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Factors Influencing Smartphone Purchase Intention: A Study among

Filipino Generation Z within the National Capital Region

Margaret Natalie V. Briones1, Eliza Anne B. Evangelista1, Aljohn Emmanuel Y. Go1*, and
Karyl Christine L. Sy1
1
De La Salle University Integrated School,( Manila)
*corresponding email: aljohn_go@dlsu.edu.ph

Mr. Reynaldo A. Mones, MBA1


1
De La Salle University,(Manila )

Abstract: As we progress into the digital era, smartphones have become increasingly important and
integrated into our daily lives. The unanticipated shift to an online setting brought upon by the
COVID-19 pandemic raised technology’s significance in education, causing Generation Zs to
consider purchasing smartphones. With recent technological innovations and sophisticated
marketing strategies, consumers take various considerations into account when deciding to buy
smartphones. Hence, the main objective of this research is to determine to what extent the factors
(i.e., brand, product features, price, convenience, social influence, and smartphone dependency)
influence the Filipino Gen Z's intention to purchase smartphones. To investigate the determining
nature of the relationship between variables, a quantitative correlational approach was conducted.
Moreover, a structured online survey form adapted from previous literature was distributed to 400
Filipino Gen Z residents from the National Capital Region through a convenient sampling technique.
Using SPSS v24, descriptive analysis, Spearman's rho, and multiple regression analysis were carried
out to analyze the primary data. The results reveal that brand, product features, convenience, and
smartphone dependency are influential in convincing consumers to purchase smartphones.
Contrarily, price and social influence show no significant relationship with their intent to buy
smartphones. Overall, the factors, when taken all together, are statistically insignificant. This implies
that there are further independent variables that may be significant in explaining the variation in
smartphone purchase intention.

Keywords: smartphone; purchasing intention; consumer behavior; Filipino Generation Z; National


Capital Region

1. INTRODUCTION In response to the online shift brought by the COVID-19


pandemic, most Filipino Generation Z students in the National
Smartphones have become an integral part of daily Capital Region opted to buy smartphones to aid them in
human life as they are used for day-to-day activities, including transitioning to online learning (GMA News, 2021).
communicating and learning (Ajaegbu et al., 2019). It
performs a variety of functions, including data storage, internet The National Capital Region (NCR) is the
connectivity, and promoting lifestyle efficiency (John, 2018). administrative region of the Philippines, occupying the central

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section of Luzon. It is composed of 16 cities and one 2.1. Conceptual Framework
municipality namely, Caloocan City, Malabon City, Navotas
City, Valenzuela City, Quezon City, Marikina City, Pasig Upon analyzing similar studies, the researchers
City, Taguig City, Makati City, Manila City, Mandaluyong observed that most papers utilized the Theory of Reasoned
City, San Juan City, Pasay City, Parañaque City, Las Piñas Action (TRA) and the Technology Acceptance Model (TAM)
City, Muntinlupa City, and the municipality of Pateros (Lau et al., 2016; Mohammed, 2018). With further research on
(National Nutrition Council, 2020). Dimock (2019) defined these theories, the researchers have decided to use Ajzen’s
individuals of the Generation Z age group as people who were Theory of Planned Behavior (TPB) (Ajzen, 1985), a modified
born between 1997 to 2012 and have lived and grown in an TRA, as the framework for this study. The TPB model presents
"always-on" technological environment. six constructs that illustrate the actual control of a person over
a behavior - attitudes, behavioral intention, perceived
To cater to the increase in smartphone demand, most behavioral control, perceived power, social norms, and
brands are constantly trying to provide additional competitive subjective norms (LaMorte, 2019).
advantages and differentiating elements to persuade
consumers to purchase their devices. In such a competitive The TPB model was used to supplement the
industry, smartphone manufacturers and producers face fierce hypotheses shown in the conceptual framework. Of the six
competition in creating and sustaining superior products TPB constructs mentioned in the theoretical framework, three
valued by evolving customer needs. Consequently, the vast constructs - attitude, subjective norms, and behavioral control
array of products flusters the consumers' minds about which - directly relate to behavior intention. The concept of the six
specific device they intend to purchase. As present society independent factors (i.e., brand, product features, price,
further transitions into a digital era, the significance of convenience, social influence, and smartphone dependency)
smartphones increases. Thus, it is crucial to consider factors used in the study were derived from these three constructs.
that may affect a smartphone's performance.
Figure 01
Previous studies such as "Factors affecting The Conceptual Framework of the Study
smartphone purchase decisions of Generation-Y" by Hie et al.
(2017) and "Factors Influencing Purchasing Intention of
Smartphone among University Students" by Abas et al. (2016)
have been conducted amongst Generation Y and university
students from other countries. However, it is identified that no
related literature has been found to be published or conducted
locally, specifically in the parameters of Filipino Generation Z
consumers in the National Capital Region. This necessitates
the question, "What factors influence the smartphone purchase
intention of Filipino Generation Z in the National Capital
Region?" The general objective of this study is to investigate
the extent to which brand, product features, price,
convenience, social influence, and smartphone dependency
Note. The conceptual framework was adapted from Kumar.R,
simultaneously influences the smartphone purchase intention
R., & Fernandez, D. (2020). Factors Influencing the Purchase
of Filipino Generation Z consumers' residing within the
Decision of Smartphone Users in Sultanate of Oman. Journal
National Capital Region (NCR). Moreover, this study also
of Marketing and Consumer Research, 72, 43.
aims to investigate to which extent each factor (i.e., brand,
product features, price, convenience, social influence, and
Purchase Intention: Purchase intention pertains to the
smartphone dependency) individually influences the Filipino
readiness and inclination of consumers to purchase a particular
Gen Z's smartphone purchase intention.
product or service (Zhang et al., 2020).
2. METHODOLOGY Brand: The brand encompasses everything about a business

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— from consumer perceptions, promise, identity, and Social Influence: Social influence is defined as the association
reputation (Lumen Learning, 2015). Furthermore, Lischer of a particular group's members, which affects one's socially
(2021) expressed that strong brands attract customers willing validated decision. If they receive positive feedback, they are
to spend more on their products. A handful of research reveals more likely to engage in the behavior. A diverse number of
a positive correlation between the product brand and studies reveal a significant relationship between social
purchasing intention (Kumar & Fernandez, 2020; Mohammed, influence and purchase intention (Kumar & Fernandez, 2020;
2018; Hie et al., 2017; Abas et al., 2016). Mohammed, 2018: Hie et al., 2017; Abas et al., 2016).

H1: There is a significant relationship between the brand and H5: There is a significant relationship between social influence
Generation Z’s smartphone purchase intention. and Generation Z’s smartphone purchase intention.

Product Features: Product features refer to a product's Dependency on Smartphones: The multitudinous functions
qualities and characteristics that distinguish itself from other of smartphones cause users to have a degree of dependence
similar products (Hie et al., 2017). Consumers compare and and reliance on it. A study by Kumar and Fernandez (2020)
contrast the features and characteristics of similar products revealed an insignificant relationship between dependency and
from variating models or brands. The studies of Hie et al. purchasing intention.
(2017) and Abas et al. (2016) indicated a significant positive
correlation between product features and smartphone H6: There is a significant relationship between dependency on
purchasing intention. smartphones and Generation Z’s smartphone purchase
intention.
H2: There is a significant relationship between product features
and Generation Z’s smartphone purchase intention. To determine if all six independent variables used in
the study are statistically significant, the researchers added
Price: Naeini et al. (2015) infer that consumers are willing to another hypothesis to support this.
pay a considerable amount of money for the quality of the
device, latest technology, and desired brands without H7: There is a significant relationship between brand, product
considering the amount. Despite a hefty price tag, Naeini et al. features, price, convenience, social influence, and smartphone
(2015) argue that price establishes the brand image, which is dependency and Generation Z’s smartphone purchase
why consumers are willing to pay higher costs. Likewise, the intention.
study noted that consumers perceive the brand as better quality
if the price is higher. Kumar and Fernandez's (2020) study 2.2. Research Design, Sample, and Sampling
showed a positive correlation between the price and purchase
intention. The research employed a quantitative approach,
specifically correlational research, to examine the determinant
H3: There is a significant relationship between price and nature of the relationship between variables. As such, this
Generation Z’s smartphone purchase intention. study will use statistical data to present the numeric
representations and descriptions of the factors influencing
Convenience: Convenience refers to simplifying and making Generation Z’s purchase intention toward smartphones.
a task easy to accomplish with little effort exerted.
Smartphones provide convenience to users through their The study selected the participants with the
portable yet multifunctional characteristics (Hie et al., 2017, following criteria: a) they must be individuals from the
p. 53). Based on the study by Kumar and Fernandez (2020), Generation Z age group, b) they are residents of the National
there is a moderate positive correlation between convenience Capital Region (NCR), c) they are Filipino citizens, and d)
and purchase intention. they own at least one smartphone. According to the Philippine
Statistics Authority (2020), the National Capital Region has a
H4: There is a significant relationship between convenience current population of 13,484,462 inhabitants. On the other
and Generation Z’s smartphone purchase intention. hand, based on the Philippine Statistics Authority’s Projected
Population by Age Group, the percentage of Generation Z out

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of the total Philippine population constitutes 28.06% in 2020. 3.1. Demographic Analysis
As a result, the estimated population of Generation Z in the
National Capital Region is 28.06 percent of 13,484,462 or a Table 01 gives an overview of the representation of
total of 3,784,270 Gen Z residents. Utilizing Slovin’s formula, the whole Filipino Generation Z population in the National
the calculated sample size appropriate for this study is 399.99 Capital Region. Most of the respondents are female, garnering
or 400. Ultimately, the study attained 400 willing participants 66.00% of the total respondents; the remaining 34.00%
who met the required minimum criteria. account for male respondents. The survey respondents aged
14-18 years old garnered 72.25%, almost two-thirds of the
Owing to logistical limitations ushered in by the total population. With the convenience sampling and the
COVID-19 pandemic, the research study employed a non- researchers’ educational background, there is a possibility that
probability sampling procedure, namely, a convenient their proximity to batchmates, classmates, and acquaintances
sampling technique, to sample subjects that fit the criteria and affected this result. Manila City ranks first of all the NCR cities
are readily accessible to participate given the context of an where the respondents are currently residing, garnering a
online distribution process. percentage of 32.50%. In contrast, those who reside in Quezon
City rank second, taking up 25.75% of the total respondents.
2.3. Data Collection Method Most of the respondents who own one smartphone unit amount
to 75.00% of the population. In contrast, 25.00% own more
The study gathered primary data through an than one. This supports that all the respondents own and use at
electronic survey form via the Google Forms platform. least one smartphone. Finally, almost half of the respondents,
Conveniently, the survey forms are connected to a Google at 47.25%, own a smartphone unit manufactured by Apple Inc.
Sheets file to store the collected data. The survey was divided Cumulatively, 29.50% used smartphones are produced by
into four parts: the introduction and study overview, informed Chinese brands, while the South Korean brand, Samsung
consent form, respondent’s demographic information, and Electronics, accounted for 22.50%.
standardized 5-point Likert scale questions derived from
previous literature concerning the respondent’s opinions on Table 1
the aforementioned variables of the study. Overall, the Analysis of the Respondents' Demographic Information
questionnaire consists of 39 questions, and 32 of the questions
were measured by a 5-point Likert scale. Items Frequency Percent
Gender
2.4. Data Analysis Method Female 264 66.00%
Male 136 34.00%
This research employed the statistical treatment of Age Group
descriptive analysis to present the profile and characteristics of 9 – 13 15 3.75%
the respondents. In addition, the Spearman rho assessment was 14 – 18 289 72.25%
used to examine if all factors are correlated and represent the 19 – 24 96 24.00%
direction and strength of inter-relationship. Sullivan and Location
Artino (2013) strongly suggested employing Spearman’s Manila City 130 32.50%
correlation analysis for ordinal data from Likert scale Quezon City 103 25.75%
questions. Likewise, the study utilized multiple regression Parañaque City 25 6.25%
analysis for hypothesis testing and to further examine the Others 142 35.50%
correlation between the explanatory (independent) variables Number of Phones Owned
and response (dependent) variables (Hayes, 2021). Lastly, the 1 300 75.00%
statistical analysis of the data was conducted using IBM’s 2 85 21.25%
Statistical Package for the Social Sciences (SPSS) v24. 3+ 15 3.75%
Most Used Smartphone Brand
3. RESULTS AND DISCUSSION Apple 189 47.25%
Samsung 90 22.50%

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Oppo 33 8.25% in this study, R2 = 0.265, F(23.559). Generally, a 0.3 < R2 <
Huawei 33 8.25% 0.5 is considered to be weak or low effect size. And, given
Others 55 13.75% that the value is lower than 0.3, it can be concluded that H7 is
N = 400 statistically insignificant or that there are other factors that
have to be considered which influence purchase intention. As
3.2. Correlation Analysis such, there are other extra independent variables that were
not considered in this study that may be significant in
Ratner (2009) defines correlation coefficient as the explaining the variation in smartphone purchase intention.
measure of the strength of the linear relationship between two
different variables. Spearman’s correlation coefficient was Based on the model, brand significantly and
utilized to achieve the researchers’ objectives of investigating positively influences purchase intention β = 0.147, t = 2.583,
the relationship between the six independent variables on the p < .01. A study by Abas et al. (2016) established that Gen Z
dependent variable. considers the brand to reflect having a better operating
system. As such, the brand differentiates itself making it
Table 2 easier for brand recognition. Product features is the most
Spearman’s rank-order Correlation Coefficient between the consistent and strongest factor β = 0.194, t = 3.751, p < .001.
Independent Variables and Smartphone Purchase Intention This is related to the findings of Hie et al. (2017) and Abas et
al. (2016), which state that customers consider the best
Purchase Intention Relationship features and services that are secure and simple to use. Price,
however, does not significantly affect purchase intention β =
Brand .356** Moderate
0.037, t = 0.719, p > .05. This is supported by the findings of
Product Features .378** Moderate
previous studies by Sthapit et al. (2018), Mohammed (2018),
Price .261** Weak
and Hie et al. (2017).
Convenience .219** Weak
Social Influence .244** Weak
Additionally, convenience significantly and
Dependency .342** Moderate
positively influences purchase intention β = 0.106, t = 2.034,
N = 400
p < .05. Kumar and Fernandez (2020) noted that convenience
Note.**. Correlation is significant at the 0.01 level (2-tailed). moderately affects purchase intention through its easy
accessibility. While social influence does not influence
Table 02 depicts the Spearman’s correlation
purchase intention β = 0.067, t = 1.426, p > .05. This
coefficient result between the six independent factors: brand,
contradicts all findings in previous studies, claiming that Gen
product features, price, convenience, social influence, and
Z essentially minds others' opinions; however, that is not the
smartphone dependence on smartphone purchase intention.
case. Lastly, smartphone dependency significantly and
Overall, based on the correlation coefficient interpretation
positively influences purchase intention β = 0.191, t = 3.754,
table by Dancey and Reidy (2007), all the independent
p < .001. This implies that smartphones play a vital role in
variables included in this study indicate a positive moderate-
terms of their usage and availability.
to-weak correlation with the smartphone purchase intention
of Gen Zs from NCR. From the observed data, the influence of price and
social influence is relatively low. This implies that Gen Z is
3.3. Multiple Regression Analysis unlikely to consider other external variables, and their
decision to purchase is ultimately dependent on themselves.
Table 03 presents the multiple regression analysis The findings suggest that consumers prioritize the reputation
results applied to determine purchase intention factors; and quality of the smartphone more than the price and
however, it did not satisfy all assumptions. Based on the opinions of their friends and family, likewise claiming that
findings, four out of the seven hypotheses were presented to having the same smartphone and personal recommendation
be significant, excluding price and social influence. It only does not essentially affect their preference. This result means
shows that 26.5% of the changes in the purchasing intention that Gen Z consumers' purchasing intentions will remain
variable are explained by the six independent variables used based on their beliefs regardless of price and social influence.

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Table 3 prestigious brand implies a far superior smartphone operating
Linear Regression Analysis Results of Dependent and system versus the competition. It reflects the smartphone
Independent Variables performance, which makes it more convenient to use, thus
leading to higher levels of usage.
Std.
Model B Error Beta t Sig. The inferences of this study are essential in
(Constant) 1.365 0.244 5.593 <.001 connotation to the current technology market. The study
Brand 0.112 0.043 0.147 2.583 0.01 observed that the continuous advancement of technology
Product might affect the preference of Gen Z with regard to their
0.188 0.05 0.194 3.751 <.001 choice of features and underlying benefits. This is because
Features
Price 0.03 0.042 0.037 0.719 0.473 they primarily prefer a smartphone that will bring new
Convenience 0.111 0.055 0.106 2.034 0.043 features and functions that are easily accessible regardless of
Social price and social influence.
0.047 0.033 0.067 1.426 0.155
Influence
Dependency 0.145 0.039 0.191 3.754 <.001 5. ACKNOWLEDGMENTS
Dependent Variable: Purchase Intention The researchers express our sincerest gratitude to
R²: 0.265 those who have made this research possible. First, we would
Adjusted R²: 0.253 like to thank the institute, the De La Salle University -
F Value: 23.559 Integrated School, Manila, for giving us the opportunity to
Std. Error of the Estimate: 0.48606 conduct this study. We are grateful to our research adviser, Mr.
Reynaldo A. Mones, for continuously providing us with
4. CONCLUSIONS guidance and support throughout the whole research process.
We extend our appreciation to Mrs. Windie L. Odoño, the
The researchers discovered evidence of a research panelists, and the speakers for imparting their
statistically significant influence on the intention to purchase wisdom, enabling us to produce a quality research paper. We
smartphones by Filipinos belonging to Gen Z. This study would also like to thank our friends, relatives, and classmates
specifically determined which of the factors — brand, who supported us in disseminating information about our
product features, price, convenience, social influence, and research in our search for participants. We should also not
smartphone dependency — could ultimately influence the forget the Heavenly Father, who provided us with spiritual
purchase intention of potential smartphone buyers. With the guidance. Most importantly, we would like to acknowledge the
use of a well-developed conceptual model based on an contributions and sacrifices we, the researchers, made in
extensive literature review, the analysis of 400 respondents completing this research. We are grateful for each other’s
was further scrutinized. Seven hypotheses were analyzed to unending support, understanding, and effort, which helped us
test the relationship between the independent and dependent stick together until the very end of this research process.
variables. The findings indicated that four hypotheses are
supported. 6. REFERENCES

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