DETERMINANTS OF CONSUMER PREFERENCE FOR MOBILE PHONES
ABSTRACT
The purpose of this study was to focus on the determinants of consumer preference for mobile phone. The objective of this study is examine the influence of service quality, price, product and brand choice and promotion and marketing strategy on consumer preference for mobile phone. This study adopted a survey research instrument through the administration of questionnaires to two hundred (200) users of mobile phones in Egor Local Government Area of Edo State. The data for the study were analyzed using descriptive statistics, Cronbach Alpha test, Pearson correlation and multiple least square regression techniques.
The empirical findings from the multiple regression techniques revealed that service quality had a positive coefficient and a significant influence on consumer preference for mobile phones at 1% level of significance. Price had a negative coefficient and insignificant influence on consumer preference for mobile phones. Product and brand choice had a positive and insignificant influence on consumer preference for mobile phones. Promotion and marketing strategy had a positive coefficient and insignificantly influence consumer preference for mobile phones.
The study recommended that manufacturers of mobile phones should take the service quality as a main element when manufacturing mobile phones in order to increase consumer preference for the phones. It is therefore suggested that further empirical work should be conducted on the area of consumer preference for mobile phones.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background to the study    -    -    -    -    -    -
1.2 Statement of the problem    -    -    -    -    -    
1.3 Research questions    -    -    -    -    -    -
1.4 Objectives of the study    -    -    -    -    -    
1.6 Significance of the study    -    -    -    -    -    
1.6 Scope of the study    -    -    -    -    
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction    -    -    -    -    -
2.2 Concept of consumer preference    -    -    
2.3 Determinants of mobile phones    -    -    -
2.3.1 Service quality and consumer preference for mobile phone    
2.3.2 Price and consumer preference for mobile phone    -
2.3.3 Product and brand choice and consumer preference for mobile phone        -
2.3.4 Promotion and marketing strategy and consumer preference for mobile phone
2.4 Theoretical framework    -    
2.4.1 Technology Acceptance Theory    -    
2.4.2 Neo-Freudian theory    -
CHAPTER THREE
Methodology    -    -    
3.1 Introduction    -    -
3.2 Research design    -    -    
3.3 Population and sampling techniques    
3.4 Operationalization and measurement of variables
3.5 Research instrument     -    
3.6 Sources of Data     -    
3.7 Method of Data Analysis            
CHAPTER FOUR
DATA PRESENTATION, ANALYSES AND INTERPRETATION
4.1 Introduction
4.2 Data Presentation and Analysis for Sample Background Variables
4.3 Data Presentation and Analysis for the Variables    -    
4.3.1 Reliability Test   -    -
4.3.2 Pearson Correlation Matrix     
4.3.3 Multiple Regression Techniques    
4.4 Discussion of Finding    
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Introduction    -    -    -    -    -    
5.2 Summary of Findings    -    -    -    
5.3 Contributions to Knowledge    -    -    
5.4 Conclusion    -    -    -    -
5.5 Policy Recommendations and Implication    
Bibliography    -    -    -
LIST OF TABLES
Table 3.4: Measurement of the Independent and Dependent Variables    -
Table 4.2: Demography of Respondents--        
Table 4.3.1: Reliability Test    -    
Table 4.3.2: Correlations Result    -    -
Table 4.3.3: Multiple Regression Results    -    -
Table 4.4 Discussion of Finding    -
BIBLIOGRAPHY    -    -    
APPENDICES: RESULTS    -
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
    The development of mobile phones and technologies has been an extended history of innovation and advancements cropped up due to dynamic changes in consumers’ needs and preferences (Comer & Wikle, 2008). According to Comer and Wikle, (2008) “Mobile phone devices have had one of the fastest household adoption rates of any technology in this modern world”. However, mobile handsets have become an integral part of human daily life and personal communication across the globe. In a competitive mobile phone market, manufacturers constantly fight to find additional competitive edge and differentiating elements to persuade consumers to select their brand instead of a competitor’s.
    Mobile penetration in Nigeria is very high when compared to the other African countries (Research ICT Africa, 2010). However, there are over 50 million mobile phone subscribers owning various brands of mobile phone. During the mobile phone buying decision process, these subscribers’ takes into account numerous factors. Consumer behavior is affected by a lot of variables, ranging from personal motivations, needs, attitudes and values, personality characteristics, socio-economic and cultural background, age, sex, professional status to social influences of various kinds exerted by family, friends, colleagues and society as a whole (Moschis, 1976). The consumer buying behaviour encompasses a complex series of stimulus and response in the purchasing process (Pratyush & Satish, 2012). Therefore, consumer buying behaviour is a characteristic of psychological, social and physical behaviour of possible customers on their awareness of evaluating purchasing consuming and telling other people about the products and services.
     Dorsch, Grove and Darden (2002) study on customer choice of mobile phone found that the perspective of marketing consumer’s purchase process can be classified into a five step problem solving process such as: need recognition, information search, given alternatives evaluation, purchase activity and post purchase evaluation. This five step process of decision making is most appropriate for the problem solving behaviour of purchase making decision or complex decision purchase process (Dorsch, Grove & Darden, 2002). More so, purchase decision for mobile handset pursues the same buying process but in some cases the decision may also be influenced by symbolic preference associated with some brands. Considering the classical problem solving buying process behavior, it is almost always a case that consumers go for information search before taking purchase decision. There is also a common behavior that consumer’s decision of purchasing is directed by previous likings for some specific alternatives. According to Moorthy, Ratchfordand and Talukdar, (1997) ‘It shows that customers formulate their purchasing decision based on the limited information search activity that they performed” rather than a detailed evaluation of all possible alternatives (Chernev, 2003). Besides information search evaluation of substitutes is an important activity that determines consumer’s choice (Laroche, Kim & Matsui, 2003). They opined that customer’s purchase decision is influenced by `cognitive heuristics` or in simple words a consumer choose his perceived brand based on his past knowledge if it fulfills his perceived values. Swait and Adamowicz (2001) found that a lot of decision behavior exercised by purchasers can be different from one individual to another because customers may use different approaches to make their choices rather only using mathematical modeling.
1.2 Statement of the Problem
    Mobile phone manufacturers face a problem of lack of adequate information of what factors influence consumer buying decisions for mobile phones, and how to effectively utilize this information to increase sale of their mobile phones (Malasi, 2012). The brands of mobile phones are available in the market the consumers are overwhelmed with an incredible array of mobile products to choose from because it is very difficult for customers to prefer a particular brand over another. A prospective buyer’s decision of buying a product or brand may be influenced by personal preferences and perspective of buying may have a greater effect on brand choice if the customer has little subsequent knowledge or experience about the product (Khan & Rohi, 2013). The conventional problem solving method that is used in making purchasing decision that affects buyers’ preference might not be the best approach in all conditions. Mobile phone selection can either be based on functional/primary/rational factors or it can be based on emotional factors such as: fun, pleasure, excitement etc. (Batra & Ahtola, 1990).
    Consumers’ of mobile phone found throughout the world greatly influenced by those different factors affecting mobile phones preference and purchase decision. These factors may be related to the characteristics of the consumer and the features associated with the mobile phones. This leads mobile phone companies to come up with a variety of mobiles with different brands and features. Liu (2002) conducted a study on the factors affecting the decision regarding brand in the mobile phone industry in Asia. It would be revealed from the study that the choice of a mobile phone is characterized into attitudes towards the mobile phone brand and attitudes towards the network. Customers’ choice of mobile phone brand is affected largely by new features more than size. Li and Li (2010) examine an exploration of the psychological factors influencing college students’     consumption of mobile phone in West China. However, researchers have devoted little attention to factors influencing the mobile phone buying decision in Nigeria. This study seeks to fill the above gap in research by investigating the factors that influence the consumer preference for mobile phones in Nigeria.
1.3 Research Questions
    Based on the research problem above, the following research questions will be raised to guide the study under investigation.
(i)    Does service quality influences consumer preference for mobile phones?
(ii)    Does price influences consumer preference for mobile phones?
(iii)    Does product and brand choice influence consumer preference for mobile phones?
(iv)    Does promotion and marketing strategies influence consumer preference for mobile     phones?
1.4 Objectives of the Study
    The broad objective of the study is to investigate the factors that influence the consumer preference for mobile phones in Nigeria. The specific objectives of the study are:
(i)    To find out whether service quality influence consumer preference for mobile phones.
(ii)    To find out whether price influence consumer preference for mobile phones.
(iii)    To find out whether product and brand choice influence consumer preference for mobile phones.
(iv)    To find out whether promotion and marketing strategies influence consumer preference for mobile phones.
1.6 Significance of the Study
The study will be beneficial to the following stakeholders:
User of Mobile Phones: The results of this research will be relevant to the user of mobile phone product. This would assist them in having strong preference for quality brand phones with a relatively low price.
Manufacturers: The study would be of great relevance to the manufacturers of mobile phone products by making excellent decisions on the improvement of the quality service and brand with high applications that are user friendly. Manufacturers of mobile phone should take advantage of the information available to them in order to influence sale of their product.
Marketing Organizations: The study would be of great importance to marketing organizations on the possible means of improving their marketing strategies to bring the mobile phone products to door step of the potential users of the products.
Future Researchers: This study would be great relevance to academic and non-academic researchers in business administration, finance, accounting and other related management discipline as it provide information and empirical evidence for further research on the area of consumer preference for mobile products.
1.6 Scope of the Study
    This study focuses on determinants of customer preference for particular brands of mobile phones in Nigeria. The study will be conducted in Egor Local Area of Edo State whereby two hundred (200) structured questionnaires would be distributed to mobile phone users. Simple random sampling technique was used in administering the questionnaires to the sampled respondents.