Samsung Galaxy S5 and S6 Consumer Behavior in the UK - Essay Example

SAMSUNG GALAXY S5 AND S6 CONSUMER BEHAVIOURS IN UK The rationale of this thesis is to explore the buying decision of UK Generation X and its relationship with product concern, ease concern, reliability concern, cost concern, brand characteristic concern as well as social impact concern. The information set is gathered by means of individual-given questionnaire, and suitable probability-free random sampling technique. An overall of 127 samples was gathered from UK. The outcomes demonstrated that there is an important association between all factors with buying decision, which signifies that the Smartphone buying choice of Generation X is affected by product concern, ease concern, reliance concern, cost concern, product characteristic concern as well as social impact concern. The outcomes of this study are bound by the levels of respondents, region as well as locality, and the deficiency of other techniques to get the findings other than secondary exploration with questionnaire. This investigation is significant for advertisers to comprehend the customer’s Smartphone buying decision to be extra competitive. 1. Introduction Smartphone is a cell phone gadget which is more than simply make and accepts phone calls, wording messages, as well as voice mail. The fundamental characteristic of a Smartphone is capable to access to the Web. It may as well receive digital such as photos, music along with videos. Furthermore, Smartphone requires having the capability to apply minute computer systems known as applications (Boyd, Harper & Sidney 2009, p.12-77). From 2008 to 2011, there are more than 400,000 of cell phone applications being created and projected to have $40 billion of income by 2016 (Ashok 2010, p.34-55). With the growing improvement in hi-tech as well as telecommunication industry, levels of Smartphone consumers all over the planet are increasing. In UK, a number of the famous Smartphone products are like Samsung, Apple, Nokia as well as Motorola. Amongst these Smartphone products Samsung Galaxy S5 and S6 have the powerful competition in the marketplace. In the fourth quarter of international Smartphone marketplace 2013, Samsung productively exceeded Apple, in relation to a Reuter’s census (Lamb & Carl 2008, p. 44-56). According to Frazil, the Manger of Ericsson Customer Lab North East Asia as well as Oceania, "In UK, non-Smartphone stays popular amongst customers however Smartphone is anticipated to become dominant in the marketplace," (Atkin 2005, p.4-45). A survey by international data as well as measurement corporation Nielsen demonstrates that there will be a growing figure of Smartphone consumers in UK, where 80 percent of mobile customers plan to buy a Smartphone (Foxman et al 2008, p.482-89). Global Information Corporation (GIC) shows that, from 40 percent in year 2014, Smartphone marketplace share are anticipate to grow up to 50 percent in 2016 in the UK cell phone distributions (Foxman et al 2008, p.482-89). Furthermore, UK Smartphone consumers among the Web users are anticipated to rise considerably from 49 percent to 74 percent (Lamb & Carl 2010, p.102). It demonstrates that there is a great prospect in the Smartphone marketplace in the coming future and Smartphone manufacturer must adapt this prospect well. However, what features drive customer buying decision in Samsung S5 and S6 purchasing? In United Kingdom, the mainstream of Smartphone consumers aged from 20 to 35, high skilled as well as full time working with $ 6000 wage or more, according to a record on year 2012. Additionally, the greatest rate of internet utilization by means of the Smartphone rests in the age bracket 20 to 35 years (40 percent) and 17 to 25 years (37 percent), which is usually the Generation X (Commuri & Gentry 2000, p.1-34). Therefore, this investigatation will check into the Generation X buying decision of Smartphone, since Generation X holds the greatest Samsung S5 and S6 owning as well as utilization rate. The most significant utilization of Smartphone for consumers is for internet research (42%), social networking (38%), music (64%) and using the web on a further gadget (50%) (Commuri & Gentry 2000, p.1-34). A survey shows that the major driving factors for potential Samsung S5 and S6 consumers are Web surfing (40%), improvement from existing gadgets (33%) and apps (30%) (Commuri & Gentry 2000, p.1-34). In addition, the mainly significant criteria that influence the Smartphone buying decision is the change in society (36.5%), followed by necessities (33.5%) as well as apps (32.3%) of the Samsung S5 and S6 phones (Jennifer & Aaker 2006 347-56). In the review by Joseph & Plummer (2000, p.33-37), a number of factors are experimented such as shared needs, social impact, ease, and reliability. Social necessities, social impact, ease of use and reliability are as well tested in a research by (Kotler et al 2008, p 478). Determinants like compatibility, public impact, cost as well as comparative advantage is studied as well by Kotler et al (2008, p 478), experimented factors like entertainment, ease of use, social necessities, social impact and reliability. With numerous of chances that may influence customer decision in buying Samsung S5 and S6 cell phone, it is important for advertisers to comprehend which effect on the buying decision. However, which factors have the huge effect on the customer buying decision? Overview of Samsung Company Samsung Company Electronics Limited is largely engaged in the manufacture of customer electronic goods. It works in three business departments: customer electronics (CE) department, which consists of digital TVs (CTVs), Screens, printers, air aerations, refrigerators, washing equipment and others; data technology as well as cell phone communications department which comprises the production of PCs, handhold mobiles (HHMs), network structures, colour cameras and others, gadget solutions (GM) department, which is categorized into semi-conductor as well as display trade sections, offering active random access memory cards, flash disks, slight coat transistor-liquid crystal screens and many others. The corporation distributes its goods in domestic marketplace and in foreign country marketplaces. On October 3 2014, it reported that it has bought PrinterOn, involved in cell phone cloud printing systems situated in Ontario (Mistcal et al 2009, p. 44). Samsung Company Limited moreover reported profit reports for the foremost quarter ended April 2015. The corporation published its first-quarter total revenue plunged 40 percent as clients changed to better iPhone, constricting its earnings from the cell phone trade to less than half from a decade earlier. The corporation announced that its January-March earnings were 5.65 trillion, contrasted with 8.51 trillion one decade before. Sales dropped 13 percent from the previous year to 48.11 trillion. Equally, the operating revenue fell 31 percent 7.93 trillion, in accordance with Samsungs income glance earlier last month. The broader-than-anticipated fall in net income was because of a big income plunge in Samsungs cell phone business. This essay discusses the consumer patterns of Samsung galaxy S5 and galaxy S6in in different countries (Charles eta al 2008, p.25). 2. Literature Review 2.1. Consumer Decision Process The customer Behaviourism model proposed that customer’s buying behaviour usually goes through five phases, prior to and after the real acquirement, include requirement recognition, statistic search and assessment of alternatives, buying decision as well as post-buying behaviour (Kotler and Keller, 2012). Decision making can be classified into three diverse types, nominal judgement making, constrained decision making and extensive choice making. These are the buying participation of consumers which determine the concern for or importance in the buying process. Nominal choice making usually occur when customers buying low involvement good, low price and familiar good which is often bought. Constrained choice making is in between nominal with extensive choice making, which entail limited outside search. While extensive decision creation usually will be on the great involvement commodity; maybe costly goods and strange products. The more data search would require being performed and cautiously regarding traits. As well, for various kinds of product with diverse level of interest, customer have varied types of purchasing decision behaviour, namely multifaceted purchase behaviour, dissonance-minimizing buying behaviour, consistent buying behaviour and mixture seeking purchasing behaviour. 2.2. Brand Concern Brand is the largely precious asset for a corporation, where it gives a good and service means to customers. Brands are further than simply names and emblems. It is as well the constituent of rapport between corporation and consumers (Kotler and Armstrong 2008, p.478). The product name has directly impacted consumer’s understanding on the excellence of the offering. When consumers are contented they produce verbal communication and it will result in others to be concerned and select the product (Lee & Beatty 2002, p.24-41). To improve customer reaction, marketers struggle to make brand equity so as to capture customer preference and reliability. Product equity refers to the additional value endowed on goods and it can mirror how customers believe, sense and act with the product. According to enquiries, brand has a modest effect on customer behaviour. In terms of sexual category, it impacts ladies more than men. As well, lower wage bracket customers have a bigger influence on brand on their behaviour because of after sales overhaul and limited buying capacity (Moore 2010, 243-266). 55.7% of individuals strongly concur that they select a brand because of perceived product value (Moore 2010, 243-266). It demonstrates that brand could impact buying decisions, and it must be extra look into the outcome of factors like product consciousness, brand fairness and brand relationship has on buying choice. 2.4. Dependency Concern Dependency is the powerful tendency for constant high utilization, being busy and reluctant to be distant from it (Moore 2010, 243-266). Smartphone is no more a handset for calling and immediate messaging only. For the underage generation, online learning or E-learning has increasing fame in nations like UK, US, China s well as India. Individuals have become much reliant on Smartphone through performing most of the works by a Smartphone, where previously it may be performs with no Smartphone. In the US, with increasing dependency on Smartphone, more individual relate with the Smartphone instead of human. In UK, consumers spend about 15 hours weekly to online, with the reason of linking to persons, education, leisure as well as online buying. Samsung S5 and S6 cell phones also become a significant tool in surfing the Web (Moore 2010, 243-266). A study demonstrates that there is a positive association between campus students’ reliance and their potential buying behaviour, and “huge dependency on Samsung Galaxy S5 and S6 tends to create assessments basing on their historical experiences in projecting future buying behaviour” (Moore 2010, 243-266). 2.5. Product characteristics Concern Feature is a characteristic of a good to meet the fulfilment level of customer’ wants and desires, by owning of the good, utilization, and consumption of a commodity. Commodity features comprising hardware as well as software. Hardware refers to a gadget that may be physically touched. The hardware of Galaxy S5 or S6 is the cover of the phone, mass and weight. Color as well as shape is also classified as hardware as it is the outward appearance of the phone. On the other hand, Software refers to the common term for PC apps, process with documentation. The software of a cell phone is the operating podium, storage space, or applications that run the phone. The apps for a phone in the marketplace include iOS and Windows. 2.6. Social Impact Concern Consumer’s behaviour is affected by social aspects, like customer’s minute groups, relatives, and social responsibilities as well as status (Kotler 2008, p.478). Throughout the choice making procedure, customers tend to constantly influence through the shared group, which is the individuals. Basing on different factors, customers may listen and trust in diverse shared groups, possibly to those who are more skilled in particular fields. In the buying of Samsung Galaxy S5 and S6 for Generation X, possibly the social impact may arise from comrades, peers, households as well as spouses. According to a study, customers’ buying behaviour is determined by others, particularly by household members while purchasing high-involvement goods (Ward 2003, p.1-14). According to a new study, in UK, 37.5% of consumers feel that the drift in society is one of the vital criteria that affect Galaxy S5 and S6 buying decision. 2.7. Price Concern “Price refers to the quantity of cash charged for a good” (Kotler 2008, p.478). The value of cash differs from different individuals. Some may think it is helpful for a huge price however others may consider it does not merit for the value of funds. There are so many techniques of pricing like mark-up, target-return, expected-value pricing, existing rate pricing as well as motivational pricing (Kotler 2008, p.478). If the cut rate is low, it must be reflected in its cost; whereas if the price cut rate is huge, it must be reflected in proportion, so that consumers will have greater buying intention (William 2004, p.140-151). Findings of UK consumer behaviour of purchasing Samsung Galaxy S5 and S6 Brand Concern 40.5% of the consumers agree that they favour buying a global acknowledged brand of Samsung Galaxy S5, 50.8% of the consumers firmly agree that they favour buying only a reliable Samsung S6, 30.8% of the consumers agree that they will only purchase the preferred brand, and 29% of the consumers agree that product name is the factor affecting their choice in purchasing Smartphone. The average of the Brand Concern (Samsung Galaxy S5 and S6) variable is 14.76 while the median is 17, signifying that the average and median are in the similar central tendency (William & Ferrell 2011 200-61). Dependency Concern 35.9% of the consumers agree that Samsung Galaxy S5 and S6 usage in their everyday existence is high, 23.9% of the customers are o the fence in feeling unprotected for not having cell phones, 23.5% of the consumers are neutral by forever using Samsung Galaxy S5 and S6 for job and research, and 27.5% of the consumers consent that they cannot perform anything in their job and learning exclusive of a Smartphone. The average Dependency interest factor is 14.80 whereas the median is 16, signifying that both average and median are in the similar central tendency (Isabella 2012, p.657-671). Price Concern 32.3% of the consumers are on the fence in purchasing Smartphone on high cost, 39.5% of the consumers are undecided on acquiring Samsung Galaxy S5 and S6 in reduced price, 30.7% of the consumers is undecided with the belief of Smartphone in general is costly, and 37.1% of the consumers agree that cost is the key concern when deciding to purchase a Samsung Galaxy S5 and S6 phones. Product characteristic Concern 43.2% of the consumers in UK agree that they prefer the shape of Smartphone (S5 and S6), 44.7% of the consumers consent that Smartphone contains the apps that they require, 48.4% of the consumers consent that Smartphone Web entrance is quicker than basic handset and 35.50% of the consumers firmly agree that they utilize Smartphone (S5 and S6) because of the operating system (Isabella 2012, p.657-671). Social Impact Concern 46.8% of the consumers agree that approximately all of their peers and household members are making use of Samsung Galaxy S5 and S6 phone, 31.3% of the consumers are indecisive for peers and household members’ notion of possessing a Smartphone, 30.7% of the consumers are undecided for being affected by comrades and household members, and 31.5% of the consumers in UK are neutral for being triggered by friends around to purchase Smartphone (Isabella 2012, p.657-671). Pros that have influenced consumer behaviour of Samsung Galaxy S5 and S6 First, the smartphones have a sturdy, fashionable design. Second, the smartphones have perfect camera encounter. Third, the smartphone has huge continuous performance. Furthermore, the smartphone has Touch Wizard which is at last worth using (William & Ferrell 2011 200-61). Cons that have influenced consumer buying behaviour of Samsung Galaxy S5 and S6 Foremost, the Samsung smartphone battery span might not be good. Secondly, the Samsung Smartphone apps fingerprint sensor may be flaky. Third, it is not water resistant. Additionally, the smartphone has no micros SD or detachable battery (William & Ferrell 2011 200-61). Conclusion and recommendation Based on the data received from the survey towards factors influencing Smartphone buying behaviour on Generation X, some administrative meanings and suggestions of investigator are provided, where it may be valuable for the corporations for their potential strategies scheduling on enhancing Samsung Galaxy S5 and S6 sales. With the huge prospects in the Samsung Galaxy S5 and S6 phone marketplace in the closer future, Samsung manufacture must grasp the opportunities to meet what impacts buying decision of consumers. The research demonstrates that many of the S% and S6 smartphones consumers will regard product characteristic initially. Smartphone manufacture must examine on what characteristics the consumers demand for, for instance better icon resolution camera, improved and quicker operating structure, good s well as portable shape, and any other novel pioneering of product characteristics for both software and hardware (Isabella 2012, p.657-671). Through enhanced Product characteristic, and offering what is required, it may assist Samsung mobile manufacture to increased sales and earnings. Equally on convenience, research shows that Samsung Galaxy S5 and S6 consumers purchase them because of their convenience. With Galaxy S5 and S6, duties may be finished quicker, and consumers do not use a laptop since mobiles may do what laptop does. Furthermore, it is significant for the Samsung smartphone manufacture to create their influential product name, chiefly through innovating new things in the marketplace, or by its sole vending proposition (William 2004, p.140-151). 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