Factors Influencing Purchasing Behavior of Mobile Phone Consumers: Evidence from Bangladesh ()
1. Introduction
In the era of information technology (IT), during the last two decades, the benefits of information technology have reached almost every corner of the world (Nath, Saha, & Hossain, 2015), where Bangladesh is not exceptional. Researchers (i.e., Waverman, Meschi, & Fuss, 2005) evidenced that IT’s advancement in every sector caused significant economic growth in developing countries. In Bangladesh, as a developing country, with the growth of the application of information and communication technology, both labour productivity and capital productivity were improved, which increased national productivity and economic growth (Naym & Hossain, 2016). The mobile phone has enriched the communication network, one of the revolutionary inventions of modern science and technology. Using this technology, it has become easier for Bangladeshi people to communicate from one corner to another corner of the world. It is an integral part of our daily lives since every business person, every job holder, most homemakers, parents, and most students need mobile for communication (Riyath & Musthafa, 2014). For personal communication (voice call, SMS & MMS), business communication (voice call, SMS & MMS), clock scheduler, calculator, imaging, internet surfing, the mobile communication technology is evolving and constantly updating in response to consumers’ changing needs and preferences (Twenefour, 2017; Mokhlis & Yaakop, 2012). Once, the mobile phone was very rare in the country where it is now more available, progressively cheaper, more affordable and a part of most peoples’ culture. Moreover, during the last twenty years, the Bangladeshi telecommunication industry has been considerably grown up. The number of mobile phone subscribers reached 170.137 million, and the mobile internet subscribers reached 102.353 million under four operators in Bangladesh at the end of December 2020 (BTRC, 2021). As a result, the Bangladeshi mobile market has been recognized as the fifth-largest in the Asia-Pacific region and the eighth-largest in the world.
The reduction of mobile phones’ prices led to a rapid increase in its use, and people can afford mobile phones at a significantly lower price. The vast majority of mobile subscribers use mobiles as basic phones—primarily used for voice communication, messaging short text services (SMS), and controlled internet browsing (Nath, Saha, & Hossain, 2015). The other group of subscribers use smartphones that are regarded as a new and improved technology in the market which is recognized as a digitally social platform capable of acquiring, providing, and sharing private and group information (Rice & Katz, 2008). The traditional cell phones do not have any operating system like smartphones such as Windows Mobile, Google Android, or Linux, allowing third-party applications to run on them (Garga, Maiyaki, & Sagagi, 2019). Innovative features and applications are constantly being added to mobile phones to satisfy users’ information needs allowing them to perform a wide range of functions. In the current situation, the application of smartphone is not limited to calling and texting; instead, it meets the variety of needs of users providing: communication services that allow for data transfer in the voice, graphics, and text formats; wireless internet facilities such as browsing, e-mail, e-banking; and multimedia and entertainment services such as music, games, camera, colour displays and the motion picture (Rahim, Safin, Kheng, Abas, & Ali, 2016). As a result, a radical shift in behaviour patterns occurred among smartphone users. Besides, the cellular phone industry always shows tremendous change and development in the market. To gain a competitive advantage, they work hard and attract consumers to launch new smartphones frequently (Rahim et al., 2016), which leads to hyper-competition among the marketers. Due to mobile phone companies’ large entry, many international smartphone brands, including Samsung, iPhone, Huawei, Oppo, Symphony, Vivo, Walton, ASUS, are marketing in Bangladesh. Customers choose their desired brand many of considerations in their mind, and the factors that are frequently seen as influencers of brand selection include product features, price, brand image, reference, product sacrifice, expectation, perceived quality, and perceived value (Riyath & Musthafa, 2014; Alshare et al., 2020; Rahim et al., 2016; Mokhlis & Yaakop, 2012; Lau, Lam, & Cheung, 2016; Garga, Maiyaki, & Sagagi, 2019). Numerous studies were done on the mobile phone’s customer satisfaction factors (Nath et al., 2015) from Bangladesh’s perspective. A few number of research were done on the factors influencing mobile phone purchase behavior in different countries or regions: in Sri Lanka (Riyath & Musthafa, 2014), Jordan (Alshare et al., 2020), in Malaysia (Rahim et al., 2016; Mokhlis & Yaakop, 2012), in Hong Kong (China) (Lau et al., 2016), India (Negi & Pandey, 2013; Ganlari et al., 2016), and Nigeria (Ayodele & Ifeanyichukwu, 2016). However, to the authors’ best knowledge, no recent study has been carried out on the factors affecting smartphone purchase decisions among Bangladeshi consumers. Therefore, the objective of the study was to investigate the factors that influence Bangladeshi consumers in purchasing a smartphone. In order to examine the factors affecting mobile preference, the primary data were collected from the smartphone users living in cities in Bangladesh. The study results show that more than 70 percent of smartphone users belong to the age group under 40 years, and almost 70 percent of consumers purchase their phones within the budget of Tk.10,000 to Tk.40,000. The study also found that product features, brand image, price, and product quality are the most significant influencers to buy a smartphone among the factors examined. Moreover, the study findings have important implications for both academics and mobile phone manufacturers because the findings add new empirical evidence to the existing literature and provide the information that helps manufacturers tailor their marketing mix and strategic priorities.
The paper is divided into five sections. Section 2 reviews the recent literature on the factors influencing smartphone purchase decisions. Section 3 provides an in-depth description of the sample, data collection, and measurement used for the study. Section 4 presents the analysis and discussion of the study results. Finally, Section 5 summarizes the study findings, describes implications, limitations, and future research direction and provides the concluding remarks.
2. Literature Review
Numerous studies have investigated the factors influencing purchasing intention of the smartphone. Most scholars examined these factors using a theoretical modeling approach. The literature review focuses on the factors that influence the purchasing behavior of smartphones in Bangladesh, including product features, product price, brand image, purchasing intention, social influence, product sacrifice, customer expectations, perceived quality, and perceived value. The literature review contents link to the study’s research objectives.
2.1. Product Features
Product features are the characteristics of a product that can fulfill consumers’ preferences by applying and using it (Kotler & Armstrong, 2007). In the mobile phone industry, smartphones come with a wide range of high-tech features include wireless connectivity, application installation, a file management system, a built-in web browser, multimedia presentation and capture, full programmability, numerous gigabytes of storage and location, high-resolution displays, as well as movement sensors (Oulasvirta et al., 2011). Consumers pick smartphones with various features that better serve their needs and desires while different features offer different levels of satisfaction to them (Chow, Chen, Yeow, & Wong, 2012). Previous studies found empirical evidence that the features are the critical factor to choose smartphones. Rahim et al. (2016) mentioned simply product features, Ahmed, Gull, and Rafiq (2015) confirmed the technology and innovations, Ayodele and Ifeanyichukwu (2016) suggested the attractive features, Mokhlis and Yaakop (2012) mentioned the innovative features, and Nath et al. (2015) found the technical and value-added features as the critical factors to choose the mobile handsets. Examining the specific features, Ling et al., 2006 found that consumers favor five design features of mobile phones such as color screen, camera, internet browsing, wireless connectivity and voice-activated dialling. Chow et al., 2012 identified that smartphone users are mainly concerned with the camera rather than operating systems. Ling, Hwang, and Salvendy (2007) found that mobile phones’ physical appearance, size, and menu organization significantly impact customer purchasing behavior. Gopal, Anjali, and Aakanksha (2013) states that light-weighted phones are top-rated instead of heavily weighted phones, while Riyath and Musthafa (2014) emphasize the stylish appearance of a phone to be considered as popular. Negi and Pandey (2013) found that the long battery backup is the most considered factor among the young girls in purchasing mobile phones.
2.2. Price
The price enables consumers to determine where to trade with a product (Nagle & Holden, 2002), and it will always remain the most crucial factor for customers purchasing decisions because price creates an image of the brand in the customers’ minds (Chow et al., 2012). Juwaheer et al. (2014) identified price as a crucial factor influencing customers’ smartphone choice; however, smartphone price is a significant indicator of product quality: higher price suggests advanced technology, design, and improved features. Negi and Pandey (2013) argued that the customers of the lower-income group prefer cheap phone brands. Also, both Mokhlis and Yaakop (2012) and Twenefour (2017) found the price was one of the essential factors influencing mobile phones’ customer choice. Moreover, in their study, Ayodele and Ifeanyichukwu (2016) suggested that mobile companies adopt a more attractive and appealing pricing strategy to better appeal to young adults.
2.3. Brand Image
A brand is a name, term, symbol or design of a product to distinguish it from other products or its company from competitors. A brand offers a distinct identity and links the company to its products or services (Leelakulthanit & Honcharu, 2012). Most companies emphasize their brand name, which can be a valuable asset for their goods and services. Furthermore, it may pave the competitive edge for the organization. Consumers tend to purchase branded goods and services since brands provide them with quality assurance and generate options and facilitate making their purchase decisions well (Juwaheer et al., 2014). Customers today prefer smartphones with unique features such as a simple graphical interface for touch screen interactions and the ability to view details with minimal irritation (Suki, 2013) quickly. Rahim et al. (2016) found a significant relationship between smartphone brand image and its purchase intention. Also, Bayraktar et al. (2012), Mokhlis and Yaakop (2012), Ahmed et al. (2015), and Garga, Maiyaki, and Sagagi (2019) found the empirical evidence of brand image of mobile phones is a critical factor in purchasing decision process. However, Ayodele and Ifeanyichukwu (2016) found brand image as an insignificant factor influencing smartphone purchasing behaviour.
2.4. Purchasing Intention
The tendency of consumers to take actual buying action is referred to as purchase intention. Purchase intention implies making a plan to purchase specific goods or services in the future, but its implementation depends on an individual’s financial ability to buy those particular goods and services (Qun et al., 2012). It reflects a person’s willingness to buy a product and his/her evaluation of choices based on personal preferences, prior experience and external factors (Zeithmal, 1988). Consumers will go through buying a product by recognizing, gathering information, evaluating, buying and seeking feedback about the product (Blackwell et al., 2001). Therefore, they will buy a product after conducting preliminary testing to ensure that they are buying the right product that suits their expectations and desires. Ganlari, Deka, and Dutta (2016) confirmed that consumer behavior towards smartphone purchase decisions was affected by perception, motivation, and intention. Also, Ahmed et al. (2015) and Alshare et al. (2020) argue that consumer perception and attitude stimulate the purchase intention that affects smartphone purchase decision.
2.5. Social Influence
A society consists of culture, social class, reference group, family, and household, which significantly influences consumer buying behavior. Rashotte (2007) and Rahim et al. (2016) assert that social influence is the deliberate or unintentional influence of another person on one’s emotions, attitude, thoughts and actions. It occurs due to the interaction with people who know each other, including parents and peers. Social influence incorporates the influence of parents, peers and media (Chow et al., 2012). Consumer behavior is affected by those around them (Kotler & Armstrong, 2007). They would look for suggestions, advice, and experiences from people who have already purchased and used smartphones. In their studies, Mokhlis and Yaakop (2012) mentioned the personal recommendation, and Garga et al. (2019) found the reference group is the vital influential factors in purchasing smartphones. Social media sites like Facebook, Twitter, and Instagram expanded customers’ social networks where they get information about smartphones and feedback and product reviews from other users who are actually or have previously used the devices. Suki and Suki (2013) opines, young people, particularly students, rely heavily on the people around them to buy smartphones. However, Ayodele and Ifeanyichukwu (2016) did not find any significant social influence on the smartphone purchase decision.
2.6. Product Sacrifice
For customers who want to purchase smartphones, product sacrifice is considered trading off something valuable to them. Consumers find information about a product they want to buy based on their requirements and preferences (Rahim et al., 2016). Also, they compare among the alternatives in terms of features, quality, benefits, and price within their budget to meet their expectations and desires. Ganlari et al. (2016) showed the buyer’s decision-making process model where the evaluation of alternatives is an integral part of the model, and to obtain consumers’ preferred items, they must make sacrifices in other areas. Consumers make sacrifices in monetary and non-monetary costs to purchase some items (Sok, 2005). The purchase price, acquisition cost, storage, installation, order handling, repairs and maintenance risk, risk of failure or poor performance are examples of monetary costs. Non-monetary costs, on the other hand, can be measured in terms of time cost, search cost and psychic cost while deciding if the consumers would purchase or re-purchase a smartphone. Sok (2005) found a significant positive relationship between product sacrifice and purchase intention; however, Rahim et al. (2016) examined product sacrifice as an insignificant factor in purchasing decisions.
2.7. Customer Expectations
Customer expectations are the product of previous interactions with the company’s product (Rotondaro, 2002). Bayraktar et al. (2012) examined the elements of customer expectation in terms of total quality, product and service quality, and personal needs fulfillment. Customer expectation is directly related to customer satisfaction, making a customer loyal (Anderson, Fornell, & Lehmann, 1994).
2.8. Perceived Quality
Perceived quality is the assessment of a market of their recent consumption experiences. Perceived quality is simply a customer’s overall evaluation of a standard method of receiving customer services (Hellier et al., 2003). This construct assesses the customization and reliability of a particular product or service. Customization refers to how well a product or service meets a customer’s need. In contrast, reliability refers to how well a company’s offering is dependable, standardized, and free of flaws. Alshare et al. (2020) argued that cellular brands offering high quality with reasonable prices attract and create a customer. Lau et al. (2016) indicated that smartphone purchase intention significantly depends on perceived usefulness, ease of use, and perceived enjoyment. Also, Garga et al. (2019) identified product quality as the cause of switching cellular brands, and Riyath and Musthafa (2014) and Twenefour (2017) identified perceived quality of smartphones affects brand preference.
2.9. Perceived Value
The perceived value of a product or service is the level of product quality relating to the price paid by a customer. Fornell et al. (1996) explained the perceived value of a product as the price rating for the perceived quality and the quality rating for the price paid. The perceived value structure allows for a comparison of firms based on their price-to-value ratio (Anderson et al., 1994). In their studies, Lau et al. (2016) showed the perceived value as the significant influencing factor on smartphone purchase intention, while Nath et al. (2015) gave the empirical evidence of relationships among the value-added service, customer satisfaction, and purchase intention.
3. Research Methodology
3.1. Study Sample and Data Collection
The primary objectives of the study are to identify the factors that influence smartphone customers’ buying behavior and assess the robustness of these factors. In a rigorous literature review of previous research on the purchasing behavior of phone and electric devices, the nine factors are identified to investigate whether these factors have a strong impact on the purchasing decisions of mobile phones. The primary data were collected from smartphone users in different age groups living in urban areas in Bangladesh. The respondents were selected from urban people because of the ease of communication online. A total of the eight largest cities in Bangladesh were identified to select subjects. These eight cities were chosen to minimize the potential bias present in data drawn from a single city (Bayraktar et al., 2012). In this study, the non-probability (convenience) sampling techniques are applied (Roberts-Lombard, 2002). In the non-probability sampling techniques, the individual reflection of researchers impacts choosing the sample size. A non-probability sampling method was used in many previous studies (i.e., Mokhlis, Mat, & Salleh, 2008). Also, to reduce errors and improve data accuracy, the sample size should be large enough. In the case of unknown population size, the following statistically accepted (Saunders, Lewis, & Thornhill, 2003; Malhotra & Dash, 2016: p. 279) formula was used to calculate the sample size:
where;
Z2 = 95% of confidence level and equals 1.96
P = expected prevalence which equals 50%
d2 = is the level of precision or sampling error and equals 5% (0.05)
Therefore, the study designed a sample size of more than 385 phone users in Bangladesh. Five hundred questionnaires prepared in Google forms were emailed randomly to the smartphone users, considering the response failure rate. Finally, 410 out of 500 questionnaires were received and selected for analysis. Therefore, the response rate was 82%, which was above the average response rate. The questionnaire was divided into two parts. The first part included demographic information, including gender, age, education, occupation, number of handphones, the experience of using smartphones, and budget range. The second part included nine sections, including questions related to the factors influencing smartphone preferences. The investigated factors were product features, price, brand image, purchasing intention, social influence, product sacrifice, customer expectations, perceived quality, and perceived value. An explanatory research design was used to examine the factors.
3.2. Measurement
Data used in the analysis were collected through the questionnaires. All of the measures used in the study were adapted from the existing literature. Demographic characteristics of the respondents in the first part of the questionnaire were measured in frequency, percentage, and cumulative numbers. In the second part of the questionnaire, all variables are measured in 5-point Likert scales ranging from 1 = strongly disagree, 2 = disagree, 3 = neutral, 4 = agree, and 5 = strongly agree. The statistical tools, mean and standard deviation were used in data analysis to infer the degree of influence of factors. The mean value was used to identify the significance of influencing factors, and standard deviation was used to measure the dispersion of data to the mean.
4. Results and Discussion
4.1. Customers’ Demographics
The proportion of male respondents was 64.15%, and female respondents were 35.85% in the survey among 410 mobile phone customers in the two largest cities (Dhaka and Chittagong) in Bangladesh (Table 1). In the sample of 410 mobile phone users, 37.07% were aged under 30 years, 33.41% were aged between
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Table 1. Demographic characteristics of population surveyed.
Source: Survey.
31 and 40 years, and 19.76% of the participants were within the range of 41 - 50 years. Based on the education level, it is found that 59.27% of participants completed Masters degree, 20.73% completed Bachelor degree, and 11.22% had HSC as their highest degree. The study was conducted with students, homemakers, professionals/self-employed, businessmen, and the three major professional groups of Bangladesh, including government employees, private employees, and autonomous employees. Among them, 30.73%, the most significant number of respondents were students, and the proportions of private employees, businessmen, professional/self-employed, autonomous employees, homemakers, and government employees were 27.32%, 13.66%, 9.03%, 8.29%, 5.85%, 5.12% consecutively. It is noticed that 35.12% of respondents who are the largest group purchase smartphones within the range of Tk.20,000 to Tk.40,000, whereas 33.16% of respondents purchase smartphones within Tk.10,000 to Tk.20,000. However, only 3.41%, the minor proportion of respondents, purchase smartphones of above Tk.80,000. Among all of the respondents, the majority (70.97%) are single phone users. In contrast, those who have/use two phones and more than two phones are 18.54% and 10.4%, respectively. It also reveals that 47.80% of respondents use smartphones for more than five years, 40.98% are using for two to five years, and 11.22% use less than two years (Table 1).
4.2. Factors Affecting Purchasing Behavior of Mobile Phones
The study was conducted on the features, price, brand image, purchasing intention, social influence, product sacrifice, customer expectation, perceived quality, and the perceived value that affect the mobile phone users to buy the phone. In Table 2, the factors are given with their mean scores where the influencing factors range from 3.3390 to 4.1098, and the median score of all the factors shown in the table is 3.7732. The factors in the table were ranked according to their significance that represented with their individual mean scores. The results show that among the nine examined factors, the product features (4.1098), brand image (4.0878), price (3.9366), and purchasing intention (3.8756) are the most significant factors that influence the customer to choose a mobile phone. In the
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Table 2. Factors affecting purchasing behavior of smartphone.
Source: Survey.
study, product feature is the foremost critical factor that mobile phone users take into account before going to purchase their new phones. Product features include high-resolution diplay, design and color, size and weight, camera, long battery backup, multimedia, programmability, and storage. The second most important determinant is the brand image or name where potential buyers of mobile phone considered the popularity and positive feedback form existing phone users at the time of buying a new one. Price of the mobile phones is the third consideration to the mobile phone consumers and they followed attractive and appealing elements as the price or costs need to be spent according to their budget. On the other hand, perceived quality (3.7732), social influence (3.7024), perceived value (3.6561), and customer expectations (3.6463) are considered less significant among nine factors that affect Bangladeshi smartphone buyers’ purchase behavior. Moreover, product sacrifice (3.3390) is deemed as the least significant or insignificant for the selection of smartphone brands by the customers.
4.3. Discussion
The study results indicate that product features are the most impactful factor that convinces smartphone consumers of Bangladesh to choose and purchase the mobile phones that best serve their needs and expectations. The findings align with the fact that consumers consider several features of mobile phones while choosing and buying them, such as camera, internet browsing, display resolution, wireless connectivity, physical appearance, size, voice-activated dialing, as well as menu organization of the mobile phones (Ling et al., 2006; Ling et al., 2007). Also, investigations in Jordan, in Nigeria (Ayodele & Ifeanyichukwu, 2016), in Malaysia (Mokhlis & Yaakop, 2012; Rahim et al., 2016), and India showed that attractive and innovative features, long battery backup, appearance, and high-quality product are considered as product features, influenced the purchasing decision of the different level of mobile phone users. Among these features, smartphone consumers of Bangladesh have become highly concerned with the number and the picture quality of the cameras of the smartphones, which is also consistent with the findings of the study conducted by Chow et al. (2012). Apart from these, Bangladeshi smartphone consumers also consider the weight of the mobile phones while purchasing them. It is in line with the findings determined by Gopal, Anjali, and Aakanksha (2013) that light-weighted phones are more desirable than heavily-weighted phones. However, the demand for medium-weighted phones persists in the smartphones market in Bangladesh. Alongside product features, some other factors such as Brand name/brand image, price, and purchasing intention also strongly influence the buying behavior of Bangladesh’s smartphone consumers. Brand name or image is also found as one of the critical variables that have a significant relationship with the buying intentions of mobile phone users (Rahim et al., 2016; Ahmed et al., 2015). The importance of Brand name/brand image of smartphones can also be realized by the dissertation of Juwaheer et al. (2014) that consumers tend to purchase goods and services of recognized brands since it provides them with several options to choose from with quality assurance. The same researchers argue that price also acts as a quality indicator, where a higher price indicates advanced technology, design, and improved features of the smartphones, and it is consonant with the beliefs and thoughts of the smartphone consumers of Bangladesh. Attractive and competitive prices were also found as one of the most significant factors that impact potential phone buyers’ choices (Ayodele & Ifeanyichukwu, 2016; Mokhlis & Yaakop, 2012; Negi & Pandey, 2013; Alshare et al., 2020; Riyath & Musthafa, 2014). Furthermore, Purchase intention is said to positively correlate with the brand name, price, and quality, which is found in the study by Leo et al. (2005). Likewise, the purchase of a mobile phone was presented as subjective along with other general factors that influence the switching behaviors of mobile phone users (Garga et al., 2019). In essence, the importance of all these factors signifies the purchase behavior of Bangladesh’s smartphone buyers. Finally, product sacrifice is considered the insignificant factor in the study. This is also the same with the result found by Rahim et al. (2016) conducted on the factors that influence purchasing smartphones among University students in Malaysia. However, this finding contradicts Zeithmal, Berry, and Parasuraman (1996) and Sok (2005) since their study reflects the importance of considering both monetary and non-monetary costs in the case of purchasing goods.
5. Conclusion, Implication, and Future Research Direction
This study aimed to examine the factors that influence the purchasing behavior of smartphone users of Bangladesh. This study found that the product features, brand image, price, and perceived quality act as the most significant influencers in enabling Bangladeshi people to choose and buy their desired mobile phones. Social influence such as the recommendations from friends, family, peers, and media helps to generate awareness towards mobile phones with high brand image. Thus, it enables different age groups and a wide range of occupational groups in Bangladesh to purchase smartphones to communicate with people and meet other purposes possible with smartphones only. Also, social influence makes it much easier for Bangladeshi people to select and buy smartphones with advanced features, high quality, huge storage and battery backup, and stylish appearance. Therefore, it helps them reduce the perceived risk of selecting smartphones with poor features and quality and post-purchase dissonance.
It is noteworthy that the findings of this study will offer a new set of marketing dynamics to mobile manufacturers and marketers, especially for the South-Asian markets like Bangladesh that will account for a large portion of these companies’ revenue. The findings could also aid smartphone marketers in their operations and strategic marketing plans and provide them with indicators for maximizing resource utilization. Furthermore, this study’s outcomes support academicians and researchers with a good view and understanding, which they can apply in their ongoing and future works.
This investigation is not from its deficiency. It has a regional bias as the participants’ sample size was not covered from all parts of the country. Furthermore, due to the Likert scale’s use as the research tool for the study, there could be more likely to remain central leaning bias, acquiescence bias, and social elegancy bias. Nevertheless, this study empowers the existing literature and strengthens our understanding of the relationship between influencing factors and smartphone purchasing behavior among Bangladeshi consumers.
Further study might be conducted on the country’s professional groups and the factors influencing the professional groups regarding choosing a mobile brand. Secondly, research would be operated on mobile companies advertising and promotional strategies that positively impact the customer’s brand selection decision. Thirdly, it might be explored what differences are in the key determinants that stimulate customers of mobile brands living in developing and developed countries. Lastly, since the COVID-19 pandemic inhibits the students’ physical presence in their schools, colleges, and universities that causes students to purchase smartphones to participate in their online classes, a study might be projected to find out which models and features of the mobile phones are preferred mainly by students, parents and teachers certainly for educational purposes during this pandemic situation.