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Game of the names: Branding in Smartphone Industry

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Buyer behavior research on smartphone preference and purchase. Use of methodologies like Conjoint analysis.

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Game of the names: Branding in Smartphone Industry

  1. 1. PRATHAMESH MUZUMDAR THE UNIVERSITY OF TEXAS-ARLINGTON
  2. 2. Introduction  Game of the Names  Brand name/ Brand title.  Preferences.  Purchase intention.  Purchase decision.  Subject- Smartphones  Multiple brands.  Multiple products.  Consistent development in technology.  Affordable.  Generate interest in various age groups.  Approach  Theoretical approach- Literature review.  Analytical approach.
  3. 3. Literature Review Internal Information External Information Brand Familiarity Purchase Intention Brand Promise Recall Usage Possession Word of Mouth Blackwell, Miniard, & Engel, 2001 Alba & Hutchinson, 1987 Kim & Lennon, 2000 Sen & Johnson, 1997 Kent & Allen, 1994 Moorthy, Ratchford, & Talukdar, 1997 Yes Affect Brand Name
  4. 4. Literature Review Research Objective Recall Purchase Intention Brand A Kent & Allen, 1994 Brand Name Brand B Brand C
  5. 5. Hypothesis  Hypothesis 1 Brand name influences the consumer preference when selecting a brand. Selection of a brand occurs when brands are comparable on different attributes.  Preferences- 2 parts  Part 1- Features or technical specifications.  Part 2- Particular product of a particular brand.  Hypothesis 2 Brand name influences the purchase intentions of a consumer particularly when selecting an smartphone, irrespective of the features provided by the particular model.  Does the likelihood of purchase changes when a particular product is tagged with certain brand name.  Is brand name more important than features.  Hypothesis 3 Particular set of dimensions compare smartphones rather than each available technical specification (feature) of the smartphone.  Most of the smartphones are promoted on multiple technical aspects.  Does all the aspects matter.
  6. 6. Data Collection  Survey Questionnaire  43 Questions  6 Sections  Groups  Focus group- Attribute determination.  Experimental group- 2 sections  Control group- 3 sections  Method  Online Survey- Amazon Mechanical Turk.  Data  192 responses out of 200.  157 responses were used for analysis.
  7. 7. Survey Statistics  Countries India vs. Others Others India- 115, Others- 43 USA- 28, Europe- 8, Asia- 3 South America- 2
  8. 8. Methodology Focus Group Experimental Group Control Group 1. Popular Attributes. 2. Popular Brands. 1. Conjoint Analysis. 2. Paired samples t- Test. 1. Positioning Map. 2. Paired sample t- Test. 3. Multidimensional scaling.
  9. 9. Focus Group  30 responses Specifications/ Attributes/ Features 1. Dimensions- Height/ Weight etc. 2. Display & user interface. 3. Keys & input method. 4. Connectivity. 5. WLAN features. 6. Data Networks. 7. Operating frequency. 8. Memory. 9. Power management. 10. Processor. 11. Security. 12. Browsing & internet. 13. GPS & Navigation. 14. Main Camera. Selected specifications 1. Operating system 2. Memory 3. Display 4. Camera 5. Battery Experimental Group Design Conjoint Analysis Reduced no of profiles. Control Group Design Multidimensional scaling Positioning Map Reduced no of dimensions. Selected Products 1. Apple iPhone 5 2. Samsung GS 3 3. Nokia Lumia 920 4. HTC 8X
  10. 10. Experimental Group Design  Section- Brand names are not exposed.  Section 1  5 questions. Paired sample t –Test.  Respondents rate- 5 attributes/ features (Pre selected). 1. Brand names not included. 2. Ranking of attributes/ features depend on ranking of other features. Feature evaluation- The questions in this section deal with different features of smart phones. There are 5 features displayed which are to be ranked from 1 to 5. 4. Rank each of these smart phone features from 1 to 5 as per there importance, 1- Most Important 5- Least important? Feature- Operating System (Ex- Apple- iOS, HTC- Windows etc). 5. Rank each of these smart phone features from 1 to 5 as per there importance, 1- Most Important 5- Least important? Feature- Memory (Ex- 8GB, 16GB etc). 6. Rank each of these smart phone features from 1 to 5 as per there importance, 1- Most Important 5- Least important? Feature- Display (Ex- 4 inch, 4.3 inch, 5 inch etc). 7. Rank each of these smart phone features from 1 to 5 as per there importance, 1- Most Important 5- Least important? Feature- Camera (Ex- 8 mega pixel, 8.5 mega pixel etc). 8. Rank each of these smart phone features from 1 to 5 as per there importance, 1- Most Important 5- Least important? Feature- Battery (Ex- talk time, standby time, internet use time etc).
  11. 11. Experimental Group Design  Section 2  16 profiles.  4 hidden profile.- (HTC 8X, Samsung GS 3, Nokia Lumia 920, Apple iPhone 5) Attributes /Existing Product Profiles Bundle 9 Bundle 10 Bundle 11 Bundle 12 Bundle 13 Bundle 14 Bundle 15 Bundle 16 Operating System iOS 6 Android 4.0 Windows Android 4.0 Android 4.0 iOS 6 Android 4.0 Windows Memory 64 16 32 32 32 32 16 64 Display 4.8 4.8 4.5 4.8 4.3 4.3 4.3 4.3 Camera 8.7 8 8.7 8 8.7 8 8.7 8 Battery 1800 2100 2000 1440 1800 2100 2000 1440 Attributes / Existing Product Profiles Bundle 1 Bundle 2 Bundle 3 Bundle 4 Bundle 5 Bundle 6 Bundle 7 Bundle 8 Operating System Windows Android 4.0 iOS 6 Android 4.0 Android 4.0 Windows Android 4.0 iOS 6 Memory 16 64 32 32 32 32 64 16 Display 4.3 4.5 4.5 4.5 4 4 4 4 Camera 8 8.7 8 8.7 8 8.7 8 8.7 Battery 1800 2100 2000 1440 1800 2100 2000 1440 HTC 8X Apple iPhone 5Nokia Lumia 920Samsung GS 3
  12. 12. Control Group Design  Section- Brand names are included.  Section 1  20 questions.  Positioning Map. Please rate different features for a particular smart phone model. 13. Apple iPhone 5- Features- Operating System- iOS 6. (1= Very Unsatisfied, 5= Very Satisfied) 14. Apple iPhone 5- Features- Memory- 16 GB, 32 GB, 64 GB. (1= Very Unsatisfied, 5= Very Satisfied) 16. Apple iPhone 5- Features- Display- 4 inch. (1= Very Unsatisfied, 5= Very Satisfied) 17. Apple iPhone 5- Features- Camera- 8 mega pixel. (1= Very Unsatisfied, 5= Very Satisfied) 18. Apple iPhone 5- Features- Battery- 1440 mAh, Talk time- 6 hrs . (1= Very Unsatisfied, 5= Very Satisfied) 5 Point Likert scale. 5 questions for each brand.
  13. 13. Control Group Design  Section 2  4 questions.  Paired sample t- Test. 5 Point Likert scale. 4 questions- Likelihood of purchase. Please rate the likelihood of buying a smart phone considering all the features given above. 34. Apple iPhone 5. (1= Very Unlikely, 5= Very Likely) 35. Samsung Galaxy S3. (1= Very Unlikely, 5= Very Likely) 36. HTC 8X. (1= Very Unlikely, 5= Very Likely) 37. Nokia Lumia 920. (1= Very Unlikely, 5= Very Likely)
  14. 14. Control Group Design  Section 3  6 questions.  Multi dimensional scaling- Euclidean distance model. 5 Point Likert scale. 6 combination + Pseudo brand. Please compare and contrast each of the following pair. 38. Apple iPhone 5 and Nokia Lumia 920. (1= Very similar, 5= Very different) 39. Apple iPhone 5 and Samsung Galaxy S3. (1= Very similar, 5= Very different) 40. Apple iPhone 5 and HTC 8X. (1= Very similar, 5= Very different) 41. Samsung Galaxy S3 and Nokia Lumia 920. (1= Very similar, 5= Very different) 42. Samsung Galaxy S3 and HTC 8X. (1= Very similar, 5= Very different) 43. HTC 8X and Nokia Lumia 920. (1= Very similar, 5= Very different)
  15. 15. Hypothesis 1 Brand name influences the consumer preference when selecting a brand. Selection of a brand occurs when brands are comparable on different attributes. Experimental Group Conjoint Analysis 1. Factor importance- Identify attribute. 2. Market share simulations- Identify preferred smartphone. Paired sample t- Test 1. Attribute ranking. Control Group Positioning Map 1. Change in preferences- Attribute. 2. Change in preference- Smartphone. Market share. Brand Name Smartphone/ Profile # Features/ Attribute
  16. 16. Hypothesis 1  Control Group Results 2. 3. Smartphone Rankings- Market share 1. Samsung GS 3- 40.94% Apple iPhone 5- 40.94% 2. Nokia Lumia 920- 11.41% 3. HTC 8X- 6.71% Attribute- 1. Operating system Apple iPhone 5- iOS 6 Samsung GS 3- Android 2. Memory Apple iPhone 5- 16, 32, 64. 3. Display Samsung GS 3- 4.8 inch. 4. Battery Samsung GS 3- 2100 mAH. 5. Camera Samsung GS 3- 8 m.p
  17. 17. Hypothesis 1  Experimental Group  Paired sample t- Test.  Conjoint Analysis Preferred smartphone. 1. HTC 8X. 2. Apple iPhone 5. Product Profiles Profile 1 (HTC 8X) Profile 8 (Apple iPhone 5) Profile 10 (Samsung GS 3) Profile 11 (Nokia Lumia 920) Predicted market shares 12.18 (29.84) 10.91 (26.72) 9.56 (23.42) 8.27 (20.26) Market Share Simulations. Market share predictions for different scenarios, using the share of preference Rule. Attribute Rankings. 1. Operating system. 2. Display. 3. Battery. 4. Memory. Non Significant 5. Camera
  18. 18. Hypothesis 1  Conjoint Analysis AttributesRespondents / Attributes and Levels Average Responses Operating System Windows 21.06 Android 4.0 0.23 iOS 6 8.37 Display 4.5 22.60 4 13.01 4.8 13.01 4.3 0.03 Memory 16 39.03 32 4.29 64 0.40 Camera 8 3.27 8.7 0.70 Battery 1800 22.61 2100 16.62 2000 15.06 1440 15.95 1. Windows (21.06) 2. 4.5 inch (22.60) 3. 16 GB (39.03) 4. 8 mega pixel (3.27) 5. 1800 mAH (22.61)
  19. 19. Hypothesis 1  Conclusion  Smartphone Preferences  Attribute Preferences. Experimental Group Conjoint Analysis HTC 8X Control Group Positioning Map Samsung GS 3 Apple iPhone 5 Experimental Group Paired Sample t-Test Windows. Display 4.5 inch. Control Group Positioning Map. iOS 6 & Android. 4 inch & 4.8 inch. Brand Name Control Group Questionnaire Brand Name Control Group Questionnaire
  20. 20. Hypothesis 2 Brand name influences the purchase intention of the consumer when selecting smartphone irrespective of the features provided by the particular model. Brand Name Experimental Group Conjoint Analysis 1. Market share simulations- Identify preferred smartphone. Control Group Paired Sample t- Test 1. Likelihood to purchase- Smartphone ranking. Experimental Group Purchase Intention Control Group Purchase Intention
  21. 21. Hypothesis 2  Control Group  Paired Sample t- Test. Likelihood of Purchase  Experimental Group  Conjoint Analysis. Preferred smartphone – 1. HTC 8X 2. Apple iPhone 5. Market Share Simulations. Market share predictions for different scenarios, using the share of preference Rule. 1. Samsung GS 3 2. Apple iPhone 5 3. HTC 8X Non Significant 4. Nokia Lumia 920 Product Profiles Profile 1 (HTC 8X) Profile 8 (Apple iPhone 5) Profile 10 (Samsung GS 3) Profile 11 (Nokia Lumia 920) Predicted market shares 12.18 10.91 9.56 8.27
  22. 22. Hypothesis 2  Conclusion  Likelihood of Purchase. Experimental Group Preference Conjoint Analysis HTC 8X Control Group Likelihood of Purchase Paired sample t- Test. Samsung GS 3 Brand Name Control Group Questionnaire 1. Price variable not included. 2. Comparisons between profiles are solely on the basis of features
  23. 23. Hypothesis 3  Particular set of dimensions compare smartphones rather than each available technical specification of the smartphone. Control Group Multi-dimensional Scaling 1. Bi dimensional model. 2. Dimension definition. Focus Group 14 Attributes/ Features 5 Attributes/ Features Control Group 5 Attributes/ Features Few Dimensions
  24. 24. Hypothesis 3  Euclidean Distance Model Results Dim 2 Dim 1 Dim 1 Dim 2 Dimension 1 1. Apple iPhone 5. 2. HTC 8X. Dimension 2 1.Samsung GS 3 2. Nokia Lumia 920. Pseudo Brand 1. Huwaei
  25. 25. Hypothesis 3  Euclidean Distance Model Results Dimension 1 1. Apple iPhone 5. 2. HTC 8X. Dimension 2 1.Samsung GS 3 2. Nokia Lumia 920. Pseudo Brand 1. Huwaei Stimulus Number Stimulus Name Dimensions (Axis) 1 (X axis) 2 (Y axis) 1 Apple iPhone 5 1.8257 0.1505 2 Nokia Lumia 920 -1.1767 1.1965 3 Samsung GS 3 0.4764 -1.254 4 HTC 8X -1.2919 -0.451 5 Huwaei 0.1664 0.3581 Stimulus Coordinates Goodness of Fit Stress 0.00337 R square 0.99986
  26. 26. Conclusion  Dimension definition Apple iPhone 5 1. Operating System. 2. Memory HTC 8X Samsung GS 3 1. Operating System. 2. Display 3. Battery 4. Camera Nokia Lumia 920 1. Camera. 2. Battery. 3. Display Dimension 1 Operating system Memory Dimension 2 Operating system Display Camera Comparable Features Operating systems Memory Display Camera
  27. 27. Overall Conclusion  Hypothesis  All the three hypothesis have been proved.  Hypo 1- Brand name influences preferences. 1. Smartphone features. 2. Brand and product.  Hypo 2- Brand name influences purchase intention. 1. Likelihood of buying changes from control group to experimental group.  Hypo 3- Two dimensions were found. 1. Comparable features were defined.
  28. 28. Future Research  Segmentation- Positioning.  Demographics- Gender  Location  Income group  Conspicuous Consumption.  70% Responses- India  High price brands- Apple & Samsung(Preferred)  Low price brands- HTC & Nokia.  Effect of Price.  Interaction between brand name and price.  Low cost smartphone in India- Nokia Lumia 610- $250.
  29. 29. Thank You

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