Research Report22Mar2012 ConsumerBehaviour Libre

FACTORS INFLUENCING CONSUMER BEHAVIOR

IN SELECTING MOBILE PHONE HANDSETS: A

CASE STUDY OF USIU

BY

EHTESHAM MOHAMMAD

UNITED STATES INTERNATIONAL UNIVERSITY

SPRING 2012

FACTORS INFLUENCING CONSUMER BEHAVIOR

IN SELECTING MOBILE PHONE HANDSETS: A

CASE STUDY OF USIU

BY

EHTESHAM MOHAMMAD

A Project Report Submitted to the School of Business in

Partial Fulfillment of the Requirement for the Degree of

Master in Business Administration (MBA)

UNITED STATES INTERNATIONAL UNIVERSITY

SPRING 2012

ii

STUDENTS DECLARATION

I, the undersigned, declare that this is my original work and has not been submitted to any

other college, institution or university other than the United States International

University in Nairobi for academic credit.

Signed: ________________________ Date: _____________________

Ehtesham Mohammad, 608092

This project has been presented for examination with my approval as the appointed

supervisor.

Signed: ________________________ Date: _____________________

Dr. Kefah Njenga

Signed: _______________________ Date: ____________________

Dean, School of Business

Signed: _______________________ Date: ____________________

Deputy Vice Chancellor, Academic Affairs

iii

COPYRIGHT

All rights reserved. No part of this report may be photocopied, recorded, or otherwise

reproduced, stored in a retrieval system or transmitted in any form or by any electronic or

mechanical means without prior written permission of the copywriter owner.

iv

ABSTRACT

The objective of this study was to examine consumer buying behavior of mobile phone

handsets and to investigate the reasons underlying mobile phone change with respect to

the following research questions: The effect of demographics on the evaluations of

different attributes related to mobile phone handsets choice; The effect of psychographics

on the evaluations of different attributes related to mobile phone handsets choice; The

effect of behavior on the evaluations of different attributes related to mobile phone

handsets choice.

This study is to help the mobile phone industry as a whole by assisting in filling the

knowledge gap on the understanding of consumers choice criteria in mobile phone

markets by studying factors that influence intention to acquire new mobile phones.

Convenience sampling technique was utilized in selection of the sample. Primary data

collection method was used in this study. This study used quantitative method of data

analysis. The quantitative analysis is applied using descriptive statistics. The information

was collected using questionnaire based on the three research questions. Four hundred

twenty one questionnaires were handed out, of which three hundred ninety two were

received and analyzed using SPSS. This was presented using tables and pie charts to give

a clear picture of the research findings.

From the analysis, it was concluded that technology and design seemed to be more

important than price and that technological and design factors should be give more

importance by mobile phone manufacturers and/or retailers. Specifically, mobile phone

manufacturers should consider improving on phone weight and size amongst other

factors. They should also concentrate on handset colors, changeability of skin/cover, color

screen, touch screen, iconic menu styles and minimal keystrokes in terms of design

factors.

Further research should be done to the topic in order to understand more about each brand

as technology, design and price vary on brands as well. Also, a more diverse target

population would be more beneficial in this field of study.

v

ACKNOWLEDGEMENT

I would like to thank the following people for their support in carrying out this research.

I would like to thank my Supervisor Dr. Kefah Njenga who gave me guidance and

motivation from the beginning to the end of this report. I appreciate all the efforts and

patience during the consultations.

Special thanks also go out to the USIU students for the effort and cooperation extended in

the course of the study.

vi

TABLE OF CONTENTS

SECOND TITLE PAGE ...... i

STUDENTS DECLARATION ii

COPYRIGHT PAGE iii

ABSTRACT.. iv

ACKNOWLEDGEMENT v

CHAPTER I ....................................................................................................................... 1

1.0 INTRODUCTION........................................................................................................ 1

1.1 Background of the Problem ........................................................................................... 1

1.2 Statement of Problem ..................................................................................................... 5

1.3 General Objective .......................................................................................................... 5

1.4 Research Objectives ....................................................................................................... 6

1.5 Importance of the Study ................................................................................................. 6

1.6 Scope of the Study ......................................................................................................... 6

1.7 Definition of Terms........................................................................................................ 7

1.8 Chapter Summary .......................................................................................................... 7

CHAPTER II ...................................................................................................................... 9

2.0 LITERATURE REVIEW ........................................................................................... 9

2.1 Introduction .................................................................................................................... 9

2.2 The Effect of Demographics on the Evaluations of Different Attributes Related to

Mobile Phone Handsets Choice. ........................................................................................ 10

2.3 The Effect of Behavior on the Evaluations of Different Attributes Related to Mobile

Phone Handsets Choice...................................................................................................... 17

2.4 The Effect of Psychographics on the Evaluations of Different Attributes Related to

Mobile Phone Handsets Choice. ........................................................................................ 22

2.5 Chapter Summary ........................................................................................................ 28

CHAPTER III .................................................................................................................. 30

3.0 RESEARCH METHODOLOGY ............................................................................. 30

3.1 Introduction .................................................................................................................. 30

3.2 Research Design........................................................................................................... 30

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3.3 Population and Sampling Design ................................................................................. 30

3.4 Data Collection Methods ............................................................................................. 31

3.5 Research Procedures .................................................................................................... 31

3.6 Data Analysis Methods ................................................................................................ 31

3.7 Chapter Summary ........................................................................................................ 31

CHAPTER IV................................................................................................................... 33

4.0 RESULTS AND FINDINGS ..................................................................................... 33

4.1 Introduction .................................................................................................................. 33

4.2 Demographic Factors ................................................................................................... 33

4.3 Behavioral Factors ....................................................................................................... 53

4.4. Psychological Factors ................................................................................................. 54

CHAPTER V .................................................................................................................... 56

5.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS ........................ 56

5.1 Introduction .................................................................................................................. 56

5.2 Summary ...................................................................................................................... 56

5.3 Discussions .................................................................................................................. 57

5.4 Conclusions .................................................................................................................. 64

5.5 Recommendations ........................................................................................................ 67

REFERENCES ................................................................................................................. 69

APPENDICES .................................................................................................................. 78

APPENDIX I: COVER LETTER ...................................................................................... 78

APPENDIX II: QUESTIONNAIRE .................................................................................. 79

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LIST OF TABLES

Table 1: Gender of Respondents. 35

Table 2: Aspects of Current Mobile Phone Set38

Table 3: General Factors Considered on Purchasing a New Mobile Phone Set.. 40

Table 4: Design Factors Considered on Purchasing a New Mobile Phone Set.. 41

Table 5: Technological Factors Considered on Purchasing a New Mobile Phone Set 42

Table 6: Purchase of New Mobile Phone Sets Based on Someones Views on it.. 42

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LIST OF FIGURES

Figure 1: Kotlers Consumer Behavioral Model.. 2

Figure 2: Dependent and Independent Variables taken into Consideration.10

Figure 3: Age of Respondents......34

Figure 4: Ethnic Group of Respondents.......35

Figure 5: Brand of Current Mobile Phone Handset... 36

Figure 6: Recency of Purchase of Current Mobile Phone Set... 37

Figure 7: Major use of Current Mobile Phone Handset. 38

Figure 8: Frequency of Purchase of New Mobile Phone Set. 39

Figure 9: Peoples Views Considered Due to Expertise 43

Figure 10: Accompaniment of Colleague/Friend during Purchase of New Set. 44

1

CHAPTER I

1.0 INTRODUCTION

1.1 Background of the Problem

Mobile communication has been viewed as one of the fastest growing industries for the

future of world economy. As such, mobile phone industry has been one of those bright

spots in Asian economy during the last decade, and just in China, the mobile phone

market has been increasing at a rate of 80 percent since 1990 and became a market of 130

million users in 2001 exceeding US for the first time (Robertson, 2001), and over 335

million by 2004 about 25 percent of the total Chinese population (CMII, 2005). Along

the increase of mobile communication and mobile phone usage worldwide, the

competition for global mobile phone market has been extremely intensified. For instance,

in current Chinas mobile phone market, there are more than 600 mobile phone models on

sale by over 110 mobile phone manufacturers (Motsay, 2004), including both domestic

and international mobile phone producers competing with a variety of different marketing

strategies and competitive advantages. For example, some companies are competing by

promoting its high tech features while others competing through so-called star power

with celebrity endorsement to their products. Not unusual, there are also companies

competing with unique aesthetical features such as: attractive appearance, dialing speed,

color, shape and the possibility of customization. Those marketing strategies have been

widely used in many different industries based on the related market analysis about

consumers purchasing behavior, especially, the influence of these so-called social

influence groups.

Historically, a mobile phone has been pricy with the market dominated by business users

(Kendall, 1997). It was considered a status symbol for the rich and famous during the

early 1990s all over the world. In China, people could remember a common scenario

where mobile phone owners talked anywhere and everywhere with pride sending a

message that the ownership of a mobile phone represented power, prestige, and success.

In contrast, American mobile phone consumers used to believe that when they sign up

with a mobile phone service, a free phone was included. At that time, it was the

ownership of a mobile phone, not its technology or its appearance, that distinguished the

owner from others. It was predicted in 1994 that the demand for mobile communication

2

would make a continuing growth of US mobile phone market and reaching a penetration

of 50 percent in 2005 (Scouras, 1995). The real market growth was in fact better than the

expected with 74 percent of Americans who used mobile phones in 2003 (Palenchar,

2004). More recently, mobile phones have become common not only in all urban areas

but also in smaller towns and remote rural farms. Following these changes in trends, one

can easily find many advanced emerging generations of mobile phones, smaller, lighter,

better designed, multi-functional, and with a much affordable price. (Robertson, 2001)

There are numerous models trying to explain consumer behavior. These models generally

deal with various stimuli, influential factors, the decision-making process and outcomes.

Some models are very basic and categorize all variables such as the one proposed by

(Kotler, 2000), which is illustrated below.

Marketing

stimuli

Other

stimuli

Product Economic

Price Technological

Place Political

Promotion Cultural

Source: Kotler, P., 2000, Marketing management, Millennium edition, U.S.A.: Prentice-

Hall, p. 161.

Figure 1: Kotlers Consumer Behavior Model

Buyer's

Characteristics

Buyers Decision

Process

Cultural Problem recognition

Social Information search

Personal Evaluation of

alternatives

Psychological Purchase decision

Post purchase behavior

Buyer's Decision

Product Choice

Brand Choice

Dealer Choice

Purchase Timing

Purchase

Amount

3

The above figure shows how the marketing mix and other stimuli enter a consumers

thoughts. The consumer then has to make certain decisions, which are directly influenced

by their personal characteristics. For a marketer, the ideal end result would see the

consumer making a purchase.

Consumer choice behavior can be studied through the classical five-step problem solving

paradigm or through the progression of consumer choice from a product class to brand

choice (Dorsch, Grove, and Darden, 2000). The five-step model is usually suitable for

decision making that assumes rational problem solving behavior and, in most cases,

complex decision making.

The five step model:

1. Define Problem

2. Generate Solutions

3. Evaluate Alternatives

4. Act

5. Evaluate

The acquisition of a new mobile phone follows this traditional view of buying process,

but is in many situations also affected by symbolic values related to brands.

Consumer choice behavior has some important prevailing conditions that must be taken

into account while studying choice. In the light of the classical problem solving buying

behavior, consumers engage in information search before making the actual choice.

Consumer decision making process is usually guided by already formed preferences for a

particular alternative. This means that consumers are likely to make the choice between

alternatives based on limited information search activity (Beatty and Smith, 1987;

Moorthy, Ratchford and Talukdar, 1997) and without detailed evaluation of the other

alternatives (Alba and Hutchinson, 2000; Chernev, 2003; Coupey, Irwin and Payne, 1998;

Slovic, 1995). In close relation to information search, evaluation of alternatives has also

gained a momentum in recent research (Laroche, Kim and Matsui, 2003). Their study on

consumers use of five heuristics (conjunctive, disjunctive, lexicographic, linear additive,

4

and geometric compensatory) in the consideration set formation found that conjunctive

heuristics is the most often used decision model. Conjunctive heuristics means that a

consumer selects a brand only if it meets acceptable standards, the so-called cutoff point

on each key attribute consumer regards as important (Assael, 1995, p. 249; Solomon,

2001, p. 280). In this non-compensatory method of evaluation, a consumer would

eliminate a brand that does not fulfill the standards on one or two of the most important

attributes, even it is positive on all other attributes.

Consumer choice behavior can either be approached by utilizing different choice models

(Chintagunta, 1999; Bockenholt and Dillon, 2000; Swait and Adamowicz, 2001) or neural

networks to model selection decisions (Papatla, Zahedi and Zekic-Susac, 2002). Papatla

et al. (2002) examined empirically brand choice and store choice in regard to margarine,

detergent and tissue. The research found that while neural networks have higher

probability of resulting in a better performance, hybrid models guaranteed equal or better

results than stand-alone models. It has also been pointed that many decision strategies

used by consumers can change due to person-specific, context-specific, and task-specific

factors (Dhar, Nowlis and Sherman, 2000; Swait and Adamowicz, 2001). Therefore,

mathematical modeling has its limitations in regard to the fact that consumers tend to

utilize different approaches to make choices. Thereby, researchers should pay more

attention to factors like task complexity and context in modeling choice behavior (Swait

et al, 2001). Moreover, Coupey, Irwin and Payne (1998) found that the influence of task

and context factors might be greater in situations in which consumer has little prior

knowledge and experience.

It is widely accepted that the traditional problem solving approach involving rational

decision making to the study of consumer choice may not be suitable for all situations, or

is at least incomplete to understand choice behavior. Limited information search and

evaluation of alternatives led to a situation in which consumer choice is also driven by

hedonic considerations (Dhar and Wertenbroch, 2000). In general, a common distinction

to be made is that while the utilitarian goods usually are primary instrumental and

functional, hedonic goods provide fun, pleasure and excitement. It has been noted that

many choices have both utilitarian and hedonic features (Batra and Ahtola, 1990), and

thus it can also be proposed that the choice between mobile phones has both utilitarian

5

(for example, communication, time planning) and hedonic (for example, games, camera)

features. The younger the consumer the more hedonistic features consumers tend to value

in mobile phones (Wilska, 2003).

Quite similarly, consumer choice can also be approached from the perspective of

conscious and nonconscious choice (Fitzsimons et al., 2002). Quite many choice

situations occur outside of conscious awareness and with limited information search

(Kivetz and Simonson, 2000) and it can be stated that many choices have both conscious

and nonconscious motives. Fitzsimons et al. (2002) found that in many cases

nonconscious influences affect choice much more than is traditionally believed by

researchers.

1.2 Statement of Problem

Mobile phone markets are one of the most turbulent market environments today due to

increased competition and change. Thus, it is of growing concern to look at consumer

buying decision process and cast light on the factors that finally determine consumer

choices between different mobile phone brands (Karjaluot, 2005). Mobile phone

manufacturers, distributors and retails need to know who buys their product, how they

buy, when and where they buy, why they buy and how they respond to marketing stimuli.

(Solomon, 2001). Consumer behavior is defined as the processes involved when

individuals or groups select, purchase, use, or dispose of products, services, ideas, or

experiences to satisfy needs and desires (Solomon, 2001). On this basis, this article deals

with consumers' choice criteria in mobile phone markets by studying factors that

influence intention to acquire new mobile phones. The study aims to determine whether

key factors such as handset price, design and technology impact on the buying behavior if

mobile phone handsets.

1.3 General Objective

The objective of this study was to examine consumer buying behavior of mobile phones

and to investigate the reasons underlying mobile phone handsets change.

6

1.4 Research Objectives

This study was guided by the following research hypothesis:

1.4.1 The effect of demographics on the evaluations of different attributes related to

mobile phone handsets choice.

1.4.2 The effect of psychographics on the evaluations of different attributes related to

mobile phone handsets choice.

1.4.3 The effect of behavior on the evaluations of different attributes related to mobile

phone handsets choice

1.5 Importance of the Study

1.5.1. Knowledge Gap

This study is to help the mobile phone industry as a whole by assisting in filling the

knowledge gap on the understanding consumers choice criteria in mobile phone markets

by studying factors that influence intention to acquire new mobile phone handsets.

1.5.2 Building of Knowledge

This study builds the knowledge pool in the area of consumer behavior in selection of

mobile phone handsets.

1.5.3 Appreciation of Consumer Behaviour

The study will also assist in ensuring that consumer behavior is appreciated when

determining factors that influence selection of mobile phone handsets.

1.6 Scope of the Study

The main target location and audience include the students of USIU. Primary data

collection method will be used in this study. The information was collected using

questionnaire based on the research questions. The questionnaire was based on the three

research questionnaires: The effect of demographics on the evaluations of different

attributes related to mobile phone handsets choice; The effect of psychographics on the

evaluations of different attributes related to mobile phone handsets choice; The effect of

behavior on the evaluations of different attributes related to mobile phone handsets

choice. During the process of data collection, although majority of the respondents took

7

their time to fill in the questionnaires, it was noted that some students filled in the

questionnaire in a hurry which could result in misleading results.

1.7 Definition of Terms

1.7.1 Hedonic

Hedonic, or experiential perspective, as it is also called (Hirschman, 1982), does not limit

its scope of interest only to attitudes, but many other aspects of consumer behavior are

included. Also, much attention is focused on consumer and environmental 'input'

variables.

1.7.2 Demographics

Demographics is the study of populations. Demographics make use of a wide range of

data, including the size of a given population and its birth rates. Demographics are about

everyone: who you are, where youve been and where you are going. Demographics

explain about two-thirds of everything: which products will be in demand, where job

opportunities will occur, what school enrollments will be, when house values will raise or

drop, what kinds of food people will buy and what kinds of cars they will drive. The

further ahead in the future you are looking, the more relevant demographics will be to

you. (Foot, 1996)

1.7.3 Psychographics

Psychographics and demographics are similar in that they both refer to the characteristics

of groups and individuals. Where they differ is in what types of characteristics they

describe. Demographics uses traits of people such as age, gender, occupation, home size,

income, number of children, etc. Psychographics instead focuses on peoples actions,

including preferences and lifestyle choices (Holladay, 2004).

1.8 Chapter Summary

To summarize, consumer choice behavior can be studied through various frameworks

such as the problem solving paradigm and through consumer choice from product class

through brand choice. The next chapter presents a review of the literature related to

consumer buying behavior of mobile phones and the reasons underlying mobile phone

change. The literature review is organized or categorized according to the following

8

research questions: The effect of demographics on the evaluations of different attributes

related to mobile phone handsets choice; the effect of psychographics on the evaluations

of different attributes related to mobile phone handsets choice; the effect of behavior on

the evaluations of different attributes related to mobile phone handsets choice. Chapter

three elaborates on the research design and population. This study utilized descriptive

research design and the population is the case organization students. Chapter four

presents the data which was analyzed using SPSS and Ms Excel and presented in form of

chart and tables. Finally, chapter five presents discussions based on the findings followed

with conclusions on the research and recommendations for further research.

9

CHAPTER II

2.0 LITERATURE REVIEW

2.1 Introduction

All marketing decisions are based on assumptions about consumer behavior (Hawkins,

2007). In order to create value for consumers and profits for organizations, marketers

need to understand why consumers behave in certain ways to a variety of product and

services offered. In order to determine the factors that influence the preferences of the

todays consumers, an understanding of how consumers generally think and behave in

buying situations is vital.

Understanding consumer behavior and knowing customers, have and never will be

simple. Consumers may say one thing but do another. They may not be in touch with their

deeper motivations. They may respond to influences that change their mind at the last

minute. These issues have lead to theories like that of the black box approach taken on by

(Futrell, 2000). It refers to how marketers are not able to tap into consumer minds, thus

keeping them in the dark. In other words, marketers can apply various stimuli and

observe the conduct of consumers, but they cannot observe the consumers' actual thought

processes. This hidden information is considered to be the black box. In an attempt to

obtain some understanding, marketers study consumer behavior. Researchers (Hawkins,

2007) describe consumer behavior as the study of individuals or groups and the mental,

emotional and physical processes they use to select, obtain, consume and dispose of

products or services, to satisfy needs and wants, and the impact that these processes have

on the consumer and society.

This study focuses on independent variables which ensure that above recommendations

and/or conclusions are taken into consideration. Recommendations such as taking into

account hedonic considerations, conscious and non-conscious choices will be covered by

varying demographic, psychographic and behavioral factors and studying the effect on the

choice.

10

Source: Author (2011)

Figure 2: Dependent and Independent Variables taken into Consideration

This study will focus on identifying the effects on price, design and weight when the

independent variables above change.

2.2 The Effect of Demographics on the Evaluations of Different Attributes Related

to Mobile Phone Handsets Choice.

Demography is the study of populations. Demography makes use of a wide range of data,

including the size of a given population and its birth rates. Demographics are about

everyone: who you are, where youve been and where you are going. Demographics

explain about two-thirds of everything: which products will be in demand, where job

opportunities will occur, what school enrollments will be, when house values will rise or

drop, what kinds of food people will buy and what kinds of cars they will drive. The

further ahead in the future you are looking, the more relevant demographics will be to

you. (Foot, 1996)

Demographics is one of the forces affecting acquisition of mobile phone handsets and but

this research will focus on three main demographically-related factors namely culture, age

and gender.

Dependent Variable Demographic

Psychographic

Behavioral

Handset

Price

Handset

Design

Handset

Technology

Culture

Age

Gender

Performance and Image

Dimension

Technology Adoption

Informational Influence

Utilitarian Influence

Value-Expressed Influence

11

2.2.1 Culture

The mobile device market has widened to a global scale and consequently mobile devices

are distributed throughout the world (Kim and Lee 2005). As the use of mobile phones

pervades the world, the globalization of mobile device user interface design is becoming

more crucial to business success and building a loyal customer base. Communications

technologies are entirely dependent on a social network for adoption and use, and

therefore the diffusion of these technologies within a culture should be studied

(Urbaczewski, Wells et al. 2002). The context of the mobile user includes user culture

and the influence of culture on mobile phone use (Urbaczewski, Wells et al. 2002; Teo

and Pok 2003a; Jones and Marsden 2005). This necessitates a review of culture as an

essential part of understanding users and the factors that influence mobile phone usage.

The word culture originally stems from an agricultural root: culture as cultivation of

the soil and plants (Hartley 2002). Applying this to people offers a metaphor for the

cultivation of products, minds and social relations. There are various definitions of the

term culture. Culture can be seen as the social production of sense, meaning and

awareness (O'Sullivan, Hartley et al. 1994). Culture can also be seen as learned behavior

consisting of thoughts, feelings and actions (Del Gado 1996), while Hall (1990) describes

culture as communication through words, material things and behavior.

Honold (2000) argues that it is more meaningful to find a definition of culture that suits

the specific area of research than to produce a general definition. Ford (2005) defines

culture in the context of HCI as the patterns of thinking, feeling, and acting that

influence the way in which people communicate among themselves and with computers.

This definition is also applicable to mobile interaction and we consequently adapted it for

the purpose of this study to consider culture as the patterns of thinking, feeling, and

acting that influence the way in which people communicate among themselves and use

mobile devices.

According to Palen et al. (2000), deployment of mobile telephony varies noticeably

internationally and even among western countries. In general, usability studies aim to

make technology more useful. Cultural usability goes further and aims to make

technology fit in with the users lifestyle (Sun 2004). In order to be effective, designers

12

therefore have to understand and be aware of the cultural priorities and the value system

of users, for instance, they must identify factors that are relevant and sensitive to cultural

differences. Fitzgerald (2004) presents four models used for managing cross-cultural

software: Cultural dimensions, measuring different cultures according to a number of

cultural variables or factors (Marcus and Gould, 2000); Cultural markers, using cultural

dimensions in measuring interface design elements that are prevalent and possibly

preferred within a particular cultural group (Badre, 2002); Cultural behaviors, measuring

on-line behavior of web site users in terms of a four-factor model (Fitzgerald, 2004);

Activity theory, viewing peoples activities as an object-oriented and tool mediated

process in which actions are mediated through the use of artefacts (including tools and

languages) to achieve a transformative objective (Sun 2004).

Closer to the field of research, Baumgartner (2003) researched the importance of cultural

dimensions in the field of user-interface design. The following five dimensions were

ranked most important: Context, as described by Hall (1959; 1976); Technological

development, referring to the rate of technological development, and scaling from

advanced to backward; Uncertainty avoidance as described by Hofstede (1995); Time

perception as described by Hall (1959; 1976); Authority conception or power distance

according to Hofstede (1995); race, income, disabilities, mobility (in terms of travel time

to work or number of vehicles available), educational attainment, home ownership,

employment status, and even location

In the context of mobile phone design and usage existing research into the effects of

culture has been aimed at the culture-based preferences for specific design attributes

(Choi, Lee et al. 2005; Kim and Lee 2005) and the distinction between universal and to-

be-localised components (Lee, Ryu et al. 2005b). The following studies represent the

general trends, all using Hofstedes premises: Choi et al. (2005a) looked at cultural

influences on functionality design of mobile data services by comparing 24 Korean,

Japanese and Finnish users. They found 52 attributes considered important by mobile data

service users and identified 11 critical attributes related to the user interfaces of mobile

data services devices. The critical attributes such as minimal keystrokes, iconic menu

style, logical ordering of menu items, variety of fonts and font colours, etc., all showed a

clear correlation with characteristics of the culture of the users country (as identified by

13

Hofstede); Kim & Lee (2005) investigated cultural influence and mobile interface design

to clarify the relationship between cultural traits and mobile phone interfaces. Their

subjects came from the USA and Korea. The results suggest van Biljon J., Kotze P.:

Cultural Factors in a Mobile Phone Adoption ... 2655 a possibility of cultural impact on

icon recognition. They found that Korean subjects performed better using concrete

representations, while American users preferred the abstract icon representations; Lee et

al. (2005b) studied multi-cultural usability in mobile phone navigation in a laboratory-

based usability experiment with participants from the USA, West Africa, Eastern Europe

and South America. They collected cross-cultural usability information in the product

development process to determine universal and to-be-localized components, detect

mistakes that lead to critical miscommunication, and assess the usability of cross-cultural

user interfaces. Their study was again based on Hofstedes premise, but combined with

the work of Jordan (1998) on pleasurable products. They found no real differences

between the various cultures for the issue of supportiveness, but found evidence that the

perception of the same icons differs across cultures.

Based on the findings of these studies it can be argued that culture and mobile phones

have been researched to some extent, but what we found lacking is a model to integrate

the findings on culture with the other factors that influence mobile phone adoption and

usage.

In order to propose such a model it is necessary to clarify the relationship between the

social and the cultural aspects of mobile phone usage. Socially the emphasis seems to be

on finding new ways to use mobile phones in enhancing socialisation (Jones and Marsden

2005; Schiphorst 2006) and the use of mobile phones to eliminate physical location as a

determinant of communication (Geser 2004). For the purpose of this study, culture is seen

as a specific manifestation of social behavior. Social influence will therefore encompass

cultural influence.

2.2.2 Age in the Context of Mobile Phones

Sabnavis (2002) identified three different consumer types of three generations in India.

Traditional consumers of pre-liberalization phase (1960-70s) were, stable, inward looking

and had limited choices. They kept their family needs on the top and their own personal

14

needs were subordinate to their family needs. They avoided risk. In the transient phase

(1980-90s), the consumers were more risk taking than their predecessors. They had

experienced multi-choices and had a tendency to be better off than their parents.

Economically, they had no fears or concerns. The new millennium consumer tends to

enjoy life. He has greater self-control, and looks for personal style and pleasure.

Exposures to variety of products and enhancement of economic status have changed the

attitudes of the upper middle class consumers towards brands. Indian society being

hierarchical in nature is therefore, status conscious (Sahay and Walsham, 1997).

Indians give very high value to brands. In India, a brand is a cue to quality because the

quality of the unbranded products varies widely (Johansson, 1997). According to study

conducted by Maxwell (2001) on testing of homogeneity versus heterogeneity of global

consumption in a cross-cultural price/brand effect model; Indian consumers in

comparison to Americans are tougher for the marketers to sell their products. However he

found Indian consumers more price and less brand conscious.

Technological innovations such as cellular phones and digital televisions have attracted

the attention of marketing researchers as regards to their adoption process (Saaksjarvi,

2003). Rogers (1976) has provided a classification of adopters in terms of innovators,

early adopters, early majority, late majority and laggards. But now consumers are also

looking into the compatibility of the new products to their self-image and life style

(Saaksjarvi, 2003). Funk and Ndubisi (2006) observed a considerable association between

color and the choice of an automobile. The study further identifies the gender moderation

on the relationship between different color dimensions and the product choice.

According to Barak and Gould (1985), younger consumers are greater fond of

fashionable/stylish products than older ones. Young consumers are normally more willing

to try new products and they are interested in asking more information than older ones. It

makes them self-confident and that is why they are more likely to be opinion leaders and

less hesitant in brand switching. But one should not ignore the older consumers also. The

studies have revealed that the older consumers are wealthy, innovative and they also have

a tendency to be the part of a typical consumption system (Szmigin and Carrigan, 2001).

They can be a prime market for the luxury products. However they give more preference

15

to comfort or convenience than any other feature of the product. It also needs to be

recognized that most older people accept and enjoy their life stage, and are as willing to

spend their money as any other generation, but only if the product and the message are

relevant (Carrigan and Szimigin, 1999). On the other hand, the youth, which is more

informed, pragmatic, opportunistic, demanding and restless, will always seek excitement

in products and services (Sharma, 2004).

It is normally perceived that young buyers try new products, seek greater information and

are more self-confident in decision-making. Elderly consumers are selectively innovative

and they accept only those innovations that provide exclusive benefits (Nam et al, 2007).

Therefore, age and life cycle can be the delicate variables (Kotler and Keller, 2006) in the

consumer behavior process.

About 20 years ago, Gilly and Zeithmal (1987) studied how elderly people adopt new

technologies of that time, namely, Automatic Teller Machines, scanner-equipped grocery

stores, electronic fund transfers, and custom telephone call services. The central

conclusion of the study was that any new technology must also meet the needs of the

elderly. They found out, that elderly people, who are traditionally considered to be

resisting to change, do adopt new technologies, when they are suitable and easy enough to

use for them. Role of targeted marketing was found to be of critical importance (Gilly &

Zeithmal 1987). Another study in early 1990s on elderly peoples adoption of Automatic

Teller Machines (Smither & Braun 1994) revealed that mechanical-reasoning skills and

positive attitude toward ATMs increased the willingness to adopt the new technology.

Smither and Braun (1994) highlighted the importance of usefulness, convenience, safety

and complexity of innovations. Mathur (1999) developed a model to interpret adoption of

technology within socialization framework, which means that the influence of

socialization agents or change agents is taken into account. Pertaining to elderly people

these agents can be family members, like children or grand-children, who may trigger

cognitive steps (awareness and interest about technology) and behavioral steps (trial and

adoption of technology) as defined in socialization framework. The older the person is,

the more difficult the adoption of technology is likely to be, which in turn increases the

role of help from family members. An important implication for marketers and policy

16

makers was that younger family members also make often the decision of acquiring new

technology for their elderly relatives.

2.2.3 Gender in the Context of Mobile Phones

Mobile phone choice and use has also been found to be related to prior consumption

styles. According to a fresh survey of Finnish young people aged 16-20, it was found that

mobile phone choice and especially usage is consistent with respondents general

consumption styles (Wilska, 2003). The research showed that addictive use was common

among females and was related to trendy and impulsive consumption styles. Instead,

males were found to have more technology enthusiasm and trend-consciousness. These

attributes were then linked to impulsive consumption. The study concluded that genders

are becoming more alike in mobile phone choice. Because individual differences in

consumption patterns are obviously identifiable, we assume that background variables

especially have an influence on mobile phone choice.

Men and women purchase and relate products for different reasons (Dittmar et al, 1996).

They are subjected to different social pressures (Darley and Smith, 1995). Male and

female have a propensity to be right and left hemisphere reliant respectively (Meyers-

Levy, 1994). Males are generally self-focused while females are responsive to the needs

of both self and others (Meyers-Levy, 1988). Coley and Burgess (2003), in their empirical

study on wide range of products such as clothing, consumer electronics and books etc.

had found significant differences between men and women with respect to both affective

and cognitive process components. Rocha et al (2005) had also experienced different

requirements for clothing and fashion products based upon age and gender. Laroche et al

(2000) had found gender differences in relation to acquisition of in-store information for

buying Christmas clothing gifts. Vankatesh and Morris (2000) studied the moderating

role of gender in the adoption of a new software system. They revealed that the

determinants of adoption vary between genders; perceived usefulness of the technology

was the major factor considered by men for the acceptance of new software. In contrast,

the perceived ease of use of the software and the normative influence (for instance,

influence of peers and superior perception) were found key determinants for women. Ease

of use and normative influence had not been found significant for men. Men consider the

most prominent sign; they are more likely to focus on task effectiveness of a technology

17

without considering risk. In contrast, women are detailed processors and consider all

information available including the ones that are understated and potentially

disconfirming.

Women are then more likely to incorporate risk and other secondary information in their

decisions and behavior (Graham et al, 2002). Williams (2002) investigated the effect of

social class, income and gender effects on the buying perceptions, attitudes and behavior.

The products like dress clothing, garden tools, automobiles, wedding gifts, living room

furniture, childrens play clothing, kitchen appliances, casual clothing and stereos were

selected that varied in durability, necessity, expressiveness and gender orientation. The

study emphasized on understanding the evaluation criteria, which correspond to product

attributes and the benefits expected by the consumers. Both men and women rated

utilitarian criterion high over the subjective criterion. Women attached importance to all

criteria across all products, while men gave importance to only price. However Goldsmith

(2002) found consistency for both men and women while examining personal

characteristics of frequent clothing buyers.

2.3 The Effect of Behavior on the Evaluations of Different Attributes Related to

Mobile Phone Handsets Choice.

The purchase decision of products such as mobile phone, which are used publicly, is

strongly influenced by the consumers reference groups (Bearden and Etzel, 1982;

Bourne, 1957). Studying the customer preference groups give a good indicator of the

behavior of the consumer.

2.3.1 Influence of Social Reference Groups

The purchase decision of products such as mobile phone, which have been used publicly,

were found to strongly influenced by the consumers reference groups (Bearden and

Etzel, 1982; Bourne, 1957). Mobile phone manufacturers have been applying such

interpersonal influence in their advertising and marketing practice. For example, an

advertisement focused on personalization through color faceplates was used when

Siemens launched its series of GSM phones in USA during 2002, while a mobile phone

looking like a compact case complete with a mirror inside was promoted by Samsung

(Luna, 2002).

18

As the increased demand of mobile communication, there has been an increasing research

stream in the current literature addressing various issues related to mobile communication

(m-communication) and mobile commerce (m-commerce) (Barnes and Corbitt, 2003;

Siau and Shen, 2003; Scornavacca and Barnes, 2004; Laukkanen and Lauronen, 2005).

Some recent examples include: an overview of the mobile communication industry for its

global trend in the 21st Century by addressing all related hot topics such as mobile

market, mobile applications and m-commerce (Kumar, 2004). Specifically, Kumar (2004)

explored the competitive landscape of the mobile phone market based on competing

protocols or standards, airtime carriers and handset providers, and compared the key

characteristics of US mobile market with both European and Asian markets. Massoud and

Gupta (2003) investigate the consumer perception and attitude toward mobile

communication through a consumer survey.

Following the trend, Wen and Mahatanankoon (2004) describe a study on m-commerce

operation modes and applications for both consumers and industries; while Chan and

Chen (2003) focus on the usage pattern of web-based support system for mobile phone

purchasing and reveal five important factors for mobile phone purchasing decision: the

quality of signal transmission, product shape and color choice, the size and weight, price

along with associated service fees, and ease of use. They conclude that a good we-based

support system can enhance the quality of phone service to customers and thus become an

attractive lure in mobile phone purchasing selection.

Regarding the consumer purchasing behavior of a mobile phone, in addition to traditional

marketing claim that a consumers purchasing motivation will be influenced directly by

the phone and service related factors including: new technology, phone design and

appearance, the relative price, and the associated calling plan, consumer behavior

research on consumers social and interpersonal environment has indicated that the

mobile phone consumers final purchasing decision will also be influenced by reference

groups (such as friends, family, work associates and etc.) on whether to buy a specific

product and which brand or model to choose among competing alternatives (Moschis,

1976).

19

Social and interpersonal influence research can be traced back to Hyman (1942), who first

elaborated the term reference group when he asked respondents with which individuals

or groups they compare themselves. The term has been redefined thereafter with

additional research and now with a broader definition the reference group refers to the

groups used by an individual to direct ones purchasing behavior in a particular situation.

More specifically, the reference groups in this research consist of not only the groups that

an individual has a frequent contact with (such as family members, work associates,

friends, classmates and etc.) but also include the groups that an individual does not have a

membership in or a direct contact with, such as certain expected group or people in a

certain social level (Hawkins et al., 1998). Bourne (1957) studied group influence in

marketing and behavioral research, and concluded the concept of the reference group has

a pervasive influence on marketing studies. The research on reference groups has been

used thereafter as a basis for a variety of applications in several different fields. For

example, it has been argued that the reference group concept should be applied in

behavior studies of specific groups, such as: farmers, scientists, alcoholics, mentally ill

patients, and of course, different segments of consumers (Hyman and Singer, 1968). In

some follow-up research, the reference group theory was applied to more social groups

including: physicians (Coleman et al., 1966), auto owners (Grubb and Stern, 1971),

cosmetic users (Chao and Schor, 1998), religious change and alcohol use (Beeghley et al.,

1990), and students and housewives (Park and Lessig, 1977; Bearden and Etzel, 1982). In

the business practice, marketers have applied these concepts widely by portraying

products being consumed in social situations and inviting prominent/attractive

spokespersons to endorse products.

There are many published reports in the current literature on the consumer behavior from

the perspective of reference group influence with the broad defined concept. Witt and

Bruce (1972) suggested seven influence determinants including perceived risk, expertise

of the referent, and the individuals need for social approval. One study found that

consumers used both reflective and comparative appraisal to choose their products

(Morchis, 1976). Another revealed that consumers would not only apply direct and verbal

interaction to obtain the evaluations from reference group, but also observe reference

group members behavior to make a decision and suggested that the individuals choice

20

of different brands might also be influenced by ones reference groups (Bearden and

Etzel, 1982). Comparing young students with generally more conservative housewives,

Park and Lessig (1977) concluded that American students were more likely to be

influenced by reference groups than general American housewives were when making

their purchasing decisions and that the advertisements and promotions utilizing reference

group had more direct and significant influence over consumers final purchases. In their

research, Park and Lessig (1977) developed the first set of scales for measuring reference

group influence functions, concluding that reference group influence varied across

products. Bearden et al. (1989) believed that consumer susceptibility to interpersonal

influence is a general trait that varies across individuals and developed a scale to measure

it. Becker (1991) found that demand by a typical consumer is positively related to

quantities demanded by other consumers by exploring restaurant pricing. Wooten and

Reed (2004) suggested that consumers with high susceptibility to normative influence

tend to use protective self-presentation to avoid undesirable disapproval.

In summary, the existing literature has demonstrated that reference groups have

significant influence on consumers purchasing behaviors. While a consumer may

consider whether to follow the group consciously, in most cases, one will agree with the

group subconsciously.

An individual who is more susceptible to interpersonal influence will try to satisfy

reference groups expectation by complying with groups norms here refer to those

compliance expectations for every group member within a particular social background,

or acting in an expected role displayed by the group.

Previous research has identified three major types of reference group influences:

informational influence, utilitarian influence and value-expressive influence (Park and

Lessig, 1977; Bearden and Etzel, 1982), which are briefly described below.

2.3.2 Informational Influence

The informational influence is based on the desire to make informed decisions and

optimize the choice. Kelman (1961) suggested that an individual would accept an

influence that improves ones knowledge and ability to cope with the environment.

21

The informational influence only functions when the individual regards the behavior and

value of reference group members as potentially useful information and takes them into

consideration. Especially when a consumer lacks the knowledge of a certain product and

the experience of purchasing this item, one may perceive the information and

recommendation from his/her reference group as credible and thus accept them with

certain confidence. Marketing practical applications can be seen from the use of expert

power and internalization in advertising with the ads that feature doctors impersonating as

spokespersons for over-the-counter medicines.

2.3.3 Utilitarian Influence

This influence can be explained by the so-called compliance process in which an

individual is willing to satisfy a certain groups expectation in order to obtain the praise

or to avoid the punishment from the group (Kelman, 1961). A best demonstration for the

utilitarian influence may be the famous Asch Experiment in which participants were

found to willingly conform to the group answers, even changing their original right

answers (Rock, 1990). From a marketing research view of point, that is, by suggesting in

the advertisements that one could obtain social approval and acceptance by just using a

certain commodity, or in an opposite direction, by suggesting that one might be reject by

a certain group by not using a specific product, will have an influence on certain groups

of consumers. A good example is an advertisement for personal care products in which

consumers are punished by co-workers or friends for not using anti-dandruff shampoo,

deodorant or mouthwash in fact take advantage of the reference groups utilitarian

influence.

2.3.4 Value-Expressive Influence

This influence may be best explained by the identification process in which people are

willing to better express themselves to the society by making themselves similar to the

group that they want to belong to (Kelman, 1961). Under this influence, one may actively

follow the groups beliefs and rules while neglecting the praises or punishments, and

decide to completely accept and internalize the value of that reference group. One good

example of using this influence in marketing practice was used by soft drink giant Pepsi,

the company has aired its Young Generation brand image extensively so that its targeted

consumers had accepted the value of this specific group. Electronic products giant Sony

22

has a famous celebrity playing a successful managers role in its Sony mobile phone

advertisement and implying that people who use the same mobile phone will have the

same characteristics with that expected group

2.4 The Effect of Psychographics on the Evaluations of Different Attributes Related

to Mobile Phone Handsets Choice.

Psychographics and demographics are similar in that they both refer to the characteristics

of groups and individuals. Where they differ is in what types of characteristics they

describe. Demographics uses traits of people such as age, gender, occupation, home size,

income, number of children, etc. Psychographics instead focuses on peoples actions,

including preferences and lifestyle choices (Holladay, 2004). This study addresses

performance, image/impression and technological dimensions that relate to peoples

actions.

2.4.1 Performance and Image/Impression Dimensions

Emotional aspects of human perception are important in problem solving, decision

making and overall cognitive process (Ortony et al. 1988, Feist 1994). Perceived

image/impression, and related emotions are key factors in the design of the physical

product. Yet they are rarely referred to. Although subjective satisfaction was mentioned

by the International Standards Organization (ISO 1998) as they define usability as: the

effectiveness, efficiency, and satisfaction with which specified users can achieve

specified goals in particular environments few studies have investigated user satisfaction

as a part of usability (Nielsen and Levy 1994).

Important concepts of usability have concentrated on the functional and utility- oriented

aspects (Shackel 1986). Recently, however, an increased interest in attitudinal aspect of

usability has been noticed (Kwahk et al. 1997, Jordan 1998, Kanis 1998). Although

subjective impression can be influenced by the performance of a product, the emotional

aspects, or the image of product plays an important role in forming customer perception

(Han et al. 2000). The terms, emotionalusability or behavioral usability have been

used to describe the image/impression aspects of product design (Logan et al. 1994,

1995). Although slightly different in concept and wording, many researches have studied

satisfaction (Shneiderman 1998), sensuality in user interface design (Hofmeester et al.

23

1996), pleasure of use (Jordan 1998) and aesthetics in usability (Tractinsky et al. 2000).

Moreover, it is now widely accepted that image/impression plays an important role in

peoples perception of product quality. In these aspects, topics such as hedonic quality

(Helander and Zhang 2001), image/impression quality (Yun et al. 2001) and total

ambience quality (Jindo and Hirasago 1997) are being increasingly recognized. There

have been several attempts to define the relationship between image and impression and

design of a product. The most noticeable research has been performed by Nagamachi

(2002). His term, Kansei Engineering, is an attempt to translate the customers feeling

(Kansei in Japanese) of a product to design elements (Nagamachi 1995). Inspired by

Nagamachi substantial research has been conducted to study customer

feeling/impression/image and their effect on various types of product design, including:

car interiors (Tanoue et al. 1997), automobile speedometer design (Jindo and Hirasago

1997), construction machinery (Nakada 1997), shoe design (Ishihara et al. 1997), cyber-

shopping mall design (Kim and Moon 1998), and mobile phone design (Chuang et al.

2001). In all of these studies the semantic differential method was used to elicit the

components of user preference (Faulkner et al. 1983). The studies examined important

interactions between Kansei words and design elements. Since the procedure and

analysis largely depends on the selected Kansei words, it is however difficult to interpret

or generalize the results of individual studies.

Because of the inherent ambiguity in expressing design with image/impression words

such as emphasizing elegance or soft and smart design, it is not clear how these can be

translated into actual design elements. Since little attention has been given to the actual

process of defining the relationship between various image/impression factors and actual

design variables, it is also difficult to use the Kansei engineering process in a systematic

way.

Based on these arguments, Han et al. (2000) proposed an alternative method of explaining

the relationship between usability and design elements of a product. In their study,

usability elements were selected from a pre-determined hierarchy of human feelings and

impressions. The usability dimension included both the objective performance and

subjective image/impression. In their study, they viewed usability as the integration of

two different dimensions, (a) performance dimensions and (b) image/impression

24

dimensions. The performance dimensions, which measure user performance, were broken

down into three categories: perception/cognition, learning/memorization, and

control/action. The perception/cognition dimensions are used to examine how easy it is

for the users to perceive and interpret the interface of a product. The

learning/memorization dimensions explain how fast the users can learn the product and

how well they can remember its functions. The control/action dimensions explain the

users control activity and its results. All together, a total of 23 performance dimensions

were defined.

Similarly, the image/impression dimensions were broken down into three categories:

basic sense, description of image, and evaluative feeling/attitude. The basic sense

dimensions are related to the primitive image and impression of the product. The

description dimensions explain the image and impression of the product that the users

would describe based on their experience with the product. The evaluative feeling/attitude

category dimensions explain the attitude or judgmental feeling about the product.

Twenty-five image/impression dimensions were defined in their study. The details of the

selection and screening process related to usability dimensions are described in Kwahk et

al. (1997).

Second, the product in the study was decomposed into specific human interface elements,

the collection of objects that users see, hear, touch or operate. Finally, models were built

in a systematic way to describe the functional relationship between the usability

dimension and the human interface elements (Han et al. 2000, 2001).

Mobile phones are becoming increasingly popular. Due to the competition in this new

market, many companies are gearing towards a consumer-orientated approach in their

product design. In specifying design elements of mobile phones as well as other consumer

products, conjoint analysis technique has been used to collect consumer preference data.

Conjoint analysis in product design is usually conducted based on the assumption that

consumers evaluate the value/utility of a product/service by combining separate aspects

of utility provided by each product attribute (Hair et al. 1995).

25

The design of mobile phones is slightly different from general consumer electronic

products such as audio/video, home appliances and computers. Consumers seem

toperceive the hardware/software/service of a mobile phone as a single entity while the

design and planning of each element are typically managed by different companies.

This trend will be amplified as the design of products considers more individual customer

needs as the part of mass customization (Yun et al. 2000). The motivation of the study

was based on the idea of describing the image/impression of a product as a consumer

need to be transferred to each hardware/software/service design team for specific product

realization. Specifically, the image/impression evaluation gathered from the consumer

survey can be treated as the utility score, the most important input of conjoint analysis.

Mobile phones in South Korea differ from each other in almost all design features,

including shape, colour, size, and material. Due to the integration of functions such as

address books, calendars, and multi-media contents, a significant number of software

usability issues are introduced in menu design, icon interface, message management,

animation, and so forth. A possible way to approach this design problem would be a

model-based evaluation; that is, identifying the functional relationships between user

satisfaction and the specific design features of a product.

Researchers have investigated simple motives for mobile phone use, such as convenience,

personal efficiency, and security, as well as complex reasons such as information

immediacy, contactability, social interaction, and social control (Madel, 2004, Ree, 2007,

Haste 2005). Most research has focused on the influence of mobile phones on society

rather than on personal lif e(Campbell, 2003 and Kats, 2007). As mobile phones become

more prevalent and influence peoples everyday life from more dimensions, previous

research is insufficient in explaining the general populations new attitudes toward mobile

phones. On one hand, people begin to consider their mobile phone as a highly

personalized object. Its appearance and the way it is used, particularly in public, reflect

peoples personal preferences and identity. On the other hand, the phones multifunction

makes it possible or even inevitable for people to take a phone call anytime, anywhere.

Especially for the old and weak, the mobile phone is viewed as a necessity in case of

emergency. Thus, some groups of people may depend on mobile phones. As previous

26

research does not involve the newly emerging aspects of the influence of mobile phone on

personal life, such as self-character extension and dependence, the present study

hypothesizes three dimensions of attitudes towards mobile phones in general population:

sense of security, sense of self-character extension, and sense of dependence. Sense of

security refers to the mobile phones ability to reduce uncertainty and bring safety to

people. (Katz, 2007) first identified this dimension. Studies show that security concerns

are a major reason many people acquire mobile devices. This dimension has been

confirmed by different studies, (Campbell, 2003 and Kats, 2007) suggesting that it is a

consistent construct. Sense of self-character extension emphasizes that the mobile phone

is not only a communication tool but also the extension of the persons physical self.

(Ling 1999) People can build and show their identity and character by using the mobile

phone in a personalized way. Decorating mobile phones with personalized background

images as well as utilizing the special ring tones is especially popular among

youth.(Green, 2003 & Ling, 2001) Therefore, we define the perception of personal

physical self when using mobile phones as the dimension sense of self character

extension.

Sense of dependence reflects that as mobile phones have become more involved in

peoples lives, a strong propensity for continuous access to the phone and for using them

in public has resulted in people becoming dependent on mobile phones. For example,

some users always have their mobile phones with them and always leave their phones on.

Some of them feel lost when they leave their mobile phone at home and believe they

cannot be successful without a mobile phone. These feelings are different from

problematic mobile phone use,(Bianchi, 2006) which is probably due to preexisting

factors that lead the users to engage in problematic and excessive use of mobile phones.

Moderate dependence, such as longer time spent using a mobile phone during the week

and more monthly mobile phone expenditure in a general population, does not constitute

a mental disorder and does not impair mental and social functioning. This attitude has not

been mentioned in previous studies. We define it as a sense of dependence, wherein

one perceives dependence on a mobile phone, viewing it as a necessity and being

unwilling to part from it.

27

2.4.2 Technology Adoption

Another important aspect that has risen from different studies is that consumers purchase

new phones due to the fact that their existing ones capacity is not appropriate referring to

the idea that new technology features such as built-in cameras, better memory, radio,

more developed messaging services, and color displays are influencing consumer

decisions to acquire new models (In-Stat/MDR, 2002; Liu, 2002; OKeefe, 2004). Thus it

can be expected that new features will influence the intention to acquire new mobile

phones, and therefore the following hypothesis was developed

There has been little research regarding adoption of wireless (mobile) devices, but there is

a solid foundation of theories and previous studies on technology adoption (Kleijnen, M.

and K. de Ruyter, 2003, Van Akkeren, J. and D. Harker, 2003). The decision by a

company to utilize cell phones in the business, is in essence a technology adoption issue.

A number of theories have been developed to help explain the concept of technology

adoption (Mennecke, B. and Strader, 2003 and Kleijnen, M. and K. de Ruyter, 2003).

One widely accepted model is the Technology Acceptance Model (TAM) (Davis, F.D,

1989, 1993). Davis (1989), in an innovation adoption and diffusion model, emphasized

the theoretical constructs of perceived usefulness and perceived ease of use as a means of

predicting user acceptance of information technology. Adams et al. (Adams, D.A.,

Nelson, R.R., and Todd, P.A, 1992) replicated Davis research for fixed voice and e-mail.

They refined the measurement scales and utilized structured equation modeling to explain

interactions. In later research using the TAM model, Davis results indicated that while

ease of use is clearly significant, usefulness is even more important in determining user

acceptance (Davis, 1989). Lederer, Maupin, Sena, and Zhuang (2000) investigated TAM

for workrelated tasks involving the web. Their findings provided support for TAM and

also corroborated that usefulness has a stronger effect than ease of use.

Rogers (1995) identifies five attributes of an innovation that help to explain the rate of

technology adoption: Relative Advantage (degree to which innovation is perceived as

being better than the idea it supersedes); Compatibility (degree to which innovation is

perceived as consistent with existing values, past experiences, and needs of potential

adopters); Complexity (degree to which innovation is perceived as relatively difficult to

28

understand and use); trialability (degree to which innovation may be experimented with

on limited basis); observability (degree to which results of innovation are visible to

others). In his discussion of the attributes of innovation, Rogers states Cellular phones

have an almost ideal set of perceived attributes, and this is undoubtedly one reason for the

innovations very rapid rate of adoption in the U.S. (Rogers, E, 1995). Rogers then

describes how cell phones meet all of his attributes.

The Davis and Rogers models are both widely supported and followed, and are also

complementary. Daviss two main constructs can fit quite nicely within the Rogers

model.

Specifically, usefulness is similar to Rogers factor of relative advantage and ease of use

is similar to Rogers factor of complexity (Agarwal, R. and Prasad, J, 1997).

The Rogers factors were enlarged to include perceived risk (Eastlick, M.A. and S. Lotz,

1999). We include this since cell phones are vulnerable to security and privacy violations.

Another specific factor for cellular devices is payment and cost (Kleijnen, M. and K. de

Ruyter, 2003) and we likewise include it. Since studies of mobile adoption (Van Akkeren,

J. and D. Harker, 2003) point to present applications dominated by voice communications

and simple Internet, but a future of complex web, Internet, and e-commerce enhanced

uses, we have added web connectivity as a factor.

This study will emphasize concern for reliability of mobile devices, the importance of

technology product suitability, digital standards and web-connectivity. In sum, the two

major models and recent studies seek to explain user adoption and acceptance of

technology. The theoretical framework combines the Rogers and Davis models, and the

present study adds the factors of cost, security, reliability, digital standards, technology

product suitability, and future web-connectivity

2.5 Chapter Summary

This chapter presents a review of the literature related to consumer buying behavior of

mobile phones and the reasons underlying mobile phone change. The literature review is

organized or categorized according to the following research questions: The effect of

29

demographics on the evaluations of different attributes related to mobile phone handsets

choice; The effect of psychographics on the evaluations of different attributes related to

mobile phone handsets choice; The effect of behavior on the evaluations of different

attributes related to mobile phone handsets choice. The next chapter introduces the

research design, population, data collection methods and data analysis methods which

were used in thus study.

30

CHAPTER III

3.0 RESEARCH METHODOLOGY

3.1 Introduction

This chapter contains the research methodology which is planned for this particular study.

The type of research design, population, sample, sampling techniques and data collection

methods will be addressed. The data analysis and data presentation methods will also be

addressed in this chapter.

3.2 Research Design

The researcher used descriptive design in the study. Descriptive research is conducted to

describe phenomena as they exist. It is used to identify and obtain information on the

characteristics of a particular problem or issue. Descriptive research goes further in

examining a problem than exploratory research, as it is undertaken to ascertain and

describe the characteristics of the pertinent issues (Hussey, 2009)

3.3 Population and Sampling Design

3.3.1 Population

A population is a collection of individuals who have one or more personal or

environmental characteristics in common (Williams, 1978). The research was focused on

the students of United States International University (USIU). This is because of the ease

of accessibility and the regular interaction with the students. USIU had a total population

of 4,207 students at the time the research was being carried out.

3.3.2 Sampling Design

A sample is a group of people that was representative of the population (Cooper and

Schindler, 2001). It is a way of selecting a portion of the population so that the selected

portion is representative of the entire population. (Chandran Emil, 2004).

3.3.2.1 Sample Frame

This is a comprehensive list of individuals or unit in the population from which selection

of the sample is made. (Chandran Emil, 2004). A list of students was obtained from the

registrars office at the university for this purpose.

31

3.3.2.2 Sampling Technique

Random sampling technique was utilized in selection of the sample where any student

who came was handed the questionnaire. (Yates et al, 2008).

3.3.2.3 Sample Size

The case organization, United States International University had a total of 4,207 students

when the research was being carried out. Mugenda & Mugenda, 1999, state that a sample

population of 10 percent to 50 percent is required. A sample size of 10 percent was

picked to represent this population as all of the students could not be approached. The

sample size was therefore 421 students of which 392 questionnaires were returned.

3.4 Data Collection Methods

The information was collected using a questionnaire which is based on the research

questions: The effect of demographics on the evaluations of different attributes related to

mobile phone handsets choice; The effect of psychographics on the evaluations of

different attributes related to mobile phone handsets choice; The effect of behavior on the

evaluations of different attributes related to mobile phone handsets choice.

3.5 Research Procedures

A pre-test was carried out with 5 students to ensure that the expected types of data needed

are being acquired from the respondents. The questionnaire was given out to a minimum

of 421 students using the random sampling technique.

3.6 Data Analysis Methods

The researcher utilized quantitative method of data analysis. The quantitative analysis is

applied using descriptive statistics. Descriptive statistics was used to summarize a

collection of data in a clear and understandable way. Data was analyzed using SPSS and

Ms Excel and presented using tables and pie charts to give a clear picture of the research

findings.

3.7 Chapter Summary

The chapter describes the methodology that was used in carrying out the study. The

research design is descriptive and the population is the case organization students. The

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data was analyzed using SPSS and Ms Excel and presented in inform of chart and tables.

The next chapter presents all the results of this study arranged as per the research

questions.

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CHAPTER IV

4.0 RESULTS AND FINDINGS

4.1 Introduction

This chapter analyzes the data collected from the respondents. It will explore at the

following factors that affect mobile phone handset purchase. Interpretation will be drawn

from the same to determine how each factor influences the acquisition of mobile phone

handsets.

Data was collected using a questionnaire that was laid out in the Likert scale format. This

gives the respondents a selection of variable options to choose from. The information is

presented using frequency and percentages. Charts and also bar graphs are used to

supplement the former tools so as to enrich understanding.

4.2 Demographic Factors

This section presents data on age and gender of the respondents who participated in filling

out the questionnaires.

4.2.1 Age of Respondents

The questionnaires sought to get the age of the respondents. Since age is an issue for

many people the questionnaires plotted age in brackets as a measure of sensitivity to all

standing.

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SOURCE: Survey data on USIU Students

Figure 3: Age of Respondents

From the results we can see that 43 percent of the respondents were in the 20 to 25 age

group followed by 21 percent in the 36 to 30 age group.

4.2.2 Ethnic Group of Respondents

The ethnic group was obtained for the purpose of the study to determine whether or not

the culture of respondents affects the purchasing behavior.

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SOURCE: Survey data on USIU Students

Figure 4: Ethnic Group of Respondents

The results above show that most of the respondents were non-national ethnic with 25

percent, followed by Kikuyu with 22 percent, other national ethnic group with 13 percent

and Luo with 15 percent. The remaining were below 10 percent

4.2.3 Gender of Respondents

The survey received a good response in terms of gender balance with 51 percent being

female. Factors influencing mobile phone purchase in past studies have shown differences

in choices made between male and female consumers, therefore this question aims to help

determine such factors.

Table 1: Gender of Respondents

Gender Respondents

Female 199

Male 193

Total 392

SOURCE: Survey data on USIU Students

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4.2.4 Respondent who own a Mobile Phone Set

Before asked about factors that influence mobile phone purchase, respondents were first

questioned on whether or not they did own one. All 392 respondents owned a mobile

phone handset.

4.2.5 Brand of Current Mobile Phone Handset

The questionnaire sought to obtain the mobile phone handset brand and this, based on

previous studies has shown be one the factors that determine purchase.

SOURCE: Survey data on USIU Students

Figure 5: Brand of Current Mobile Phone Handset

Nokia is the highest use mobile phone amongst the respondents used by over 50 percent

of respondents, followed by Samsung which is used by over 15 percent of the

respondents, follows by Sony Ericsson, Apple and Blackberry which are used by over 7

percent of the respondents. The remaining brands were used by less than 5 percent of the

respondents.

4.2.6 Recency of Purchase of Current Mobile Phone Handset

The recency of purchase of the respondents current mobile phone was used to determine

how new the mobile phone handset is. From the chart below, it shows that more than 34

percent of the respondents purchased their mobile phone handset within the last one year

but more than six months ago and 17 percent purchased their mobile phone handset

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within the last three months and last six months respectively. This goes to show that 70

percent of the respondents bought their mobile phone handset within one year.

SOURCE: Survey data on USIU Students

Figure 6: Recency of Purchase of Current Mobile Phone set

4.2.7 Major Use of Current Mobile Phone Set

The questionnaire sought to determine the greatest use of the mobile phone handsets. It

shows that 60 percent of the respondents used the phone mainly to communicate with

friends and family, while 17 percent used it mainly for work and business, followed by 14

percent who used it mainly as a fashion statement. A minimal amount of respondents

used it because of the technology it presented.

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SOURCE: Survey data on USIU Students

Figure 7: Major Use of Current Mobile Phone Handset

4.2.8 Aspects of Current Mobile Phone Handset

The questionnaire sought to determine the views of the respondents towards their current

mobile phone handset so as to determine which factors of the current handset was

satisfying the respondent the most. The questionnaire also sought to determine the overall

satisfaction of the respondents mobile phone handset.