Presentation on different influencing factors that affect consumer buying behavior of Smartphone users

1. Research Thesis on
“Factors affecting Consumer Buying
Behavior of Smartphone Users”

2. HELLOMy name is Muiz & I am here to
defend my thesis.

3. “Factors affecting Consumer Buying Behavior of Smartphone Users”
Supervisor: Sir Adil Adnan
Prepared By: Muiz Hassan (4760)
MBA 90 (Marketing)

4. Table of Contents:
1: Introduction
2: Problem Statement
3: Research Questions
4: Objectives
5: Significance of the study
6: Limitation
7: Literature Review
8: Methodology
9: Results
10: Conclusion

6. Lets start with a brief
introduction of “Smartphone”.

7. ∎Smart Phone is a portable cellular device.
∎It has advanced operating, multitasking & connectivity
capabilities.
∎It is usually configured by an OS (operating system).
∎It is identified by a touch screen, internet access, high megapixel
camera & lots of other features.
∎People mostly use Smart Phone for internet browsing, emailing,
navigation, listening music, watching videos, social media, playing
games & for other many purposes.
Introduction of Smart Phone

8. ∎Rapid growth in the demand of Smart phones has influenced the world.
∎Nowadays consumer desires to have a smart phone.
∎Rapid innovation in Smart phone’s industry has brought such craze.
∎Irrespective of high prices, still their demand is increasing.
∎Different factors arouse people to purchase a Smart phone.
∎Different kinds & variety of Smart phones are available in the market (i.e.
Apple, Samsung, Microsoft, Sony etc)
Introduction (Continued)

9. This research study is focused to find out why people
purchase Smart phone & what are the major
influencing factors that affect their behavior.
According to Phillips Kotler, Cultural, Social, Personal
& Psychological factors are the major influencing factors
that affects the consumer behavior.
Note: Only social & personal factors are considered in this research thesis
For more details, see limitations.

10. Problem Statement

11. ∎Do social/personal factors have
any impact on consumer’s buying
behavior?
Problem Statement

12. Research Questions

13. ∎Why do people purchase Smart phone? Is it their need or want?
∎Why do they purchase expensive Smart phones?
∎Do social & personal factors affect their buying of smart phone?
∎What for they use their smart phone?
∎Does smart phone become essential for them in their routine life?
Having a smart phone makes their routine life easy?
Research Questions

15. Objectives
∎To examine whether people buy smart phone because of their need or want.
∎To identify whether social & personal factors have an impact on consumer
buying behavior
∎To examine why people buy expensive Smartphone as least expensive
Smartphone are also available in the market.
∎To analyze for what purpose people use their Smartphone.
∎To determine whether the Smartphone is essential for them in their daily life &
whether it has made their daily life easy.

16. Significance of the Study

17. Significance of the study
∎The current study will be helpful for the marketers to identify the
factors that have an impact on consumers' buying behavior of
Smartphone buyers/users.
∎It will helpful for them to formulate marketing strategy regarding
the Smartphone in future.

18. Limitations

19. Limitations
The consumers' buying behavior may be affected by cultural, social, personal
and psychological factors. But due to limitation of time and resources, the
research has done only on two of them i.e. social and personal factors.

20. Literature Review

21. ∎Consumer Behavior: According to Phillips Kotler “Consumer behavior is the
study of how individuals & groups buy, use and dispose of goods & services in
order to satisfy their needs & wants.”
∎Consumer Decision Making Process: According to Phillips Kotler, a buyer has to
pass through five stages in order to reach to the final decision (i.e. Need
Recognition, Information Search, Evaluation of alternatives, purchase decision &
post purchase decision).
∎Factors Affecting Consumer Behavior: According to Armstrong & Phillips Kotler,
The consumer behavior is affected by the four main factors namely: Cultural
factors, Social Factors, Personal Factors & Psychological factors.
Literature Review

22. ∎Social Factors: The main social factors that may influence consumer buying
are reference groups, family, roles and status. (Kotler & Armstrong 2007, Page
164)
∎Personal Factors: The personal characteristics of the buyer, like age & life
cycle stage, occupation, life style, economic circumstances & personality also
affects the buying behavior of the consumer.
Literature Review Cont;

23. ∎Smart Phone: "People see their Smart phones as an extension of themselves, taking them
with themselves everywhere they go, even the most unorthodox places ,from the shower to
their commute, from the dinner table to the bedroom," Marc Barach, Jumio's chief marketing &
strategy officer(Source: CNN.com. www.edition.cnn.com/2013/07/13/TECH/SMARTPHONE-USE-
SURVEY/)"
∎Uses of Smart Phone: Figure 3. Activity by average time per day (Source:
www.telegraph.co.uk/technology/mobile-phones/9365085/Smartphones-hardly-used-for-calls.html)
Literature Review Cont:

25. Methodology
∎ To bring this research in conclusion, two focus group interviews
were conducted with 6 participants in each group.
∎ The Focus group is one of the qualitative research technique, in
which a group of individuals are asked about their opinions,
attitudes, perception & belief towards a product or services etc.
∎ Why Qualitative Research Technique:
* Provides a rich & detailed output
* Not limited to rigid definable variables
* Much smaller sample

26. Methodology Contd
∎ Participants Demographics:
Twelve participants took part in the focus group:
•Four females & eight Males. (2 females & 4 males in each group)
•All the participants were between the age group of 20-30.
•All the participants were from Peshawar region.
•Most of the participants were single with full/part time jobs.
•Few are married with having families of their own.
•All of the participants have smart phones.

27. Methodology
Contd∎Focus Group Discussion Questions:
1. Do you buy Smart phone because of your need or your want?
2. Do you have an expensive Smart phone? If "yes" why you decide to buy an expensive Smartphone?
3. Do your social traits or characteristics (such as Reference groups, family, roles & status) affect or influence you while
purchasing your Smartphone? Which and how?
4. Do your personal traits or characteristics (such as: age & lifecycle stage, occupation, economic circumstances, life-style
and personality & self-concept) affect or influence your decision during purchase of Smartphone? Which & how?
5. What are the major things that you usually do with your Smart phone? For example. phone calls, internets browsing,
gaming, news, online shopping, travel planner, weather forecast, social Medias, emails etc.
6.How much essential do you think about the Smart phone in your routine life? Is having a Smart phone makes your routine
life easy?
Note: The questions for the focus group were set up by the researcher (me) prior to the interview & were tested with 5
people voluntarily to check its reliability.

28. RESULTS

29. ∎Q1) Do you buy Smart phone because of your need or your want?
∎In short, all the participants of the focus group agreed on a point that
Smartphone becomes their need.
∎Further one male participant from focus group 2 said, “ It could be said as I buy it
because of my want but from another point of view, it has made things easier for
me in my routine activities. So, I will prefer to say it as it is my need.”
Results

30. ∎Q2) Do you have an expensive Smart phone? If "yes" why you decide to buy an
expensive Smartphone?
∎The reply to this question was a big “yes”.
∎Majority of them have ‘Samsung Galaxy S4 & S5’, few have ‘iPhone 5 & 5s,
‘Microsoft Lumia 920’ and ‘Sony Xperia Z.
Few replies were:
∎ “I bought expensive because it contains best hardware and has latest features
which are very useful in everyday use.”
∎“Cheap Smartphone’s are not so durable & reliable, so that why I have decided to
buy the expensive one.”
Results Contd

31. ∎Q3) Do your social traits or characteristics (such as Reference groups, family,
roles & status) affect or influence you while purchasing your Smartphone? Which
and how?
∎It seemed that the social factors do not affect “males” in their purchasing of
smart phone.
∎Most of males agreed on that they made independent decision while buying their
smart phones.
∎But the response of the females was totally opposite to the males.
∎It seemed that social factors do affect “females” in their decision making.
∎Out of 4 females, three were agreed on that their purchasing decision are
influence by their friends.
Results Contd

32. ∎Q4) Do your personal characteristics (such as: age & lifecycle stage, occupation,
economic circumstances, life-style and personality & self-concept) affect or
influence your decision during purchase of Smartphone? Which & how?
∎It seemed that the participants were influenced by one or more personal
characteristics while buying smart phones.
∎Overall, most of the participants were largely influenced by different personal
characteristics like, age, life cycle stage, economic circumstances, personality,
occupation & life style.
Results Contd

33. Question 4 (continued)
The participants’ main views & thoughts were:
“I am young, so that is why I am automatically attracted towards attractive and fascinating things &
smart phone is the attraction of modern age.” (Age and life-cycle stage)
“For me, the economic issues comes in between when I think about buying a Smartphone.”
(Economic circumstance)
'' Well Yes, I am affected mostly by economic circumstances. As I bought this Smartphone because it
was on a discount and the price was good for it. Also my personality influenced me as I like to try new
things.” (Personality & Economic circumstances)
“ I am a lover of technology , that's why I wanted to purchase iPhone to try its features as it is more
user friendly.” ( Self-concept & Personality)
“ Lifestyle has affected me as I have a busy life so it is become easy for me to manage my daily tasks
due to smart phones.” (Life style)

34. ∎Q5) What are the major things that you usually do with your Smart phone? For
example. phone calls, internets browsing, gaming, news, online shopping, travel
planner, weather forecast, social Medias, emails etc..Which & how?
∎The participants of the focus group mentioned that they use their Smartphone for
various stuff or purposes.
∎According to most of the participants, they use their Smartphone for text
messaging, phone calling, taking pictures, social networking like twitter, facebook,
whatsapp, skype, viber etc, internet browsing, online shopping, emails, documents
reading, weather forecast, navigation, listening songs, playing videos, playing
games & many other useful applications.
Results Contd

35. ∎Q6)How much essential do you think about the Smart phone in your routine life?
Is having a Smart phone makes your routine life easy?
∎Almost every participant of the focus groups mentioned that Smartphone is very
essential for routine life & concluded that Smartphone has made their life easy.
One response was
∎"A Smartphone can replace a watch, camera, torch light, calculator, analog items
like note book, phone book & even computers on various fields. I can use my
Smartphone whenever I need & for entertainment purposes whenever I get bored.
So, yes I think that Smartphone is essential for daily life & it makes life easy."
Results Contd

36. Conclusion

37. Conclusion
∎ Smartphone becomes the need of every individual.
∎ People like to buy expensive Smart phones because they are
durable, reliable, have better hardware & have updated version of
OS (operating system).
∎ Social factors do not have much influence on males but are
influencing factors for females.
∎ Personal factors do have influence on consumers’ decision during
purchase of Smart phones.
∎ People use their Smart phones for many purposes like; internet
browsing, socializing, taking pictures, emails, weather forecasting
etc.
∎ Smartphone has made the life of people much easier.

38. THANKS
!
Any questions?