Journal of Management (JOM)

Volume 5, Issue 4, July – August 2018, pp. 465–480, Article ID: JOM_05_04_050
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ISSN Print: 2347-3940 and ISSN Online: 2347-3959
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FACTORS AFFECTING CONSUMER BUYING

BEHAVIOR TOWARDS MOBILE PHONES
Vishesh
Research Scholar, University School of Management Studies,
GGS Indraprastha University, Dwarka, New Delhi

Prof Sanjiv Mittal

Professor, University School of Management Studies,
GGS Indraprastha University, Dwarka, New Delhi

Dr Shivani Bali
Associate Professor, Department of Operations,
Lal Bahadur Shastri Institute of Management, Dwarka, New Delhi

ABSTRACT
Mobile phones have become basic element of communication. Indian mobile
market has witnessed a paradigm shift and emerged as the fastest growing market for
mobile handsets globally. Consumers are showing preference towards smartphones
as it is being used for a variety of purposes. The aim of the present study is to
investigate the factors that affect the consumer buying behavior towards mobile
phone. The study was undertaken on 638 mobile phone users of Haryana state of
India. The data was analyzed using factor analysis and multiple regressions. With the
help of factor analysis ten decision factors of consumer buying behavior were
derived. On these ten factors a multiple regression analysis was performed with
perceived satisfaction of consumers in terms of buying decision as a dependent
variable. The findings showed that “Speed & Performance” has the highest positive
impact on the satisfaction followed by “brand & advertising” and “recommendations
& reviews”. The study provided useful insights of the consumer buying behavior
towards mobile phones.
Keywords: consumer buying behavior, smart phones, features of mobile phones,
factors affecting buying behaviour, perceived purchase satisfaction
Cite this Article: Vishesh, Prof Sanjiv Mittal and Dr Shivani Bali, Factors Affecting
Consumer Buying Behavior towards Mobile Phones. Journal of Management, 5(4),
2018, pp. 465–480
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 Factors Affecting Consumer Buying Behavior towards Mobile Phones

1. INTRODUCTION
Globally, with the advent of technology, mobile feature phones converted to smart phones
have become paramount for individuals. A recent report “The Mobile Economy 2017” by
GSMA (Global System Mobile Association) shows that there are 4.8 billion unique
subscribers in 2015 and by 2020 it is supposed to reach 5.7 billion. The penetration rate,
which stands at 63%, will grow to 72% by 2020. The report also identifies 81% growth in
smart phone market globally. This clearly highlights the opportunity for mobile phone
companies globally.
Indian mobile market has witnessed a paradigm shift. India is one of the fastest growing
markets for mobile handsets globally and is expected to reach 13.5% market share by 2019 as
per the joint report of ASSOCHAM & KPMG, 2016. As per the same report the key drivers
of the growth are popularity and availability of mobile handsets and improved availability of
data services in India. Affordable price of the mobile handsets is yet another key driver of
growth. Mobile phone usage has changed drastically. As observed in the market, besides
communications, people are using mobile phones for social networking, gaming, Internet
surfing, entertainment, camera, online shopping, banking and many more. As per the survey
by ASSOCHAM (2011), a lot many Indians are changing their mobile phones in less than
two years. Nearly 39 per cent of the respondent said that they switch to a new phone in less
than two years because of new applications and technology. Consumers are purchasing smart
phones at a notable pace and see them as personal expressions of their lifestyle (Castells et al,
2006). The government is also doing their bit to fuel the demand for mobile phones. It has
started various schemes like Digital India, relaxation in FDI norms, Make in India etc. to
boost the usage, manufacturing and sale of mobile phones. Apart from this, the increasing
GDP per capita has increased the real disposable income. Growing young population and
changing life styles are also the key determinants of growth of mobile phone industry. So it
can be clearly envisaged that smart phones market holds an immense opportunity for
companies.
If companies want to overpower their competition it becomes imperative for them to
understand how consumers decide for smart phone purchase or what is the consumer buying
behavior towards them. The present study aims towards providing insights for consumer
buying behavior towards smart phones so that it can help companies in deciding type of
smartphones to be introduced in the market. This has changed the competition scenario in the
market where once the dominant position of Nokia has been taken by Samsung and the likes.
Hence the market players in the smartphone industry have understood that studying mobile
phone buying behaviour has to become a regular feature as the product life cycle has
shortened. The pace of introduction of new models/features in the existing series or launching
of new series in smartphones has gone up tremendously with almost every brand launching
more than 10 models each year. E.g. Globally Apple, Xiaomi, Samsung or OnePlus range
sees atleast 1-2 new introduction in their existing series with IPhone 8 & X, Xiaomi Mi6,
Samsung S9, S9+ and OnePlus 6 etc. respectively.
The study aims at determining the factors that influence the consumers to buy mobile
phones and their impact on the customer satisfaction with respect to their purchase decision.
According to Senecal et al (2005) marketers should analyze consumer’s mind where they
buy what they buy and why they buy. Why they choose a particular product is a mystery
because there is a lot to find out. Only those who had recently purchased (i.e. in past six
months) a mobile phone in the price range of Rs 10,000 – Rs 20,000 formed part of the study.
It aims to be useful to the mobile set manufacturers as this would give them the insight about
the technological and product related factors that attract the consumers to select the handset

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 Vishesh, Prof Sanjiv Mittal and Dr Shivani Bali

while purchasing the same. Study done in Ghana by Dziwornu (2013) also highlights the
importance of features and design in influencing consumers purchase decisions.

2. LITERATURE REVIEW
Consumer behaviour is “the decision process and physical activity individuals engage in,
when evaluating, acquiring, using or disposing of goods and services (Loudon & Bita, 1994).
Understanding the consumer behavior concept is very critical for survival and profitability of
firm. Consumers are central to organizational success and the organizations that understand
this are more successful in their business operations (Blackwell, Miniard, & Engel, 2006).
Peers have more influence amongst teenager’s smart phone buyers compared to parental
influence (Lachance et al., 2003). Bristol and Manglegurg (2005) say “Peer influence plays a
key role in an individual’s decision making towards purchase of consumer goods.” Consumer
behavior in context of mobile phones has been studied widely throughout the globe,
indicating the importance of price, technology and brand as the major significant factors for
decision-making. According to Karjaluoto et al (2005) study of factors affecting consumer
choice for mobile phones in Finland found that price, brand and size of the phone are the
main factors in purchase of any new mobile phone. It also highlighted the importance of
innovative services, multimedia, design, outside influence and reliability as significant
factors. Ling et al (2006) surveyed College students to identify their preference for the mobile
phones. The result showed that physical appearance, size and menu of the mobile phone are
the most determinant factors affecting the buying behavior of consumers. Xihao, H., &
Yang, J. (2006) too measured the influence of the reference group on the purchasing behavior
and found “a strong influence of reference group on cell phone consumers in their purchasing
decisions. Informational influence on consumers found to be highest compared with
utilitarian influence and value-expressive influence.” Mark and Sharples (2009) found
usability as the most important factors of mobile choice; other features like aesthetics and
cost too were important. Consumer behavior towards mobile phones has also been segregated
with respect to age groups and gender differences and substantial research has also been done
in that respect. One such research is by Singh and Goyal (2009) who examined importance of
physical appearance, brand, value added features, core technology features, price and post-
sale services across three different age groups (18-30, 30-50, and 50 above) and two gender
groups. Overall physical appearance got the highest importance followed by brand and post-
sale services. Also Physical appearance, brand, value added features, and core technical
features influence the age group of 18-30 years more than consumers of other age groups.
The consumers of age 50 years and above are price sensitive as they have given greater
importance to price than any other age group. Male respondents have highest rated brand
closely followed by physical appearance. On the other side, female respondents gave highest
importance to physical appearance and least importance to core technical features. Based on
research by Khasawneh (2010) on mobile phones, it was found that products brand name
influence customers’ evaluation and affect to their buying decision. This can also be
supported by the research work of Norazah (2013), brand name was found to have a
significant effect on the demand for smartphones among Malaysian students. Ahmed and
Qazi (2011) investigated buying and re-buying mobile purchase behaviour of 500 University
students in Pakistan for adoption and consumption patterns. Consumer prefers service
provider offering services to suiting to their requirements and features of a mobile phone.
Favorite brand is Nokia and preferred service provider U-phone. Islam (2011) studied mobile
phone adoption amongst farmers in the rural area of Bangladesh. Nokia was the most
preferred brand due to affordability.
Singla and Bansal (2011) researched on factors that affect choice criteria of consumer for
mobile handset and the study revealed that important features of handsets are price, product

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 Factors Affecting Consumer Buying Behavior towards Mobile Phones

design, and availability and brand image. Osman (2012) in their study found that consumers
made purchases on the basis of design and other consideration of mobile functionality.
Mokhlis, Yakkop (2012) when investigated consumer behavior towards mobile phones in
Malaysian University came to the conclusion that seven elements describe cell phone
purchase decision – innovative features, image quality, price, recommendation, durability &
portable aspects, media influence and post sales services. The most important among them
was innovative features followed by recommendation and price. Saif, Razzaq, Amad, and Gul
(2012) in their study of 100 people found the factors that motivate consumers to buy a mobile
phone in Pakistan are price, new technology features, brand name and size/shape. Amongst
them, consumer value new technology features as the most important variable that motivates
them to go for a new handset purchase decision. Malaysian Communications and Multimedia
Commission undertook a survey in 2012 to determine the mobile phone usage among youth
in Malaysia and found that young adult aged between 15-29 are more prone to technology
and innovation features and are likely to embrace new technology faster. Further, new
function and new innovative functionality of hardware and operating system are most
important product features considered by smart phone users while making purchase decision
(Lay-Yee, 2013). According to Ibrahim, Kassim, & Mohamood (2013) Promotion mix
included celebrity endorsement, marketing frequency and exchange offers as the determining
factors. It was also found that social influence works more on young customers while
purchasing smart phones. Consumers collect information on product from various sources,
co-workers, friends, family etc; before making a product purchase. Sata (2013) showed that
in case of mobile purchase price and product features are important followed by brand name
and durability in Ethiopia. Azira, R. et al. (2015) examined factors influencing purchasing
intention of Smartphone among university students in Malaysia and deduced that “Three of
four variables in study namely product features, brand name, and social influence have a
significant relationship with product purchase intention and have positive correlation amongst
them” Kaushal, SK and Kumar Rakesh (2016) conducted study of 159 students and young
professionals from city of Lucknow to find out presence of any significant difference
between factors like Compatibility, Product Features, Price, Brand, relative advantage,
dependency, social influence and convenience that affect consumer's (male or female)
purchase of Smartphone. Results of the study revealed that only Compatibility, Dependency
and Social Influence had a significant effect on purchase intention of Smartphone users. Only
convenience factor showed a significant difference between male and female purchase
intention. Kushagra et al (2017) in their elaborate study involving 417 respondents on Impact
of Brand Cues on Young Consumers’ Preference for Mobile Phones using Conjoint Analysis
and Simulation Modelling deducted that the attributes or brand cues influencing youth can be
broadly classified as extrinsic cues and intrinsic cues. Extrinsic cues were found to be brand
name and price while Camera quality, RAM, Operating system and battery power were
intrinsic cues.
Literature review for consumer behavior towards mobile phones clearly highlights the
importance of technology, price, brand, recommendations and product features. Not only this,
it also highlights that this preference differs across the demographics of the consumer and
marketers must take into account this difference while formulating strategy to sell their
product.

3. RESEARCH OBJECTIVES
The objectives of the study are:
1. To identify the decision factors that affects the buying behavior of consumer with
respect to mobile phones.

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 Vishesh, Prof Sanjiv Mittal and Dr Shivani Bali

2. To study the influence of decision factors on the perceived satisfaction of

consumers with respect to mobile phone buying decision.

4. RESEARCH DESIGN
The study employed survey method to gather data. A structured questionnaire was designed
to collect the data. It was divided into three sections. The first section seeks information
regarding the brand of phone the respondent owns and the usage pattern. In the second part of
the questionnaire respondents rated different attributes related to mobile phones they consider
on the basis of their agreement on a five point likert scale with 5 being strongly agree and 1
being strongly disagree. In this section they were also asked to rate their perceived
satisfaction with the buying decision of the current mobile phone they own. Finally, the third
section collects the demographic information of the respondent.
Exploratory factor analysis (EFA) was applied to the collected data to identify the
decision factors of consumer buying behaviour. A total of 47 items were identified on the
basis of literature review and exploratory study. Further multiple linear regression was
applied to study the relationship between the identified factors of consumer behaviour with
respect to satisfaction while buying the mobile phone. A pilot study was done to test the
content validity. For pilot study the questionnaire was administered to 50 mobile phone users
who had purchased a mobile phone less than six months prior to survey and another 10
questionnaires were given to experts in the area of marketing. The suggestions given by them
with respect to wording of the question, sequence of the question etc. were incorporated as a
result of which construct of the face validity was checked. The instrument was also tested for
reliability using Cronbach alpha score. The value of Cronbach's alpha for 50 items was 0.8,
which implied high internal reliability of the research instrument.

4.1. Sampling and Data Collection

Respondents for the study were the residents of Haryana State, who has purchased a mobile
phone during the past six months in the price range of Rs10,000 - Rs20,000. The
questionnaire was widely distributed by employing quota-sampling method. Most populated
district from each of the four regions of Haryana was taken for the study. From each of the
four districts, Faridabad, Yamunanagar, Bhiwani and Hisar, 200 respondents were taken for
the survey. A total of 800 respondents were interviewed personally, out of which 638
provided complete information. Therefore, out of 800 forms filled by different respondents
638 were taken on records for data analysis. 162 forms were rejected owing to omission,
error data, missing data etc. this constitute an effective response rate of 79.75%.

5. DATA ANALYSIS AND INTERPRETATION

Table 1 Demographic Profile of Respondents
Variables Category Frequency Percentage
18 years and upto 25 years of
361 56.58%
age
Age 18 years and upto 45 years of
241 37.77%
age
45 years and above 36 5.64%
Male 470 73.67%
Gender
Female 168 26.33%
Students and home makers 332 52.04%
Occupation Service professional 149 23.35%
Businessman 157 24.61%

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 Factors Affecting Consumer Buying Behavior towards Mobile Phones

Most of the respondents were in the age group of 18-25 years, i.e. 56.58%. In terms of
gender, approximately 73.67% of the respondents were male, for occupation approx. 52%
belonged to a category of students and homemakers.
The usage of mobile phone is not limited to making and receiving calls, rather people use
it for messaging, checking mails, listening to music, browsing on net and many more. It has
become a mini computer for them. Weekly usage patterns of the consumers for various
activities are summarized in Table 2.

Table 2 Mobile Phone Usage (Weekly)

<1 hr 1-2 hrs 3-5hrs > 5 hrs
Make/Receive calls 50% 29% 13% 8%
Send Text Messages 19% 23% 41% 17%
Checking Emails 45% 40% 13% 2%
Listening to Music 20% 29% 37% 14%
Browsing the Internet 34% 38% 20% 8%
Others (Specify) 53% 47% 0% 0%

6. FACTOR ANALYSIS
Once the data was collected on different parameters/variables then the grouping of these
variables into factors was done using factor analysis. Before using factor analysis to study the
first objective various assumptions of factor analysis were tested.

6.1. Kaiser-Meyer-Olkin (KMO) Test for Sampling Adequacy

The Kaiser-Meyer-Olkin (KMO) measures the sampling adequacy (which determines if the
sample is adequate for applying factor analysis) which should be close to 0.5 for a
satisfactory factor analysis to proceed. Kaiser & Rice (1974) recommends 0.5 (value for
KMO) as minimum (barely accepted), values between 0.7-0.8 acceptable and values above
0.9 are rated as superb. The calculated value of KMO was 0.767, which is found to be
acceptable.

6.2. Bartlett’s test of Sphericity

Bartlett’s test is another indicator of the strength of the relationship among variables.
Bartlett's sphericity test indicates Chi-Square value, which is found to be 17890.733 with df
as 741 and significance level of 0.000. Based on these indicators, factor analysis was found to
be suitable to be applied on 50 items. Table 3 presents the results of KMO and Bartlett's test
of sphericity.

Table 3 KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.767
Approx. Chi-Square 17890.733
Bartlett's Test of Sphericity Df 741
Sig. .000
Further Principle Component Analysis with Varimax rotation method was used to extract
factors having eigen values greater than 1. Accordingly ten factors were derived from factor
analysis. These 10 factors were Price Advantage, Physical Dimensions, Brand & Advertising,
Reviews & Recommendations, Speed & Performance, Battery, Camera, Availability, Design
& Colour and Exchange Possibility, which explain about 71% of cumulative variance.
Finally, the result of factor analysis along with the factor names is summarized in the Table 4.

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 Vishesh, Prof Sanjiv Mittal and Dr Shivani Bali

The factors were also checked for their reliability by using cronbach’s alpha. The values
of cronbach alpha for all the factors were more than 0.7, which is acceptable. Hence factors
were found to be reliable for measuring the consumer buying behavior (also shown in table 4)

Table 4 Showing result of Factor Analysis

Cronbac
h's alpha
Fac Fac Fac Fac Fac Fac Fac Fac Fac Fac
Factors value i.e.
1 2 3 4 5 6 7 8 9 10
reliabilit
y
Fac 1: Price
Advantage
The price
advantage that I
get through
freebies offered
0.94
with a phone
9
influences my
buying decision
favorably towards
that phone.
While choosing
on a phone to buy,
availability of a
0.94
flexible price plan
1
(interest free
EMIs etc.) affects
my choice.
I would prefer
buying a phone
online, if there is
significant price 0.56
difference 9
between its online 0.929
price and price in
offline stores.
The cash-
back/payback
(through
credit/debit
cards/PayTM etc.)
0.84
available during
6
purchase makes
me favorably
disposed towards
buying that
phone.
Free Internet data
bundled with a
new phone
purchase will 0.93
influence my 6
buying decision
favorably towards
that phone.
Fac 2: Physical
Dimensions

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 Factors Affecting Consumer Buying Behavior towards Mobile Phones

The thickness of
the phone doesn’t
0.84
matter to me
6
while making a
buying decision
The screen size of
the phone is an
important factor 0.77
for me while 2
making a buying
decision
I would prefer to
buy a large screen
phone, where I 0.87 0.869
can see the 1
pictures and
videos clearly.
I would prefer to
buy a phone, 0.67
where I can easily 1
read and type text
The weight of the
phone is an
important factor 0.86
for me while 7
making a buying
decision
Fac 3: Brand &
Advertising
Popularity of the
brand is an
important factor
0.72
for me while
4
making a decision
to purchase a
mobile phone.
Image of the
brand is an
important factor
for me, while 0.88
making a decision 8
towards buying a
phone of that
brand. 0.857
More often I see
the Ads of a
particular
brand/phone,
0.79
more favorably I
am predisposed
towards that
brand/phone.
Presence of brand
warranty for a
phone helps me 0.87
decide favorably 1
towards buying
that phone

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 Vishesh, Prof Sanjiv Mittal and Dr Shivani Bali

Fac 4: Reviews &

Reccomendations
The favorable
customer reviews
about a phone
0.91
helps me decide
2
favorably towards
buying that
phone.
The
recommendations
of my
friends/relatives
for any phone 0.80
makes me 5
favourably
disposed towards
buying that 0.809
phone.
The
recommendations
of the retail store
personnel for any
0.75
phone model
affect my decision
to purchase that
phone.
The review
ratings given for
0.83
any phone model
7
affect my
purchase decision.
Fac 5: Speed &
performance
Presence of a fast
processor in a
mobile phone is
0.54
an important
2
factor for me
while making a
buying decision
I would prefer a
phone that will
not hang while 0.71
performing 1
multiple
operations. 0.854
I would prefer a
phone that will
not heat up while 0.90
performing 5
multiple
operations.
The operating
system (Android
0.90
or Blackberry or
2
Windows) is an
important

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 Factors Affecting Consumer Buying Behavior towards Mobile Phones

decision factor for

me while making
a buying decision
for any phone.
Fac 6: Battery
Long battery life
in a phone makes
0.88
me predisposed
1
favorably towards
buying that phone
Fast battery
charging
capability in a
0.93
phone influences
6 0.929
my buying
decision towards
that phone.
I would prefer a
phone, whose
battery will last 0.86
longer and I don’t 3
have to charge the
phone often.
Fac 7: Camera
A good quality
camera in a phone
is an important
0.64
factor for me
6
while deciding
which phone to
buy.
Presence of
multiples cameras
(front and back) 0.876
in a phone 0.92
influences my 3
buying decision
towards that
phone.
I would prefer a
phone, which gets 0.90
me better pictures 9
clicked
Fac 8:
Availability
Online
availability of a
phone helps me 0.88
decide favorably 6
towards buying
that phone
I would prefer 0.721
buying phone
from a store that
0.84
sells multiple
7
brands so that I
can make a choice
between them

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 Vishesh, Prof Sanjiv Mittal and Dr Shivani Bali

(Multi Brand
Outlets (MBO)
Exclusive brand
stores offer me
complete range of
brand of my
choice, which 0.70
helps me make a 6
purchase decision
easily. (Exclusive
Brand Outlets
(EBO)
If a particular
brand’s service
centre is close to
me, it influences 0.62
my buying 6
decision favorably
towards that
phone.
Fac 9: Design &
Colour
I would prefer to
buy a phone that
0.81
is trendy i.e. has
5
some fashion
statement.
My predisposition
lies towards
0.78
buying phones
6 0.759
that appear rich &
stylish.
The overall
appearance/design
of a phone matter 0.82
to me while 2
making a buying
decision.
Fac 10: Exchange
Possibility
Availability of an
attractive
exchange offer for
my old phone
while purchasing
0.66
a new mobile
5
phone influences
my buying
decision favorably
towards that 0.713
phone.
Convenient
exchange process
(of older phones,
0.81
while buying new
2
phones)
influences my
buying decision

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 Factors Affecting Consumer Buying Behavior towards Mobile Phones

favorably towards
that phone.
If a new phone
helps me get good
value for my older 0.77
phone, I would 5
prefer buying that
phone.
3.96 3.35 2.96 2.96 2.80 2.65 2.47 2.46 2.09 1.97
Eigen Value
0 9 6 1 5 3 3 0 5 0
% variance 10.1 8.61 7.60 7.59 7.19 6.80 6.34 6.30 5.37 5.05
Explained 55 3 6 3 2 2 0 9 2 2
cumulative 10.1 18.7 26.3 33.9 41.1 47.9 54.3 60.6 65.9 71.0
variance (%) 55 68 74 67 59 61 01 10 82 34

7. RESEARCH MODEL
To study the second objective regression analysis was performed.
The research is exploratory in nature to find out which decision factors impacts the
satisfaction of mobile phone users. To study the relationship between multiple independent
variables (decision factors) and the dependent variable satisfaction with respect to mobile
phone buying decision, multiple regression analysis was applied. This is used to determine
the relative predictive importance of independent variables. (Williams and Monge, 2001)

Figure 1 Framework for consumer buying behavior i.e. Research Model

These ten factors were translated into ten research hypotheses given below:
H01: There exists no significant relationship between the Price Advantage through offers
and perceived satisfaction of the consumers with respect to mobile phone buying decision.
H02: There exists no significant relationship between the Physical dimensions and
perceived satisfaction of the consumers with respect to mobile phone buying decision.
H03: There exists no significant relationship between the Brand & Marketing and
perceived satisfaction of the consumers with respect to mobile phone buying decision.

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 Vishesh, Prof Sanjiv Mittal and Dr Shivani Bali

H04: There exists no significant relationship between the Recommendations and reviews)
and perceived satisfaction of the consumers with respect to mobile phone buying decision.
H05: There exists no significant relationship between the Speed & performance and
perceived satisfaction of the consumers with respect to mobile phone buying decision.
H06: There exists no significant relationship between the Battery life and perceived
satisfaction of the consumers with respect to mobile phone buying decision.
H07: There exists no significant relationship between the Camera Quality and perceived
satisfaction of the consumers with respect to mobile phone buying decision.
H08: There exists no significant relationship between the Availability and perceived
satisfaction of the consumers with respect to mobile phone buying decision.
H09: There exists no significant relationship between the Design & Colour and perceived
satisfaction of the consumers with respect to mobile phone buying decision.
H10: There exists no significant relationship between the Exchange Possibility and
perceived satisfaction of the consumers with respect to mobile phone buying decision.
The multiple regression model with k independent variables can be written as follows:
Y  0  1 x1  2 x2  ...........  k xk  
where, Y is the dependent variable and x1 , x2 ,......, xk are independent variables, and  i is the
regression coefficient, and  is the random error component. The value of the coefficient  i
determines the contribution of the independent variable xi , given that the other x variables are
constant and 0 is the y -intercept.
For this work the above translates to the following general equation:

Y (satisfaction)  1 DF1  2 DF2  ...........  7 DF7

A step-wise regression was performed by taking all seven decision factor scores as the
independent variables and the dependent variable is satisfaction of the consumers with
respect to mobile phone buying decision. Those variables that significantly influenced the
dependent variable would be considered as the influential decision factors.
At each level described above, the multiple correlation coefficient(R), the coefficient of
determination, adjusted R2 and coefficient Beta values of the model were computed. Those
variables with significance value less than 0.05 would be considered being influential
decision factors.
The list of most significant independent variables influencing the dependent variable can
be seen as follows in table 6.

Table 6 Regression Analysis Result

Constant 13.022
Unstandardized Standardized
Factors Satisfaction (B) Satisfaction (Beta)
Camera 2.370 .859
Speed & Performance 1.037 .376
Battery Life .476 .172
Brand & Advertising .296 .107
Price Advantage .250 .091
Reviews & Reccomendations .139 .050
Exchange Possibility .097 .035

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 Factors Affecting Consumer Buying Behavior towards Mobile Phones

N 638.000
R .965
R2 .932
F 1226.758
Probability > F .000
**p<.01
The above table shows that out of the ten independent factors, seven factors have been
found to have significant positive impact on the dependent variable i.e. satisfaction of the
mobile user with respect to their buying decision. Out of which camera has the highest beta
value indicating that this is the most important factor that influence the satisfaction level of
the mobile phone user followed by speed & performance and battery life. Product dimensions
design & colour and availability related factors were not significant in influencing the
perceived satisfaction of the consumer with respect to mobile phone buying decision.

8. CONCLUSION
The study has provided useful insights about the factors considered important by consumer
while buying smart phones. Ten decision factors of consumer buying behavior identified
through literature review with respect to smart phones were taken like i) Price Advantage, ii)
Physical Dimensions iii) Brand & Advertising iv) Reviews & Recommendations v) Speed &
Performance, vi) Battery Life vii) Camera viii) Availability ix) Design & Colour and x)
Exchange Possibility. A sample of 638 consumers from districts of Yamuna Nagar, Hisar,
Bhiwani and Faridabad in Haryana were surveyed to identify the factors considered important
from among the ten factors identified through literature review. The factor analysis results
showed that seven factors out of ten were found important by them viz. i) Price Advantage,
ii) Brand & Advertising iii) Reviews & Recommendations iv) Speed & Performance, v)
Battery Life vi) Camera and vii) Exchange Possibility.
Out of these seven factors, finally shortlisted through regression analysis revealed that
“Speed & Performance” has the highest positive impact on the customer satisfaction followed
by “brand & advertising” and “recommendations & reviews”.
This finding is useful for the manufacturer in designing a product with focus on the
technological aspect of the smartphone. Studies by Saif et al (2012), Sata (2013), Azira, R. et
al. (2015) etc. support the results. Advertising plays an important role in influencing buying
behaviour and popularizing the brand which eventually becomes one of the important factor
for building consumer intention and purchase towards smartphones. Studies by Singh and
Goyal (2009), Khasawneh (2010), Norazah (2013) etc. support the results. Consumers
normally give importance to recommendations and reviews received through social media,
blogs, communities, friends, colleagues etc. Studies by (Lachance et al., 2003). Bristol and
Manglegurg (2005), Xihao et al (2006) etc. support the results.

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