Consumer behaviour towards a smartphone purchasing decision in The United Arab Emirates

CONSUMER BEHAVIOUR TOWARDS SMARTPHONE PURCHASING DECISION
IN
UNITED ARAB EMIRATES
DEPARTMENT OF MANAGEMENT
BIRLA INSTITUTE OF TECHNOLOGY

Table of Contents
CHAPTER 1: INTRODUCTION...................................................4
1.1BACKGROUND .........................................................................5
1.2 CURRENT SCENARIO.................................................................5
1.3 SMARTPHONE CHARACTERISTICS ................................................6
1.3 PURPOSE ...............................................................................7
CHAPTER 2: LITERATURE REVIEW ...........................................9
2.2 THE THEORY OF GENDER DIFFERENCE.........................................10
2.3 PURCHASE DECISION-MAKING PROCESS .....................................10
2.4 RESEARCH OBJECTIVE.............................................................10
2.5 METHODOLOGY....................................................................11
CHAPTER 3: DATA ANALYSIS................................................. 13
3.1 PRIMARY DATA.....................................................................13
3.2 SECONDARY DATA.................................................................13
3.3 DEMOGRAPHY ......................................................................14
3.4 OCCUPATION........................................................................15
3.5 EDUCATION..........................................................................19
CHAPTER 4: CONCLUSION..................................................... 25
CHAPTER 5: REFERENCES...................................................... 27

CHAPTER 1
Chapter 1: Introduction

1.1Background
Nowadays, mobile phone, or cell phone, has almost become a necessity product in people’s social
life among the world Smart-phone ownership in the UAE has outstripped the global average by
30 per cent resulting in increased growth opportunities for mobile retail. According to a survey
by research consultancy TNS Global, around 78 per cent of UAE residents own a smart-phone
compared to the global average of 42 per cent. The survey also revealed that nearly 40 per cent
of consumers in the Emirates either own or are looking to own a tablet. (Gulfbusiness.com).
The poll showed 46% of the UAE resident use their mobile phone for instant messaging and
34% use for social networking. (Gulfbusiness.com).The first Smart Phone companies target
users were Business users who has to get connected to the internet everytime to get updated
by emails, time (CFI Group,2009).There are number of factors that need to be taken into
account when exploring mobile phone buying decision process, including both the factors
micro and marco economic conditions that affect the evolution of mobile phone market in
decision making process. As the mobile phone market is a typical technology push driven
market where products are created ahead of the recognition of existing recognized consumer
needs (e.g., Gerstheimer and Lupp, 2004) mobile phone development is based on consumers’
possible future needs and thus companies that best hunch the technologies and services of
future will be the leaders in the discipline (for discussion of technology push see, e.g., Brown,
1991; Hamel and Prahalad, 1991; Kumar, 1997; Nagel, 2003).
1.2 Current Scenario

Smart phones have gained a lot of popularity and are considered to be great tools. Smartphones
are being used for entertainment and due the introduction of new features every day. They have
become more than just call making and receiving calls. Mobile phone handsets now have more
business-friendly applications. With emerging technology, smartphones have become more
than communication devices they are the tools to stay ahead of competitors and peers in the
present times.
1.3 Smartphone Characteristics
Within the mobile phone category, there is a sub class of Smart phones. A Smart phone is a mobile
phone that integrates a feature phone and a mobile computing platform, and the models today even
function such as digital cameras, media players, high-speed data access via Wi-Fi, GPS navigation,
and other applications with option to download application through application market. Typically,
smartphones also comprise web browsers and high-resolution touchscreens, which provide people
better viewing and browsing experience. In its simplest form, a smartphone is a mobile phone with
built-in, add-on applications and Internet (4G network) access. However, because of its capability
to handle a great amount of applications and functions at the same time the concept of a smartphone
slowly transitioned into definitions of a computer. The smartphone becomes more than a device
for sending and receiving text sms and calls as it consists of various methods to interact with others
in a more personalized way, compared to the traditional mobile phones. One of the significant
differences between a feature phone and a smartphone is that a smartphone can install third-party
applications from applications store. Users are able to download and install application on their
operating systems. Generally a Smartphone is based on a certain operating system that allows
phone users to install applications on it. Systems include Apple’s iOS, Google’s Android,
Microsoft’s Windows Phone etc. These applications must work together seamlessly and with the

features of the phone. For example, pictures taken with the camera can be linked to the address
book so that users can see who is calling. Navigation software uses addresses stored in the address
book in combination with GPS data to facilitate data entry.
1.3 Purpose
The purpose of this paper is to investigate smart phone purchase behaviour preferences among
youth and resident in United Arab Emirates of particular interest is the issue of gender differences
regarding the behavioral aspects of the cell phones.

Chapter 2: Literature review
The literature review provides us the previous knowledge about all these theories that related
to our study and theory of gender differences, consumer purchase decision-making process, and
Consumer choice behavior has some important prevailing conditions that must be taken into
account while studying choice. In the light of the classical problem solving buying behavior,
consumers engage in information search before making the actual choice. We limit our analysis in
this paper to consumer choice that can range from choice oriented referring to a decision on which
alternative to purchase from a set of alternatives, whether or not to purchase, or whether to
purchase now or later to value oriented choice (Shuv and Huber, 2000). The younger the consumer
the more hedonistic features consumers tend to value in mobile phones (Wilska, 2003). The
research showed that addictive use was common among females and was related to trendy and
impulsive consumption styles. Instead, males were found to have more technology enthusiasm and
trend-consciousness. Price of the phone has been identified as a critical factor in the choice of the
mobile phone model, especially among younger people (Karjaluoto et al., 2003a; Karjaluoto et al.,
2003b) Features like touchscreen functionality, and location-based services remain in demand and
software application installation, full programmability, multimedia Presentation, high-resolution
displays and numerous operation system continue to play a significant role in fulfill the satisfaction
of the consumer. In a survey revealed by BDS Marketing in 2012, statistics showed that 26 percent
of smartphone buyers purchased a different brand of phone originally intended to purchase once
at the store. Sean Wargo, Sr. Director of Business Intelligence for BDS says: “Sales and
promotions in the store do have an impact, but so does the associate, making them a key component
of the selling process and an important target for in-Store marketing efforts.”

2.2 The theory of gender difference
There is one popular topics has been brought out recently, which focus on gender difference
in influence ablity. Even though the research regarding this topic is limited, it shows that the
male and female have different abilities to influence others and these differences relates to
gender differences in power. (Carli, 1999)
2.3 Purchase decision-making process
Understanding consumers purchase decision-making process allows marketers to gain more
knowledge about their consumers. Moreover, it can be a foundation for them to create more
suitable marketing strategies for their target consumers. If marketers understand the process of
their consumers, they will know how their consumers search for information before buying,
which criteria can encourage them to buy, and what factors influence their purchase decision-
making. (Solomon et al., 2010).
2.4 Research Objective
Drawn from the issues, the purpose of this study is to better understand the current dynamics of
the UAE demand market for smartphone and the consumer purchasing decision. This study has
looked into the familiarity of users towards smartphones, choices of smartphone brand and service
providers and most importantly the determinants that influence their purchasing decision.

Additionally, the consumer’s preferences on smartphone specifications such as design, computing
power, operating platform, and price were investigated.
Specifically, the purpose of this study can be listed as below:
i. To understand the level of influence of price towards consumer decision making
in purchasing smartphone
ii. To understand the impact of different brand name towards consumers decision making
in purchasing smartphone
2.5 Methodology
 The participants of the study are undergraduate and post graduates students from a
university located in Ral Al Khaimah, UAE as well as from the Resident of UAE. The
technique used for data collection was questionnaire. The demographic aspects
included age, gender, education, occupation, and income.
 In addition to the Secondary research. Primary data was also collected from young
students as well as working age group between (15-30) years were considered as the
respondents of this study and articles published on newspapers, magazines and industry
report and from World Wide Web

Chapter 3: Data Analysis
3.1 Primary Data
Primary data is that data which is collected for the first time. It is original in nature in the shape of
raw material. For the purpose of collection of primary data, a well-structured questionnaire was
framed which was filled by the respondents. The questionnaire comprises of close
ended as well as open ended questions.
3.2 Secondary Data
Secondary data is the data which is already collected by someone. They are secondary in nature
and are in shape of finished product. Secondary data was collected so as to have accurate results.
Required data was collected from various books, magazines, journals and internet
This chapter is data analysis, in this chapter the data collected through online questionnaires was
analyzed. As the primary research method was survey, Questionnaires was distributed among
people via email and Facebook. This chapter will first show the sample and analyse the targeted
sample. Then according to research objectives the finding was discussed and analyzed.

3.3 Demography
The total targeted sample consisted of 50 people in which 50 of them used smartphone. The
result shows that out of the 50 people most of them were students the highest majority of
respondents were of age 21-25
Table (1) showing percent of age group
As shown in the diagram most of the age group are between 21-25 from the sample provided
The second highest and third highest respondents were age 15-20-30 and 31-25.
0
5
10
15
20
25
30
15-20 21-25 26-30 31-35
AGE DISTRIBUTION

3.4 Occupation
Table (2) showing percent of occupation of respondents
According to the table (2) the maximum numbers of respondents were students followed by
salaried and self-employed
Consumer’s attitude toward owning and level of satisfaction from smartphone
Table (3) showing respondent’s satisfaction with their smartphone
0
5
10
15
20
25
30
35
40
45
50
salaried self employed student
OCCUPATION
occupation
10%
90%
Customer satisfaction with Smartphone(%)
No
Yes

This question was to identify the satisfaction of respondents with their smartphone. According to
table (3) 90% said that they are satisfied with their smartphone and 10% said that they are not
satisfied with their smartphones. This data helps in analysing the satisfaction level of consumers
from smartphone, as maximum respondents using a smartphone are satisfied with their product.
Do you think you would be buying a smartphone in near future?
Table (4) showing respondents plan to buy a smartphone in future
This question was to identify that those people who are not using smartphone currently, are they
planning to buy a smartphone or not. So in this table (4) we see that out of that 50 respondents
45% plans to buy a smartphone in near future and 18% do not want to buy a smartphone and
37% did not answer. This result clarifies that maximum number of people are looking forward to
buy a smartphone in future.
45%
18%
37%
Would you buy a smart phone in future?
(%)
Yes
No
No answer

Which brand of Smartphone did you purchase last time?
According to the table (5) shows that, they have people mostly prefer Samsung and secondly
comes Apple followed by Sony, HTC and rest of the others.
Based on your own experience, which brand you like the most?
Table (6) shows the percentage of brand preference in future
13
1 1
4
19
5
1 1 1 1 2
0
5
10
15
20
RECENT MOST SMART PHONE BRAND
PURCHASED
recent most smart phone brand purchased
30.6122449
2.040816
2.040816
2.040816
2.040816
6.12244898
2.040816
2.040816
2.040816
36.73469388
8.163265306
2.040816
2.040816
0 5 10 15 20 25 30 35 40
Apple
Asus
Blackberry
Google
Google nexus
HTC
huawei
lenovo
nokia
samsung
sony
xolo
no response
Brand preference according to experience(%)
brand preference according to experience(%)

This table shows that people still prefer Samsung compare to Apple, Sony and HTC, where
Samsung cover the 36.734 % of the total share and apple has 30.612% share market and after these
two big companies Sony and HTC has also entered into the market with less market share.
How much are you willing to pay for a smartphone?
Table (7) shows that how much they are willing to pay for a smartphone
This question was asked to identify as how much people are willing to pay to purchase a
smartphone this question also helps in understanding as which range of smartphone have high
sales. 23 % people prefer to pay between 1000-1500AED and 25% of people are willing to pay
between 1500-2000AED and 2000-2500AED, 8% of people is willing to pay between 2500-
3000AED and 19% are willing to pay more than 3000AED. This result shows that most of the
students are willing to pay between 1000-2500AED for the smartphone.
23%
25%
25%
8%
19%
Amount willing to be paid on a smart phone
1000-1500 AED 1500-2000 AED 2000-2500 AED 2500-3000 3000 & ABOVE

3.5 Education
Table (8) Student Qualification
Out of 50 sample survey, 27 of the students are in their graduation and 16 students are in their post-
graduation followed by diploma and others. This results shows that most of the students where under-
graduation.
Would you like to switch to another brand with additional features?
Table (9) shows respondents view on switching brands
0
5
10
15
20
25
30
Diploma Graduation Others Post Graduation
2
27
3
16
EDUCATION
Education
22
22.5
23
23.5
24
24.5
25
25.5
Yes No
switch over to a new brand with additional
features
switch over to a new brand with
additional features

This question was to identify as do the smartphone users want to switch their smartphone brand
with another with additional or new features as new brands are launching new and improved
smartphone and some improved features differs from brand to brand . This result it clarifies
that most people will switch their smartphone brand in order to get new features with different
brand.
Influence of the following factors 1 –Strongly Non-Influential 5- Strong Influential
Table (10). Influence of the following factor
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Average Score
BUYING BEHAVIOUR
Family and Friend Price Brand
Advertisment After Sales and Service Promotion and Offers
Brand Loyality Features Design And Shape

Price Friend&
Family
Brand Advertisment Sales
after
Service
Promotion Brand
Loyality
Features Shape
and
Size
Sum 153 165 195 144 179 170 166 198 189
Average
Total
3.06 3.3 3.9 2.88 3.58 3.4 3.32 3.96 3.78
Rank 8 7 2 9 4 5 6 1 3
Table (11). Influence of the following factor
In the above table (10), (11) shows that the people mostly want features as per the ranking of
the following is given depending on the average total. Rank 1 is given to the feature since most
of the student wants features in their Smartphone, followed by the Brand etc advertisement is
the least factor in the following.

Table (12).Opinion on their Smart Phones
Opinion in the following statements. 1- Strongly Non Influential 5- Strongly
Influential
My
Smartphone
brand is more
than
product(6.1)
I will switch
to another
brand (6.2)
I would
recommend
brand to my
friends (6.3)
I consider
myself to be
loyal to
brand (6.4)
The quality of my
smartphone is
good(6.5)
Total score 164 144 168 152 156
Average Score 3.28 2.88 3.36 3.04 3.12
Rank 2 5 1 4 3
2.6
2.7
2.8
2.9
3
3.1
3.2
3.3
3.4
Average score
OPINION ON SMARTPHONE
6.1 6.2 6.3 6.4 6.5

According to the average Score and the Rank provided to the these statement shows that most of
the people recommend the brand to friends which plays a vital role in purchase of the smart phone
in students followed by the Rank-2 shows that Smartphone is more than product to them and the
quality of the smartphone is good is rank 3and the least factor is switching to another brand which
is not so important for the student.

CHAPTER 4: CONCLUSION
The objective of this research was to investigate the underlying factors that determine the decision
to purchase mobile phone devices. According to the study, majority of the consumers own
Samsung smartphones followed by Apple. Features is the dominant factor affecting the decision
to buy smartphone. Secondly, brand plays a major role which is considered by the consumers while
purchasing the mobile phone. Thirdly, Shape and Size of the smartphone followed by sales after
service in the fourth rank and promotions and offers are rated in the fifth rank then brand loyalty ,
family and friends, price is least important to the consumers for buying smartphones
In the survey results most of the student purchase their smartphones by recommendation from their
friends which has been ranked first and secondly, as per the result their smartphone is more than a
product and the most of the students are happy with their smart phones quality which has been
ranked third, least important has been seen in brand loyalty and switching to another brand. In the
end the company has to look for more features to capture the youth market in United Arab Emirates
which will benefit the company in this region. Company should look to go beyond the average
shopping experience and use mobile to deliver an improved experience that inspires, while saving
time and money. UAE consumers are more likely to be influenced by brand and quality rather than
price, and the most popular brand in the country is Samsung with 55 per cent of sales, followed
by Apple with 40 per cent and followed by HTC, Sony which is also giving a good competition to
these leading brands. Branding is also very important when it comes to smartphone purchases.

CHAPTER 5: REFERENCES
 http://gulfbusiness.com/2013/11/uae-smartphone-usage-drives-mobile-retail-
growth/#.VPdk7fmUdGY
 http://www.mcser.org/journal/index.php/mjss/article/viewFile/1787/1791
 https://www.academia.edu/7004890/Factor_affecting_consumers_buying_intention_of_s
martphones
 http://www.tradearabia.com/news/IT_239251.html
 http://www.iosrjournals.org/iosr-jbm/papers/Vol16-issue5/Version-3/L016537378.pdf

Consumer behaviour towards a smartphone purchasing decision in The United Arab Emirates

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