Doradiana,+A7 Influence+Consumer 109+-+124
Doradiana,+A7 Influence+Consumer 109+-+124
Doradiana,+A7 Influence+Consumer 109+-+124
ABSTRACT
PROBLEM STATEMENT
Keywords: consumer purchase,
mobile phone, teenagers
If we look at the current era of globalization,
we can see that technology has become an
important part of our daily lives. Most people
are increasingly dependent on technology.
This is because all the information we want is at
our fingertips. As the saying goes ‘the world is
at your fingertips’ is dominant nowadays. From use while using mobile phones. Besides, the
desktops to laptops, technology is increasingly survey also shows that there is 43.5 per cent of
minimized for mobile phones. Mobile the total mobile phone users are female while
phones are one of the most advanced tools the other 56.5 per cent are male mobile phone
in finding information and communication users. Although males are more likely to own
tool technologies that allow users or the a mobile phone than females, however, the
public to find information easily and connect brand gave more impact on females (Lim et al.,
and transfer information easily around the 2013).
world. The mobile phone industry has grown
rapidly in the country since 1983. Since then, Therefore, this research aims to study
there have been many large mobile phone what are the factors that influence consumer
companies ‘stepping foot into the industry. purchase decisions in choosing mobile phones
Due to the entry of many mobile phone among teenagers.
companies, many mobile phone brands have
been introduced to the market in Malaysia, RESEARCH QUESTIONS
which is Apple, Samsung, Lenovo, Huawei, and
many more. Therefore, this research aims to The overall research question is “what are the
study the purchase intentions of consumers factors that influence consumer purchase
towards the mobile phone. decisions in choosing mobile phones among
teenagers?” The specific research questions are
Mobile phone penetration in Malaysia as follows:
has increased in the year 2012 from 47 per cent (a) Did the brand influence consumer
to 63 per cent (The Sun Daily, 2013). Nowadays, purchase decision in choosing mobile
consumers pay more attention to the brand phones among teenagers?
while choosing mobile phones (Knapman, (b) Did the price influence consumer
2012). Between these two brands namely purchase decision in choosing mobile
Apple and Samsung it acquires or achieves phones among teenagers?
the highest marketing in the market. Most of (c) Did the features of the product influence
the largest mobile phone manufacturers have consumer purchase decision in choosing
received threats from Chinese mobile phone mobile phones among teenagers?
companies. This is said to be so because this (d) Does a social factor have a positive
mobile phone maker from China imitates the influence on the consumers’ mobile
results of the manufacture of well-known phone buying decisions among
mobile phones such as Apple and Samsung teenagers?
(The Star, 2012).
RESEARCH OBJECTIVE
A survey was made by the Malaysian
Communications and Multimedia Commission The overall research objective is to identify
in 2012. This is said to be so because to the factors that influence consumer purchase
determine the use of mobile phones in Malaysia. decisions in choosing mobile phones among
The survey result came out with a statistic of teenagers. The specific research objectives are
young adults aged 15 to 29 owning a mobile as follows:
phone stand 44.5 per cent among the other (a) To identify how the brand can influence
age brackets (Malaysian Communications and consumers’ purchase decisions of
Multimedia Commission, 2012). Young adults mobile phones.
are more inclined to new technological features (b) To identify how a price can influence
and innovations that emphasize the speed of teenagers’ to purchase mobile phones.
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Factors that Influence Consumer Purchase Decision in Choosing Mobile Phones among Teenagers
METHODOLOGY
METHODOLOGY
Research Framework
Research Framework
Figure 1 Factors
Figure thatthat
1 Factors influence consumer’s
influence consumer’spurchasing
purchasingdecisions in choosing
decisions in choosingmobile
mobile phones
phones
Figure 1 shows the factors that influence consumer’s purchasing decisions in choosing
Figure
mobile1 shows
phones.the It factors that influence
is to identify RESEARCHvariables
what the four independent DESIGNare, which are brand,
consumer’s
price,purchasing decisions inand
product characteristics, choosing
social influence. Meanwhile, the dependent variable which
mobile isphones.
the influence
It is oftoconsumer
identify purchase
what the decision inThechoosing
researchmobile phone
design is aamong teenagers.
data analysis method
In conducting the study,
four independent variables are, which arewe targeted respondents among teenagers ranging in age
that is based on the idea of constructing from 13 a
years to 19 years and above
brand, price, product characteristics, and and we used the method by distributing questionnaires
network of interactions between the variables in the
form of Google form to obtain information related to the topic of study and we also used the
social influence. Meanwhile,
interview method. the dependent in the study. The study design is determined
variable which is the influence of consumer by how data is collected and assessed in order
purchase decision in choosing mobile phone RESEARCH DESIGN to gain information by integrating relevance
among Theteenagers.
research In conducting
design is a datathe study,method that
analysis withis the
basedresearch’s
on the ideaobjective. This astudy’s
of constructing
we targeted respondents among teenagers quantitative research
network of interactions between the variables in the study. The study design is determined method is based
by on
ranginghow
in age
datafrom 13 years
is collected andtoassessed
19 yearsin and
order to gainrepresentation
information by and often relevance
integrating includes with statistical
the we
above and research's
used the objective.
methodThis study's quantitative analysis
by distributing research method is basedthe
to quantify on facts
representation
and provide
and ofteninincludes
questionnaires the formstatistical analysisform
of Google to quantify the facts and proof.
convincing provideIt convincing proof. data
is used to collect It is from
used to collect data from respondents
to obtain information related to the topic of in order to determine the cause-and-effect relationship
respondents in order to determine the cause-
between two variables. As a result, it is appropriate for use in this study.
study and we also used the interview method. and-effect relationship between two variables.
Sampling As a result, it is appropriate for use in this study.
A target population is a group of people polled in order to conduct research and make
findings in a study. The study's target population will only include persons aged 13 to 19 who
have purchasing power when it comes to choosing a mobile phone. The targeted sample is a
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Factors that Influence Consumer Purchase Decision in Choosing Mobile Phones among Teenagers
Factor Analysis
Table 1 Total variance explained
Initial Eigenvalues Rotation Sums of Squared Loadings
Cumulative
Component Total % of Variance Cumulative % Total % of Variance %
1 7.219 30.079 30.079 4.945 20.605 20.605
2 2.617 10.905 40.984 3.642 15.176 35.781
3 2.447 10.194 51.178 2.404 10.017 45.797
4 1.678 6.990 58.169 2.135 8.895 54.693
5 1.336 5.567 63.735 1.848 7.699 62.392
6 1.198 4.992 68.727 1.520 6.335 68.727
7 .969 4.037 72.764
8 .950 3.959 76.723
9 .856 3.568 80.291
10 .729 3.038 83.329
11 .628 2.619 85.947
12 .453 1.888 87.835
13 .407 1.697 89.532
14 .403 1.678 91.209
15 .364 1.515 92.725
16 .320 1.335 94.060
17 .280 1.166 95.226
18 .214 .891 96.118
19 .211 .880 96.998
20 .195 .814 97.812
21 .161 .669 98.481
22 .155 .646 99.126
23 .137 .573 99.699
24 .072 .301 100.000
Extraction Method: Principal Component Analysis.
Table 1 shows the total variance there are 8 components and all 8 components
explained by each component identified can explain the percentage of the variance in
from the responses by the respondent. Since explains in the questionnaire.
the eigenvalue set as 1, any component as
an eigenvalue of 1 and above shows the Cronbach Alpha
component in the questionnaire is able to
explain the changes in the variance. There are Table 2 Reliability statistics
6 components that have an eigenvalue of 1
Cronbach’s Alpha N of Items
and above. Therefore, there are 6 components.
.736 5
Component 1 explains 20.6 per cent,
component 2 shows an explanation of 15.2
per cent, component 3 explains 10.0 per cent Table 2 reliability statistics shows the
of the variance, component 4 explains 8.89 per Cronbach Alpha. The questionnaire was
cent, component 5 explains 7.69 per cent, and initially left to 74 respondents for its reliability
component 6 respectively can be explains 6.33 in measuring the objectives of the study. The
percentage of the variance. So the conclusion is study showed that the Cronbach Alpha result
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is 0.736. The value of the Cronbach Alpha Section A showing the demographics of the
approach is greater than 5. Therefore it can respondents. The questionnaires contained in
be concluded that the questionnaire is an the questions of Part A are such as gender, age,
instrument that can be used to measure or race, and level of education.
answer the objectives of this study.
Regression Analysis
METHOD OF ANALYSIS
One method for determining the effects of two
This study collected two types of information or more variables is regression analysis. Certain
data: primary data and secondary data. Primary components are referred to as variables in this
data is information obtained directly from a regression study, while others are referred to
direct source, such as surveys, experiments, as independent variables. Using this method,
and observations. Documentaries, surveys, the relationship between four independent
and other sources are all sources of secondary variables is investigated: brand, product
data. Documentary data is required for research quality, pricing concerns, and social influence.
investigations in written material that collects An example of a regression analysis
information from books, journals, magazine equation is as follows:
articles, and other sources to support research
studies as references. Y= a+β1 X1 + β2 X2 + β3 X3+ β4 X4
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Factors that Influence Consumer Purchase Decision in Choosing Mobile Phones among Teenagers
Malay 15 20.3
In Table 6 shows the education level of
Chinese 1 1.4
the respondents, the respondents’ education
Bumiputera Sabah 56 75.7
level is under four different level. There are a
Bumiputera Sarawak 2 2.7
total of 74 respondents for education level.
Total 74 100.0
The first group is secondary school, which are
9.5 per cent or 7 respondents. Second category
Table 4 presents the race of the for education level is diploma, with only 19
respondent. There are 4 different races which respondents or 25.7 per cent. Third category
is Malay, Chinese, Bumiputera Sabah and is degree for education level which recorded
Bumiputera Sarawak. The total of participants 44 respondents or 59.5 per cent and lastly,
in the survey is 74. Based on the table above, 56 employed which recorded 4 respondents or
respondents or 75.7 per cent are Bumiputera 5.4 per cent of total respondents.
Sabah. Meanwhile, there are 15 respondents
or 20.3 per cent are Malay. Next is, Bumiputera Regression Result
Sarawak there are only 2 respondents or 2.7 per
cent. Finally, only 1 Chinese respondent or 1.4 Table 7 Model summary of the regression
per cent were the respondents of this study.
Adjusted R Std. Error of
Model R R Square
Square the Estimate
Table 5 Age
Frequency Per cent 1 .698a .487 .457 .46439
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Table 8 ANOVAa
Model Sum of Squares df Mean Square F Sig.
Table 8 shows the stability of the model used in ANOVA table. The estimated of F value is 16.357
with the significance level of (Sig=0.00). Thus it can be conclude that the overall regression model
with the 4 factors which is brand, product features, price concern and social influence are stable or
normally distributed and can be used for prediction.
Table 9 Coefficientsa
Model Unstandardized Coefficients Standardized Coefficients
B Std. Error Beta t Sig.
1 (Constant) .796 .432 1.845 .069
Brand .125 .095 .166 1.312 .194
ProductFeatures .469 .140 .480 3.343 .001
PriceConcern .098 .102 .104 .965 .338
SocialInfluence .182 .104 .155 1.749 .085
Source: Developed for research
a. Dependent Variable: InfluenceConsumer
Table 9 shows the regression result. relationship between product features and the
As discussed earlier, the dependant variable purchase decision.
is influence consumers purchase decision
in choosing mobile phone meanwhile the The estimated of t value of the price
independent variables are brand, product concern is 0.965 with the significant of
features, price concern and social influence. 0.338, this means hypothesis C is accepted
The estimated t value of brand is 1.312 with and the particular variable is insignificant
the significant of 0.69, this means hypothesis in explaining purchase decision and the
A is accepted and the particular variable is significant level is 0.05 per cent. The Beta
insignificant in explaining purchase decision coefficient is 0.098 this means that there is
and 5 per cent significant level. The Beta a negative relationship between the price
coefficients is 0.125 this means that there is a concern and the purchase decision.
negative relationship between brand and the
purchase decision. The estimated of t value of social
influence is 1.749 with the significant of
The estimated of t value of the product 0.085, this means hypothesis D is accepted
features is 3.342 with the significant of 0.01, and the particular variable is insignificant
this means hypothesis B is accepted with in explaining purchase decision and the
the significant is 0.05 per cent. Which means significant level is 0.05 per cent. The Beta
product features is able to explain the changes coefficient is 0.182 this means that there
in purchase decision. The Beta coefficient is a negative relationship between social
is 0.469 this means that there is a positive influence and the purchase decision.
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When branded products are intentionally traits, and people become social by their
exhibited or specifically shown to others to personality traits. Basis for determining
make them aware of the power and wealth consumer behavior. It studies that women are
of the user, we can speak of conspicuous more lively, enthusiastic and interested in the
consumption. This means that the display fashion industry and new brand launches than
of your wealth through the consumption of men. Women enjoy showing and displaying
different brands just to show the high status their wealth, power and status. In Pakistan,
is a conspicuous consumption and it is a women wear their branded clothing to make
very important dimension of the consumer others aware of their high status, which is why
behavior to influence your behavior towards people behave differently towards different
brands and also the impact and power of the brands depending on their gender.
brand influence and shape.
The Relationship Between Product Features
Brands are mainly used by wealthy and Consumer Purchase Decision
women to show their wealth and status to the
upper class. Due to the increasing number of Product features nowadays, there are many
brands and fashion, it is a trend in Pakistan high-tech functions of smartphones on the
that if you are rich you cannot buy unbranded market, so different people choose different
products. It is further argued that status use smartphone functions to suit their needs and
and conspicuous use are related and that desires. According to Oulasvirta et al. (2011),
status use is the reason for conspicuous use. smartphones today are equipped with wireless
Consumers need to have brand awareness. connectivity, an integrated web browser,
It essentially encompasses brand awareness application installation, full programmability,
and information or brand image in the minds a file management system, multimedia
of consumers. Knowing about brands helps presentation and capture, high-resolution
consumers remember them easily and creates displays, several gigabytes of storage and
a positive image of the brand in the minds location, and motion sensors. Consumers more
of consumers. The brand image leads to the preferred by, such as camera, color screen,
creation of a brand image in the mind of the voice-activated dialing, internet surfing, and
consumer that helps with future purchases of wireless connectivity (Ling et al., 2006).
the same product.
Based on a study by a similar researcher,
The brand image is basically the respondents say that most college students
consumer’s association and attachment to the prefer to buy a cell phone because of its
brand. When you think about it, branding is appearance, size, and menu structure. Product
how you think about the look and feel of the properties can be defined as those properties
brand and how it is used. On the other hand, of a product that can satisfy the consumer
the relationship of consumers with brands has (Kotler & Armstrong, 2007). According to Lim
a significant impact on consumer behavior, the et al (2013), hardware is the surface of the
relationship with brands is built through the device that can be physically touched, such
trust and satisfaction that the brand offers to as smartphone body, size, weight, colors. Well
consumers, and the satisfaction and trust lead design the software now includes computer
to brand loyalty. Concept of branding, the bond programs, procedures and documentation.
and association with the brand is necessary as
these are the variables that influence current In addition, the operating platform,
and future prices of consumers. It is said that storage, or application can also be classified as
consumer behavior towards branded products software. There are different types of operating
or services by age, gender, and personality software such as iOS, Android, Windows,
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Factors that Influence Consumer Purchase Decision in Choosing Mobile Phones among Teenagers
RIM Blackberry, Symbian, Bada and Maemo. the price of the phone. This also shows that
Hardware and software can be classified as the low-income group has a price limit which
product characteristics. In previous research causes their choice in choosing a phone is
by Russell (2012), consumers in Malaysia limited. Young people who have jobs are very
mainly prefer Android with 41%, followed by fond of new technology, but they will compare
IOS with 18%, RIM Blackberry and Windows the phone with a cheaper price when they’re
registered the same with 6%. Users from other buying a new phone, but the phone must
countries such as Singapore, Australia, New meet their tastes or desires. When buying a
Zealand, Thailand and Vietnam they mainly new phone there are consumers looking for
use the Android operating system. As already a phone that offers a discount. Most of them
mentioned by Lim et al. (2013), 31% of users are lower and middle-income groups. This
prefer software over hardware, only 17.6%. also shows that the price has influenced the
consumer’s purchase decision.
The Relationship Between Price and
Consumer Purchase Decision The Relationship Between Social Influence
and Consumer Purchase Decision
Price is a value for a product or service. A
buying decision is a process in which the The definition of social influence is the process
consumer will identify what is needed, list and of change of an individual in terms of attitudes,
generate options and finally, make a purchase beliefs or behaviors changes occur due to the
decision after considering a number of things presence or actions of others. According to the
that are influenced by other factors. Based on analysis, social influence positively influences
the analysis, price positively influences the the consumer decision making in buying
consumer decision making in buying mobile mobile phones. Consumer buying decisions
phones. According to Heikki and Jari (2005) are influenced by social factors that consist of
also created a similar study in Finland. The family, friends, social roles and status (Kotler
study is about the consumer choice criteria and Armstrong, 2010). Family is one of the
in mobile phone markets by studying factors significant influences in consumer purchasing.
that influence intention to buy a new mobile The family shapes a person’s attitude and
phone on one hand and factors that influence behavior. The upbringing and teachings
on mobile phone change on the other. The from the parents have an impact on a person
study found that price is a crucial factor in in making the decision to buy a phone. An
consumers’ phone purchase decisions. Phone individual is very careful in terms of quality
prices in Finland are very expensive due to and cheap price in buying a phone because of
the country’s regulations as they must pay the the teachings of the family. However, children
phone operator and there are no discounts. The can also influence parents in phone purchase
results of their study found that young people decisions. In this era, children know more about
or students only buy phones at cheap prices. the development of technologies, especially
in the telephone. Because of this knowledge
Based on Bishal Nagarkoti (2009), children can advise or give recommendations
Consumers who consider price in phone when their parents buy a phone. This shows
purchase decisions are influenced by income the influence of the child to the parents in the
levels or economic circumstances. Price is a purchase of the telephone.
factor that influences the purchase decision of
the phone by the consumer. Consumers who In addition, friends are also able to
are low-income will make price one of their influence the decision to buy a phone. According
considerations to buy a phone. Meanwhile, to Bishal Nagarkoti (2009), consumers trust
people with high incomes do not care about recommendations from friends to buy a phone.
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Some users do not know which phone is best camera resolution, a faster and more responsive
for them to use. Friends play an important role operating system, a smarter and lighter
in this with the knowledge he has, he explains design, and any other innovative software
the advantages of the phone and why he uses and hardware improvements. Smartphone
it. The friend will give the user the opportunity manufacturers may be able to boost sales and
to use his phone. When they get a good profits by incorporating more features into
impression, this will influence the user in the their products and providing what customers
phone purchase decision. want. Businesses must constantly improve
their quality through increased technology to
Social status has also influenced ensure that their products do not lag behind
consumers in making mobile phone purchase competitors. Furthermore, the company must
decisions. Social status is a person’s place or constantly innovate and grow. For example,
position in a social group, in relation to other Apple brand marketers can maintain the
groups in the larger group. For people who quality of their products and create many new
are from the upper and middle classes they products in the future. It also has the potential
buy goods or mobile phones to maintain to boost consumer loyalty to the Apple brand.
their social status. For example, the upper and Furthermore, Apple may reduce the price
middle class buy well -known phones, which of the iPhone in the future to make it more
have high brands no matter the price like accessible. Marketers, for example, may lower
Apple Iphone products, by buying the latest prices to entice students to buy a MacBook or
Iphone shows they are in high status where iPad for their studies.
they can afford expensive phones or goods to
society. Their buying decisions or behaviors The second factor to consider, according
are influenced to maintain their position as a to the report, is convenience. Smartphone users
high-income group. Meanwhile, the middle purchase devices for the sake of convenience.
and lower class, decide to buy a phone only Users can complete tasks more quickly with
based on a reasonable price or cheap. They a smartphone, and they don’t need to bring
buy goods for survival not for luxury and show a laptop because a smartphone can perform
high status with expensive goods. all of the functions of a laptop. Smartphone
manufacturers can concentrate on making
CONCLUSION smartphone usage more convenient for
customers by offering longer battery life and
Several managerial implications and slightly larger screen size, allowing people to
suggestions of the researcher are presented carry their phones with them wherever they go.
based on the study’s findings of factors
influencing mobile phone purchasing The third factor to consider when
behaviour among teenagers, which may be purchasing a smartphone is the brand. The
useful for companies’ future efforts to increase smartphone manufacturer must have a
smartphone sales. With so many options in the strong brand reputation, which can be built
smartphone market in the near future, suppliers by innovating and being a market pioneer,
should use them to meet the variables that or by providing a unique selling proposition.
influence customers’ purchase decisions. Other factors, such as excellent customer
service, social responsibility, and so on, maybe
The majority of smartphone users, important to consider in addition to the
according to the study, place a high value on smartphone device itself. Users place more
product features. Smartphone manufacturers trust in a brand that is well-known and strong
should conduct market research to determine all over the world. Following dependency,
what features customers want, such as higher the findings show that reliance influences
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Factors that Influence Consumer Purchase Decision in Choosing Mobile Phones among Teenagers
purchase decisions and that certain users may the company’s pricing strategy should not be a
become overly reliant on their smartphones to top priority. The cost of a smartphone will be
the point of anxiety when they are unavailable. less important to users, and it will be the last
consideration. It implies that if a smartphone
It is, however, not the most important manufacturer can deliver a smartphone with
factor to consider when making a purchase. exceptional product features at a higher
A smartphone manufacturer can create price, consumers will still buy it. Smartphone
something new that customers will trust providers should not place a high value on
to improve. Alarms, maps, paperwork, and pricing techniques such as psychological
contact lists are just a few of the modern pricing because their impact is minor.
features that keep customers glued to their
smartphones. Students and the working Lastly, the suggestion for marketing
class, for example, rely heavily on paperwork, action is, we hope that when we choose a
whereas drivers rely heavily on maps while smartphone, the marketing staff can provide
driving. Mobile phones company should be details about the phone we choose by telling
able to improve the quality of their product the pros and cons of the mobile phone. This
features and innovation, particularly in can help the buyer to know the inside of the
hardware and software, as well as aim to phone in more detail. Also, marketers can
increase brand recognition by providing introduce the performance of mobile phones
distinct characteristics that distinguish one in detail such as fast or slow charging or slow
brand from another. phone. Even though we do not know much
about cell phones, we still have to know. We
Users’ purchasing decisions are think the marketers need to work hard to
influenced by social influence, which includes attract customers, for me, marketers have
friends, family, and people in their immediate to explain their product (smartphone) very
vicinity. It also has a weaker influence on clearly to make sure people easily understand.
purchasing decisions when compared to
the other variables examined in this study. In conclusion, take action to ensure
Smartphone manufacturers should strengthen that they can promote in other ways to make
their social connections with their target someone able to recognize the smartphone
market, which will lead to positive word-of- brands. For example, promoting through
mouth. Smartphone manufacturers must be social media such as Facebook, Instagram,
able to improve overall quality, which includes Youtube and various types of media platforms.
product quality, packaging, and marketing, Moreover, when buyers buy a phone brand
to improve perceived quality. Understanding that marketers sell, they need to give a gift and
consumer perspectives can help with product a reasonable price with the technology used
development. Consumer attitudes must be to produce mobile phones.
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