Professional Documents
Culture Documents
A Thesis Presented to
Batangas State University-Lipa
In Partial Fulfillment
of the Requirements for the Program of
Bachelor of Science in Business Administration
Major in Marketing Management
By:
JAY R C. GUTIERREZ
CARL S. LUNAR
YVONNE JOY O. BARCELONA
AMY GALLO
JAMAICAH GARCES
JOYMEE L. IGLE
KIMBERLY B. MALIJAN
PATRICIA ANNE H. MANGOBOS
COLLEENE LYKA M. SAMONTE
May 2019
Smartphone Purchase Decision among Students of a State
University in Lipa City
ABSTRACT
The purpose of this study is to investigate the smartphone purchase decision of millennials using the
students of a state university in Lipa City, and its association with brand, convenience, dependency, price, product
feature, social influence and social needs concern. The data set is collected through self-administered questionnaire,
and convenient non-probability random sampling method. A total of 100 samples was collected from Batangas State
University-Lipa Campus. The findings revealed that all the variables have an influence but with different levels
ranging from somewhat influential to very influential on purchasing decision. This results indicate that the
smartphone purchase decision of students is influenced by (ranking from the greatest to least influential) product
features, convenience, dependency, social needs, brand, price, and social influences concern. The findings of this
study are limited by the number of respondents, area, and location. This study is important for marketers to understand
the consumer’s smartphone purchase decision to be more competitive.
In terms of monthly allowance, the table above The table shows the information sources which
shows that 36% of the respondents have below the respondents used for purchasing a smartphone.
Php2000, 30% have Php2001-Php 3000, 21% have 86% out of 100% used social media, while 55% out of
Php3001-Php 4000, and 13% have above Php4000. 100% used internet websites. 28% out of 100% used
Majority of the respondents among 100 TV/ Radio, while 34% out of 100% used their
samples have an income below Php2000, perhaps due Family/Friends. 13% out of 100% used magazines/
to most of the Generation Y are still studying without newspaper, and 19% out of 100% used blog/vlogs.
income. Lastly, 3% out of 100% used Dealers, and 0% used
other sources. This indicates that social media and
internet websites are the best platforms to place
Table 5 information about a smartphone nowadays.
Distribution of the Students in terms of Smartphone
Ownership
Brand of Smartphone Used Frequency Percent
Research Instrument
Apple 14 14
Samsung 24 24 Furthermore, the researchers used 100
Huawei 9 9 questionnaires to collect primary data from individual
Asus 4 4 respondents and these were physically distributed. The
Oppo 21 21 variables in the questionnaires are derived from a
Vivo 12 12 previous study which served as our reference and is
MyPhone 6 6 investigated through primary research.
Cherry Mobile 2 2
Nokia 1 1 The questionnaire was designed in English
Others 7 7 which is simple for respondents to understand and
Total 100 100 answer. A cover letter was also included as an
introduction to convey the purpose of the survey to the
The table above shows what smartphones the respondents.
respondents own.
The questionnaire was divided into two parts.
14% have smartphones from Apple, 24% have Part 1 collected demographic information such as
smartphones from Samsung, 9% have smartphones gender, age, program, monthly allowance, smartphone
from Huawei, 4% have smartphones from Asus, 21% ownership, and their information sources. Section B
have smartphones from Oppo, 12% have smartphones gathered information on respondents’ attitudes towards
from Vivo, 6% have smartphones from MyPhone, 2% each independent variable by using a 5-point Likert
have smartphones from Cherry Mobile, 1% have scale with 1 (strongly disagree) to 5 (strongly agree).
smartphones from Nokia, and 7% are from other
The questions asked are directly linked to the
brands. The results shows that Samsung, Oppo, Apple
objectives of this research, and there are 35 questions
and Vivo have a high market share on students.
in total. The respondents are allowed to select only one
answer for one question in the entire questionnaire. All
questions must be answered, and failing to do so may has a better understanding of the technological
void the questionnaire to be used in the data analysis. advancement and brand awareness in mobile phones,
influencing their purchasing decision.
Lastly, responses were tabulated and
interpreted using the following statistical tools: On the other hand, although item (5) which
implies students’ brand loyalty, has the lowest
Frequency and Percentage. These were used
weighted mean of 3.23, it was still somewhat
to determine the profile of the respondents.
influential in their purchase decision. The results
Weighted Mean. It was used to measure the suggest that smartphone brands should provide
level of influence of the variables on smartphone consumers with reasons to choose their products or
purchase decision of students. services since a company that communicates a clear
brand promise and actually constantly delivers this
Likert Scale. For easier data analysis, the promise over time, will build a solid number loyal
following numerical scales were used to quantify the customers (Amanda, 2016).
level of influence of the variables on the smartphone
purchase of students.
Table 8
Influence of Convenience on the Students’ Smartphone
4.50–5.00 – Strongly Agree (SA)/ Extremely Influential (EI) Purchase Decision
3.50–4.49 – Agree (A)/ Very Influential (VI) Items WM VI
2.50–3.49 – Neutral (N)/ Somewhat Influential (SWI)
1. I can accomplish my tasks more quickly
1.50–2.49 – Disagree (D)/ Slightly Influential (SI) 3.62 VI
1.00–1.49– Strongly Disagree (SD)/ Not at all influential by using a smartphone.
(NAI) 2. I prefer carrying a smartphone than a
3.99 VI
laptop or a computer.
RESULTS AND DISCUSSION 3. Smartphone saves my time in browsing
3.88 VI
the internet.
Table 7 4. I can keep in touch with my friends
Influence of Brand on the Students’ Smartphone anytime and anywhere using my 4.02 VI
Purchase Decision
smartphone.
Items WM VI
1. I prefer a well-known and prestigious 5. I can complete my assignments faster by
3.36 SWI 3.76 VI
smartphone brand. using a smartphone.
2. I prefer an elegant and fashionable Composite Mean 3.85 VI
3.42 SWI
smartphone.
As seen above, convenience is very influential
3. I prefer an internationally recognized
3.59 VI on smartphone purchase decision having a composite
smartphone with good reputation.
mean of 3.85. It can also be observed that all the items
4. I like the glamour of having a branded
3.26 SWI in the table was interpreted as very influential.
smartphone.
Convenience in smartphone refers to the
5. I consider myself to be loyal to my
3.23 SWI ability to use the smartphone at anytime and
smartphone brand.
anywhere, without having to port it in a fixed
Composite Mean 3.37 SWI workstation (Ding et al., 2011).
It can be viewed from the table that brand got The results justified that the convenience
a composite mean of 3.37 which had a verbal which smartphones provide (ranking from the highest
interpretation of somewhat influential. and lowest weighted mean) such as instant
communication, having smartphones as
It can also be seen that item (3) stating that laptops/computers, efficient accomplishment of tasks,
students prefer an internationally recognized more convenient web surfing, and easier access to
smartphone with good reputation, has the highest helpful information needed for school works greatly
weighted mean of 3.59 interpreted as very influential. affects their purchase decision. Not only in terms of
Researchers scrutinized the results and it could mean purchase, but also the demand of smartphones in
that the students prefer branded products because of the general.
perceptions of their performance, quality, service and
The result could also be due to the modern
the social status associated with the brand. Moreover,
influence and lifestyles where people want things to be
Mudondo (2014) suggests that the younger generation
done at the fingertips (Liew, 2012).
Moreover, just like what Black (2018) claimed, Table 10
convenience is now more of a necessity or demand than Influence of Price on the Students’ Smartphone
just a ‘nice to have’. Purchase Decision
Items WM VI
1. I prefer purchasing a smartphone for a
Table 9 3.03 SWI
Influence of Dependency on the Students’ Smartphone high price.
Purchase Decision 2. I prefer buying a smartphone for a
3.42 SWI
Items WM VI reduced price.
1. In my day-to-day life, usage of a 3. I think smartphones are expensive. 3.29 SWI
3.74 VI
smartphone is high. 4. I think the price is a vital element in
2. I feel anxious when my smartphone is 3.50 VI
judging the quality of a smartphone.
3.46 SWI
not with me. 5. I consider the price mainly when I
3. I always use my smartphone to deal with 3.60 VI
decide to buy a smartphone.
3.67 VI
my job and studies. Composite Mean 3.37 SWI
4. I feel easy to be on social media sites
using my smartphone than my personal 3.75 VI As viewed in the table, price is somewhat
computer. influential in the students’ smartphone purchase
5. I am completely dependent on my decision having a composite mean of 3.37.
3.16 SWI
smartphone. Item (5) where students consider the price
Composite Mean 3.56 VI mainly when they decide to buy a smartphone has the
highest weighted mean of 3.60 interpreted as very
Based from the table above, dependency got a influential. Upon studying, this could mean that most
composite mean of 3.56 which has a verbal of the respondents are price conscious and considers it
interpretation of very influential. It can also be as one of the driven factor in a purchase decision. The
observed that the items’ interpretations only ranges price of the device creates a great impact especially to
from somewhat influential to very influential. the people who still don’t have a fixed job (Hanif et al.,
Based on the results, item (4) that states 2010).
students greatly use smartphones for easier access to It can also be seen that item (1) where some of
social media sites got the highest mean of 3.75 which the respondents prefer purchasing a high-priced
was very influential. Next is item (1) garnering a 3.74 smartphone having the lowest weighted mean of 3.03
weighted mean also interpreted as very influential which was still interpreted as somewhat influential.
where students admit of having a high usage of The result suggests that these respondents are the type
smartphone in their day-to-day life. Followed by item of consumers that buy high priced brands (typically
(3) where students always use smartphone in dealing luxury goods), driven by either social adjunctive
with studies. attitudes that seek design, image, or social status or
Then, item (2) that says students feel anxious value-expression attitudes that seek product durability
when their smartphone is not with them, and item (5) or quality (Wilcox, Kim and Sankar, 2009).
having a mean of 3.45 and 3. 16 respectively which was While in item (2-4), some respondents prefers
two of the lowest but still interpreted as somewhat buying a smartphone for a discounted price. Some
influential. thinks that smartphones are expensive, and some
The results suggest that majority of the automatically thinks that the price is a vital element in
students are highly dependent on smartphones. Having judging the quality of a smartphone.
used and being engaged with smartphones allow Given the results, the value of money varies
consumers to have personal knowledge about their from different people. Some might think it is valuable
characteristics and the personal experience about how for a high price but others might think it does not worth
they work for them and how to satisfy their needs for the value of money. But price will always be a key
(Keaveney & Parthasarathy, 2001). concern of consumers before making any purchasing
This further affect consumers’ expectation for decision (Smith and Carsky, 1996).
purchase because of the benefits they are and will
extracting from it (Kuhlmeier & Knight, 2005).
Table 11 It can be viewed from the table that social
Influence of Product Features in the Students’ influences are somewhat influential in students’
Smartphone Purchase Decision smartphone purchase decision having a composite
Items WM VI mean of 3.13. It can also be observed that the items
1. I prefer a smartphone equipped with weighted means range from somewhat influential to
front and rear camera with more 3.89 VI very influential. Ranking the social influences based on
megapixels. their weighted mean, information of smartphones
2. I love a smartphone that can be found on the internet including social media platforms
3.95 VI
connected with On-The-Go USB. are the most influential for students since they are very
3. I prefer a smartphone that supports the exposed to it. It was followed by their consultations
4.03 VI
4G connection. with friends and families, current trend, peer
4. I will buy a smartphone that has a high persuasion, and lastly, the desire of having the same
4.12 VI phone with friends or families which has the lowest
capacity.
5. I will buy a smartphone based on the mean but still somewhat influential. The results also
3.53 VI indicate that in purchasing a smartphone, aside from
shape and sizes.
Composite Mean 4.06 VI surfing the internet for information, consumers tend to
get advice and opinions from their friends and families
It can be seen from the result that product based on the features of smartphones. Overall,
features got a composite mean of 4.06 which had a according to Nelson & McLeod (2015) consumers
verbal interpretation of very influential. It can also be especially students are prone be influenced by the
observed that all the items in the table was interpreted trends, their parents, peers and most of all, the internet
as very influential. This only indicates that students and social media in purchasing a smartphone. It is very
constantly consider a smartphone’s features both vital for companies to always provide information
hardware and software as one of the factors or criteria where and when the consumers need it.
before purchasing one, and feature has a strong ability
Table 13
to induce consumers’ purchasing decision. According Influence of Social Needs in the Students’ Smartphone
to the results, the researchers observed that majority of Purchase Decision
students prefer and give importance to a device’s high Items WM VI
battery and storage capacity. Followed by its ability to 1. I rarely use my smartphone. 2.98 SWI
support 4G connection, compatibility with USB OTGs, 2. I use my smartphone to connect with my
high resolution cameras, and last, aesthetics. In general, 4.02 VI
friends and family.
feature has a strong impact to consumers’ purchasing 3. I always play games on my smartphone. 3.49 SWI
decision (Weinberg, 2012). This explains that when
4. I do my assignments using a
consumers intend to purchase something, consumers 3.72 VI
smartphone.
will tend to make product’s feature as a basis for
evaluating a product 5. My smartphone is everything to me. 3.24 SWI
Composite Mean 3.49 SWI
Table 12
Influence of Social Influences in the Students’ It can be seen from the result that social needs
Smartphone Purchase Decision got a composite mean of 3.49 which had a verbal
Items WM VI interpretation of somewhat influential. It can also be
1. I feel like buying a new phone when my seen that item (2) has the highest weighted mean of
family and friends show their new phones 2.61 SWI 4.02. This only means that most of the millennials
to me. perceive smartphone as a communication tool.
2. I usually consult my family and friend
3.56 VI On the other hand, item (1) got the lowest
before buying a new phone.
weighted mean of 2.98 which indicates that some of the
3. My friend always persuades me to buy respondents rarely use their smartphone in terms of
2.62 SWI
the same phone as theirs. social needs. This could mean that the smartphone they
4. I love to have the same smartphone as
2.75 SWI own are not that advanced or don’t support certain
my family members. features, software, or apps that many smartphone have
5. I usually look for information about nowadays.
4.10 VI
smartphones on the internet.
Composite Mean 3.13 SWI
CONCLUSIONS AND MANAGERIAL around. To improve, smartphone providers should
IMPLICATIONS produce more durable devices, and innovate something
important for users to depend more on it which will
Based on the information obtained from the make their day-to-day life easier and faster, especially
study towards factors affecting smartphone purchase in school for students, or in work for adults.
decision among the students of a state university, some
Followed by social needs, the study shows that
major conclusions and managerial implications of the
it also influences the purchase decision, and it’s the
researchers will be given in this section. This might be
next thing that the smartphone users considers. These
useful for companies and their future strategies
social needs in the context of smartphones, may
planning on improving smartphone sales. Also, with
represent the necessity for keeping in touch with
the large opportunities in the smartphone market in the
friends, family, and associates (Tikkanen 2009).
near future, smartphone providers should seize the
Smartphone manufacturers should add features that
opportunities to fulfill what affects purchase decision
will improve more and fulfill the user’s social need to
of users.
communicate and stay connected with others and have
First, the researchers concluded that the factors a sense of security.
tested namely brand, convenience, dependency, price,
Brand also has an influence on the smartphone
product features, social influences, and social needs
purchase decision. It is important for smartphone
concern all have an influence in the smartphone
manufacturers to build a strong brand name,
purchase decision of students.
particularly by innovating something new and be the
Second, in terms of level of influence of the pioneer in the market, or by creating a unique selling
factors, product features, convenience, and proposition. Perhaps, not only the smartphone product
dependency are the most influential or main factors that itself could help to build the brand. Smartphone
affect smartphone purchase decision. Followed by providers should also consider other method such as
social needs, brand, price, then social influences for good customer service, social responsibility and many
last. more. With internationally recognized and strong
Additionally, the researchers arrived with the brand, users are more confident in that brand and it is
factors’ managerial implications. For starters, the study perceived to be more trustworthy.
shows that majority of the smartphone users will Price also has an influence, but it has less
consider product feature first. Smartphone providers impact on the purchase decision compared to the other
should study on what features the users demand for. selected variables tested in this study. It indicates that
For example, higher resolution of camera, better and if smartphone manufacturers could provide a
faster operating system, smarter and lighter design, and smartphone with a very good product feature, users
any other new innovative of product features for both will still buy it even if it is expensive because many
software and hardware. By improving the product consumers believe that the higher the price, the better
feature more, and providing what is demanded, it might the quality. But companies shouldn’t overlook the fact
help smartphone provider to improve sales and profit. that there are also price-sensitive consumers who uses
Convenience is the second consideration based this factor as one of the criteria in their smartphone
on the research. It indicates that smartphone users buy purchase decision. Given this, smartphone providers
one due to its convenience. With smartphone, tasks can should monitor their competitors daily to check and
be accomplished faster, and users do not bring a laptop ensure if their price is not so high that consumers turn
because smartphone can perform what laptop could. to competitors, and yet not so low that the product is
Smartphone manufacturers can focus on making viewed as low quality.
smartphone usage more convenience such as longer Social influence has the least impact on
battery life, and a slightly larger screen size that makes smartphone purchase decision, but it doesn’t mean it
smartphone use more efficient and convenient in any should not be included in the main concerns for the
task and everywhere. company. Because according to Farzana (2012), during
The third consideration of smartphone the decision making process, consumers always tend to
purchase decision is dependency. The result shows that be influenced by the social group- which is referring to
dependency is very influential on the purchase decision friends, family, and the people around them, and
and for some users, they might depend to their external social influences such as trends, internet, and
smartphone to the extent of feeling anxious if it is not social media. Smartphone providers should socialize
more with the targeted market to create a positive word
of mouth for them and spread it to others. Even though
research shows a relatively low effect, the social
influence could really affect one’s purchase decision.
Thus, better customer service and after sales service
should also be provided in order to avoid creating
dissatisfaction leading to negative word of mouth.
Likewise, providing information about the product on
where and when the customers need it should be
creatively provided as well especially using the internet
and social media platforms where millennial
consumers are very exposed to.
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