DETERMINANTS OF MOBILE PHONE CHOICES OF CUSTOMERS AT

PONTEVEDRA, CAPIZ

A Research Proposal

Presented to the

Faculty of College of Management

Capiz State University, Pontevedra Campus

Province of Capiz, Philippines

In Partial Fulfillment

Of the Requirements for the Degree

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

MAJOR IN FINANCIAL MANAGEMENT

Abong, John Mark B.

Biclar, Reymark L.

Delfin, Joven Ace B.

Salvador, Melisa A.

Tamayo, Marietta Lothse T.

Yap, Fema Joy F.

Researchers

2022
 CHAPTER I

INTRODUCTION

Background of the Study

Mobile phone is an electronic device wherein serves as a

platform of communication such as texting, recreation through

games, taking pictures and videos, browsing internet etc. In

modern world, Most of the people include mobile phone as part

of their daily life that they cannot imagine life without this

product. That makes the manufacturer improves the product for

the people to choose according to their wants or needs.

According to Kingston (2022) Cell phone manufacturers

have produced a wide range of cell phones, which sell for

prices that range from very inexpensive to over one thousand

dollars. The available options give users the choice of

purchasing a basic cell phone to use simply for making calls,

or choosing a complex, technologically advanced cell phone

that can perform as many or even more tasks that a home

computer. Over the past decade, the increasing importance of

cell phones has made them almost a necessity for most people.

Even remote and underdeveloped countries have some access to

cell phone technology and wireless services. The choices of

customers in terms of mobile phone have different views that

it may varies according to what want or needs and specially

for their financial capabilities. According to “Factors

Affecting Consumer Choice of Mobile Phones: Two Studies from

Finland,” published in The Journal of Euromarketing, whether

or not a consumer chooses between one phone or another is the

result of several characteristics, including; Price, Brand,

Size, Interface, and Technical Features. In their study,

researchers Heikki Karjaluoto and others write that while

factors like price and technical features are more important

for older consumers, brand and interface are far more

important for younger individuals. Older consumers tend to

value phones that help them manage their time more effectively,

offering features and applications that ease the burdens of

their everyday lives. For younger consumers who don’t have as

many responsibilities, these applications play second fiddle

to features like cameras, games, and web browsing.

Statement of the Problem

Generally, this study is intended to examine the mobile

phone choices of customers at Pontevedra, Capiz that can be

determined by factors influencing their preferred choices such

as price, brand, packaging and quality.

Specifically, this study sought to answer the following

research questions:

1. What is the demographic characteristics of the

respondents in terms of:

1.1 . Age,

1.2 . Gender,

1.3 . Marital Status,

 1.4 . Monthly Income,

1.5 . Number of mobile phone owned and;

1.6 . Types/Brand of mobile phone used

2 What are the factors that affect the customers’ choices of

mobile phone?

3 Does mobile phone specifications influence to consumer

buying behavior?

4 Based on the findings of the study, what intervention

program can be proposed to improve the customer’s choices of

mobile phone at Pontevedra, Capiz?

Theoretical Framework

This section of the research paper discusses the

different theories that are relevant to the study. Different

scholars had been formulated theories that explain the factors

that affect the choice of customers in mobile phone. Including

the theory of quality management: the origins, theory of Price,

Theory of Brand, The theory about the influences of consumer

satisfaction, Theory: The new product development of mobile

phone.

Theory Of Quality Management: The Origins

Scott and Cole (2000) claim that the quality effort is

not readily linked to a well-identified, clearly specified set

of ideas and practices but, rather, appears as a loosely

coupled collection of orientations and practices. We disagree

with this judgment. The seminal authors on quality have

presented influential theoretical and philosophical starting

points for quality.

Theory of Price

The theory of price is an economic theory that states

that the price for any specific good or service is based on

the relationship between its supply and demand. The theory of

price posits that the point at which the benefit gained from

those who demand the entity meets the seller's marginal costs

is the most optimal market price for that good or service

according to Banton (2020).

Theory of Brand

The theory of brand as “a name, term, design, symbol, or

any other feature that identifies one seller's good or service

as distinct from those of other sellers.” The brand represents

a set of elements (name, logo, sign, symbol, drawing, design)

that identifies and differentiates (companies, products,

services, personalities, places, and ideas) and creates

various emotional, cultural and rational associations, beliefs

and expectations among consumers. The brand is a promise and

builds consumer associations. Apart from functional, it also

has emotional features. Brand identity is everything that the

company wants to present to consumers. Brand elements are all

those things that serve to identify and differentiate the

brand from the ones of competitors. Brand elements include

name, logo, slogan, color, characters, packaging, jingle,

design, and web address of the product.

The Theory About The Influences Of Consumer Satisfaction

The system quality of a smart mobile device has a

positive influence on the satisfaction of its user Kakihara

and Sorensen (2002), Green (2002), Sorensen and Taitoon (2008),

Boase and Kobayashi (2008), Chatterjee et al., (2009), and

LaRue et al., (2010) investigated mobility along four

dimensions: spatial, temporal, contextual, and social fluidity.

The current study investigates the perceived performance of

smart mobile devices in terms of these four dimensions and how

their performance affects users’ confirmation and satisfaction

of using a mobile device.

Theory: The New Product Development Of Mobile Phone

This Theory of New Product Development and Its

Applications According to Fojt [1], the general view about new

product development (NPD) is that it brings considerable

profits to the businesses if new product is introduced to the

market at the right time, is priced at the suitable amount and

targets suitable customer group. Accuracy of this view was

questioned by Fojt [1], and it was stated that NPD can result

in new profit or loss.

 Conceptual Framework

Figure 1.1 Schematic Diagram of Proposed Conceptual Framework

The diagram shows the relationship of the

independent and dependent variables. The independent variable

includes the price, brand, packaging and quality while

consumer preference is the dependent variable. The arrows that

connect the independent and dependent variables are

assumptions and signify that there are significant

relationships among them. The price, brand, packaging and,

quality of the mobile phone is assumed to affect the consumer

preference of buying behavior.

 Significance of the Study

This study is intended to provide a certain

solution to a specific problem. Thus, the result of this study

will grant a profit to the customers who are enclosed to the

scope of the study. Roundly, this research study will be

beneficial to the following:

Customer. This research will help the customer to be able to

determine the mobile phone choices and which they prefer

according to price, brand, packaging and, quality. This study

will also give them some possible and effective ways to

satisfy their preference.

Business Owner. The findings of this study will also be

beneficial to the business owners, in particular for every

mobile phone business owner. Mobile phone business owner can

be able to determine the consumer’s preferred price, brand,

packaging and, quality in order to achieve a high satisfaction

feedback from their customers. By knowing it, they can design

specific methods and strategies to attract and capture more

customers.

Future Researchers. The result of this study is feasible to be

used as groundwork or one of the sources of the future

researchers in the same field, whereby this study will come up

with a better and new result formulation.

 Scope and Limitations of the Study

This study focuses only on determining the mobile phone

choices of customers as well as the factors that influence

them. This study will be conducted at Pontevedra, Capiz, for

the S.Y. 2022. The scope of this study will take among the

customers of Pontevedra, Capiz and the respondents will be

selected using random sampling. The information is limited

only to determine the demographic characteristics of customers

(age, gender, marital status, monthly income, number of mobile

phone owned and, type/brand of mobile phone used). The

judgement about their preference in choosing mobile phones

will be based on the results or to the score of the

respondents in the adapted standardized test.

Definition of Terms

Age is refers to the entire period of life or existence as of

a person, thing or nation.

Gender is refers to the state of being a male or a female.

Marital Status is the civil status of each individual in

relation to the marriage laws or customs of the county.

Monthly Income is refers to the monthly earned money from work,

investments or, business.

Customer is a person that buys goods or services from a store

or business.
Mobile Phone is a technology that has access to a cellular

radio system so it can be used over a wide area, without a

physical connection to a network.

Price is the representation of value also known as the

measurement of value acquired in a given product.

Brand is a way of identifying a business.

Packaging is an activity which is concerned with protection,

economy, convenience and promotional considerations.

Quality is a judgment of how excellent something is.

Pontevedra is a coastal municipality in the province of Capiz.

 CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter deals with the related studies pertaining

the determinants of mobile phone choices of customers and

factors that influenced them that is relevant to the study and

could help boost the reliability of the findings.

Major Determinants that Influence the Choice of Brand of

Mobile Phone.

The study examines whether there is an association

between brand of mobile phone used and occupational status,

educational level and satisfaction level. Influence of mobile

phone usage was also examined. Data were collected on 478

mobile phone users. Convenient sampling method where the

respondents were interviewed as they were encountered was used.

Statistical analysis methods such as descriptive statistics,

chi-square test statistic, one sample t-test, were applied.

The study discovered that there is no association between

mobile phone brand used and educational level. The study

reveals that there is an association between brand of mobile

phone used and satisfaction with performance.

According to Coghill, the development of mobile

communication technology (wireless, internet, mobile phone,

MP3 player, GPS navigation system) has been a long journey of

innovation which is constantly evolving and updating because

of consumers’ changing needs and preferences. Among various

contemporary mobile communication technologies, the mobile is

regarded as “the most radiative domestic appliance ever

invented.” Statistics has shown that mobile phone subscribers

were less a billion with most of, much of the subscription

from the developed countries. However, it is estimated that

for 2017, the number of mobile phone users is forecast to

reach 4.77 billion. The number of mobile phone users in the

world is however, expected to pass the 5 billion mark by the

year 2019. In the year 2016, it was estimated that

approximately 70% of the population worldwide already owned a

mobile phone. The wide spread of utilization of mobile phones

in communication and information transfer has led to

exponential improvement in mobile phone technology. To meet

user’s information needs, innovative features and applications

are continuously being added to mobile phones to make them

perform many more new functions. Consequently, the mobile

phone which is essentially a communication device has

undergone numerous transformations, making its functionalities

transcend the traditional voice communication between two

individuals. Mobile phone is no longer regarded as a luxury

item or a status of symbol but rather a necessity in people’s

daily life.

The first cellular phone service Mobitel (now Tigo) was

initiated in 1992 by Millicom Ghana limited. Next, it was

Westel Spacefon (now MTN) operated by Scancom Ghana Limited

joined Mobitel in 1994 in the provision of mobile telephone

services. One-Touch (now Vodafone) operated by Ghana Telecom

mobile telephone operator was the next competitor in the

cellular phone market in the year 2000. A local cellular phone

operator, Kasapa (now Expresso), followed. In May 2008,

Globacom limited a Nigerian multinational telecommunication

company acquired an operating license through its Glo mobile

division in Ghana. Between 1992 and the year 2001, mobile

phone usage seemed limited to some categories of people in the

country. These included businessmen, managers in reputed

companies, government officials, diplomatic corps, wealthy

individuals and some very important personalities. This was

limited to the country’s main cities. Eventually, due to the

nationwide coverage of mobile phone service by providers,

every category of people owns mobile phones, and even the less

privileged from various villages also use mobile phone. It has

helped bring about a source of employment to a section of the

populace, and it has become fashionable to own a mobile phone.

The acquisition of mobile phones by all has brought some

challenges in such a way that people go to all extent to

acquire them.

Dziwornu, stated that in Ghana, there is a considerable

population of mobile phone users. Mobile service in Ghana has

advanced to a stage where, in addition to traditional service

such as voice call and short message service (SMS), most users

can freely enjoy the latest technologies such as mobile

internet, e-learning, banking and video conferencing. Consumer

research has devoted little in understanding the relative

factors underlying the mobile phone buying decision process.

These factors may include conditions that affect the evolution

of mobile phone market in general and individual consumers’

motives. The mobile industry is one of the most dynamic

industries that exist in the country today. This can be

attributed to the constant change and competitiveness that

characterizes the market. It is important that we consider the

key consumer buying decision process and cast light on the

factors that finally influence consumer choice between

difference mobile phone brands. Unfortunately, only a few

published academic researchers were focused on comparative

studies. Despite the growing importance of mobile phone

technology there has, to date, been relatively little research

on consumers’ evaluation of the factors that influence the

choice of brands of mobile phone, particularly in the Ghanaian

context

The main objective of this article is to determine the

influencing factors that determine the choice of a brand of

mobile phone by considering the satisfaction levels among

mobile phone users, and to determine whether there is

association between a particular mobile phone brand and

educational level and occupational level. The null hypotheses

formulated for this article are:

H0: there is no association between a particular mobile phone

brand usage and educational level;

H1: there is no association between a particular mobile phone

brand usage and occupational status;

H2: there is no association between brand of mobile phone used

and satisfaction level.

 CHAPTER III

METHODOLOGY

This chapter includes the presentation of the research

design, research locale and time of the study, subjects and

respondents of the study, sample size and sample technique,

research instrument, validity and reliability of the

instrument, data gathering procedures, categorization of

variables and data analysis procedures used in this study.

Research Design

This study will utilize descriptive correlational

research design. The use of descriptive survey research design

slowed the factors affecting mobile phone users to be examined.

A survey was preferred because it permits accurate estimation

of the population parameters and subsequent generalization.

This design will be considered versatile, for it allowed the

use of questionnaires and collection of data in a relatively

short period. The design permitted the use of quantitative

analysis thus providing empirical evidence on the factors of

choice of mobile phone brand, quantitative research allows for

numeric analysis of data.

Locale and Time of the Study

This study will be conducted at Pontevedra, Capiz in the

Academic Year 2021-2022.

 Subjects and Respondents of the Study

The subjects and respondents of this study were limited

only to the customers who reside at Pontevedra, Capiz for the

year 2022.

Table 1.1: Distribution of Respondents

BARANGGAY Population percentage (2020) Population (2020)

Agbanog 1.87% 928

Agdalipe 1.22% 605

Ameligan 2.69% 1,337

Bailan 5.66% 2,816

Banate 1.80% 895

Bantigue 1.00% 496

Binuntucan 10.51% 5,228

Cabugao 0.91% 454

Gabuc 1.25% 623

Guba 1.62% 806

Hipona 5.37% 2,669

Ilawod 4.45% 2,214

Ilaya 1.88% 937

Intungcan 2.93% 1,455

Jolongajog 4.42% 2,198

Lantangan 4.47% 2,347

Linampongan 2.97% 1,475

Table 1.2: Distribution of Respondents

BARANGGAY Population percentage (2020) Population (2020)

Malag-it 4.48% 2,230

Manapao 1.31% 651

Rizal 8.62% 4,285

San Pedro 2.90% 1,442

Solo 2.19% 1,087

Sublangon 5.13% 2,552

Tabuc 7.68% 3,821

Tacas 9.08% 4,515

Yatingan 3.34% 1,659

Pontevedra
49,725
Total

Sample Size and Sample Technique

The total population of customers at Pontevedra, Capiz

from its latest year (2020) is forty-nine thousand seven

hundred twenty-five (49,725) customers and the sample size

that will be used in this study is only three hundred ninety-

seven (397) customers of Pontevedra, Capiz at all baranggay.

The sample size was determined using Slovin's formula below:

n =_ N_____

1+ (N × e²)

Where:

n = sample size
 N = total population

e = margin of error (set at 0.05)

Table 2: Distribution of Sample Size per Baranggay

Area of Study N n Percent (%)

Agbanog 928 7 1.8

Agdalipe 605 5 1.3

Ameligan 1,337 11 2.8

Bailan 2,816 22 5.5

Banate 895 7 1.8

Bantigue 496 4 1.0

Binuntucan 5,228 42 10.6

Cabugao 454 4 1.0

Gabuc 623 5 1.3

Guba 806 6 1.5

Hipona 2,669 21 5.3

Ilawod 2,214 18 4.5

Ilaya 937 7 1.8

Intungcan 1,455 12 3.0

Jolongajog 2,198 18 4.5

Lantangan 2,347 19 4.8

Linampongan 1,475 12 3.0

Malag-it 2,230 18 4.5

Manapao 651 5 1.3

Rizal 4,285 34 8.6

 San Pedro 1,442 12 3.0

Solo 1,087 9 2.3

Sublangon 2,552 20 5.0

Tabuc 3,821 31 7.8

Tacas 4,515 36 9.1

Yatingan 1,659 13 3.3

Total 49,725 397 100

The sampling method used was stratified random sampling

whereby customers were grouped accordingly to the programmes

offered at Pontevedra, Capiz. Stratified random sampling was

used as the researcher wants to highlight a specific subgroup

within the population and to ensure the presence of the key

subgroup within the sample.

The sample size from each Baranggay is determined by the

formula:

n1 = N1 × n_

Where:

n1 = sample size from Baranggay

N1 = sample size

N = total population of students

n = Baranggay of the study population

 Research Instrument

In order to obtain necessary data needed in the study,

self-administered questionnaire will be used as a research

instruments. The given questionnaires are responsible in

getting the demographic profile of the respondents. The

adapted standardized tests will be used to measure the factors

influencing the mobile phone choices of customers. The

research instruments are consisting of two parts. 1) the

demographic profile of the respondents, 2) the adapted

standardized test, which is responsible in determining the

factors influencing the mobile phone choices of customers at

Pontevedra, Capiz.

Validity and Reliability of the Instrument

To ensure the validity and reliability of this study, the

researchers will utilize an adapted standardized survey

questionnaire from past study conducted by Juma, D.A. et al

(2016). To which the questionnaire referred has already been

pre-tested and to further check, and evaluate as well as to

ensure the validity and reliability of the researchers’

adopted standardized test from a credible source, the

questionnaire will be checked by the research adviser to

assure the validity and reliability in gathering the needed

data and information. After validation, the research

instruments will be distributed to the respondents of this

study.
 Data Gathering Procedures

An important process in each research study is the data

gathering procedures that provides the factual foundation for

the results derived from the research (Fisher, 2007). To

obtain the specific goals and results of this study, the

needed data will be collected using questionnaires from a

credible source. The instruments will record the response of

the participants. The collection of data will be on this year

2022. In the field of conducting a research study, there are

generally two ways of collecting evidence, which are primary

data derived from primary sources and secondary data from

secondary sources.

Categorization of Variables

This part of the research study presents the

categorization of variables and their corresponding

measurements.

Table 3: Categorization of Socio-Demographic Profile of

Respondents

Categorization of Variables

Age As of last birthday

Gender □ Male □ Female

□ Single □ Married
Marital Status
□ Separated □ Widowed
 □ Php. 10,000 below

□ Php. 10,001 to 15,500

Monthly Income □ Php. 15,501 to 20,000

□ Php. 20,001 to 25,500

□ Php. 25,501 above

□ One only
Number of mobile phone
□ Two
you own
□ Three or more

□ Cherry Mobile

□ Samsung

□ Nokia
Types/brand of phone
□ Apple
you use
□ Oppo

□ Huawei

□ Vivo

Data Analysis Procedure

The gathered data will be processed, analyzed and given

to the statistician, who will interpret it using appropriate

statistical tools. The data will be summarized, analyzed, and

presented in accordance to the objective of the study. The

socio-demographic profile of the respondents will be described

using frequency counts, means, and percentages. Multiple

regression analysis, on the other hand, will be utilized to

determine the relationship between two or more independent

variables and one dependent variable in the study.

Specifically, it will be used to determine the pricing, brand,

packaging, and quality of customers’ mobile phone choices in

Pontevedra, Capiz.

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 APPENDICES

COLLEGE OF MANAGEMENT

RESEARCH TITLE:
DETERMINANTS OF MOBILE PHONE CHOICES OF CUSTOMERS AT

PONTEVEDRA, CAPIZ

SURVEY QUESTIONNAIRE

Dear respondent,

We are third (3rd) year undergraduate students of Bachelor

of Science in Business Administration Major in Financial

Management from Capiz State University, Pontevedra Campus. The

purpose of this survey is to determine the pricing, brand,

packaging, and quality of customers’ mobile phone choices at

Pontevedra, Capiz.

Thank you for your participation!

______________________________________________________________________________

Instructions:

Please read the statements carefully and check (√) the box

that corresponds to your answer. Rest assured that the data

taken from you will be treated with confidentiality.

Section A. Socio-Demographic Profile of the Respondents

Instruction: Please indicate check (√) in the appropriate

information about yourself. Each question should only have ONE

answer. All responses are strictly confidential.

Name (optional): _______________________

1. Age as of last birthday: _______

2. Gender:

□ Male

□ Female

3. Marital status:

□ Single

□ Married

Others please specify: _______

4. Monthly Income:

□ Php. 10,000 below

□ Php. 10,001 to 15,500

□ Php. 15,501 to 20,000

□ Php. 20,001 to 25,500

□ Php. 25,501 above

5. Number of mobile phone you own or use currently?

□ One only □ Two □ Three or more

6. Types/brand of phone you use?

□ Cherry Mobile □ Samsung

□ Nokia □ Apple

□ Oppo □ Huawei

□ Vivo Others please specify: _______

SECTION B: Factors that influence individual consumer choice

of mobile phone purchase

This section contains the factors that influence the choice of

mobile phone.

The following are statements on price variation, social

factors, product features, product image, media influence,

post sales services, and your final choice of mobile phone.

Kindly check (√) the best option that express your level of

agreeableness on each statement where; Strongly Agree =5,

Agree =4, Neutral =3, Disagree=2, Strongly Disagree=1.

(a) Price variation

Statements 5 4 3 2 1

I prefer handset that are highly

priced than those that are cheap

I consider the price according to

the quality of the mobile phone

My purchase decision depends on

special offers and price discounts on

offer for mobile phone

I prefer mobile handsets that have

alternative mode of payment e.g.

online wallet and online card

 (b) Social factors

Statements 5 4 3 2 1

I normally listen to recommendation

from family members on the mobile

phone to consider for purchase

Salespersons play a role in providing

information and recommendation on

mobile phone during purchase

decision.

I consider the opinion of friends

regarding the mobile phone to

purchase.

In the decision to purchase a mobile

phone I consider one that is similar

to what my friends have.

(c) Product features

Statements 5 4 3 2 1

Color display is an important feature

that I consider in selecting a mobile

phone

Memory capacity influences the type

of mobile phone to consider in a

purchase

The appearance of the phone size and

weight influences my decision to

select a mobile phone

I prefer mobile phone that has a

touch screen than those that have
keypads

Web access speed and Bluetooth

facility influences my decision to
choose a mobile phone

Dual sim mobile phone are more

attractive than single sim phones

Presence of camera and video

facilities is important for choice of
mobile phone

(d) Product image.

Statements 5 4 3 2 1

In the purchasing of mobile phone I

would consider the latest brand

edition existing in the market.

Extra accessories/services contained

in the mobile phone influences my

purchase decision

The higher the price of mobile phones

the better the quality.

(e) Media influence

Statements 5 4 3 2 1

Advertisement on TV provides the

visual appearance of the mobile phone
and its usage enhances its
recognition in the market.

Radio advertisement provide the facts

and figures regarding the features of

mobile phone building customer’s

comprehension/understanding

Internet advertising provide both

visual and comprehension effect and

allows repetitive free access to

advert

Positive review in Facebook influence

the purchase of mobile phone

(f) Post sales services

Statements 5 4 3 2 1

I consider guarantee/ warrantee when

purchasing mobile phone

Existence of repair and maintenance

services is crucial in selecting a

mobile phone

I would only consider mobile phone

whose spare parts are readily

available in the market.

I expect the mobile phone seller to

install all relevant applications in

the mobile phone

Initial training and instructions on

the use should be carried out by

mobile phone vendors/dealers after

purchase.

(g) Choice of mobile phone

Statements 5 4 3 2 1

I compared the price of different

mobile phone in the process of

determining the appropriate price

visa vie quality

The opinion of family, friends,

relatives and peer group influenced

my ultimate decision to buy a mobile

phone

The appearance of mobile phone and

the basic services it offers was the

most important consideration for

purchase of a mobile phone

I preferred a mobile phone that has

extra utilities that do not necessary

attract extra charges

I considered the information provided

by different media vehicles in the

choice of mobile phone

My choice of mobile phone depended on

after sales services offered by the

seller.