ISSN: 2249-7196

IJMRR/March 2015/ Volume 5/Issue 3/Article No-7/193-

200 Deepa Guleria / International Journal of Management Research &
Review

A STUDY OF CONSUMER PREFERENCE FOR SMARTPHONE: A CASE OF

SOLAN TOWN OF HIMACHAL PRADESH
Deepa Guleria*1
1
Research Scholar, Dept. of Business Management, College of Horticulture, Dr. Yashwant
Singh Parmar University of Horticulture and Forestry, Nauni, Solan (HP), India.
ABSTRACT
Consumer preferences are defined as the subjective or individual tastes, as measured by
utility. The related study is conducted in Solan town of Himachal Pradesh with a sample size
of 80 Smartphone users to highlight the change in the usage and applicability of the
technology from the traditional handsets to the new emerging smart phones across multiple
brands, applications and prices. The study will help to realize the key elements that generate
preference in the consumers to opt for a particular product and generate comparison based on
numerous features and applicability.The study identifies factors which are responsible for
building consumer preference for Smartphone and various usability features. Moreover, study
will indicate suggestive inferences to help the companies during STP (selecting, targeting and
positioning) process of marketing their Smartphone.
Key words: Consumer Preference, Smartphone, Influential factors, Usability features.
1. INTRODUCTION
Nowadays, mobile handsets have become an integral part of human daily life and personal
communication across the globe. In the current highly competitive mobile phone market,
manufacturers constantly fight to find additional competitive edge and differentiating
elements to persuade consumers to select their brand instead of a competitor’s. There are
various studies conducted to identify factors that make companies better than their
competitors in influencing the customers purchase decision. Consumers’ of mobile phone
found throughout the world greatly influenced by those different factors affecting mobile
phones purchase decision. These factors may be related to the characteristics of the consumer
and the features associated with the mobile phones. This leads mobile phone companies to
come up with a variety of mobiles with different brands and features. There is various
research studies conducted to identify factors affecting consumers’ choice of mobile phones.
These studies indicated a range of items as a determinant factor influencing purchase
decision. These factors include price, features, quality, brand name, durability, social factors
and so on (Ilyas and Ahson, 2006).
1.1. Meaning of Consumer Preference
Consumer preferences are defined as the subjective (individual) tastes, as measured by utility,
of various bundles of goods. They permit the consumer to rank these bundles of goods

*Corresponding Author www.ijmrr.com 193

 Deepa Guleria / International Journal of Management Research & Review

according to the levels of utility they give the consumer. Note that preferences are
independent of income and prices. Ability to purchase goods does not determine a
consumer’s likes or dislikes. A consumer preference explains how a consumer ranks a
collection of goods or services or prefers one collection over another. This definition assumes
that consumers rank goods or services by the amount of satisfaction, or utility, afforded.
Consumer preference theory does not take the consumer's income, good or service's price, or
the consumer's ability to purchase the product or service (www.ehow.com/definition-
consumer-preference.html).
1.2. Meaning of Smartphone
A Smartphone, or smart phone, is a mobile phone built on a mobile operating system; with
more advanced computing capability and connectivity than a feature phone. The first smart
phones combined the functions of a personal digital assistant (PDA) with a mobile phone.
Later models added the functionality of portable media players, low-end compact digital
cameras, pocket video cameras, and GPS navigation units to form one multi-use device.
Many modern smart phones also include high-resolution touch screens and web browsers that
display standard web pages as well as mobile-optimized sites. High-speed data access is
provided by Wi-Fi and mobile broadband. In recent years, the rapid developments of mobile
app markets and of mobile commerce have been drivers of smart phoneadoption (Ilyas and
Ahson, 2006).
2. RESEARCH METHODOLOGY
This study has been carried out using pre-structured close ended questionnaire for collecting
data. Data was collected from various Smartphone users. 80 respondents were selected for
the study on the basisof convenience sampling from Solan town of Himachal Pradesh. Simple
mathematical and statistical tools were used that were percentage method, total weightage
method and also Chi-square test and F test for analysing the relationship between preferred
usability features and demographic variables.
Research Objectives: The research’s objectives have taken an overall overview and attempt
to indicate the comprehensive notion pertain to consumer preference for Smartphone. Largely
study has focussed with the objectives of:
 To identify the factors affecting consumer preference for Smartphone.
 To study the relationship of consumer preference with demographic variables in regard to
usability of Smartphone.
 To study the sources of information that helps in building consumer preference for
distinctive product line of smart phones.
3. RESULTS & DISCUSSION
3.1 Socio- Economic Profile of the Respondents
The study reported that maximum of the respondents are between the age categories ranging
from 19-30 years (61.3%).In reference to the gender status, 65% are male and 35% are
female respondents. Most of the respondents are graduates. As per the occupational status,
42.5% are students, 27.5% are servicemen, 15% are businessmen and 7.5% are professionals.
(Table 1)

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Table 1: Socio- Economic Profile of the Respondents
Demographic variables Details No. of respondents (%)
Age (in years) 19-30 years 61.3%
31-45 years 17.5%
Above 46 years 21.3%
Gender Male 65%
Female 35%
Educational Qualification HighSchoolGraduation 1.3%
Post Graduation 52.5%
46.3%
Occupational status Professional 7.5%
Service 27.5%
Business 15.0%
Students 42.5%
Others 7.5%
Income (Rs./month) Less than Rs. 20,000 47.0%
Rs. 20,001 - Rs. 30,000 20.0%
Rs. 30,001 - Rs. 40,000 10.0%
Rs. 40,001– Rs. 50,000 12.5%
Above Rs. 50,000 10.0%
Total 100%
3.2 Factors building preference and preferred usability features
It has been clearly stated that there are various factors and usability features that determine
consumer preference, the study depicted that the respondents considered usage ease and
processing speed as major factors building preference followed closely by technological
needs and applications. However, recreation and social impact were comparatively
considered less preferred.(Table 2) The respondents mainly use their Smartphone for making
calls, messaging (e.g. sms, whtsapp etc.) and internet browsing. This observation was closely
followed by using Smartphone for email and social networking (e.g. facebook, twitter etc.).
However, game applications, entertainment and video calls were comparatively less used
features. (Table 3)
Table 2: Factors building preference in Smartphone
Preference Level Total
Factors Building (Response And Weight) Weightage Rank
Preference Score
Highly Moderately Least
Preferred (3) Preferred (2) Preferred (1)
Usage Ease 56 19 5 211* I
Recreational 32 44 4 188 V
Processing Speed 54 23 3 211 I
Product Features 44 31 5 199 IV
Applications 43 34 3 200 III
Social Impact 33 35 12 181 VI
Technological Needs 50 25 5 205 II
Handset 29 39 12 177 VII
Transformation
Others 13 29 38 135 VIII
*56*3+19*2+5*1=211 (Source: Primary probe)
Table 3: Features mostly used by the respondents
Preferred Features Total
Usability (Responses And Weights) Weightage Rank
Features Score
I II III IV V VI VII VIII
(8) (7) (6) (5) (4) (3) (2) (1)

Messaging 16 19 13 15 8 6 1 2 468* II
InternetBrowser 9 18 20 15 10 7 1 0 456 III
GameApplicati 2 5 7 12 9 11 17 17 VI
ons 273
Email 4 11 18 10 14 11 8 4 376 IV
Calls 38 9 3 6 11 9 2 2 492 I
VideoCalls 0 3 4 5 5 19 10 34 201 VIII
SocialNetwork 9 12 9 11 13 9 11 6 372 V
Entertainment 2 3 6 6 10 8 30 15 242 VII
*16*8+19*7+13*6+15*5+8*4+6*3+1*2+2*1=468 (Source: Primary probe)

3.3 Discovery of influence, sources of awareness and benefits derived

It have been learnt from the analysis that relative advantage is major influence followed
closely by compatibility and social influence (Table 4). It have been observed that the
respondents considered internet and mass media as important information sources generating
consumer awareness followed closely by peers and family. However, retailer, company and
others were comparatively preferred less (Table 5). It have been learnt that the respondents
ranked convenience and multitasking as most important benefits derived by Smartphone
users. This observation was closely followed by value for money and infotainment. However,
social acceptance and durability were comparatively less derived benefits (Table 6)
Table 4: Various influences on respondents
Influences Percentage
Social Influence 23.8
Relative Advantage 36.3
Compatibility 35.0
Price 5.0
Total 100.0
(Source: Field Survey)

Table 5: Information sources creating awareness among respondents

Preference Level (Response And Weight) Total Rank
Information Highly Preferred Moderately Least Weightage
Sources (3) Preferred (2) Preferred (1) Score
Mass Media 50 25 5 205* II
Internet 55 20 5 210 I
Peers, Friends & 39 36 5 III
Family 194
Retailer 10 42 28 142 IV
Company 10 31 39 131 V
Others 11 25 44 127 VI
*50*3+25*2+5*1=205 (Source: Primary probe)
Table 6: Benefits derived by the respondents
Preferred Benefits Total
Benefits (Response And Weight) Weightage Rank
Score
I(6) II(5) III(4) IV(3) V(2) VI(1)
Convenience 27 15 13 13 8 4 348* I
Social Acceptance 2 16 19 8 21 14 248 V
Infotainment 10 9 9 21 16 15 251 IV
Multitasking 25 16 19 6 8 6 346 II
Value For Money 10 11 9 20 21 9 262 III
Durability 6 13 11 12 6 32 225 VI
27*6+15*5+13*4+13*3+8*2+4*1=348 (Source: Primary probe)

3.4: Relationship between preferred usability features of Smartphone with demographic

variables.
It have been observed from the analysis that a significant relationship exists between the
preferred usability features of Smartphone and age. It is found that highest level of
significance emerged for emails (F=3.53; P<0.05) and entertainment (F=4.32; P<0.05) (Table
7). There is no significant relationship between the preferred usability features of Smartphone
and occupational status but after taking intrinsic view it is observed that the highest level of
significance emerged for internet browser (F=2.62; P<0.05), game applications (F=3.32;
P<0.05) and entertainment (F=2.65; P<0.05) (Table 8). Even there is no significant
relationship between the preferred usability features of Smartphone and income status but
after taking intrinsic view it is observed that highest level of significance emerged for game
applications (F=3.32; P<0.05) (Table 9).
Table 7: Relationship between the preferred usability features of Smartphone and age
Usability Features Age in Years F¹ P(Cv)²
19-30 31-45 More than 46
Mean S.D Mean S.D Mean S.D
Messaging 2.82 1.69 3.71 1.68 3.65 1.93 2.32 0.105
Internet Browser 3.20 1.65 3.14 1.29 3.71 1.21 0.78 0.461
Game Apps. 5.22 2.05 6.14 1.87 6.18 1.87 2.10 0.129
Email 4.73 2.01 3.64 1.44 3.59 1.54 3.53 0.034*
Calls 3.65 2.23 2.14 1.74 1.12 0.48 12.21 0.001
Video calls 6.67 1.72 6.00 1.36 6.35 1.36 0.89 0.415
Social Network 4.18 2.19 4.36 2.30 4.82 2.03 0.54 0.584
Entertainment 5.51 2.07 6.86 1.23 6.59 1.17 4.32 0.017*
¹ Factor Value (Source: Primary probe)

²Significant Value

*P(Cv) >0.001, <0.005

Table 8: Relationship between the usability factors building consumer preference and
occupation
Usability Occupational Status
Features
F¹ P(Cv)²
Professional Service Business Student Others
Mean S.D Mean S.D Mean S.D Mean S.D. Mean S.D.
Messaging 3.17 1.72 3.45 1.81 3.00 1.477 3.03 1.76 3.00 2.60 0.22 0.924
Internet 3.00 1.78 3.59 1.33 3.75 1.60 2.79 1.47 4.50 1.04 2.62 0.041*
Browser
Game 4.00 2.09 6.36 1.78 6.50 1.56 5.21 2.07 4.67 1.75 3.32 0.015*
Apps.
Email 3.83 2.13 3.86 1.55 2.67 0.98 5.12 1.91 5.00 1.78 5.34 0.001
Calls 5.33 1.86 1.73 1.45 2.50 2.46 3.44 2.10 1.83 1.60 5.48 0.001
Video 7.33 1.03 5.91 2.11 5.92 1.44 6.82 1.54 7.00 1.67 1.82 0.132
calls
Social 3.00 2.36 4.64 1.91 4.67 2.10 4.26 2.27 4.50 2.58 0.75 0.561
Network
Entertain 6.33 1.50 6.45 1.68 7.00 0.73 5.32 2.09 5.50 1.97 2.65 0.039*
ment
¹ Factor Value (Source: Primary probe)

²Significant Value

*P(Cv) >0.001, <0.005

Table 9: Relationship between the usability factors building consumer preference and
Income
Income (Rupees/Month)
Usability F¹ P(Cv)²
Features Less than 20,001- 30,001- 40,001- More than
20,000 30,000 40,000 50,000 50,000
Mean S.D Mean S.D Mean S.D Mean S.D Mean S.D
Messaging 2.97 1.56 3.19 2.63 3.38 1.68 3.30 1.56 3.50 1.06 0.21 0.929
Internet 2.74 1.48 4.19 1.42 4.13 1.35 3.30 0.94 3.38 1.59 3.75 0.008
Browser
Game 5.24 2.04 4.69 1.92 6.63 1.68 6.90 1.44 6.38 1.84 3.32 0.015*
Apps.
Email 4.87 1.94 4.75 1.61 3.13 1.72 3.80 1.61 2.5 0.92 4.48 0.003
Calls 3.24 2.05 3.44 2.44 1.75 1.75 1.90 1.72 2.1 2.47 1.89 0.121
Video 6.95 1.50 6.06 2.40 6.00 2.07 6.50 1.17 5.6 0.7 1.62 0.178
calls
Social 4.37 2.12 3.63 2.33 5.25 1.16 3.80 2.20 5.5 2.4 1.55 0.195
Network
Entertain 5.63 2.01 6.06 1.73 5.75 2.49 6.50 1.50 7.00 0.0 1.16 0.332
ment
¹ Factor Value (Source: Primary probe)

²Significant Value

*P(Cv) >0.001, <0.005

4. CONCLUSION
The consumers considered usage ease and processing speed as major factors building
preference followed closely by technological needs and applications. Thus, Smartphone
companies must focus mainly on usage ease, processing speed, applications and
technological needs so as to build strong preference for Smartphone and give an edge to a
particular brand.The consumers mainly use their Smartphone for making calls, messaging
(e.g. sms, whtsapp etc.) and internet browsing. This observation was closely followed by
using Smartphone for email and social networking (e.g. facebook, twitter etc.). Thus,
Smartphone companies must emphasize on enhancing calling, messaging and internet
browsing features by focusing on hardware compatibilities and thus providing a competitive
edge.
Most of the consumers considered relative advantage to be a major influence followed
closely by compatibility and social influence. Thus, relative advantage of a Smartphone
should be attributed to attract consumers and stakeholders. The consumers considered
internet and mass media as important information sources generating consumer awareness
followed closely by peers and family. Thus, the Smartphone companies must focus mainly on
providing more information about their product through internet and mass media. Even
emphasis on improvising retailer and company sources should be made for generating more
awareness among consumers.The consumers ranked convenience and multitasking as most
important benefits derived by Smartphone users. Thus, the Smartphone companies must
emphasize on delivering convenience and facilitate multitasking.
While observing the relationship between preferred usability features and age, the highest
level of significance emerged for emails and entertainment. The companies that more
emphasis should be laid on enhancing features for emails and entertainment for positioning
their Smartphone for various targeted consumers. While observing relationship between
preferred usability features and occupational status, the highest level of significance emerged
for internet browser, game applications and entertainment. The companies that more
emphasis should be laid on enhancing features for internet browsing, game applications and
entertainment for positioning their Smartphone for various targeted consumers. While
observing relationship between preferred usability features and income status, the highest
level of significance emerged for game applications.Thus, more emphasis should be laid on
enhancing features for game applications for positioning their Smartphone for various
targeted consumers.
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