Factors influence Customers Intention to Purchase Smartphone in Thailand

janthaisri@student. anglia. ac. uk Name of Supervisor Dr Maureen Ayikoru Submitted to The Lord Ashcroft International Business School Anglia Ruskin University Table of Contents ACKNOWLEDGE ii ABSTRACT iii CHAPTER ONE 1 1. Introduction 1 1. Emotional value 10 2. Social Value 12 2. Purchase intention 13 2. Related Literature review 14 3. Research Conceptual Framework and Methodology 18 3. This research will not have happened without your cooperation. Furthermore, I would like to express my sincere gratitude and special thanks to researcher supervisor Dr. Maureen Ayikoru for guidance, constant attention, valuable suggestion, enthusiastic support and personal concern throughout the research. She gave me advices about research writing and research topic. Finally, I would like to thank my parents for their support and advice about the detail of research and studying MBA, including with my dad, mom, my auntie, and sister.

The result of this research shows that these four factors including Aesthetics value, Functional. Value, Social Value, and emotional value are significant to customer’s purchase intention to smartphone. Keyword: Aesthetics, functional value, emotional value, social value, purchase intention CHAPTER ONE 1. Introduction 1. Background of the Topic A mobile phone is basically an electronic device designed for communication between two people. Compared to the predecessor, latest smartphones have better capabilities. The smartphones era has seen increase in online business and online verification systems like text message, making call, social network, mobile banking among others. According to the previous study by Dodds and Monroe in 2010, they stated that purchase intension is the behavior of people (customers) who have interest to purchase a given product.

Purchase intention is a factor that has significantly affect and can be used as an indicator of purchase behavior. Perceive quality is needed for developing the brand and product in customer’s positive memory. In order to survive in the market, you need to know how customers making decision for purchase. Researchers Syed and Nazura, (2011) mentioned that purchase intention is one of the major strategies in segmenting the target and market, this study would be useful to marketers because it enables them to assess the factors that specifically attract consumers’ intention to purchase smartphone. This study examines how potential purchasers’ perception of these variable influence their purchase intentions. Described as an interactive, hedonic technology. Therefore, it is reason that perceived enjoyment and social usage are becoming more important than perceived usefulness in influencing purchase intention (Lin and Bhattacherjee, 2010).

In current society, the smartphone use is changing and as a result lead smartphone companies should study and adapt to dynamic environment. For the growth of industries and market expansion, the companies should understand the behavior of smartphone’s user and factors that affect their intention to purchase. Aesthetics (the design, beauty, colors) affect purchase intention, some people considered about function value (Durability, Usability, Features) of smartphone more than Aesthetic. These are many variables and quite complicated and a good study is need to make clear conclusion on this factors affecting customer intention to buy a smartphone. Smartphone companies should study these variables which influence purchase intention in country of operation and offer what make customer satisfaction and used is a strategy to maintain customer’s loyalty and increase new customers of the brand.

Sheth et al. This project is organized as follows: Section 2 presents the literature review related to the area of study. Sections 3 and 4 discuss the research methods applicable in this study and the results, respectively. Section 5 provides the discussion, implications, limitations and avenues for further research 2. Literature Review Purchase Behavior is the behavior of customer appear while searching for, the interested products, the evaluation of product, goods, or service (Vinyncida & Sihombing, 2013). In currently, customers need the unique brand, which focus on innovative, technology improvement, new features. Customers also preferred the smartphone which has the unique design and performances such as; the big screen mobile phone, clearer interface for touch screen interaction (Norazah, 2013). For example; Samsung, Apple, LG, are very popular brand among the competitors, Everyone know these brand, all of them has unique technology and always improve technology in their product before selling day in every year.

Theoretical Literature 2. Aesthetics Aesthetics is defined as the beauty in the eye of holders and it helps them to improve quality of life (Schmitt and Simonson, 1997; Bruyn, 2015). In addition, aesthetics plays an important role in decision-making and to such an extent that it can come over other factors. This concept should be applied for further details in the research. Functional value Sheth et al. suggested that functional value is the perceived utility acquired by consuming a good which achieve functional or advantageous purposes and utilitarian. It also can be the practical benefits experience and functionality by consumers in evaluating to the products or services from the economic point of view. The battery life is also important to customers (Sand and Tseng, 2010).

The previous research show that the smartphone battery lifetime is significant and has affect to customers purchase decision and behaviors (Johnston, 2011). It also affects to customers believe and brand loyalty (Johnston, 2011). The customers satisfaction in brand, one significant factor come from the length of smartphone battery lifetime. It means the short lifetime of smartphone battery can lead to high perceived phone problems; returning, refund, and complain (J. Many research mentioned that the application known as internet browser, email, SMS, are affect to purchase decision in the significant way, one of the most popular application use in activity is the camera (Bodker, Gimpel and Hedma, n. d; PriceGrabber Survey, 2011; Hopkins, 2010; Philqvist, 2011; Tuominen, 2011; Bodker et al, n. d; Netscribed, 2011; ). Customers are choosing smartphone come with the camera pixels at least 5 mega pixels camera specification (Jin and Pupanich, 2011; Tongpier, 2011; Gimpel, 2011).

Fast connectivity are significant to customers behaviors. However, Long and Schiffman (2000) said that emotional value and social value had a significant influence on purchase attitude, behavior and especially important for loyal customers, and help build further close emotional links with the wanted customers. It used research from Sweeney and Soutar (2001), Sanchez et al. and Jinyang and Chad (2011) to measure emotional value with six items, such as “the beauty associated with ecotourism travel (from trees, flowers, mountains, etc. would increase my love of nature. Bagozzi et al. The another research also mention to the same result, the respondents (80 percent) are mentioned that the ease of use is the important factor lead to smartphone purchase decision (Jongepier, 2011). Ease of use is considered as the smartphone which include the friendly user, or interface easy to understand can add emotional value to smartphone.

However, Khan and Hyunwoo (2009) found that the smartphone come with many applications such as internet browser, gaming, SMS, etc. can lead to the complex of use and difficulty to learn. User experience also found as the significant factor lead to smartphone purchase (CLN, 2010). Social Value The previously research stated the definition of Social Value that the social value is the perceived utility observed from association of one or more specific social groups (Sheth et al. it can also improve social self-concept (Sweeney and Soutar, 2001) constructed on the observation of society’s assessment of the product. Callarisa Fiol et al. Consumers may believe in the good-looking brand of products can improve their social status (Holbrook, 1999). While product supposed to be observable in use (e.

The suggestion from close related people can affect to purchase decision. In currently, Social media platform such as; Twitter, Facebook, YouTube, etc. become the intermediary between the customer and seller. Customers can find information related to interesting product. They also get comment about the positive and negative opinion from the other customers who used this product and it’s also affecting to purchase decision in direct and indirect ways. Purchase intention plays the important role in marketing academic literature due to it is the best predictor of actual consumers (Ajzen and Fishbein, 1980). Based on the foregoing information, the following hypotheses are developed: Dodds and Monroe (1985) stated that Purchase intention is the customer tendency behavior in making decision to purchase products. Li and Biocca (2002) mentioned that purchase intention is also affect to common measure and often use in foresee the purchase behavior.

There are many mobile phone brands in the market, each brand offers the difference tastes and preferences to customers and reach the customer’s needs, moreover, the purchase intention affect to the brands depend on many factors such as; the mobile phone specification, social value, brand, quality, etc. Leo et al. Aesthetic principles are used in design of communication, personal information, communication, entertainment, technology products (Swilley, 2012; Charters, 2006). smartphones have been defined as “a cultural item and an extension of their users’ social rank” (Shin, 2012, p. In the previously research believe that changing the physical of smartphone, including with design and color can encourage customers, increasing brand attractiveness and get more advantage among the competitors in the same mobile phone industry line (Leelakuthamit & Hongcharu, 2012).

Functional value is the perceived utility acquired by consuming a good which achieve functional or advantageous purposes and utilitarian. The previously research support that the lower price and reasonable price has significant relationship to purchase intention. Social Value also defined as the changing of feeling, altitude, thought, and behaviors which influenced by other group of people (Family, friends, strangers) (Rashotte, 2007). The previously research mention that related people included friend, family also has significant to purchase decision (Suki and Suki, 2013). Social media is also influencing to purchase intention. People always looking for the feedback which come from the experience mobile phone users. In social media has many feedbacks which customers can read and decided which product reach their satisfaction (Suki and Suki, 2013).

and Chikweche, T. The importance of aesthetics on customers’ intentions to purchase smartphones. Marketing Intelligence & Planning, 35(3), pp. User acceptance of location-based social networking services To investigate the impact of perceived value on user satisfaction, perceived value on user satisfaction base on networking service. Yu, J. Hay, C. and Ignacz, J. Effect of smartphone aesthetic design on users' emotional reaction: An empirical study. The TQM Journal, 20(4), pp. Social eWOM: does it affect the brand attitude and purchase intention of brands? To study how user electronic world of mouth via social network affected to the brand attitude, consequence and purchase intention Kudeshia, C. Haba, H. Hassan, Z. and Dastane, O. Factors leading to consumer perceived value of smartphones and its impact on purchase intention.

Value Creation through Smartphones, An Ethnographic Study about Consumer Value and Social Interaction through Smartphones Jarenfors, O. Alia,S. M. Factors Influencing Purchasing Intention of Smartphone among University Students, ScienceDirect 3. Research Conceptual Framework 3. Theoretical Framework According to Sekaran & Bougie (2009), theoretical framework is the foundation on which it is a logically developed, described and elaborated network of associations among the variables deemed relevant to the problem situation and identified through such processes as interviews, observations and literature review Base on the earlier study, it is clear that the perceive values influence the smartphone purchase intention, hence, the variables related to customers purchase behaviors also are significant in making mobile phone purchasing decision and smartphone marketing. Aesthetics has affected on purchase intention in both direct and indirect ways.

It can have indirect link via the factors of technology acceptance (Van der Heijden, 2003), invariable with the concept of perceived function value. Gallarza and Gil (2006) mentioned that aesthetics can be used to understand how it has impact on satisfaction and purchase intention in the travel industry. Aesthetics was used to measure how it has effect in customer decision when they’re shopping online (Mathwick et al, 2001). Moreover, aesthetics has been found that it has effect on direct link with purchase intention (Lee and Koubek, 2010; Tzou and Lu, 2009). mentioned that the smartphone users use phone to communicate with their friend college or family in social network or other chatting application, the result show that people are influenced by their surrounded people (Friends, Family, etc.

while making purchasing decision. We can assume that social value is influenced by young adults (18-25s). H4. There is positive relationship between emotional value and Customer’s intention to purchase smartphone. From table Appendix B Sheth et al. Yang and Jolly (2009), Callarisa Fiol et al. and Sweeney and Soutar (2001) Social value Interval (7 Likert point scale) I seek the approval of my smartphone from my relatives, friends, or friends from workplace. I seek the acceptance of my smartphone from my relatives, friends, or friends from workplace. I seek to improve the way I am perceived by my relatives, friends, friends from workplace I seek to impress my relatives, friends, or friends from workplace over the purchase of my desired smartphone. Aesthetics Interval (7 Likert point scale) Smartphone should have various color The color of smart phone means very much to me The color of smartphone has effect to my purchase decision.

The attractiveness of smartphone means very much to me From table Appendix B Sheth et al. Table 3. Operationalization of the Variables 3. Data Collection and Analysis 4. sampling procedure The respondents were chosen by using convenience and sampling voluntary. In this case, the respondents are specified only who are older than 18 years old and owner of smartphone price more than 5,001 baht. The number of respondents is 240 but because of the age which younger than 18 years old and don’t have smartphone, the respondents were cut by 3 respondents from 240 respondents. The totally available response is 237 from 240. Research Instruments The measurement used in this research was developed from the previous studied. Gender Demographic Gender เพศ Frequency Percent Valid Percent Cumulative Percent Valid male 91 38. female 146 61. Total 237 100. From table 4.

Based on the gender background, 38. Table4. Education Demographic What degree did you graduate with? Frequency Percent Valid Percent Cumulative Percent Valid lower than bachelor’s degree 6 2. Bachelor’s Degree 136 57. Master’s Degree 92 38. Ph. Table4. Income per month Demographic Income per month Frequency Percent Valid Percent Cumulative Percent Valid Lower than ฿ 20,000 11 4. Higher than 60,000 7 3. Total 237 100. From the table 4. percent with 75 respondents), 25,000-30,000baht (17. percent with 41 respondents), the minimum respondents group is 5,000-10,000 baht of smart phone (3. percent with 7 respondents). Table 4. Cronbach Alpha Cronbach Alpha Dimensions Cronbach’s Alpha No. The value of Cronbach alpha is greater than 0. is acceptable. In table4. the value of Cronbach alpha in all dimensions are acceptable. This indicates that all questions for the independent and dependent variables are standardized and can be accepted as refer to the rules of thumb about cronbach’a alpha coefficient (Nunnally & Bernstein, 1994).

Pearson Correlations Correlations AV. A AV. F AV. SV AV. E AV. Sig. tailed). N 237 237 237 237 237 AV. E Pearson Correlation. Sig. Taking into consideration rules of thumb ,this is regarded as a weak association between the two. Hypothesis 02: There is a significant relationship between Functional value and purchasing intention. A significant positive correlation coefficients showed between functional value and purchase intentions with the value of 0. The strength of relationship is weak. Hypothesis 03: There is a significant relationship between social value and purchasing intention. Functional Value has a positive relationship with purchase intention. supported H3. Social Value has positive relationship with purchase intention. supported H4. Emotional value has positive relationship with purchase intention. The result indicated that if the smartphone has many functions, it will more complicated.

Many Thai people also love smartphone which is easy to use, and function of smartphone also needed in some point. According to the result of Hypothesis three, there is moderate positive relationship between the Social value and purchase intention. In Thai culture, people also concerned about the social like family, friend, and another stranger (Williams, 2018). These people also have effect in smartphone purchase in direct way. The other possible of another variable should be considered. Furthermore, Differentiations of lifestyle may also have influenced to the purchase intention. This research mentioned about the factors which has effect to smartphone purchase intention in Thailand. It studied that the four factors including with; Aesthetics, Functional value, Emotional value and Social value. Each of these factors has significant relationship to smartphone purchase intention of customers focus on who live in Thailand.

In sum, the results of this study suggested that it is very importance for the smartphone manufacturers to understand what determinants influencing customers purchase intention towards smartphone because they represented the future main uses of smartphone. References Admob Mobile Metrics (2010) Metric Highlights, {online} Available at; [http://blog. contentmanagementconnection. com/Home/27003] Accessed 2 July 2018]. Ajzen, I. E. Affect and Retail Shopping Behaviour: Understanding the Role of Mood Regulation and Regulatory Focus. Journal of Retailing 85(3):308320. Baum, D. How Human Emotion Influences Buying Behavior (And Marketers Can Use it). Moliner Tena, M. A. and Sánchez García, J. “Multidimensional perspective of perceived value in industrial clusters”, Journal of Business & Industrial Marketing, Vol. No. No. pp. Choo, H. J. Moon, H. Wong, P. W. “Conceptual Paper: Factors Affecting the Demand of Smartphone among Young Adult”, International Journal of Social Science, Economics and Art, Vol.

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Table 4. Mobile phone cost Demographic How much does your mobile phone cost? Frequency Percent Valid Percent Cumulative Percent Valid 5,000-10,000 7 3. Total 237 100. Table 4. Cronbach Alpha Cronbach Alpha Dimensions Cronbach’s Alpha No. SV AV. E AV. PI AV. A Pearson Correlation 1. Sig. E Pearson Correlation. Sig. tailed). N 237 237 237 237 237 AV. PI Pearson Correlation. supported H3. Social Value has positive relationship with purchase intention. supported H4. Emotional value has positive relationship with purchase intention. supported APPENDIX B: Questionnaires ITEM NUMBER ITEMS A1 Smartphone should have various color A2 The color of smart phone means very much to me A3 The color of smartphone has effect to my purchase decision. EV2 I feel comfortable while I use my desire smartphone. EV3 I feel nice that my smartphone is greater than the other smartphones.

EV4 I am pleased when I am using my desired smartphone. EV5 Being observed by others while using my desired smartphone is significant to me. PI1 It is possible that I will purchase my ideal smartphone if it is existing PI2 It is 70-80 percentages that I will purchase my ideal smartphone if it is existing PI3 There is chance (40 -70 percentages) that I will buy my ideal smartphone if it is existing. dropbox. com/s/y7cebjeiwl2itps/Participant%20consent%20form. doc?dl=0 Part1: Demographic information 1. Are you 18 years and above? คุณอายุมากกว่า18ปีหรือไม่ • Yes ใช่ • No (stop doing the next question and thank you for your time) ไม่ใช่ (อายุต่ำกว่า18ปี หยุดทำแบบสอบถามและขอบคุณที่สละเวลา) 2. Do you have smartphone คุณมีสมาร์ทโฟนหรือไม่ • Yes, I have (continue to the next question) ฉันมีโทรศัพท์สมาร์ทโฟน โปรดทำข้อต่อไป • No, I don’t have (stop doing the next question and thank you for your time) ไม่มีสมาร์ทโฟน (หยุดทำแบบสอบถามและขอบคุณที่สละเวลา) 3.

The attractiveness of smartphone means very much to me Perceived value is defined as the worth that a product has in the mind of the consumer (มูลค่าที่ได้รับคือความคุ้มค่าจากผลิตภัณฑ์ที่มีผลต่อจิตใจของผู้บริโภค) F= Functionality, S= Social Value, E=Emotional Value. Functionality: can refer to benefit experience and functionality by consumers in evaluating to the products or services ฟังชั่น: ประสปการณ์ที่ได้รับของผู้บริโภคที่มีผลต่อผลิตภัณฑ์ Question 1 2 3 4 5 6 7 I want a smartphone with the highest trustworthiness. I want a smartphone with a lot of functionality. I want a smartphone that is easy to use. I want a smartphone which is useful based on its technical performances like a powerful processor or processing various programs at the same time. I seek to improve the way I am perceived by my relatives, friends, friends from workplace I seek to impress my relatives, friends, or friends from workplace over the purchase of my desired smartphone.

I seek to buy the smartphone that my relatives, friends, or friends from workplace choose. Purchase intention: defined as the intention to purchase or gain desired products or service. ความต้องการซื้อ: ความต้องการซื้อหรือได้รับสินค้าหรือบริการที่ต้องการ Question 1 2 3 4 5 6 7 It is possible that I will purchase my ideal smartphone if it is existing It is 70-80 percentages that I will purchase my ideal smartphone if it is existing There is chance (40 -70 percentages) that I will buy my ideal smartphone if it is existing. I am likely (10-40 percentages) that I will buy my ideal smartphone if it is existing.