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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 consumers insights and preferences is needed in order to achieve and maintain competitive edge over rivals.

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

Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

Chapter 1
INTRODUCTION 1.1 Background of the study 1.2 Purpose of the study 1.3 Scope of the study 1.4 Methodology of the study 1.5 Limitations of the study 1.6 Delimitations of the study 1.7 Scheme of the study

PAGE NO

5 8 8 8 9 9 10

Chapter-2
LITERATURE REVIEW 1.1 Introduction 2.2 Consumer Purchase Behavior 2.3 The Status of Pakistans Telecom and Handset Market 2.4 Preferences of Pakistani Users 12 12 14 18

Chapter 3
METHODOLOGY 3.1 3.2 3.3 3.4 Sample and sampling techniques Theoretical Framework Hypothesis formulation Survey Methodology 20 20 21 23
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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

Chapter 4
ANALYSIS 4.1 Questionnaire Analysis 5.1 Cross Tabulation Analysis 26 43

Chapter 5
CONCLUSIONS AND RECOMMENDATIONS Conclusions Recommendations 51
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ANNEXURE
REFRENCES QUESTIONNAIRE 56
60

LIST OF GRAPHS Annual Cellular Mobile Tele-density Annual Cellular Subscribers Handset Industry Market Share-Manufacturers
Factors Effecting Consumers choice of Mobile Phone Selection

15 15 16
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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 1960s 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 3rd, 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 NTTs 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 worlds 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 1980s such as Canada, UK and Mexico. Worlds 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 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.
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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

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 industrys 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 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
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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

(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 Pakistans 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 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.

Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

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 consumers 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. 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 its 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
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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

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


y 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. y 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 its still an ever evolving consumer item. y 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 couldnt be generalized. y 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. y 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.
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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

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 studys 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 customers 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 individuals choice in a cell phones selection or any other product, it is imperative to study customers 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 that these procedures have on the consumer and the society as whole. The definition provides some constructive arguments: y 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.

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

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 ones 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 consumers 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 its 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, 2003). Laroche, Kim, and Matsui (2003) opined that along with information search evaluation of alternatives is an important activity that determines consumers 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
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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

be limited to consumers 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 purchasers 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 Pakistans 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 Pakistans telecommunication sector was ignored; the technology was outdated and stuck in the mid-20th century. In 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. Pakistans 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.

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

(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).

(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
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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

market should be given equal credit for the enormous growth of Pakistans 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 economys 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. 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).

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

(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 months 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). 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. Pakistans 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
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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

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 consumers 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. Nokias 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. Nokias 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 handsets 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
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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

for low priced handsets still want the best possible package for their phones. Nokias handset prices range from Rs. 2000 to over 50000. In order to measure Nokias 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 Authoritys 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 nonprobability 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 consumers 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 interms 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 genders 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 crosstabulation. 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 wellknown brands. One of the most important factor that effects many purchase decisions is a products 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
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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 consumers 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 (OKeefe, 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.

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

The hypotheses were tested by asking different relevant questions regarding the predetermined 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.

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

SECTION-3

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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, 3650.

Demographics

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

Income/pocket money per month


Frequency 2000-5000 Percentage Valid Percentage Cumulative Percentage

37

37.0

37.0

37.0

6000-10000 11000-15000 16000-25000 40000+ Total

37 19 6 1

37.0 19.0 6.0 1.0

37.0 19.0 6.0 1.0

74.0 93.0 99.0 100.0

100.00

100

100

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

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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.

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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.

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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.
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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

Q.4. Which companys mobile phone do you have?


Cumulative Frequency Valid nokia sonny ericsson motorola samsung other Total 73 3 2 18 4 100 Percent 73.0 3.0 2.0 18.0 4.0 100.0 Valid Percent 73.0 3.0 2.0 18.0 4.0 100.0 Percent 73.0 76.0 78.0 96.0 100.0

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.

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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?
Validity of Frequency brand name price new technology features size/shape Sum= 37.0 10 47 6 100.0 Percent 37 10.0 47.0 6.0 100 37 10.0 47.0 6 100 Percentage Cumulative Percentage 37 47.0 94.0 100

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 by the help of past research New Technology Features was the most important reason
34

Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

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.

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

Q.6. How Often do you Buy New Mobile for Yourself?


FREQUENCY PERCENT Within Six Months. Within a year. When new model of your present set arrives. When the last one stops 12 36 14 12.0 36.0 14.0 VALID %age 12.0 36.0 14.0 Cumulative %age 12.0 48.0 62.0

working.

38 100-0

38.0 100.000

38.0 100.000

100.0

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.

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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 questions 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 believed the branded mobiles are here to stay and are not under any impending danger from Chinese phones hence consequently proving hypothesis H3.
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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

Very often things of necessity become things of luxury showing ones 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.

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

Q.9. In what price range does your current mobile phone lie?
collective Occurrence 2000-5000 6000-10000 11000-15000 16000-25000 25000+ 24 20 29 15 12 100.000 %age 24 20.0 29.0 15.0 12.0 100 Valid % 24 20.0 29.0 15.0 12. 100.00 Percentage 24 44.0 73.0 88.0 100

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.

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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 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.

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

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 price does affect them in their purchase and choice of cell phones thus supporting the Hypothesis H2 in result.

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

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 positively while many disagreed to it. While 24% of the respondents were indecisive.

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

Cross Tabulation Analysis


Gender * Which companys mobile do you have? Cross Tabulation
Which companys mobile do you have? nokia Gender male female Total 48 25 73 sonny ericsson 1 2 3 motorola 1 1 2 samsung 11 7 18 other 0 4 4 Total 61 39 100

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.

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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? new technology brand name Gender male female Total 21 16 37 price 6 4 10 features 32 15 47 size/shape 2 4 6 Total 61 39 100

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.

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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? new technology brand name Age Range 15-25 26-35 36-50 Total 28 8 1 37 price 9 1 0 10 features 35 8 4 47 size/shape 6 0 0 6 Total 78 17 5 100

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.

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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 Gender Male Female 44 25 69 Disagreed 17 14 31 Sum total 61.0 39.0 100.00

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.

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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 Gender male female Total 17 7 24 6000-10000 15 5 20 11000-15000 16 13 29 16000-25000 8 7 15 25000+ 5 7 12 Total 61 39 100

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 600010000 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.

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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? new technology brand name In what price range does your current mobile phone lie? 11000-15000 16000-25000 25000+ Total 16 5 0 37 1 1 0 10 12 7 9 47 0 2 3 6 29 15 12 100 2000-5000 6000-10000 10 6 price 4 4 features 10 9 size/shape 0 1 Total 24 20

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.

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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? new technology brand name Monthly income/pocket 2000-5000 money? 6000-10000 11000-15000 16000-25000 40000+ Total 13 6 2 1 37 6 1 0 0 10 15 10 4 0 47 3 2 0 0 6 37 19 6 1 100 15 price 3 features 18 size/shape 1 Total 37

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 factor but as we move along to higher income respondents price becomes less and less important.
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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

SECTION-4

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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 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.

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

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 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.
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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

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.

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

Recommendations
y 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. y 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. y 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 rivals products. y 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. y 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 jointly take legal action against the replica Chinese phones that use their trademarks/intellectual properties illegally.

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

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.

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

References:
y Ansari, S. and Khan, A. (2009), Telecommunication Trends in Pakistan. Market Forces, pp. 213-217. y Batra, R. and Ahtola, O.T. (1990). Measuring the hedonic and utilitarian sources of consumer attitudes. Marketing Letters, 2 (2), pp. 159-170. y Bhatti, B. (2007), Cell Phone Users in Pakistan Prefer Style over Features. Telecompk, Retrieved, 24 November, 2010 from <

http://telecompk.net/2007/03/28/cell-phone-users-in-pakistan-prefer-style-overfeatures/> y Bhatti, B. (2007), Top Reasons for Selecting a Mobile Provider in Pakistan. State Of Telecom Industry Pakistan Blog. Retrieved, 24 November, 2010 from <http://telecompk.net/2007/06/26/top-reasons-for-selecting-a-mobile-provider-inpakistan/> y Chernev, A. (2003). When more is less and less is more: The role of ideal point availability and assortment in consumer choice. Journal of Consumer Research, 30 (2), pp. 169-184. y Dorsch, M.J., Grove, S.J. and Darden, W.R. (2000). Consumer intentions to use a service category. Journal of Services Marketing, 14 (2), pp. 92-118. y Hassam (2010), China Mobile Phones. Hubpages, Retrieved, 11 December, 2010 from < http://hubpages.com/hub/China-Mobile-Phones> y Johansson, Johny K., Susan P. Douglas, and Nonaka, I. (1985), Assessing the Impact of Country of Origin on Product Evaluations: A New Methodological Perspective. Journal of Marketing Research, pp. 388-396. y Karjaluoto, H., Karvonen, J., Kesti, M., Koivumaki, T., Manninen, M., Pakola, J., Ristola, A. and Salo j. (2005). Factors Affecting Consumer Choice of Mobile Phones: Two Studies from Finland. Journal of Euromarketing, Vol. 14(3), p-66. y Karjaluooto, H., Karoonen, J., Pakola, J., Petila, M., Salo, J. and Syento, R. (2003). Exploring consumer motives in mobile phone industry: An investigation

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

of Finnish mobile phone users. International Conference on Business Economics, Management and Marketing (Athens, Greece), pp. 335-342. y Kerr, D. and Harris, S. (2008), Pakistan Mobile Handset Market Outlook. Retrieved, 22

November,2010from<http://www.strategyanalytics.com/default.aspx?mod=Repor tAbstractViewer&a0=3844> y Khan, M. (2010), Mobile Phone Imports Increased by 55 Percent. Retrieved, 20 November, 2010 from <http://propakistani.pk/2010/04/28/mobile-phone-importsincreased-by-55-percent/> y Laroche, M., Kim, C. and Matsui, T. (2003). Which decision heuristics are used in consideration set formation? Journal of Consumer Marketing, 20 (3), pp. 192209. y Liu, C.M. (2002). The effects of promotional activities on brand decision in the cellular telephone industry. The Journal of Product & Brand Management, 11 (1), pp. 42-51. y Mobile handset import bill up 100 percent (2010). Daily Times, 5 September, Retrieved, 22 November, 2010 from < http://www.dailytimes.com.pk > y Mobile phone users reach 100 million mark (2010, September 30). The Express Tribune. y Moorthy, S., Ratchford, B. and Talukdar, D. (1997). Consumer information search revisited. Journal of Consumer Research, 23 (4), pp. 263-277. y Najeeb, F. (2010, July 11). Chinese mobile phones gain higher market share. The Express Tribune. y OKeefe, M. (2004). 2004 worldwide camera phone and photo messaging forecast. Info Trends Research Group, Inc. Research Report. y Omar, A. (2008), Nokia's Best Hits and Flops in Pakistan, Telecompk, Retrieved, 24 November, 2010 from <http://telecompk.net/2008/11/26/nokias-best-hits-andflops-in-pakistan/>

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

Pakistan Telecommunication Authority, telecom indicators. Retrieved 14 September, 2010,from<http://www.pta.gov.pk/index.php?option=com_content&task=view&i d=1413&Itemid=687>

Perner, L. (2009). Consumer Behavior: The Psychology of Marketing. Retrieved 10 November, 2010 from < http://www.consumerpsychologist.com/>

Riquelme, H. (2001). Do consumers know what they want? Journal of Consumer Marketing, 18 (5), pp. 437-448.

Swait, J. and Adamowicz, W. (2001). The influence of task complexity on consumer choice: A latent class model of decision strategy switching. Journal of Consumer Research, 28 (1), pp. 135-148.

Syed, S. (2008), The State of Pakistans Handset Market An Analysis. State Of Telecom Industry Pakistan Blog. Retrieved 10 November, 2010 from < http://telecompk.net/2008/08/29/the-state-of-pakistan%E2%80%99s-handsetmarket-%E2%80%93-an-analysis/>

US$1b handsets imported in Pak in 2005-06. Retrieved 5 September, 2010, from http://www.paktribune.com/news/index.shtml?160478

Wilska, T.A. (2003). Mobile phone use as part of young peoples consumption styles. Journal of Consumer Policy, 26 (4), pp. 442-464.

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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 15000rupess D. 16000-25000rupees 40000rupees E. 26000-40000rupees F. Above B. 6000-10000rupees C. 11000-

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 companys mobile handset do you have? a. Nokia e. Other 5. Which factor to you is the most important in purchasing a mobile phone for yourself? a. Brand Name. b. Price. 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. b. Motorola c. Sony Ericsson d. Samsung

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Factors Affecting Consumers Choice of Mobile Phone Selection in Pakistan

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 factor 12. A mobile phone is just a device for communication and thats it? Highly agreed --1------2------3------4------5------6-----7--- Highly disagreed --1----2-----3-----4-----5-----6-----7--- Least important

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