students' choice on smartphones

Survey Design and Pretest

Student Customers’ Choice

on Smart Phone

Presenter : Delia Wu

What cell phone do you use?

Is it smart?

What is Smart Phone ?

Operating System (OS) Application Development

Large Screen,

Touch Screen or D-Pad Internet, Email and Personal

Organizer Full-size Keyboard

Smart Phones V.S. Non-Smart Phones

$4.8B

$8B

$12B

2006 2007 2008

Sales of Smart Phone

$12.8B $12.9B

$11.5B

2006 2007 2008

Sales of Non-Smart Phones

Source: “Mobile Phone-US,” by Mintel and CEA Source: “Mobile Phone-US,” by Mintel and CEA

Competition

Top Smart Phone Vendors in US Top Mobile Phone Vendors in US

Samsung

26%

Motorola

25%

LG

24%

RIM

10%

Nokia

10%

Apple

5%

RIM

53%

Apple

24%

Palm

10%

Samsung

7%

Motorola

6%

Source: IDC Source: IDC

Competition

Operating System (OS)

Symbian

50%

RIM

Blackberry

21%

Apple iPhone

14%

Windows

Mobile

9%

Google Android

3%

Other-Palm/Linux

3% Symbian OS

Nokia S60, Series 80, Series 90, UIQ and MOAP(S)

RIM Blackberry

Blackberry Phones

Windows Mobile

Samsung, HTC, Sony Ericsson

Source: Canalys Q2/2009

Apple’s iPhone

June 29, 2007

iPhone Original

July 11, 2008

iPhone 3G

June 19, 2009

iPhone 3GS

http://www.youtube.com/watch?v=FLxB4pHH_GY&feature=related

http://www.youtube.com/watch?v=szrsfeyLzyg

http://www.youtube.com/watch?v=NwNhI4m-4zs&feature=related

Apple’s iPhone

Research

Conducted

Research Objective

Problem

How to

enhance the

sales of

iPhones

Proposed

Solution

To increase

iPhone Sales

in Student

Market

Research

Question

What factors

influence

students’ choice

to purchase a

smart phone

from a vendor?

Research Objective

What factors

drive student

customers to

buy a smart

phone?

What factors

influence

student

customers to

change smart

phone

vendor?

Research

Question

What factors

influence

students’ choice

to purchase a

smart phone

from a vendor?

Theoretical Model Technology Adoption Model (TAM): a special case of Theory of Reasoned Action developed by Fred Davis and Richard

Bagozzi which models how users come to accept and use a technology.

External

Factors

Perceived

Usefulness

Perceived

Ease of Use

Attitude

toward Use

Behavioral

Intention to

Use

Actual Use

Demographic

Factors…

Using the technology will enhance his or her job performance

A person believes that using the system will be free of effort

The user’s desirability of using the technology.

Dependent Variables

Variable Selection

Perceived

Usefulness

Perceived

Ease of Use

Attitude

toward Use

• Desire of New

Technical features

• Concern of Design

• Concern of Hardware

Performance

• Satisfaction towards

service provider

• Concern of service

contract

External

factors • Age

• Ethnic Group

• Gender

• Product Knowledge

• Early Adopter

• Way of Commute

• Brand of Loyalty

• Source of Info

• Price Consciousness

• Appeal to Ads and

Promotion

Behavioral

Intention to

Use

Actual Use

Measurement Development

Literacy Self-

awareness Truthfulness

Mental Ability Willingness to tell

University

Students

• Highly Literate • Not to assume high

literacy on technology

terms

• Not a sensitive topic

• Assume they don’t pay

full attention when they

are answering the

questions

• Frequent use products

• Mentally capable

• Organize the questions in clear

sequence for the respondents to

flow with the logic

• Keep the survey and

questions short

• Careful with word choice

• Put in the context of

cell phone usage

• Differentiate respondents

who have knowledge in smart

phones and those who do not

Measurement Development

Multiple-item Measurement Single-item Measurement

Early Adopter Demand of New Technology Features

Brand Loyalty Demand of Cell Phone Design

Price Consciousness Way of Commute

Attitude toward Ads and Promotion Actual Ownership of Cell phone

Concern of Stylishness Brand of Cell Phone in Use

Product Knowledge Actual Usage of Smart phones

Attitude towards Operating Interface Actual use of 3G network

Satisfaction of Cell Phone Service Behavioral Intention to Use

Concern of Service Contract Reason of Changing a Cell Phone

Attitude toward 3G Network Age

Perceived of Usefulness Gender

Perceived Easiness of Use Ethnicity

Data Collection

Purpose: Pretest

Place: GSU and Mugar Library in Boston University

Time: March 20 to March 27

Total Survey Distributed: 110 copies

Valid Survey Collected: 107 copies

Measurement Analysis

Feedback from respondents

1. Questionnaire is too long

2. Too many questions

3. Font size too small

4. Row spacing too narrow

5. Many questions are similar

6. Confusion in Question


Multiple-item Measurements

Factor Analysis

Groupings

Constructs

Section One

Early Adopter

Brand Loyalty

Price Consciousness

Appeal to Advertising and Promotion

Section Two

Concern of Stylishness

Cell phone knowledge

Satisfaction of Service Provider

Perceived of Usefulness

Section Three

Attitude toward Operation Interface

Concern of Service Contract

Attitude towards 3G network

Perceived Easiness of Use


Construct Item Frequency Data

Early Adopter

I usually buy a newly released cell phone. N=107,

Mean=2.71, Mode=2

I would rather wait for others to try a new cell phone before trying it

myself. N=105,

Mean=2.22, Mode=2

I am among the first to buy a newly released cell phone. N=107,

Mean=2.61, Mode=2

Brand Loyalty

I have a favorite brand of cell phones I buy over and over. N=107,

Mean=2.8, Mode=3

Even when I change models of cell phone, I stick with the same brand. N=106,

Mean=2.79, Mode=4

I usually switch to a different brand when I buy a new cell phone.(r) N=105,

Mean=3.5, Mode=4

I go to the same cell phone store each time I need to purchase a phone. N=106,

Mean=2.78, Mode=4

Multiple-item Measurements-Frequency Distribution

Construct Item Frequency Data

Price Consciousness

I am aware that the price of cell phones will go down some

time after they are initially released.

N=106,

Mean=4.43, Mode=5

I usually buy a cell phone after the price goes down. N=107,

Mean=3.78, Mode=4

I buy the lowest priced cell phones that will suit my needs. N=105,

Mean=2.96, Mode=2

When it comes to choosing a cell phone, price is an

important consideration for me.

N=106,

Mean=4.04, Mode=4

Appeal to Ads and

Promotion

I usually watch/read ads about cell phones. N=105,

Mean=2.59, Mode=2

I usually pay close attention to cell phone ads. N=106,

Mean=2.26, Mode=2

I usually pay attention to the sales information about cell

phones

N=106,

Mean=2.62, Mode=2

I would pay attention to the cell phone ads only when I

consider buying a cell phone

N=107,

Mean=3.76, Mode=4

Measurement Analysis Multiple-item Measurement-Frequency Distribution

Measurement Analysis Multiple-item Measurement-Correlation within Construct

Early Adopter I usually buy a

newly released cell

phone

I am among the first

to buy a newly

released cell phone

rec: I would rather

wait for others to try a

new cell phone before

trying it myself

I usually buy a newly released

cell phone

1 .695** -.089

.000 .367

I am among the first to buy a

newly released cell phone

.695** 1 .073

.000 .462

rec: I would rather wait for

others to try a new cell phone

before trying it myself

-.089 .073 1

.367 .462

Problems: 1. Recoded item. 2. Vague definition of “others”

Brand Loyalty

I have a favorite

brand of cell

phones I buy

over and over

Even when I

change models of

cell phone, I stick

with the same

brand

I go to the

same cell

phone store

each time I

need to

purchase a

phone

I usually switch

to a different

brand when I

buy a new cell

phone

1.4I have a favorite brand of

cell phones I buy over and

over

1 .733** -.026 .316**

.000 .793 .001

1.5Even when I change

models of cell phone, I

stick with the same brand

.733** 1 -.056 .474**

.000 .575 .000

1.7I go to the same cell

phone store each time I

need to purchase a phone

-.026 -.056 1 -.138

.793 .575 .166

I usually switch to a

different brand when I buy

a new cell phone

.316** .474** -.138 1

.001 .000 .166


Problems: 1.Cell phone is not regular shopping item. 2. Testing two concepts in the same construct

Multiple-item Measurement-Correlation within Construct


Price Consciousness

I am aware that

the price of cell

phones will go

down some time

after they are

initially released

I usually buy a

cell phone after

the price goes

down

I buy the lowest

priced cell

phones that will

suit my needs

When it comes

to choosing a

cell phone, price

is an important

consideration

for me

I am aware that the price of

cell phones will go down

some time after they are

initially released

1 .446** .045 .165

.000 .649 .094

I usually buy a cell phone

after the price goes down

.446** 1 .469** .566**

.000 .000 .000

I buy the lowest priced cell

phones that will suit my

needs

.045 .469** 1 .506**

.649 .000 .000

When it comes to choosing a

cell phone, price is an

important consideration for

me

.165 .566** .506** 1

.094 .000 .000

Problem: People who are aware of the fact are not necessarily price conscious.



Appeal to Ads and

Promotions

I usually

watch/read

ads about cell

phones

I usually pay

close attention

to cell phone

ads

I usually pay

attention to the

sales information

about cell

phones

I would pay

attention to the

cell phone ads

only when I

consider

buying a cell

phone

I usually watch/read ads about

cell phones

1 .763** .578** .200*

.000 .000 .043

I usually pay close attention to

cell phone ads

.763** 1 .616** .135

.000 .000 .173

I usually pay attention to the

sales information about cell

phones

.578** .616** 1 .166

.000 .000 .095

I would pay attention to the

cell phone ads only when I

consider buying a cell phone

.200* .135 .166 1

.043 .173 .095

Problem: “only when I consider buying a cell phone”



1.1 1.3 1.4 1.5 Rec1.6 1.9 1.10 1.11 1.12 1.13 1.14

1.1I usually buy a newly

released cell phone 1 .675** .306** .056 -.110 -.276** -.369** -.294** .276** .385** .250*

.000 .002 .585 .279 .006 .000 .003 .006 .000 .013

1.3I am among the first to

buy a newly released cell

phone

.675** 1 .316** .113 -.171 -.410** -.470** -.499** .106 .316** .079

.000 .001 .267 .090 .000 .000 .000 .298 .001 .438

1.4I have a favorite brand of

cell phones I buy over and

over

.306** .316** 1 .736** .325** -.156 -.227* -.269** .075 .155 .172

.002 .001 .000 .001 .124 .024 .007 .458 .125 .089

1.5Even when I change

models of cell phone, I stick

with the same brand

.056 .113 .736** 1 .479** .091 .000 -.070 -.035 .046 .103

.585 .267 .000 .000 .368 .992 .491 .733 .653 .311

Rec 1.6 I usually switch to a

different brand when I buy a

new cell phone

-.110 -.171 .325** .479** 1 -.064 .073 -.130 -.154 -.197 -.055

.279 .090 .001 .000 .529 .472 .200 .127 .051 .586

1.9I usually buy a cell

phone after the price goes

down

-.276** -.410** -.156 .091 -.064 1 .455** .564** .085 -.041 .156

.006 .000 .124 .368 .529 .000 .000 .401 .689 .123

1.10I buy the lowest priced

cell phones that will suit my

needs

-.369** -.470** -.227* .000 .073 .455** 1 .484** -.150 -.258** -.103

.000 .000 .024 .992 .472 .000 .000 .138 .010 .309

1.11When it comes to

choosing a cell phone, price

is an important

consideration for me

-.294** -.499** -.269** -.070 -.130 .564** .484** 1 .057 -.042 .049

.003 .000 .007 .491 .200 .000 .000 .578 .683 .629

1.12I usually watch/read

ads about cell phones .276** .106 .075 -.035 -.154 .085 -.150 .057 1 .767** .561**

.006 .298 .458 .733 .127 .401 .138 .578 .000 .000

1.13I usually pay close

attention to cell phone ads .385** .316** .155 .046 -.197 -.041 -.258** -.042 .767** 1 .608**

.000 .001 .125 .653 .051 .689 .010 .683 .000 .000

1.14I usually pay attention

to the sales information

about cell phones

.250* .079 .172 .103 -.055 .156 -.103 .049 .561** .608** 1

.013 .438 .089 .311 .586 .123 .309 .629 .000 .000

Multiple-item Measurement-Correlation across Constructs

Measurement Analysis Multiple-item Measurement-Factor Analysis

Items Factor Loading Across

Construct

1.12I usually watch/read ads about cell phones .895 .003 -.066 .060

1.13I usually pay close attention to cell phone ads .875 -.094 -.009 .245

1.14I usually pay attention to the sales information about cell phones .819 .082 .122 .045

1.1I usually buy a newly released cell phone .256 -.255 .109 .769

1.3I am among the first to buy a newly released cell phone .067 -.434 .106 .798

1.4I have a favorite brand of cell phones I buy over and over .105 -.145 .840 .288

I usually switch to a different brand when I buy a new cell phone -.100 -.187 .679 -.493

1.5Even when I change models of cell phone, I stick with the same brand

.015 .103 .925 .074

1.9I usually buy a cell phone after the price goes down .109 .844 .033 -.098

1.10I buy the lowest priced cell phones that will suit my needs -.201 .707 -.004 -.259

1.11When it comes to choosing a cell phone, price is an important consideration for me

.067 .816 -.153 -.158

Measurement Analysis Multiple-item Measurement-Reliability

Construct Items Cronbach's

Alpha Item

deleted

Early Adopter I usually buy a newly released cell phone.

.816 N/A

I am among the first to buy a newly released cell phone. N/A

Brand Loyalty

I have a favorite brand of cell phones I buy over and over.

.761

.632

Even when I change models of cell phone, I stick with the

same brand. .465

I usually switch to a different brand when I buy a new cell

phone.(r) .845

Price Consciousness

I usually buy a cell phone after the price goes down.

.751

.663

I buy the lowest priced cell phones that will suit my

needs. .722

When it comes to choosing a cell phone, price is an

important consideration for me. .626

Appeal to Advertisement

and Promotion

I usually watch/read ads about cell phones.

.845

.757 I usually pay close attention to cell phone ads. .733 I usually pay attention to the sales information about cell

phones .861

Measurement Analysis Multiple-item Measurement

Construct Item Problematic Item

Concern of

Stylishness I prefer a phone with fashionable colors

I prefer a phone which can change covers

I prefer a phone co-branded with some fashion labels

Cell phone

knowledge When I encounter a new model of cell phone, I can figure out how to use it in short

time. When there is a problem with my cell phone, I always know how to solve it

I always have difficulties when using a new model of cell phone. (r) Low correlation

I usually help others solve their cell phone problems

Satisfaction

of Service

Provider

The reception of the service I use is always good

The rate of the service I use is reasonable

The service provider has provided rate plans that fits my needs

When I have trouble using the mobile phone service, I always get my problem

solved with the help of the service provider Lower loading

within construct

Perceived of

Usefulness I find my cell phone is useful Lower loading

within construct

Using my cell phone can improve my working performance

Using my cell phone can improve my social performance

Using my cell phone can increase my productivity

Using my cell phone can increase my efficiency

Measurement Analysis Multiple-item Measurements

Construct Item Problematic Item

Attitude

toward

Operation

Interface

I am familiar with the operation interface of my cell phone

I like the design of the operation interface of my cell phone Close loading on two factors

Sometimes I feel confused by the operation interface of my cell phone.

(r)

Low correlation

I can easily find the function I want by using the operation interface of

my cell phone

Concern of

Service

Contract

I will not change to a different mobile phone service until my service

contract expires

N=89

Close loading on two factors

I would change to a new provider regardless of losing my deposit if I

am not satisfied with the service. (r)

N=89

Low correlation

I am worried about losing my deposit if I change to a new service

provider

N=89

Close loading on two factors

Attitude

towards

3G

network

I am interested in using the 3G network service

It is exciting if I can use these services

These services caught my attention

These services have nothing to do with my needs (r) Low correlation

Perceived

Easiness of

Use

Learning to use my cell phone is easy for me

It is easy for me to become skillful at using the cell phone

I find my cell phone easy to use

Construct Problematic Item Suggested Revision

Early Adopter I would rather wait for others to try a

new cell phone before trying it myself.

(r)

I usually use a new set of cell

phone after people I know

use it.

Brand Loyalty

I go to the same cell phone store each

time I need to purchase a phone

I am more comfortable in

using the brand of cell phone

I currently own

I usually switch to a different brand

when I buy a new cell phone. (r)

If I were to buy a new cell

phone, I will switch to a

different brand. (r)

Measurement Revision


Price Consciousness

I am aware that the price of cell phones

will go down some time after they are

initially released.

I usually compare prices of

different cell phones to find

the best value for my money.

Appeal to Advertisement and

Promotion

I would pay attention to the cell phone

ads only when I consider buying a cell

phone

I seldom pay attention to the

cell phone ads and

promotion information. (r)

Concern of Stylishness I prefer a phone with fashionable colors

I prefer cell phone models

that provide me with a

variety of colors to choose

from.



Cell Phone Knowledge

I always have difficulties using a

new model of cell phone

It usually takes me a long

time to get used to a new

set of cell phone.

I usually help others solve their cell

phone problems

I have better knowledge in

solving cell phone

problems than my friends.

Attitude toward Operational

Interface

Sometimes I feel confused by the

operation interface of my cell

phone. (r)

I find the operation

interface of my cell phone

is complicated. (r)

I like the design of the operation


The design of the operation


is satisfactory.


Construct Problematic Item Suggested Solution

Concern of Service

Contract

I would change to a new

provider regardless of

losing my deposit if I am

not satisfied with the

service. (r) After considering the construct, the

researcher consider the service contract

will relate to legal issues and a breach of

service contract would result in bad

social security record. It is invalid to

measure respondent’s concerns about

the service contract. The researcher

decided to remove the entire construct

from the survey.

I will not change to a

different mobile phone

service until my service

contract expires

I am worried about losing

my deposit if I change to a

new service provider.


Measurement Analysis Single-item Measurements

Construct Question Item

Usage of information

sources

My friends’ opinions are an important source of information to me

My family’s opinions are an important source of information to me

The salesperson’s opinions are an important source of information to me

Third-party product reviews on newspaper/magazine/website are an important source

of information to me

Advertisements are an important source of information to me

Way of Commute On daily basis, how

often do you usually

use the following

modes of

transportation?

Walking

Biking

By car

Public transportation (T/Bus)

Time on Commuting How much time do you spend on public transportation every day? (in minutes)_______

Habits on public

transportation

Suppose you were to

commute by public

transportation, how

likely would you do the

following?

Do nothing

Read a book/newspaper

Listen to music(MP3 player)

Play with my cell phone (reading, play games, listen to music on the phone)

Demand of Technical

Features

If you were to buy a

new cell phone, how

important is it for you

to have the following

features?

Camera

Picture messaging

Internet browsing

Sending and receiving email

MP3 or multimedia player

GPS and mapping function

Install add-on application

Mobile games


Demand of

design of cell

phone

Phone Size

I prefer a small-sized phone (smaller than half of the size of my palm)

I prefer a medium-sized phone(smaller than the size of my palm)

I prefer large-sized phone (as big as the size of my palm)

Phone Shape

I prefer a flip phone (with cover on the keyboard that can flip)

I prefer a slide phone(with cover on the keyboard that can slide)

I prefer a bar phone(without cover on the keyboard)

Keyboard

I prefer a phone with standard keyboard(same as most of the mobile phone

keyboards) I prefer a phone with a full keyboard(only with number pads)

I prefer a phone with virtual keyboard (keyboard on touch screen)

Hardware

I prefer a phone with big screen size I prefer a phone with a touch screen

I prefer a phone with large memory I prefer a phone with large storage space I prefer a phone with better screen resolution


N=104

N=105

N=105



Behavioral

Intention of

Use

If you were to buy

a new phone

today, how likely

are you to choose

An iPhone

A blackberry

A Google phone

A phone that uses Windows Mobile operation system

Other type of smartphone (please specify ________________)

A non-smart phone

Reasons of

changing a

cell phone

How likely would

you buy a new cell

phone under the

following situation

I will change a new cell phone when my service contract for mobile phone

expires

I will change a new cell phone when I lose or break a phone

I will change a new cell phone when I want a more stylish phone

I will change a new cell phone when I want new features and services for my

phone

N=89


Construct Item Scale

Actual

Usage

Do you currently own a cell

phone? -Yes -No

Which of the following best

describe your phone?

-Apple (iPhone)

-Google Phone -RIM (Blackberry)

-A phone that uses Windows Mobile operation system

(Please specify the brand and model, if don’t know, please leave it

blank__________)

-Nokia (Please specify the model, if don’t know, please leave it

blank________)

-Samsung (Please specify the model, if don’t know, please leave it

blank________)

-Other (please specify the brand and model of your phone)

_______________

-I don’t know the brand or model of my phone

Is your cell phone a

smart phone?

-Yes -No - I don’t know

Construct Item Scale

Actual Usage

Which cell phone

service provider do

you currently use?

-AT&T -T-Mobile -Verizon -Sprint

-Other(please specify____)

Which type of mobile

phone service do you

use?

-Contract

- Pre-paid

-Other

Do you Currently use

3G network on your

cell phone?

-Yes

-No

-I don’t know

Demographic

Question

How old are you? Open-ended, ratio

What is your gender? -Male -Female

Which of the

following describes

your academic level

-Freshman -Sophomore -Junior -Senior

-Master -PhD -Not a student

What is your

race/ethnicity

-Hispanic or Latino -White (Not Hispanic or Latino)

-Black or African American (Not Hispanic or Latino)

-Native Hawaiian or other Pacific Islander (Not Hispanic or Latino)


N=102

N=103

N=104

Construct Item Suggested Solution

Preference of design of phone

I prefer a bar phone(without cover on

the keyboard)

I prefer a cell phone without

cover on the keyboard

I prefer a phone with standard

keyboard(same as most of the mobile

phone keyboards)

I prefer a phone with

standard keyboards (with

only number pads, answer

and reject buttons)

I prefer a phone with a full

keyboard(only with number pads)

I prefer a phone with a full

keyboard, on which the pads

are organized according to

computer keyboards.


Construct Item Problem Suggested

Solution

Behavioral Intention

Other type of smart

phone (please specify

________________)

Uncertainty in

providing

examples

Delete this item

Actual Usage

Which cell phone service

provider do you currently

use? The layout of the

items are easily

ignored

Enlarge font size

and keep question

in bold to araise

awareness

Which type of mobile

phone service do you use?

Enlarge font size

and keep question

in bold to arise

awareness



Other Necessary Revision

• Enlarge the font size and widen row spacing

• Mix the items of multi item measurements

• Specify the objective of the survey in the introduction section

• Change measurement scales for certain questions

Use of Data and Future Development

Yes 99%

Cellphone User

Yes 31%

No 60%

Don't know 8%

Missing 1%

Smartphone User

Apple 12%

Blackberry 16%

Nokia 7%

Samsung 26%

LG 13%

Motorola 10%

Cellphone Ownership by Vendor

• Differentiate smart phone users and non-smart phone users

• Reveal correlation between different brand users and their

behaviors and attitudes

Use of Data and Future Development

• Test Hypothesis

H1: Consumers tend to buy phones with familiar operating system/interface. H2: Consumers who have more product knowledge are more likely to choose

mobile phones with unfamiliar operation system/interface.

H3: Whether a phone can support third-party add-on application is important for

smart phone users.

• Target Potential Customer

Sample within existing database to pinpoint consumer behavior.

Looking back Now Is it solving the problem?

Research Objective

Research

Question

What factors

influence

students’ choice

to purchase a

smart phone

from a vendor?

What factors

influence

student

customers to

change smart

phone

vendor?

What factors

drive student

customers to

buy a smart

phone?

Restrictions

• One Survey for Multiple Purposes

• Few questions on consumer behavior

• Lack measurements for future develop

• Intention and actual use Future purchase

• Few questions on iPhone

Thank You

students' choice on smartphones

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