FACTORS AFFECTING CONSUMER

PURCHASE INTENTION TOWARDS

APPLE MOBILE PHONE

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A Study on the Consumer Purchase Intention
towards Apple Mobile Phone

Research Paper
Submitted By

Gauresh Bandal

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Abstract: The main aim of the research paper was to identify and understand the factors which
influence the purchase intentions of Apple mobile phones in the specific regional context of Goa.
The data for the study was collected through a structured questionnaire administered to 100
respondents in Goa. The questionnaire aimed to capture insights into consumer preferences,
behaviors, and the factors that play a role in shaping their decisions to purchase Apple mobile
phones in the Goan market. In the research paper, various analyses and tests were conducted which
included Principal Component Analysis (PCA) with Promax rotation to identify underlying
factors, inter-component correlation analysis to examine relationships between factors, and
reliability analysis using Cronbach's Alpha to assess the internal consistency of identified factors.
The findings indicate that brand loyalty emerges as a dominant factor, closely intertwined with
considerations of safety and security. Social influence plays a moderate yet significant role, while
value for money is identified as a contributing factor, though with comparatively less influence.
This research contributes to the understanding of consumer behavior in the Goan region, providing
marketers and policymakers with valuable insights for tailoring strategies to the unique dynamics
of this market.

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CHAPTER 1
Introduction

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 Introduction
According to the Oxford Dictionary, it defines technology as “The application of scientific
knowledge for practical purposes, especially in industry” (Thierer, 2014). Through application of
scientific knowledge it often leads to the development of new tools, products, and services that
improve our daily lives. Technology has advanced rapidly in recent years, leading to a wide range
of innovations that have transformed the way we live and work. The internet and digital
communication technologies have revolutionized the way we access and share information, while
artificial intelligence and machine learning have enabled machines to learn from data and make
informed decisions.
Mobile technology, in particular, has significantly impacted our lives by providing portable
electronic devices such as smartphones, tablets, and wearable devices that allow users to access
information, communicate with others, and perform a wide range of tasks on the go. It has
transformed the way people live and work, providing them with access to information and services
anytime, anywhere. It has also changed the way businesses operate, enabling them to improve
productivity, enhance customer engagement, and streamline operations. However, privacy &
security concerns have also been raised, making it crucial for users to take steps to protect
themselves (Mobile Technologies, 2021).
In the mobile phone industry, Apple Inc. is one of the leading companies that has managed to
capture the attention of consumers worldwide. Apple Inc. is an American multinational technology
company headquartered in Cupertino, California. Apple is the largest technology company by
revenue, totaling US$394.3 billion in 2022. As of March 2023, Apple is the world's biggest
company by market capitalization. With its sleek designs, advanced features, and innovative
marketing campaigns, Apple has established itself as a major player in the market. However, in
today's competitive world, it is important to understand the factors that affect consumer purchase
intention towards Apple mobile phones.
Consumer purchase intention is the willingness of a consumer to buy a particular product or service
(Cuofano, 2023). The factors that influence this intention can be both internal and external. Internal
factors include individual attitudes, beliefs, and personality traits, whereas external factors include
social and cultural factors, marketing activities, and product-related attributes.
This research paper aims to investigate the factors that affect consumer purchase intention towards
Apple mobile phones. The study will analyze both internal and external factors that influence
consumer behaviour. There are different factors that affect customer purchase intention which
includes social factor, price factor, perceived risk, brand loyalty, and product features.
Understanding these factors can help Apple Inc. to improve its marketing strategies, enhance
product features, and strengthen its brand image.
1.1 Objectives
● To determine factors affecting consumer purchase intention on Apple mobile phone in Goa.
● To determine the correlation among the factors identified.

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1.2 Research Methodology
In this research, primary data collection method was used to obtain data directly from first-hand
sources i.e., from individuals in Goa who were potential consumers of Apple Mobile Phones. A
convenience sampling method was employed to select participants for the survey. Respondents
were recruited through online platforms and social media, ensuring a diverse sample. The primary
data was collected through a questionnaire survey method, which included Likert scale questions
and consisted of two sections.
In the research paper, various analyses and tests were conducted which included Principal
Component Analysis (PCA) with Promax rotation to identify underlying factors, inter-component
correlation analysis to examine relationships between factors, and reliability analysis using
Cronbach's Alpha to assess the internal consistency of identified factors.
1.5 Literature Review
➢ The article by Ayodele and Ifeanyichukwu1 is a research paper that examines the factors
influencing smartphone purchase behavior among young adults in Nigeria. The authors use
a survey research design and a quota sampling technique to collect data from 437
respondents in Anambra State, Nigeria. They test five hypotheses using multiple regression
analysis and find that brand name, product feature, aesthetic value, price, and social
influence are all significant predictors of smartphone purchase behavior among young
adults in Nigeria.

➢ The article by Wong2 is a research paper that summarizes the factors that influence the
purchase intention of smartphones among college students in Hong Kong. The author uses
a survey research design and a quota sampling technique to collect data from 437
respondents in Anambra State, Nigeria. He tests five hypotheses using multiple regression
analysis and finds that brand name, product feature, aesthetic value, price, and social
influence are all significant predictors of smartphone purchase intention among college
students in Hong Kong.

➢ The article by Agarwal, Sahoo, and Agarwal3 is a research paper that studies the factors
affecting adult buying behaviour with reference to mobile phones in Bhubaneswar and
Cuttack, the leading cities from the state of Odisha, India. The authors use primary and
secondary data sources and ANOVA to analyze the data from 610 respondents. The authors
find that brand name, product features, price, social influence, and aesthetic value are the
main factors that influence the purchase decision of mobile phones among adults in the
twin cities. The authors also suggest some implications and recommendations for mobile
phone marketers and manufacturers to target the potential customers in these markets. The
article also discusses the limitations and scope for future research.

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Ayodele, Adeola Adetola and Chioma Dili Ifeanyichukwu.2016, Factors Influencing Smartphone Purchase
Behavior Among Young Adults in Nigeria. Int J Recent Sci Res. 7(9), pp. 13248-13254.
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A STUDY OF PURCHASE INTENTION ON SMARTPHONES OF COLLEGE STUDENTS IN HONG KONG
Anthony Tik-Tsuen WONG, Caritas Institute of Higher Education
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A Study on Factors Affecting Mobile Phone Buying Behaviour in Bhubaneswar and Cuttack Varun Agarwal,
Rashmita Sahoo and Ankita Agarwal

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 ➢ The article by Ibrahim4 is a research paper that examines the factors that influence the
purchase intention of smartphone among adolescents in Perlis, Malaysia. The author uses
a survey research design and a quota sampling technique to collect data from 379 young
adults aged 19-26 who live in Perlis. The author uses correlation and multiple regression
analysis to test the hypotheses and find that relative advantages, price, social influence, and
compatibility are the main factors that affect the purchase intention of smartphone among
the respondents.

➢ The article by Uddin, Xu, and Azim5 is a research paper that investigates the factors that
affect the buying decision of mobile handsets in Bangladesh. The authors use a survey
research design and a quota sampling technique to collect data from 432 respondents who
use mobile phones in Bangladesh. The authors use factor analysis to test the hypotheses
and find that seven features, namely physical attributes, brand image, uniqueness,
emotional appeal, ease of operation, social identity, and price, are the main determinants
of purchase decision. The authors also provide some recommendations, implications, and
future directions for mobile phone marketers and researchers.

➢ The article by Zahid and Dastane6 is a research paper that examines the factors that affect
the purchase intention of South East Asian (SEA) young adults towards global smartphone
brands. The authors use a survey research design and a quota sampling technique to collect
data from 200 SEA young adults studying in one of the public universities in Malaysia.
They test four hypotheses using correlation and regression analysis and find that perceived
price, perceived quality, brand awareness, and social influence are all significant predictors
of purchase intention.

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Antecedent Stirring Purchase Intention of Smartphone among Adolescents in Perlis - Ima Ilyani Ibrahim
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Factors Affecting Mobile Handset (MH) Buying Decision: An Empirical Study - M. Aftab Uddin, H. Xu, M. Tahlil
Azim
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Factors Affecting Purchase Intention of South East Asian (SEA) Young Adults towards Global Smartphone Brands
- Wahid Zahid and Omkar Dastane

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CHAPTER 2
Data Analysis

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 Data Analysis

Results

Descriptives
What is your What is your current What is your monthly
age? status? income?

N 100 100 100

Missing 0 0 0
Mean 2.04 1.35 1.31
Median 2.00 1.00 1.00
Standard
0.374 0.557 0.734
deviation
Minimum 1 1 1
Maximum 4 3 4

Interpretation

Descriptive statistics for age, current status, and monthly income:

• Age:
o Mean: Respondents' average age is 2.04 years, with a relatively low standard
deviation of 0.374, indicating a narrow age distribution.
• Current Status:
o Mean: The average current status is 1.35, showing moderate variability (SD =
0.557) around this central tendency.
• Monthly Income:
o Mean: The mean monthly income is 1.31, with a moderate standard deviation of
0.734, suggesting moderate variability in income levels.

In summary, for age, the respondents generally have a consistent and tightly distributed age profile.
Regarding current status and monthly income, there is moderate variability, suggesting diversity
in respondents' current statuses and monthly incomes. These descriptive statistics offer a snapshot
of the central tendency and spread within these demographic variables, providing a foundation for
further analysis and interpretation within the research study.

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Assumption Checks

Bartlett's Test of Sphericity

χ² df p

1836 276 < .001

Interpretation
Bartlett's test of sphericity returned a highly significant p-value (<0.001), indicating strong
evidence against the null hypothesis of no significant correlation among variables. This supports
the appropriateness of conducting factor analysis on the dataset.

Principal Component Analysis

FACTORS AFFECTING CONSUMER PURCHASE INTENTION TOWARDS APPLE
MOBILE PHONE
Component
Loadings

Component
2 4
Safety 3 Value
1 & Social for
Scale Items Brand Loyalty Security Influence Money Communality
Brand Loyalty 5 1.11 0.879
Brand Loyalty 6 1.082 0.829
Brand Loyalty 4 1.011 0.758
Brand Loyalty 3 1.006 0.814
Brand Loyalty 1 0.599 0.774
Brand Loyalty 8 0.597 0.687
Brand Loyalty 7 0.538 0.639
Brand Loyalty 2 0.715
Value for Money 4 0.661
Performance 0.627
Safety & Security 1.039 0.808
Safety & Security 1 1.02 0.785
Safety & Security 2 0.853 0.749
Safety & Security
(2) 0.568 0.748
Value for money 5 0.722

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 Brand Loyalty 0.664
Social Influence 1 0.803 0.63
Social Influence 2 0.798 0.521
Social Influence 0.719 0.51
Social Influence 3 0.319
Value for money 0.859 0.749
Value for money 1 0.811 0.742
Value for money 3 0.634 0.507
Value for money 2 0.501 0.504
Note. 'promax'
rotation was used

Interpretation
In this study, Principal Component Analysis with Promax rotation identified four key factors
influencing consumer purchase intention for Apple mobile phones in Goa:

• Brand Loyalty: Strong positive factor loadings (1.11 to 0.538) indicate a significant
association between brand loyalty and purchase intention.
• Safety and Security: Factor loadings (1.039 to 0.568) highlight the importance of safety
and security considerations in influencing consumer decisions.
• Social Influence: Factor loadings (0.803 to 0.719) emphasize the role of social factors in
shaping purchase intentions.
• Value for Money: Factor loadings (0.859 to 0.501) suggest that consumers consider the
value-for-money aspect in their purchase decisions.

Reliability Analysis

Factors Cronbach's α
Brand Loyalty 0.939
Safety & Security 0.900
Social Influence 0.615
Value for Money 0.722

• Interpretation
• The Cronbach's Alpha values of each factor are significant as they reflect the extent to
which the variables within each factor consistently measure the intended construct. High
Cronbach’s Alpha values, such as those observed for ‘Brand Loyalty’ and ‘Safety and
Security,’ suggest strong internal consistency and reliability, while moderate values for
‘Social Influence’ and ‘Value for Money’ indicate reasonable consistency.

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 Inter-Component Correlations
Brand Safety & Value for
Social Influence
Loyalty Security Money

Brand Loyalty — 0.688 0.538 0.146

Safety &
— 0.384 0.300
Security
Social Influence — 0.111
Value for
—
Money

Interpretation:
In our analysis, we explored relationships between components influencing purchase intention:

• Brand Loyalty and Safety & Security (r = 0.688): Strong positive correlation; individuals
prioritizing brand loyalty also value safety and security.
• Brand Loyalty and Social Influence (r = 0.538): Moderate positive correlation; brand-loyal
consumers are influenced by societal factors.
• Brand Loyalty and Value for Money (r = 0.146): Weak correlation; brand loyalty doesn't
strongly align with prioritizing value for money.
• Safety & Security and Social Influence (r = 0.384): Noteworthy positive correlation; safety-
conscious consumers also influenced by social factors.
• Safety& Security and Value for Money (r = 0.300): Moderate positive correlation; those
valuing safety & security also consider value for money.
• Social Influence and Value for Money (r = 0.111): Weak correlation; social influence and
value for money are very weakly correlated.

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 CHAPTER 3
Findings & Conclusion

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 Findings & Conclusion

Based on the analysis of primary data, the study revealed that out of the 100 respondents, a
majority of them were in the age group of 18-25 years, were students, and had a monthly income
below 35,000 & most commonly used mobile operating system among the respondents was
Android, with only 20% using iOS. The reliability of the questionnaire was assessed using
Cronbach's alpha, which was found to be 0.925 for the 25 items which indicated a high degree of
internal consistency and reliability of the questionnaire. The study also identified four key factors
that affect consumer purchase intention towards Apple mobile phones, namely Brand Loyalty,
Safety & Security, Social Influence, and Value for money.
The factor with the highest factor loading was Brand Loyalty, indicating that the respondents'
intention to purchase an Apple mobile phone was largely influenced by this factor. Apple has a
strong reputation for quality and innovation, which can make consumers feel more confident in
their purchase decision. The company’s reputation goes back to days of Macintosh computers.
Consumers identify the brand as the one that delivers its promises. As a result, the majority of
them exhibit their loyalty towards their products. Apple has been using the tag of innovation and
creativity effectively. It is responsible for several technology revolutions in the industry.
Therefore, customers believe in their products and services. Apple offers a complete ecosystem
of products and services that work seamlessly together, including Mac computers, iPads, and
Apple Watches. This can create a sense of loyalty among consumers who prefer the convenience
of an all-Apple ecosystem.
Safety & Security was considered as the second most important factor while purchasing an
Apple mobile phone. iPhone devices are generally considered to be more secure than Android
devices due to their closed system, regular software updates, encryption, device lockdown, and
strict app review process. In a world where privacy is a myth, Apple has a reputation for taking
user privacy seriously, and their mobile operating system, iOS, is designed with several features
that prioritize user privacy. These include granular control over app permissions, hardware
encryption, data sharing, and limit ad tracking. Apple's App Store is known for its strict review
process, which helps ensure that apps are safe and free of malware. Additionally, Apple's mobile
devices are known for their ease of use, intuitive interfaces, and quality design, which can make
them attractive to consumers who prioritize usability and user experience. Overall, the
combination of security and usability features make Apple mobile phones an appealing choice
for consumers who prioritize these factors in their purchasing decisions.
Social Influence was considered as the third most important factor while purchasing an Apple
mobile phone. Owning an iPhone is often seen as a status symbol, especially among teenagers. In
times where social media handles are the biggest flex, camera quality of the phone becomes a
major factor while choosing the smartphone brand. iPhone is generally considered to have an
exceptional camera when compared to other brands. Apple has cultivated a brand image that
appeals to younger audiences due to its sleek and modern design, user experience, and apps and
services. Parents may be more likely to purchase iPhones for their children due to the perceived
safety and security features, leading to a greater prevalence of iPhones among teenagers. As a
result, it justifies the majority of the respondents being youths. Overall, the combination of
strong brand image, social status, positive word of mouth, and a robust ecosystem can contribute
to Brand Loyalty & Social Influence being an important factor in purchasing an Apple mobile
phone.
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The "Value for Money" factor in the context of iPhones encompasses consumers' perceptions of
whether the device justifies its cost. Apple positions iPhones as premium devices, emphasizing
high build quality, cutting-edge technology, and a sleek design, contributing to a sense of luxury
and value. Consumers often view iPhones as a long-term investment due to their durability,
longer lifespan, and consistent software updates. Additionally, iPhones tend to retain their value
well in the second-hand market, enhancing the overall value proposition. The integration within
Apple's ecosystem, seamless interoperability with other Apple products, and a positive user
experience further contribute to the perceived value for money. While the initial price may be
higher than some competitors, consumers weigh the long-term benefits, resale value, and
ecosystem advantages, making "Value for Money" a factor in their decision to choose an iPhone.
In conclusion, the study successfully identifies key factors influencing Apple mobile phone
purchases among the sampled demographic. However, limitations such as sample size and
geographic scope could impact generalizability. Future studies should expand these parameters
and explore additional factors affecting consumer purchase intentions for Apple mobile phones.

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Bibliography

• Apple’s iPhone and Consumer Behavior. (2022, June 10). Retrieved from StudyCorgi:
https://studycorgi.com/apples-iphone-and-consumer-behavior/
• Cuofano, G. (2023, January 25). What Is Purchase Intention? Purchase Intention In A
Nutshell. Retrieved from FourWeekMBA: https://fourweekmba.com/purchase-intention/
• Mobile Technologies. (2021, November 9). Retrieved from GeeksforGeeks:
https://www.geeksforgeeks.org/mobile-technologies-definition-types-uses-advantages/
• Thierer, A. (2014, April 29). Defining “Technology”. Retrieved from The Technology
Liberation Front: https://techliberation.com/2014/04/29/defining-technology/
• Ayodele, Adeola Adetola and Chioma Dili Ifeanyichukwu.2016, Factors Influencing
Smartphone Purchase Behavior Among Young Adults in Nigeria. Int J Recent Sci Res.
7(9), pp. 13248-13254.

• A Study of Purchase Intention on Smartphones of College Students in Hong Kong by

Anthony Tik-Tsuen WONG, Caritas Institute of Higher Education

• A Study on Factors Affecting Mobile Phone Buying Behaviour in Bhubaneswar and

Cuttack by Varun Agarwal, Rashmita Sahoo and Ankita Agarwal

• Antecedent Stirring Purchase Intention of Smartphone among Adolescents in Perlis - Ima

Ilyani Ibrahim

• Factors Affecting Mobile Handset (MH) Buying Decision: An Empirical Study - M. Aftab
Uddin, H. Xu, M. Tahlil Azim

• Factors Affecting Purchase Intention of South East Asian (SEA) Young Adults towards
Global Smartphone Brands - Wahid Zahid and Omkar Dastane

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ANNEXURES

Survey Form

FACTORS AFFECTING CONSUMER PURCHASE INTENTION TOWARDS

APPLE MOBILE PHONE

Section A: General Information

1. What is your age?

o Below 18

o 18-25

o 26-30

o Above 30

2. What is your current status?

o Student

o Working

o Others

3. What is your monthly income?

o Below 35,000

o 35,000-65,000

o 65,000-95,000

o Above 95,000

4. What is your current Mobile Operating System?

o iOS

o Android OS

o Others

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5. How much money do you spent on your smartphone?

o Below 15,000

o 15,000-35,000

o 35,000-55,000

o Above 55,000

6. Which smartphone brand do you prefer?

o Apple

o Samsung

o Xiaomi

o Vivo

o Oppo

o Others

7. What is your impression of iPhone?

o Excellent

o Good

o Fair

o Poor

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Section B: Factors affecting consumer purchase intention towards Apple mobile phone

[1 = strongly disagree; 2 = disagree; 3 = neutral; 4 = agree and 5 = strongly agree]

SD D N A SA

1 I learn from my friends, family and classmates

about the iPhone.

2 If my friends purchase an iPhone, I will also

purchase an iPhone

3 I will share information about the iPhone with

my friends

4 Most of my friends and family are use iPhone

5 Price is the important factor when purchasing a

smartphone

6 I compare prices of different smartphones

before choosing one

7 I will buy an iPhone if they are worth using in

terms their price and usage quality

8 I am uncertain whether the iPhone provides real

value for money in terms of product quality

9 The cheapness of some Smartphone brands

suggests to me that they may have some risks,
such as low quality

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10 The personal information that I provide for
Apple is more secure than Android

11 The monetary information that I provide for

Apple is well protected than Android

12 Compared to Android, Apple will not use

unsuitable methods to collect my personal data

13 I would not buy other brands if the iPhone is

available. I will buy iPhone as long as it provides
me satisfied product

14 The iPhone is one of the preferred brands I want

to buy

15 The iPhone would be my first choice

16 In general, what I get from iPhone is worth the

cost

17 All things considered (hardware, software), the

iPhone is a good buy

18 In general, compared to other brand, iPhone is

good value for the money.

19 In general, the iPhone consistently performs

better than other brands

20 In general, compared to other brand, the iPhone

is of very high quality

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21 In general, iPhone is aesthetically pleasing

22 I intend to become Apple customer

23 My willingness to purchase Apple is high

24 I am likely to become Apple iPhone customer

25 I have a high intention to purchase Apple iPhone

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