factors affecting consumers’ choice of mobile phone selection in pakistan
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in PakistanTRANSCRIPT
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
ABSTRACT
Mobile phones during the past few years have become one of the most important
consumer accessory item and is perhaps one of the most dynamic industry in terms of
competition and change. This study discusses the factors that affect/motivate Pakistani
consumers in their mobile phone choice decision. The purpose of the study was to
identify different factors/features that consumers value in their mobile phones and then
analyze as to which factor according to them is the most important and to study the
effects of demographic differences on preferences of people belonging to diverse
demographic groups. For this particular study four important factors i.e. price, size/shape,
new technology features, brand name were selected and were analyzed through the use of
questionnaire in registering consumers’ perception of these factors. From the analysis it is
clear that consumers value new technology features as the most important variable
amongst all and it also acts as a motivational force that influences them to go for a new
handset purchase decision. The study also discusses that when selecting between
different mobile phone handsets consumers prefer well known brands instead of non
familiar brands or Chinese handsets. The study also shows that price does affect
consumers’ choice for a mobile phone but becomes less important of a factor as we move
from low monthly income to higher income earning consumers. From the study it is clear
that consumers in Pakistan are well aware of the new technology trends in the mobile
phone industry and are techno savvy. The study also reveals that male respondents were
more interested in the new technological developments in the mobile phone industry as
compared to female respondents. The study provides several recommendations for the
mobile phone manufacturers operating in Pakistan and since the smart phone era has just
begun a better understanding of consumer’s insights and preferences is needed in order to
achieve and maintain competitive edge over rivals.
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
DEDICATION
Learning is a process that can be divided into three components i.e. understanding, retention and application. The process of learning is complete only when an individual not only comprehends what he learned but more importantly is able to apply it in practical. It is through report writing a student of a particular discipline can apply a concept/s to some practical issue.
This particular report is a study that discovers the factors which Pakistani consumers value the most in their mobile phones which motivates them to go for a particular choice and how by studying these factors and their interplay one could better market mobile phones to Pakistani consumers.
I am highly grateful to Almighty Allah for granting me strength and guiding me throughout my study. I consider myself lucky that I studied at the best management school of my province and cannot thank enough all of my teachers for everything. I would like to specially thank my research supervisor Mr. Amir Saeed for giving me time whenever I needed it and doing all he could do in helping me out. I would also like to thank Mr. Kareem Khan, Mr. Zahoor Ahmad, Mr. Kamran Khan and Mr. Roohullah for distributing questionnaires for me in their respective institutes and also Mr. Noorullah, Mr. Arbab Musawir and Mr. Omer Yousuf for helping me out in using SPSS software.
I dedicate my study to all of my teachers, my class mates and my university without whom it would not have been possible.
It is a humble effort on my part and I am positive in expecting the report to work as a real guide for those who further progress the study.
Muhammad Amad
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Chapter 1 PAGE NO
INTRODUCTION
1.1Background of the study 5
1.2Purpose of the study 8
1.3Scope of the study 8
1.4Methodology of the study 8
1.5Limitations of the study 9
1.6Delimitations of the study 9
1.7 Scheme of the study 10
Chapter-2
LITERATURE REVIEW
1.1Introduction 12
2.2 Consumer Purchase Behavior 12
2.3 The Status of Pakistan’s Telecom and Handset Market 14
2.4 Preferences of Pakistani Users 18
Chapter 3
METHODOLOGY
3.1 Sample and sampling techniques 20
3.2 Theoretical Framework 20
3.3 Hypothesis formulation 21
3.4 Survey Methodology 23
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Chapter 4
ANALYSIS
4.1 Questionnaire Analysis 26
5.1 Cross Tabulation Analysis 43
Chapter 5
CONCLUSIONS AND RECOMMENDATIONS
Conclusions 51
Recommendations 54
ANNEXURE
REFRENCES 56
QUESTIONNAIRE 60
LIST OF GRAPHS
Annual Cellular Mobile Tele-density 15
Annual Cellular Subscribers 15
Handset Industry Market Share-Manufacturers 16
Factors Effecting Consumers’ choice of Mobile Phone Selection
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Chapter-1 “INTRODUCTION TO THE REPORT”
1.1 Background of the Study
It started in USA on June 17, 1946 when the very first cellular telephone call was
engineered in the city of St. Louis Missouri. But the then system was impractical if we
compare it to present day mobile phones because it weighted 80 lbs and cost $30 US
dollars on monthly basis along with that 30-40 cents were also charged on every local
area call. It were the 1960’s when the world of cellular industry managed to invent the
first partially automatic vehicle mobile systems that were launched in Sweden but these
were also not practical and they weighed nearly 40kg. On April 3 rd, 1973 Martin Cooper
a researcher from Motorola managed for the first time, a call successfully made by using
a hand held cell phone, which was the first instance in history when a call was done from
a device that was a non-vehicle set. The premier economically viable fully automatic
mobile network known as the first generation i.e. 1G was initiated in Japan in 1979 from
NTT ( i.e. Nippon Telegraph and Telephone Corporation) by at first concentrating just on
metropolitan parts of the city of Tokyo. During the next five operational years NTT’s
service expanded and covered the entire Japanese population and hence became the
pioneer nationwide first generation network of the world. In 1981, Nordic Mobile
Telephone (NMT) followed its success in Japan and launched its services in Sweden,
Finland, Norway and Denmark and became consequently world’s pioneer cellular
services provider who were for the first time offering international roaming as well.
Meanwhile, in USA the first 1G network was launched by Ameritech in the year 1983
which was a Chicago based company that was using Dyna-TAC handsets made by
Motorola. After that many countries followed in the early 1980’s such as Canada, UK
and Mexico.
World’s first ever modern technology based network i.e. Second Generation 2G mobile
systems was launched in Finland by Radiolinja in 1991 which operated on the GSM
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
standards and gave rise to for the first time competition in telecom services providers at a
time when the already experienced 1G NMT Network of Telecom Finland was
challenged by Radiolinja.
The year of 2001 saw the first totally commercial launching of third generation i.e. 3G
mobile technology and since then mobile phones and mobile phone services have seen an
exponential growth throughout the world and surely it can be said that the world has seen
a communication revolution because of this technology.
The extraordinary exponential consistent growth of mobile phones in the society is a
phenomenon never witnessed in consumer electronics’ history. The best thing about this
growth is that every person in the society whether belonging to a higher or lower class
has access to such accessories. It has now become a huge multibillion dollar industry and
as of now still growing strongly. With the emergence of the new markets like India,
Russia, China and Pakistan the mobile handset industry is still going strong and is
growing at a remarkable pace, it has surpassed the purchases of all the electronics
products like computers, televisions, cameras etc.
Instaphone could be rightly called the pioneer of cellular industry in Pakistan and it was
the first corporation to introduce cellular services to the people of the country. Instaphone
was at first owned by Millicom Corporation but later on it was acquired by Afreen Group
of industries; it started its operations in Pakistan in 1991 as an APMS mobile service
provider. In 2004 Mobilink became the first GSM service provider in Pakistan and after
the introduction of GSM service in Pakistan the industry has seen many new players and
tremendous growth. In the beginning the target market comprised of upper class
consumers but the industry’s rapid growth started after 2000-01 and today it has even
penetrated consumers belonging to the lower class. Nokia, Sony Ericsson, Samsung, LG
and Motorola at present are the leading mobile phone manufacturers in Pakistan.
The telecom sector of Pakistan during the past decade has contributed enormously to the
overall development of Pakistan. This particular sector is constantly achieving high
growth rates in the country. It is believed to be achieving growth every year despite
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
economic setbacks faced by Pakistan. During the month of October, 2010 mobile service
subscribers in Pakistan exceeded the psychological mark of 100 million (The Express
Tribune, 2010). Similarly, it is believed that Pakistan amongst all south Asian regions has
the highest cellular penetration rate. According to Pakistan Telecommunication Authority
(2010), the market leader is still Mobilink with 30 million subscribers, with Telenor
enjoying the second spot having 21 million users, with 20 million users Ufone is in third
place, Warid resides in fourth place having 18.14 million subscribers and with 6.48
million subscribers Zong is at the last. Every player in the industry is working hard to
expand the services throughout the country and are entering to regions like Azad
Kashmir, Tribal Areas and Northern Areas which are still not fully covered. So far five
tribal agencies of FATA have been covered.
With increase in mobile subscribers the country has also seen increase in the purchase of
mobile handsets. A brief survey in Karachi of main mobile handset markets came up with
the information that about seventy percent of cell phones users are having two handsets at
the same time indicating the increasing demand for mobile phones in Pakistan (Najeeb,
2010). According to Pakistan Telecommunication Authority (2006), figures given about
the mobile phone sets by the local dealers show that per month 750,000 to 800,000
mobile handsets are imported into Pakistan. Among many players the four main brands
that are the market dominators of Pakistan’s handset market are Nokia having the largest
market share i.e. 55 percent, followed by Sony Ericsson having 23 percent market share,
third is Samsung with 17 percent and with five percent Motorola is fourth. Latest sets
with state of the art technology are available in the markets throughout the country,
amongst all sets, sets having music playing features and powerful cameras are very
popular and it is expected that this tendency will be persistent in the coming years as well
and ultimately such facilities would become future standards. Services or products have
many different features such as value for money, quality, cost, brand image, brand
associations, value for money etc, but it has been observed that “size/shape, new
technology features, price and brand name” are the most vital attributes in a mobile
phone for consumers (Karjeluoto, Karvonen, Kesti, Koivumaki, Maninen, Pakola, Ristola
and Salo, 2005) so these attributes have been selected for the study. In this study the
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
variables that are affecting selection of mobile handsets in Pakistani market are studied
and it was searched that which factors the people of Pakistan value the most in the choice
of their mobile sets.
1.2 Purpose of the Study
I have chosen the topic of the study because of my personal interest in mobile handsets
and the industry as a whole. This research attempts to rank factors affecting consumer’s
preferences for mobile phones. This study can help advertisers to focus on that attribute
more which is ranked highly by the consumers. This research can also help the mobile
phone manufacturer/marketer in Pakistan to recognize the potential attribute positioning
errors (if any). Utmost effort has been put in to the study in making it accurate and to
make it possible to be used as a reference material for similar studies.
1.3 Scope of the Study
The study primarily focuses on respondents between the age group of 15-25, 26-35 and
36-50 and limited to four attributes. Because of being a research of a single researcher
with limited time and financial limitations, study would only target people of Peshawar.
1.4 Methodology of the Study
The study by enlarge is descriptive in nature as well as qualitative and is an applied
research. Both primary as well as secondary sources contributed to the data
For Primary data, research questionnaire was developed and used.
For Secondary research journals, online resources and newspapers were studied.
Because of the limitations, convenient sampling method was chosen, since it is evident
from the name, that sample is chosen which is at convenience. The convenient non
probability method many times is used in the preliminary research phase to get the gross
estimation of results devoid of bearing the time and cost needed in random sample
selection process.
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Sample included 100 respondents from three different age groups of mobile phone users,
majority being in the age group between 15-25 years of age because it’s observed that the
above age group has been and still is the maximum mobile phone users and is often well
aware of what they want from their cell phone. Questionnaires were distributed equally
amongst the male and female respondents. Hypothesis were formulated using past
researches done on similar topics and were tested using the findings from the
questionnaire.
1.5 Limitations of the Study
Because seeing the nature and scope of the topic, all aspects of the observable
facts under the study could not be analyzed due to many constraints, and only a
few variables were selected to find out consumers’ preferences in selection of a
mobile phone.
The most significant constraint to the report was its novel nature and new matter
under scrutiny it suffered from lack of availability of required information needed
for comprehensive examination. Mobile phones have seen their emergence as the
new consumer must have item just in the past decade and it’s still an ever
evolving consumer item.
Since my study only included sample from Peshawar and there was no
representation from rural parts of the country therefore the findings of the study
couldn’t be generalized.
Owing to lack of required time I was unable in making the study more
comprehensive and applying to all variables that may affect the phenomenon
under consideration.
1.6 Delimitations of the Study
In spite of all constraints the report is comprehensive enough to help my fellow
students to use it as a future reference material for their assignments connected to
the research topic under study.
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
The results of the study could provide advertisers the consumers’ preferences
which could be targeted in their Ads. It could also be used as a reference material
by them in order to realize the consumers’ purchase decision while opting for a
particular handset, and mobile phone manufactures could modify their products
according to the consumers’ requirements.
1.7 Scheme of the Study
Mainly the study has four main sections. A section in its self is further divided into
respective chapters. Following is the format of the study which shows how it is planned.
Section # 1, Introduction
The first chapter includes background, purpose, scope, methodology,
limitations/delimitations, and scheme of the report.
Section # 2, Body of the Report
The second chapter i.e. Chapter No. 2 comprises of the review of the literature connected
to the study including past researches done on the topic plus their main findings.
The third Chapter i.e. Chapter 3 covers the methodology of the study, comprising of
research questions/problems, hypothesis, sample and sampling technique plus the survey
methodology.
Section # 3, Analysis
Chapter No. 4 covers analysis of the questionnaire including the discussion of facts and
figures derived from the questionnaire, plus presentation of such findings in tables and
graphs. Analysis of the derived hypothesis is also covered in this chapter.
Section # 4, Conclusions and Recommendations
Chapter 5 has the findings and results of the study’s questionnaire, also having
recommendations for mobile phone manufactures meant for better targeting their
consumers with products and their features best suited for the target market.
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
SECTION # 2
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Chapter-2 “LITERATURE REVIEW”
2.1 Introduction
Over the past few years mobile phones have become an essential source of connection
and communication throughout the world, especially during the past decade, but little
consumer research studies regarding basic motives and choices affecting buying process
of mobiles phones can be found. Similarly, we should put into our consideration several
complex factors with reference to studying the mobile phone buying decision processes.
These factors include both macro as well as microeconomic variables that may have an
effect over the development of cell phone industry as a whole and on an individual
customer’s preferences along with choice decision making in particular. Based on such
factors consumers may go for a particular brand which may have the desired features that
they require and if such important factors are identified, marketers can use such features
to get competitive advantage over their rivals, and as a result become change leaders
rather than followers because of better understanding of consumer preferences.
2.2 Consumer Purchase Behavior
In order to comprehend an individual’s choice in a cell phone’s selection or any other
product, it is imperative to study customer’s purchase behavior. A definition of consumer
behavior given by Perner (2009) “It is the study of groups, organizations or individuals
and also the procedures by which they select, acquire, use and dispose products, ideas,
experiences or services in order to fulfill their needs and wants and the potential impacts
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
that these procedures have on the consumer and the society as whole”. The definition
provides some constructive arguments:
Consumer Buying Process takes place either on individual basis or in some
instances in a group for example friends can manipulate the types of apparel a
person goes for and if in the case of an organization company employees working
on the job may decide about the products that firm ought to be using.
The process of consumer buying behavior incorporates the use and discarding of
products and involves the study of how they are purchase. A matter of great
concern to the marketer is how a product is used because it reflects how by better
positioning one’s product a marketer can achieve greater than before
consumption.
Consumer behavior does not only include tangible products but along with them
ideas and services as well.
From the perspective of marketing consumer’s purchase process can be categorized into a
five step problem solving process i.e. 1. Need, 2. information gathering, 3. Evaluating the
given alternatives, 4. Purchase activity, 5. Post purchase status (Dorsch, Grove and
Darden, 2000). This five step process of decision making is most suitable for a purchase
decision that requires problem solving behavior or complex decision making process and
not for purchase decisions related to low involvement products. Similarly the purchase
decision for a new handset follows the same buying process but in some instances it may
also be affected by symbolic preferences linked to some brands.
In studying consumer choice behavior it’s important to take some general conditions into
consideration. Considering the case of the classical problem solving buying process
behavior, it is almost always the case that consumers go for information search before
taking purchase/choice decision. And it is also common in such behavior that consumers’
decision practice is directed by previously made likings for some specific alternatives. So
it shows that customers are expected to formulate their selection decision based on the
limited information search activity that they conducted (Moorthy, S., Ratchford and
Talukdar, 1997) rather than a detailed evaluation of all the possible alternatives (Chernev,
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
2003). Laroche, Kim, and Matsui (2003) opined that along with information search
evaluation of alternatives is an important activity that determines consumer’s choice and
it is often influenced by “Cognitive Heuristics” or in simple words a buyer choose a
particular product provide if it fulfills his perceived values based on his past experiences.
In this specific technique of assessment a buyer automatically eliminates a brand that do
not meet his set principles and even if it does, it does not have one or two attributes of
extreme importance to him even it has all other attributes. In this study the analysis would
be limited to consumer’s choice as to which product to purchase from a given set of
alternatives and whether to purchase or not.
Similarly, it is also believed that a lot of decision behavior exercised by buyers can be
different from one individual to another due to context of purchase so this means that
mathematical modeling has its limitations because consumers may use different
approaches to make their choices (Swait and Adamowicz, 2001). Furthermore the
influence of personal preferences and context of purchase may have a greater effect on
choice if a potential buyer has little subsequent knowledge or experience.
An important thing to note is that the conventional problem solving technique used in the
making of a decision that affects purchaser’s preference might not be the best approach in
all conditions. A mobile phone selection can either be based purely on
functional/primary/rational factors or it can be based on emotional factors e.g. fun,
excitement, pleasure etc (Batra and Ahtola, 1990). It has been proven that a lot of
consumer choices may be having both rational features (e.g. communication, time
management) as well as emotional features (e.g. applications, games, music, camera).
Wilska (2003) established that the younger the consumer the more he would prefer
emotional features in mobile phones rather than rational ones.
2.3 The Status of Pakistan’s Telecom and Handset Market
The past decade has seen a telecommunication revolution not just in Pakistan but
throughout the world. It is a fact that for a lot of years Pakistan’s telecommunication
sector was ignored; the technology was outdated and stuck in the mid-20th century. In
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
1999 there were 2.1 phones per hundred people in Pakistan from that it expanded to 100
million mobile phone users in 2010 and still growing, Pakistan in the past decade has
seen a communication revolution. Pakistan’s telecom sector is undoubtedly one of the
most rapid growing markets of the world. This extraordinary growth in mobile phone
subscribers has attracted many foreign mobile service providers and mobile handset
manufactures such as Nokia, Sony Ericsson, Samsung, HTC, LG, Motorola etc.
(Source: Pakistan Telecom Authority, 2010)
The telecom industry of Pakistan is estimated to be rising at a rate of 170% annually.
According to Pakistan Telecommunication authority 2.7 million subscribers gets added
into the industry on monthly basis (Ansari and Khan, 2009).
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
(Source: Pakistan Telecommunication Authority, 2010)
Shariq Syed (2008) suggests that Pakistani mobile phone market has played the most
important part in the rise of telecom business in Pakistan. The Pakistan mobile handset
market should be given equal credit for the enormous growth of Pakistan’s telecom sector
along with telecommunication service providers. Since 1st quarter of 2008 and up till
now, Pakistan is going through hard times generally in all industries and also in telecom
industry too with many negative economic indicators, political tensions, double figure
inflation & inconsistent financial plans have played their part in limiting economy’s
growth compared to previous years.
However, in spite of the economic setbacks Pakistan handset sales still remain on the
higher side and are predicted to be 27million by the year 2011. Competitive rivalry for
market share is still intense with the leadership position dominated by Nokia while
Samsung benefits from the growing market for very low cost handsets. The gray market
remains a key issue with 20%-22% share of total sales estimated for 2008 (Kerr and
Harris, 2008). The handsets distribution market is dominated by handful of companies
and among them United-Mobiles, Advance-Telecom and Mobile-Zone represent the
largest phone distributors.
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Nokia is the undisputed market share leader of cellular handset market of Pakistan
followed by two Korean manufacturers Samsung and LG. Nokia has 48 percent market
share but its declining steadily due to competition from other manufacturers and
especially from Chinese handsets. Samsung has seen tremendous rise in their market
share i.e. having 8% market share in the year 2006, its market share has increased to 30%
in 2008 and still going strong. LG is also enjoying favorable growth in market share with
its success due to two highly successful handset models that were LG, KG195 and LG,
KG270. Motorola and Sony Ericsson are showing un-impressive performance with just
5% and 1% share in the total Pakistani handset market (Syed, 2008).
(Source: Artistryofbranding.wordpress.com)
Demand for mobile phones in Pakistan has surged up their imports highly; it has seen
approximately 100 percent increase in-terms of their imported costs during the first
month of current financial year 2010-11. The Federal Bureau of Statistics (FBS) Pakistan
indicates the import bill of cellular handsets reached 39 million dollars during the month
of July as compared to the same month’s cost last year which was at US dollars 19.59
million thus showing a growth of 99.15%. Similarly mobile accessories expenditure was
27 % higher as weighed against the month of June which was $30.8 million. Altogether
according to FBS the import of handsets for the year 2009-10 moved up to 215 million
US dollars as to US 139 million dollars in the prior year indicating a surge of 54.6%.
According to the representative of Karachi Electronic Dealers Association (KEDA)
representative 55 percent increase in imports of cellular handsets is due to greater
demand of Chinese handsets (Khan, 2010).
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
This increase in mobile phone demand is also characterized and inflated by continuing
demand for Chinese-made mobiles which were introduced into the market about two and
a half years ago. Chinese sets have gained popularity among the people because of
having dual SIM facilities and are copycat versions of familiar branded phones.
But the branded phone manufacturers like Nokia, Samsung, LG, Sony Ericsson etc have
managed to maintain their market share among the masses of the society who still prefer
branded sets compared to Chinese handsets. Pakistan’s handset market is unique in the
sense that it sees a surge in sales just before and after the Eid festival (“Mobile handset
import bill up 100 percent”, 2010). Mr. Imran Zaki, marketing head at LG electronics
reports that demand from the market is constantly increasing day by day particularly in
entry stage segments, that includes lowest costing handsets ranging between Rupees 1200
to Rs 2000.
2.4 Preferences of Pakistani Users:
Nokia for understanding consumer’s preferences in a mobile phone conducted a study
and found out that Pakistani customers prefer style over the desire of being connected.
Their study also concluded that latest mobile phones teamed up with attractive folding
designs quick launch short cut buttons are in style, and these preferences are commonly
acceptable in Pakistan compared to markets within Asian and Asia Pacific regions.
Nokia’s study also came to the conclusion that for innovation demanding customers
Nokia needs to bring in entertainment filled intelligent multimedia experience in an ultra
slim easy to use package (Bhatti, 2007).
Giving an interview to The Daily Nation about their study of mobile telephone users’
preferences for Nokia in Pakistan, the Vice Pesident for Nokia Cell Phone Market and
Sales Operations Middle East and Africa Mr. Tomi Paatsila revealed that customers in
Pakistani market surpassed other nations customers in their desire for innovative
technology and that Pakistani consumers were very conscious about style and shape,
which was beyond their expectations. He revealed that Pakistani customers desired
design and style more than any other factors.
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Nokia’s consumer preference study in mobile phone also showed that youth demanded
more innovation in multimedia options that is coupled with a slim handset. Based on
these demands Nokia has managed to modify their products accordingly. It was also
found that users in Pakistan were aware of the technology and with that in mind Nokia is
now modifying its products to offer intelligent and entertainment filled multimedia
experience in a user friendly interface and ultra slim package (Bhatti, 2007).
According to Aijaz (2008) nowadays customers are asking for more and more
compatibility in their handset’s user interface, which is why Nokia is liked by all for its
user friendly interface. A study conducted by Nokia showed that those Pakistanis who go
for low priced handsets still want the best possible package for their phones. Nokia’s
handset prices range from Rs. 2000 to over 50000. In order to measure Nokia’s market
share and satisfaction of their customers a survey was conducted in Lahore by Omar Aziz
in 2008 and he discovered that demographics of the locality play the most vital role, he
observed that Defense Housing Authority’s residents preferred brand reputation and
quality, whereas price was not considered as a major factor for residents of DHA. While
the preferences of the people of inner city of Lahore were totally different who were
more attracted towards lower prices as compared to other variables.
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Chapter-3 “METHODOLOGY”
3.1 Sample and Sampling Techniques
A sample of 100 people was taken by using the sampling method of Convenience
Sampling (or Accidental Sampling). In Convenience Sampling (also known as
opportunity or grab sampling technique) a sample is taken from the population which is
at convenience or in other words which is close at hand and it is a form of non-
probability sampling method. Since lack of financial resources, time constraint and a
study conducted by a single researcher, convenience sampling was adopted as the
population sampling technique for this particular research.
3.2 Theoretical Framework
It has been found that variables like demographics, price of the handset, brand familiarity,
new technology features/applications does have an impact on consumer’s decision to go
for particular mobile phone selection (Karjiluoto., Karvonen, Kesti, Koivumaki.,
Manninen, Pakola, Ristola and Salo, 2005). So as a result it can be inferred that mobile
phone choice is a dependent variable which is affected by demographics, brand
familiarity, price, technology features which are independent variables and hence have a
direct impact on consumers’ choice of mobile phone selection.
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Factors Effecting Consumers’ choice of Mobile Phone Selection
3.3) Hypothesis Formulation
Not a great amount of research is available on mobile phone choice. However, a few
articles have studied consumer decision process in relation to their mobile phone usage.
Riquelme (2001) studied how much prior information consumers posses when making a
choice between different mobile handsets of different brands. He based his study on six
key variables i.e. connection fee, free calls and call rates, mobile phone features, access
cost and mobile to mobile phone rates; these variables were rated by the respondents in-
terms of their importance. The results of the study illustrates that respondents with
previous knowledge about a particular product can make their choices relatively well but
they had a tendency to overestimate the significance of free calls and call rates, features
and undermine the significance of mobile to mobile phone tariffs, monthly subscription
fees and phone rates.
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Demographic variables play an important role in selection of mobile phones amongst
people belonging to different demographic groups. Demographic variables include age,
gender, income, class and employment (Johansson, Douglas and Nonaka, 1985). Wilska
(2003) conducted a survey of young people between the age of 16-20 in Finland and it
was found that mobile handset choice was consistent with their general consumption
patterns. The studied explained that in females addictive use was common and they
exhibited impulsive consumption patterns and went for trendy handsets. While, male
respondents preferred more technology packed handsets and they were also trend
conscious. However, the research concluded that both the gender’s preferences are
becoming alike in mobile handset choice behavior. Since personal differences in purchase
patterns are becoming more and more identifiable so demographic variables were
included in the questionnaire for analysis and the effect of demographics on certain
perceptions about mobile phone related behavior have been studied by using cross-
tabulation.
Similarly, brand familiarity also has an effect on consumers’ mobile phone choice along
with other features. In a survey of Asian mobile phone users, Liu (2002) came to the
conclusion that the brand of the phone did have an impact on mobile phone choice
decision as all the competing brands in the study had similar sizes/features and majority
of the respondents preferred a well known brand instead of a new one. The sales of
mobiles handsets are affected by replacement of an outdated set by a new model of it
because of constant technology change in the industry consequently, many people opt for
a familiar brand to replace it than go for an unknown one. So it can hypothesized that
brand of the mobile phone has an effect on mobile handset selection to some degree:
H1: When choosing between different mobile phone models, consumers prefer well-
known brands.
One of the most important factor that effects many purchase decisions is a product’s price
and in mobile phone choice too it can be considered as an important variable, more
importantly among young consumers (Karjaluoto et al., 2003). Karjaluto et al. (2003)
conducted a survey of 397 respondents and found that price was the most important
dominant factor that was influencing the choice decision of new mobile phone models
22
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
along with other factors like new technological advances etc. Chinese mobile phones are
dominating Pakistani handset market for the simple reason that they are providing cloned
models of famous brands but at an extremely affordable prices and this is the reason why
they are a huge success story in Pakistan (Hassam, 2010). So, a hypothesis can be
reached that the price of mobile phone has an impact over its choice:
H2: Price has a direct effect on consumer’s mobile choice decision.
Many studies have revealed that consumers go for a purchase decision of a new handset
based on the simple fact that their present mobile phone has become outdated and need a
new model with better messaging system, in-built camera, larger memory capacity,
sharper color displays, new multimedia features etc (O’Keefe, 2004). Nokia conducted a
survey of Pakistani consumers as to what they prefer the most in a mobile set and they
found that young consumers needed and were conscious of the new technology and
wanted entertaining and intelligent media services in their handsets (Bhatti, 2007). Since
mobile handset industry is a dynamic industry in which new technology and applications
are being introduced at a fast rate due to constant demand and expectations by the
consumers so the following hypothesis can be formulated:
H3: New technology features increases consumers’ motivation to acquire new phone
models.
3.4) Survey Methodology
In order to test the hypothesis a questionnaire was designed to find out as to what are the
factors that determine the choice of a mobile phone selection in Pakistani consumers and
to study which factors are valued the most and how much effect does demographic
differences have in mobile phone preference amongst consumers belonging to diverse
demographic sets. A sample size of 100 respondents was taken by using Convenience
Sampling method. Most of them were circulated amongst the students of Institute of
Management Sciences and Edwardes College Peshawar, some of them were also
distributed amongst the employees of Accountant General Office Peshawar.
23
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
The hypotheses were tested by asking different relevant questions regarding the pre-
determined hypothesis and results were processed using SPSS software by using
frequency distribution tables and cross tabulation. Based on the results of the
questionnaire and its analysis various conclusions were derived and recommendations
were given so as to how better market mobile handsets to consumers of Pakistan.
24
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
SECTION-3
25
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Chapter-4 “ANALYSIS”
On the basis of past research on the topic under study hypothesis were developed and to
test these hypothesis a questionnaire was designed and distributed among 110
respondents amongst which 100 questionnaires were useable. Among the total 100
respondents 61 of them were male and 39 of them female. For demographics Gender,
Age and Income level were selected. The majority of the respondents were university
students of Institute of Management Sciences Peshawar belonging to different BBA,
MBA and MS programs, college students of Edwardes College were also a part of the
study while questionnaire were also circulated amongst staff of Accountant General
Office Peshawar. The respondents belonged to three different age i.e. 15-25, 26-35, 36-
50.
Demographics
26
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
27
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Income/pocket money per month
Frequency Percentage Valid Percentage Cumulative Percentage
2000-5000 37 37.0 37.0 37.0
6000-10000 37 37.0 37.0 74.0
11000-15000 19 19.0 19.0 93.0
16000-25000 6 6.0 6.0 99.0
40000+ 1 1.0 1.0 100.0
Total 100.00 100 100
28
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
29
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
A total of 96% respondents had mobile phones while 4% still were a segment that
did not own a mobile phone indicating that this 4% can also be a market worth
capturing. The overwhelming amount of respondents having a mobile phone
shows that nowadays cell phones have become a must have accessory for nearly
everyone.
30
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
This question was asked in order to know how successful Chinese Mobile replica
phones are in our market and whether they have a potential to replace the already
famous brands known by all. 66% percent respondents believed that they are not
any threat for the present brands indicating that famous brands still have a strong
following but 34% of the respondents were seeing them as the replacement for
the present established brands, but no one in the study possessed a Chinese
mobile indicating that it was just a matter of perception and people were still
brand loyal to the present brands because their actions did not reflect their
perception.
31
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
This question is of particular importance because it shows a trend that a
considerable number of respondents use 2 or more mobile phones at the same
time for different reasons. 62% respondents had a single mobile handset while
24% had two mobile phones, 5% had three phones and 9% had four or above.
These are important findings because they present an opportunity for mobile
handset providers to study why people carry multiple handsets and how by
understanding their reasons one could target them with their products. This also
shows that a single individual having multiple mobile phones can be a target
customer for multiple brands at the same time.
32
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Q.4. Which company’s mobile phone do you have?
Frequency Percent Valid Percent
Cumulative
Percent
Valid nokia 73 73.0 73.0 73.0
sonny ericsson 3 3.0 3.0 76.0
motorola 2 2.0 2.0 78.0
samsung 18 18.0 18.0 96.0
other 4 4.0 4.0 100.0
Total 100 100.0 100.0
73% of the respondents had Nokia handsets indicating that Nokia is by far the market
leader followed by Samsung having 18% of the respondents using it while Sony Ericsson
once a dominant player in the market just had just three respondents owning its handsets
while Motorola was struggling with two votes. 4% people under study used other brands
that were HTC, iphone and LG.
33
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Q.5. Which factor to you is the most important in purchasing a mobile phone
for yourself?
Frequency Percent
Validity of
Percentage
Cumulative
Percentage
brand name 37.0 37 37 37
price 10 10.0 10.0 47.0
new technology features 47 47.0 47.0 94.0
size/shape 6 6.0 6 100
Sum= 100.0 100 100
This was the most important question that respondents were asked and it was asked to
find out as to what according to them was the most important factor in a mobile phone for
them which motivates them to purchase it. Out of the four factors selected for the study
34
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
by the help of past research “New Technology Features” was the most important reason
to purchase a mobile phone for 47% of the respondents while followed closely by 37%
respondents preferring “Brand Name” indicating them to be brand conscious.
Surprisingly just 10% of the respondents valued Price as the most motivating factor
which shows the fact that in purchasing a mobile phone not great many people in
Pakistan rank price as the determining factor in a mobile phone purchase decision. 6% of
the people took size/shape as the most important factor for them in purchasing a mobile
phone.
Since new technology features have been ranked first amongst all the factors of influence
this proves hypothesis H3 which says that these new and improved technology features
motivate consumers to go for a particular set with superior technology. However,
consumers’ under study have not valued price as an important factor hence disproving
Hypothesis H2 as a result.
35
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Q.6. How Often do you Buy New Mobile for Yourself?
FREQUENCY PERCENT VALID %age Cumulative %age
Within Six Months. 12 12.0 12.0 12.0
Within a year. 36 36.0 36.0 48.0
When new model of your
present set arrives.14 14.0 14.0 62.0
When the last one stops
working.38 38.0 38.0 100.0
100-0 100.000 100.000
This question was asked to know how often are people in Pakistan motivated to go for a
purchase decision of a new mobile set. 38% respondents do not buy a new handset for
themselves until their present set stops working and is of no use to them while 36%
purchase a new set for themselves every year. 12% of the respondents buy a new set for
themselves every six months. 14% of the people who were studied showed that they are
motivated to buy a new set for their selves only when a new model of their present set
arrives in the market which shows that they are brand loyal.
36
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
This question was a cross question to the previous question about respondents
take on Chinese mobiles as the replacements for current established brands in
order to check the consistency of opinions and check for contradiction in
answers. This question’s findings indicates that 89% people do not see Chinese
mobile phones dominating and replacing the current brands which is consistent to
the results of the previous question as well in which 66% respondents did not see
Chinese mobile as replacements for the familiar brands. It is also obvious from
the results of the above question that maximum number of the research subjects
37
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
believed the branded mobiles are here to stay and are not under any impending
danger from Chinese phones hence consequently proving hypothesis H3.
Very often things of necessity become things of luxury showing one’s Status in a
society and mobile phones to some extent do become symbols of an individual
achievement/status. 57% respondents replied negatively to it and did not agree to
the notion that mobile is a status symbol while 43% replied positively indicating
that a considerable number of individuals still take mobile phones a sign of Status
and achievement.
38
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Q.9. In what price range does your current mobile phone lie?
Occurrence %age Valid %
collective
Percentage
2000-5000 24 24 24 24
6000-10000 20 20.0 20.0 44.0
11000-15000 29 29.0 29.0 73.0
16000-25000 15 15.0 15.0 88.0
25000+ 12 12.0 12. 100
100.000 100 100.00
The respondents had mobile phones from diverse price ranges with majority i.e.
29% of them had handsets in the price range of 11000 to 15000 rupees, 20% in
the range of 6000 to 10000 rupees and 24% in the range of 2000 to 5000 rupees.
While 12 respondents owned a mobile phone worth more than 25000 rupees.
39
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Q.10. Does a new model of your mobile phone motivate you to buy a new set for
yourself?
This question was asked to know how brand loyal customers are to their present
brand and whether they are motivated by the new models with new technology
features of their present handsets or not. 69% of them do get motivated while
31% replied negatively. The results of this particular questions also proves H3
40
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
hypothesis which says that features that are new in a mobile phone as compared
to other sets of rival companies increases customers’ drive to acquire them.
Likert scale was developed to study as to how important price is to a Pakistani
consumer in purchasing a mobile phone. Most of the respondents agreed that for
them price is an important factor in mobile handset purchase decision, 23%
respondents slightly agreed to it, 19% agreed while 18% highly agreed. Only a
few disagreed to it while 21% were neutral to it. The above question also answers
and tests Hypothesis H2 and the results show that a plain majority do agree that
41
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
price does affect them in their purchase and choice of cell phones thus supporting
the Hypothesis H2 in result.
This question was asked to know whether a mobile phone is just a
communication device or there is something more to it. Over the years of
development and evolution mobile phones are now an entertainment media, a
computer, a gaming handheld device, a calculator, a record keeper, a pocket
dictionary etc. The answer had a split mandate only a slight majority replied
42
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
positively while many disagreed to it. While 24% of the respondents were
indecisive.
Cross Tabulation Analysis
Gender * Which company’s mobile do you have? Cross Tabulation
Which company’s mobile do you have?
nokia sonny ericsson motorola samsung other Total
Gender male 48 1 1 11 0 61
female 25 2 1 7 4 39
Total 73 3 2 18 4 100
From the data it was clear that male respondents preferred Nokia more than any
other brands i.e. 78% of them preferred Nokia, while in female respondents 64%
of them preferred Nokia. Sony Ericson, Motorola and Samsung were preferred
nearly with the same ratio in both the genders. 10% of the female respondents
had handsets of other brands which were not included in the given options.
43
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Gender * Which factor to you is the most vital factor in purchasing a cellular phone for
yourself? Cross Tabulation
Which factor to you is the most essential in purchasing a cell phone for yourself?
brand name price
new technology
features size/shape Total
Gender male 21 6 32 2 61
female 16 4 15 4 39
Total 37 10 47 6 100
From the cross tabulation analysis of the above question it was discovered that
34% male and 41% female respondents preferred brand name, 15% male and
10% female preferred price, 52% male and 38% female favored new technology
features, 3% male and 10% female favored size/style. So to male respondents the
most important factor for them in the purchase decision of a mobile handset was
“new technology features” and the least important factor was size/shape of a
mobile, while for female respondents the most favored factor was “brand name”
and least favored factors were price and size/shape of a mobile.
44
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Age Range * Which factor is most important to you in purchasing a mobile phone for
yourself? Cross Tabulation
Most important factor?
brand name price
new technology
features size/shape Total
Age Range 15-25 28 9 35 6 78
26-35 8 1 8 0 17
36-50 1 0 4 0 5
Total 37 10 47 6 100
Three age groups were involved in the study and the age group having
respondents between the age of 15-25 preferred new technology features the most
in a mobile phone which is understandable because they are aware of their
applications and most of the mobile phones are marketed to them. Age group
between the range of 26-35 years preferred brand name and new technology
features equally while price was not seen as an important factor. While
respondents of the age group 36-50 favored unanimously with 80% of the votes
new technology features as their most important desirables in a mobile phone.
45
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Gender * Does a new model of your mobile phone motivate
you to buy a new set for yourself? Cross Tabulation
Does a new model of your mobile phone motivate you to
buy a new set for yourself?
Agreed Disagreed Sum total
Gender Male 44 17 61.0
Female 25 14 39.0
69 31 100.00
Although both the genders agreed that a new model of their present phone does
motivate them to buy a new phone for themselves but, male respondents replied
more positively with 72% agreeing as compared to 64% females.
46
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Gender * In what price range does your current mobile phone lie? Cross Tabulation
In what price range does your current mobile phone lie?
2000-5000 6000-10000 11000-15000 16000-25000 25000+ Total
Gender male 17 15 16 8 5 61
female 7 5 13 7 7 39
Total 24 20 29 15 12 100
When price of the mobile phone of individuals was cross tabulated with their
gender it was found that majority of the male respondents had mobile phones that
were in the price range of 2000-5000 rupees (i.e. 27% male respondents) while
26% of them had handsets within price range of 11000-15000. Majority of the
female respondents had mobile phones between the price range of 11000-15000
rupees while only 12% of them possessed handset in between the range of 6000-
10000 rupees. All in all surprisingly more female respondents had expensive sets
than male respondents i.e. 17% females respondents had mobile sets with price
range of more than 25000 rupees while 8% male respondents had such phones.
47
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
In what price range does your current mobile phone lie? * Which factor to you is
mainly essential in purchasing Mobile set for yourself? Cross Tabulation
Vital Factor?
brand name price
new
technology
features size/shape Total
In what price range does
your current mobile
phone lie?
2000-5000 10 4 10 0 24
6000-10000 6 4 9 1 20
11000-15000 16 1 12 0 29
16000-25000 5 1 7 2 15
25000+ 0 0 9 3 12
Total 37 10 47 6 100
When respondents’ mobile phone price was cross tabulated with the factor to
which they value the most in a mobile phone some predictable answers were
found. Respondents having mobile phones with price range between 2000-5000
valued price to some extent while the respondents with most expensive mobile
phones did not value price as an important factor, to them new technology
features were the most important must haves in their handsets . As we move
along from less expensive to most expensive handset owners it can be seen that
price becomes less and less important.
48
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Monthly income/pocket money? * Which factor to you is the most important in
purchasing a mobile phone for yourself? Cross Tabulation
Which factor to you is the most important in purchasing a mobile phone
for yourself?
brand name price
new
technology
features size/shape Total
Monthly income/pocket
money?
2000-5000 15 3 18 1 37
6000-10000 13 6 15 3 37
11000-15000 6 1 10 2 19
16000-25000 2 0 4 0 6
40000+ 1 0 0 0 1
Total 37 10 47 6 100
From the above comparison between respondents’ monthly income/pocket
money and to which factor they value the most in purchasing a mobile set for
themselves, it is clear that price with less monthly income respondents is a valued
49
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
factor but as we move along to higher income respondents price becomes less and
less important.
SECTION-4
50
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Chapter-5 “CONCLUSIONS AND RECOMMENDATIONS”
Conclusions
Primary objective of this specific study was to examine consumers’ purchase behavior
relating to cell-phones and to look into the reasons which affects them to make their
choice. From the findings of this study it was clear that mobile is no longer a luxury of a
selected few in the society rather it is now a necessity and almost every posses one or
more handsets. It was also clear that Nokia is by far the market leader and has the largest
market share followed by Samsung, Sony Ericson, and Motorola.
Hypothesis H1 claimed that consumers prefer banded sets over unbranded ones and was
highly supported by the results of the study and proven as a result. The second hypothesis
H2 which related price with purchase decision got a mixed response in one question
respondents ranked it lowly as a factor affecting them in a purchase decision but when
asked to rate price and its importance as a motivational variable in purchase decision
many of the consumers rated it highly thus more research is recommended for the
conformation of Hypothesis H2. Hypothesis H3 was highly supported by the results of
the study and decisive majority of the respondents did agree with the hypothesis that new
technology features indeed affect people in choosing a particular product for themselves.
Although from the literature review it was found that Chinese mobiles are the new
dominant force and they may change the dynamics of the market but the results of this
study showed that even though majority of the respondents saw them as the replacements
for the present familiar brands but when asked would they prefer them instead of present
brands they replied negatively. So it can be inferred that even if there is a perception that
51
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Chinese mobiles are penetrating the market but still no one from the respondents owned a
Chinese mobile indicating that they still prefer the familiar brands and it is only a
perception that Chinese mobiles are taking over the market.
When the respondents were asked about the most important question of the research that
what according to them is the most important factor in a mobile phone selection? It was
found that overall Pakistani users surprisingly value “new technology features” as the
most motivating factor in purchasing a mobile phone for themselves. It was also found
that female respondents slightly valued brand name more than new technology features as
their most important factor while male respondents voted for new technology features
which shows demographics (i.e. gender in this case) having an effect on perception.
Astonishingly price was not seen as a major motivational factor in mobile phone
purchase decision along with size/shape.
It was also found that most of the people under study purchased a new handset for
themselves only when their present set stopped working and a great number of them went
for a new mobile within an year. While only a few were motivated to buy a new model of
their present handset indicating brand loyalty is not that common. But when the
respondents were asked a cross question that whether a new model of their present
handset motivates them to buy a new phone for themselves (i.e. Question No.10) a wide
majority of them replied positively indicating contradiction in the respondents’ replies for
two similar questions. It was also discovered that male respondents were motivated more
than the female respondents to buy a new phone for themselves by the entry of a new
model of their existing handset thus showing effects of demographics (i.e. gender) on
purchase behavior.
Mobile phones over the years have been seen as a mark of achievement/status symbol
and when consumers were asked about it, they showed split mandate i.e. nearly half of
them agreed while half of them did not agree with the notion. But still a slight majority
believed them not to be a sign of status symbol.
Although Pakistan is a developing country but from the study it was clear that it is a
market for all kinds of players i.e. the respondents had diversified handsets ranging in all
52
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
price ranges. The majority of the respondents had mobile phones in the price range of
11000 to 15000 rupees. Demographically speaking majority of the females had handsets
between the price range of 11000-15000 while majority of the male respondents had
mobiles phones in between the price range of 2000-5000 rupees.
Respondents were asked to rate the intensity of how much they valued price as the most
important determining factor in their purchase decision a good majority of them agreed
with it many were indecisive while a few of them did not see price as an important factor
influencing their purchase decision regarding their mobile phones. When monthly
income/pocket money was cross tabulated with the factors which users value the most in
a cell-phone it was found that the importance of price becomes less and less significant
when we move from low income getters to higher ones indicating the effects of
demographics (i.e. in this case income) on mobile phone selection.
When asked whether they see a mobile phone as just a communication device and
nothing else the respondents’ reply was again not unanimous nearly one third of them
agreed, one third of them disagreed while one third of them were indecisive about it.
53
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
Recommendations
From the study it was clear that the respondents preferred new technology
features more than anything else in their handsets so it is advised that the mobile
phone manufacturers should concentrate on that and their advertising should
highlight the properties and abbreviations (e.g., EDGE, GPRS, WIFI, GPS) and
at the same time educate the people about the benefits of these attributes in their
promotions.
Since smart phones era has just begun so the importance of reseller is becoming
more and more essential as such phones have loads of features and properties and
the users might be requiring hand-on instructions of their use. Furthermore, better
post purchase services should be there as well for such phones because that may
determine competitive edge over other rivals.
The study also revealed that many of the respondents did not value price that
important as compared to other factors in mobile phone selection and were
willing to pay higher prices if provided with better features than others. So it is
recommended that consumers can be charged higher prices for high end products
but their phones should have the attributes in them that are better/different than
rival’s products.
It was also discovered that many of the people under study had multiple phones
at the same time so this presents an opportunity for mobile phone manufactures to
study why they carry multiple phones at the same time and how they can target
them either through making phones based on their preferences or introducing
dual SIM handsets for such segment.
From the results of the study it is clear that Chinese handsets do not present an
imminent threat to the present familiar brands, but still all the major brands can
54
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
jointly take legal action against the replica Chinese phones that use their
trademarks/intellectual properties illegally.
This study provides a number of insights into the factors that has the most
influence on the choice of a mobile handset but this is just the tip of an ice berg, the work
is not comprehensive enough so that its findings can be generalized but still it can be a
premier report on the mobile phone handset market in Pakistan. There are numerous
studies conducted on mobile phone service providers in Pakistan but research on the
handset market in general and in the case of Pakistan in particular is insufficient.
An important and major limitation of this report was related to its sample range which
was relatively small and a big chunk of the sample was taken from university students
who had unique demographic characteristics and it may be noted that only 4% of the
people of Pakistan manage to study in universities, so a large number of population is still
there to be studied for the phenomenon under investigation. The sample was not
diversified enough to include people from all parts of the country especially people
belonging to rural areas that constitute majority of the population of Pakistan. Because of
such limitations in the sample the findings cannot be generalized.
Furthermore, many of the attributes in a mobile phone like MMS, SMS, camera,
multimedia features, WIFI connectivity, dual SIM support etc. were combined as “new
technology features” but they can themselves be studied as individual factors and how
much an individual value them compared to each other.
55
Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
ANNEXURE
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
QUESTIONNAIRE
Gender: (1) Male (2) Female Age group A) 15 to 25 B) 26 to 35 C) 36 to 40
Monthly income/pocket money
A. 2000-5000 rupees B. 6000-10000rupees C. 11000-
15000rupess
D. 16000-25000rupees E. 26000-40000rupees F. Above
40000rupees
1. Do you own a mobile phone?
a. YES b. NO
2. Do you see Chinese mobile phones as replacements for current well
known brands?
a. YES b. NO
3. How many mobile sets do you use/have at present?
a. 1 b. 2 c. 3 d. 4 and above
4. Which company’s mobile handset do you have?
a. Nokia b. Motorola c. Sony Ericsson d. Samsung
e. Other
5. Which factor to you is the most important in purchasing a mobile phone
for yourself?
a. Brand Name.
b. Price.
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
c. New Technology Features.
d. Size/shape.
6. How often do you buy a new mobile phone for yourself?
A. Within 6 Months
B. Within an year
C. When new model of your present set arrives.
D. When the last one stops working.
7. Do you prefer Chinese mobiles over the branded ones?
a. Yes b. No
8. Do you believe cell phone is a “status symbol”?
a. Yes b. No
9. In what price range does your current mobile phone lie?
a. 2000 to 5000 rupees
b. 6000 to 10000 rupees
c. 11000 to 15000 rupees
d. 16000 - 25000 rupees
e. 25000 onwards
10. Does a new model of your mobile phone motivate you to buy a new set
for yourself?
a. Yes B. No
11. Rate price in order of importance to select a new mobile phone?
Most important factor --1----2-----3-----4-----5-----6-----7---Least important
factor
12. A mobile phone is just a device for communication and that’s it?
Highly agreed --1------2------3------4------5------6-----7---Highly disagreed
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Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan
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