phone services ha seen an  have
exponential growth throughout the world and surely it can be said that the world has seen a communication
revolution because of this technology. Instaphone could be rightly called the pioneer of cellular industry in
Pakistan it started its operations in Pakistan in 1991 as an APMS mobile service provider. In 2004 Mobilink
                              tions
became the first GSM service provider in Pakistan and after the introductionof GSM service in Pakistan the
industry has seen many new players and tremendous growth. In the beginning the target market comprised of
                                                                         beginning
upper class consumers but the industry’s rapid growth started after 2000 01 and today it has even penetrated
                                                                         2000-01
consumers belonging to the lower class. Nokia, Sony Ericsson, Samsung, LG and Motorola at present are the
leading mobile phone manufacturers in Pakistan. The telecom sector of Pakistan during the past decade has
      ng
contributed enormously to the overall development of Pakistan. This particular sector is constantly achieving high
growth rates in the country. It is believed to be achieving growth every year despite economic setbacks faced by
                                    believed


                                                         16
European Journal of Business and Management                                                              www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
                                  2839
Vol 4, No.12, 2012

Pakistan. During the month of October, 2010 mobile service subscribers in Pakistan exceeded the psychological
mark of 100 million (The Express Tribune, 2010). Similarly, it is believed that Pakistan amongst all south Asian
                                                                     believed
regions has the highest cellular penetration rate. According to Pakistan Telecommunication Authority (2010), the
market leader is still Mobilink with 30 million subscribers, with Telenor enjoying the second spot havi 21
                                                                                                         having
million users, with 20 million users Ufone is in third place, Warid resides in fourth place having 18.14 million
subscribers and with 6.48 million subscribers Zong is at the last. Every player in the industry is working hard to
expand the services throughout the country and are entering to regions like Azad Kashmir, Tribal Areas and
                        roughout
Northern Areas which are still not fully covered. So far five tribal agencies of FATA have been covered. We have
chosen the topic of the study because of our personal interest in mobile handsets and the industry as a whole. This
                                                        interest
research attempts to rank factors affecting consumer’s preferences for mobile phones. This study can help
advertisers to focus on that attribute more which is ranked highly by the consumers. This re
                                                                                          research can also help the
mobile phone manufacturer/marketer in Pakistan to recognize the potential attribute positioning errors (if any).
Utmost effort has been put in to the study in making it accurate and to make it possible to be used as a reference
material for similar studies.

2. Literature Review
2.1 Consumer Purchase Behavior
In order to comprehend an individual’s choice in a cell phone’s selection or any other product, it is imperative to
study customer’s purchase behavior. A definition of consumer behavior given by Perner (2009) “It is the
study of groups, organizations or individuals and also the procedures by which they select, acquire, use and
dispose products, ideas, experiences or services in order to fulfill their needs and wants and the pot
                                                                                                   potential impacts
that these procedures have on the consumer and the society as whole”. From the perspective of marketing
consumer’s purchase process can be categorized into a five step problem solving process i.e. 1. Need, 2.
information gathering, 3. Evaluating the given alternatives, 4. Purchase activity, 5. Post purchase status (Dorsch,
                                   ting
Grove and Darden, 2000). This five step process of decision making is most suitable for a purchase decision that
requires problem solving behavior or complex decision making process and not for purchase decisions related to
                                                           making
low involvement products. Similarly the purchase decision for a new handset follows the same buying process
but in some instances it may also be affected by symbolic preferences linked to some brands. In studying
consumer choice behavior it’s important to take some general conditions into consideration. Considering the case
of the classical problem solving buying process behavior, it is almost always the case that consumers go for
information search before taking purchase/choice decision. And it is also common in such behavior that
consumers’ decision practice is directed by previously made likings for some specific alternatives. So it shows
that customers are expected to formulate their selection decision based on the limited information search activity
that they conducted (Moorthy, S., Ratchford and Talukdar, 1997) rather than a detailed evaluation of all the
possible alternatives (Chernev, 2003). Laroche, Kim, and Matsui (2003) opined that along with info       information
search evaluation of alternatives is an important activity that determines consumer’s choice and it is often
influenced by “Cognitive Heuristics” or in simple words a buyer choose a particular product provide if it fulfills
his perceived values based on his past experiences. In this specific technique of assessment a buyer automatically
                          ed
eliminates a brand that do not meet his set principles and even if it does, it does not have one or two attributes of
extreme importance to him even it has all other attributes. In this study the analysis would be limited to
consumer’s choice as to which product to purchase from a given set of alternatives and whether to purchase or
not.
2.2 The Status of Pakistan’s Telecom and Handset Market
The past decade has seen a telecommunication revolution not just in Pakistan but throughout the world. The
telecom industry of Pakistan is estimated to be rising at a rate of 170% annually. According to Pakistan
                                                              at
Telecommunication authority 2.7 million subscribers gets added into the industry on monthly basis (Ansari and
Khan, 2009). Shariq Syed (2008) suggests that Pakistani mobile phone market has played the most i     important part
in the rise of telecom business in Pakistan. The Pakistan mobile handset market should be given equal credit for the
enormous growth of Pakistan’s telecom sector along with telecommunication service providers. Competitive
rivalry for market share is still intense with the leadership position dominated by Nokia while Samsung benefits
                     hare
from the growing market for very low cost handsets. The gray market remains a key issue with 20%  20%-22% share of
total sales estimated for 2008 (Kerr and Harris 2008). The handsets distribution market is dominated by handful of
                                Kerr      Harris,      .
companies and among them United United-Mobiles, Advance-Telecom and Mobile-Zone represent the largest phone
                                                                                   Zone
distributors. Nokia is the undisputed market share leader of cellular handset market of Paki
                                                                                           Pakistan followed by two
Korean manufacturers Samsung and LG. Nokia has 48 percent market share but its declining steadily due to
competition from other manufacturers and especially from Chinese handsets. Samsung has seen tremendous rise in
their market share i.e. having 8% market share in the year 2006, its market share has increased to 30% in 2008 and
still going strong. LG is also enjoying favorable growth in market share with its success due to two highly


                                                         17
European Journal of Business and Management                                                                www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
                                  2839
Vol 4, No.12, 2012

successful handset models that were LG, KG195 and LG, KG270. Motorola and Sony Ericsson are showing
                                                             LG,
un-impressive performance with just 5% and 1% share in the total Pakistani handset market (Syed, 2008). Demand
    impressive
for mobile phones in Pakistan has surged up their imports highly; it has seen approximately 100 p      percent increase
in-terms of their imported costs during the first month of current financial year 2010 11. The Federal Bureau of
   terms                                                                               2010-11.
Statistics (FBS) Pakistan indicates the import bill of cellular handsets reached 39 million dollars during the month
of July as compared to the same month’s cost last year which was at US dollars 19.59 million thus showing a
growth of 99.15%. Similarly mobile accessories expenditure was 27 % higher as weighed against the month of
June which was $30.8 million. Altogether according to FBS the import of handsets for the year 2009   2009-10 moved up
to 215 million US dollars as to US 139 million dollars in the prior year indicating a surge of 54.6%. According to
the representative of Karachi Electronic Dealers Association (KEDA) representative 55 percent increase in
                                                                                 representative
imports of cellular handsets is due to greater demand of Chinese handsets (      (Khan, 2010). But the branded phone
                                                                                               ).
manufacturers like Nokia, Samsung, LG, Sony Ericsson etc have managed to maintain their market share among
the masses of the society who still prefer branded sets compared to Chinese handsets. Pakistan’s handset market is
unique in the sense that it sees a surge in sales just before and after the Eid festival (“Mobile handset import bill up
100 percent”, 2010). Mr. Imran Zaki, marketing head at LG electronics reports that demand from the market is
                                    Zaki,
constantly increasing day by day particularly in entry stage segments, that includes lowest costing handsets
ranging between Rupees 1200 to Rs 2000.

3. Methodology
3.1 Sample and Sampling Techniques
A sample of 100 people was taken by using the sampling method of Convenience Sampling (or Accidental
Sampling). In Convenience Sampling (also known as opportunity or grab sampling technique) a sample is taken
from the population which is at convenience or in other words which is close at hand and it is a form of
non-probability sampling method. Since lack of financial resources, time constraint and a study conducted by a
     probability
single researcher, convenience sampling was adopted as the population sampling technique for this particular
                                                               population
research.
3.2 Survey Methodology
In order to test the hypothesis a questionnaire was designed to find out as to what are the factors that determine
the choice of a mobile phone selection in Pakistani consumers and to study which factors are valued the most
and how much effect does demographic differences have in mobile phone preference amongst consumers
belonging to diverse demographic sets. A sample size of 100 respondents was taken by using Convenience
Sampling method. Most of them were circulated amongst the students of Institute of Management Sciences and
             ethod.
Edwardes College Peshawar, some of them were also distributed amongst the employees of Accountant General
Office Peshawar. The hypotheses were tested by asking different relevant questions regarding the
pre-determined hypothesis and results were processed using SPSS software by using frequency distribution
    determined
tables and cross tabulation. Based on the results of the questionnaire and its analysis various conclusions were
derived and recommendations were given so as to how better market mobile handsets to consumers of Pakistan.
3.3 Hypothesis Formulation
H1: When choosing between different mobile phone models, consumers prefer well known brands.
                                                                                well-known
H2: Price has a direct effect on consumer’s mobile choice decision.
                       ct
H3: New technology features increases consumers’ motivation to acquire new phone models.

4. Analysis and Results
On the basis of past research on the topic under study hypothesis were developed and to test t  these hypothesis a
questionnaire was designed and distributed among 110 respondents amongst which 100 questionnaires were
useable. Among the total 100 respondents 61 of them were male and 39 of them female. For demographics
Gender, Age and Income level were selected. The majority of the respondents were university students of
Institute of Management Sciences Peshawar belonging to different BBA, MBA and MS programs, college
students of Edwardes College were also a part of the study while questionnaire were al circulated amongst
                                                                                           also
staff of Accountant General Office Peshawar. The respondents belonged to three different age i.e. 15 15-25, 26-35,
36-50.
4.1 Demographics
When respondents were asked do you own a mobile phone? A total of 96% respondents had mobile phon           phones
while 4% still were a segment that did not own a mobile phone indicating that this 4% can also be a market
worth capturing. The overwhelming amount of respondents having a mobile phone shows that nowadays cell
phones have become a must have accessory fo nearly everyone.
                                            for
When asked do you see chiness mobile phone as replacement for current well known brands? 66% percent
respondents believed that they are not any threat for the present brands indicating that famous brands still have a


                                                          18
European Journal of Business and Management                                                            www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
                                  2839
Vol 4, No.12, 2012

strong following but 34% of the respondents were seeing them as the replacement for the present established
                     t
brands, but no one in the study possessed a Chinese mobile indicating that it was just a matter of perception and
people were still brand loyal to the present brands because their actions did not reflect their perception.
                                                     because
When asked how many mobile sets do you use/have at present? 62% respondents had a single mobile handset
while 24% had two mobile phones, 5% had three phones and 9% had four or above. These are importa findings
                                                                                                   important
because they present an opportunity for mobile handset providers to study why people carry multiple handsets
and how by understanding their reasons one could target them with their products.
When asked which company’s mobile handset do you hav 73% of the respondents had Nokia handsets
                                                             have?
indicating that Nokia is by far the market leader followed by Samsung having 18% of the respondents using it
while Sony Ericsson once a dominant player in the market just had just three respondents owning its ha       handsets
while Motorola was struggling with two votes. 4% people under study used other brands that were HTC, iphone
and LG.
When asked which factor to you is the most important in purchasing a mobile phone for yourself? Out of
the four factors selected for the study by the help of past research “New Technology Features” was the most
important reason to purchase a mobile phone for 47% of the respondents while followed closely by 37%
respondents preferring “Brand Name” indicating them to be brand conscious. Surprisingly just 10% of the
                                                                                      Surprisingly
respondents valued Price as the most motivating factor which shows the fact that in purchasing a mobile phone
not great many people in Pakistan rank price as the determining factor in a mobile phone purchase decision. 6%
of the people took size/shape as the most important factor for them in purchasing a mobile phone.
When asked how often do you buy a new mobile phone for yourself? 38% respondents do not buy a new
handset for themselves until their present set stops working and is of no use to them while 36% purchase a new
                                                                   is
set for themselves every year. 12% of the respondents buy a new set for themselves every six months. 14% of
the people who were studied showed that they are motivated to buy a new set for their selves only when a new
model of their present set arrives in the market which shows that they are brand loyal.
When asked do you prefer Chinese mobiles over the branded ones? This question’s findings indicates that 89%
people do not see Chinese mobile phones dominating and replacing the current brands which is consistent to the
                                                         and
results of the previous question as well in which 66% respondents did not see Chinese mobile as replacements
for the familiar brands. It is also obvious from the results of the above question that maximum number of the
                                                                                            maximum
research subjects believed the branded mobiles are here to stay and are not under any impending danger from
Chinese phones hence consequently proving hypothesis H3.
When asked do you believe cell phone is a “status symbol”? Very often things of necessity become things of
luxury showing one’s Status in a society and mobile phones to some extent do become symbols of an individual
achievement/status. 57% respondents replied negatively to it and did not agree to the notion that mobile is a
status symbol while 43% replied positively indicating that a considerable number of individuals still take mobile
phones a sign of Status and achievement.
When asked in what price range does your current mobile phone lie? The respondents had mobile phones from
diverse price ranges with majority i.e. 29% of them had handsets in the price range of 11000 to 15000 rupees, 20%
in the range of 6000 to 10000 rupees and 24% in the range of 2000 to 5000 rupees. While 12 respondents owned
a mobile phone worth more than 25000 rupees.
                              han
When asked does a new model of your mobile phone motivate you to buy a new set for yourself? This question
was asked to know how brand loyal customers are to their present brand and whether they are motivated by the
new models with new technology features of their present handsets or not. 69% of them do get motivated while
                         chnology
31% replied negatively. The results of this particular questions also proves H3 hypothesis which says that
features that are new in a mobile phone as compared to other sets of rival companies increases customers’ drive
                                                                sets
to acquire them.
When asked rate price in order of importance to select a new mobile phone? Likert scale was developed to
study as to how important price is to a Pakistani consumer in purchasing a mobile ph             phone. Most of the
respondents agreed that for them price is an important factor in mobile handset purchase decision, 23%
respondents slightly agreed to it, 19% agreed while 18% highly agreed. Only a few disagreed to it while 21%
were neutral to it. The above question also answers and tests Hypothesis H2 and the results show that a plain
                              e
majority do agree that price does affect them in their purchase and choice of cell phones thus supporting the
Hypothesis H2 in result.
When asked a mobile phone is just a de   device for communication and that’s it? The answer had a split mandate
only a slight majority replied positively while many disagreed to it. While 24% of the respondents were
indecisive.

5. Conclusion
The study discusses the factors that affect/motivate Pakistani consumers in their mobile phone choice decision.
                                                     Pakistani


                                                        19
European Journal of Business and Management                                                           www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
                                  2839
Vol 4, No.12, 2012

A sample of 100 people was taken by using the sampling method of Convenience Sampling (or Accidental
Sampling). For this particular study four important factors i.e. price, size/shape, new technology features, brand
name were selected and were analyzed through the use of questionnaire in registering consumers’ perception of
these factors. From the analysis it is clear that consumer’s value new technology features as the most important
variable amongst all and it also acts as a motivational force that influences them to go for a new handset
purchase decision. The study also discusses that when selecting between different mobile phone handsets
consumers prefer well known brands instead of non familiar brands or Chinese handsets. The study also shows
                                                               brands
that price does affect consumers’ choice for a mobile phone but becomes less important of a factor as we move
from low monthly income to higher income earning consumers. From the study it is clear that consume in
                                                                                                    consumers
Pakistan are well aware of the new technology trends in the mobile phone industry and are techno savvy. The
study also reveals that male respondents were more interested in the new technological developments in the
mobile phone industry as compared t female respondents.
                                      to

References
Ansari, S. and Khan, A. (2009). Telecommunication Trends in Pakistan. Market Forces, 213
                                                                                      , 213-217.
Batra, R. and Ahtola, O.T. (1990). Measuring the hedonic and utilitarian sources of consumer attitudes.
Marketing Letters, 2 (2), 159-170.
Chernev, A. (2003). When more is less and less is more: The role of ideal point availability and assortment in
consumer choice. Journal of Consumer Research 30 (2), 169-184.
                                         Research,
Dorsch, M.J., Grove, S.J. and Darden, W.R. (2000). Consumer intentions to use a service category. Journal of
                                                                 intentions
Services Marketing, 14 (2), 92-118.
Kerr, D. and Harris, S. (2008), Pakistan Mobile Handset Market Outlook. Retrieved, 22
November,2010from<http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=3844>
November,2010from<http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=
Khan, M. (2010). Mobile Phone Imports Increased by 55 Percent. Retrieved, 20 November, 2010 from
<http://propakistani.pk/2010/04/28/mobile-phone-imports-increased-by-55-percent/>
<http://propakistani.pk/2010/04/28/mobile
Laroche, M., Kim, C. and Matsui, T. (2003). Which decision heuristics are used in consideration set formation?
                                                                         are
Journal of Consumer Marketing, 20 (3), 192
                                ,         192-209.
Mobile handset import bill up 100 percent (2010). Daily Times, 5 September, Retrieved, 22 November, 2010
                                                                  ,
from < http://www.dailytimes.com.pk >
Mobile phone users reach 100 million mark (2010, September 30). The Express Tribune.
Moorthy, S., Ratchford, B. and Talukdar, D. (1997). Consumer information search revisited. Journal of
Consumer Research, 23 (4), 263-277.
                                  277.
Pakistan      Telecommunication        Authority,     telecom    indicators.   Retrieved     14     September,
2010,from<http://www.pta.gov.pk/index.php?option=com_content&task=view&id=1413&Itemid=687>
Perner, L. (2009). Consumer Behavior: The Psychology of Marketing. Retrieved 10 November, 2010
from < http://www.consumerpsychologist.com/>
Syed, S. (2008), The State of Pakistan’s Handset Market – An Analysis. State Of Telecom Industry Pakistan
Blog.             Retrieved             10              November,            2010            from            <
http://telecompk.net/2008/08/29/the--state-of-pakistan%E2%80%99s-handset-market-%E2%80%93
                                                                                    %E2%80%93-an-analysis/
>




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European Journal of Business and Management                                                         www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
                                  2839
Vol 4, No.12, 2012

Demographics




                                            Income/pocket money per month



                                  Frequency        Percentage     Valid Percentage Cumulative Percentage
               2000-5000
                                       37             37.0             37.0                37.0

               6000-10000              37             37.0             37.0                74.0
              11000-15000              19             19.0             19.0                93.0
              16000-25000              6              6.0               6.0                99.0
                 40000+                1              1.0               1.0                100.0
                  Total             100.00            100              100




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European Journal of Business and Management                                                             www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
                                  2839
Vol 4, No.12, 2012




     Q.4. Which company’s mobile phone do you have?

                                                 Frequency        Percent   Valid Percent Cumulative Percent

     Valid Nokia                                    73             73.0         73.0            73.0

             sonny ericsson                         3               3.0         3.0             76.0

             motorola                               2               2.0         2.0             78.0

             samsung                                18             18.0         18.0            96.0

             Other                                  4               4.0         4.0             100.0

             Total                                 100            100.0        100.0


     Q.5. Which factor to you is the most important in purchasing a mobile phone for yourself?

                                                                             Validity of     Cumulative
                                                 Frequency        Percent    Percentage      Percentage

             brand name                            37.0             37           37              37

             Price                                  10             10.0         10.0            47.0

             new technology features                47             47.0         47.0            94.0

             size/shape                             6               6.0          6               100

             Sum=                                  100.0           100          100




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European Journal of Business and Management                                                              www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
                                  2839
Vol 4, No.12, 2012




     Q.6. How Often do you Buy New Mobile for Yourself?

                                                 FREQUENCY        PERCENT VALID %age Cumulative          %age

             Within Six Months.                      12                 12.0    12.0             12.0

             Within a year.                          36                 36.0    36.0             48.0

             When new model of your
                          l
                                                     14                 14.0    14.0             62.0
             present set arrives.

             When the last one stops
                                                     38                 38.0    38.0             100.0
             working.

                                                    100-0           100.000    100.000




    Q.9. In what price range does your current mobile phone lie?

                               Occurrence         %age       Valid %            collective Percentage

          2000-5000                 24             24             24                     24

          6000-10000                20             20.0           20.0                   44.0

          11000-15000               29             29.0           29.0                   73.0

          16000-25000               15             15.0           15.0                   88.0

          25000+                    12             12.0           12.                    100

                                100.000            100           100.00




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European Journal of Business and Management                                                                www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
                                  2839
Vol 4, No.12, 2012



Q.10. Does a new model of your mobile phone motivate you to buy a new set for yourself?




     Cross Tabulation Analysis
                       Gender * Which company’s mobile do you have? Cross Tabulation

                                                    Which company’s mobile do you have?

                                 nokia        sonny ericsson    motorola       samsung       other       Total

     Gender       male                   48                1               1         11              0           61

                  female                 25                2               1             7           4           39

                  Total                  73                3               2         18              4       100




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European Journal of Business and Management                                                                             www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
                                  2839
Vol 4, No.12, 2012




 Gender * Which factor to you is the most vital factor in purchasing a cellular phone for yourself? Cross
                                                           Tabulation

                              Which factor to you is the most essential in purchasing a cell phone for yourself?

                                                                     new technology
                            brand name               price              features           size/shape                   Total

Gender       male                21                    6                   32                  2                         61

             female              16                    4                   15                  4                         39

             Total               37                   10                   47                  6                        100
  Age Range * Which factor is most important to you in purchasing a mobile phone for yourself? Cross
                                                           Tabulation

                                                                  Most important factor?

                                                                        new technology
                               brand name               price              features           size/shape                 Total

Age Range        15-25                28                   9                    35                     6                   78

                 26-35                8                    1                     8                     0                   17

                 36-50                1                    0                     4                     0                   5

                 Total                37                   10                   47                     6                  100

    Gender * Does a new model of your mobile phone motivate you to buy a new set for yourself? Cross
                                                           Tabulation

                            Does a new model of your mobile phone motivate you to buy a new set for yourself?
                                                            phone

                                  Agreed                          Disagreed                                Sum total

Gender       Male                     44                              17                                     61.0

             Female                   25                              14                                     39.0

                                      69                              31                                    100.00
            Gender * In what price range does your current mobile phone lie? Cross Tabulation

                                              In what price range does your current mobile phone lie?
                                                                              rrent

                          2000-5000           6000-10000        11000-15000          16000-25000           25000+         Total

Gender      male                      17                15                  16                     8                5             61

            female                        7                5                13                     7                7             39

            Total                     24                20                  29                 15                12              100




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European Journal of Business and Management                                                                 www.iiste.org
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                                  2839
Vol 4, No.12, 2012




n what price range does your current mobile phone lie? * Which factor to you is mainly essential in
purchasing Mobile set for yourself? Cross Tabulation

                                                                             Vital Factor?

                                                                                   new
                                                                              technology
                                            brand name           price          features       size/shape   Total

In what price range          2000-5000                10           4               10                0        24
does your current
                             6000-10000
                                  10000               6            4                9                1        20
mobile phone lie?
                             11000-15000
                                   15000              16           1               12                0        29

                             16000-25000
                                   25000              5            1                7                2        15

                             25000+                   0            0                9                3        12

                             Total                    37           10              47                6       100
  Monthly income/pocket money? * Which factor to you is the most important in purchasing a mobile
                                         phone for yourself? Cross Tabulation

                                          Which factor to you is the most important in purchasing a mobile phone
                                                                            for yourself?

                                                                         new technology
                                         brand name        price            features         size/shape     Total

Monthly                  2000-5000               15         3                 18                 1           37
income/pocket
                         6000-10000              13         6                 15                 3           37
money?
                         11000-1500
                                                 6          1                 10                 2           19
                         0

                         16000-2500
                                                 2          0                  4                 0           6
                         0

                         40000+                  1          0                  0                 0           1

                         Total                   37         10                47                 6          100




                                                            26
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Factors affecting consumers' choice of mobile phone selection in pakistan

  • 1. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) 2839 Vol 4, No.12, 2012 Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan Naveed Saif PhD scholar Gomal University D.I Khan Bannu 28100 KPK Pakistan Khan,Bannu Tel: +92-333 333-9300811 Email: Naveedsaif_naveedsaif@yahoo.com Nasir Razzaq PhD Scholar SZABIST Islamabad Rawalakot 12350 AJK Pakistan Islamabad,Rawalakot Tel: +92-336 336-5505398 E-mail: master_nasir18@yahoo.com Muhammad Amad MBA Institute of Management Sciences Peshawar Charsada 24420 KPK Pakistan itute Peshawar,Charsada Tel: +92-333 333-9300811 E-mail: Muhammad Amad@gmail.com Sajid Gul (Corresponding Author) Faculty of Administrative Sciences Air University Islamabad Mardan 23200 KPK Pakistan Islamabad,Mardan Tel: +92 +92-332-8102955 *E-mail: sajidali10@hotmail.com Abstract The study discusses the factors that affect/motivate Pakistani consumers in their mobile phone choice decision. A sample of 100 people was taken by using the sampling method of Convenience Sampling (or Accidental Sampling). For this particular study four important factors i.e. price, size/shape, new technology features, brand name were selected and were analyzed through the use of questionnaire in registering consumers’ perception of these factors. From the analysis it is clear that consumer’s value new technology features as the most important variable amongst all and it also acts as a motivational force that influences them to go for a new handset purchase decision. The study also discusses that when selecting between different mobile phone handsets he consumers prefer well known brands instead of non familiar brands or Chinese handsets. The study also shows that price does affect consumers’ choice for a mobile phone but becomes less important of a factor as we move from low monthly income to higher income earning consumers. From the study it is clear that consumers in Pakistan are well aware of the new technology trends in the mobile phone industry. The study also reveals that male respondents were more interested in the new technological developments in the mobile phone industry as compared to female respondents. Keywords: Nokia, LG, Samsung, Consumer Preference : 1. Introduction It started in USA on June 17, 1946 when the very first cellular telephone call was engineered in the city of St. Louis Missouri. But the then system was impractical if we compare it to present day mobile phones because it weighted 80 lbs and cost $30 US dollars on monthly basis along with that 3 40 cents were also charged on every local area 30-40 call. The premier economically viable fully automatic mobile network known as the first generation i.e. 1G was initiated in Japan in 1979 from NTT ( i.e. Nippon Telegraph and Telephone Corporation) by at fir concentrating first just on metropolitan parts of the city of Tokyo. During the next five operational years NTT’s service expanded and covered the entire Japanese population and hence became the pioneer nationwide first generation network of the world. World’s first ever modern technology based network i.e. Second Generation 2G mobile systems was s launched in Finland by Radiolinja in 1991 which operated on the GSM standards and gave rise to for the first time competition in telecom services providers at a time when the already experienced 1G NMT Network of Telecom Finland was challenged by Radiolinja. The year of 2001 saw the first totally commercial launching of third generation i.e. 3G mobile technology and since then mobile phones and mobile phone services ha seen an have exponential growth throughout the world and surely it can be said that the world has seen a communication revolution because of this technology. Instaphone could be rightly called the pioneer of cellular industry in Pakistan it started its operations in Pakistan in 1991 as an APMS mobile service provider. In 2004 Mobilink tions became the first GSM service provider in Pakistan and after the introductionof GSM service in Pakistan the industry has seen many new players and tremendous growth. In the beginning the target market comprised of beginning upper class consumers but the industry’s rapid growth started after 2000 01 and today it has even penetrated 2000-01 consumers belonging to the lower class. Nokia, Sony Ericsson, Samsung, LG and Motorola at present are the leading mobile phone manufacturers in Pakistan. The telecom sector of Pakistan during the past decade has ng contributed enormously to the overall development of Pakistan. This particular sector is constantly achieving high growth rates in the country. It is believed to be achieving growth every year despite economic setbacks faced by believed 16
  • 2. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) 2839 Vol 4, No.12, 2012 Pakistan. During the month of October, 2010 mobile service subscribers in Pakistan exceeded the psychological mark of 100 million (The Express Tribune, 2010). Similarly, it is believed that Pakistan amongst all south Asian believed regions has the highest cellular penetration rate. According to Pakistan Telecommunication Authority (2010), the market leader is still Mobilink with 30 million subscribers, with Telenor enjoying the second spot havi 21 having million users, with 20 million users Ufone is in third place, Warid resides in fourth place having 18.14 million subscribers and with 6.48 million subscribers Zong is at the last. Every player in the industry is working hard to expand the services throughout the country and are entering to regions like Azad Kashmir, Tribal Areas and roughout Northern Areas which are still not fully covered. So far five tribal agencies of FATA have been covered. We have chosen the topic of the study because of our personal interest in mobile handsets and the industry as a whole. This interest research attempts to rank factors affecting consumer’s preferences for mobile phones. This study can help advertisers to focus on that attribute more which is ranked highly by the consumers. This re research can also help the mobile phone manufacturer/marketer in Pakistan to recognize the potential attribute positioning errors (if any). Utmost effort has been put in to the study in making it accurate and to make it possible to be used as a reference material for similar studies. 2. Literature Review 2.1 Consumer Purchase Behavior In order to comprehend an individual’s choice in a cell phone’s selection or any other product, it is imperative to study customer’s purchase behavior. A definition of consumer behavior given by Perner (2009) “It is the study of groups, organizations or individuals and also the procedures by which they select, acquire, use and dispose products, ideas, experiences or services in order to fulfill their needs and wants and the pot potential impacts that these procedures have on the consumer and the society as whole”. From the perspective of marketing consumer’s purchase process can be categorized into a five step problem solving process i.e. 1. Need, 2. information gathering, 3. Evaluating the given alternatives, 4. Purchase activity, 5. Post purchase status (Dorsch, ting Grove and Darden, 2000). This five step process of decision making is most suitable for a purchase decision that requires problem solving behavior or complex decision making process and not for purchase decisions related to making low involvement products. Similarly the purchase decision for a new handset follows the same buying process but in some instances it may also be affected by symbolic preferences linked to some brands. In studying consumer choice behavior it’s important to take some general conditions into consideration. Considering the case of the classical problem solving buying process behavior, it is almost always the case that consumers go for information search before taking purchase/choice decision. And it is also common in such behavior that consumers’ decision practice is directed by previously made likings for some specific alternatives. So it shows that customers are expected to formulate their selection decision based on the limited information search activity that they conducted (Moorthy, S., Ratchford and Talukdar, 1997) rather than a detailed evaluation of all the possible alternatives (Chernev, 2003). Laroche, Kim, and Matsui (2003) opined that along with info information search evaluation of alternatives is an important activity that determines consumer’s choice and it is often influenced by “Cognitive Heuristics” or in simple words a buyer choose a particular product provide if it fulfills his perceived values based on his past experiences. In this specific technique of assessment a buyer automatically ed eliminates a brand that do not meet his set principles and even if it does, it does not have one or two attributes of extreme importance to him even it has all other attributes. In this study the analysis would be limited to consumer’s choice as to which product to purchase from a given set of alternatives and whether to purchase or not. 2.2 The Status of Pakistan’s Telecom and Handset Market The past decade has seen a telecommunication revolution not just in Pakistan but throughout the world. The telecom industry of Pakistan is estimated to be rising at a rate of 170% annually. According to Pakistan at Telecommunication authority 2.7 million subscribers gets added into the industry on monthly basis (Ansari and Khan, 2009). Shariq Syed (2008) suggests that Pakistani mobile phone market has played the most i important part in the rise of telecom business in Pakistan. The Pakistan mobile handset market should be given equal credit for the enormous growth of Pakistan’s telecom sector along with telecommunication service providers. Competitive rivalry for market share is still intense with the leadership position dominated by Nokia while Samsung benefits hare from the growing market for very low cost handsets. The gray market remains a key issue with 20% 20%-22% share of total sales estimated for 2008 (Kerr and Harris 2008). The handsets distribution market is dominated by handful of Kerr Harris, . companies and among them United United-Mobiles, Advance-Telecom and Mobile-Zone represent the largest phone Zone distributors. Nokia is the undisputed market share leader of cellular handset market of Paki Pakistan followed by two Korean manufacturers Samsung and LG. Nokia has 48 percent market share but its declining steadily due to competition from other manufacturers and especially from Chinese handsets. Samsung has seen tremendous rise in their market share i.e. having 8% market share in the year 2006, its market share has increased to 30% in 2008 and still going strong. LG is also enjoying favorable growth in market share with its success due to two highly 17
  • 3. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) 2839 Vol 4, No.12, 2012 successful handset models that were LG, KG195 and LG, KG270. Motorola and Sony Ericsson are showing LG, un-impressive performance with just 5% and 1% share in the total Pakistani handset market (Syed, 2008). Demand impressive for mobile phones in Pakistan has surged up their imports highly; it has seen approximately 100 p percent increase in-terms of their imported costs during the first month of current financial year 2010 11. The Federal Bureau of terms 2010-11. Statistics (FBS) Pakistan indicates the import bill of cellular handsets reached 39 million dollars during the month of July as compared to the same month’s cost last year which was at US dollars 19.59 million thus showing a growth of 99.15%. Similarly mobile accessories expenditure was 27 % higher as weighed against the month of June which was $30.8 million. Altogether according to FBS the import of handsets for the year 2009 2009-10 moved up to 215 million US dollars as to US 139 million dollars in the prior year indicating a surge of 54.6%. According to the representative of Karachi Electronic Dealers Association (KEDA) representative 55 percent increase in representative imports of cellular handsets is due to greater demand of Chinese handsets ( (Khan, 2010). But the branded phone ). manufacturers like Nokia, Samsung, LG, Sony Ericsson etc have managed to maintain their market share among the masses of the society who still prefer branded sets compared to Chinese handsets. Pakistan’s handset market is unique in the sense that it sees a surge in sales just before and after the Eid festival (“Mobile handset import bill up 100 percent”, 2010). Mr. Imran Zaki, marketing head at LG electronics reports that demand from the market is Zaki, constantly increasing day by day particularly in entry stage segments, that includes lowest costing handsets ranging between Rupees 1200 to Rs 2000. 3. Methodology 3.1 Sample and Sampling Techniques A sample of 100 people was taken by using the sampling method of Convenience Sampling (or Accidental Sampling). In Convenience Sampling (also known as opportunity or grab sampling technique) a sample is taken from the population which is at convenience or in other words which is close at hand and it is a form of non-probability sampling method. Since lack of financial resources, time constraint and a study conducted by a probability single researcher, convenience sampling was adopted as the population sampling technique for this particular population research. 3.2 Survey Methodology In order to test the hypothesis a questionnaire was designed to find out as to what are the factors that determine the choice of a mobile phone selection in Pakistani consumers and to study which factors are valued the most and how much effect does demographic differences have in mobile phone preference amongst consumers belonging to diverse demographic sets. A sample size of 100 respondents was taken by using Convenience Sampling method. Most of them were circulated amongst the students of Institute of Management Sciences and ethod. Edwardes College Peshawar, some of them were also distributed amongst the employees of Accountant General Office Peshawar. The hypotheses were tested by asking different relevant questions regarding the pre-determined hypothesis and results were processed using SPSS software by using frequency distribution determined tables and cross tabulation. Based on the results of the questionnaire and its analysis various conclusions were derived and recommendations were given so as to how better market mobile handsets to consumers of Pakistan. 3.3 Hypothesis Formulation H1: When choosing between different mobile phone models, consumers prefer well known brands. well-known H2: Price has a direct effect on consumer’s mobile choice decision. ct H3: New technology features increases consumers’ motivation to acquire new phone models. 4. Analysis and Results On the basis of past research on the topic under study hypothesis were developed and to test t these hypothesis a questionnaire was designed and distributed among 110 respondents amongst which 100 questionnaires were useable. Among the total 100 respondents 61 of them were male and 39 of them female. For demographics Gender, Age and Income level were selected. The majority of the respondents were university students of Institute of Management Sciences Peshawar belonging to different BBA, MBA and MS programs, college students of Edwardes College were also a part of the study while questionnaire were al circulated amongst also staff of Accountant General Office Peshawar. The respondents belonged to three different age i.e. 15 15-25, 26-35, 36-50. 4.1 Demographics When respondents were asked do you own a mobile phone? A total of 96% respondents had mobile phon phones while 4% still were a segment that did not own a mobile phone indicating that this 4% can also be a market worth capturing. The overwhelming amount of respondents having a mobile phone shows that nowadays cell phones have become a must have accessory fo nearly everyone. for When asked do you see chiness mobile phone as replacement for current well known brands? 66% percent respondents believed that they are not any threat for the present brands indicating that famous brands still have a 18
  • 4. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) 2839 Vol 4, No.12, 2012 strong following but 34% of the respondents were seeing them as the replacement for the present established t brands, but no one in the study possessed a Chinese mobile indicating that it was just a matter of perception and people were still brand loyal to the present brands because their actions did not reflect their perception. because When asked how many mobile sets do you use/have at present? 62% respondents had a single mobile handset while 24% had two mobile phones, 5% had three phones and 9% had four or above. These are importa findings important because they present an opportunity for mobile handset providers to study why people carry multiple handsets and how by understanding their reasons one could target them with their products. When asked which company’s mobile handset do you hav 73% of the respondents had Nokia handsets have? indicating that Nokia is by far the market leader followed by Samsung having 18% of the respondents using it while Sony Ericsson once a dominant player in the market just had just three respondents owning its ha handsets while Motorola was struggling with two votes. 4% people under study used other brands that were HTC, iphone and LG. When asked which factor to you is the most important in purchasing a mobile phone for yourself? Out of the four factors selected for the study by the help of past research “New Technology Features” was the most important reason to purchase a mobile phone for 47% of the respondents while followed closely by 37% respondents preferring “Brand Name” indicating them to be brand conscious. Surprisingly just 10% of the Surprisingly respondents valued Price as the most motivating factor which shows the fact that in purchasing a mobile phone not great many people in Pakistan rank price as the determining factor in a mobile phone purchase decision. 6% of the people took size/shape as the most important factor for them in purchasing a mobile phone. When asked how often do you buy a new mobile phone for yourself? 38% respondents do not buy a new handset for themselves until their present set stops working and is of no use to them while 36% purchase a new is set for themselves every year. 12% of the respondents buy a new set for themselves every six months. 14% of the people who were studied showed that they are motivated to buy a new set for their selves only when a new model of their present set arrives in the market which shows that they are brand loyal. When asked do you prefer Chinese mobiles over the branded ones? This question’s findings indicates that 89% people do not see Chinese mobile phones dominating and replacing the current brands which is consistent to the and results of the previous question as well in which 66% respondents did not see Chinese mobile as replacements for the familiar brands. It is also obvious from the results of the above question that maximum number of the maximum research subjects believed the branded mobiles are here to stay and are not under any impending danger from Chinese phones hence consequently proving hypothesis H3. When asked do you believe cell phone is a “status symbol”? Very often things of necessity become things of luxury showing one’s Status in a society and mobile phones to some extent do become symbols of an individual achievement/status. 57% respondents replied negatively to it and did not agree to the notion that mobile is a status symbol while 43% replied positively indicating that a considerable number of individuals still take mobile phones a sign of Status and achievement. When asked in what price range does your current mobile phone lie? The respondents had mobile phones from diverse price ranges with majority i.e. 29% of them had handsets in the price range of 11000 to 15000 rupees, 20% in the range of 6000 to 10000 rupees and 24% in the range of 2000 to 5000 rupees. While 12 respondents owned a mobile phone worth more than 25000 rupees. han When asked does a new model of your mobile phone motivate you to buy a new set for yourself? This question was asked to know how brand loyal customers are to their present brand and whether they are motivated by the new models with new technology features of their present handsets or not. 69% of them do get motivated while chnology 31% replied negatively. The results of this particular questions also proves H3 hypothesis which says that features that are new in a mobile phone as compared to other sets of rival companies increases customers’ drive sets to acquire them. When asked rate price in order of importance to select a new mobile phone? Likert scale was developed to study as to how important price is to a Pakistani consumer in purchasing a mobile ph phone. Most of the respondents agreed that for them price is an important factor in mobile handset purchase decision, 23% respondents slightly agreed to it, 19% agreed while 18% highly agreed. Only a few disagreed to it while 21% were neutral to it. The above question also answers and tests Hypothesis H2 and the results show that a plain e majority do agree that price does affect them in their purchase and choice of cell phones thus supporting the Hypothesis H2 in result. When asked a mobile phone is just a de device for communication and that’s it? The answer had a split mandate only a slight majority replied positively while many disagreed to it. While 24% of the respondents were indecisive. 5. Conclusion The study discusses the factors that affect/motivate Pakistani consumers in their mobile phone choice decision. Pakistani 19
  • 5. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) 2839 Vol 4, No.12, 2012 A sample of 100 people was taken by using the sampling method of Convenience Sampling (or Accidental Sampling). For this particular study four important factors i.e. price, size/shape, new technology features, brand name were selected and were analyzed through the use of questionnaire in registering consumers’ perception of these factors. From the analysis it is clear that consumer’s value new technology features as the most important variable amongst all and it also acts as a motivational force that influences them to go for a new handset purchase decision. The study also discusses that when selecting between different mobile phone handsets consumers prefer well known brands instead of non familiar brands or Chinese handsets. The study also shows brands that price does affect consumers’ choice for a mobile phone but becomes less important of a factor as we move from low monthly income to higher income earning consumers. From the study it is clear that consume in consumers Pakistan are well aware of the new technology trends in the mobile phone industry and are techno savvy. The study also reveals that male respondents were more interested in the new technological developments in the mobile phone industry as compared t female respondents. to References Ansari, S. and Khan, A. (2009). Telecommunication Trends in Pakistan. Market Forces, 213 , 213-217. Batra, R. and Ahtola, O.T. (1990). Measuring the hedonic and utilitarian sources of consumer attitudes. Marketing Letters, 2 (2), 159-170. Chernev, A. (2003). When more is less and less is more: The role of ideal point availability and assortment in consumer choice. Journal of Consumer Research 30 (2), 169-184. Research, Dorsch, M.J., Grove, S.J. and Darden, W.R. (2000). Consumer intentions to use a service category. Journal of intentions Services Marketing, 14 (2), 92-118. Kerr, D. and Harris, S. (2008), Pakistan Mobile Handset Market Outlook. Retrieved, 22 November,2010from<http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=3844> November,2010from<http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0= Khan, M. (2010). Mobile Phone Imports Increased by 55 Percent. Retrieved, 20 November, 2010 from <http://propakistani.pk/2010/04/28/mobile-phone-imports-increased-by-55-percent/> <http://propakistani.pk/2010/04/28/mobile Laroche, M., Kim, C. and Matsui, T. (2003). Which decision heuristics are used in consideration set formation? are Journal of Consumer Marketing, 20 (3), 192 , 192-209. Mobile handset import bill up 100 percent (2010). Daily Times, 5 September, Retrieved, 22 November, 2010 , from < http://www.dailytimes.com.pk > Mobile phone users reach 100 million mark (2010, September 30). The Express Tribune. Moorthy, S., Ratchford, B. and Talukdar, D. (1997). Consumer information search revisited. Journal of Consumer Research, 23 (4), 263-277. 277. Pakistan Telecommunication Authority, telecom indicators. Retrieved 14 September, 2010,from<http://www.pta.gov.pk/index.php?option=com_content&task=view&id=1413&Itemid=687> Perner, L. (2009). Consumer Behavior: The Psychology of Marketing. Retrieved 10 November, 2010 from < http://www.consumerpsychologist.com/> Syed, S. (2008), The State of Pakistan’s Handset Market – An Analysis. State Of Telecom Industry Pakistan Blog. Retrieved 10 November, 2010 from < http://telecompk.net/2008/08/29/the--state-of-pakistan%E2%80%99s-handset-market-%E2%80%93 %E2%80%93-an-analysis/ > 20
  • 6. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) 2839 Vol 4, No.12, 2012 Demographics Income/pocket money per month Frequency Percentage Valid Percentage Cumulative Percentage 2000-5000 37 37.0 37.0 37.0 6000-10000 37 37.0 37.0 74.0 11000-15000 19 19.0 19.0 93.0 16000-25000 6 6.0 6.0 99.0 40000+ 1 1.0 1.0 100.0 Total 100.00 100 100 21
  • 7. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) 2839 Vol 4, No.12, 2012 Q.4. Which company’s mobile phone do you have? Frequency Percent Valid Percent Cumulative Percent Valid Nokia 73 73.0 73.0 73.0 sonny ericsson 3 3.0 3.0 76.0 motorola 2 2.0 2.0 78.0 samsung 18 18.0 18.0 96.0 Other 4 4.0 4.0 100.0 Total 100 100.0 100.0 Q.5. Which factor to you is the most important in purchasing a mobile phone for yourself? Validity of Cumulative Frequency Percent Percentage Percentage brand name 37.0 37 37 37 Price 10 10.0 10.0 47.0 new technology features 47 47.0 47.0 94.0 size/shape 6 6.0 6 100 Sum= 100.0 100 100 22
  • 8. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) 2839 Vol 4, No.12, 2012 Q.6. How Often do you Buy New Mobile for Yourself? FREQUENCY PERCENT VALID %age Cumulative %age Within Six Months. 12 12.0 12.0 12.0 Within a year. 36 36.0 36.0 48.0 When new model of your l 14 14.0 14.0 62.0 present set arrives. When the last one stops 38 38.0 38.0 100.0 working. 100-0 100.000 100.000 Q.9. In what price range does your current mobile phone lie? Occurrence %age Valid % collective Percentage 2000-5000 24 24 24 24 6000-10000 20 20.0 20.0 44.0 11000-15000 29 29.0 29.0 73.0 16000-25000 15 15.0 15.0 88.0 25000+ 12 12.0 12. 100 100.000 100 100.00 23
  • 9. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) 2839 Vol 4, No.12, 2012 Q.10. Does a new model of your mobile phone motivate you to buy a new set for yourself? Cross Tabulation Analysis Gender * Which company’s mobile do you have? Cross Tabulation Which company’s mobile do you have? nokia sonny ericsson motorola samsung other Total Gender male 48 1 1 11 0 61 female 25 2 1 7 4 39 Total 73 3 2 18 4 100 24
  • 10. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) 2839 Vol 4, No.12, 2012 Gender * Which factor to you is the most vital factor in purchasing a cellular phone for yourself? Cross Tabulation Which factor to you is the most essential in purchasing a cell phone for yourself? new technology brand name price features size/shape Total Gender male 21 6 32 2 61 female 16 4 15 4 39 Total 37 10 47 6 100 Age Range * Which factor is most important to you in purchasing a mobile phone for yourself? Cross Tabulation Most important factor? new technology brand name price features size/shape Total Age Range 15-25 28 9 35 6 78 26-35 8 1 8 0 17 36-50 1 0 4 0 5 Total 37 10 47 6 100 Gender * Does a new model of your mobile phone motivate you to buy a new set for yourself? Cross Tabulation Does a new model of your mobile phone motivate you to buy a new set for yourself? phone Agreed Disagreed Sum total Gender Male 44 17 61.0 Female 25 14 39.0 69 31 100.00 Gender * In what price range does your current mobile phone lie? Cross Tabulation In what price range does your current mobile phone lie? rrent 2000-5000 6000-10000 11000-15000 16000-25000 25000+ Total Gender male 17 15 16 8 5 61 female 7 5 13 7 7 39 Total 24 20 29 15 12 100 25
  • 11. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) 2839 Vol 4, No.12, 2012 n what price range does your current mobile phone lie? * Which factor to you is mainly essential in purchasing Mobile set for yourself? Cross Tabulation Vital Factor? new technology brand name price features size/shape Total In what price range 2000-5000 10 4 10 0 24 does your current 6000-10000 10000 6 4 9 1 20 mobile phone lie? 11000-15000 15000 16 1 12 0 29 16000-25000 25000 5 1 7 2 15 25000+ 0 0 9 3 12 Total 37 10 47 6 100 Monthly income/pocket money? * Which factor to you is the most important in purchasing a mobile phone for yourself? Cross Tabulation Which factor to you is the most important in purchasing a mobile phone for yourself? new technology brand name price features size/shape Total Monthly 2000-5000 15 3 18 1 37 income/pocket 6000-10000 13 6 15 3 37 money? 11000-1500 6 1 10 2 19 0 16000-2500 2 0 4 0 6 0 40000+ 1 0 0 0 1 Total 37 10 47 6 100 26
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