Factors That Influenced Consumers Choice of Mobile Phones - Term Paper Example

Consumer Behavior Assessment Executive Summary There has been a rise in the number of phones production by the available and upcoming electronic companies. These companies are situated in different parts of the world thus; the phones are made accessible to a large group of people. With the emergence of a wide variety of phones, people have experienced a problem in the choice of phones and plans that they should decide on in order to acquire the desired phones. This situation has led to the structuring of a plan where a comparison between the varieties of phones that appeal to different people is made. In this case, using a variety of phones with different features, a decision matrix would be created, an evaluative criteria identified and a conclusion would be drawn on the kind of phone that a consumer is likely to choose. This would be calculated using the Compensatory Decision Rule. However, the use of demographic differences would help a great deal in explaining the difference in the preferences of the phones. In this case, the factors of; age, gender, personality, family situation, income and ethnicity would be looked at keenly. A final conclusion would be drawn on the final decision that a consumer is likely to make in relation to the preferable phone. Table of Contents Executive summary……………………………………………………………………………..2 Introduction…………………………………………………………………………………….4 Decision matrix………………………………………………………………………………....5 Application of Compensatory Decision Rule…………………………………………………..6 Analysis of Choices…………………………………………………………………………….7 Conclusion…………………………………………………………………………………….12 Reference List…………………………………………………………………………………14 Introduction In the world of business, the main factor that affects the economy and the selling and buying of goods are the consumers. They play a critical role in ensuring the goods that are provided in the market are consumed as expected by the producers. However, the most essential factor that determines the purchase of goods by the consumers is based on their behaviors. In this case, there are a variety of factors that define the consumers of mobile phones. With the increase in the number of phones with stylish trends, consumers tend to upgrade their phones every now and again (Nagel, 2003). This is to ensure that, they are in the same line with the changing market for the phones. There are so many factors that determine the kind of phone that a consumer would purchase from a mobile phone shop. The availability of online buying has also presented the consumers with a clear view of the phones that they would choose. Hence, the consumers survey the mobile phone market and then, get to choose the kind of phone that would suit them at all perspectives. The factors that are often looked at when wanting to buy a phone include; the type of screen, storage size, Phone and plan total costs, value, data, operating system, contract duration and camera (Riquelme, 2001). Thus, depending on the qualities that a consumer is looking for in a phone, he /she would purchase to satisfy his interests. In this report, the phone that would be looked at are; BlackBerry Bold 9900, iPhone 4S 16GB Black, BlackBerry curve 9320, HTC Desire C Black, Samsung Galaxy S III 16GB White and iPhone 5 16GB White. The plans would include; Vodafone, Telstra and Optus. Thus, consumers are affected by their personality traits and in this case, this report shall look at the two types of personality traits which include; introverts and extroverts. The demographic factors are also crucial especially when looking at the varied interests. A DECISION MATRIX ON MOBILE PHONE AND PAY PLAN CHOICES RATING OF EACH MOBILE PHONE AND PLAN OPTION AGAINST THE EVALUATIVE CRITERIA Respondents Mobile Phone + Pay Plan Opera-ting system Color screen Camera Storage Size Phone & Plan total costs Contract Duration Value Data Total (0/40) Cynthia BlackBerry Bold 9900 4 4 5 4 3 5 5 4 34 iPhone 4S 16GB Black 5 5 5 5 2 5 5 4 36 David BlackBerry curve 9320 4 4 4 5 2 5 5 4 33 HTC Desire C Black 4 4 4 3 2 5 5 4 31 Caro Samsung Galaxy S III 16GB White 4 5 5 5 5 5 5 5 39 iPhone 5 16GB White 5 5 5 5 3 5 5 4 36 Analysis of Choices From the above recorded data, it is evident that the choice of mobile phones and plans is dependent on a variety of factors. These factors are attributed to the behavior of the consumers, in terms of their interests, wants and needs. In this case, the varied factors define the kind of mobile phone and plan that one would choose to buy. Due to the changing market of mobile phones market and the rising competition among the producers, the phones change every now and again, and technology has subsequently contributed to the high purchase of phones in the market. This is because, every individual around the world want to be updated about the new trend in the market and this would go for the latest and most convenient phones in the market. The youth are said to be driven by the brands and affordability of the phones. However, a majority of the consumers are driven by the convenience and the features that a particular phone represents. In this case, one would purchase a phone because he is attracted to the features that seem to satisfy his needs. Some of the factors that attract a lot of consumers are the Multimedia messaging services (MMS) and e-mail services. In this case, using the Multimedia Messaging Services, a person is able to communicate to a number of people on one-on-one grounds. This is fascinating as information is transmitted very fast to a large group of people. Therefore, a lot of factors contribute to the choice of mobile phone and plans. First and foremost, it is important to analyze the responses that were given out by the three respondents. They included; Cynthia, David and Caro. The three participants had varied preferences and this was attributed to a number of factors. In this case, Cynthia was interested in BlackBerry Bold 9900 and iPhone 4S 16GB Black. She rated the two phones as 34 and 36 respectively. Her interest in these two phones was based on the features that they represent (O’Keefe, 2004), and between the two, he would choose the iPhone 4S 16GB Black. This was her choice though she further said that she would buy the BlackBerry Bold 9900. In this case, there was a difference in the choice and the mobile phone that she would buy. It is important to note that when Cynthia was putting down her scores on the mobile phones she not only looked at the evaluative criteria but she also considered the plans that the plans represented. Thus, albeit the iPhone 4S 16GB Black had the best features for her; it was obvious that the plan was too way expensive. Hence, Cynthia would go for the BlackBerry Bold 9900. Taking a keen look at the features, the iPhone 4S 16GB Black has a colored screen which is wide enough for clear viewing and its operating system is currently the best. The operating system is Apple. In this case, it proves to be the most preferable mobile phone but the plan is very expensive as it is also on a monthly basis. From Cynthia’s point of view, it is evident that, most of the consumers would love a phone that represents them with the factors that they want though the price accredited to the accessibility of the mobile phones is the main factor that drives away their urge. In this case, the limited amount of money in the consumer’s pocket makes him / her to miss the chance of owning a good phone. Therefore, the availability of the smart phones and iPhones represent a very growing society and no person would want to be left behind. In another case, David, the second participant chose BlackBerry curve 9320 and HTC Desire C Black. He rated them as 33 and 31 respectively. In this case, David would prefer to own the BlackBerry curve 9320. This is because the features that are represented by the iPhone are better than the ones represented by the HTC Desire C Black. He was most interested with the storage size, contract duration and the value if the BlackBerry Curve 9320. He rated the three characteristics as 5 which meant that it was a good mobile phone. Therefore, he said that he would certainly purchase the BlackBerry curve 9320 as it was affordable and with the monthly cost being the same as the HTC Desire C Black, he would obviously benefit more by purchasing the former. The third participant was Caro. For Caro, her preference was based on the features and in this case, she chose the Optus which had the two phones that she would prefer. These two phones included; Samsung Galaxy S III 16GB White and iPhone 5 16GB White. She rated these phones as 39 and 36 respectively. she liked all the features of the Samsung Galaxy S III 16GB White as they were all appealing though the operating system which is Android was not completely appealing to her. Comparing her two choices of mobile phones, the rating for the Samsung Galaxy S III 16GB white was high due to its affordability and it also lacked the monthly handset repayment charges. Thus, it was evident that Caro liked the phone in all aspects. Vodafone was definitely giving out a good offer on Samsung Galaxy S III 16GB. In a nut shell, it is clear that as much as features represent the factors that consumers would consider when buying a phone, the price of the phone also determines the consumer’s worth to purchase the phone. There are different companies that provide plans for mobile phones and in this case, the plans come with the provision of the mobile phones to the customers. The different companies that were in this report are Optus, Telstra and Vodafone. They all have different plans and depending on the needs and wants of a customer, the use of online survey provides an opportunity to get what is really wanted and needed (Thomas, 1998). The above participants were certainly affected by a number of factors that influenced their choice of phones. The factors included personality and demographics. In the case of personality, the three participants had different personalities. David was certainly an introvert whereas Caro and Cynthia were extroverts. David chose a phone that would less attract the attention of the public as he was a withdrawn person. This would help him cope with his withdrawn attitude and he was also fascinated with the fact that the phone would give him a chance to participate in online gaming. In this case, he preferred the phone as it would act as a substitute to people. In this case, he would be updated on whatever is going on around the world by using the internet. Caro and Cynthia were extroverts and in this case, they chose the phones that clearly suited their personalities. In this case, using the personality factor, it is clear that Caro chose the Samsung Galaxy S III 16GB White because it was certainly a phone that would expose her to a great number of people. In this case, through the use of the phone, a lot of friends would be attracted to get it thus, promote friendship as well as interaction with other adults. On the other hand, Cynthia chose the BlackBerry Bold 9900 because it would provide her with a wide view of images even though it was so bold to suit a male consumer. In this case, the fact that it would provide her with features that suit her personality, it was clear that she certainly would enjoy what she loves and use less time to access the content. The demographics that were evident in the three participants were; age, gender, and financial situation. Looking at the age factor, David was an old man and in this case, his age factor affected his mobile phone choice a great deal. Following the fact that he was aging, he needed a phone that would actually provide him with a platform to communicate and not necessarily draw attention from the public. Thus, his age allowed him to access a modern phone though not one that would expose him to a lot of people as he needed solace in his interaction (Threlfall, 1995). Thus, his choice of the HTC Desire C Black was certainly a reliable, affordable and convenient choice of a phone. Another factor that was well represented by David was the fact that he was male. The male population has the tendency to choose phones for their convenience rather than for fun. In this case, David chose the HTC Desire C Black phone in order to enhance his communication across all networks and the plan that the phone came with was also of big interest to him. This is because; the unlimited messages and $800 calls would enable him to communicate with his business partners on formal grounds. The 1.5GB would also give him a chance to look through the internet in order to gather important information. Cynthia and Caro were in their teens and this explained their choice of phones. They were at the age where how the public viewed their stuff mattered a lot (Wilska, 2003). In this case, they would not want to disappoint the public thus they went ahead and chose the phones that would enable them earn friends and also post a good picture about them. Another crucial factor that clarified the choice of these two girls was the fact that they were female. The female have a tendency to own things that enable them to be seen by others. They like expensive things just to appear as they are the best than their fellow women. In this case, they would go for the latest and most expensive accessories in order to show out themselves (Karjaluoto et al., 2003). The last but not lest demographic is the issue of financial situation, this is the most crucial factor that determines consumers’ chances to purchase a phone. In this case, the limited amount of money that is available makes a consumer to purchase a phone that is affordable. Financial situation of consumers is well explained by the needs Theory. The Hierarchy of Needs theory purports that, a consumer satisfies his needs in a hierarchical manner. In this case, the needs are satisfied starting from below and the most important needs are the Basic wants. According to Maslow, consumers are defined by five needs that should be satisfied at different levels. The needs include; the physiological need, safety needs sociological needs, psychological needs and self actualization. These needs range from the lowest to the highest. It is therefore, important for mobile phone and plans vendors to consider the needs of their consumers when coming up with the plans (Gerstheimer and Lupp, 2004). In this case, the financial situation of the three participants was the last but not the least factor that influenced their choice of phones. In this case, the mobile phones were finally defined by their plans. Thus, however good a phone was in terms of its features, its affordability was the main deciding factor. In terms of the operating system, the teens were very fascinated with the WI-FI, android and the apple operating system. Thus, the use of the window phones would suit the teens as they would be able to observe images in tiles. Hence, the three participants were influenced most by their financial situations. Thus, there were some appealing and preferred that were expansive and this made the participants to choose the less expensive phones. It is thus clear that, the features might be so good to a consumer but what matters most is the money in his pocket. Is one able to pay for the mobile phone and plan, and the monthly charges of the phone? That is the most delicate question that seems to disturb a lot of consumers of mobile phone and plans. The prices define the quality of the mobile phone to an extent. Conclusion The above report looked at the latest phones that are not options and using three participants, a survey was carried out and analysis done to determine the factor that influenced their choice of mobile phones and plans. Due to a rise in the number of phones produced by the available and upcoming electronic companies, competition has risen too. These companies are situated in different parts of the world thus; the phones are made accessible to a large group of people. With the emergence of a wide variety of phones, people have experienced a problem in the choice of phones and plans that they should decide on in order to acquire the desired phones (Swait and Adamowicz, 2001). In this case, the evident factors that affected the choice of the mobile phone and plans ranged from their personality traits and demographics. The issue on personality represented two types of personality traits; introverts and extroverts. David was an introvert while Caro and Cynthia were extroverts. In this case, these three participants chose the phones that certainly suited their personalities. The demographics that were evident were; age, gender and financial situations. The age factor affected them in the sense that the young generation liked the 3G and 4G phones as it would provide them with email services, blogging, twitter and other features that are only accessible through fast browsing. The 4G phones were the most preferable as it presents a very fast and modern speed of downloading items from the internet. The factor on gender represented another critical issue that affected the three participants a great deal. This is also a matter that affects the general consumers of mobile phone and plans as the factor of gender influence their choice of phones. The choice of the males vary from the choice of the females, the females love colored screens and operating system that is very fast (Papatla et al., 2002) . On the other hand, the male would certainly go for the phones with good operating systems in order to facilitate their businesses. However, the use of demographic differences would help a great deal in explaining the difference in the preferences of the phones. In this case, the factors of; age, gender, personality, and family situation were looked at keenly. The last but not least factor was the issue on financial situation. In conclusion, the features of the mobile phones are a great factor to be considered when purchasing a phone but the plans that come along with the phones can never be undermined. Reference List Gerstheimer, O. and Lupp, C. 2004. Needs versus technology–The challenge to design third-generation mobile applications. Journal of Business Research. 57 (12). Pp.1409- 1415. Karjaluoto, H., Pakola, J., Pietilä, M. and Svento, R. 2003. An exploratory study on antecedents and consequences of mobile phone usage in Finland. Proceedings of the AMA Summer Marketing Educators’ Conference. 14. Pp. 170-178. Nagel, A. 2003. Beyond Knut Holt’s Fusion model, balancing market pull and technology push. International Journal of Technology Management. 25 (6-7). Pp. 614-622. O’Keefe, M. 2004. 2004 worldwide camera phone and photo messaging forecast. InfoTrends Research Group, Inc. Research Report. Papatla, P., Zahedi, F., M. and Zekic-Susac, M. 2002. Leveraging the strengths of choice models and neural networks: A multiproduct comparative analysis. Decision Sciences. 33 (3). Pp. 433-468. Riquelme, H. 2001. Do consumers know what they want? Journal of Consumer Marketing. 18 (5). Pp. 437-448. Swait, J. and Adamowicz, W. 2001. The influence of task complexity on consumer choice: A latent class model of decision strategy switching. Journal of Consumer Research. 28 (1). Pp. 135-148. Threlfall, K., D. 1995. Using focus groups as a consumer research tool. Journal of Marketing Practice: Applied Marketing Science. 5 (4). Pp. 102-105. Thomas, J., W. 1998. Finding unspoken reasons for consumers’ choices. Marketing News. 32 (12). Pp. 10-11. Wilska, T-A. 2003. Mobile phone use as part of young people’s consumption styles. Journal of Consumer Policy. 26 (4). Pp. 441-463. Read More