BUS 335A

MARKETING RESEARCH AND ANALYSIS Final Research Report

Prepared By Students ID Due Date Lecturer Module Code No. of words

: Jason Lee Sia Jing, Selvermugam s/o Tanggavelu @ Angamuthu, Soh Chuan Ying, Tan Jian Wen : 31542302, 31534071, 31380767, 31495355 : 07th April 2012 : Mr Chong Kok Jong : PT BUS335 : 2279 (not including pages 1, 2, 17 and 18) (Needs to Be Changed upon completion of report)

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Table of Contents
.................................................................................................................................................1 ................................................................................................................................................3 1 Title Page..............................................................................................................................4 2 Executive Summary............................................................................................................5 3 Introduction.........................................................................................................................6 3.1 Statement of the Problem...............................................................................................7 3.2 Purpose of the Study......................................................................................................7 3.3 Importance of the Study.................................................................................................7 3.4 Research Objectives.......................................................................................................7 4 Literature Review................................................................................................................8 4.1 Critical research of past research...................................................................................8 4.2 Key Hypotheses............................................................................................................10 5 Research Method...............................................................................................................11 5.1 Subjects........................................................................................................................11 5.2 Research Instruments...................................................................................................11 5.3 Data Collection Method...............................................................................................11 5.4 Research Hypothesis and Statistical Analysis............................................................12 5.5 Assumptions ................................................................................................................12 5.6 Limitations...................................................................................................................12 6 Results of the Study...........................................................................................................13 6.1 Gender..........................................................................................................................13 6.2 Occupation....................................................................................................................14 6.3 Respondents that currently own a camera...................................................................15 ...............................................................................................................................................16 6.4 Age of respondents.......................................................................................................16 ...............................................................................................................................................17 6.5 Monthly income of respondents..................................................................................17 6.6 Maximum amount that respondents are willing to spend on a digital camera............19 ...............................................................................................................................................19 6.7 Pricing importance when making a purchase of a digital camera...............................20 ...............................................................................................................................................21 6.8 Does price reflect on the quality of the digital camera?..............................................22 6.9 Does past purchases of similar products influence your purchase decision?.............23 6.10 You will only buy a digital camera when there is a price discount..........................24 6.11 A digital camera brand endorsed by a celebrity makes a difference in your purchase decision...............................................................................................................................26 6.12 You will purchase a digital camera when the brand is easily avaliable at most retail outlets.................................................................................................................................27 6.13 Friends and family influence your decision in purchasing a particular digital camera ............................................................................................................................................29 6.14 Does the brand indicate the quality of the digital camera?.......................................30 6.15 Does branding provide assurance to the reliability of the digital camera?...............32 6.16 You tend to purchase digital cameras of a brand that is attractive in design............33 6.17 Advertisements cause you to be aware of digital camera brands?............................34 6.18 Do advertisements motivate you to purchase digital cameras?.................................35 Page 2 of 65

6.19 You tend to purchase a digital camera that is featured at the retail outlets?.............36 6.20 You tend to make purchase decision of digital camera based on the frequency of online website updates from different brands....................................................................38 6.21 You will tend to make purchase decision based on individual digital camera model marketing, rather than the brands advertising..................................................................39 6.22 You will purchase digital camera based on the warranty service and period provided ............................................................................................................................................41 6.23 Do free training services motivate you to purchase the digital camera?..................42 6.24 Would you send your digital camera for servicing/repair if your camera is faulty within warranty period? ....................................................................................................44 6.25 You will purchase a brands digital camera based on the operating opening days and hours of the service center...........................................................................................45 6.26 You will purchase a brands digital camera based on the response of the technical assistance hotline................................................................................................................47 6.27 Pearson Chi Square test..............................................................................................48 ...............................................................................................................................................50 6.28 Correlations................................................................................................................50 6.29 One way ANOVA......................................................................................................53 Conclusions..........................................................................................................................54 7 Recommendations for Further Research.......................................................................55 7.1 Other independent variables........................................................................................55 7.2 Sample size...................................................................................................................55 7.3 Other research methodology........................................................................................55 8 Appendices.........................................................................................................................56 8.1 Copies of Data Collection Survey Forms....................................................................56 8.2 Tables not included in the body...................................................................................63 8.3 References....................................................................................................................64

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Title Page

This is the Marketing Research and Analysis on an investigation into factors influencing consumers choice of digital camera in Singapore.

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Executive Summary

This Marketing Research and Analysis report provides an investigation into the factors influencing consumers choice of digital camera in Singapore. It aims to explore the issues based on findings of 24 literature review articles. Four hypotheses such as Branding, Marketing, Pricing and Services were identified as major factors affecting the consumers purchase decision of digital camera. An overview of the industry will be highlighted together with the purpose and research objectives of the study. Literature reviews has been be analysed to enhance the reliability and validity of the study. Research methods will also be discussed and a questionnaire of 27 questions will be generated based on the subjects identified and research instruments. Convenience sampling will be used to survey the respondents taking into consideration the limitations faced. The results of the questionnaire will be entered in SPSS data analysis software, to generate statistical information on the purchase decision of consumers choice of digital camera with relation to the identified hypotheses. In essence, the research aims to ascertain the motivational reasons behind the purchase intention of consumers towards digital camera and what factors, both internal and external, influences their choices. The charts and tables generated will be used mainly to establish the relationship among various variables. Analysis of Variance (ANOVA), Independent Samples t Test and Chi-Square are some of the tests that will be used to identify relationships on different levels. Recommendations for further research will be listed to cover the depth of the report and identify areas for improvement. This is because, in current times, every mobile phone has a camera and not before long, the mobile phone camera will push the digital cameras to the decline stage. Marketers must therefore think of marketing strategies to capture back their market share.

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Introduction

How do consumers decide which particular brand of digital camera to purchase? This is an eternal question that marketers continue to ponder over. The consumer buying behaviour is an important research area with direct impact on the marketing process of a firm. A firms ability to establish and maintain satisfying exchange relationships requires an understanding of buying behaviour. Buying behaviour is the decision processes and acts of people involved in buying and using product (Boonlertvanich 2009). One of the questions being asked is whether the consumer buying behaviour differs where new technology products are concerned? The influence of technology is pervasive. High technological markets are categorized as complex. In addition, they exist under rapidly changing technological conditions that lead to shorter life cycles and the need for rapid decisions. Speed is very important in high tech markets and it is driven by increasing competition and the continually growing expectations of customers. Higher levels of risk caused by these factors will affect both the customer and the producer (Boonlertvanich 2009). As a result of these dynamic market conditions, high tech companies frequently depend on a product focus. In addition, a product focus is direct by the innovations in technology rather than by the needs of the customer. This subject often leads to neglect of a customer focus that is a key success on todays globally competitive markets (Boonlertvanich 2009). One way to focus on consumers is to study their decisions. Insight into customer decisionmaking process leads to a better development of an effective marketing strategy. Resulting strategies may be modified or altered depending upon how the consumer acquires, processes, and uses decision-making information when purchasing. Understanding buyingrelated decision-making behaviour of consumers is important for companies strategic marketing activities, and effective communication with different consumer segments can be helped by understanding the psychological processes that affect consumer behavior (Boonlertvanich 2009).

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3.1

Statement of the Problem

The first real consumer digital camera was introduced to the world in 1990. It was the Dycam Model I, and it produced black and white photos at a resolution of 320 x 240 pixels. As digital technology progressed, more opportunities opened up for a variety of uses. There was definitely a competition going on in the digital camera industry. Virtually every company was recognizing the trend and hurrying to get in the race, continually looking to be first with each new technology. Hence, it is of utmost importance to establish the factors influencing consumers choice of digital camera in Singapore and the inclination towards digital camera among the various age and gender groups (Marples 2008).

3.2

Purpose of the Study

The purpose of study is to provide an insight to the digital camera industry in Singapore on the factors that consumers consider when purchasing a digital camera. This will enable digital camera business marketers to align their strategies according to the consumers characteristics of Singapore, thereby creating suitability on their preferences. Marketing strategies can also be customised based on the findings.

3.3

Importance of the Study

The importance of the study is to provide meaning to the data collected. The results of this study will provide some insights and information of the market demand and trends for the existing digital camera industry and potential entrants.

3.4

Research Objectives

The main objective of the research is to reveal the factors that give rise to the formation of the behavioural intention and the effect on respondents when making digital camera purchasing decisions. The study specifically aims to highlight the relative importance of predictor variables such as attitude towards the behaviour, subjective norms, perceived behavioural control, and intention.

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4
4.1

Literature Review
Critical research of past research

Descriptive research was being conducted on the various elements in influencing consumers purchase intention, leading to their decision making. Four independent variables Branding, Marketing, Pricing, and Services have been identified as potentially responsible for influencing consumers choice of digital camera. Brand Brand selection reflects not only the consumer past experience but also emphasise on the attitudes of the product being influence by other members of the consumers family. A powerful branding would draw a significance in differentiation when it comes to buying decision consumer had to make (Hollis 2005). A brand would exists in consumer memory when consumer justified their purchase choice between alternatives selection by taking into consideration with more tangible factors such as product specifications, design, price and availability. With better brand management, marketer can better understand the drivers of demand and build on improving brand loyalty across the purchase life cycle. Brand extension is necessary to combat brand dilution because marketers know that consumers are more likely to go with brand with a higher brand trust rating (Li and Hitt 2010). Marketing Consumer behaviour in marketing is important as it helps an organisation to analyze its target market and flash out the right strategies in the communications aspect (Kirchler et al. 2010). Image variables for digital camera include country of origin, price, packaging, bundling, endorsement by celebrity etc. Culture, social forces, marketing mix and consumer behaviour affects MNC's attempt to penetrate market (Anderson and He 1998). Marketer must be aware of the social-cultural factors and how the consumers behave and react towards different products and marketing communication materials. The product's Page 8 of 65

utility and its appearance positively affect both product attachment and satisfaction (Mugge 2010). Organizations can market their product in a way whereby, consumers would grow fond and have an attachment towards the product. In that way, there can be a chance for a repeat purchase (Debono et al. 2003). Pricing Price has always been one of the key variables which consumers look at before making the decision of making a purchase. Pricing plays an important role when a consumer wants to make a purchase (Yuan and Han 2011). Consumers often depend on the prices and features of current cameras to make purchase decisions. An increase in the digital camera industry actually relies massively on research of consumers reaction to price (Carranza 2010). Consumers usually believe that a higher price results in higher quality (Kirchler et al. 2010). Studies confirm that consumers psychologically perceive higher quality is linked to a higher price. Consumers form price expectations and these expectations influence their purchasing decision. Consumers whom observed higher historical cost form higher price tolerance and search less (Yuan and Han 2011). Services Service is an intangible asset of any organization today. Service relationships occur when a customer has repeated contact with the same service provider (Gutek et al. 1999). It measures different social mechanisms used in the interaction between a customer and the service provider. Some examples of such interactions are product servicing, product training and interaction with sales personnel before and after purchase. Service actions would inevitably reflect the image of an organization in the frame mind set of consumers (Smith and Bolton 2002). A service provider could affect satisfaction rating and in some cases the content of recalled experience are assimilated toward customer satisfaction (Schwarz and Schwarz 2001).

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4.2

Key Hypotheses

The hypotheses had been distinctly formulated such that each of them can be empirically tested on, individually and collectively. The hypotheses were principally realistic and adequate in supporting the overall framework and objective of the research. behavioral relationship in consumers purchase intent. The first hypothesis tests on the perception of the brand which is a critical role in consumers' product purchase. From the findings, it indicated that majority of consumers have a strong inclination towards branding in their purchases. The second hypothesis assesses the significance of product marketing in consumers' purchase decision. Through the findings, it revealed the focal determinant of product marketing in consumers decision making. The third hypothesis evaluates whether the products pricing influences consumers' choice. Judging from the findings, it signified consumers strong faith in higher priced products which directly forms higher price tolerance and less search involvement. The last of the four hypotheses evaluates if the provision of services encourages consumers selection of a particular digital camera. Again, consumers had indicated this as an imperative element in their purchase consideration. These hypotheses were constructed to examine the intrinsic factors such as opinions, attitudes and

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5
5.1

Research Method
Subjects

Due to the nature of the survey and because time is of the essence, only digital camera users were approached to undertake the survey. A fixed alternative survey questionnaire was administered to a sample size of 100 respondents which consists of both male and female genders. Four age groups and income levels were used to analyse the factors influencing the purchase decision among various groups of professionals, managers, executives, technicians, self-employed and students.

5.2

Research Instruments

A descriptive research design will be elected for this research study. Descriptive research allows the collection of a wide range of reliable information and statistics to determine if similar findings in the same research can be applied to the local digital camera users. The questionnaire herein used has been designed in close relation to our hypotheses, in facilitating the cross referencing and analysis of the correlation between the variables. 27 questions will be generated for the survey by using a mixture of closed questions and measurement scale to determine the significant issues and respondents decisions on identified factors.

5.3

Data Collection Method

The questionnaire will be printed in hard copy to minimise respondents errors. Surveys are administered face to face to clarify any queries for the same reason. This research design serves as a platform in helping to identify the key processes and methods used in collecting and analysing the statistical data (Hutchinson and Harwood 2009). The collection of data will be done through various places such as shopping malls, places of work, social network and personal contacts. The survey questionnaire method enables participants to answer the questions speedily and easily, in turn encouraging participation of 100%, with a swift turnaround of responses.

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5.4

Research Hypothesis and Statistical Analysis

SPSS software will be used for data collation and analysis. Data gathered will be transferred into SPSS so as to further analyse the findings. Tests for significant associations and differences will be analysed using the identified factors as a base and the variance between the different age groups and genders.

5.5

Assumptions

The research conducted here is largely to test how those variables identified could influence the consumers decision making. As all respondents participating in the questionnaire are digital camera users, it is on the pretext of assumptions that their knowledge is sufficient to comprehend the questions. The population has a generally even mix of different age groups and gender, which provides a good basis for comparison based on a sample size of 100.

5.6

Limitations

There are several limitations when conducting the research to find out the relationship between the identified variables (branding, marketing, pricing, and services) which affect purchase decision of a digital camera. Firstly, a certain level of data inaccuracy may appear as the questionnaires were administered to a randomly selected sample frame of 100 participants. These may not be the complete representative of all the entire digital camera population. Hence, a sample size of probably 2000 would probably be more appropriate as a larger sample size would mean a smaller margin error and more accurate data. In addition, more sampling methods could have been explored as convenience sampling may not be sufficient for this research. Other factors could also occur such as when respondents do not really understand the survey questions due to the sentence structure of the questions. Having such an issue, respondents could be confused which eventually leads to answers that might not be of their true belief. Page 12 of 65

Results of the Study

Statistics currently own gender N Valid Missing Mean Std. Error of Mean Median Mode Std. Deviation Variance Skewness Std. Error of Skewness Kurtosis Std. Error of Kurtosis Range Minimum Maximum Sum 100 0 1.50 .050 1.50 1a .503 .253 .000 .241 -2.041 .478 1 1 2 150 job 100 0 2.86 .125 3.00 3 1.247 1.556 .334 .241 -.730 .478 4 1 5 286 camera 100 0 1.14 .035 1.00 1 .349 .122 2.107 .241 2.488 .478 1 1 2 114

a. Multiple modes exist. The smallest value is shown

6.1

Gender
gender Cumulative Frequency Percent 50.0 50.0 100.0 Valid Percent 50.0 50.0 100.0 Percent 50.0 100.0

Valid

male female Total

50 50 100

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Interpretation: From the analysis, the team deliberately chose a fair sample size of 50 males and 50 females to justify our findings. the team wanted to find out whether differences in the two genders could have different purchasing behaviours and perceptions. It could also possible due to each and every individual having different belief, values, lifestyles and cultures. .

6.2

Occupation
job Cumulative Frequency Percent 14.0 27.0 34.0 9.0 16.0 100.0 Valid Percent 14.0 27.0 34.0 9.0 16.0 100.0 Percent 14.0 41.0 75.0 84.0 100.0

Valid

professional manager executive technician student Total

14 27 34 9 16 100

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Interpretation: From the analysis, it indicates that 34% of the respondents are holding a position of an Executive. The second most that were surveyed were the managers. It could be assumed that these group have more disposable income and would influence their purchasing behaviour of digital cameras.

6.3

Respondents that currently own a camera

currently own camera Cumulative Frequency Percent 86.0 14.0 100.0 Valid Percent 86.0 14.0 100.0 Percent 86.0 100.0

Valid

yes no Total

86 14 100

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Interpretation: From the analysis, it indicates that 86% of the sample size owned a camera. This shows that the digital camera in this age has become a popular item to own and consumers are willing to spend more on such IT gadgets.

6.4

Age of respondents
age Cumulative Frequency Percent 25.0 28.0 25.0 22.0 100.0 Valid Percent 25.0 28.0 25.0 22.0 100.0 Percent 25.0 53.0 78.0 100.0

Valid

18-24 25-30 31-35 above 35 Total

25 28 25 22 100

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Interpretation: From the analysis, the majorities of the respondents generally fall in the 25 to 30 years old category. In other categories, it is quite evenly distributed and It could be assumed, consumers of different age groups may be interested in purchasing cameras.

6.5

Monthly income of respondents

monthly income Cumulative Frequency Percent 18.0 29.0 26.0 27.0 100.0 Valid Percent 18.0 29.0 26.0 27.0 100.0 Percent 18.0 47.0 73.0 100.0

Valid

below $2000 $2000-2999 $3000-3999 $4000 and above Total

18 29 26 27 100

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Interpretation: From the analysis, the majority of the respondents standing at 29% fall under the income of $2000 to $2999. It could be assumed, consumers who are not a high income earners (below $2000) may also be a potential owner of a digital camera even though its price is steep. This could be due to several reasons such as peer influence, social status, being IT savvy.

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6.6 Maximum amount that respondents are willing to spend on a digital camera
What is the maximum amount that you are willing to spend on a digital camera? Cumulative Frequency Valid $1-100 $101-200 $201-300 $301-400 above $400 Total 11 20 34 16 19 100 Percent 11.0 20.0 34.0 16.0 19.0 100.0 Valid Percent 11.0 20.0 34.0 16.0 19.0 100.0 Percent 11.0 31.0 65.0 81.0 100.0

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Interpretation: From the analysis, majority of the respondents were willing to spend $201-$300 on a digital camera. This could be because of the higher quality of life and the recognition of the shift in technology to stay updated and look 'cool'.

6.7

Pricing importance when making a purchase of a digital camera

Price plays an important factor when purchasing a digital camera? Cumulative Frequency Percent 2.0 4.0 63.0 31.0 100.0 Valid Percent 2.0 4.0 63.0 31.0 100.0 Percent 2.0 6.0 69.0 100.0

Valid

disagree neutral agree strongly agree Total

2 4 63 31 100

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Interpretation: From the analysis, it can be assumed that most respondents agree and strongly agree that price plays an important factor when purchasing a digital camera. It could be that consumers do not recognise the need to purchase a camera when the price is high as it is not a necessity.

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6.8

Does price reflect on the quality of the digital camera?

Cumulative Frequency Percent 21.0 8.0 45.0 26.0 100.0 Valid Percent 21.0 8.0 45.0 26.0 100.0 Percent 21.0 29.0 74.0 100.0

Price reflects on the quality of the digital camera? (Eg. High price = good quality)

Valid

disagree neutral agree strongly agree Total

21 8 45 26 100

Interpretation: From the analysis, 45 % of the respondents out of N=100 agree that the pricing reflects on the price of the quality of the digital camera, another 25% of the respondents strongly agreed with this question. The remaining of the sample size were either neutral or disagreed. From the above graph, the inference drawn that price does reflect the quality of digital cameras in the minds of the consumers.

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6.9 Does past purchases of similar products influence your purchase decision?
Does past purchases of similar products influence you in your purchase decision? Cumulative Frequency Valid neutral agree strongly agree Total 15 48 37 100 Percent 15.0 48.0 37.0 100.0 Valid Percent 15.0 48.0 37.0 100.0 Percent 15.0 63.0 100.0

Interpretation: From the analysis drawn above, 85% of the respondents either agreed or strongly agreed to whether past purchases of similar products influence their purchase decisions. The assumption can be made that most consumers draw on their experience and knowledge to make purchase decisions, consumers would then be able to make an

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informed purchase decision using historical cost so that cognitive dissonance would not occur.

6.10 You will only buy a digital camera when there is a price discount
You will only buy digital camera when there is a price discount. Cumulative Frequency Valid disagree neutral agree strongly agree Total 2 56 34 8 100 Percent 2.0 56.0 34.0 8.0 100.0 Valid Percent 2.0 56.0 34.0 8.0 100.0 Percent 2.0 58.0 92.0 100.0

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Interpretation: From the above analysis, it can be assumed that 55% of the consumers were neutral about purchasing a digital camera when there is a price discount. 35% of respondents agreed with the above question, another 5% strongly agreed, the remaining disagreed with the question. It could be assumed that even if there were price discounts, consumers would not be aware of it. Secondly, consumers might not want to wait for a price discount as it occurs occasionally and would rather pay a higher price based on Singapore's high productivity and affluence.

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6.11 A digital camera brand endorsed by a celebrity makes a difference in your purchase decision
A digital camera brand endorsed by a celebrity makes the difference in your purchase decision." Cumulative Frequency Valid strongly disagree disagree neutral agree strongly agree Total 1 15 48 26 10 100 Percent 1.0 15.0 48.0 26.0 10.0 100.0 Valid Percent 1.0 15.0 48.0 26.0 10.0 100.0 Percent 1.0 16.0 64.0 90.0 100.0

Interpretation: From the analysis, respondents were mostly neutral about a celebrity endorsing the digital camera brand. 48% of respondents were neutral, 26% agreed, 10% strongly agreed, 15% disagreed and 1% strongly disagreed to the question. It could be Page 26 of 65

assumed that most consumers were oblivious or did not pay attention to celebrity endorsements. It could be because of how educated consumers have become and might feel that these celebrities are highly paid for brand endorsements. This would make consumers question the real quality of the product.

6.12 You will purchase a digital camera when the brand is easily avaliable at most retail outlets
You will purchase a digital camera when the brand is easily available at most retail outlets. Cumulative Frequency Valid neutral agree strongly agree Total 8 71 21 100 Percent 8.0 71.0 21.0 100.0 Valid Percent 8.0 71.0 21.0 100.0 Percent 8.0 79.0 100.0

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Interpretation: From the analysis, 71% of the participants agreed that they would purchase a digital camera when the brand is easily available at most retail outlets, 21% strongly agreed to this question and the remaining 8% were neutral about this question. It could be inferred that consumers in Singapore lead a hectic lifestyle and would like to conveniently purchase a product that is available at retail stores and not go through all the trouble to deliberately go to a particular retail store just to get that particular brand.

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6.13 Friends and family influence your decision in purchasing a particular digital camera
Your family and friends influence your decision in purchasing a particular digital camera brand. Cumulative Frequency Valid strongly disagree neutral agree strongly agree Total 1 48 39 12 100 Percent 1.0 48.0 39.0 12.0 100.0 Valid Percent 1.0 48.0 39.0 12.0 100.0 Percent 1.0 49.0 88.0 100.0

Interpretation: From the analysis, 48% of the respondents were neutral, 39% agreed, 12% strongly agreed and the remaining 1% strongly disagreed. It could be assumed that family and friends did have a mild influence consumers decisions in purchasing a digital camera Page 29 of 65

brand. There might be a few reasons why 39% and 12% of the sample size agreed. An example would be, strong Asian values in Singapore that pay particular attention to family and friends which might influence buying behaviour. The second issue that could contribute to why some were neutral is that the younger Gen Y have become more individualistic due to globalisation and could have manipulated the above output.

6.14 Does the brand indicate the quality of the digital camera?
The brand indicates quality of the digital camera. Cumulative Frequency Valid neutral agree strongly agree Total 13 64 23 100 Percent 13.0 64.0 23.0 100.0 Valid Percent 13.0 64.0 23.0 100.0 Percent 13.0 77.0 100.0

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Interpretation: From the analysis, 64% of respondents agreed, 23% strongly agreed and the remaining 13% were neutral to the above question. It could be assumed that brand does indicate the quality of a digital camera in the mind of consumers. This could be because of the past purchase of other products which did not meet up to the consumers' expectations. Consumers might perceive that a strong brand would have maintained standards and would not fail or disappoint the consumer.

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6.15 Does branding provide assurance to the reliability of the digital camera?
The brand provides assurance to the reliability of the digital camera. Cumulative Frequency Valid neutral agree strongly agree Total 7 59 34 100 Percent 7.0 59.0 34.0 100.0 Valid Percent 7.0 59.0 34.0 100.0 Percent 7.0 66.0 100.0

Interpretation: From the analysis, 59% of the respondents agreed to the above question, 34% strongly agreed and the remaining 7% were neutral to the question. It could be assumed that brand provides an assurance to the consumers that the digital camera would not fail on them. This assumption could be linked with chapter 6.14's analysis where consumers agreed that the brand is linked to quality. Page 32 of 65

6.16 You tend to purchase digital cameras of a brand that is attractive in design
You tend to purchase the digital camera of a brand that is deemed attractive in design Cumulative Frequency Valid strongly disagree disagree neutral agree strongly agree Total 1 3 36 44 16 100 Percent 1.0 3.0 36.0 44.0 16.0 100.0 Valid Percent 1.0 3.0 36.0 44.0 16.0 100.0 Percent 1.0 4.0 40.0 84.0 100.0

Interpretation: From the analysis,

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6.17 Advertisements cause you to be aware of digital camera brands?

Advertisements cause you to be aware of the digital camera brands. Cumulative Frequency Valid strongly disagree disagree neutral agree strongly agree Total 1 10 21 63 5 100 Percent 1.0 10.0 21.0 63.0 5.0 100.0 Valid Percent 1.0 10.0 21.0 63.0 5.0 100.0 Percent 1.0 11.0 32.0 95.0 100.0

Interpretation: From the analysis, 63% of the respondents agreed that promotional activities such as advertisements caused them to be aware of digital camera brands. 5% strongly agreed, 21% were neutral and the remaining 1% strongly disagreed. It could be assumed that promotional activities were indeed key in promoting the brands of digital cameras. Page 34 of 65

6.18 Do advertisements motivate you to purchase digital cameras?

Do advertisements motivate you to purchase digital camera? Cumulative Frequency Valid disagree neutral agree strongly agree Total 16 56 24 4 100 Percent 16.0 56.0 24.0 4.0 100.0 Valid Percent 16.0 56.0 24.0 4.0 100.0 Percent 16.0 72.0 96.0 100.0

Interpretation: From the analysis, 56% of the respondents were neutral, 24% agreed, 4% strongly agreed and the remaining 16% disagreed. It could be assumed that even though advertisements made consumers aware in chapter 6.17's analysis, it did not motivate consumers to make a purchase of a digital camera. It could be because they did not see the Page 35 of 65

need for the product or have become more aware of advertisements as most Singaporeans are educated and undertake more research and not make their purchase because of an advertisement.

6.19 You tend to purchase a digital camera that is featured at the retail outlets?
You tend to purchase a digital camera that is being featured and prominently displayed at the retail outlet. Cumulative Frequency Valid disagree neutral agree Total 3 32 65 100 Percent 3.0 32.0 65.0 100.0 Valid Percent 3.0 32.0 65.0 100.0 Percent 3.0 35.0 100.0

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Interpretation: From the analysis, it could be assumed the most consumers tend to purchase a digital camera that is featured prominently and displayed at retail outlets. This could be because consumers might be tempted by the good visual merchandising and influence them to make a purchase on the spot.

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6.20 You tend to make purchase decision of digital camera based on the frequency of online website updates from different brands.
You tend to make purchase decision of digital camera based on the frequency of online website updates from different brands. Cumulative Frequency Valid disagree neutral agree strongly agree Total 7 73 15 5 100 Percent 7.0 73.0 15.0 5.0 100.0 Valid Percent 7.0 73.0 15.0 5.0 100.0 Percent 7.0 80.0 95.0 100.0

Interpretation: From the analysis, 73% of the respondents were neutral to the question, 15% agreed, 5% strongly agreed and 7% disagreed with the question. It could be assumed Page 38 of 65

that consumers did not find online website updates useful as a digital camera is a tangible product and do not require software updates or additional information on the camera. There is no need for frequent updates of the brand other than new releases or other major issues.

6.21 You will tend to make purchase decision based on individual digital camera model marketing, rather than the brands advertising.
You will tend to make purchase decision based on individual digital camera model marketing, rather than the brands advertising. Cumulative Frequency Valid disagree neutral agree strongly agree Total 1 54 41 4 100 Percent 1.0 54.0 41.0 4.0 100.0 Valid Percent 1.0 54.0 41.0 4.0 100.0 Percent 1.0 55.0 96.0 100.0

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Interpretation: From the analysis, 54% were neutral, 41 % agreed, 4% strongly agreed and 1% disagreed. It could be assumed that consumers might make purchase decisions based on individual camera model marketing rather than as a whole. It could be because of the linkage between the brands reliability in chapter 6.15. Consumers might have the perception that a if advertised under a particular brand, it would not influence their purchasing behaviour.

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6.22 You will purchase digital camera based on the warranty service and period provided
You will purchase digital camera based on the warranty service and period provided. Cumulative Frequency Valid strongly disagree neutral agree strongly agree Total 1 7 39 53 100 Percent 1.0 7.0 39.0 53.0 100.0 Valid Percent 1.0 7.0 39.0 53.0 100.0 Percent 1.0 8.0 47.0 100.0

Interpretation: From the analysis, 53% of the respondents strongly agreed that they would purchase a digital camera based on warranty service and period provided. 39% of the respondents agreed, 7% were neutral and 1% strongly disagreed. It could be assumed that Page 41 of 65

most consumers would purchase on the after sales service provided by a digital camera brand as it gives them the confidence and assurance to make the purchase. .

6.23 Do free training services motivate you to purchase the digital camera?
Do free training services motivate you to purchase the digital camera? Cumulative Frequency Valid strongly disagree neutral agree strongly agree Total 4 12 44 40 100 Percent 4.0 12.0 44.0 40.0 100.0 Valid Percent 4.0 12.0 44.0 40.0 100.0 Percent 4.0 16.0 60.0 100.0

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Interpretation: From the analysis, it could be assumed that free training services influenced and motivated consumers to purchase a digital camera. There could be a few underlying reasons and one of them might be consumers would want to make their dollar and product worth the purchase. A second underlying reason might be some cameras are complicated and have many hidden functions a layman consumer would not have known. Consumers in Singapore might also have the 'if it is free, why not?' attitude as it will not hurt their pocket.

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6.24 Would you send your digital camera for servicing/repair if your camera is faulty within warranty period?
Would you send your digital camera for servicing/repair if your camera is faulty within warranty period? Cumulative Frequency Valid neutral agree strongly agree Total 1 26 73 100 Percent 1.0 26.0 73.0 100.0 Valid Percent 1.0 26.0 73.0 100.0 Percent 1.0 27.0 100.0

Interpretation: From the analysis, 73% of the respondents strongly agreed to sending their camera for servicing if it was faulty during the warranty period. The other 26% agreed and Page 44 of 65

remaining 1% was neutral. It could be assumed that consumers would make full use of the warranty and after sales service . Consumers might also perceive that their warranty was 'paid' or 'bought' and bundled with the price when they made their purchase.

6.25 You will purchase a brands digital camera based on the operating opening days and hours of the service center.
You will purchase a brands digital camera based on the operating opening days and hours of the service center. Cumulative Frequency Valid neutral agree strongly agree Total 67 21 12 100 Percent 67.0 21.0 12.0 100.0 Valid Percent 67.0 21.0 12.0 100.0 Percent 67.0 88.0 100.0

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Interpretation: From the analysis, 67% of the respondents were neutral, 21% agreed and the remaining 12% strongly agreed that they would purchase a digital camera based on the operating hours of the service centre. It could be assumed that consumers were not bothered by whether the service centre did not open on weekends or after office hours. It could be that consumers would find every avenue and make some time to make the trip to get their camera repaired if it was under warranty.

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6.26 You will purchase a brands digital camera based on the response of the technical assistance hotline.
You will purchase a brands digital camera based on the response of the technical assistance hotline. Cumulative Frequency Valid neutral agree strongly agree Total 26 34 40 100 Percent 26.0 34.0 40.0 100.0 Valid Percent 26.0 34.0 40.0 100.0 Percent 26.0 60.0 100.0

Interpretation: From the analysis, 40% of the respondents strongly agreed, 34% agreed and the remaining 26% remained neutral about purchasing a camera based on the response of the technical assistance hotline. It could be assumed that consumers in Singapore are living in a fast-paced environment and will not tolerate waiting on the phone for too long to

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be offered assistance. This could be substantiated also because Singapore has made a shift to the service sector and Singaporeans have a certain expectation of services.

6.27 Pearson Chi Square test

Case Processing Summary Cases Valid N monthly income * currently own camera 100 Percent 100.0% N 0 Missing Percent .0% N 100 Total Percent 100.0%

monthly income * currently own camera Crosstabulation currently own camera yes monthly income below $2000 Count % within monthly income $2000-2999 Count % within monthly income $3000-3999 Count % within monthly income $4000 and above Count % within monthly income Total Count % within monthly income 16 88.9% 24 82.8% 24 92.3% 22 81.5% 86 86.0% no 2 11.1% 5 17.2% 2 7.7% 5 18.5% 14 14.0% Total 18 100.0% 29 100.0% 26 100.0% 27 100.0% 100 100.0%

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Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 1.695a 1.796 .126 100 df 3 3 1 sided) .638 .616 .722

a. 4 cells (50.0%) have expected count less than 5. The minimum expected count is 2.52.

Symmetric Measures Asymp. Std. Value Interval by Interval Ordinal by Ordinal N of Valid Cases a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. c. Based on normal approximation. Pearson's R Spearman Correlation .036 .034 100 Errora .102 .103 Approx. Tb .354 .338 Approx. Sig. .724c .736c

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Interpretation: A chi-square test was used to evaluate whether consumers who currently own a camera was related to the monthly income of these individuals. The test was not statistically significant in the above figure as most respondents owned a camera regardless of their income level.

6.28 Correlations
Descriptive Statistics Mean price brand massmedia service 3.7620 3.8517 3.4100 4.1800 Std. Deviation .44376 .44438 .35205 .41923 N 100 100 100 100

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Correlations price price Pearson Correlation Sig. (2-tailed) Sum of Squares and Crossproducts Covariance N brand Pearson Correlation Sig. (2-tailed) Sum of Squares and Crossproducts Covariance N massmedia Pearson Correlation Sig. (2-tailed) Sum of Squares and Crossproducts Covariance N service Pearson Correlation Sig. (2-tailed) Sum of Squares and Crossproducts Covariance N *. Correlation is significant at the 0.05 level (2-tailed). **. Correlation is significant at the 0.01 level (2-tailed). .007 100 -.040 100 -.090 100 .176 100 .014 100 .039 .698 .724 .089 100 -.215
*

brand 1 .214* .033

massmedia .090 .371 1.398

service .039 .698 .724

19.496

4.170

.197 100 .214

*

.042 100 1

.014 100 .567

**

.007 100 -.215* .032 -3.963

.033 4.170 19.550

.000 8.782

.042 100 .090 .371 1.398

.197 100 .567

**

.089 100 1

-.040 100 -.609** .000

.000 8.782 12.270

-8.900

.124 100 -.609

**

-.090 100 1

.032 -3.963

.000 -8.900 17.400

Interpretation: To assess the size and direction of the linear relationship between

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Independent Samples Test Group Statistics Levene's Test for gender N Mean Std. Deviation Equality of p r i c e price b Equal variances r assumed a Equal variances n not assumed brand d Equal variances m assumed .173
dimension1 dimension1 dimension1

Std. Error Mean

male Variances female

50 50

3.8200 3.7040

.43566 .06161 t-test for Equality of Means .44856 .06344 95% Confidence Interval of the Sig. (2Mean Std. Error Difference Lower -.05949 Upper .29149

F male .854 female

Sig. 50 .358 50

t 3.7967 1.312 3.9067 1.312

df 98

tailed) .44707 .193 .43923 .193

Difference Difference .06323 .11600 .08843 .06212 .11600 .08843

97.917

-.05949

.29149

male female

.678 -1.241 50 3.4000

98

.218 .36589 .34107 .218

-.11000 .05175 .04823 -.11000

.08863

-.28589

.06589

a Equal variances s not assumed s massmedi Equal variances m a assumed e Equal variances d not assumed i service Equal variances a assumed s Equal variances e not assumed r v i c e

50 -1.241 3.4200 97.969

.08863

-.28589

.06589

2.473

.119

-.283

98

.778

-.02000

.07074

-.16038

.12038

-.283

97.520

.778

-.02000

.07074

-.16039

.12039

.135 male female

.714 50 50

.190

98

.850 .42457 .850 .41798

.01600 .06004 .01600 .05911

.08426

-.15121

.18321

dimension1

4.1880 .190 97.976 4.1720

.08426

-.15121

.18321

Interpretation: An independent sample t test was used to compare the price, brand, massmedia and service reported by the participants. The t-test was statistically significant.

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6.29 One way ANOVA

ANOVA Sum of Squares price Between Groups Within Groups Total brand Between Groups Within Groups Total massmedia Between Groups Within Groups Total service Between Groups Within Groups Total 3.425 16.071 19.496 1.522 18.027 19.550 2.375 9.895 12.270 1.841 15.559 17.400 df 4 95 99 4 95 99 4 95 99 4 95 99 .460 .164 2.811 .030 .594 .104 5.701 .000 .381 .190 2.006 .100 Mean Square .856 .169 F 5.062 Sig. .001

Interpretation: A one-way between group analysis of variance was used to investigate the impact that price had between groups and within groups, brand impact between groups and within groups, massmedia impact between groups and within groups and lastly the service impact between groups and within groups. The ANOVA was statistically significant between price, brand, massmedia and service.

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Conclusions
In conclusion, the study demonstrated the existence of correlation between price, brand, massmedia and service of digital camera, consumer would in this case seek a balance among all four research factor except the majority of respondent still rank service as a key for purchasing a particular brand of digital camera. The study accorded us the insightful consumers perception on price and the service that came along with it and to a larger extend its superior brand equity. Notably the research also shows that majority of the respondent currently own a digital camera, hence for manufacturer to entice consumers to part with the dollars for an additional digital camera, a lot effort would be focus on Research & Development of new digital camera so that the advancement in newer generation digital camera will help persuade prospective consumers to make purchase, also not forgetting the marketing aspect of the product would be as vital because strong reason would be very needed to encourage consumers to purchase another digital camera with special promotion or trade-in program to create impulse purchase of the digital camera, lastly from the research we observe that consumers these day expect a top notch after sale services provided by the manufacturer, if sufficient attention and after sales care is provided by manufacture of digital camera it will surely go a long way when in come to branding of their digital camera in turn reap in the sales of their digital camera and on the longer run approach with excellent services the manufacture would be able to gain more market share then manufacture of digital camera who does not embrace and emphasis the after sales service as much.

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7
7.1

Recommendations for Further Research

Other independent variables

The research result may not be adequately sufficient for the depth of study. The inclusion of additional independent variables should be considered beyond the current mix. Moreover classification of consumer behaviour into various streams namely psychological, social, cultural and personal is another sound alternative measure. 7.2 Sample size

To enhance reliability, validity and consistency of the research findings, garnering a sample size greater than 100 will surely pave the way for a more conclusive representation of the population and in turn portraying an all-encompassing representative cross-section of the respondents at large, the group recommended sample size should be between 1000-3000 people for future research. 7.3 Other research methodology

The administration of qualitative research should be examined apart the adopted closeended survey by quantitative research. Qualitative research is typically outlined by way of focus groups, face-to-face interviews. The team suggest that both types of research methods to go hand-in-hand that would in turn provide a more thorough, in-depth investigation of the research.

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8
8.1

Appendices
Copies of Data Collection Survey Forms

BACHELOR OF COMMERCE BUS335 Marketing Research and Analysis Digital Camera

Purpose of Study The aim of the research seeks to understand Digital Camera phenomenon in terms of the main influences leading to the purchase hype, directing consumers' choice of brand purchase.

Declaration All information provided by respondents will be kept confidential and findings will be used solely for the purpose of the academic research.

Acknowledgment A special thanks to all the respondents for the valuable time and participation in the survey completion. Page 56 of 65

For Official Use S/N: Remarks:

Section A - Participants demographics Please tell us about yourself by answering all questions to the best of your knowledge. Please tick in the box accordingly 1. Age 18 24 25 30 31 35 Above 35

2. Gender Male Female

3. Your monthly income Below $2,000 above 4. What is your current or most recent occupational status? Professional Technician Manager Self-employed Executive Student Others $2,000 - $2,999 $3,000 - $3,999 $4000 and

5. Do you own a digital camera presently? Yes No

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Section B Questionnaire (22 questions)

a) Price This section of the survey seeks to find out individuals underlying attitudes on the price for their digital camera purchase intention.

1. How much are you willing to spend on digital camera? (Maximum budget) $001 - $100 $301 - $400 $101 - $200 above $400 $201 - $300

2. Price is an important factor when comes to purchasing digital camera.

Strongly Disagree Disagree Neutral Agree Strongly Agree

3. Price reflects on the quality of the digital camera? (E.g. high price = good quality)
Strongly Disagree Disagree Neutral Agree Strongly Agree

4. Historical pricing of the digital camera brand guides you in your purchase decision.
Strongly Disagree Disagree Neutral Agree Strongly Agree

5. You will only buy digital camera when there is a price discount.
Strongly Disagree Disagree Neutral Agree Strongly Agree

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b) Brand - it is about understanding how the brand is viewed in the digital camera market This section seeks to find out your experience in association with digital camera branding.

6. A digital camera brand endorsed by a celebrity makes the difference in your purchase decision.
Strongly Disagree Disagree Neutral Agree Strongly Agree

7. You will purchase a digital camera when the brand is easily available at most retail outlets.
Strongly Disagree Disagree Neutral Agree Strongly Agree

8. Your family and friends influence your decision in purchasing a particular digital camera brand.
Strongly Disagree Disagree Neutral Agree Strongly Agree

9. The brand indicates quality of the digital camera.

Strongly Disagree Disagree Neutral Agree Strongly Agree

10. The brand provides assurance to the reliability of the digital camera.
Strongly Disagree Disagree Neutral Agree Strongly Agree

11. You tend to purchase the digital camera of a brand that is deemed attractive in design (e.g. colour, shape)
Strongly Disagree Disagree Neutral Agree Strongly Agree

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12. Will you repurchase the same brand?

Strongly Disagree Disagree Neutral Agree Strongly Agree

c) Market Communication it is the impression of the product based on the reputation of the brand name.

This section seeks to understand your purchase behavior towards Apple products.

13. Advertisements cause you to be aware of the digital camera brands.

Strongly Disagree Disagree Neutral Agree Strongly Agree

14. Do advertisements motivate you to purchase digital camera.

Strongly Disagree Disagree Neutral Agree Strongly Agree

15. You tend to purchase a digital camera that is being featured and prominently displayed at the retail outlet.
Strongly Disagree Disagree Neutral Agree Strongly Agree

16. You tend to make purchase decision of digital camera based on the frequency of online website updates from different brands. Strongly Disagree Disagree Neutral Agree Strongly Agree

17. You will tend to make purchase decision based on individual digital camera model marketing, rather than the brands advertising. Strongly Disagree Disagree Neutral Agree Strongly Agree Page 60 of 65

d) Services These are the additional services which I feel are essential upon purchase of digital camera

This section seeks to find out the services of value adding to digital camera purchase

18. You will purchase digital camera based on the warranty service and period provided.
Strongly Disagree Disagree Neutral Agree Strongly Agree

19. Do free training services motivate you to purchase the digital camera?
Strongly Disagree Disagree Neutral Agree Strongly Agree

20. Would you send your digital camera for servicing/repair if your camera is faulty within warranty period?
Strongly Disagree Disagree Neutral Agree Strongly Agree

21. You will purchase a brands digital camera based on the operating opening days and hours of the service center. Strongly Disagree Disagree Neutral Agree Strongly Agree

22. You will purchase a brands digital camera based on the response of the technical assistance hotline. Strongly Disagree Disagree Neutral Agree Strongly Agree

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~End of Questionnaire~

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8.2

Tables not included in the body

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8.3

References

Anderson, P. M., He, X. 1998. Price influence and age segments of Beijing consumers, The Journal of Consumer Marketing, 15(2), 152-16 Boonlertvanich, K. 2009. "Consumer Buying and Decision Making Behaviour of A Digital Camera in Thailand" Institute of International Studies, Ramkhamhaeng University, Bangkok, Thailand, RU. Int. J. vol. 3 (1) Carranza, J. E. 2010. "Product Innovation and Adoption in Market Equilibrium: The Case of Digital Cameras "International Journal of Industrial Organization 28 (6): 604 618 Debono, K. G., Leavitt, A., Backus, J. 2003. "Product Packaging and Product Evaluation: An Individual Difference Approach": 513521 Gutek, B. A., Bhappu. A. D., Troth, M. A. L., Cherry, B. 1999. "Distinguishing between Service Relationships and Encounters." Journal of Applied Psychology 84 (2): 218-233 Hollis, N. 2005. "Branding Unmasked." Marketing Research 17 (3): 24-29 Hutchinson, E., Harwood, E.M. 2009 Data collection methods series. Part 5: Training for data collection. Journal of Wound, Ostomy, and Continence Nursing: Official Publication of The Wound, Ostomy and Continence Nurses Society / WOCN 36 (5): 476-481 Kirchler, E., Fischer, F., Hlzl, E. 2010. "Price and its Relation to Objective and Subjective Product Quality: Evidence from the Austrian Market." Journal of Consumer Policy 33 (3): 275-286 Li, X., Hitt, L. M. 2010. "Price Effects in Online Product Reviews: An Analytical Model and Empirical Analysis." MIS Quarterly 34 (4): 809

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Marples, G. 2008. "The History of Digital Cameras A Short but Bright Picture, The HistoryOf.net: 2-4 Mugge, R. 2010. "Product attachment and satisfaction: Understanding consumers postpurchase behaviour". The Journal of Consumer Marketing, 27(3), 271-282 Schwarz, B., Schwarz, N. 2001. "Service Experiences and Satisfaction Judgments: The Use of Affect and Beliefs in Judgment Formation." Journal of Consumer Psychology 11 (1): 29-41 Smith, A. K., Bolton, R. N. 2002. "The Effect of Customers Emotional Responses to Service Failures on their Recovery Effort Evaluations and Satisfaction Judgments." Academy of Marketing Science Journal 30 (1): 5-5 Yuan, H., Han, S. 2011. "The Effects of Consumers Price Expectations on Sellers Dynamic Pricing Strategies "Journal of Marketing Research 48 (1): 48-61

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