Sixth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP16Thai Conference) ISBN: 978-1-943579-10-5 Bangkok-Thailand. 18-20 February, 2016. Paper ID: T643

A Study of Consumer Purchasing Behaviour in Emerging Markets – The Case of Indonesia and Smartphones Alexander Wollenberg, Binus Business School, Bina Nusantara University, Indonesia. Email: [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

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Sixth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP16Thai Conference) ISBN: 978-1-943579-10-5 Bangkok-Thailand. 18-20 February, 2016. Paper ID: T643

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.

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Sixth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP16Thai Conference) ISBN: 978-1-943579-10-5 Bangkok-Thailand. 18-20 February, 2016. Paper ID: T643

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 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 3 www.globalbizresearch.org

Sixth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP16Thai Conference) ISBN: 978-1-943579-10-5 Bangkok-Thailand. 18-20 February, 2016. Paper ID: T643

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 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 does buyer seeks in handset before making purchase decision? 2. Does demography affects purchase decision of a consumer? 3. Are the customers who are using handsets are satisfied?

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Sixth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP16Thai Conference) ISBN: 978-1-943579-10-5 Bangkok-Thailand. 18-20 February, 2016. Paper ID: T643

4. Are the customers using handsets are satisfied? 5. Are the customers loyal to the handset manufacturing company? 2.2 Statement of Problem Indonesia is second largest market in terms of volume of goods supplied and is one of the fastest growing market in telecommunications. The consumers in Indonesia belong to different sociocultural classes and are diversified. Here the researcher tries to identify what are the characteristics of handset is a buyer is looking forward before making a purchase decision and also to evaluate his post purchase decision.Whether he/she is satisfied or not. Is the customer is going to make a repeat purchase or not. 2.3 Importance of the Study The study by Morrison (1979) elaborately explained about purchasing intentions of an individual consumer. This study also tries to find out and pin point the purchase intentions and factors which an individual sees before making a purchase decision for mobile handset. And whether the customer is satisfied from the purchase and is willing to repeat purchase the product.

3. Literature Review Research on consumer behaviour is massively studied topics by the researchers as well as marketers in the past and still being researched. Researcher explores different dimension as to why consumer behaviour has been the topic chosen by many academics and researchers. Many studies done on national and international levels to understand the behaviour of consumer. Review of literature provide direction to research and also understand the buying behaviour of consumer towards consumer electronic goods (Keller & Kotler, 2012). The present chapter classified into two parts: Consumer behaviour, Consumer buying behaviour in electronic goods market. 3.1 Consumer Behaviour As the twentieth century has come to a close and we have moved into the third millennium, we can see many developments and changes taking place around us with all the industries and firms within each industry trying to keep pace with the changes and diverse needs of the people. Though for decades together, marketers have regarded ‘customer’ as the king and evolved all activities to satisfy him, this concept is gaining more momentum and importance today. This can largely be attributed to the prevailing market situation. Not only competition has become intense but over above with the market being flooded with many products. The challenge before the marketers is to understand the diversity of consumer behaviour

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Sixth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP16Thai Conference) ISBN: 978-1-943579-10-5 Bangkok-Thailand. 18-20 February, 2016. Paper ID: T643

and offer goods and services accordingly. Today the company image is built and made known by its customers. Thus the success of the firm will be determined by how effective it has been in meeting the diverse consumer needs and wants by treating each customer as unique and offering products and services to suit his needs and creating a life time value and relationship with him (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 realize that their effectiveness in meeting consumer needs directly influences their profitability the better they understand the factors underlying consumer behaviour, the better able they are 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. That includes 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. One of the most important constants among all of us, despite our differences, is that above all we are consumers. We use or consume on a regular basis food, clothing, shelter, transportation, education, equipment, vacations, necessities, luxuries, services and even ideas. As consumers we play a vital role in the health of the economy-local, national, and international. The purchase decisions we make affect the demand for basic raw materials, for transportation, for production, for banking; They affect the employment of workers and the employment of resources, the success of some industries and the failure of others. In order to succeed in any business, and especially in today’s dynamic and rapidly evolving market place, marketers need to know everything they can about consumers what they want, what they think, how they work, how they spend their leisure time. They 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.).

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Sixth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP16Thai Conference) ISBN: 978-1-943579-10-5 Bangkok-Thailand. 18-20 February, 2016. Paper ID: T643

Sirgy (1982), argued that a consumer buys a product, how he idolizes himself with the use of the product. Author identified the problems related literature concerning consumer behaviour. Author found that gender plays an important role in selecting a product. He also stated that self-concept theory is useful in creation of attitudinal models for consumer behaviour and should be researched more in the near future. Palan (2001) in his paper presented a thorough review, grounded in theoretical models of gender identity, of consumer behaviour studies in the marketing literature that have examined gender identity. Based on the literature review, he in his paper evaluated whether gender identity research is still warranted, and proposes specific research questions to guide future research. Author addressed three questions: 1. Which gender variable(s) is (are) most relevant to the study under consideration? 2. Are there additional personality traits or sub-dimensions of instrumental and expressive traits that are associated with gendered responses? 3. What is the relationship between gendered personality traits and gender salience in different contexts? He stated that “gender identity” is much broader concept and more empirical work is required to enhance understanding of this concept. He found that gender identity, is now, at the end of the review, seen for what it truly is—a complex, often misunderstood concept. Jarvis , Mackenzie and Podaskoff (2003) in their empirical study discussed about the distinction between formative and reflective measurement models. They also 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. 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. They also indicated that a substantial proportion of the empirical results in the literature may be potentially misleading. 3.2 Research Questions From the literature provided in earlier part of the chapter following research questions were found to be answered.

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Sixth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP16Thai Conference) ISBN: 978-1-943579-10-5 Bangkok-Thailand. 18-20 February, 2016. Paper ID: T643

1. What characteristics does buyer seeks in handset before making purchase decision? 2. Does demography affects purchase decision of a consumer? 3. Are the customers who are using handsets are satisfied? 4. Are the customers using handsets are satisfied? 5. Are the customers loyal to the handset manufacturing company?

4. Research Methodology This chapter explains the methodology adopted and the methods employed for this piece of research giving appropriate justifications for the same. The chapter also discusses about the evaluating procedure for different aspects (dimensions) of consumer behaviour identified for this research. Methodological issues connected to research have also been justified. In order to execute the study and attain its aims, this chapter sets out to discuss the various steps that has been taken in the study. The chapter starts with restatement of the objectives of the study followed by research design (approaches and methods), adopted for study. This chapter also deals with scope of the study, research approach (flowchart of research process), and methodology adopted for the study, sampling plan, development of instrument and statistical tools utilized for data analysis, interpretation and making significant inferences at the end of chapter. 4.1 Research Design Research design is a plan to execute the research project. The appropriate design depends on the research objectives and the required data in attaining the same. There is a series of debate regarding better or appropriate research design. It appears to take place at two levels: philosophical and practical (e.g. methodological and methods). At the philosophical level epistemological issues predominate, while at the practical level issues on the choice of specific methods or tools were addressed. In designing a study, choices have to be made at both levels (Creswell, 1994). 4.2 Research Method: Quantitative and Qualitative Research The quantitative part of the study in this research involved the collection of primary data from the customer who were buying electronic products and their buying behaviour in Jakarta region. For this purpose, data was collected from Jakarta region. A structured questionnaire was designed for this purpose; its process will be discussed in later part of this chapter. In addition, both qualitative and the quantitative research methods were used to increase the depth of understanding of this research study.

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Sixth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP16Thai Conference) ISBN: 978-1-943579-10-5 Bangkok-Thailand. 18-20 February, 2016. Paper ID: T643

4.3 Hypotheses Framed In this dissertation, hypotheses are formed centered on the research about the factors which effects the buying behaviour and decision making process in electronic goods market. For balance the findings, “null" hypothesis existed in this paper, which claims about that the impact and factors effecting buying behaviour and that is to be proven in the research that null hypothesis does not exist. Meanwhile the hypotheses use customer buying behaviour of electronic goods as dependent factors, and examining the factors which effect buying behaviour decision as an independent variable. The process of testing hypothesis is described in the figure 3.1. Figure 3.1: Process of Testing Hypothesis

Making Assumption

Select Appropriate Method Collect Information Interpreting Methods of Analysis True

False

Hypotheses Accepted

Hypotheses Rejected

4.4 Hypothesis In the figure 3.1 Hypotheses Testing Process showed which formed for this dissertation purpose. The main objective of this research was to find out the consumer buying behaviour of electronic goods and the factors which effect consumer decision process. The hypotheses for the study are as follows: H01: Characteristics of handset does not affect consumer buying behaviour H02: Style of handset has no effect on consumer buying behaviour H03: There is no significant difference in purchasing behaviour according to age H04: Country of origin has no effect on buying 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 cell phone 4.5 Sampling There are four data collection modes: self-administered questionnaire, personal interview, telephone interviews, and mail interviews (Dwivedi, 1997; and Zikmund, 9 www.globalbizresearch.org

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2003). Each of these modes has advantages and disadvantages associated within them (Nachmias & Nachmias, 1981; Zikmund, 2000 and 2003). It was difficult to select a particular one from them by comparing the advantages and disadvantages of each. This is because the strong point of one mode tends to be the weakness of the other. In order to overcome these situations, Peterson (1982) stated that the choice of mode should be dictated by the aims of the study and data required to attain the aims. Nachmias and Nachmias (1981) also viewed the situation in the same way. Therefore, in the current study the mode was selected on the basis of its aims and data required. This study required self-administered questionnaire as many variables needed to be explored. Here it is also important to mention that to accommodate 57 questions; a four pages long survey questionnaire was formed. Questionnaire was consisted of 5 demographic questions, 46 questions were used to measuring preference of consumer towards cellular phones and 6 questions were used 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 the postal address was not available of all the respondents. Cox (1996) and Huang (1998) suggested that telephonic interviews were not possible in developing countries because of the unavailability of telephone numbers in digital mode. 4.6 Scope of the Study This study focuses on how the concepts of factors of decision making process which effects consumer buying behaviour particularly in electronic products market especially cellular phones, market in Indonesia, especially Jakarta region, was investigated in this study. The region which evidenced metropolitan or developed city and the respondents here belong to multiple classes and income groups. A wide variety of respondents can be obtained from Jakarta. Following are some more reasons for making this research in purred sense: 

In this study researcher has tried to find out the present scenario of cellular phone market, in the Jakarta region, in Indonesia.



This study will facilitate the data regarding the general buying behaviour of consumers, and factors which consumer decision making process effect while buying cell phone.



This project will reflects the consumer buying decision process and what will drive the cellular phone market in the future.

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Sixth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP16Thai Conference) ISBN: 978-1-943579-10-5 Bangkok-Thailand. 18-20 February, 2016. Paper ID: T643



This study will help in knowing the present customers preferences. It will help in estimating the customer’s future needs, wants and demands, and also the trends.



Surveys from consumers and analysing them covering all electronic stores and target customers will facilitate primary data on retail landscape.



Results of study will provide the knowledge about customer’s preference towards exclusive

and multi- brand retail outlet that will be helpful in

finding out the factors that influence the satisfaction level of customer 4.7 Subject Selection and Sample The study was set in Indonesia with special focus towards Jakarta. This area was taken for study because it is considered as greatest diversified population area. The sampling plan was non-probability sampling because no list of population was possible. Convenience sampling was considered as the best method of collecting data from respondents. Reason behind this whenever the possibilities of availability of list of population was less, the better way is to select convenience sampling. Jakarta is divided into 5 parts - north, central, south, east and west. These five parts have been further divided into 10 zones. The expected approximate number of responses for this study is 200 responses collected from all zones. 4.8 Data Analysis As discussed earlier, the study was conducted in Jakarta in southern Indonesia, and data were collected people using cell phone. In all 200 questionnaires were distributed for getting opinion of customer bought cell phone. All the questionnaires were checked and 129 questionnaires were found suitable for data analysis. This results in a response rate of 64%. Regarding an acceptable response rate, Babbie (1990) quoted 60% as ‘good’ and 70% as ‘very good’ (rules of thumb only). This study got overall 64 % response rate, which means response rate was sufficient to make further data analysis. 4.9 Sample Profile In order to understand the profile of sample data was analyzed with the help of SPSS 20.0. Descriptive function under analyses category was helpful for performing this procedure. For understanding sample profile different types tables have been used. It was clear to researcher that without understanding sample profile all the efforts, which made in data analysis, would be wastage of time. Sample profile would help in understanding the system and pattern with different demography.

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Sixth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP16Thai Conference) ISBN: 978-1-943579-10-5 Bangkok-Thailand. 18-20 February, 2016. Paper ID: T643

4.10 Distribution of Sample and Frequencies of Respondents The total sample of customers consisted by 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 4.1 it can be deduced that out of the total 129 responses 49.6 % (64) were male and 50.4% (65) were females (refer figure 4.1).

Gender

Table 4.1: Gender Frequency

Percent

Male

63

48.4

Female Total

66 129

51.6 100.0

Figure 4.1: Gender

Table 4.2 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)

Age Group

Table 4.2: Age Frequency

Percent

16-25

75

58%

26-35

30

23%

36-45

24

19%

Total

129

100.0

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Sixth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP16Thai Conference) ISBN: 978-1-943579-10-5 Bangkok-Thailand. 18-20 February, 2016. Paper ID: T643

Figure 4.2: Age Group

Table 4.3 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 10,000,00020,000,000 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)

Income P.M.

Table 4.3: Income Group

Below 10000000 10,000,000-20,000,000 2,000,001-50,000,000 50,000,001 and above Total

Frequency

Percent

13 31 57 28 129

10.1 24.0 44.2 21.7 100.0

Figure 4.3: Income per month

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4.11 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 W. G., 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 all 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: 4.4: 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. 4.12 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 4.5 and it suggested that 14 out of 17 variables were found with significantly different opinions about 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, that is why 14 mean plots were prepared for actual measurement of opinion differences.

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Table 4.5: ANOVA (income-wise*Characteristics)

Char 1

Char 2

Char 3

Char 4

Char 5

Char 6

Char 7

Char 8

Char 9

Char 10

Char 11

Char 12

Char 13

Sum of Squares

df

Mean Square

F

Sig.

Between Groups

1.653

3

.551

1.755

.159

Within Groups

39.246

125

.314

Total

40.899

128

Between Groups

4.516

3

1.505

2.344

.076

Within Groups

80.290

125

.642

Total

84.806

128

Between Groups

7.170

3

2.390

3.283

.023

Within Groups

90.986

125

.728

Total

98.155

128

Between Groups

5.057

3

1.686

4.174

.007

Within Groups

50.478

125

.404

Total

55.535

128

Between Groups

8.257

3

2.752

4.454

.005

Within Groups

77.246

125

.618

Total

85.504

128

Between Groups

13.959

3

4.653

7.899

.000

Within Groups

73.638

125

.589

Total

87.597

128

Between Groups

4.064

3

1.355

2.740

.046

Within Groups

61.812

125

.494

Total

65.876

128

Between Groups

26.883

3

8.961

15.004

.000

Within Groups

74.652

125

.597

Total

101.535

128

Between Groups

4.978

3

1.659

2.794

.043

Within Groups

74.246

125

.594

Total

79.225

128

Between Groups

27.809

3

9.270

15.914

.000

Within Groups

72.812

125

.582

Total

100.620

128

Between Groups

18.191

3

6.064

9.935

.000

Within Groups

76.290

125

.610

Total

94.481

128

Between Groups

32.935

3

10.978

14.252

.000

Within Groups

96.290

125

.770

Total

129.225

128

Between Groups

31.705

3

10.568

16.243

.000

Within Groups

81.333

125

.651

Total

113.039

128

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Sixth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP16Thai Conference) ISBN: 978-1-943579-10-5 Bangkok-Thailand. 18-20 February, 2016. Paper ID: T643

Char 14

Char 15

Char 16

Between Groups

15.891

3

5.297

Within Groups

111.333

125

.891

Total

127.225

128

Between Groups

18.436

3

6.145

Within Groups

145.812

125

1.166

Total

164.248

128

Between Groups

54.442

3

18.147

Within Groups

128.551

125

1.028

Total

182.992

128

4.881

3

1.627

Within Groups

133.957

125

1.072

Total

138.837

128

Between Groups Char 17

5.947

.001

5.268

.002

17.646

.000

1.518

.213

4.13 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 4.13 and it suggested that none out 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 reported significantly different, that is why no mean plots were prepared for actual measurement of opinion differences. Table 4.13: ANOVA (Country of origin*Age group)

Country 1

Country 2

Between Groups

Sum of Squares 1.550

df 2

Mean Square .775

Within Groups

161.380

126

1.281

Total Between Groups Within Groups Total

162.930 2.709 129.167 131.876

128 2 126 128

1.355 1.025

F .605

Sig. .548

1.321

.270

4.14 One sample T-test within subjects to examine satisfaction and loyalty of customers Table 4.14 exhibits that the level of satisfaction and loyalty of customer among the customers of mobile phone users. It can be observed that proper after sales service is provided by their handset manufacturers. Customer was also satisfied from the retailer he had bought the handset. Customer also believes that the prices are competitive from where he has bought the hand set. Hand set service provider offers reasonable service fees. Customer is also satisfied from the battery

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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 the table 4.14 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 4.14: One-Sample Test on satisfaction and loyalty Test Value = 0

Satis 1 Satis 2 Satis 3 Satis 4 Satis 5 Loyal 1 Loyal 2 Loyal3

t 45.147 54.125 36.732 41.866 26.283 23.084 39.990 59.360

df 128 128 128 128 128 128 128 128

Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000 .000

Mean Difference 3.039 3.380 3.504 3.078 2.659 2.705 2.984 3.457

95% Confidence Interval of the Difference Lower Upper 2.91 3.17 3.26 3.50 3.32 3.69 2.93 3.22 2.46 2.86 2.47 2.94 2.84 3.13 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 4.15 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 4.15.

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Table 4.15: One-Sample Komlogorov Smirnov test (gender, income group and age group-wise)

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Table 4.16: Summary of Major Hypotheses Tested for this Study (as submitted in proposal) Table 4.46: Summary of hypothesises tested for study Hypothesis No.

Reference

Null Hypotheses

Result

Alternate Hypothesis

Resulted Hypotheses

H 01

Table 4.15 (Char1Char17)

Characteristics of handset does not affect consumer buying behaviour

Alternative hypothesis accepted (1-tailed;sig: 0.000)

H01a

Characteristics of handset does affect consumer buying behaviour

H 02

Table 4.15 (Style1Style5)

Style of handset has no effect on consumer buying behaviour

Alternative hypothesis accepted (1-tailed;sig: 0.000)

H02a

Style of handset has significant effect on consumer buying behaviour

H 03

Table 4.15 (Char1Country2)

There is no significant difference purchasing behaviour according to age

in

Alternative hypothesis accepted (1-tailed;sig: 0.000)

H03a

There is significant difference in purchasing behaviour according to age

H 04

Table 4.15 (Country1Country2)

Country of origin has no effect on buying behaviour

Alternative hypothesis accepted (1-tailed;sig: 0.000)

H04a

Country of origin has positive effect on buying behaviour

H 05

Table 4.15 (Char1Country2)

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

H 06

Table 4.15 (Char1Country2)

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

H 07

Table 4.15 (Char1Country2)

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 After thoroughly analyzing the collected data and examining it through various statistical procedures, the findings of the study are stated below in this section of the study. 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 the all respondents irrespective of their demographic profile and their buying decision was influenced. But least in influenced by the characteristics of the handset were males which were age between 36-45 years. 4. Country of origin was not considered significantly important for the buying decision of the customer. 5. It was found out from the study was that nearly all of the customers from different demographic profile were satisfied from the handset which they used. 6. Internet facility in the handset was most preferred by the respondents of age group 16-25 years 7. Availability of camera in the handset was most preferred characteristics of respondents of age group between 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 for buying of respondents from age group 36-45 years. 11. It was also found in the study that female respondents preferred availability of speaker phone in the handset and considered it as an important factor while making purchase 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 be generalized.

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2. The study was carried out only on wireless telecommunication devices, the study should be carried out on different electronic products so that the results should be generalized. The cross national comparison should also be carried out so that the results could have been generalized. 3. The data collected only covered age group from 16 years to 45 years. The collected responses in following researches should cover all the age groups. 4. The variables which constitute customer satisfaction should be studied thoroughly to enhance understanding of the consumer behaviour. 5.

The study only used the quantitative data to elaborate the hypothesized relationships. More so ever qualitative data should also be used like interviews to understand factors affecting buying behaviour of an individual.

6. The study should also incorporate the influence of family members on buying decision of handset should also be examined.

7. Conclusion Mobile 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 purchase, concentrated seasonality and intensified pricecompetition are among the main factors that contribute to high uncertainty in consumer demand. In addition to all the above factors, situational factors like finance options, dealer terms, falling prices are also important in mobile phone industry. These buying decision of an is governed by individual thinking process(like motivation, perception and attitude), decision-making steps involved in buying(decision making process), interaction of the consumer with several groups like friends, family and colleagues(group-oriented concepts), and selection of the brand and outlet depending on features and emotional appeal (marketing mix elements in a given environment). Consumer gets brand preference only when that brand lives up to his expectation. A marketer should use all means of promoting its product so that an image is created in the minds of customer and is buying decision is affected.

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