PREFERRED ATTRIBUTES IN PURCHASING MOBILE PHONE

AMONG SELECTED UM CBAE STUDENTS

A Research Presented to the Faculty of the

College of Business Administration
University of Mindanao
Davao City

Submitted by:

Elaine Janine R. Corcino

Precious Mariz O. Payag
Eyrick Paul F. Avila
Mardenn S. Pinero
Edna A. Alderite
 Chapter 1

THE PROBLEM AND ITS SETTING

Background of the Study

Technology advances consumer needs and wants changes and

innovating new products is very essential to meet consumer demands and

consumer criteria on judgment on mobile phones (Malasi,J.M. 2012). Nowadays,

mobile phone considered as a basic necessity no longer a luxury that made us

desire to own one as a part of daily living as a vital channel of communication.

Hence, the development of different attributes of the mobile phone industries

designed to attract customers and made the different attributes of a mobile

phone as main factor of purchasing it.

Globally, particularly in Kenya, the fast growth in mobile

communication penetration was recorded since the year 2002 according to the

2009 census of the Kenyan population released by the Kenya Central Bureau of

Statistics recorded at 38.6 million people. The population growth rate is

estimated at 2.69% per annum. 63.2% of Kenyan households owned at least a

mobile phone during the said year (GOK,2009). According to the study of Malasi,

J.M. (2012) on the influence of product attributes on mobile phone preference

among undergraduate university students of the United States International

University in Nairobi, Kenya, the study used a stratified random sampling method

according to the students majors the author found out that product attributes’ has

a significant influence on the undergraduate students’ preferences on mobile

phones. Likewise in Uk, a survey conducted by Mobile Youth Consultancy in

November 2009 among the university students Nokia tops on the survey that

consist of 1,000 university students as respondents 30% share for Nokia as their

most preferred mobile phone brand followed by Sony Ericsson with 27% share

and Blackberry with 2% share. It has also found out that the growing popularity of

Blackberry among university students because of its QWERTY keypads, which is

frequently used for social networking.IM and SMS (Dutta,2009).

Nationally, in Manila, Philippines, a market study conducted by TNS a

global customized research company conducted from November 2012 to

January 2013 consisting of 38,000 respondents in Metro Manila,75% of the

respondents surveyed used mobile phones to take photos or videos; 45% to

browse the internet; 44% to access social networking sites; and 37%.The

findings of the study states that Filipino consumers changed their perspective

from buying phones based on physical features in choosing a phone that their

personal experience will be enhanced. It also found out that a typical household

owns at least four of the following devices; a mobile phone (89%), smart phone

(53%), tablet (14%), desktop (39%),laptops/netbooks (37%), and smart tv (4%).

(By Philstar Philippines, July 2, 2012).

 Locally, in Davao City, a marketing research study conducted by Berico et

al. (2008) showed that the preference towards features of mobile phones by

consumers is high with a grand mean of 4.85. Among the features mentioned are

high quality built-in camera lenses, music player and web connections, these are

some of the most advanced features offered by mobile phone makers during

those times. The study also showed that consumers preferred mobile phones

which are very portable and comfortable. This is evident on the handsets that the

market have today. Observations revealed that as the variety of mobile phones

emerged the growing popularity of the local brands such as Cherry Mobile and

Myphone has also captured Dabawenyos’ liking for their preference of mobile

brand.
 Statement of the Problem

This study aims to identify what preferred attributes in purchasing mobile phone

among selected UM CBAE students that will seek to answer the following questions:

1. What is the profile of the respondent in terms of:

1.1 Age;

1.2 Gender;

1.3 Types of Student (working/non-working);

1.4 Program; and

1.5 Year Level?

2. What are the preferred attributes in purchasing mobile phone in terms of:

2.1 Price;

2.2 Social group;

2.3 Brand Name;

2.4 Product Features;

2.5 Durability; and

2.6 After sales service?

Hypothesis of the Study:

There is no significant difference on the preferred attributes in purchasing

mobile phone among selected UM CBAE students when analyzed according to

profile.
Theoretical and Conceptual Framework

This study is anchored by the study of Mesay Sata (2007), states that the

factors affects the decision buying on mobile phone devices consist of six

important factors these are the price, social group, product features, brand

names, durability, and after sales services. The author found out on his study

that consumers value price followed by mobile phone features as the most

important variable amongst all and acted as a motivational force that influences

the customers to go for a mobile phone purchase decision. And the study

suggested that the mobile phone sellers showed consider the above mentioned

factors to equate the opportunity.

Review of Related Literature

In this literature review, presents selected readings, survey results and

related studies conducted globally and locally to provide further support for this

study, few authors have done their research on the preferred attributes on

purchasing mobile phones.

Base on the study of Malasi, J. M. (2013) the author states that faced with

competing products, it is important for companies to understand how buyers go

about choosing between alternatives which he cited Palmer (2000) that also

states that a product is any tangible and intangible item that satisfies a need.
Consumers do not buy product as an end in them. They buy products for the

benefits which they provide. Products therefore comprise of complex bundles of

attributes which must be translated into benefits for customers. The main

challenge facing marketers today is how to influence the purchase behavior of

consumers in favor of the product, service, and experiences which they offer.

(Malasi,J. M. 2013).

Product attributes are the important tools in convincing the customers to

purchase such item. Asuamah,et al (2013) cited Gwin et al(2003) that states

product attributes are explained as the features that an object may or may not

possess which can be intrinsic and extrinsic. These attributes might bring positive

outcome to the person in possession of the product. The possession of a product

in addition to its features creates satisfaction to the consumer. (Jandaghi &

Hashemi,2010).

Agreed by the study of Khan,S. & Rohj,S. (2013) which the author cited

(Das,2012) that stated the intense competition in terms of product similarity and

increased number of competing brands in the market have led the marketers to

consider and study the factors that are influential in consumers’ brand choice

decisions and behaviors.

 Price

Price is the amount of the product in terms of money, the current price at

which an asset or service can be sold. On the study of Khan,S. & Rohj, S. (2013)

the author states that price has a vital role in consumer’s purchase decision,

most of consumer’s buying behavior and choices determinant is the price. It can

act as a dominant and the most important factor affecting the decision making

and purchase process. For youths, price can be a key factor of attraction, when

selecting out of varying mobile phone models; consumers usually prefer brands

of which they have familiarity with. Price of the mobile phone identified as a key

factor in selecting of mobile phones, especially on the young consumers. (Khan,

S. and Rohj, S. 2013). On their study the author cited (Nilson,1998;Kotler and

Amstrong,1989) that stated the product’s price may vary based on economic

conditions and perceptions of the consumers. It may affect the brands’ perceived

value. Price is used by many of the consumers as an indication of the brands’

quality which is a vital factor in the purchase decision.

Social Group

Social group is the external forces that affect the buying behavior of

individuals, the people around the consumer or the social influences and group of

people and social class of which the consumer belongs. Base on the study of

Khan, S. & Rohj, S. (2013) of which the author cited Schiffman and Kanuk (1997)

that states friend and family recommendations are becoming an increasingly

significant factor influencing the consumer brand choice and purchase decision.
Friends’ options and preferences are an important influential factor determining

the products or brand selection, especially for a single individual who lives alone.

Agreed upon by Ash (1973) and Venkatesen (1973) that found out peers who are

present at the time of purchase, play a crucial role in choosing a specific brand,

especially with concern to product and rational impact.

Brand Name

Brand name is an arbitrarily adopted name that is given by a manufacturer

or merchant to an article or service to distinguish it as produced or sold by that

manufacturer or merchant and that may be used and protected as a trademark.

Base on the study of CIRP (Consumer Intelligence Research Partners) the study

examines what phones Samsung and Apple buyers used previously and also

lists some demographic information. The study was based on four quarterly CIRP

surveys of smartphone buyers from July 2012 to June 2013. The survey

composed of 500 subjects who had purchased a mobile phone in previous 90

days. The survey resulted that Apple users switched to Samsung by

32%.Previous brand, buyers switched brands. (Larry Seltzer,2013).

Likewise, in the arcticle, top ten consumer brands in the Philippines,

Rosyel Sawali (2012) says, “Nokia topped the mobile phone brand as it provides

a wide rage of handsets models from basic to sophisticated models. In short,

there is a mobile phone that suits your budget and your lifestyle. Holds true for

most Filipinos, since we have embraced the latest technology on mobile, one
brand have been dominating the Philippines market.” Sawali R. (2012). Top ten

consumer brands in the Philippines.

Product Features

Product features is a function of an item which is capable of gratifying a

particular consumer need and is hence seen as a benefit of owning the item. In

business, a product feature is one of the distinguishing characteristics of a

product or service that helps boost its appeal to potential buyers, and might be

used to formulate a product marketing strategy that highlights the usefulness of

the product to targeted potential consumer.

 Moderating Variable

 Age

 Gender

 Types of Students (working/non-

working)

 Program

 Year Level

Main Variable

Preferred Attributes on Purchasing

Mobile Phone

 Price
 Social Group
 Brand Name
 Product Features
 Durability

 After sales service

 Figure 1
High Interactivity
Conceptual Framework Showing the Variables of the Study
Significance of the Study

The result of this study may be useful to help the following beneficiaries:

Mobile Phone Market Industry - the use of information presented in this

study, they would be able to enhance the attributes of their product gaining edge

over its competitors.

Mobile Phone Retailers- this study would help them to plan on what

brand and mobile attributes or features should they be selling in their stores.

Customer/Client – that they would be able to know what particular mobile

phone attributes that could help them in their shopping behavior.

Entrepreneur - they will have a basis on what are the attributes that must

be consider of their product when they plan to venture into this line of business.

Future researcher – which they could use a reference to any future

researches or exploration that involved on attributes affecting online shopping.

Definition of Terms

In this section the different terms used is translated for the

convenience of this study.

Preferred Attributes – This refers to the act of giving advantages to some

over others, these are the variables/indicators identified on purchasing mobile

phone

Mobile Phone – This refers to a mobile device used primarily for

communication through call and/or text. It is also known as a cellular or cell

phone.

University of Mindanao. – was established in 1946 and is one of the

oldest universities in Southern Philippines. It is a non sectarian school offering

the most number of academic programs in this part of the country. It is located in

Davao City. The largest private university in Mindanao with the most number of

PACUCOA accredited programs in the country today. University of Mindanao is

also the first academic institution in Mindanao with an institution in Mindanao

with an institutional ISO 9001:2008 Certification.

CBAE Students - College of Business Administration Education of the

University of Mindanao the school department of which the respondents belong.

Survey Questionnaire
Profile of Respondents

Name: (Optional)

Instruction: Please check the box for the appropriate answer.

1. Age 16 – 21 yrs old

22 – 27 yrs old

28 – 33 yrs old

2. Gender Male Female

3. Types of Student Working Non-Working

4. Program Business Economics

Entrepreneurship

Financial Management

Marketing Management

Real Estate Management

Office Administration

Human Resource Management

5. Year level 1st Yr. 2nd Yr.

 3rd Yr. 4th Yr.

5 – Strongly Agree

4 - Agree

3 - Neutral

2 - Disagree

1 – Strongly Disagree

Price 5 4 3 2 1

1. Offered special promos.

2. Offered coupons for a discount.

3. Offered affordable price.

4. The price is reasonable.

5. The price is appropriate for the

product.

Social Group 5 4 3 2 1

1. Recommended used by Family

member.
2. Influenced by circle of friends.

3. Trending on social media sites.

4. Influenced by classmates.

5. Endorsed by a popular
personality.

Brand Name 5 4 3 2 1

1. An Iphone mobile phone user.

2. A Samsung mobile phone user.

3. A Sony Erickson mobile phone

user.
4. A Nokia mobile phone user.

5. A Cherry Mobile phone user.

Product Features 5 4 3 2 1

1. With Bluetooth,Camera, dual

sim, video- recorder, MP3 player,
memory card reader and wifi
connectivity.
2. Long Battery Life span.

3. Good screen resolution.

4. User Friendly.

5. With complete applications.

Durability 5 4 3 2 1
1. With built in virus blocker.

2. The unit is water resistant.

3. The unit is scratch free.

4. Longer life span unit.

5. Dust and shock resistant unit.

After Sales Service 5 4 3 2 1

1. Good customer service provider.

2. Accessible customer service

hotline.

3. Accessible customer service

outlet.

4. Fast response to complaints.

5. Offering freebies and warranties.

Chapter 2
 METHOD

In this chapter, researcher presented the research design, research

subjects, research instruments, data gathering procedure, and statistical

treatment of data.

Research Design

The research design use in the study will be a descriptive research

method that aims to examine the preferred attributes on purchasing mobile

phone among selected students of the college of business administration

education.

Research Subjects

The study will be conducted at the University of Mindanao, Bolton St.,

Davao City. The respondents are the selected students of the college of business

administration education. That will have a total of seventy (70) respondents.

Research Instruments

The researchers will use a self constructed questionnaire. The

questionnaire consisted of two parts. The first part is the profile of the

respondents which includes age, gender, types of student (working or non-

working), program and year level.

 The second part is the preferred attributes on purchasing mobile phone

among selected students of the college of business administration education that

are the price, social group, brand name, product features, durability and after

sales service.

The questionnaire is guided by the choices below;

5 4.50-5.00 Strongly Agree When the item described by the statement is true
all the time.

4 3.50-4.49 Agree When the item described by the statement

is frequently true.

3 2.50-3.49 Neutral When the item described by the statement

is occasionally.

2 1.50-2.49 Disagree When the item described by the statement

is not true all the time.

1 1.0-1.49 Strongly Disagree When the item described by the statement

is rarely true.

Data Gathering Procedure

The following steps will use to conduct the study:

1. Administration of questionnaires. Researchers personally distribute the

questionnaire to respondents and retrieve the questionnaires.

2. Collation of Data. The researchers collated and tallied the data for

statistical analysis.
Statistical Treatment of Data

Mean. This is use to determine the attributes affecting online shopping

among selected students of the college of business administration education.

Chapter 3

This chapter contains the data gathered for the purpose of the study. The

discussion is mainly focused on the analysis and interpretation of the results

gathered in order to answer the questions posed in Chapter 1.

The analyses and interpretation are discussed under the following topics: (1)

level of participation in extracurricular activities of the senior CAS students,

(2) level of social values of senior CAS students, (3) difference in the level of

participation in extracurricular activities of senior CAS students when

analyzed by program, (4) difference in the level of social values of senior CAS

students when analyzed by programs, (5) relationship between participation

in extracurricular activities and social values of senior CAS students.

Level of Participation in Extracurricular Activities of Senior CAS Students

Table 1 shows the level of participation in athletes, literary-musical

competitions, campus clubs and organizations, and community outreach

programs of the senior CAS students enrolled in language, Social Science,

and Math-Science related courses.

-The interval scale was used to depict the level of participation of the senior

CAS students