ISSN: 2249-7196 IJMRR/March 2015/ Volume 5/Issue 3/Article No-7/193-200 Deepa Guleria / International Journal of Management Research & Review A STUDY OF CONSUMER PREFERENCE FOR SMARTPHONE: A CASE OF SOLAN TOWN OF HIMACHAL PRADESH Deepa Guleria* 1 1 Research Scholar, Dept. of Business Management, College of Horticulture, Dr. Yashwant Singh Parmar University of Horticulture and Forestry, Nauni, Solan (HP), India. ABSTRACT Consumer preferences are defined as the subjective or individual tastes, as measured by utility. The related study is conducted in Solan town of Himachal Pradesh with a sample size of 80 Smartphone users to highlight the change in the usage and applicability of the technology from the traditional handsets to the new emerging smart phones across multiple brands, applications and prices. The study will help to realize the key elements that generate preference in the consumers to opt for a particular product and generate comparison based on numerous features and applicability.the study identifies factors which are responsible for building consumer preference for Smartphone and various usability features. Moreover, study will indicate suggestive inferences to help the companies during STP (selecting, targeting and positioning) process of marketing their Smartphone. Key words: Consumer Preference, Smartphone, Influential factors, Usability features. 1. INTRODUCTION Nowadays, mobile handsets have become an integral part of human daily life and personal communication across the globe. In the current highly competitive mobile phone market, manufacturers constantly fight to find additional competitive edge and differentiating elements to persuade consumers to select their brand instead of a competitor s. There are various studies conducted to identify factors that make companies better than their competitors in influencing the customers purchase decision. Consumers of mobile phone found throughout the world greatly influenced by those different factors affecting mobile phones purchase decision. These factors may be related to the characteristics of the consumer and the features associated with the mobile phones. This leads mobile phone companies to come up with a variety of mobiles with different brands and features. There is various research studies conducted to identify factors affecting consumers choice of mobile phones. These studies indicated a range of items as a determinant factor influencing purchase decision. These factors include price, features, quality, brand name, durability, social factors and so on (Ilyas and Ahson, 2006). 1.1. Meaning of Consumer Preference Consumer preferences are defined as the subjective (individual) tastes, as measured by utility, of various bundles of goods. They permit the consumer to rank these bundles of goods *Corresponding Author www.ijmrr.com 193
according to the levels of utility they give the consumer. Note that preferences are independent of income and prices. Ability to purchase goods does not determine a consumer s likes or dislikes. A consumer preference explains how a consumer ranks a collection of goods or services or prefers one collection over another. This definition assumes that consumers rank goods or services by the amount of satisfaction, or utility, afforded. Consumer preference theory does not take the consumer's income, good or service's price, or the consumer's ability to purchase the product or service (www.ehow.com/definitionconsumer-preference.html). 1.2. Meaning of Smartphone A Smartphone, or smart phone, is a mobile phone built on a mobile operating system; with more advanced computing capability and connectivity than a feature phone. The first smart phones combined the functions of a personal digital assistant (PDA) with a mobile phone. Later models added the functionality of portable media players, low-end compact digital cameras, pocket video cameras, and GPS navigation units to form one multi-use device. Many modern smart phones also include high-resolution touch screens and web browsers that display standard web pages as well as mobile-optimized sites. High-speed data access is provided by Wi-Fi and mobile broadband. In recent years, the rapid developments of mobile app markets and of mobile commerce have been drivers of smart phoneadoption (Ilyas and Ahson, 2006). 2. RESEARCH METHODOLOGY This study has been carried out using pre-structured close ended questionnaire for collecting data. Data was collected from various Smartphone users. 80 respondents were selected for the study on the basisof convenience sampling from Solan town of Himachal Pradesh. Simple mathematical and statistical tools were used that were percentage method, total weightage method and also Chi-square test and F test for analysing the relationship between preferred usability features and demographic variables. Research Objectives: The research s objectives have taken an overall overview and attempt to indicate the comprehensive notion pertain to consumer preference for Smartphone. Largely study has focussed with the objectives of: To identify the factors affecting consumer preference for Smartphone. To study the relationship of consumer preference with demographic variables in regard to usability of Smartphone. To study the sources of information that helps in building consumer preference for distinctive product line of smart phones. 3. RESULTS & DISCUSSION 3.1 Socio- Economic Profile of the Respondents The study reported that maximum of the respondents are between the age categories ranging from 19-30 years (61.3%).In reference to the gender status, 65% are male and 35% are female respondents. Most of the respondents are graduates. As per the occupational status, 42.5% are students, 27.5% are servicemen, 15% are businessmen and 7.5% are professionals. (Table 1) Copyright 2012 Published by IJMRR. All rights reserved 194
Table 1: Socio- Economic Profile of the Respondents Demographic variables Details No. of respondents (%) Age (in years) 19-30 years 31-45 years Above 46 years 61.3% 17.5% 21.3% Gender Male 65% Educational Qualification Female HighSchoolGraduation Post Graduation Occupational status Professional Service Business Students Others Income (Rs./month) Less than Rs. 20,000 Rs. 20,001 - Rs. 30,000 Rs. 30,001 - Rs. 40,000 Rs. 40,001 Rs. 50,000 35% 1.3% 52.5% 46.3% 7.5% 27.5% 15.0% 42.5% 7.5% 47.0% 20.0% 10.0% 12.5% 10.0% Above Rs. 50,000 Total 100% 3.2 Factors building preference and preferred usability features It has been clearly stated that there are various factors and usability features that determine consumer preference, the study depicted that the respondents considered usage ease and processing speed as major factors building preference followed closely by technological needs and applications. However, recreation and social impact were comparatively considered less preferred.(table 2) The respondents mainly use their Smartphone for making calls, messaging (e.g. sms, whtsapp etc.) and internet browsing. This observation was closely followed by using Smartphone for email and social networking (e.g. facebook, twitter etc.). However, game applications, entertainment and video calls were comparatively less used features. (Table 3) Table 2: Factors building preference in Smartphone Factors Building Preference Level (Response And Weight) Total Weightage Rank Preference Highly Preferred (3) Moderately Preferred (2) Least Preferred (1) Score Usage Ease 56 19 5 211* I Recreational 32 44 4 188 V Processing Speed 54 23 3 211 I Product Features 44 31 5 199 IV Applications 43 34 3 200 III Social Impact 33 35 12 181 VI Technological Needs 50 25 5 205 II Handset 29 39 12 177 VII Transformation Others 13 29 38 135 VIII *56*3+19*2+5*1=211 (Source: Primary probe) Copyright 2012 Published by IJMRR. All rights reserved 195
Table 3: Features mostly used by the respondents Usability Features Preferred Features (Responses And Weights) I II III IV (8) (7) (6) (5) V (4) VI (3) VII (2) VIII (1) Total Weightage Score Rank Messaging 16 19 13 15 8 6 1 2 468* II InternetBrowser 9 18 20 15 10 7 1 0 456 III GameApplicati 2 5 7 12 9 11 17 17 VI ons 273 Email 4 11 18 10 14 11 8 4 376 IV Calls 38 9 3 6 11 9 2 2 492 I VideoCalls 0 3 4 5 5 19 10 34 201 VIII SocialNetwork 9 12 9 11 13 9 11 6 372 V Entertainment 2 3 6 6 10 8 30 15 242 VII *16*8+19*7+13*6+15*5+8*4+6*3+1*2+2*1=468 (Source: Primary probe) 3.3 Discovery of influence, sources of awareness and benefits derived It have been learnt from the analysis that relative advantage is major influence followed closely by compatibility and social influence (Table 4). It have been observed that the respondents considered internet and mass media as important information sources generating consumer awareness followed closely by peers and family. However, retailer, company and others were comparatively preferred less (Table 5). It have been learnt that the respondents ranked convenience and multitasking as most important benefits derived by Smartphone users. This observation was closely followed by value for money and infotainment. However, social acceptance and durability were comparatively less derived benefits (Table 6) Table 4: Various influences on respondents Influences Percentage Social Influence 23.8 Relative Advantage 36.3 Compatibility 35.0 Price 5.0 Total 100.0 (Source: Field Survey) Table 5: Information sources creating awareness among respondents Preference Level (Response And Weight) Total Rank Information Sources Highly Preferred (3) Moderately Preferred (2) Least Preferred (1) Weightage Score Mass Media 50 25 5 205* II Internet 55 20 5 210 I Peers, Friends & 39 36 5 III Family 194 Retailer 10 42 28 142 IV Company 10 31 39 131 V Others 11 25 44 127 VI *50*3+25*2+5*1=205 (Source: Primary probe) Copyright 2012 Published by IJMRR. All rights reserved 196
Table 6: Benefits derived by the respondents Benefits Preferred Benefits (Response And Weight) Total Weightage Rank I(6) II(5) III(4) IV(3) V(2) VI(1) Score Convenience 27 15 13 13 8 4 348* I Social Acceptance 2 16 19 8 21 14 248 V Infotainment 10 9 9 21 16 15 251 IV Multitasking 25 16 19 6 8 6 346 II Value For Money 10 11 9 20 21 9 262 III Durability 6 13 11 12 6 32 225 VI 27*6+15*5+13*4+13*3+8*2+4*1=348 (Source: Primary probe) 3.4: Relationship between preferred usability features of Smartphone with demographic variables. It have been observed from the analysis that a significant relationship exists between the preferred usability features of Smartphone and age. It is found that highest level of significance emerged for emails (F=3.53; P<0.05) and entertainment (F=4.32; P<0.05) (Table 7). There is no significant relationship between the preferred usability features of Smartphone and occupational status but after taking intrinsic view it is observed that the highest level of significance emerged for internet browser (F=2.62; P<0.05), game applications (F=3.32; P<0.05) and entertainment (F=2.65; P<0.05) (Table 8). Even there is no significant relationship between the preferred usability features of Smartphone and income status but after taking intrinsic view it is observed that highest level of significance emerged for game applications (F=3.32; P<0.05) (Table 9). Table 7: Relationship between the preferred usability features of Smartphone and age Usability Features Age in Years F¹ P(Cv)² 19-30 31-45 More than 46 Mean S.D Mean S.D Mean S.D Messaging 2.82 1.69 3.71 1.68 3.65 1.93 2.32 0.105 Internet Browser 3.20 1.65 3.14 1.29 3.71 1.21 0.78 0.461 Game Apps. 5.22 2.05 6.14 1.87 6.18 1.87 2.10 0.129 Email 4.73 2.01 3.64 1.44 3.59 1.54 3.53 0.034* Calls 3.65 2.23 2.14 1.74 1.12 0.48 12.21 0.001 Video calls 6.67 1.72 6.00 1.36 6.35 1.36 0.89 0.415 Social Network 4.18 2.19 4.36 2.30 4.82 2.03 0.54 0.584 Entertainment 5.51 2.07 6.86 1.23 6.59 1.17 4.32 0.017* ¹ Factor Value (Source: Primary probe) ²Significant Value *P(Cv) >0.001, <0.005 Copyright 2012 Published by IJMRR. All rights reserved 197
Table 8: Relationship between the usability factors building consumer preference and occupation Usability Features Occupational Status Professional Service Business Student Others Mean S.D Mean S.D Mean S.D Mean S.D. Mean S.D. F¹ P(Cv)² Messaging 3.17 1.72 3.45 1.81 3.00 1.477 3.03 1.76 3.00 2.60 0.22 0.924 Internet 3.00 1.78 3.59 1.33 3.75 1.60 2.79 1.47 4.50 1.04 2.62 0.041* Browser Game 4.00 2.09 6.36 1.78 6.50 1.56 5.21 2.07 4.67 1.75 3.32 0.015* Apps. Email 3.83 2.13 3.86 1.55 2.67 0.98 5.12 1.91 5.00 1.78 5.34 0.001 Calls 5.33 1.86 1.73 1.45 2.50 2.46 3.44 2.10 1.83 1.60 5.48 0.001 Video 7.33 1.03 5.91 2.11 5.92 1.44 6.82 1.54 7.00 1.67 1.82 0.132 calls Social 3.00 2.36 4.64 1.91 4.67 2.10 4.26 2.27 4.50 2.58 0.75 0.561 Network Entertain ment 6.33 1.50 6.45 1.68 7.00 0.73 5.32 2.09 5.50 1.97 2.65 0.039* ¹ Factor Value (Source: Primary probe) ²Significant Value *P(Cv) >0.001, <0.005 Table 9: Relationship between the usability factors building consumer preference and Income Usability Features Income (Rupees/Month) Less than 20,001-30,001-40,001- More than 20,000 30,000 40,000 50,000 50,000 Mean S.D Mean S.D Mean S.D Mean S.D Mean S.D F¹ P(Cv)² Messaging 2.97 1.56 3.19 2.63 3.38 1.68 3.30 1.56 3.50 1.06 0.21 0.929 Internet 2.74 1.48 4.19 1.42 4.13 1.35 3.30 0.94 3.38 1.59 3.75 0.008 Browser Game 5.24 2.04 4.69 1.92 6.63 1.68 6.90 1.44 6.38 1.84 3.32 0.015* Apps. Email 4.87 1.94 4.75 1.61 3.13 1.72 3.80 1.61 2.5 0.92 4.48 0.003 Calls 3.24 2.05 3.44 2.44 1.75 1.75 1.90 1.72 2.1 2.47 1.89 0.121 Video 6.95 1.50 6.06 2.40 6.00 2.07 6.50 1.17 5.6 0.7 1.62 0.178 calls Social 4.37 2.12 3.63 2.33 5.25 1.16 3.80 2.20 5.5 2.4 1.55 0.195 Network Entertain ment 5.63 2.01 6.06 1.73 5.75 2.49 6.50 1.50 7.00 0.0 1.16 0.332 ¹ Factor Value (Source: Primary probe) ²Significant Value *P(Cv) >0.001, <0.005 4. CONCLUSION The consumers considered usage ease and processing speed as major factors building preference followed closely by technological needs and applications. Thus, Smartphone companies must focus mainly on usage ease, processing speed, applications and technological needs so as to build strong preference for Smartphone and give an edge to a particular brand.the consumers mainly use their Smartphone for making calls, messaging Copyright 2012 Published by IJMRR. All rights reserved 198
(e.g. sms, whtsapp etc.) and internet browsing. This observation was closely followed by using Smartphone for email and social networking (e.g. facebook, twitter etc.). Thus, Smartphone companies must emphasize on enhancing calling, messaging and internet browsing features by focusing on hardware compatibilities and thus providing a competitive edge. Most of the consumers considered relative advantage to be a major influence followed closely by compatibility and social influence. Thus, relative advantage of a Smartphone should be attributed to attract consumers and stakeholders. The consumers considered internet and mass media as important information sources generating consumer awareness followed closely by peers and family. Thus, the Smartphone companies must focus mainly on providing more information about their product through internet and mass media. Even emphasis on improvising retailer and company sources should be made for generating more awareness among consumers.the consumers ranked convenience and multitasking as most important benefits derived by Smartphone users. Thus, the Smartphone companies must emphasize on delivering convenience and facilitate multitasking. While observing the relationship between preferred usability features and age, the highest level of significance emerged for emails and entertainment. The companies that more emphasis should be laid on enhancing features for emails and entertainment for positioning their Smartphone for various targeted consumers. While observing relationship between preferred usability features and occupational status, the highest level of significance emerged for internet browser, game applications and entertainment. The companies that more emphasis should be laid on enhancing features for internet browsing, game applications and entertainment for positioning their Smartphone for various targeted consumers. While observing relationship between preferred usability features and income status, the highest level of significance emerged for game applications.thus, more emphasis should be laid on enhancing features for game applications for positioning their Smartphone for various targeted consumers. REFERENCES Hayden N. Consumer Behaviour: basics marketing. Ava Publications 2009; 90. Howell D. Small Business Guide to Apps: application software. Harriman House Limited, 2012; 56. Ilyasa M, Ahson SA. Smartphone: Technology and Engineering. International Engineering Consortium, 2005; 121-125. Jongepier J. Young adopters of Smartphones: examining determinants of the adoption decision. Erasmus University, Netherlands, 2011. Kothari CR. Research methodology: methods and techniques. New Age Publications, India, 2009. Kotler P. Marketing Management.Pearson Publication, Delhi.13 th ed. 2008; 278-282. Pasqua R, Elkin N. Mobile marketing: an hour a day. John Wiley and Sons Publications, 2012; 72. Copyright 2012 Published by IJMRR. All rights reserved 199
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