Factors Affecting Brand Preference of Samsung Mobile Phones - Research Paper Example

Factors Affecting Brand Preference of Samsung Mobile Phones Insert your name here Insert Grade Course Insert Tutor’s Name Data of submission Table of Contents 1.0.Introduction 3 1.1.Research Hypothesis 3 1.2.Research Objectives 4 1.3.Significance of the Study 5 1.4.Literature Review 5 Customer Satisfaction 5 Phone Model Preference and Purchase Intention 6 Marketing Mix and Product Attributes 8 Figure 1: Mobile Model Preference 9 Age and Model Preference 10 2.0.Research Data Collection 10 2.1.Population and Sample 10 2.2.Sample Unit of the Research 11 2.3.Research Sampling Frame 11 2.4.Sample Determination 11 2.5.Sampling Method 11 2.6.Research Instrumentation 11 2.7.Process of Data Collection 11 2.8.Research Validity and Reliability 12 3.0.Data Analysis 12 3.1.Distribution by gender 13 3.2.Distribution by income level 14 3.3.Descriptive Statistics of Model of Samsung Phone Preferred 14 3.4.Analysis between Gender and Duration of Samsung Model 15 4.0.Research Discussion 16 Appendix 1: Research Questionnaire 21 1.0. Introduction Samsung has established itself as one of the strongest producers of mobile phones across the world. Currently, the company is facing competitions from different companies and for it to remain competitive; it has to understand succinctly, factors affecting its brand preferences. Currently, mobile phones are no longer preserve for the rich, its demands continue to cut across different generations and as such, people go for different brands for different reasons but at least, as Laforet and Chen (2012) put it, there are specific reasons why people would opt for a given brand. contemporary studies from scholars such as Jang et al. (2008) have noted that Samsung continue to dominate mobile industry but found that a given brand of the same company will be preferred ahead of another as result of different factors. From this position, we recognize that though mobile phones transform the way thousands of people operate and do their day to activities, it remains necessary to ascertain reasons why consumers would buy one brand over the other. This study evaluates this position by critically analyzing factors that affect brand preference of Samsung mobile phones. 1.1. Research Hypothesis Presently, mobile phones are having undoubted impacts of people’s daily lives. These impacts on the other hand, dictate the type of mobile brand they will buy. Within this context, Samsung is moving from their functional model to a product design model that suits specific needs of its mobile users. This is therefore a quantitative research guided towards determining factors that determine preferences of different mobile brands by Samsung customers within a given location. The major problems identified concerning the mobile phone brands is to understand or conceptualise the most preferred brands and reasons behind these preferences. As a result the following are considered as independent variables Income Phone features Educational level of the user Gender Age of the user Price of the model Model attributes Therefore the research formulated the following hypothesis: Null Hypothesis (H0) there is no significant link between specific factor and Samsung model preference Alternative Hypothesis (H1) there is link between specific and Samsung model preference 1.2. Research Objectives The research’s main objective is to conceptualise factors that affect Samsung’s mobile brands preferences and the different factors that would make customers to buy one brand or model of the company’s phones over the other. As such, this objective is directional as it was will dictate on data collection and analysis since the research will be concerned with the identification of Samsung’s customer profiles and how these profiles relate to other issues such as age, locality, gender and educational level. Other objectives of the study are as follows: Identification of the Samsung’s customer profiles which are related to the to their ages, gender, locality and educational levels Determination of customers’ preferences Identification of the product attributes and how they are sought by their customers Assessment of perception and specific model preference Determining what the company expects from customers’ brand preference Understanding trends in their brand usages 1.3. Significance of the Study Samsung needs to align its management and marketing strategies with specific brand and importantly, understand its customers’ needs before introducing specific brand to the market. This study is therefore focused in understanding their customers’ choices, tastes, and preferences. Thus, this study will be significant in the following ways: The research findings will help Samsung understand its mobile brand preferences as well as practices in the market. That is, it will help the company develop specific profiles that are specific to the needs of the companies This research will be essential in the creation of the most desired brand since it will be oriented towards the buyer needs and perception as well as response The research creates deeper understanding of the functionalities of Samsung’s different models and their applicability to different customers 1.4. Literature Review This section succinctly provides different researchers that have investigated the link between a given phone model and factors that necessitated such choices. It draws different theoretical models and research findings that are specific to the statement of the problem. Customer Satisfaction Beginning with Philip Kotler theoretical model, customer satisfaction is seen as the personal pleasure that results from making a comparison of product’s pursued performance with regard to the customers’ expectations (Kotler and Armstrong 2004). Relating the theory to the case, Khan and Rohi (2013) found that customer satisfaction determine the choice of mobile brand or model they will buy and use. According to the author, every organization is keen to ensure that their brands meet customer satisfaction in one way or the other. However, Khan and Rohi (2013) argues about deviates from Liaogang et al. (2007) research that found that in general, satisfaction may not determine customer’s choice for a given brand over the other. According to the research, satisfaction is influenced by the product’s performance therefore in cases where customers are satisfied by a given brand and the brand fails to perform according to their expectation then they are likely to change the brand. Currently, Samsung dominate the market with different brands or models of phones. However, these brands satisfy their customers in different ways. Additionally, Park et al. (2013) noted that there are cases where even if companies try to satisfy customers with a given brand customers will still find a reason to switch to the other model of a phone from the same manufacturer or company. This research therefore develops rom this finding to ascertain whether there are concepts such as lowly satisfied or highly satisfied and whether these aspects have impacts on customers’ ability stay with a given brand of Samsung mobile phones or switch to another. Phone Model Preference and Purchase Intention When it comes to models or brands, Samsung defines this as the series of mobile phones they produce in sequence. It is the mobile make that identifies the company’s good or services as specific or distinct from other models they produce (Solanki 2016). Researchers have been concerned with ways in which model preference and purchase intentions are connected. Taking a case study from Vyshnavi and Rao (2016), consumers are concerned with processing of competitive brand transformation and thus the intentions to purchase are dictated by their judgment. This view has been supported by Teimouri et al. (2016) who noted that customers often arrive at a given attitude based on preferences among the brands in their choice set. What Vyshnavi and Rao (2016) argue about it that the decision to prefer a given model and the intention to purchase is informed by consumer attitude. While the two researches offer an insight on the factor that affect Samsung model preferences, there is need to understand the research findings within the context of purchase decision and purchase intention. The two researches are merely concerned with purchase intention without narrowing their data to purchase decision and factors that are specific to purchase decisions. Theories that relate to model preference and purchase intention have been used widely. Researching on brands preferences of Toyota car brands, Shrestha (2016) found that stage of consumer decision making processes to purchase depends on specific hierarchy of effect models of what they theory categorises as liking, knowledge, preference, purchase and conviction. According to Kumar et al. (2017), consumer is likely to buy a given mobile model over another because they have awareness of the model as compared with the latest. The researcher noted that in such cases, the purchase intention is influenced by the customers’ ability to recall a brand name either when prompted or not. This view was earlier captured by Shrestha (2016) who observed that knowledge is a key factor in choosing mobile models. The researcher noted that customer will find the intention to purchase earlier versions of Samsung mobile phones even when the company has produced another because they have the knowledge. In such a case, the choice will be informed by the fact that they will be having the ability to describe the essential attributes or features of the phone. Other studies have attributed purchase intention to liking (Rasheed and Anser 2017), preferences, conviction, and user friendliness. Marketing Mix and Product Attributes Studies have reached consensus that one factor that affect customer choice on a given product is the marketing mix and product attribute. According to Shrestha (2016) attractiveness of Samsung’s specific phone model or brand line are likely to sway customers into choosing one brand over the other. This view was supported by Chen et al. (2016) who noted that Samsung has what it termed as ‘transition processes where there is entry and exit of different phone models. When there are such transitions, customers are therefore attracted by a given attribute of the new model and how the company has approached its marketing mix in the process of introducing the new model in the market. Chen et al. (2016) added that for Samsung to account for the possible correlation in the preferences of the models they offer, relative model preferences will be captured through prices and attributes. This position relates to the current approach that authors have taken regarding heterogeneity across buyers in their preferences for different attributes as well as their price sensitivities (Tzeng and Wong 2016). The conclusion these authors make is that marketing mix and product attributes are key factors that strongly influence customers’ choices for a given Samsung model over the other. This is what Khan (2016) terms as ‘intrinsic mobile brand preference’ (p. 36). The figure below outlines Nikhashemi et al. (2017) approach in determining different factors towards mobile phone model preferences. Figure 1: Mobile Model Preference Source: Nikhashemi et al. (2017) Hence, product attributes that marketing mix accounts for the effects of brand preferences, customers’ estimated model parameters and marketing mix variables on their choices. Erdemir (2016) estimated that product attribute contribute to at least 25 percent of decision customers make while purchasing a given mobile phone model over the other. Overall, there understanding among these studies that model attribute and how producers position their products (and other marketing mix) are essential factors that relates to customer dynamics in the Samsung’s product line attractiveness. Assuming that there will be plausible profit margins, these studies have acknowledged that the effect of increasing the product attributes will in turn influence decision to buy the model over another. Age and Model Preference Erdemir (2016) conducted a study that was based on Parent-Teen Cell Phone usage Survey. The study evaluated models of phones and reasons why the teens preferred a given model over the other. Working with representative sample of 800 teens age 12-to-17 years-old the author found that the decision to work with a given phone model over another was informed by age, features of the phone and user friendliness. This view was supported by Khan (2016) who observed that if fronted with several models of phones from the same company, teens are unlikely to go for feature phones instead, they would opt for models that help them showcase their economic prowess or put them in a certain economic class even though they may not below there. In supporting this position, Shrestha (2016) found that Samsung mobile users of ages between 15-25 years use their phones mainly to send text messages, chat on different social media platforms but rarely use their phones for voice calls. For these reasons the age group will in most cases, choose Samsung model which will offer them the opportunity to access different social media platforms. 2.0. Research Data Collection 2.1. Population and Sample The population sample for this study was restricted to Samsung mobile users within institution and its closer environment. To gather data from the targeted sample population, the research adopted convenience sampling methodology. On the other hand, gathering primary data on factors affecting preference of Samsung model, the research developed questionnaire survey (as attached in appendix 1) which was considered on 30 respondents. 2.2. Sample Unit of the Research The research selected sample unit from different age groups basing on their experience with Samsung phones 2.3. Research Sampling Frame The research targeted Samsung mobile users within the institution and nearby location 2.4. Sample Determination The research worked with a population of 30 respondents which was divided into three groups in terms of model preference 2.5. Sampling Method The research adopted non-probability sampling approach as it sought to determine the population size of Samsung mobile users. This narrowed the research to convenience quota sampling. 2.6. Research Instrumentation The research adopted questionnaire as the data sampling tool. The questionnaire was designed to have different questions including demographic, model awareness, model preference and attribute questions on reasons behind a given Samsung model. 2.7. Process of Data Collection Both secondary and primary sources of data were used in the research. Beginning with secondary data, other parts of the research including introduction and literature review relied on reports, journals and other internet sources. On the other hand, primary data comprised of questionnaire distributed to 30 respondents. In order to conform to the research hypothesis and objectives, the ages 14-23 years, 24-30 years, 31-40 and 41 above. 2.8. Research Validity and Reliability To ensure that research was valid, the research questionnaire was reviewed using expert’s suggestions. The research referred to previous questionnaire on related topics. In addition, small pretesting was done to affirm that the questionnaire tested what it was meant to test. To ensure the research reliability, the researcher administered questionnaire individually to the targeted respondents so as to eliminate inconsistency in responses. The research findings and results were compared with similar researches to assess its conformity. If the degree of variance was excessively large, the research investigated its reliability. Besides, the research internal consistency reliability was tested using scale proposed by LIKERT. 3.0. Data Analysis In this section, the data collected from the questionnaire is analysed as shown below: 3.1. Distribution by gender 3.2. Distribution by income level 3.3. Descriptive Statistics of Model of Samsung Phone Preferred Model of Samsung Phone n Maximum Minimum Mean Standard Deviation Galaxy J3 Prime 30 1 4 2.4 1.22 Galaxy C9 Pro 30 1 4 2.6 1.27 Galaxy On Nxt 30 1 4 2.9 1.16 Galaxy C5 Pro 30 1 4 3.1 1.22 Galaxy A7 (2017) 30 1 4 3.2 1.16 The table above shows that Galaxy A7 (2017) is the most preferred by younger generation with a while Galaxy On Nxt is the least preferred by the same generation. Regarding the table, age and income has an impact on the type of Samsung phone model that is preferred. From the figure, the study rejects the null hypothesis. As a result, there is indeed significant relationship between age, income and sex when it comes to Samsung model one chooses. 3.4. Analysis between Gender and Duration of Samsung Model           t-test   Gender n Mean Std. Deviation t Sig. (2-tailed) Number of Years used Male 17 1.98 1.371 0.173 0.582   Female 13 1.84 1.232 The table above indicates the link between gender and duration of usage of a given model of Samsung phone. This approach provides an understanding on the likelihood of switching from one model to another. The table above is therefore interpreted in term of factors as tabulated below: 4.0. Research Discussion From the research analysis above, Samsung model attributes have an impact on the buying decisions of people across all gender and age. However, the study found that educational level play key role in the decision one has when it comes to the model they own. This finding echoes earlier findings from studies such as Khan and Rohi (2013) that noted that income and age affect the type of phone model one chooses. Additionally, the research found that age group (14-24) mostly prefers phones with different features including Wi-Fi and any other feature that helps in accessing social media. From this finding, the research has provided answers to the research objectives. Currently, Samsung boost of over one hundred different brands with models such as S series (S7, S8) being the most recent brands it is introducing in the market. Basing on the research’s area of study, there are different brands of Samsung’s mobile brands. So far, as modern contemporary brands of the company’s mobile brands are concerned, Samsung latest models are seen to dominate the market and in as much as these brands continue to be preferred, there are tendencies that other brands are still bought in the already competitive area of operations (Malviya et al. 2013). The concern is that while Samsung continue to advance its brands in terms of technologies and usability, it continues to produce other brands considered to be lower in terms of performance and features. With the strong presence of these brands, Samsung is still selling other low brands which exist in the same market. According to Khan and Rohi (2013) other brands that are not offering the same features and functionalities as S7 are having the same market shares; meaning that at least, there are other customers buying the other brands as others. As such, customers will still have a reason(s) to prefer one brand over the other. This research is therefore concerned with customers’ dynamics that vary from factors such as needs, taste, preference, usability, changes in technology and economic positions and whether these factors have reflections on customers’ preferences on a given brand. The research recognizes that Samsung continue to offer different models of phones that meet different needs and preferences. Again, there are high levels of competition among different models. However, as Khan and Rohi (2013) noted we found that young generation and people from higher economic class are likely to strive and acquire new model releases from the manufacturer. The trend is even common among middle age users especially with the brand that offer newer technologies and newer attributes or features regardless of their prices in the market. Reference List Chen, J., Teng, L., Yu, Y. and Yu, X., 2016. The effect of online information sources on purchase intentions between consumers with high and low susceptibility to informational influence. Journal of Business Research, 69(2), pp.467-475. Erdemir, A.S., 2016. Integrating Second Screen and Moments of Inspiration: Impact of Socialization and Patronage on Purchase Decision. Journal of Business and Behavior Sciences, 28(1), p.13. Jang, H., Olfman, L., Ko, I., Koh, J. and Kim, K., 2008. The influence of on-line brand community characteristics on community commitment and brand loyalty. International Journal of Electronic Commerce, 12(3), pp.57-80. Khan, M.M., 2016. Factors of Consumer Choice of SmartPhones–A Study on Brand Image and Brand Features. Market Forces, 11(2). Khan, S. and Rohi, S., 2013. Investigating The Factors Affecting Youth Brand Choice For Mobile Phones Purchase-A Study Of Private Universities Students Of Peshawar. Management & Marketing, 8(2), p.369. Kotler, P. and Armstrong, G., 2004. Marketing Management Analysis, Planning, and Control, 9th ed. Prentice Hall Inc., Englewood Cliffs, NJ. Kumar, S., Aminin, T.A., Vania, V. and Oktaviani, O., 2017. The Influence of Product Knowledge, Product Usability and Price toward Customer Preferences:(A Case of Samsung Smartphone Users in President University). Firm Journal of Management Studies, 1(2). Laforet, S. and Chen, J., 2012. Chinese and British consumers’ evaluation of Chinese and international brands and factors affecting their choice. Journal of World Business, 47(1), pp.54-63. Liaogang, H., Chongyan, G. and Zi'an, L., 2007. Customer-based brand equity and improvement strategy for mobile phone brands: Foreign versus local in the Chinese market. International Management Review, 3(3), p.76. Malviya, S., Saluja, D., Singh, M. and Singh Thakur, A., 2013. A Study on the Factors Influencing Consumer's Purchase Decision Towards Smartphones in Indore. Nikhashemi, S.R., Valaei, N. and Tarofder, A.K., 2017. Does Brand Personality and Perceived Product Quality Play a Major Role in Mobile Phone Consumers’ Switching Behaviour?. Global Business Review, p.0972150917693155. Park, J., Han, S.H., Kim, H.K., Cho, Y. and Park, W., 2013. Developing elements of user experience for mobile phones and services: survey, interview, and observation approaches. Human Factors and Ergonomics in Manufacturing & Service Industries, 23(4), pp.279-293. Rasheed, H.M.W. and Anser, M.K., 2017. Effect on Brand Loyalty in Mobile Phone Purchasing (A Case Study In Bahawalpur, Pakistan). Journal of Public Administration and Governance, 7(1). Shrestha, S., 2016. Influencing factors on consumer buying behaviour of smart phones: a research on the buying behaviour of young consumer in Kathmandu, Nepal. Solanki, D.J., 2016. A Study on Brand Preference Towards Cell Phones Among the Consumers in Bardoli City. Indian Journal of Applied Research, 5(5). Teimouri, H., Fanae, N., Jenab, K., Khoury, S. and Moslehpour, S., 2016. Studying the relationship between brand personality and customer loyalty: A case study of Samsung mobile phone. International Journal of Business and Management, 11(2), p.1. Tzeng, S.Y. and Wong, W.M., 2016. Retention or defection? Chinese consumers' decision-making styles for domestic and global brands. South African Journal of Business Management, 47(4), pp.83-92. Vyshnavi, P.S. and Rao, P.V., 2016. Factors Influencing Consumer Behaviour: Brand Preferences, Usage Patterns and Satisfaction Levels of using Mobile Phones: A Case Study of College Students in Kavali Town, Andhra Pradesh, India. International Journal of Innovative Research and Development|| ISSN 2278–0211, 5(9). Appendix 1: Research Questionnaire Research Questionnaire---Factors Affecting Brand Preference of Samsung Mobile Phones Questionnaire Number…… Please tick one þ for each criteria group given below 1. Your Gender 2. Your Age 3. Your Address 1. Female 2. Male 3. Others 17-25 26-30 31-40 1. Insert appropriately 2. Insert appropriately 4. Lvel of education 5. Your average montly income 1. Intermediate 2. University 3. Masters and Above 1. Less than $20,000 2. $20,000-60,000 3. More than $60,000 PART B: About Samsung Brand Q6. Which Samsung brand do you use? (Tick major one) 1. Galaxy J3 Prime 4. Galaxy C5 Pro 2. Galaxy C9 Pro 5. Galaxy A7 (2017) 3. Galaxy On Nxt 6. Others (Specify) .........   Q7. In what Price range does your mobile phone fall ($)? 1. Below $250 2. $800-1000 3. $500-750 4. Above $1500 Q8. Why the choice on the brand? (Please feel free to choose more than one Samsung brand) 1. Better features 2. Better outlook 3. Catchy advertisement 4. Reasonable price 5. Satisfied friends/peers with the brand 6. Please specify others... Q9. What Samsung did you previously own? (Please feel free to choose more than one Samsung brand) 1. Galaxy J3 Prime 4. Galaxy C5 Pro 2. Galaxy C9 Pro 5. Galaxy A7 (2017) 3. Galaxy On Nxt 6. Others (Specify)......... Q10. For what purpose do you use your mobile mostly? (Rank on the scale of 5, highest usage gets a score of 5) 1. Call 2. Camera 3. Internet 4. Memory 5. Songs and multimedia Q11. For Samsung mobile phone features please tick according to the following attributes: In your assessment, it Is Important To Have The Following Attributes: Strongly Disagree Disagree Neutral Agree Strongly agree Wi-Fi Head Set with Bluetooth FM/Radio Camera Availability of card (memory stick or card) Touch pad Q12. Which is your favourite Samsung mobile phone brand/model? (Please choose your 3 favourite Samsung mobile phone brand/model in order of preference from 1- Most favourite to 3-Least favourite) 1 2 3 1. Galaxy J3 Prime 2. Galaxy C9 Pro 3. Galaxy On Nxt 4. Blackberry 5. Galaxy C5 Pro 6. Galaxy A7 (2017) 6. Other............ (Specify) Q.13. How long have you been using the current Samsung brand/model...................? Duration Brief Comment on the reason for the duration 0-6 Months 7-12 Months Over 1 Year Over 2 Years Over 3 Years Any other please specify Q. 14. Please tick (✓) the relationship where appropriate (feel free to tick more than one statement) Factors Please tick (✓) here Is there a significant relationship between gender and Samsung mobile model choice? Is there a connection between family monthly income and Samsung mobile model choice? Do you find significant relationship between Monthly family income and Samsung mobile model choice? What is the relationship between mobile phone usage and Samsung mobile model choice? What is the relationship between brand attributes and Samsung mobile model choice? Do you find any significant link between price of phone and Samsung mobile model choice? What is the factor and relationship between age group and Samsung mobile model choice? Do you find any significant link between gender and Samsung mobile model choice? Do you find any significant link between educational level and Samsung mobile model choice? Do you find any significant link between monthly family income and Samsung mobile model choice? Do you find any significant link between age and current and Samsung mobile model choice/usage? Any other, please specify Q. 15. Please tick (✓) factors that are behind your choice of the model preference (feel free to tick more than one factor) Factors Please tick (✓) here Age Gender Education Level Income Features Price Usage Brand attributes Any other please specify Thank you so much for your participation Read More