A Research Proposal

On
Factors Influencing Purchasing Intention of Smartphone among
University Students
Course Name: Business Research
Course Code: MBA-511
Fall-2023

Submitted to:

Dr. MD. Zakir Hossain Bhuiyan

Adjunct Faculty
Department of Business Administration
East West University

Submitted by:
Anik Saha
ID:2022-2-95-037

Date of Submission: 02-12-2023

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Abstract
Mobile communication has changed the way people connect when conducting business, whether
locally or abroad. As a result of changing customer wants and tastes, mobile communication
technology, such as wireless internet, mobile phones, and Global Positioning System (GPS), is
continually expanding and improving. As a result, this paper investigates the factors influencing
smartphone purchasing intentions among university students. The results demonstrate that three
variables, namely product characteristics, brand name, and social influence, have a substantial
link with purchasing intention, except one element, product sacrifice, which has no significant
relationship with purchasing intention.

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Contents
1. Introduction.........................................................................................................................................4
1.1 Problem Statement......................................................................................................................4
2. Research Objectives............................................................................................................................4
2.1 Research Questions.....................................................................................................................5
2.2 Hypotheses for Research.............................................................................................................5
3. Literature Review................................................................................................................................5
3.1 Purchase Intention.......................................................................................................................5
3.2 Features of the Product...............................................................................................................6
3.3 Brand Name.................................................................................................................................6
3.4 Social Influence............................................................................................................................7
3.5 Product Sacrifice..........................................................................................................................7
3.6 Theoretical Framework................................................................................................................8
4. Research Gap.......................................................................................................................................9
5. Research Methodology........................................................................................................................9
6. Time Frame........................................................................................................................................10
7. Cost Budget.......................................................................................................................................10
8. Limitations of the Study.....................................................................................................................10
9. Conclusion.........................................................................................................................................11

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1. Introduction

A mobile communication device is primarily made to transmit traditional voice signals between
two people, send text messages, and perform other basic tasks. However, due to the evolving
needs of cell phone users, cell phones have undergone multiple changes that have resulted in a
significant increase in their functionality over time. According to research by Strategy Analytics,
there are 1 billion cell phones in use worldwide, or 1 in 7 people. In Bangladesh, however, the
penetration rate is 1 in 4 people, with the biggest percentage of users being between the ages of
20 and 24 (17.3%). Customers now see smartphones as multipurpose devices that can be used for
gaming, socializing, and downloading programs in addition to being phones for making and
receiving calls. This has resulted in a significant change in consumer behavior patterns.
According to a 2014 Ericsson survey, smartphone use is expected to soar over the next several
years, with subscriptions expected to climb by nearly five times over the next ten to fifteen years .

1.1 Problem Statement

The use of smartphones is altering people's behavior, particularly that of young adults. There is a
dearth of knowledge regarding consumer behavior and preferences around the use of
smartphones, particularly among young individuals. Ericsson Consumer Lab (2013) found that
57 percent of college students use smartphones, 60 percent of them feel addicted to them, 75
percent of them sleep with their phones beside them, 88 percent of them text in class, 97 percent
of them use social media, and 40 percent use their phones to study for exams. Furthermore, the
mobile phone business has consistently demonstrated significant and abrupt developments in the
telecommunications market. Periodically, new smartphone models are introduced to the market
to obtain a competitive edge.The market's evolution for smartphones has had an impact on
consumers, particularly the younger generation, in terms of the decisions and motivations behind
smartphone purchases.

2. Research Objectives

The main objective of this research is to determine the significant influence of product features,
brand name, social influence, and product sacrifice on the demand for smartphones among
students, particularly among university students.

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 2.1 Research Questions

Do social influence, brand name, product sacrifice, and product features have a substantial
impact on consumers' intentions to purchase smartphones?

2.2 Hypotheses for Research

H1: Product features and smartphone purchase intention are significantly correlated.
H2: Brand name and the intention to buy a smartphone are significantly correlated.
H3: Social influence and smartphone purchase intention are significantly correlated.
H4: Product sacrifice and smartphone purchase intention are significantly correlated.

3. Literature Review
Hutchison Bangladesh Telecom Limited (HBTL) launched Bangladesh's first cellular network in
1993. Using AMPS mobile technology, Hutchison Bangladesh Telecom Limited (HBTL) began
offering mobile phone service in Dhaka city. Based on data from the Bangladesh Mobile Phone
Businessmen Association (BMBA), 12–13 firms have spent over Tk5,000 crore in the production
of mobile phones, generating employment opportunities for over 1 lakh people. These enterprises
have an annual production capacity of above 4 crore units. The global population of mobile
phone users climbed from 12.4 million in 1990 to over 7 billion in 2021. By year's end, the
figure is predicted to reach 7.3 billion. There are more than 16 crore mobile phone connections in
Bangladesh. In just five years, the production of mobile phones in Bangladesh expanded to
become a significant business; before then, the market was dependent on imports. In 2017, the
nation's largest electronics company, Walton, was the first to start manufacturing mobile devices
there. Following their investment of over Tk 1,000 crore to establish their factories, the
government began providing a range of benefits, such as tax holidays and exemptions from
VAT. As of now, Walton alone is capable of producing around 70 lakh phones annually, of
which 12 lakh are smartphones.

3.1 Purchase Intention

Purchase intention is the conscious decision to make a specific purchase, with the actual act of
carrying it out contingent upon one's capacity to do so. As per Blackwell et al. (2001), the

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thoughts that customers have indicate their intent to buy. Researchers who have similar findings
propose that consumers should identify a product, look for information, assess it, buy it, and give
feedback. Before making a purchase, consumers investigate products to make sure they get what
they want and need, especially with the variety of smartphone brands out there. Consumers'
purchase behavior is impacted by a variety of elements, including brand name, price, quality,
recreation, innovation awareness, and impulsiveness, as they have diverse interests and
preferences. Investigating the elements influencing consumers' decisions to buy smartphones is
essential. This study intends to explore the relationship between smartphone consumers'
purchasing intentions and characteristics such as product features, brand name, social influence,
and product sacrifice.

3.2 Features of the Product

Smartphones now come with a profusion of innovative features that cater to a wide range of
preferences and demands. Wireless connectivity, built-in web browsers, application installation,
full programmability, file management systems, multimedia capabilities, high-resolution screens,
and enormous storage, as well as location and movement sensors, are examples of these features.
A previous study has highlighted five design features in mobile phones that consumers value:
camera quality, color screen, voice-activated dialing, internet surfing capability, and wireless
connectivity. According to recent research, college students, in particular, choose cell phones
based on their physical look, size, and menu organization. Product features are the characteristics
of a product that cater to consumer preferences throughout purchase, use, and application. Lay-
Yee et al. (2013) differentiate between hardware and software, with hardware referring to the
smartphone's body, size, weight, color, and design. Software, on the other hand, consists of
computer programs, methods, documentation, and elements such as the operating platform,
storage, and applications. Software includes operating systems such as iOS, Android, Windows,
RIM Blackberry, Symbian, Bada, and Maemo. In essence, both hardware and software are
necessary product features.

3.3 Brand Name

Businesses will always look for methods to set themselves apart from the competition,
particularly in the ever-evolving smartphone market. To satisfy consumer demand, businesses

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must identify innovative technologies that are not now on the market. A brand name can serve as
an exclusive identification for the company. A brand name can be a word, name, symbol, or
design that sets a company apart from its rivals. Cornelis (2010) states that the majority of
businesses place a strong emphasis on their brand name since it can be a useful asset to their
goods and services. This could provide the company with a competitive edge. Consumers these
days favor smartphones with distinctive features such as a clear graphical user interface for
touchscreen interactions and the ability to present information rapidly and with minimal
frustration.

3.4 Social Influence

Social influence is the process through which another person, whether consciously or
unconsciously, alters one's feelings, attitude, thoughts, or behavior. It results from their
interactions with peers and parents, among other individuals who are acquainted. Parents,
friends, and the media would all have an impact on consumers' decisions to buy smartphones.
These days, individuals can use social media platforms like Facebook, Twitter, Instagram, and
others to grow their online social networks. In addition to finding information about
smartphones, they can also obtain product reviews and comments from other users who have
either used or are presently using the smartphones. Kotler and Armstrong(2007) assert that the
people in a consumer's immediate vicinity have an impact on their behavior. They would look
for recommendations, counsel, and firsthand accounts from others who had previously bought
and used smartphones. They may tend to acquire it from a variety of people, particularly from
those who are close to them, such as spouses, friends, peers, and relatives.

3.5 Product Sacrifice

Customers may uncover details about a product that, given their interests and preferences, they
wish to buy. To buy goods that meet their requirements and desires while staying within their
budget, buyers will also compare various product categories. In addition, they compare the
products based on their pricing, quality, and advantages. To obtain their desired products, they
must also make sacrifices to buy other items. Product sacrifice refers to the act of consumers
giving up something useful or significant to obtain cellphones. Customers may make sacrifices to
purchase other items at both financial and non-financial costs. Financial costs might include the
purchase price, acquisition costs, shipping, installation, order processing, maintenance risk of

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malfunction or subpar performance, and repairs. Non-monetary expenses, on the other hand, can
include the cost of time, search expenses, and psychological costs associated with deciding
whether to buy or repurchase a smartphone. As such, before deciding to buy a smartphone, users
will forfeit non-financial as well as financial expenses including time, effort, and energy spent
researching various smartphone brands.

3.6 Theoretical Framework

The theoretical framework serves as the basis for a rationally constructed, explained, and
elaborated network of relationships between the variables that have been identified through
procedures like literature reviews, interviews, and observations and are thought to be pertinent to
the problem situation.

Independent Variable Dependent Variable

Product H1
Features
H2
Brand Name
Purchasing
H3 Intension
Social
Influence

Product H4
Sacrifice

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4. Research Gap

While many studies have been conducted to investigate the factors influencing smartphone
purchasing intentions among various consumer groups, there is a significant study vacuum in
understanding the specific dynamics and impacts affecting university students. Existing literature
focuses on larger demographics, and there is a paucity of in-depth research into the unique
aspects influencing smartphone choices and purchasing decisions among university students.
Given students' unique lifestyles, financial restraints, and technological aspirations, there is a
need for focused research that looks into the intricate characteristics of this specific market
group. Addressing this study gap could provide vital insights into the elements that influence
university students' purchasing decisions for smartphones. It may entail investigating the role of
educational needs, social effects within the university setting, the impact of budget restrictions,
and the significance of specific characteristics adapted to students' academic and social lives.
Filling this study gap will allow scholars and marketers to get a more comprehensive
understanding of the factors influencing smartphone purchasing intentions among university
students, resulting in more successful marketing tactics and product development in this market
segment.

5. Research Methodology

Both primary and secondary data are collected for this study using different methods. The
primary data source for this study was a survey questionnaire; secondary data sources included
journal papers, the internet, textbooks, media outlets, electronic library databases, and journal
articles. 250 sets of questionnaires were given out to students at East West University in Dhaka
for this study. The group of components or items that have the data the researcher is looking for
is known as the target population. To make generalizations about the population, this study uses
East West University students as its primary population.

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6. Time Frame

Interviewers are chosen 1 week

Interviewers' training 1 week

Questionnaire design 15 days

Interview procedure 1 month

Data analysis 1 month

Final report writing 1 month

Total Time: 4 months

7. Cost Budget

Sl. Number Particulars Cost

1. Research Design and Planning 1800
2. Data Collection 2500
3. Data Analysis 3000
4. Research Personnel 5500
5. Travel and Accommodation 2100
6. Miscellaneous 1800
7. Technology and Equipment 3500
8. Presentation and Dissemination 2500
Total 22,700

8. Limitations of the Study

Research is a difficult task. As a result, the current study has several limitations. The study area
and sample size are both very tiny. As a result, it may not accurately portray the truth. In this
regard, much research is required for this goal. Due to a lack of funds, a financial crisis, and an
insufficient labour force, the researchers were forced to limit the sample size and scope of the
study. In several circumstances, respondents were not truthful in their responses. In a time of

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scarcity, it was impossible to locate necessary materials. Our research area and sample size are
both minimal.

9. Conclusion

The goal of this study was to look at the factors that influence smartphone purchasing intentions
among university students. This study specifically looked at the interaction between smartphone
product characteristics, brand name, social influence, product sacrifice, and purchase intention.
Data was collected from 250 East West University students. To evaluate the relationship between
the independent variables, four hypotheses were presented: product features, brand name, social
influence, product sacrifice, and smartphone purchase intention. Three hypotheses were found to
be supported by the findings.

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