CHAPTER 2

REVIEW OF RELATED LITERATURE

This chapter represent the related literature and studies which all have a direct
bearing on this study. It has provided a discussion on the significance of this study to the
existing literature. The content of this chapter were gathered from various sources such as
the writings of experts, books and different thesis projects. All of these have significant
relation and contribution to the study. It discuss the factors affecting consumer buying
behavior of Mobile phone devices and studies conducted to highlight the significance of
buying behavior. The review of related literature is done to find out the needs and further
wants of users. This section also contained the theory that serves as the proponent guide
toward the possible completion of this study. Important points were quoted to support the
proponents ideas and to contribute to the study.

According to Nolcheska (2017) customer’s social interaction has a huge influence

on purchase decision, starting from the problem recognition, searching of relevant
information, evaluation of alternatives, final purchase decision, and post- purchase
satisfaction.
It is very important to mention the type of purchase behaviour this study will have its
focus, and Voramontri (2018) stated that customer decision-making could be defined as
behaviour patterns for the acquisition of products, or services.
Consumers generally engage in different purchasing decision processes among different
product categories. For some products, quality can be determined before the product is
actually purchased, while for other products this is nearly impossible (Lowengart &
Tractinsky, 2011)

Factors affecting consumer buying behavior

1.1 Brand name

Based on research by Khasawneh (2010) on mobile phones, it was found that
products brand name influence customers’ evaluation and affect to their buying
decision. This can also be supported by the research work of Norazah (2013),
brand name was found to have a significant effect on the demand for smartphones
among Malaysian students.
1.2 Quality
Osman (2012) in their study found that consumers made purchases on the basis of
design and other consideration of mobile functionality. Mokhlis, Yakkop (2012)
when investigated consumer behavior towards mobile phones in Malaysian
University came to the conclusion that seven elements describe cell phone
purchase decision – innovative features, image quality, price, recommendation,
durability & portable aspects, media influence and post sales services.

1.3 Review and recommendation

The most important among them was innovative features followed by
recommendation and price. Saif, Razzaq, Amad, and Gul (2012) in their study of
100 people found the factors that motivate consumers to buy a mobile phone in
Pakistan are price, new technology features, brand name and size/shape.
Promotion mix included celebrity endorsement, marketing frequency and
exchange offers as the determining factors. It was also found that social influence
works more on young customers while purchasing smart phones. Consumers
collect information on product from various sources, co-workers, friends, family
etc; before making a product purchase. Sata (2013) showed that in case of mobile
purchase price and product features are important followed by brand name and
durability in Ethiopia. Azira, R. et al. (2015) examined factors influencing
purchasing intention of Smartphone among university students in Malaysia and
deduced that “Three of four variables in study namely product features, brand
name, and social influence have a significant relationship with product purchase
intention and have positive correlation amongst them” Kaushal, SK and Kumar
Rakesh (2016) conducted study of 159 students and young professionals from city
of Lucknow to find out presence of any significant difference between factors like
Compatibility, Product Features, Price, Brand, relative advantage, dependency,
social influence and convenience that affect consumer's (male or female) purchase
of Smartphone.

1.4 Social status

According to Solomon (2013), social class of a consumer is identified by a
complex set of variables which includes income, profession, wealth, education
and family background. Meaning that group of people shares very much alike
social and economic condition. Therefore, social class have a powerful impact on
consumer’s purchase decision. Society can be classified into seven different
 groups. They are, upper uppers, lower uppers, upper middles, lower middles,
working class, upper lowers and lower lowers. (Kotler & Armstrong, 2012)

1.5 Consumer buying behavior of mobile phone in terms of age, gender and income
Age, gender and income where all significantly related to buying behavior of
mobile phone devices. Such personal characteristics are important in
understanding the use and ownership behavior of humans as predictors or as
moderators. The following sections review the literature related to three major
demographic factors: age, gender and income.

Use related to age: Mobile phone use is not limited to a specific age, as it was in the
past. Today users' age include kids, teenagers, and adults. Teenagers (12–17 years old)
were surveyed over several years about their mobile phone use. In 2004 the survey
showed that 45% of teens had a cell phone. The proportion increased to 63% in 2006 and
to 71% in early 2008, while it was 77% for adults in the same year.The age of the first
adoption of mobile phones could determine the current use intensity. Early adopters who
are considered as pre-teens pay high monthly phone bills and the average number of
monthly outgoing and incoming call and text messages were higher than 17 years old late
adopters.

Use related to gender: Significant differences related to gender were observed in the
use of mobile phones for common purposes such as: contacting family, scheduling
purposes, emergency and safety needs, and collaborate with colleagues on education or
job issues. For most features of mobile phones and for all use purposes, females are better
users than males.. They physically decorate their phone listen more hours to the radio.
use extensively mobile phone features and services such as SMS, alarm, camera and
music; in addition, they record sounds and take more photos.
Some researchers noticed that males make and receive voice calls and send text messages
more than females. On the other hand, others showed that females appear to make more
phone calls than males and they tend to send/receive more messages to/from friends.
However, both groups search for reasons to reduce the use of their mobiles. However
males mention more reasons than females since they believe that mobile phones waste
time and cause addiction.

Use related to income: There is a positive relationship between income, mobile

adoption and use. High income increases the probability of mobile phone adoption,
mobile use and expenditure. In addition, high income increases the probability of mobile
 ownership between teenagers from rich families . A study conducted to investigate
students' thoughts about the importance and costs of mobile devices. It surveyed students
(both males and females) in relation to the following features of their mobile phones: the
mobile design, its battery life, and storage memory; the MP3 player feature; phone
camera (video & photos); Bluetooth feature; and other extra features like clock, calendar,
organizer and reminder. The study showed that students spend more money to have such
features supported in their mobile devices. On the other hand, they are reluctant to have
many important features on their phones such as: touch screen, voice commands, chat,
teleconferencing, encryption and cryptography, common use of files, and printing.

SUMMARY OF REVIEW LITERATURE

Literature review for consumer behavior towards mobile phones clearly highlights
the importance of technology, price, brand, recommendations and product features. Not
only this, it also highlights that this preference differs across the demographics of the
consumer and marketers must take into account this difference while formulating strategy
to sell their product. The telecommunication sector will benefit from such information in
order to apply suitable segmentation and personalization techniques that will attract
buyers and consumers to the offered products and services. Research papers indicated
that mobile phones use and adoption are positively correlated to the following factors:
income, revenue from mobile phones, mobile network coverage, and digitalization of
mobile phones.Three of four variables in study namely product features, brand name, and
social influence have a significant relationship with product purchase intention and have
positive correlation amongst them. Finally, it is important for researchers to understand
how different segments behave with respect to mobile phone devices in buying behavior
so that we can develop a deeper understand of this factors and how it is impacted and
impacts consumer behavior.
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