Market Analysis and Buyer Behaviour of Apple Products - Research Paper Example

MARKET ANALYSIS AND BUYER BEHAVIOUR OF APPLE PRODUCTS By Name Course Instructor Institution City/State Date Table of Contents MARKET ANALYSIS AND BUYER BEHAVIOUR OF APPLE PRODUCTS 1 Table of Contents 2 1.0 Introduction 3 1.1 Research background 4 1.2 Problem Statement 5 1.3 Significance of the Study 6 1.4 Objectives 6 1.5 Research Questions 7 2.0.0 Literature Review 7 2.1.0 Market Analysis 7 2.1.1 Apple’s Marketing Strategies 9 2.2.0 Buying Behaviour 11 2.2.1 Factors Influencing Buyer Behaviour 11 2.3.0 Theoretical Framework 13 3.0 Research Design and Methodology 16 3.1 Hypotheses 16 3.2.0 Research Data 17 3.2.1 Primary and Secondary Data Collection 18 3.3 Sampling Design and Size 18 Sampling Technique can be divided into non-probability and probability sampling techniques. In probability sampling, every person can be selected, and the entire population is accurately reflected by the results. For probability sampling, the researcher must have a complete sampling frame; therefore, he/she must be able to contact the entire population being targeted. More importantly, the researcher can randomly select the sample from the target population given that every person has equal chance to participate in the survey. Probability sampling allows for results generalisation but it is time-consuming and more expensive. For this reason, the study will focus on non-probability sampling since it can be utilised to get feedback and generate ideas and does not allow for results generalisation. Besides that, non-probability is less costly and more convenient. There are different types of non-probability sampling, but the study will focus on purposive sampling. Subjects in purposive sampling are selected to become part of the sample with a purpose or reason in mind. Purposive sampling would be important because the study focuses on specific characteristic (buyer behaviour). Therefore, the researcher will only sample the people using Apple products. This would ensure that the research gets the needed information and reduce time wastage. The study will target approximately 250 Apple products’ customers and the questionnaires will be distributed online in the local university. Prior to the formal survey, an adequate pilot test will be carried out as the reliability test in order to determine the accuracy and validity of the questionnaire. The target population would involve Apple products’ users irrespective of their ages. 18 3.4 Data Analysis 19 3.5 Validity and Reliability 20 3.6 Discussion of Ethical Considerations 20 4.0 Plan of Work 21 5.0 References 22 Market Analysis and Buyer Behaviour of Apple Products 1.0 Introduction Apple Inc. was founded by the late Steve Jobs together with Steve Wozniak in 1976, and it focuses on designing and producing different consumer products, mainly software and the electronics. The American-based company has scores of profitable and popular product lines, which includes electronics such as the iPhone Smartphone, iPod music player, the Apple Watch Smartwatch, and Mac personal computer (PC) as well as software products such as OSX and iOS operating systems, Apple Pay, Apple Music, iTune, and others. Apple is considered as one of the world’s successful company, and this is attributed mainly to the consumer market by means of predominantly marketing its premium products, normally with substantial and novel first-to-market innovations. As it will be evidenced in this study, Apple’s deep brand appeal and fast-paced innovation has enabled the company to become the world’s most valuable brand in terms of market capitalization. The number of employees and retail stores at Apple as of 2016 was 115,000 and 450, respectively. 1.1 Research background In the contemporary society, people increasingly depend on technology particularly to communicate with one another. Some of Apple products such as iPhone have become highly advanced communication device which enables the users to interact amongst themselves and also to transfer information across the globe. Apple products play a major role in the society; for instance, it enables the users to promptly communicate and chat, help business people to schedule their meetings and to work, enable people to use navigation systems, access social media sites, and also to store data. Scores of Apple’s competitors such as HTC, Sony, Samsung, LG, Nokia, and Huawei have penetrated the Smartphone and PC market; thus, providing increased market competition. Still, Apple together with Samsung has retained the highest market share. The study will conduct a market analysis on Apple products and would also determine the buyer behaviour towards these products. By and large, consumers take into account some set of alternatives prior to making their purchase decisions. Furthermore, some factors as it will be evidenced in this study influence the buyers purchase behaviour and intention. The study will provide a precise and clear understanding of the buyer behaviour; thus, offering marketers at Apple an effective way of marketing their products. As mentioned by Kotler (2004), marketing is an important factor of business venture that largely decides its accomplishment within the consumer realm. Marketing can be defined as a set of human activities intended for consummating as well as facilitating exchanges. Given that the marketing purpose is generating product/service awareness, Apple’s marketing strategy as it will be evidenced in the study is effective because it emphasises on generating a need of its products and thereon broadening its horizon. As high-tech product innovators, Apple markets its products with the objective of penetrating deeper into the mobile and computer industry. This study would involve a comprehensive analysis of Apple’s marketing strategies and the company’s approach towards the marketing mix. 1.2 Problem Statement Smartphone and other technologies espoused by Apple have transformed the behaviours of the users, particularly the young people. Still, the existing surveys provide insufficient information regarding the buyer behaviour towards Apple products. There is a gap in knowledge regarding the consumers’ behaviour and preferences towards the usage of Apple products. Most of the existing information focuses on general adoption and usage of Smartphones, especially amongst the young people. Furthermore, there has been tremendous and drastic development or changes in the mobile and computers market. New Smartphone models, software, and computers have been introduced to the market by different companies with the sole objective of gaining the competitive advantage. The market evolution as mentioned by Rahim et al. (2016) has influenced the users, particularity the young people in term of choice and motives that underline the process of making purchase decisions. Thanks to technology the Smartphone industry where Apple is a major player has boomed. Because of the increased penetration into the industry, it is challenging to examine, analyse, and interpret the consumer's purchase behaviour. The study will mainly focus on consumers’ purchase behaviour towards Apple’s product. Even though some studies have been performed on the purchase behaviour of the customers, this study would improve the existing knowledge by focusing on one brand, Apple. The study would examine the factors that influence the purchase behaviour towards Apple products and would serve as a link that connects two key variables, purchase intention and purchase behaviour towards Apple brand. 1.3 Significance of the Study The study would offer a concept for Apple to understand the factors influencing the customers' buying behaviour effectively. The attention, as well as importance offered to Smartphone industry, is increasing rapidly day after day. Furthermore, the sophistication and the complexity associated with highly advanced Apple products have intensified the process of making purchase decisions. These days, both men and women contribute enormously to the increased purchase of Apple products. There is a change in their purchasing behaviour leading to enormous effect in the mobile and computer market. This study would act as a reference for consumers at the time of their purchase process of Apple products. Furthermore, the research would enable the consumers to have an understanding regarding Apple’s emerging trend and also offers an insight to both marketers and researchers on the buyer behaviour analysis towards Apple products. The study would try to demonstrate how social influence, culture, pricing, product feature as well as brand image influence the buyer behaviour. The study would be crucial to the marketers since it would enable them to tailor as well as reconstruct their marketing message towards the consumers’ needs. In short, the study would enable Apple to capture the needs of all the customers. Apple would likely benefit when it successfully caters all its customers’ needs; thus, inducing higher sales. 1.4 Objectives 1. To establish the significant influence of social influence, brand name, and product features on the demand for Apple products 2. To understand the influence level of price towards the customer’s decision to purchase Apple’s product 3. To determine the impact of corporate strategy on realising the company’s marketing goals 4. To understand the approach used by Apple towards the marketing mix 5. To examine the strategies utilised by the company regarding product segmentation, market segmentation, promotion and pricing 6. To determine whether social media have an influence on customer’s purchase behaviour towards Apple products 1.5 Research Questions 1. Is the influence of social influence, brand name, and product features on the customers’ intention to purchase Apple products significant? 2. What are crucial factors that motivate many customers to purchase Apple products? 3. Do social media influence customer’s purchase behaviour towards Apple Products? 4. What strategies are utilised by the company with regard to product segmentation, market segmentation, promotion and pricing? 2.0.0 Literature Review 2.1.0 Market Analysis Jinjin (2013) carried out a general environment analysis on Apple products, where they established that there was little evidence exhibiting that political as well as legal elements strongly influence Apple’s opportunities and threats. The computer systems in the Digital era have become more important to organisations, particularly the academic as well as governmental communities. The demand for computing products as observed by Jinjin (2013) has been increasing, but Apple’s has lost some dominance in the education market to other companies such as Dell. With the view to industry environment, Jinjin (2013) posit that new entrants’ threat is medium mainly because of fierce competition in the computer market. Furthermore, the capital requirement in this industry is very high. Given that the current competitors in market control the distribution and supply channels it becomes hard for the newcomers to gain access to such channels. The suppliers’ bargaining power is low since scores of satisfactory substitute firms have cropped up making it easy for Apple and the competitors to select their customers. The cost of switching suppliers is also very low. Given that the main target consumers are academic institutions and young people, the buyer’s bargaining power is high. Apple must convince its customers to accept its products easily; therefore, the company has devoted itself to creating a close relationship with its customers. In their study, Vikram and Ramanathan (2015) established that the domination of Smartphone in the mobile phone had increased tremendously. The mobile phones have been changed from call devices to multimedia systems that are highly interactive, offering internet connection/access. Some of Apple’s products such as iPhone are designed purposely to satisfy the needs of the users through different sophisticated technological functionalities and characteristics. Most of Apple’s products present unique characteristics to the customers; for instance, iPhone design and size make a positive contribution to the customer satisfaction. As mentioned by Vikram and Ramanathan (2015), Smartphones have additional embedded features, like extra available memory, advanced operating systems and power-efficient microprocessors which increase the product’s capabilities and improves their reputation. The diversity characteristics/functionalities attributed to Smartphone technology have positively influenced users’ satisfaction and have improved efficiency, usability, convenience, as well as security. Thanks to Smartphone technology users can remotely control their day to day things, independence of place and time and can also communicate faster. Given that the modern computing devices are costly than conventional ones, the potential buyers should have been forced to balance the cost of the computing devices with the offered level of functionalities and characteristics. For this reason, companies have decided to provide proper pricing plan which is reasonable, based on the offered services and functionality. With the view to Apple iPhone, Singh et al. (2016) posit that the market structure of the Smartphone industry is an oligopoly. Therefore, the functionality and features of the computing devices are the main drivers of the buyers’ purchase decisions. In Aviram (2010) it was observed that 58% of the consumers planning to purchase a computing device such as Smartphone are influenced by the embedded features like Camera quality, the size of the phone, design and brand. He observed that applications have less influence on customer’s purchase behaviour. The author further observed that price has an enormous effect on customer’s purchase decisions. The customers also consider the operating system (OS) of the computing device before purchasing it; for instance, many Smartphone customers are interested more in Android than iOS (Aviram, 2010). 2.1.1 Apple’s Marketing Strategies As highlighted in Khan et al. (2015) study, Apple follows some strategies such as like product segregated strategy, premium pricing, universal cheaper marketing, and others to gain a competitive advantage over its competitors. Still, Apple has widely criticised strategy as always because of its premium pricing strategy, which makes Apple product market segment suitable for upper and medium class individuals and unaffordable to the average people. Rather than relying on inventory, Apple focuses on being a trend setter and utilise differentiation strategy to produce innovative products that allow the company to retain its market share. The company also utilises cheapest marketing strategy through patents wars (Khan et al., 2015). Yeung (2016) examined the Apple’s strategic commitment, arguing that the industry’s competitive nature has forced the company to consider the strategic commitments implications watchfully. The author defines strategic commitment as actions that are visible, irreversible, credible, and understandable that a company takes to change their rivals’ strategic decisions. As observed by the author, numerous factors could bring forth strategic and competitive responses from rivals of Apple, which includes: changing the product strategy; quality; production capacity; pricing; or introducing new features specification, or product lines. For this reason, Apple’s should make strong strategic commitments that would make the response elicited from other players in the market beneficial to the company’s strategic outlook. Observably, Apple is widely known for its innovative ideas, and through its marketing strategy, it continues to make strong sales. Yeung (2016) observed that Apple applies a proactive as well as a retroactive approach as an element of its product strategy. Fundamentally, the company’s products are developed according to their rivals’ products, but they are improved further by integrating differentiating features and removing undesirable qualities. For this reason, nearly all Apple end products look innovative and new and also recognisable. Given that Apple products complement each other, they generate a halo effect since the end-users would prefer sticking with the Apple brand instead of purchasing different products from other producers. Apple’s unique advertising and marketing situation of its products, especially iPhone exhibits the company’s overall marketing strategy effectiveness that focuses on pricing and product strategies. The majority of Apple’s products are extremely valuable due to their popularity. Still, Solomon (2016) argues that Apple should keep leveraging with its digital asset management, premium brand appeal, as well as a robust retail strategy so as to remain relevant in the market which is becoming more competitive and saturated. Technology, as mentioned by Song (2010), is crucial for the innovative change in Smartphone industry. Apple has continually utilised technology to differentiate itself from the competitors through technology and innovation. Apple products are facing some threats such as viruses, Research in Motion, and competitors (Mickalowski et al., 2008). 2.2.0 Buying Behaviour In her study, Sainy (2014) observed that the customers’ purchase intention relies heavily on the level to which they expect satisfaction from the product consumption. When making a purchase decision, most consumers go through the process of recognising, searching of information, assessment, purchase, and feedback. For that reason, the consumer is likely to select a brand or product to consume from different varieties in the market. Sainy (2014) demonstrates the different lifestyle, needs, tastes, and motivation that most consumers have when making a decision to purchase a product; for instance, the majority of them prefer cheap products while others are ready to pay any price for a high-quality product. With the view to Smartphones, most of the users focus on camera features and the operating system. Some customers as observed by Sainy (2014) choose products in terms of their attributes that generate certain benefits which bring about particular outcomes that support their individual values. Most customers as observed by Rahim et al. (2016) prefer purchasing computing devices based on the community trend. For instance, the majority of young people purchase decisions are influenced by their peers. Rahim et al. (2016) further observed that the majority of customers get opinions as well as advice from their families and friends based on computing devices’ features and would buy the same product their families and friends use. 2.2.1 Factors Influencing Buyer Behaviour As observed in numerous studies, there are numerous factors that influence the customers’ buying behaviour towards computing devices. One of the factors, as cited by Rahim et al. (2016), is a brand, which is a symbol of trust to the customers. Brand plays a crucial role in the process of making purchase decisions. Mist customers often look for information regarding the brand before making a purchase decision. In the Smartphone industry, the brand name plays a crucial role since the consumer confidence to purchase a product depends on the reputation of that brand (Rani, 2014). Another factor is product features, which according to Tanzila et al. (2015) is mainly attributed to stylish looks and good features. There is an increase in demand for computing devices with advanced applications and features because of new services offered by providers like entertainment, media, and the Internet. Recently, the customer's Smartphone purchase decisions were mainly influenced by their functional abilities. As mentioned by Tanzila et al. (2015), functionality is based on the phone ability to have a wireless connection, manage files, install application programs, present multi-media programs, and so forth. Price is another factor that influences customer’s purchase behaviour. Tanzila et al. (2015) and Rahim et al. (2016) concur that price is crucial for both the seller and the buyer. High-quality products often attract higher prices and are likely to lead to higher satisfaction amongst the users. The authors observed that customer normally purchase products with the objective of satisfying their desires. The customers’ priorities as mentioned by Tanzila et al. (2015) are normally different, and they are influenced by diverse factors and different situation. Lifestyle, motivation, tastes, status, and needs vary from one person to another. Therefore, this concept is utilised while buying the product. Some customers pay a high price to get high-quality products that would meet their expectations while others are unwilling to buy products at a higher price. Research, as cited by Tanzila et al. (2015), has demonstrated that there is a strong relationship between consumer behaviour and consumer characteristics towards buying a product. The third factor that influences customer behaviour is social influences, which often lead to human learning as well as behaviour. According to the social learning theory, people repeatedly learn from each other with a concept, modelling, observational learning, as well as stimulation. As observed by Tanzila et al. (2015), a number of societal influences such as word of mouth can make many people buy a particular product. Most people buy products because of their friends’ influence. When a consumer is extensively exposed to cultural and social influence, his/her purchasing decision is influenced. According to Khaniwale (2015), culture has an enormous effect on the customer’s buying behaviour; therefore, market segmentation should be based on the customers’ cultural wants and needs. Culture, as mentioned by Khaniwale (2015), is a symbol of moral values, norms believe, habits and attitudes created in the fullness of time by mankind. Therefore, a culture largely determines the behaviour of the society members, including the buying behaviour. Therefore, culture can be utilised to differentiate subcultures representing large market opportunities and segments. Consumers have been described by Kotler (2004) as households and individuals buying the firm's product for consumption purposes. Therefore, consumer behaviour includes examining how, when, and why individuals buy certain products. Blackwell et al. (2006) argue that when making a purchase decision, consumers normally go through numerous processes such as information searching and evaluation before choosing a suitable brand or product to consume. The factors that affect the consumers’ buying behaviour vary because of different individual and environmental determinants. In this case, individual factors that affect buyer behaviour as cited by Sata (2013) include lifestyles, consumer understanding, demographics, learning, perception, personality, motivation, attitudes and convictions. On the other hand, environmental factors are those items beyond the consumer’s ability such as social class, culture, household, and the reference group. 2.3.0 Theoretical Framework As mentioned by Solomon et al. (2016), the digital era has forced companies to produce products that target consumers as well as their satisfaction. A number of studies as cited by Shrestha (2016) have espoused systematic and structured theories with the objective of interpreting how customers choose among different available alternatives. Solomon et al. (2016) theoretically describe customer purchase behaviour is a human-related behaviour that is related to the person’s feelings while addressing his/her needs. Therefore, consumer behaviour is the process of studying value-seeking activities for the available resources like; consumers’ money, effort, as well as time that is stirred by handling the real needs. The theory of consumer behaviour emphasises on the conduct of regularly altering human wants as well as needs paraded by a person while searching for products and services which they believe would fulfil their desires as well as wants. In the modern-day business world, Kotler and Armstrong (2012) posit that companies are investing a bigger fortune in studying the buying behaviour of their customers with the objective of getting comprehensive information on how, what, where, when, and why consumers purchase. As mentioned by Sharma (2014), marketers in the dynamic business environment have tried retaining the existing and getting new customer base by offering value and meeting the exchange expectations of the customers. Customer retention is greatly related to customer satisfaction. Therefore, when a company satisfies its customers its productivity, revenue, stock price and earnings per share would be influenced positively. With the view to the Black Box Theory, Kotler and Armstrong (2012) posit that companies are utilising different marketing efforts to influence the consumers’ decision. However, determining the exact way the consumers respond to them is very challenging. The majority of computing companies utilise the marketing stimuli (product, price, promotion, and place) to persuade consumers to purchase the new products. The consumers’ Black Box includes the decision process and buyer’s personal characteristics. As mentioned by Sandhusen (2000), the black box model demonstrates the stimuli, decision processes, consumer characteristics, as well as consumer responses interact. In this case, the stimuli could be differentiated between intrapersonal stimuli and interpersonal stimuli. The companies plan and generate the marketing stimuli while social factors are used to generate the environmental stimuli, anchored in the society’s political, cultural, as well as economic circumstances. According to Furaiji et al. (2012), the buyer’s black box comprises of the customer’s characteristics as well as the decision process that determines the response of the buyer. In this model, other stimuli such as marketing go into the buyer’s black box and generate particular responses. Marketing management objective as cited by Furaiji et al. (2012) is to determine what the customer is thinking, the black box. Furthermore, the characteristics of the buyers influence how the stimuli are perceived; the process of making decisions with regard to the buying behaviour that should be embarked on. To understand the buyer behaviour, the first step involves concentrating on factors that establish the characteristics of the buyer in the black box model. Furaiji et al. (2012) assert that scores of factors affect the buyer’s buying behaviour as well as purchasing decisions. These factors have been grouped into five categories: the marketing mix, personal factors, social factors, cultural factors, as well as physical factors. Such factors according to Furaiji et al. (2012) could be utilised in segmenting the market and allows the marketers to target a specific group of consumers. With the view to marketing stimuli, the change in technology in Smartphone and mobile industry has forced marketers to replace the Smartphone with value-adding features. Still, the price is a major element which distinguishes brands and products. In Karjaluoto et al. (2005) study, they established that price, properties, interface and brand were the most influential factors that influenced the purchase of new brands. Competition conditions are rapidly changing, and firms strategising and responding to such changes quickly and promptly have become more successful. Because of technological developments, Brosekhan and Velayutham (2008) maintain that products’ physical differences have lessened. Therefore, differentiation should be based on the products’ meanings rather than their physical features. It is possible to develop a brand differentiation through personality successfully. Because of brand personality, the end users view the brand as friend given that it offers them emotional benefits. For marketers, consumer behaviour’s dynamic nature creates the need for changing communications, developing products rapidly, as well as formulating distribution strategies. As mentioned by Rasheed and Altiman (2011), consumer behavioural outcomes and decision-making processes are studied with the objective of inducing prediction as well as change. 3.0 Research Design and Methodology 3.1 Hypotheses Based on the literature review, four variables have been derived with the objective of establishing the relationship between independent variables (social influences, price, product features, and brand) towards the dependent variables (buyer behaviour) towards Apple products. The study will test the following hypotheses: H1: Social influences, price, product features, and brand directly influence the consumers’ purchase behaviour of Apple products H2: The price has direct influence towards the customer’s decision to purchase Apple’s product H3: Corporate strategy positively influence the Apple’s marketing goals H4: Social media directly influence customer’s purchase behaviour towards Apple products 3.2.0 Research Data With the view to research questions, the study will use a combination of quantitative and qualitative research approach, which is commonly referred as a mixed research method. Quantitative data can be described as the raw date that has to be processed as well as interpreted to be converted into information. This technique normally involves systematically gathering numerical data from the selected sample. In this technique, data is normally analysed through statistics and diagrams. On the other hand, the objective of quantitative research technique is to provide results that can be generalised by focusing on the research questions. Qualitative data as it will be evidenced in this study offers non-standardized data that needs classification, and the analysis of the data is achieved through conceptualization. Therefore, the researcher would have to analyse information from different groups and individuals, categorise as well as summarise it. The mixed methodology approach as mentioned above is a combination of quantitative as well as qualitative methodologies that is sufficiently multilayered, accessible and flexible to interpret the gathered data into real meaning. The online survey would be created as a quantitative technique for the purpose of this study. As mentioned by Ghauri and Gronhaug (2010), standardised surveys are a suitable tool for gathering different types of data such as respondents’ behaviours, opinions, attitudes, values and believe. In order to examine the buyer behaviour of Apple products, interviews will be conducted face to face and through online video calls such as Skype, IMO, and Facebook. The qualitative method will be used to gain insight to determine how independent variables such as social influences, price, product features, and brand influence the buyer behaviour towards Apple products. Additionally, the mixed method will be used to improve the data accuracy by collaborating in addition to combining data from different sources. 3.2.1 Primary and Secondary Data Collection In this study, questionnaire survey technique will be used gather primary data. Approximately 250 copies of questionnaire will be distributed randomly both online and physically to the selected sample. Basically, questionnaire survey will help improve the data coding, analysis as well as interpretation by ensuring the data collection process is simple. The questionnaire qualitative method would be used because it is reliable, simple, and reduce results uncertainty. Besides that secondary data would be gathered through online sources like online articles and journals. Google scholar will be used because of its reliability and accessibility features. Still other online databases such as Wiley, Science Direct, and EBSCOhost will be used as secondary data source. The online journals and articles will be used to strengthen the study results. 3.3 Sampling Design and Size Sampling Technique can be divided into non-probability and probability sampling techniques. In probability sampling, every person can be selected, and the entire population is accurately reflected by the results. For probability sampling, the researcher must have a complete sampling frame; therefore, he/she must be able to contact the entire population being targeted. More importantly, the researcher can randomly select the sample from the target population given that every person has equal chance to participate in the survey. Probability sampling allows for results generalisation but it is time-consuming and more expensive. For this reason, the study will focus on non-probability sampling since it can be utilised to get feedback and generate ideas and does not allow for results generalisation. Besides that, non-probability is less costly and more convenient. There are different types of non-probability sampling, but the study will focus on purposive sampling. Subjects in purposive sampling are selected to become part of the sample with a purpose or reason in mind. Purposive sampling would be important because the study focuses on specific characteristic (buyer behaviour). Therefore, the researcher will only sample the people using Apple products. This would ensure that the research gets the needed information and reduce time wastage. The study will target approximately 250 Apple products’ customers and the questionnaires will be distributed online in the local university. Prior to the formal survey, an adequate pilot test will be carried out as the reliability test in order to determine the accuracy and validity of the questionnaire. The target population would involve Apple products’ users irrespective of their ages. 3.4 Data Analysis The study will use Structural Equation Modelling (SEM) as the main statistical approach to analyse the collected data. SEM can be described as technique of estimating, representing, as well as testing hypothesised patterns of non-directional and directional relationships amongst a set of variables. More important, SEM offers the opportunity of testing the hypothesised paradigm by simultaneously analysing the variables with the objective of supporting the hypotheses with theories. SEM will explicitly offer error variances estimates and facilitate their modification. As mentioned by Kline (1998), SEM objective is to understand the covariance as well as correlation amongst the set of variables and to clarify the covariation and variation of the specified model. SEM incorporates two methods; path analysis and factor analysis and simultaneously tests the relations between error, measured and latent variables. This analysis technique will be used to indicate the total, indirect or direct effect of independent variables on the dependent variables. The reason for applying SEM rather than other multivariate techniques is attributed to the fact that there are theoretical as well as abstract constructs concluded from the interview and theoretical literature which are not observed. Furthermore, SEM offers visual diagrams which evidently give a picture of the complex relationships between the independent and dependent variables (Chen, 2014). 3.5 Validity and Reliability Validity and reliability will be ensured by pre-testing the questionnaire with 10 individuals. Basically, this would facilitate the refining of the questionnaire, which could otherwise be underestimated leading to unfounded findings as well as conclusion. The questionnaires will be refined before sending them to public to the respondents in order to ensure quality data and to verify that the findings of the research meet the research objectives. Result objectiveness will be ensured by sampling a large number of people (250) so as to increase the research reliability and validity. 3.6 Discussion of Ethical Considerations Given that the ethical considerations in research are very important, the study will observe the set ethical standards to ensure acceptable and unacceptable behaviours are differentiated.  The ethical standards will prevent against the data falsifying or fabrication; thus, facilitating the pursuit of truth as well as knowledge which will be the main objective of the research. Furthermore, ethical behaviour would allow for collaborative work given that it promotes an environment of mutual respect, responsibility, and trust amongst the researchers.  The study will abide by ethical standards so as to gain the public support.  The study will adopt the policies and codes that guide researchers and outline ethical behaviour. Such codes as mentioned by Resnik (2015), would address issues like objectivity, honesty, confidentiality, and others 4.0 Plan of Work Task Person(s) Liable February – March April -June July –September October – December Selection of the Topic Review of the Literature Preliminary research in addition to field work Developing hypotheses and research questions Carrying out the research Completion of the proposal Data Collection and Research methods Analysis of collected data Thesis writing and Publication Thesis submission 5.0 References Aviram, A., 2010. Smartphones in the U.S.: Market Analysis. California : Scott Cromar. Blackwell, R.D., Miniard, P.W. & Engel, J.F., 2006. Consumer behavior. 10th ed. Boston: Thomson South-Western. Brosekhan, A.A. & Velayutham, M., 2008. Consumer Buying Behaviour – A Literature Review. IOSR Journal of Business and Management, pp.8-16. Chen, L., 2014. The influence of social media on consumer behavior. Bachelor Thesis. Aarhus C, Denmark: Aarhus University. Furaiji, F., Łatuszyńska, M. & Wawrzyniak, A., 2012. An Empirical Study of the Factors influencing Consumer Behaviour in the Electric Appliances Market. Contemporary Economics, vol. 6, no. 3, pp.76-86. Ghauri, P. & Gronhaug, K., 2010. Research Methods in Business Studies. 4th ed. Harlow: Pearson Education Limited. Hitt, M.A., Ireland, ‎.D. & Hoskisson, ‎.E., 2012. Strategic management: competitiveness and globalization (concepts and cases). New York: Cengage Learning. Jinjin, T., 2013. A Strategic Analysis of Apple Computer Inc. & Recommendations for the Future Direction. Management Science and Engineering, vol. 7, no. 2, pp.94-103. Karjaluoto, H. et al., 2005. Factors Affecting Consumer Choice of Mobile Phones: Two Studies from Finland. Journal of Euromarketing, vol. 14, no. 3, pp.59-82. Khan, U.A., Alam, M.N. & Alam, S., 2015. A critical analysis of internal and external environment of apple in. International Journal of Economics, Commerce and Management, vol. 3, no. 6, pp.955-67. Khaniwale, M., 2015. Consumer Buying Behavior. International Journal of Innovation and Scientific Research, vol. 14, no. 2, pp.278-86. Kline, R., 1998. Principles and Practice of Structural Equation Modelling. New York: Guilford Pres. Kotler, P., 2004. Ten Deadly Marketing Sins: Signs and Solutions. London: Wiley. Kotler, P. & Armstrong, G., 2012. Principles of marketing. New Je: Pearson Prentice Hall. Mickalowski, K., Mickelson, M. & Keltgen, J., 2008. Apple's iPhone Launch: A Case Study in Effective Marketing. Research Paper. Rock Island, IL: Augustana College. Rahim, A. et al., 2016. Factors Influencing Purchasing Intention of Smartphone among University Students. Procedia Economics and Finance, vol. 37, pp.245 – 253. Rani, P., 2014. Factors influencing consumer beha. International Journal of Current Research and Academic Review, 2(9), pp.52-61. Rasheed, F.A. & Altiman, A.A., 2011. Purchasing Behavior in Multi-Ethnic Society, Computer Brand Preferences. The International Journal of Business and Management Research, 4(1), pp.1-16. Resnik, D.B., 2015. What is Ethics in Research & Why is it Important? [Online] Available at: https://www.niehs.nih.gov/research/resources/bioethics/whatis/ [Accessed 27 February 2017]. Sainy, M., 2014. BUYING BEHAVIOR OF SMARTPHONE AMONG B SCHOOL STUDENTS. BAUDDHIK, vol. 5, no. 1, pp.24-35. Sandhusen, R.L., 2000. Marketing. 3rd ed. New York, NY: Barron’s Business Review Books. Sata, M., 2013. Factors Affecting Consumer Buying Behavior of Mobile Phone Devices. Mediterranean Journal of Social Sciences, vol. 4, no. 12, pp.103-12. Sharma, M.K., 2014. The Impact on Consumer Buying Behaviour: Cognitive Dissonance. Global Journal of Finance and Management, vol. 6, no. 9, pp.833-40. Shrestha, S., 2016. Influencing factors on consumer buying behaviour of smart phones : a research on the buying behaviour of young consumer in Kathmandu, Nepal. Bachelor's Thesis. Turku, Salo, Finland: Turku University of Applied Sciences. Singh, R.K., Mittal, A. & Pandey, A., 2016. Understanding The Marketing Mix Of Smartphone Market From The Consumer Point Of View. International Journal of Scientific & Technology Research, vol. 5, no. 8, pp.132-36. Solomon, D., 2016. Analysis of Apple’s Strategic Position in The Smartphone Market. [Online] Available at: http://devsolomon.com/competitive-forces-of-apple-inc/ [Accessed 27 February 2017]. Solomon, M.R., Bamossy, G., Askegaard, S. & Hogg, M.K., 2016. Consumer Behaviour A European Perspective. Harlow: Pearson Education Limited. Song, H.-C., 2010. Analysis of the global smartphone market and the strategies of its major players. Thesis. Dalla: University of Texas. Tanzila, Sohail, A.A. & Tanveer, N., 2015. Buying Behavior of Smartphone among University Students in Pakistan. The International Journal Of Business & Management, vol. 3, no. 1, pp.34-40. Vikram, K. & Ramanathan, K.V., 2015. A STUDY ON SMARTPHONE INDUSTRY AND THEIR EFFECTS ON INDIAN MARKET AN OVER VIEW. Asia Pacific Journal of Research, vol. 1, no. 25, pp.163-66. Yeung, N., 2016. The marketing strategy of Apple: A concise analysis. [Online] Available at: http://www.versiondaily.com/the-marketing-strategy-of-apple-a-concise-analysis/ [Accessed 27 February 2017]. Read More