4. Operating System (OS) Application Development
What is Smart Phone ?
Large Screen,
Touch Screen or D-Pad Internet, Email and Personal Full-size Keyboard
Organizer
5. Non-Smart Phones V.S. Smart Phones
Sales of Non-Smart Phones Sales of Smart Phone
$12.9B $12B
$12.8B
$8B
$11.5B $4.8B
2006 2007 2008 2006 2007 2008
Source: “Mobile Phone-US,” by Mintel and CEA Source: “Mobile Phone-US,” by Mintel and CEA
6. Competition
Top Mobile Phone Vendors in US Top Smart Phone Vendors in US
Apple Motorola
6%
Nokia 5% Samsung
10% Samsung 7%
26% Palm
RIM 10%
10%
RIM
53%
LG Motorola Apple
24% 25% 24%
Source: IDC Source: IDC
7. Competition
Operating System (OS)
Other-Palm/Linux
Google Android 3% Symbian OS
3% Nokia S60, Series 80, Series 90,
UIQ and MOAP(S)
Windows
Mobile
9%
RIM Blackberry
Symbian Samsung, HTC, Sony Ericsson
Apple iPhone
50%
14%
RIM Windows Mobile
Blackberry Blackberry Phones
21%
Source: Canalys Q2/2009
8. Apple’s iPhone
June 29, 2007 July 11, 2008 June 19, 2009
iPhone Original iPhone 3G iPhone 3GS
10. Research Objective
Problem Proposed Research
Solution Question
How to
enhance the To increase What factors
iPhone Sales influence
sales of students’ choice
iPhones in Student to purchase a
Market smart phone
from a vendor?
11. Research Objective
Research What factors
What factors Question influence
drive student student
What factors
customers to customers to
influence
buy a smart students’ choice change smart
phone? to purchase a phone
smart phone vendor?
from a vendor?
12. 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.
Using the technology will enhance his or her job performance
Dependent Variables
Perceived
Usefulness
Behavioral
External Attitude
Intention to Actual Use
Factors toward Use
Use
Perceived
Ease of Use
Demographic The user’s desirability of using the technology.
Factors…
A person believes that using the system will be free of effort
13. Variable Selection
External Attitude
factors toward Use
• Age
Perceived • Desire of New
• Ethnic Group
Usefulness Technical features
• Gender
• Concern of Design Behavioral
• Product Knowledge
• Concern of Hardware Intention to
• Early Adopter
Performance Use
• Way of Commute
• Satisfaction towards
• Brand of Loyalty
service provider
• Source of Info
Perceived • Concern of service
• Price Consciousness contract
Ease of Use Actual Use
• Appeal to Ads and
Promotion
14. Measurement Development
Literacy Self-
Truthfulness • Highly Literate awareness
• Not to assume high • Put in the context of
• Assume they don’t pay literacy on technology cell phone usage
full attention when they terms
are answering the • Differentiate respondents
questions who have knowledge in smart
University phones and those who do not
Students
Mental Ability Willingness to tell
• Mentally capable • Not a sensitive topic
• Frequent use products • Keep the survey and
• Organize the questions in clear questions short
sequence for the respondents to
flow with the logic • Careful with word choice
15. 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
16. Data Collection
Purpose: Pretest
Time: March 20 to March 27
Place: GSU and Mugar Library in Boston University
Total Survey Distributed: 110 copies
Valid Survey Collected: 107 copies
17. 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
18. Measurement Analysis
Multiple-item Measurements
Factor Analysis Constructs
Groupings
Early Adopter
Brand Loyalty
Section One
Price Consciousness
Appeal to Advertising and Promotion
Concern of Stylishness
Cell phone knowledge
Section Two
Satisfaction of Service Provider
Perceived of Usefulness
Attitude toward Operation Interface
Concern of Service Contract
Section Three
Attitude towards 3G network
Perceived Easiness of Use
19. Measurement Analysis
Multiple-item Measurements-Frequency Distribution
Construct Item Frequency Data
N=107,
I usually buy a newly released cell phone. Mode=2
Mean=2.71,
I would rather wait for others to try a new cell phone before trying it N=105,
Early Adopter Mode=2
myself. Mean=2.22,
N=107,
I am among the first to buy a newly released cell phone. Mode=2
Mean=2.61,
N=107,
I have a favorite brand of cell phones I buy over and over. Mode=3
Mean=2.8,
N=106,
Even when I change models of cell phone, I stick with the same brand. Mode=4
Mean=2.79,
Brand Loyalty
N=105,
I usually switch to a different brand when I buy a new cell phone.(r) Mode=4
Mean=3.5,
N=106,
I go to the same cell phone store each time I need to purchase a phone. Mode=4
Mean=2.78,
20. Measurement Analysis
Multiple-item Measurement-Frequency Distribution
Construct Item Frequency Data
I am aware that the price of cell phones will go down some N=106,
Mode=5
time after they are initially released. Mean=4.43,
N=107,
I usually buy a cell phone after the price goes down. Mode=4
Mean=3.78,
Price Consciousness
N=105,
I buy the lowest priced cell phones that will suit my needs. Mode=2
Mean=2.96,
When it comes to choosing a cell phone, price is an N=106,
Mode=4
important consideration for me. Mean=4.04,
N=105,
I usually watch/read ads about cell phones. Mode=2
Mean=2.59,
N=106,
I usually pay close attention to cell phone ads. Mode=2
Appeal to Ads and Mean=2.26,
Promotion I usually pay attention to the sales information about cell N=106,
Mode=2
phones Mean=2.62,
I would pay attention to the cell phone ads only when I N=107,
Mode=4
consider buying a cell phone Mean=3.76,
21. Measurement Analysis
Multiple-item Measurement-Correlation within Construct
rec: I would rather
I usually buy a I am among the first
wait for others to try a
Early Adopter newly released cell to buy a newly
new cell phone before
phone released cell phone
trying it myself
1 .695** -.089
I usually buy a newly released
cell phone .000 .367
.695** 1 .073
I am among the first to buy a
newly released cell phone .000 .462
rec: I would rather wait for -.089 .073 1
others to try a new cell phone
.367 .462
before trying it myself
Problems: 1. Recoded item. 2. Vague definition of “others”
22. Measurement Analysis
Multiple-item Measurement-Correlation within Construct
I go to the
Even when I same cell I usually switch
I have a favorite
change models of phone store to a different
brand of cell
Brand Loyalty cell phone, I stick each time I brand when I
phones I buy
with the same need to buy a new cell
over and over
brand purchase a phone
phone
1.4I have a favorite brand of 1 .733** -.026 .316**
cell phones I buy over and
over .000 .793 .001
1.5Even when I change .733** 1 -.056 .474**
models of cell phone, I
stick with the same brand .000 .575 .000
1.7I go to the same cell -.026 -.056 1 -.138
phone store each time I
need to purchase a phone .793 .575 .166
I usually switch to a .316** .474** -.138 1
different brand when I buy
a new cell phone .001 .000 .166
Problems: 1.Cell phone is not regular shopping item. 2. Testing two concepts in the same construct
23. Measurement Analysis
Multiple-item Measurement-Correlation within Construct
I am aware that When it comes
the price of cell I usually buy a I buy the lowest to choosing a
Price Consciousness phones will go cell phone after priced cell cell phone, price
down some time the price goes phones that will is an important
after they are down suit my needs consideration
initially released for me
I am aware that the price of 1 .446** .045 .165
cell phones will go down
some time after they are .000 .649 .094
initially released
I usually buy a cell phone .446** 1 .469** .566**
after the price goes down .000 .000 .000
I buy the lowest priced cell .045 .469** 1 .506**
phones that will suit my
.649 .000 .000
needs
When it comes to choosing a .165 .566** .506** 1
cell phone, price is an
important consideration for .094 .000 .000
me
Problem: People who are aware of the fact are not necessarily price conscious.
24. Measurement Analysis
Multiple-item Measurement-Correlation within Construct
I would pay
I usually pay attention to the
I usually I usually pay
attention to the cell phone ads
Appeal to Ads and watch/read close attention
sales information only when I
Promotions ads about cell to cell phone
about cell consider
phones ads
phones buying a cell
phone
I usually watch/read ads about 1 .763** .578** .200*
cell phones .000 .000 .043
I usually pay close attention to .763** 1 .616** .135
cell phone ads .000 .000 .173
I usually pay attention to the .578** .616** 1 .166
sales information about cell
phones .000 .000 .095
I would pay attention to the .200* .135 .166 1
cell phone ads only when I
consider buying a cell phone .043 .173 .095
Problem: “only when I consider buying a cell phone”
25. Measurement Analysis
Multiple-item Measurement-Correlation across Constructs
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 1 .675** .306** .056 -.110 -.276** -.369** -.294** .276** .385** .250*
released cell phone .000 .002 .585 .279 .006 .000 .003 .006 .000 .013
1.3I am among the first to .675** 1 .316** .113 -.171 -.410** -.470** -.499** .106 .316** .079
buy a newly released cell
phone .000 .001 .267 .090 .000 .000 .000 .298 .001 .438
1.4I have a favorite brand of .306** .316** 1 .736** .325** -.156 -.227* -.269** .075 .155 .172
cell phones I buy over and
over .002 .001 .000 .001 .124 .024 .007 .458 .125 .089
1.5Even when I change .056 .113 .736** 1 .479** .091 .000 -.070 -.035 .046 .103
models of cell phone, I stick
with the same brand .585 .267 .000 .000 .368 .992 .491 .733 .653 .311
Rec 1.6 I usually switch to a -.110 -.171 .325** .479** 1 -.064 .073 -.130 -.154 -.197 -.055
different brand when I buy a
new cell phone .279 .090 .001 .000 .529 .472 .200 .127 .051 .586
1.9I usually buy a cell -.276** -.410** -.156 .091 -.064 1 .455** .564** .085 -.041 .156
phone after the price goes
down .006 .000 .124 .368 .529 .000 .000 .401 .689 .123
1.10I buy the lowest priced -.369** -.470** -.227* .000 .073 .455** 1 .484** -.150 -.258** -.103
cell phones that will suit my
needs .000 .000 .024 .992 .472 .000 .000 .138 .010 .309
1.11When it comes to -.294** -.499** -.269** -.070 -.130 .564** .484** 1 .057 -.042 .049
choosing a cell phone, price
is an important .003 .000 .007 .491 .200 .000 .000 .578 .683 .629
consideration for me
1.12I usually watch/read .276** .106 .075 -.035 -.154 .085 -.150 .057 1 .767** .561**
ads about cell phones .006 .298 .458 .733 .127 .401 .138 .578 .000 .000
1.13I usually pay close .385** .316** .155 .046 -.197 -.041 -.258** -.042 .767** 1 .608**
attention to cell phone ads
.000 .001 .125 .653 .051 .689 .010 .683 .000 .000
1.14I usually pay attention .250* .079 .172 .103 -.055 .156 -.103 .049 .561** .608** 1
to the sales information
about cell phones .013 .438 .089 .311 .586 .123 .309 .629 .000 .000
26. 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
.015 .103 .925 .074
brand
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
.067 .816 -.153 -.158
consideration for me
27. Measurement Analysis
Multiple-item Measurement-Reliability
Cronbach's Item
Construct Items
Alpha deleted
I usually buy a newly released cell phone. N/A
Early Adopter .816
I am among the first to buy a newly released cell phone. N/A
I have a favorite brand of cell phones I buy over and over. .632
Even when I change models of cell phone, I stick with the
Brand Loyalty .761 .465
same brand.
I usually switch to a different brand when I buy a new cell
.845
phone.(r)
I usually buy a cell phone after the price goes down. .663
I buy the lowest priced cell phones that will suit my
Price Consciousness .751 .722
needs.
When it comes to choosing a cell phone, price is an
.626
important consideration for me.
I usually watch/read ads about cell phones. .757
Appeal to Advertisement I usually pay close attention to cell phone ads. .733
.845
and Promotion I usually pay attention to the sales information about cell
.861
phones
28. Measurement Analysis
Multiple-item Measurement
Construct Item Problematic Item
Concern of I prefer a phone with fashionable colors
Stylishness I prefer a phone which can change covers
I prefer a phone co-branded with some fashion labels
Cell phone When I encounter a new model of cell phone, I can figure out how to use it in short
knowledge 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 The reception of the service I use is always good
of Service The rate of the service I use is reasonable
Provider 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 Lower loading
solved with the help of the service provider within construct
Perceived of I find my cell phone is useful Lower loading
Usefulness 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
29. Measurement Analysis
Multiple-item Measurements
Construct Item Problematic Item
Attitude I am familiar with the operation interface of my cell phone
toward I like the design of the operation interface of my cell phone Close loading on two factors
Operation Sometimes I feel confused by the operation interface of my cell phone. Low correlation
Interface (r)
I can easily find the function I want by using the operation interface of
my cell phone
Concern of I will not change to a different mobile phone service until my service N=89
Service contract expires Close loading on two factors
Contract I would change to a new provider regardless of losing my deposit if I N=89
am not satisfied with the service. (r) Low correlation
I am worried about losing my deposit if I change to a new service N=89
provider Close loading on two factors
Attitude I am interested in using the 3G network service
towards It is exciting if I can use these services
3G These services caught my attention
network
These services have nothing to do with my needs (r) Low correlation
Perceived Learning to use my cell phone is easy for me
Easiness of It is easy for me to become skillful at using the cell phone
Use I find my cell phone easy to use
30. Measurement Revision
Construct Problematic Item Suggested Revision
I would rather wait for others to try a I usually use a new set of cell
Early Adopter new cell phone before trying it myself. phone after people I know
(r) use it.
I am more comfortable in
I go to the same cell phone store each
using the brand of cell phone
time I need to purchase a phone
I currently own
Brand Loyalty
If I were to buy a new cell
I usually switch to a different brand
phone, I will switch to a
when I buy a new cell phone. (r)
different brand. (r)
31. Measurement Revision
Construct Problematic Item Suggested Revision
I am aware that the price of cell phones I usually compare prices of
Price Consciousness will go down some time after they are different cell phones to find
initially released. the best value for my money.
I would pay attention to the cell phone I seldom pay attention to the
Appeal to Advertisement and
ads only when I consider buying a cell cell phone ads and
Promotion
phone promotion information. (r)
I prefer cell phone models
that provide me with a
Concern of Stylishness I prefer a phone with fashionable colors
variety of colors to choose
from.
32. Measurement Revision
Construct Problematic Item Suggested Revision
It usually takes me a long
I always have difficulties using a
time to get used to a new
new model of cell phone
set of cell phone.
Cell Phone Knowledge
I have better knowledge in
I usually help others solve their cell
solving cell phone
phone problems
problems than my friends.
Sometimes I feel confused by the I find the operation
operation interface of my cell interface of my cell phone
phone. (r) is complicated. (r)
Attitude toward Operational
Interface
The design of the operation
I like the design of the operation
interface of my cell phone
interface of my cell phone
is satisfactory.
33. Measurement Revision
Construct Problematic Item Suggested Solution
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
I will not change to a service contract would result in bad
Concern of Service
different mobile phone social security record. It is invalid to
Contract
service until my service measure respondent’s concerns about
contract expires the service contract. The researcher
decided to remove the entire construct
from the survey.
I am worried about losing
my deposit if I change to a
new service provider.
34. Measurement Analysis
Single-item Measurements
Construct Question Item
Usage of information My friends’ opinions are an important source of information to me
sources 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 Walking
often do you usually Biking
use the following By car
modes of Public transportation (T/Bus)
transportation?
Time on Commuting How much time do you spend on public transportation every day? (in minutes)_______
Habits on public Suppose you were to Do nothing
transportation commute by public Read a book/newspaper
transportation, how Listen to music(MP3 player)
likely would you do the Play with my cell phone (reading, play games, listen to music on the phone)
following?
Demand of Technical If you were to buy a Camera
Features new cell phone, how Picture messaging
important is it for you Internet browsing
to have the following Sending and receiving email
features? MP3 or multimedia player
GPS and mapping function
Install add-on application
Mobile games
35. Measurement Analysis
Single-item Measurements
Construct Question Item
I prefer a small-sized phone (smaller than half of the size of my palm)
Phone Size 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)
I prefer a flip phone (with cover on the keyboard that can flip)
Phone Shape I prefer a slide phone(with cover on the keyboard that can slide)
I prefer a bar phone(without cover on the keyboard) N=104
Demand of I prefer a phone with standard keyboard(same as most of the mobile phone
design of cell keyboards) N=105
phone Keyboard I prefer a phone with a full keyboard(only with number pads) N=105
I prefer a phone with virtual keyboard (keyboard on touch screen)
I prefer a phone with big screen size
I prefer a phone with a touch screen
Hardware I prefer a phone with large memory
I prefer a phone with large storage space
I prefer a phone with better screen resolution
36. Measurement Analysis
Single-item Measurements
Construct Question Item
An iPhone
If you were to buy A blackberry
Behavioral a new phone A Google phone
Intention of today, how likely
Use are you to choose A phone that uses Windows Mobile operation system
Other type of smartphone (please specify ________________) N=89
A non-smart phone
I will change a new cell phone when my service contract for mobile phone
How likely would expires
Reasons of you buy a new cell I will change a new cell phone when I lose or break a phone
changing a phone under the
cell phone following situation 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
37. Measurement Analysis
Single-item Measurements
Construct Item Scale
Actual Do you currently own a cell
-Yes -No
Usage 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__________)
Which of the following best -Nokia (Please specify the model, if don’t know, please leave it
describe your phone? 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
-Yes -No - I don’t know
smart phone?
38. Measurement Analysis
Single-item Measurements
Construct Item Scale
Which cell phone
-AT&T -T-Mobile -Verizon -Sprint
service provider do
-Other(please specify____)
N=102
you currently use?
Which type of mobile -Contract
Actual Usage phone service do you - Pre-paid N=103
use? -Other
Do you Currently use -Yes
3G network on your -No N=104
cell phone? -I don’t know
How old are you? Open-ended, ratio
What is your gender? -Male -Female
Which of the -Freshman -Sophomore -Junior -Senior
Demographic following describes -Master -PhD -Not a student
Question your academic level
-Hispanic or Latino -White (Not Hispanic or Latino)
What is your
-Black or African American (Not Hispanic or Latino)
race/ethnicity
-Native Hawaiian or other Pacific Islander (Not Hispanic or Latino)
39. Measurement Revision
Construct Item Suggested Solution
I prefer a bar phone(without cover on I prefer a cell phone without
the keyboard) cover on the keyboard
I prefer a phone with
Preference of design of phone I prefer a phone with standard
standard keyboards (with
keyboard(same as most of the mobile
only number pads, answer
phone keyboards)
and reject buttons)
I prefer a phone with a full
I prefer a phone with a full keyboard, on which the pads
keyboard(only with number pads) are organized according to
computer keyboards.
40. Measurement Revision
Suggested
Construct Item Problem
Solution
Other type of smart Uncertainty in
Behavioral Intention phone (please specify providing Delete this item
________________) examples
Enlarge font size
Which cell phone service
and keep question
provider do you currently
in bold to araise
use?
The layout of the awareness
Actual Usage items are easily
ignored
Enlarge font size
Which type of mobile and keep question
phone service do you use? in bold to arise
awareness
41. Measurement Revision
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
42. Use of Data and Future Development
• Differentiate smart phone users and non-smart phone users
• Reveal correlation between different brand users and their
behaviors and attitudes
Cellphone User Smartphone User Cellphone Ownership by Vendor
Missing
Don't know 1%
8%
Motorola Apple
10%
Yes 12%
31%
Blackberry
LG 16%
13%
Yes
99% No
60% Samsung
Nokia
26%
7%
43. 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.
45. Research Objective
Research What factors
What factors Question influence
drive student student
What factors
customers to customers to
influence
buy a smart students’ choice change smart
phone? to purchase a phone
smart phone vendor?
from a vendor?
46. Restrictions
• One Survey for Multiple Purposes
• Few questions on consumer behavior
• Lack measurements for future develop
• Few questions on iPhone
• Intention and actual use Future purchase
