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INRODUCTION
In today’s society, people are becoming more and more reliable on technology
especially when communicating with others. Smartphones have been one of the
trends since the early of 21 century. The emerging of different operating system in
smartphone has made smartphone one of the necessities of life where it can act as
communication device and even can act as a computer. In mobile phone industry,
Smartphone is a one of the highly technology device that allowed users to connect
with each other and transfer information to around the globe. Smartphone has
brought a lot of benefits to the society, the beneficial aspects includes, it allows
users to call and talk straightway, send short message service (SMS), assist business
and even help in legal matters such as track criminal via tracking system.
Smart phone usage is still at the introductory stage in Africa with just 2% market
size in comparison to china with 27% Europe with 17%, emerging Asia with 14%
and North America and Latin America with13% and 14% respectively, (okoye,
2013). Jawaheer, et.A.,l (2014), states that the larger the portion of smartphone
users is technocentric young consumers which university students are part of it.
Nowadays, consumers tend to shift their preferences from basic cell phones to
smart phones and this is the major reason why mobile phone manufacturers move
their production towards smart phones (chow et. al., 2012). In the case of Nigeria,
smart phones are predominantly used to run social media applications and the
larger percent of the user are young consumers. Also, Nigeria has one of the fastest
smart phone markets penetrations in Africa after South Africa (Osuagwu, 2014).
From the fore going it is expedient for every potential and actual smart phone
that it is not enough to be product driven or technology driven without bringing the
power of consumers in to the centre of the business. Consumer perceptions are the
different ways that individuals sense external information, select particular sources
of information and how they interpret this information (Belch G. & Belch M.,
2009, p1180. This implies that people perceive the same situations differently
because they interpret and organize information. In the smart phone market,
perceptions are more important than the reality as it affects consumer’s actual
behavior.
The crave for smart phones especially among young consumers is at an increasing
rate (okoye, 2013). This has called for the need to determine the factors that
influence university student’s perceptions while in the cause of purchasing a
smartphone.
perceptions towards the purchase of smart phones with reference to the students of
As a number of mobile phone manufacturers and marketers have entered the smart
phone market, the competition in the smart phone market becomes more and more
fierce. Some of the major international companies are Samsung, Apple, Sony,
Nokia, a smart phone manufacturer, used to dominate the smart phone market, but
Why is it happening? The reality is that people are now living in the highly
developed and technologically advanced society and have a great deal of choices
In this ‘technology savvy’ era, it is very difficult to study, analyse and interpret
consumer perception. Smart phone companies and marketers are even willing to
study consumer perception towards smart phones. Although many researches and
studies have been preliminarily carried out on the consumer perception and
Moreover, although there have been many researches carried out previously on
consumer perception towards smart phones, these studies are alien to the Nigerian
environment and were carried out in different cultural settings.There has not been a
research carried out on this subject matter in Nigeria especially in the south-east
Nigeria with special reference to university students. In order to fill this existing
group of consumers have the highest smartphone rate. This age group is the
The broad objective of this study is to empirically investigate the factors that determine
ii. To know the effect brand name has towards purchase of smartphones.
iii. To determine the effect product features has towards purchase of smartphones.
1.4 Research Questions
ii. What effect does brand name have towards purchase of smartphones?
For the purpose of this study, the following null hypothesis would be tested.
The study is restricted to measuring and exploring the consumers' perception towards
purchase of smartphones. The topic chosen for study is on evaluating the consumers'
perception and determining the comparators consumers will use in their evaluative
perception is one of the important success factors now a day. The importance and
attention given to a smartphone is rapidly increasing every day. The complexity and
process of a smartphone getting more intense. Companies needs invest a lot of money
and time to understand the customers and their perception about the product. It is
very essential to have significant information about the customers and their
customers. Hence, this research will provide a more information for smartphones
strategy. Similarly, the research can be a foundation for those who are willing to
Understanding the consumer perception is one of the important success factors now
a day. Companies need to invest a lot of money and time to understand the
customers and their perception about the product. Consumers make decisions on a
evaluation of alternative options that could meet the consumers expressed need,
Consumer perception can be referred to as the many different ways that an individual
can sense external information, select particular sources of information and how
they intemperate this information (Belch G. & Belch M., 2009, p118). This means
that the people who have the same motivation and are in the same situation may not
act the same because they perceive the situation differently. Perception is the process
by which people select, organize, and interpret information to form the image of
certain things. People perceive the same situation differently because they interpret
and organize information uniquely. Hawkins and Mothersbaugh (2010) explain that
perception begins with consumers’ exposure and attention to marketing stimuli and
ends with their interpretation of the stimuli. Consumers’ perception is not only
smartphone market, perceptions are more important than the reality, as it affect
consumer's actual behavior. There are four processes that explain why people from
1. Selective Attention
Selective attention is the process that people screen most stimuli out as the capacity
over 1,500 ads, which indicate that marketers have to try their best to attract
consumers' attention. People are more likely to notice stimuli that relate to a
current need, that they anticipate, and whose deviations are large in relationship to
existing belief and expectations. Selective distortion can be helpful with strong
brands when consumers interpret neutral or ambiguous brands information and make
it more positive.
3. Selective Retention
Selective retention implies the tendency that people forget much of the information
that they are exposed, but they still retain information that matches their attitudes and
4. Subliminal Perception
thought. A topic that has fascinated armchair marketer for ages is subliminal
perception. They argue that marketers embed covert, subliminal message in ads or
packaging .consumers are not consciously aware of them, yet they affect behavior.
Although, it's clear that mental process include many subtle subconscious effects , no
evidence support the notion that marketers can systematically control consumers at
that level , especially enough to change moderately important or strongly held beliefs.
that can only use to transmit alert signals and send short messages. In the 1973,
hand phone was invented by Motorola researcher Martin Cooper. The traditional
hand phone is design in large and bulky in size and only carry some basic function
such as call and short messaging system (SMS). Hand phone is now further
redefined to small and compact version. From the hand phone that consists of
Nowadays, smartphone has been deeply accepted by most people around the world
It is a mobile phone that integrates a feature phone and a mobile computing platform,
and the models today even combine functions such as digital cameras, media players,
High-speed data access via Wi-Fi, GPS navigation, and other applications with option
A study has shown that smartphones has a lot of benefits such as its complexity,
Nigerian market which is growing rapidly is very lucrative market place for the
Blackberry, Apple, Techno etc are producing smartphones with different features and
price range.
Although the literature has provided the many potential benefits of Smartphones,
researchers have also suggested that there may also be probable factors which can
Yeow and Wong (2012) and Malviya, Saluja, & Thakur (2013) in Indore City, India
quoted that product features, social influence, price, and brand name are factors
demand is affected by a lot of factors which includes price, branding, appearance and
performance, these factors affect and shape consumers perception towards a
particular product or brand. Therefore, in the study price, brand name, and
• Price: Price may be defined as the value of product attributes expressed in monetary
the expected or offered utility (Ramachandra et al. 2010). Besides that, according to
Stanton (1992), price is the amount of money or goods needed to acquire some
combination of other goods and its accompanying services. Price is the element of
the marketing mix that is stable in certain period but at one moment the price might
be increase or decrease and price become as the single element that revenue from
the selling. Although, price is an element of marketing that is stable, however price
is also subject to fluctuation. Price is one of those factors, which affects the
purchase intention of consumers directly. Price makes consumers think should they
get this specific product or a similar product for a cheaper price. It has a positive
impact on behavioral intentions. Price is one tangible cue from which consumers form
expectations. If we look at the Smartphone's market, we find the price of the different
Smartphone varies differently. Some are expensive and some are cheap. There is an
active relation between price and consumers satisfaction. Consumers tend to pay a
higher price for a product if they are satisfied with that. Furthermore, sometimes they
buy high priced Smartphone to demonstrate their social status. The level of price is
found to positively affect behavioral intentions mainly because price establishes image
of the brand in the eyes of the consumers. In a consumer's heuristics, a high price
connotes a high quality and image. For a conceptual convenience, there are two types
of products by price: low priced brands and high- priced brands (Kunal et al., 2010).
Low-priced brands tend to be purchased for utilitarian value, with the consumer
relying on the perceived value for price. Consumers would typically look for low
prices of these brands or substitutes to get the best value (Kunal et al., 2010).
Consumers tend to interpret higher prices with higher quality, and low prices are
brands on the market whose image is seen as the key factor. Consumers of these
brands often purchase them mainly for image and are willing to pay a premium price
for their perceived high quality and status, which make them price-inelastic. On the
hand, there has also been a study that proves high-priced imposed on products leads
clear is that consumers are very heterogeneous in terms of their attention and
reaction to price and promotions. This literally means that products that have a
negative effect when it is high priced. In general, these products mostly compete on
cost-leadership strategy, whereby each company will try to manufacture the goods
oriented pricing method a company must try to understand what value consumers
place on the benefits they receive from the product and set a price consistent with this
value to make the price more effective and acceptable. The consumers evaluate the
product price based on the values like status, satisfaction and so on, which are difficult
to measure, but the company must analyze the consumer's value and set price
from others especially in smartphone industry that always keep changing the
technology. The organizations have to find new technology that are not available in
the market and meet the demands of the customers. Brand name can be an identity
and exclusivity that represent the organization. The American marketing association
defined brand as any name, term, sign, symbol, or design, or combination of these
that identifies the maker/seller of the product or service and differentiates it from
brand name that can be as an invaluable assets to their products and services.this can
attentive product and finally decided to purchase a product from a specific brand.
When costumers purchase particular brand frequently, he or she uses his or her past
experience about that brand product regarding performance, quality and features
marketing cost and failure rates are cut down. (Martinez &Pina, 2010) Furthermore,
brand name signified a level of quality and consistency consumers could trust where
this can be seen from a few high technology companies like Intel start to building up
the brand name since year 1991 which can result in short term recognition and long
term profit.
Consumer of smartphone can be really influence by the brand name as when they try
to purchase a smartphone, a strong clear and nice image of brand can increase the
Product Feature: Product is anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want or need (Kotler, Philip,
use with variety of function. feature is an attribute of a product that meet the
satisfaction level of consumers’ needs and wants through the owing of the product,
usage and utilization for a product(Kotler, Armstrong and Gary, 2007). In these
modern days of technology consumers have come to realize that different feature will
bring a diverse level of satisfaction towards smartphone (Chow, Chen, Yeow Wong,
2012).
The design and appearance of phones on the perceived scale of design features, such as
phone size and weight, color, material, button shape and interface features influence the
impact with the quantity demanded where the product features with the difference
function can give the differences satisfaction to the consumers, Product features
which is important element by the reason of consumers purchase the goods for
expected satisfy their need and achieved their satisfaction level. Features like
numerous operation system continue to play a significant role in fulfill the satisfaction
of the consumer. Apart from operating system (OS), the camera is the feature that
smartphone users focus on (Chow et al., 2012). The commonest operating systems
(OS) for smartphone in Nigeria are Andriod, windows mobile; IOS (Internet operating
system) and RIM Blackberry Thus, functionality for Smartphone will be important
tool to influence the consumer choice. This is due to reason that the consumer will
and marketers should take cognizance of product features as it can determine their
choices.
There are many theories in consumer perception and purchasing decision towards
work include:
In the theory developed by chow; chen; yeow; and wong (2012); Factors Affecting
that product features, brandname, price and social influences are the determining
This study adapted this theoretical model because it captures the main objectives of
this study, which is to investigate the determining factors that young adults
consider in the course of purchasing a smart phone and also the model was based
falls into the category. The young adults can be classified as university students.
More so, this model was developed in Malaysia, a country that has similar
Brand Name
Demand of
Price smartphone
Social Influence
Source: Chow, M.M.; Chen, L.H; Yeow, J.A. & Wong, P.W. (2012)
consumers' needs and wants through the owning of the product, usage, and
Brand name may be defined as the valuable assets that help correspond quality
and suggest precise knowledge structures which are related to the brand
Price on the other hand can play a role as a memory value whereby the consumer
to trade it with the service or products that were being sold by the sellers (Nagle
&Holden, 2002). Price will always be the key concern of consumers' before
Social influences means one person causes in another to make a change on his or her
Malaysia. In this highly technology oriented society, the usage of mobile phones has
increased worldwide especially among young consumers are currently the most
appealing and attractive markets for firms to earn huge amount of investments. They
developed a model which has its variables as brand name, product features, price,
social influence and purchase intention of smartphone. They found out that the
Product Feature
Brand Name
Social Influence
Source: AziraR.,Safin S.Z., Kheng L.K, Abas N., Ali S.M, 2016, on the factors influencing purchasing
There are two variables being discussed, which are independent variable and
purchasing decision of smart phone is the dependent variable in the research. The
four independent variables includes product features, brand name, price and social
Brand name is veritable assets that help correspond product quality and suggest exact
knowledge structures which relate to the brand (product).it is the most significant
attribute in the selection parameter amongst the customer which was followed by
Social Influence implies one person's cause in another to make a change on his/her
feelings, attitude, thoughts, and behaviour. Social influence includes the influence of
can be discussed as predisposition of the customers with regards to their actual purchase
action. It describes individual’s inclination in purchase of product and how they categorize
Following the theories reviewed so far the researcher decided to adapt from the
i. Price
These three variables were adapted to support the researcher's own study.
model.
Price
Consumers’ perception
Brand Name toward purchase of
smartphones
Product Features
The empirical framework explains those scholars and researchers that have done
India. This was written by Malviya, Saluja, and Tharkur, 2013 from the department of
marketing, university of Indore, India. The major purpose of the study was to explore
was adopted to investigate the perception of the consumers, attributes and its
questionnaire and analyzed using the data analysis using frequency tables, charts and
chi-square analysis. The result in the study revealed that branding, design, product
performance and price have the influence on people's buying decision process.
Azira R., et al; (2016) conducted a study on the factors influencing purchasing
name, social influence, and price and purchase intention of smartphone. Data was
gathered from 367 students from UiM Kedah. Four hypotheses were used to test the
relationship between the independent variable such as product features, brand name,
social influence, price and purchase intention of smart phone and Cronbach Alpha was
applied to test the reliability of the scale. Findings of the research states that while
affects the purchase intentions, the important factors which influence the customers
smartphone purchase behavior among young adults in Anambra State, by finding the
using multiple regression and result shows that features, brand name, price, social
behavior towards smartphone among young adults.Liao, et al, 2012 undertook a study
WASEDA, China. The main purpose of the study was to identify the influence of
Hawkins, Best and Coney (2004), Abraham Maslows Hierarchy of needs and other
university and the result shows that product design, branding, product performance
and price have the influence on people's buying decision process toward purchasing
relationship between price, Brand compatibility and social influence. Data was gathered
from 379 respondents young Adults aged 19-26 years who live in perils. Four hypotheses
were used to test the relationship between the independent variables and purchase
intention of smartphone using correlation and multiple regressions. The study therefore
reveal that price, brand, compatibility and social influence has positive influence on
GAP: Severally literatures were reviewed by researchers as shown above; from the
literature the researcher sought to identity several factors that determine consumers'
the variables that can also influence consumers in their purchasing decisions
Anambra state as no research on the subject matter has been carried out in the district
before.
CHAPTER THREE
METHODOLOGY
conducting this study. The methods to be used in the collection and analysis of data
identifying variables and their relationship to one another. Research design is the
design used is the exploratory research design. In this research study, the survey
method which involves collection of data from a group of people known as the
The population is the totality of items which the researcher is interested in. It is the
aggregation of elements from which the sample is actually selected. (Ojo, 2005).
For the purpose of this research work, the populations consist of selected
Sample size determination involves determining the sample size needed, that would
predict the whole population. Whatever data are obtained from the representative
Since the population of this study is infinite, we adopt the Taro Yamane formula
n= N
1+N( e)2
1= unity (a constant)
3499
Therefore n=
1+34999(0.052 )
3499
1+87.4975
= 395
3.4 Sampling technique.
or respondent for the research due to the availability and familiarity to the
researcher
The data source of this research work is made up of two types: the primary and
secondary data. The primary source used is questionnaire. The use of SPSS will be
used for proper and accurate analysis of data, while linear regression method will
The major research instruments used in this work was questionnaires. The
The questionnaires was divided into two parts; part one involves the collection
demographic data of respondents, part two consist of twelve questions that is based
on the variables used in the research. This questionnaire is designed in such a way
Face validity: Face validity depends on the researcher's subjective evaluation of the
The research instrument used in this study will be tested for reliability using the
Cronbach'salpha method to test. Nunnaly (1978) said that the Alpha which is more
than 0.7 indicated a high reliable. Therefore according to the table below the
.738 20