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.

Consumer buying behavior

Several researches have been conducted on the factors influencing the purchase of smartphones.
According, to Uddin, Lopa & Oheduzzaman (2014), the most important factor is the physical attributes,
which are looked by the consumer while buying a new mobile phone. The researcher also states that,
some other factors influencing the consumer buying behavior are pricing, charging and operating
facilities, size and weight, friends’ and colleagues’ recommendations, neighbors’ recommendations and
advertising.
Basha, Lakshmanna and Fayaz (2011) have also studied the various factors influencing the consumer
buying behavior on Mobile phones, and have summarized it that the choices of mobiles differ, amongst
various age groups and income levels, and the choice depends on the services derived and hold for
longer duration, based on the quality of the mobile phone.
In the study conducted by Mesay Sata (2013) majority of the consumers own Nokia mobile phones. In
recent times, Nokia mobile phone users have plans to shift to other brands such as Samsung, Apple and
BlackBerry. The analysis conducted by the researcher shows that, price is the most dominant factor in
the purchase decision of the consumer. The consumer’s second preference is attractive features
prevalent in the mobile handset. However, some features of mobile phones are given more importance
and some are considered as not important. Brand name and durability of mobile phones were given due
importance in buying a mobile phone, since these two features are related to the quality of the mobile
phones and the least importance, being social influence and after sales service.
Debasish and Mallick (2015) in their research found that, companies should develop action plans with
specific marketing strategies considering the complexity of the set of factors influencing consumer
behavior and to target the potential of rural market in Asia. Strategic Planning is required to market in
rural areas and new mobile phones launch cannot be successful if this is not implemented in a proper
manner. Rural market should have different branding activities and plans as the consumer mindset does
not have similarity with the mindset of the consumer staying in urban areas. Success has been achieved
by companies which have adopted an integrated plan of urban marketing strategies and action plans.
Kaur (2015) studied consumer purchase behavior towards mobile phone. The study conducted in India
by the researcher revealed that consumers prefer to use single mobile phone with android operating
system. The consumers were found to be satisfied with their existing brand of mobile phone. This study
also showed that the consumers replaced the phones between one to two years. The consumers
preferred Samsung brand mobiles.
Martensen (2007), in the empirical survey-based study proved that teens show low loyalty towards their
mobile phone brand as compared to the adults. The study also concluded that in case of twins a weak
relationship existed between satisfaction and loyalty. It was also observed that satisfaction levels of
teens were higher than that of adults despite their lower levels of loyalty. Due to this teen do not go for
the same brands at the time of repurchase nor do they recommend their current brand of mobile
phones to others.
Mohankumar and Dineshkumar (2015), in their study mentioned that, the consumers are buying a
variety of mobile phones, which satisfy their needs and wants. They are always influenced in their
purchasing activities by some considerations, which lead him to select a brand or a store, which is
preferred by others. Consumers mostly preferred Nokia mobile phones.
Kumar and Chaubey (2015) studied the functional attributes which affected the consumers buying
decision of mobile phones. The research mentions that the consumers give great importance to the
product attributes than the functional factors while purchasing a mobile phone.
Karjaluoto et al. (2005) study dealt with the choice criteria of the consumers in buying mobile phones.
The factors studies were the influence intention to acquire new mobile phones and factors influencing
the change of mobile phones. The technical problem in mobiles was found to be the main reason to
change the mobile phone and the most influential features sought by consumers before the purchase of
mobile phones were price, interface, brand and properties.
Singh and Goyal (2009), studied the consumers buying behavior of mobile handset by different age
groups and gender. The research conclusion mentions that the age group of 18-30 years were less
sensitive to pricing and physical attributes, brand, value added features and technical features were
more important in making a purchase decision. Moreover, the consumers belonging to the age group of
50 years or more gave more importance to price rather than features. Significant differences also
prevailed between different age groups with regards to the importance given to all factors except the
repairs and after sales services. There was a high difference between the core technical features and
brand of handset. Differences of opinion between male and female were also existed with the brand and
technical features of the mobile handsets.

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. Ahmed and Qazi (2011) investigated buying and re-buying
mobile purchase behaviour of 500 University students in Pakistan for adoption and consumption
patterns. Consumer prefers service provider offering services to suiting to their requirements and
features of a mobile phone. Favorite brand is Nokia and preferred service provider U-phone. Islam
(2011) studied mobile phone adoption amongst farmers in the rural area of Bangladesh. Nokia was the
most preferred brand due to affordability.
Singla and Bansal (2011) researched on factors that affect choice criteria of consumer for mobile
handset and the study revealed that important features of handsets are price, product design, and
availability and brand image. 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. 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. Amongst
them, consumer value new technology features as the most important variable that motivates them to
go for a new handset purchase decision. Malaysian Communications and Multimedia Commission
undertook a survey in 2012 to determine the mobile phone usage among youth in Malaysia and found
that young adult aged between 15-29 are more prone to technology and innovation features and are
likely to embrace new technology faster. Further, new function and new innovative functionality of
hardware and operating system are most important product features considered by smart phone users
while making purchase decision (Lay-Yee, 2013). According to Ibrahim, Kassim, & Mohamood (2013)
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.
Results of the study revealed that only Compatibility, Dependency and Social Influence had a significant
effect on purchase intention of Smartphone users. Only convenience factor showed a significant
difference between male and female purchase intention. Kushagra et al (2017) in their elaborate study
involving 417 respondents on Impact of Brand Cues on Young Consumers’ Preference for Mobile Phones
using Conjoint Analysis and Simulation Modelling deducted that the attributes or brand cues influencing
youth can be broadly classified as extrinsic cues and intrinsic cues. Extrinsic cues were found to be brand
name and price while Camera quality, RAM, Operating system and battery power were intrinsic cues.
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.

Didier Louis (2010) et al through their survey collected form young French consumers studied that the
personality traits impact directly on one of the three relational consequences of trust, attachment and
commitment to the brand. They proposed a model refining the overall understanding that the
researchers and managers possess. Rock (2011) et al in their research findings through an article
published mentioning about the potential in the mobile devices to support older adults in the range of
65 and above. An empirical study and analysis conducted by Tosell (2012) et al collected data for a
specific age group and discusses about how they adapt the content, interface and physical appearance
of their devices. The authors found that the adaptability and usage was wild. Thus a large span with
respect to the smart phone personalization has been seen in the past. Chou (2012) et al through a study
on customizations of mobile phones concluded in their results that text messages, battery contact,
software design and display size need a very high level of customization in manufacturing of mobile
phones.
Kim (2012) et al identified the relationship between the usability and the product success in cell phones
through existing usability of mobile phones and factors that affect the success of the product. The study
results showed that design, customer needs and innovativeness in the cell phones were the most
important factors rates by the users.
Zhou (2011) in his empirical study conducted indicate that contextual offering has a strong impact on
trust, flow and perceived usefulness which are the three major factors which determine the mobile
purchase intention.
A study by Chen (2012) et al supported with the help of partial least square graph software based
equation modeling approach reveal their interesting findings that the effects of the media
characteristics such as interactivity and tele presence may have significant influences in the buying
behavior of mobile phones. Persuad and Azhar (2012) through their study results about the talk about
the three important motivational factors viz, shopping style, brand trust and value. The research also
found that for company’s value creation is largely based on building relationships and engaging
customers.

Summary of related review

REFERENCE

13. Sata, Mesay (2013), Factors Affecting Consumer Buying Behavior of Mobile Phone Devices,
Meditarrenean Journal of Social Sciences, Vol. 4, No. 12, October 2013,
Doi:10.5901/mjss.2013.v4n12p103, ISSN 2039-2117 (online), ISSN 2039-9340 (print).

Uddin, Md Reaz, Lopa, Nusrat Zahan and Oheduzzaman, Md. (2014), Factors Affecting Customers’
Buying Decisions Of Mobile Phone: A Study on Khulna City, International Journal of Managing Value and
Supply Chains (IJMVSC) Vol.5, No. 2, June 2014 DOI: 10.5121/ijmvsc.2014.5203 21.]

Martensen, Anne (2007), Tweens’ Satisfaction and Brand Loyalty In The Mobile Phone Market, Young
Consumers, Vol. 8, No. 2, pp. 109-116.

Karjaluoto, Heikki, Karvonen, Jari, Kesti, Manne, Koivumäki, Timo, Manninen, Marjukka, Pakola, Jukka,
Ristola, Annu and Salo, Jari (2005) Factors Affecting Consumer Choice of Mobile Phones, Two Studies
from Finland. Journal of Euromarketing, Vol. 14(3), pp. 59-82.
8. Kaur, Harwinder (2015), Consumer purchase behaviour towards Mobile phones, International Journal
of Applied Research, Vol. 1, No.4, pp. 335-338
9. Kumar, Sandeep and Chaubey, D.S. (2015), Customers Preferences of Product Attribute of Mobile
Phone Handsets: A Descriptive Study, International Journal of Emerging Research in Management and
Technology, Vol. 4, No. 7, July 2015, pp. 246-250, ISSN: 2278-9359.

Khasawneh K and Hasouneh A. B. I. (2010). The effect of familiar brand names on consumer behaviour:
A Jordanian Perspective. International Research Journal of Finance Economics, 43.

Ahmed, I., & Qazi, T. F. (2011). Mobile phone adoption & consumption patterns of university students in
Pakistan. International Journal of Business and Social Science, 2(9).
ASSOCHAM (2011), People change mobile phones within two years: Survey: Anil Satapathy, The Mobile
Indian, Mumbai Last updated : Tuesday, November 01, 2011.
http://www.themobileindian.com/news/people-change-mobile-phones-within-two-years- survey-3088

Norazah Mohd Suki (2013). Students’ demand for smartphones Structural relationships of product
features, brand name, product price and social influence. 30(4), 236-248.

Singla S. and Bansal S. (2011), A study on the factors affecting choice criteria of consumers for mobile
handsets a comparative analysis in Ludhiana & Sangrur districts. Asian Journal of Management Research,
Volume 2, Issue 1, pp. 443-456

Ibrahim, I. I., Subari, K. A., Kassim, K. M., & Mohamood, S. K. B. (2013). Antecedent Stirring Purchase
Intention of Smartphone among Adolescents. Perlis International Journal of Academic Research in
Business and Social Sciences, Vol. 3, No. 12, 84-97.