A Study of Consumer Purchasing Behaviour in Emerging...

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Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP) An Online International Research Journal (ISSN: 2311-3170) 2016 Vol: 1 Issue 1 361 www.globalbizresearch.org A Study of Consumer Purchasing Behaviour in Emerging Markets The Case of Indonesia and Smartphones Alexander Wollenberg, Bina Nusantara University, Binus Business School, Jakarta, Indonesia. E-mail: [email protected] ___________________________________________________________________________________ Abstract This paper provides a quantitative analysis on consumer purchasing behaviour in the smartphone market in West Java, Indonesia, using Jakarta as an example. Various handset characteristics, operating systems, and country of origin of diverse smartphone makers were operationalised in order to provide an overview of consumer preferences according to demographic factors. The findings of the study could be important to the marketing strategies of smartphone makers in emerging markets. ___________________________________________________________________________ Key Words: Consumer Behaviour, Innovation, Emerging Markets, Indonesia, Quantitative, Marketing

Transcript of A Study of Consumer Purchasing Behaviour in Emerging...

Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)

An Online International Research Journal (ISSN: 2311-3170)

2016 Vol: 1 Issue 1

361 www.globalbizresearch.org

A Study of Consumer Purchasing Behaviour in Emerging Markets –

The Case of Indonesia and Smartphones

Alexander Wollenberg,

Bina Nusantara University,

Binus Business School,

Jakarta, Indonesia.

E-mail: [email protected]

___________________________________________________________________________________

Abstract

This paper provides a quantitative analysis on consumer purchasing behaviour in the

smartphone market in West Java, Indonesia, using Jakarta as an example. Various handset

characteristics, operating systems, and country of origin of diverse smartphone makers were

operationalised in order to provide an overview of consumer preferences according to

demographic factors. The findings of the study could be important to the marketing strategies

of smartphone makers in emerging markets.

___________________________________________________________________________

Key Words: Consumer Behaviour, Innovation, Emerging Markets, Indonesia, Quantitative,

Marketing

Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)

An Online International Research Journal (ISSN: 2311-3170)

2016 Vol: 1 Issue 1

362 www.globalbizresearch.org

1. Introduction

Recently mobile phone market has emerged as a most important in electronic sector. There

are various companies which are in this market but are battling for survival in competitive

market. McNeal (2001) stated that an organization can leave behind the competition inly if it

keenly studies its present users and prospective users.

In recent era, it has been observed that users of mobile phones is increasing day by day.

Handset manufacturing organizations in present times are eager to know what factors influence

buying behaviour of an individual. It has been continuously observed that decision making

process for buying a product is built upon past experiences and perception of customer also to

include the offers by the organization and level of customer satisfaction. This study is an

attempt is discover the factors which influence of decision making process of a customer in

mobile handset buying, customer satisfaction and customer loyalty.

1.1 Consumer Behaviour

Consumer behaviour is defined as a field of study, focusing on consumer activities.

(Blackwell, et al., 2001). Consumer behaviour is also defined as the behaviour that consumers

display in searching for purchasing, using, evaluating and disposing of products and services

that they expect will satisfy their needs (Schiffman & Kanuk, 2004).

Consumer behaviour is defined as activities people undertake when obtaining, consuming

and disposing of products and services. Obtaining refers to the activities leading up to and

including the purchase or receipt of the product. Some of these activities include searching for

information regarding the product features and choices, evaluating alternative products or

brands, and purchasing (Blackwell, et al., 2001).

1.2 Consumer decision making process

Schiffman and Kanuk (2004) has identified that consumer goes through a process for

decision making. Consumer is diverse and have complex behaviour. The figure 1.1 explain the

process of decision making.

1.3 Variables studied in the study

This section of the chapter provides an overview of the variables which are being examined

in the study. The variables which are being examined are (1) characteristics of handset, (2) style

of handset, (3) country of origin, (4) customer satisfaction, and (5) customer loyalty.

1.4 Characteristics of Handset

Characteristics of handsets comprise of the desired characteristics by the customer which

he/she wants to avail in the handset. The desired characteristics of handset were identified by

Kannan (2013) in his doctoral thesis. He elaborated that shape, attractiveness, size, weight,

screen, hardware, operating system, games, music player, internet, battery size, ringtones,

network coverage, speaker phone, camera, RAM and SAR value as important characteristics of

Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)

An Online International Research Journal (ISSN: 2311-3170)

2016 Vol: 1 Issue 1

363 www.globalbizresearch.org

handset perceived by consumer. Characteristics play an important role in consumer’s decision

making process. He looks out for important characteristics in handset which he/she wishes to

have according to his use.

1.5 Style of Handset

Kannan (2013) in his study also explained that style of handset also is an important factor

which affects buy behaviour of an individual. He emphasized that an individual looks for a

mobile which suits its personality, it should the current fashion, it should have latest operating

system, preinstalled applications also should be present and the handset should also be well

known among user’s peers.

1.6 Country of Origin

Upadhyay et al. (2006) studied ethnocentrism in Indonesian context and found that

consumers are also effected by the country of origin of the product. The perception is created

by the consumer about the product by adjudging the country to which it belongs. The best

examples can be like Italy is famous for its designs, USA for sturdy products and Japan for

technologically advanced products. Country of origin is also found to play as an important

influencer when consumer goes to buy a product.

1.7 Customer Satisfaction

Customer satisfaction, as a business term, is a measurement of how products and services

supplied by a company meet or surpass customer expectation. It is seen as a key performance

indicator within business and is part of the four of a Balanced Scorecard.

In a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element of

business strategy.

However, the importance of customer satisfaction diminishes when a firm has increased

bargaining power. For example, cell phone plan providers, such as AT&T and Verizon,

participate in an industry that is an oligopoly, where only a few suppliers of a certain product

or service exist. As such, many cell phone plan contracts have a lot of fine print with provisions

that they would never get away if there were, say, a hundred cell phone plan providers, because

customer satisfaction would be way too low, and customers would easily have the option of

leaving for a better contract offer.

1.8 Customer Loyalty

Customer loyalty is referred as intention of repurchasing a product repeatedly. From a

seller’s point of view, recognized it as a key path to profitability. Early views of brand loyalty

focused on repeat purchase behaviour. Brown (1952) classified loyalty into four categories, (1)

Undivided loyalty, (2) Divided loyalty, (3) Unstable loyalty, and (4) No loyalty, based on

Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)

An Online International Research Journal (ISSN: 2311-3170)

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the purchase patterns of consumers. Jacoby (1971) expressed the view that loyalty is a biased

behavioural purchase process that results from a psychological process. Assael (1992) defined

brand loyalty as “a favorable attitude towards a brand resulting consistent purchase of brand

over-time. Gremler (1995) suggested that both the attitudinal and behavioural dimensions need

to be incorporated in any measurement of loyalty. More the customer is loyal, more the level

of profit is earned by the seller.

2. Objective of the Study

The main objective of the study was to identify the factors which help a consumer

determine or take a buying decision for mobile handset. The major objective have been

bifurcated in to following objectives.

1. To determine the factors affecting the buying behaviour of individual of mobile

handset.

2. To determine which characteristics of handset influenced buying behaviour of

individual.

3. To determine did style of handset influenced buying behaviour of individual.

4. To determine whether country of origin influenced buying behaviour of individual.

5. To determine whether demographic profiles like gender, age and income influenced

buying behaviour of individual.

2.1 Research Questions

From the literature provided in earlier part of the chapter following research questions were

found to be answered.

1. What characteristics do buyers seek in handsets before making a purchasing decision?

2. Does demography affect purchasing decisions?

3. Are customers who are using handsets are satisfied?

4. Are customers loyal to the handset manufacturing company?

2.2 Statement of Problem

Indonesia is the second largest market in terms of volume of goods supplied and it is one

of the fastest growing markets in telecommunications. Consumers in Indonesia belong to

different sociocultural classes and are diversified. The researcher tries to identify the

characteristics of handsets consumers look for before making a purchasing decision and to

evaluate post-purchase decisions, including satisfaction with the purchase and likelihood of

repeat purchases.

2.3 Importance of the Study

The study by Morrison (1979) elaborately discussed purchasing intentions of individual

consumers. This study also ascertains purchasing intentions and factors which individual

consumers seek before making purchasing decisions for smartphones.

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3. Literature Review

3.1 Consumer Behaviour

The challenge for marketers is to understand the diversity of consumer behaviour and offer

goods and services accordingly. The success of the firm is, to a large extent, determined by how

effective it has been in meeting diverse consumer needs by offering products and services to

suit needs and creating sustainable value and relationship with the consumer (Nair, 2004).

The American Marketing Association has defined consumer behaviour as, “The dynamic

interaction of affect and cognition, behaviour, and the environment by which human beings

conduct the exchange aspects of their lives.” (Anderson & Bennett, 1988)

Marketers have come to realise that their effectiveness in meeting consumer needs directly

influence their profitability. The better marketers understand the factors underlying consumer

behaviour, the better they are able to develop effective marketing strategies to meet consumer

needs (Assael, 1987).

The term consumer behaviour is defined as the behaviour that consumers display in

searching for, purchasing, using, evaluating and disposing of products and services that they

expect will satisfy their needs. Consumer behaviour focuses on how individuals make decisions

to spend their available resources (time, money, effort) on consumption related items -

including what they buy, why they buy it, when they buy it, where they buy it, how often they

buy it, how often they use it, how they evaluate it after the purchase and the impact of such

evaluations on future purchases, and how they dispose of it.

Marketers thus need to understand the personal and group influences that affect consumer

decisions and how these decisions are made (Schiffman & Kanuk, 2007)

Consumer behaviour reflects the totality of consumers’ decisions with respect to the

acquisition, consumption, and disposition of goods, services, time, and ideas by (human)

decision making units [overtime] (Hoyer & Macinnis, n.d.).

Sirgy (1982) argued that idolisation of image of self-influences purchasing decisions. Sirgy

(1982) found that gender plays an important role in selecting a product, and he stated that self-

concept theory is useful in creation of attitudinal models for consumer behaviour and should be

researched more.

Palan (2001) examines consumer behaviour grounded in theoretical models of gender

identit. Palan (2001) evaluated whether gender identity research is still warranted, and proposes

specific research questions to guide future research:

1. Which gender variable(s) is (are) most relevant to the study under consideration?

2. What additional personality traits or sub-dimensions of instrumental and expressive traits

that are associated with gendered responses exist?

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3. What is the relationship between gendered personality traits and gender salience in different

contexts?

Palan (2001) stated that “gender identity” is a much broader concept and more empirical

work is required to enhance understanding of this concept. Gender identity is a complex, often

misunderstood concept (Palan, 2001).

Jarvis , Mackenzie and Podaskoff (2003) in their empirical study discussed the distinction

between formative and reflective measurement models. They developed a set of conceptual

criteria which could be further used to determine whether a construct should be modeled as

having formative or reflective indicators. They also reviewed the marketing literature to obtain

an estimate of the extent of measurement model misspecification in the field (Jarvis et al.,

2003). Their results indicated that there are important theoretical and empirical distinctions

between formative and reflective indicator measurement models, and that as many as 28% of

the latent constructs with multiple indicators published in the top marketing journals were

incorrectly specified as reflective when they should have been formative (Jarvis et al., 2003).

They also indicated that a substantial proportion of the empirical results in the literature may

be potentially misleading.

3.2 Research Questions

The following additional research questions can be developed based on the previous part

of the literature review.

1. What characteristics do buyers seek in handsets before making purchasing decisions?

2. How does demography affect purchasing decisions?

3. Are customers satisfied with their handsets?

4. How loyal customers to the handset manufacturing company?

3.3 Research Methods

The quantitative part of the study in this research involved the collection of primary data

from customers who were buying electronic products and their buying behaviour in the capital

district of Jakarta, Indonesia’s main economic centre. A structured questionnaire was designed

for the purpose of data collection.

3.4 Hypotheses Framed

In this dissertation, hypotheses are formed centered on the research about the factors that

affect the purchasing behaviour and decision-making process in electronic goods. A “null"

hypothesis is used in this paper, claiming impact and factors affecting purchasing behaviour,

which is to be disproven. The hypotheses use customer purchasing behaviour of electronic

goods as dependent factors and examine the factors which affect buying behaviour decision as

an independent variable. The process of testing the hypothesis is described in the figure 1 below.

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Figure 1: Process of Testing Hypothesis

Making Assumption

Select Appropriate Method

Collect Information

Interpreting Methods of Analysis

Hypotheses

AcceptedHypotheses

Rejected

True False

3.5 Hypothesis

Figure 1 illustrates the building process of the following hypotheses:

H01: Characteristics of handset does not affect consumer purchasing behaviour

H02: Style of handset has no effect on consumer purchasing behaviour

H03: There is no significant difference in purchasing behaviour according to age

H04: Country of origin has no effect on purchasing behaviour

H05: There is no significant difference in purchasing behaviour of customer according to

income group

H06: There is no significant difference in purchasing behaviour of customer according to

Gender.

H07: The customer is not satisfied with the purchase of a mobile phone

3.6 Sampling

This study required a self-administered questionnaire as many variables needed to be

explored. The questionnaire consisted of 57 questions, including 5 demographic questions, 46

questions to measure preference of consumer towards cellular phones and 6 questions to

measure intention to repurchase and refer cellular phone to other customers.

Anecdotal observations indicated that mail interviews would be difficult in Indonesia where

there is a tendency to discard such mail. Malhotra & Peterson (2001) also noted that the mail

interview method is not popular in developing countries, as postal addresses are often not

available.

4. Scope of the Study

This study focuses on how the concepts of factors of decision making process which effects

consumer buying behaviour particularly in smartphones in the Jakarta region. Respondents here

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belong to multiple socio-economic classes and income groups. A wide variety of respondents

can thus be obtained from Jakarta.

4.1 Subject Selection and Sample

The study was set in Jakarta. This area was taken for study because it is considered as

greatest diversified population area in Indonesia. The sampling plan was non-probability,

mainly convenience sampling.

Jakarta is divided into 5 parts - north, central, south, east and west. These five parts have been

further divided into 10 zones.

4.2 Sample Profile, Distribution of Sample, and Frequencies of Respondents

In order to understand the profile of the sample, data was analysed with the help of SPSS

20.0.

The total sample of customers consisted of 129 responses. With the help of cross-tabulation

researcher had identified that from which occupation how much data (in different categories)

had been collected.

From table 2 it can be deduced that out of the total 129 responses 49.6 % (64) were male

and 50.4% (65) were females (refer figure 1).

Table 2: Gender

Frequency Percent

Gen

der

Male 63 48.4

Female 66 51.6

Total 129 100.0

Figure 1: Gender

Table 3 exhibits the distribution of the age group of the respondents. 58% (75 responses)

were aged in between 16 years to 25 years. Again 23 % (30 responses) were aged between 26-

35 years. And finally 19 % (18 responses) were aged between 46-55 years (refer figure 4.2)

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Table 3: Age

Frequency Percent

Ag

e G

rou

p 16-25 75 58%

26-35 30 23%

36-45 24 19%

Total 129 100.0

Figure 2: Age Group

Table 4 exhibits income group of the respondents. 13 of the respondents belonged to

income group below 10,000,000 which included approximately 10 % of the total sample. 31 of

the respondents belonged to income group 10,000,000-20,000,000 accruing 24% of the sample

size. 57 of the total respondents belonged to income group 20,000,001/- to 50,000,000/-

accumulating 44% of the total sample size. 21 respondents were respondents earned more than

50,000,000 per month in total representing 21.7% of the sample size (refer to figure 4.3)

Table 4: Income Group

Frequency Percent

Inco

me

P.M

.

Below 10000000 13 10.1

10,000,000-20,000,000 31 24.0

2,000,001-50,000,000 57 44.2

50,000,001 and above 28 21.7

Total 129 100.0

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Figure 3: Income per month

4.3 Measure of Reliability

It is important to assess the reliability of instruments in order to design good scales for

measurement. Reliability can be defined as the extent to which measures are free from error

and thus yield consistent results (Zikmund, 1994). Reliability is construed as the internal

consistency of items comprising a construct and repeatability of the measure (Avkiran, 1995).

Stone (1978) postulated that internal consistency addresses the homogeneity of a measure.

Nunnally (1978) recommended calculation of coefficient alpha (also known as Cronbach

alpha) in order to assess the reliability of a multiple-item variable. Churchill and Peter (1984)

suggested an accepted level for the alpha coefficient. According to them a value of alpha below

0.60 is undesirable. Nunnally (1978; 1988) indicated that new developed measures can be

accepted with an alpha value of 0.60, otherwise, 0.70 should be the threshold. However,

considering the use of these scales for the first time in a new culture, the cut off value for the

alpha coefficient was set up for 0.60 for all the scales (self-developed scales).

The reliability of the questionnaire was computed by using SPSS 20.0 software. Cronbach’s

alpha reliability coefficients were computed for all the items in the questionnaire.

Table 5: Reliability Statistics

Cronbach's Alpha N of Items

.868 32

It is considered that the reliability value more than 0.6 is good and it can be seen that most

of the important reliability methods applied here, reliability value was higher than the standard

value, therefore, all the items in the questionnaire were highly reliable.

4.4 Analysis of variance within subjects for variables of Characteristics of handset

(income-wise)

A one-way within subjects ANOVA was conducted on the score of variables to compare

the opinion differences of different income groups. Results of ANOVA reported in table 6 and

it suggested that 14 out of 17 variables were found with significantly different opinions about

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characteristics of handset. To know how their opinion was different mean plots were prepared

to measure actual differences in opinion. Because only 14 variable were reported significantly

different, which is why 14 mean plots were prepared for actual measurement of opinion

differences.

Table 6: ANOVA (income-wise*Characteristics)

Sum of Squares df Mean Square F Sig.

Char 1

Between Groups 1.653 3 .551 1.755 .159

Within Groups 39.246 125 .314

Total 40.899 128

Char 2

Between Groups 4.516 3 1.505 2.344 .076

Within Groups 80.290 125 .642

Total 84.806 128

Char 3

Between Groups 7.170 3 2.390 3.283 .023

Within Groups 90.986 125 .728

Total 98.155 128

Char 4

Between Groups 5.057 3 1.686 4.174 .007

Within Groups 50.478 125 .404

Total 55.535 128

Char 5

Between Groups 8.257 3 2.752 4.454 .005

Within Groups 77.246 125 .618

Total 85.504 128

Char 6

Between Groups 13.959 3 4.653 7.899 .000

Within Groups 73.638 125 .589

Total 87.597 128

Char 7

Between Groups 4.064 3 1.355 2.740 .046

Within Groups 61.812 125 .494

Total 65.876 128

Char 8

Between Groups 26.883 3 8.961 15.004 .000

Within Groups 74.652 125 .597

Total 101.535 128

Char 9

Between Groups 4.978 3 1.659 2.794 .043

Within Groups 74.246 125 .594

Total 79.225 128

Char 10

Between Groups 27.809 3 9.270 15.914 .000

Within Groups 72.812 125 .582

Total 100.620 128

Char 11

Between Groups 18.191 3 6.064 9.935 .000

Within Groups 76.290 125 .610

Total 94.481 128

Char 12 Between Groups 32.935 3 10.978 14.252 .000

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Within Groups 96.290 125 .770

Total 129.225 128

Char 13

Between Groups 31.705 3 10.568 16.243 .000

Within Groups 81.333 125 .651

Total 113.039 128

Char 14

Between Groups 15.891 3 5.297 5.947 .001

Within Groups 111.333 125 .891

Total 127.225 128

Char 15

Between Groups 18.436 3 6.145 5.268 .002

Within Groups 145.812 125 1.166

Total 164.248 128

Char 16

Between Groups 54.442 3 18.147 17.646 .000

Within Groups 128.551 125 1.028

Total 182.992 128

Char 17

Between Groups 4.881 3 1.627 1.518 .213

Within Groups 133.957 125 1.072

Total 138.837 128

4.5 Analysis of variance within subjects for variables of country of origin of handset (age

group-wise)

A one-way within subjects ANOVA was conducted on the score of variables to compare

the opinion differences of both genders. Results of ANOVA reported in table 7 and it suggested

that none of 2 variables were found to significantly different opinions about country of origin.

To know how their opinion was different mean plots were prepared to measure actual

differences in opinion. Because no variables showed significant differences, no mean plots were

prepared for actual measurement of opinion differences.

Table 7: ANOVA (Country of origin*Age group)

Sum of

Squares df

Mean

Square F Sig.

Country 1 Between Groups 1.550 2 .775 .605 .548

Within Groups 161.380 126 1.281

Total 162.930 128

Country 2 Between Groups 2.709 2 1.355 1.321 .270

Within Groups 129.167 126 1.025

Total 131.876 128

4.6 One sample T-test within subjects to examine satisfaction and loyalty of customers

Table 8 exhibits the level of satisfaction and loyalty of customer among the customers of

mobile phone users. It can be observed that proper after-sales service must be provided by the

handset manufacturers, including a reasonable service fee if outside the warranty period.

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Customers were also satisfied with the retailer where they had bought the handset. Customers

also believe that the prices are competitive from the retailer where the phone was purchased.

Customer is also satisfied from the battery performance of the handset (refer table 4.13). The

p=0.000 and df= 128, thus indicating that customer is satisfied from the handset he/she is using.

Loyalty is also indicated in table 8 indicating that customer will recommend handset to other,

and using other products of the handset manufacturer and will upgrade the handset by the same

manufacturer if offered (p=0.000, df=128).

Table 8: One-Sample Test on satisfaction and loyalty

Test Value = 0

t df Sig. (2-tailed)

Mean

Difference

95% Confidence

Interval of the

Difference

Lower Upper

Satis 1 45.147 128 .000 3.039 2.91 3.17

Satis 2 54.125 128 .000 3.380 3.26 3.50

Satis 3 36.732 128 .000 3.504 3.32 3.69

Satis 4 41.866 128 .000 3.078 2.93 3.22

Satis 5 26.283 128 .000 2.659 2.46 2.86

Loyal 1 23.084 128 .000 2.705 2.47 2.94

Loyal 2 39.990 128 .000 2.984 2.84 3.13

Loyal3 59.360 128 .000 3.457 3.34 3.57

It is observed from the one sample t test that customers are satisfied from the handset which

they are using in present and are willing to continue usage of their current handset manufacturer

and also are willing to suggest the

4.7 One-Sample Komlogorov Smirnov test (gender-wise, income group-wise and age

group-wise)

One-Sample Komlogorov Smirnov test was applied on the score of variables to compare the

opinion differences of both genders, income groups and age groups. Results of statistical

procedure reported in table 9.

Table 9: One-Sample Komlogorov Smirnov test

(Gender, income group and age group-wise)

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Table 10: Summary of major hypotheses tested for this study (as submitted in proposal)

Summary of Hypothesises Tested for Study

Hypothesis

No.

Reference Null Hypotheses Result Alternate

Hypothesis

Resulted Hypotheses

H01 Table 4.15

(Char1-

Char17)

Characteristics of handset does not affect

consumer purchasing behaviour Alternative

hypothesis accepted

(1-tailed;sig: 0.000)

H01a Characteristics of handset does affect

consumer purchasing behaviour

H02 Table 4.15

(Style1-

Style5)

Style of handset has no effect on consumer

purchasing behaviour Alternative

hypothesis accepted

(1-tailed;sig: 0.000)

H02a Style of handset has significant effect on

consumer purchasing behaviour

H03 Table 4.15

(Char1-

Country2)

There is no significant difference in

purchasing behaviour according to age Alternative

hypothesis accepted

(1-tailed;sig: 0.000)

H03a There is significant difference in purchasing

behaviour according to age

H04 Table 4.15

(Country1-

Country2)

Country of origin has no effect on

purchasing behaviour Alternative

hypothesis accepted

(1-tailed;sig: 0.000)

H04a Country of origin has positive effect on

purchasing behaviour

H05 Table 4.15

(Char1-

Country2)

There is no significant difference in

purchasing behaviour of customer

according to income group

Alternative

hypothesis accepted

(1-tailed;sig: 0.000)

H05a There is significant difference in purchasing

behaviour of customer according to income

group

H06 Table 4.15

(Char1-

Country2)

There is no significant difference in

purchasing behaviour of customer

according to Gender

Alternative

hypothesis accepted

(1-tailed;sig: 0.000)

H06a There is significant difference in purchasing

behaviour of customer according to Gender

H07 Table 4.15

(Char1-

Country2)

The customer is not satisfied with the

purchase of cell phone Alternative

hypothesis accepted

(1-tailed;sig: 0.000)

H07a The customer is satisfied with the purchase of

cell phone

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5. Findings of the Study

The following are developed from analysis of the data.

1. The collected data represents that all of the respondents belonged to age group between

16 years to 45 years.

2. Males and females equally use handsets as the 66 were male and 63 were female

respondents.

3. It is observed in the study that characteristics of handset are considered very important

by all respondents regardless of their demographic profile and all respondents were

influenced by handset characteristics in their purchasing decision. However, the least

influenced group were males between 36-45 years.

4. Country of origin was not considered significantly important for the purchasing

decision of the customer.

5. The study found that nearly all customers from different demographic profiles were

satisfied with the handset which they used.

6. 4G connectivity was most preferred by respondents in age group 16-25 years.

7. Availability of camera in the handset was most preferred by respondents in age group

26-35 years.

8. Respondents from age group 26-35 years considered that handset which they are using

should enhance and suit their personality.

9. Respondents from age group 16-25 years considered that the handset should have a

long talk time/battery life and short recharge time.

10. Screen size and its quality was considered an important influencing factor in purchasing

decisions by respondents from age group 36-45 years.

11. The study also found that female respondents preferred availability of a speaker phone

in the handset and considered its features an important factor in making a purchasing

decision.

6. Limitations of the Study

1. The study was carried out in the Jakarta region of West Java, Indonesia. The sample

size was small only 129 respondents took part in the study. Thus the results cannot

necessarily be generalised for the country.

2. The study was carried out only on wireless telecommunication devices and could have

been carried out on different electronic products so that the results could be more

representative. For this purpose, a cross-national comparison could also have been

carried out.

3. The data collected only covered age group from 16 years to 45 years. The collected

responses could cover more age groups.

Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)

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4. The variables which constitute customer satisfaction should be studied thoroughly to

enhance understanding of consumer behaviour.

5. The study only used quantitative data to elaborate the hypothesised relationships.

6. The study should also incorporate the influence of family and social circles on

purchasing decisions of handsets should also be examined.

7. Conclusion

The mobile phone industry is one of the largest in the world. All mobile handset

manufacturers have their own identity in the market. Changing consumer preferences, high

impulse purchases, seasonality and intense price competition are among the main factors that

contribute to high uncertainty in consumer demand. In addition to the above, situational factors

including finance options, sales terms, short prodc life cycles are also important factors

confronting the mobile phone industry? Individual purchasing decisions involve cognitive

processes (e.g. motivation, perceptions and attitudes), decision-making steps, interaction of the

consumer with other groups including friends, family and colleagues, resulting in selection of

the brand and outlet depending on features and emotional appeal (marketing mix elements in a

given environment). A particular model and brand receive preference only when both model

and brand live up to the consumer’s expectations. A marketer should use all means of promoting

its product so that an image is created in the minds of customers in order to affect the purchasing

decision.

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