A study of how application usage can help increase consumer satisfaction for brands

A study of how application usage can
help increase consumer satisfaction
for brands
By: Abeer Raza
Karachi, Pakistan
May, 2014

ii
Acknowledgement
In the name of Allah, most Gracious, most Compassionate. I started this research
with much vigor and zeal attempting to prove something that always perturbed me. It has
been a pain staking process redefining my curiosity into a research. My teacher and
mentor Dr. Muhammad Ali Khan Chisty deserves acknowledgement in providing me
with much needed direction to persevere and create the resultant material you see before
you. My family and friends also played a vital role in guiding me through thick and thin
within this journey of completing this research. And finally Mr. Furqan without whose
guidance this research would never have been made possible.

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Abstract
Regardless of type of smartphone usage priority more or less remains the same in
the smartphone application category. It is based on this that the study attempts to define
consumer satisfaction into four components that are tied to smartphone application
features. The study therefore focuses on the consumer satisfaction derived from these
four components. Information availability, time saving capacity, accessibility and
convenience provided by smartphone applications are the factors held accountable in this
study. The consumer derived utility from these factors is assessed by running a regression
analysis on the model generated. It is found out that the factors taken have a positive
relationship with consumer satisfaction and this relationship is mapped by a linear
function.

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S. No. DESCRIPTION PAGE NO
1. ACKNOWLEDGEMENT……………………………………………………………... II
2. ABSTRACT…………………………………………………………………………… III
3. LIST OF TABLES…………...……………………………………………………...… VI
4. CHAPTER 1: INTRODUCTION ………………………………………………….….
1.1 Overview …………………………………………………………………………..
1.2 Objective of the study ……………………………………………………………..
1.3 Problem Statement …….…………………………………………………………...
1.4 Research Hypothesis …………………………………………………………........
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2
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5. CHAPTER 2: REVIEW OF LITERATURE ………………………………………….
2.1 Mobile Marketing ………………………………………………………………….
2.2 Experiential Value among Smartphone Users ………………………………….….
2.3 Consumer Satisfaction with Mobile Technology ……………………………….....
2.4 Smartphone Application Usage in Travel and Tourism …………………………...
2.5 Smartphone Application Usage in Health Care ...………………………………….
2.6 Smartphone Application Usage in Banking …………………………………….....
2.7 Impact of Smartphones on Work Force Mobility....………………………………..
2.8 Framework for Mobile Advertising ……………………………………………......
2.9 Factors Affecting Smartphone Application Purchase ……………………………..
2.10 The Effect of Hotel Smartphone Application on Consumer Loyalty ………….....
2.11 Consumer Product Interaction through Smartphone Apps …………………….…
2.12 Satisfaction with Smartphone Apps ……………………………………………...
2.13 Justification for Research ………………………………………………………...
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6. CHAPTER 3: RESEARCH METHODOLOGY……………..……………….……….
3.1 Instruments Design ………………………………………………………………...
3.2 Sampling Technique ……………………………………………………………….
3.3 Method of Data Collection ………………………………………………………...
3.4 Sample Size ………………………………………………………………………..
3.5 Research Model Developed ………………………………………………………..
3.6 Statistical Technique ………………………………………………………………
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7. CHAPTER 4: RESULTS………………………………………………………………
4.1 Demographics ……………………………………………………………………...
4.2 Frequency of Usage of Smartphone/Smartphone Applications ………………...…
4.3 Types of Smartphones Used ……………………………………………………….
4.4 Regression Analysis ……………………………………………………………….
4.5 Reliability ……………………………………………………………………….…
4.6 Chronbach’s Alpha ………………………………………………………………...
4.7 Hypothesis Assessment Summary …………………………………………………
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8. CHAPTER 5: CONCLUSION, DISCUSSIONS, IMPLICATIONS, LIMITATION
AND FUTURE RESEARCH ………………………………………………………….
5.1 Conclusion …………………………………………………………………………
5.2 Scope ………………………………………………………………………………
5.3 Limitations ………………………………………………………………………....
5.4 Future Research ……………………………………………………………………
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5. REFERENCES…………….…………………………………………………………... 40
6. APPENDIX……………………………………………………………………………. 42

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S. NO.
TABLES
Page No.
1
4.11 Age 26
2
4.12 Gender 26
3
4.21 Phone Usage 27
4
4.22 App Usage 28
5
4.3 Type of Smartphones 29
6
4.41 Model Summary 30
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4.42 Anova 31
8
4.43 Coefficients 32
9
4.61 (Case Processing Summary) 35
10
4.62 Reliability 35
11
4.7 Hypothesis Assessment Summary 36

Application usage can help increase consumer satisfaction for brands 1
Chapter 1: Introduction
1.1 Overview
With the advent of the smartphone era technology has progressed in leaps and
bounds. Smartphones have allowed people the ability to access information and perform
digital tasks on the go. Gone are the days where people had to sit in front of their
computers to get a job done; the pace is set to make everything mobile. Enhancements in
the software architecture of the smartphone operating systems have allowed third party
developers to create innovative applications that can be run by the consumer’s mobiles.
Just like the Dot-Com boom in 1999 – 2001, companies these days are flocking towards
smartphone applications. The changing dynamics of consumer engagement are forcing
businesses to evolve their methods of reaching out to its audience. From social media
channels, to online gaming, to search engines, to video sharing sites, to mobile phones
businesses are adopting as fast as they can to reach their target market. As with all other
technological enhancements, businesses that are able to adapt to their consumers are able
to keep their edge, while others, unwilling to compromise on traditions slowly fade away.
Hence not only multi-national corporations but medium and small businesses have also
adopted the rising trend of smartphone application development.
On this note, a smartphone application is a program written in the phone’s native
OS that allows a user to download that program on their phones. Once it is downloaded
the user can perform various functions through the application that the programmer has
encoded within it. For businesses, this means a bevy of ways that they can attract
consumers towards their brands. From improved quality of service, greater productivity,

deeper business relationships, competitive advantage, to a more accurate data capturing
method, a business can literally exist in the consumer’s pocket. For consumers this
means more convenience, access to more information directly on their phones, allowing
for easy connectivity with the brand and innovation in the traditional services they
received previously. Applications from businesses allow consumers to conduct mobile
transactions directly from their phones, allow them to view products and other relevant
information through their phones, allows access to features such as location mapping,
camera accessibility and social sharing directly from applications.
1.2 Objective of the Study
Having established the significance of the accelerated enhancement of
smartphone applications in today’s post-modern era, this study attempts to investigate the
relationship between various relevant features of applications and the resulting levels of
consumer satisfaction, within Pakistan.
A number of studies have previously been conducted by various researchers in
attempt to acquire a better understanding of the different factors that contribute to
consumer satisfaction, as far as the use of mobile phones (in general) and smartphones
are concerned. One such study conducted by Persaud and Azhar (2012), for instance,
emphasized the importance of individual shopping styles, brand loyalty and consumer
values as significant variables that influences the consumer’s engagement in mobile
marketing. The research made use of 428 participants in an online survey, the results of
which were then assessed by the means of regression analysis. Despite the relatively large
sample size that can be achieved with the use of online surveys, one of the acknowledged

drawbacks of such a methodology is the authenticity and truthfulness of respondents in
their answers. As such, it would be interesting to carry out a similar investigation through
the use of a different methodology so as to see how the results vary. Another related
research that also makes use of regression analysis is that of Maghnati and Nasermoadeli
(2012), which unravels the relationship between experiential marketing and experiential
value in the smart phone industry. The researchers assert that there is a direct positive
relationship between various aspects of how consumers experience smart phone
advertisements, and their resulting experiential value.
Similar to the above mentioned researches, this study also makes use of a
regression analysis in order to determine the strength and direction of the relationship
between variables that may affect consumer satisfaction with the use of smart phone
applications.
Other researches include that of Lee, Tsai and Jih, I.H.F. Mansour and that of
Park, Shenoy and Salvendy, all of which highlight different factors that motivate
consumers to engage in mobile phone advertising. The study of Lee, Tsai and Jih (2006),
for example, highlights the importance of consumer motives, attitudes and intentions for
receiving mobile phone advertisements. The research conducted by Park, Shenoy and
Salvendy (2008), on the other hand, emphasizes the type of advertisement, its
presentation and message content, as significant factors that contribute to its
effectiveness. Lastly, the study conducted by Mansour (2012), highlight the social and
psychological factors that influence consumer attitudes and acceptance of mobile phone
marketing. These include the consumer’s existing knowledge, utility, attitude, perceived
risks and social norms towards mobile advertising.

All of the aforementioned researches have been conducted in countries other than
Pakistan, and have tended to focus on mobile advertising rather than smart phone
applications in particular. As such, it will be useful to identify the factors that affect
consumer satisfaction within the local market in today’s post-modern era, as is hoped to
be achieved in this particular study.
1.3 Problem Statement
Based on previous research, several features of applications have been found to be
positively related to consumer satisfaction. These include feel experience, brand loyalty,
perceived utility, social norms, consumer values and consumer shopping style, among
others.
However, the natural question arises, how accurate are these researches in terms
of their extension towards the local market, and what other aspects of smartphone
applications may be relevant as determinants of consumer satisfaction in Pakistan. As
such, this research is concerned with the identification and assessment of how the
following features of smartphone applications can contribute to increased or decreased
consumer satisfaction, within the local market: Convenience, Time Saving, Information
Availability and Accessibility.

1.4 Research Hypothesis
Most of the previous researches have built upon the Theory of Reasoned Action
to support their findings of positive correlations with their variables and consumer
satisfaction.
Based on the basic understanding of the nature of smartphone applications and
the notion of what contributes to the typical consumer’s utility, a positive direct
relationship is expected between each of the independent variables (convenience, time
saving, information availability and accessibility), and the dependent variable of
consumer satisfaction.
Table 4.1
Ho
There is no relationship between consumer satisfaction and the perceived
Convenience, the Time Saving aspect, Availability of Information and
Accessibility to the smart phone application, in the local market.
H1
There is a positive direct relationship between consumer satisfaction and
the perceived Convenience of smart phone applications, in the local
market.
H2
There is a direct and positive relationship between consumer satisfaction
and the Time Saving capacity of smart phone applications, in the local
market.
H3
There is a positive and direct relationship between consumer satisfaction
and the extent of Information Availability, regarding the smart phone
application, in the local market.
H4
There is a direct positive relationship between consumer satisfaction and
consumer Accessibility to the smart phone application in the local market.

Chapter 2: Review of Literature
The active use of smart phones in all respects of life is becoming one of the
characteristic traits of the current and younger generations. From research to gaming,
and business to entertainment, the smartphone has become more of a necessity than a fad
among today’s youth. The creation of this relatively new application based market has
thus attracted the attention of many researchers and organizations alike. This section
provides a descriptive narration of their findings and then highlights its specific relation
to the causes of this research.
2.1 Mobile Marketing
In a study conducted by Persaud and Azhar (2012), the researchers attempt to
shed light on the consumer’s perspective with regard to whether or not today’s consumers
are ready for the recent ‘mobile marketing’ movement. To achieve their purpose,
Persaud and Azhar (2012) make use of online surveys for a duration of seven days, the
results of which are then analyzed by means of ANOVA and regression analysis. A total
of 428 respondents were able to contribute to the study, all of whom were residents of
Canada at the time. Out of the 428 respondents, 48 % were females and the remaining
52% were males. Also, a majority of 62% of the sample was aged 18-24, while around
38% was aged 25 and above.
To identify and select relevant variables to their cause, the researchers conducted
a review of literature. Based on their research, they proposed the following hypotheses:

i. Perceived value is positively related to intention to participate in mobile
marketing.
ii. Trust in positively related to intention to participate in mobile marketing.
iii. Consumers whose shopping styles are compatible with mobile marketing are
more likely to participate in mobile marketing.
iv. Younger consumers are more likely to participate in mobile marketing.
v. More educated consumers are more likely to participate in mobile marketing.
vi. Gender will have no effect on intention to participate in mobile marketing.
The results of the study highlight the fact that variables such as, brand trust,
shopping style and perceived value are important to include along with demographic
variables such as gender and age, in order to obtain a holistic and accurate picture of
consumers. As far as demographic variables are concerned, the results indicate that
consumers from genders, age groups and education backgrounds seem to have an overall
positive outlook towards mobile marketing. Nonetheless, the researchers also emphasize
that since consumers tend to have different perceptions of value, the importance of the
development and delivery of high value products and services is immense. It has been
reported by the authors that a “value laden and value based” mobile marketing is a crucial
factor that can influence the success and failure of organizations and companies within
the field of mobile marketing.
In addition to this, the results also indicate that brand trust and permission are the
core variables that matter to consumers and can strongly influence their willingness to
participate in mobile marketing. However, the researchers also accentuate the fact that
other variables, such as, consumer privacy and the degree of control that consumers may

have over their participation in mobile marketing, can have an equally strong effect on
their actual participation levels. As such, the researchers maintain that individuals and
corporations who are able to preserve the balance between consumer choice and
interaction and the competitive drive created by the market, through the mobile platform
will be at an advantage over others.
Apart from this, the results also highlight the importance of consumer shopping
styles that can influence the degree of consumer willingness and participation to mobile
marketing. The authors further expound on this notion, claiming that all consumers may
not appreciate all aspects of mobile marketing and advertisements. The key to elicit
positive results through mobile marketing, therefore lies in creating personalized, non-
intrusive mobile marketing messages that appeal to the consumer and his/her shopping
style and preferences.
All in all, the study seems to provide evidence that variables such as consumer
shopping styles, perceived value, brand loyalty, permission and control tend to positively
affect consumer participation and willingness to participate in mobile marketing.
Lastly, the authors also highlight that the limitations of this study includes the
relatively small sample size, and therefore advise readers to be cautious about their
interpretations and use of the results and findings.
Nonetheless, with regard to this study, the findings of Persaud and Azhar (2012)
are mainly useful since they highlight some of the basic factors that can influence
consumer satisfaction through the use of their smartphones. This, along with the fact that
their study was limited to Canadians, can be taken as motivation to pursue and continue
with the goals of this study. However, as was previously mentioned, the direct

significance or relevance of their study in this research is that it highlights some of the
possible variables that can be considered as well as the expected relationships between
them that might emerge.
2.2 Experiential Value among Smartphone Users
In another study conducted by Maghnati, Ling and Nasermoadali (2012), the
relationship between experiential marketing and experiential value among the
smartphone consumers in Malaysia, has been investigated. The notion of ‘experiential
value’, as noted by the authors, is an elaborate one that may entail a number of aspects
and viewpoints. Therefore a holistic understanding of experiential value does not limit
itself to the extrinsic and intrinsic components but also includes an understanding of its
effect on the self and others. As a result, the components of experiential value include,
the extrinsic and self-oriented part (Utilitarian), the extrinsic and other oriented part (the
Social), the intrinsic and self-oriented part (the Emotional) and the intrinsic and other
oriented part (the Altruistic), based on the work of Boztepe (2010) as cited by the
authors.
Experiential marketing, on the other hand refers to a significant experience of a
consumer that remains memorable and serves the role of enhancing the value of the
product or service. As far as experiential marketing is concerned, Maghnati, Ling and
Nasermoadali (2012) highlight several different types, based on the work of Schmitt
(1999). These include sense experience, feel experience, think experience, act experience
and relate experience.

The authors therefore hypothesize that these various aspects of experiential
marketing can have direct influence on experiential value for the consumer. To verify
their hypothesis, the researchers make use of questionnaires in their descriptive research
methodology. A sample of 500 students from a private university in Kuala Lumpur was
obtained, and the resulting data was analyzed through reliability and validity tests, as well
as inferential analysis.
Having established the reliability and validity of their questionnaire surveys, the
researchers used multiple regression analysis to identify the relationship between the
variables. According the results that were obtained, the researchers concluded that there
was a significant positive relationship between the variables of sense experience, feel
experience, think experience, relate experience, act experience and experiential value. As
a result, the researchers were able to verify and accept their initial hypothesis, and
highlight the importance that these factors can play in the creation of experiential value
among consumers in the smartphone industry.
The relevance of the work of Maghnati, Ling and Nasermoadali (2012) to the
cause of this research is the fact that it sheds light on the factors that can further support
and lead to positive outcomes for application developers in the smartphone industry. In
addition to this, it also makes use of regression analysis, which is also the proposed
methodology for this study.
In a study conducted by Mansour (2012), the possible factors that can influence
consumers’ willingness to accept mobile advertising in Sudan were investigated. The
author further makes use of the Theory of Reasoned Action, to interpret and explain the
attitudes of consumers towards their acceptance and reception of mobile advertising. The

theory suggests that our behavior is driven by our intentions which in turn are formed
through our social environment and attitudes. It can be deduced that our attitudes towards
behavior can therefore determine our intentions of performing that behavior, according to
the authors. Based on this reasoning, the researchers isolated six independent variables
and two dependent variables. The independent variables include, personal innovation,
existing knowledge, perceived utility, attitude towards advertising, perceived risk and
social norms. According to the theory and literature that the author reviewed, it was
expected that personal innovation, existing knowledge, attitude towards advertising in
general, perceived usefulness, subjective norms and attitude towards mobile advertising
would have a positive influence on attitudes towards mobile advertising which would
result in the ultimate adoption of mobile advertising. On the other hand, the variables of
perceived risk and permission and control of mobile marketing, will negatively the
adoption of mobile advertising. Thus, the dependent variables in the study include
attitude towards mobile advertising and accepting mobile advertising.
To gather data, the author acquired a sample of 251 individuals from Sudan and
had them answer a questionnaire. The results were then interpreted through the use of
Cronbach’s alpha as well as linear regression analysis. The results indicate that perceived
utility, subjective norms, innovation and attitude towards advertising in general can
significantly influence individual attitudes towards mobile advertising and explain its
variation. However, existing knowledge, perceived risk and control, did not yield
statistically significant results, and therefore they do not explain the variations in attitudes
towards mobile advertising. The authors mention that these findings can be useful for

companies and business, since it shows that they need to focus on influencing people’s
perception in order to yield desirable behaviors and attitudes from their audiences.
2.3 Consumer Satisfaction with Mobile Technology
The significance of the study conducted by Mansour (2012) lies in the
identification of variables that can influence consumers’ satisfaction with mobile
technology. Even though the study does not directly focus on smartphone applications, it
provides an understanding of the factors that consumers may take into consideration
while using smartphone applications. It also highlights the importance and link between
consumer attitudes, intentions and behavior that can be applied to the use of smartphone
applications.
Similarly, a study conducted by Lee, Tsai and Jih (2006) sought to examine the
customer perceptions and behavior towards mobile advertisements. The study was
conducted in two different stages. The first stage involved focusing on the relationship
between consumer motives and consumer attitudes towards mobile advertisements,
whereas the second stage involved the use of the Fishbein and Ajzen’s Theory of
Reasoned Action as applied to mobile advertising and consumer attitudes. The results of
their study show that consumers carry an overall negative outlook towards mobile
advertisements. The authors highlight the fact that based on this finding, it can be
deduced that current mobile advertisements are not leaving a good impact on its audience
and that advertisers should take note of such events for further improvements in their
future plans. As far as the second stage of the research is concerned, the study validates

the Theory of Reasoned Action, as well which should also be considered for the
development of effective mobile advertisements in the future.
As with the study of Mansour (2012), the significance of the study conducted by
Lih, Tsai and Jih (2006), lies in the fact that the Theory of Reasoned Action, which
explains the role between individual attitudes, intentions and behaviors, has been
validated. And as such, it can be useful to use the theory in acquiring an understanding of
consumer satisfaction towards smartphone applications.
2.4 Smartphone Application Usage in Travel and Tourism
The study conducted by Janet E. Dickinson, Karen Ghali (2014) looks towards the travel
and tourism industry for the usage of smartphone applications. Travel and tourism is
another industry that has been heavily impacted by smartphone application usage. The
article tries to highlight the importance of smartphone applications in the travel and
tourism industry. The core feature that smartphone applications can offer when targeted
towards the mindset of the consumers (tourists). According to the study, smartphone
application play a vital role in reviving the traveling industry, using GPS location
mapping, real time data tracking, pictures and other aspects of the mobile technology
smartphone applications present a whole new frontier in travel and tourism.
2.5 Smartphone Application Usage in Health Care
The study conducted by Orrin I. Franko and Timothy F. Tirrell (2012) caters to
the impact of smartphone applications on the healthcare industry. The study tries to

ascertain the types of application medical professionals utilize. This study proves that the
importance of smartphone applications exist in the health care industry as a delivery
system for information, analysis and as a research medium. This research is another
venture into the industry wise analysis of how smartphone applications are already
helping consumers indirectly. Although this research focuses on health care professional
rather than the patients (consumers) themselves, the study provides a roadmap to
understanding how businesses can utilize smartphone applications to improve themselves
and hence serve their consumers better. Future research would need to be conducted in
the medical arena in order to improve this delivery system which is why the research by
O. I. Franko and T. F. Tirrell is of utmost importance. The study conducted points out
that over 85% respondents used smartphone apps in the usual routine to assist them in
their professional life. Drug guide at (79%) usage was the most widely occurring usage
for the practitioners followed suit by medical calculators (18%).
2.6 Smartphone Application usage in Banking
The study by Dohmen & Moormann (2009) constructs a revolutionary business
model for the banking sector that outlines how they can compete in an already
competitive environment and create a unique value proposition by providing a more
tailored banking experience. This approach shifts from the traditional banking
perspective of having a more detached system to a more relationship oriented approach.
The key element discussed in this study is the introduction of a smartphone application in
the consumer dealings of the bank. According to the study the writer suggested that
application development could provide numerous advantages by integrating banking into

the consumer lifestyle through a smartphone, this would in-turn create an emotional
connection with the customer fostering a better relationship with the bank. The paper
further goes on to describe an application that would be able to create such an impact and
provides an understanding of its implementation methodology. The study represents a
focal point for future researches which have enhances our understanding of how
smartphone applications can be used to enhance consumer interaction with business. This
prospect is also the core discussion within this research. The research by Dohmen &
Moormann (2009) therefore lays the ground work for this study by providing the same
model for a selective industry with banking. Application development has already
become a common standard in current times however factors in this study have still yet to
be addressed for future businesses. The study concludes itself by providing the future
prospects of research and provides further evidence that applications can be a great way
to get insight into the customer mindset. This can therefore provide a more structured
banking experience for consumers tailored for each customer based on what they want to
see.
2.7 Impact of Smartphones on Work Force Mobility
The study conducted by Zuellig & Meckel (2008)provides another interesting
prospective into the smartphone application development scenario. The study looks upon
smartphones as a performance enhancer for workforce productivity. The study was
conducted among sixteen (16) German companies seeking to establish a better mobile
work-force. The study provides evidence that smartphone can indeed enhance work-force
collaboration by providing information availability, enhanced connectivity, and the

overall transparency of the collaboration process. The study does present an important
dogma by providing insight into the fact that smartphone proliferation can be hindered by
the consumer’s overall attitude towards the technology. As with all changes the
integration of smartphone as a technology to enhance productivity cannot be made
successful without proper acceptance which may be enhanced by proper change
management.
2.8 Framework for Mobile Advertising
Unlike the previous studies that have been discussed so far, the study of Park,
Shenoy and Salvendy (2008) is concerned with the development of a framework through
which mobile advertising can be understood and examined. In addition to this, their study
also touches the topic of what factors can make mobile advertising more effective, and
suggests that these include ‘advertisement factors’, ‘audience factors’ and ‘environmental
factors’.
This study bases its conclusions and proposals on their analysis and examination
of fifty three case studies relevant to the topic. The three factors that contribute to the
effectiveness of mobile advertising are also based on the author’s compilation of case
studies. According to their discussion, advertisement factors can further be divided into
content factors and design factors. Results show that the larger the size of an
advertisement, the more likely it is to elicit a positive response. The researchers also
suggest that when compared to other kinds of advertisements, those with larger
illustrations and detailed descriptions are the most influential type.

Environmental factors were further divided into context and distracter, and
exposure time and repetition. And audience factors were divided into experience and
attitudes and involvement. The results show that the more involved a consumer is with a
product, the more likely it is for him/her to be accepting towards information about the
product. Apart from this, the role of consumer attitudes is also highlighted by the authors,
in their review. They note that different mediums through which advertisements are
delivered can elicit different reactions from consumers, which makes it difficult to study
effectively. However, in general, based on previous researches, it has been found that
most consumers react negatively to mobile advertisements, and positively when their
permission had been sought.
The significance of the review conducted by Park, Shenoy and Salvendy (2008) to
that of this study is that it reflects consumer preferences with regard to the effectiveness
of mobile advertisements. Such information should not be ignored when considering
consumer satisfaction with smartphone applications. Like with the previous study, the
study of Park, Shenoy and Salvendy (2008) also reflects the importance of consumer
attitudes towards their acceptance of the advertisements.
2.9 Factors Affecting Smartphone Application Purchase
The study conducted by Kim & Lee (2011) is an exploratory research that tries to
understand the factors that can affect consumers in their buying decision for paid
applications. This study is of utmost importance when considering the dissemination of
smartphone applications for businesses in the consumer market. The research utilized
factor analysis to extract the relevant factors to be taken into account while understanding

the purchase decision of consumers buying smartphone application. Concluding the
research, Kim & Lee suggest the factors, word of mouth, usefulness, ranking, monetary
value, trial performance, pleasure and ease of use were significant for the research.
Further research would need to be conducted to understand the relationship between the
factors highlighted in greater detail. This study lays the ground work for future researches
in understanding how application acceptance can be improved by looking into the factors
presented by this research.
2.10 The Effect of Hotel Smartphone Application on Consumer Loyalty
The study conducted by Donghee Kim and Howard Adler (2011) takes into
account multiple factors that result in consumer loyalty for the brand. The study utilizes a
model that allows for a conversion from mobile app usage to consumer loyalty through
an increase in brand awareness, consumer engagement and brand commitment. The
method of data collection was a questionnaire that was filled out by students and provides
evidence of how consumer loyalty relates to application usage. The study provides
empirical evidence into how hotels can utilize Smartphone applications to increase
consumer loyalty by increasing the factors discussed above.
2.11 Consumer Product Interaction through Smartphone Apps
The study conducted by Karpischek, Michahelles, & Fleisch (2012) caters to the
social aspect of consumer interaction with the product through smartphone applications.
The study focuses on an application that allows the users to scan a product and write a

short review about it online to allow other buyers to get word of mouth information for
their pre-purchase decision making. The study focuses on how smartphone phone
application can impact consumer interaction with products and how it can make the
whole process social. In this time of extreme connectivity it is becoming more and more
important for businesses to leverage a positive relationship with their consumers. The
study takes into account an actual application to elaborate that point. With the data
collected from the usage of the application the study is able to elaborate on the impact of
the post purchase reviews by users and the impact of that aggregate information source
on other consumer’s buying behavior.
Allowing information to flow seamlessly is an important aspect of mobile
integration for any business. As discussed within this research however it also presents its
unique set of challenges that may impact the product in the market. With the availability
of information and ease of access it becomes easier than ever for one negative review to
create a viral impact on the overall consumer mindset. As discussed within the study,
businesses need to bear in mind the overall impact of a smartphone application and its
usage must be constantly evaluated for any feedback that can improve overall usability of
the product.
2.12 Satisfaction with Smartphone Apps
The study conducted by Sun Gi Chun, Dalsang Chung and Yong B. Shin (2013) is
unique in its nature to be counted in this review of previous researches. This study is of
direct important to the research being conducted in this paper. Their study caters to the
impact of smartphone applications on the levels of satisfaction. The study tries to

enumerate factors that affect consumer satisfaction, factors such as, needs fulfillment,
performance improvement, easy to use easy to understand, privacy, and influence of
peers. Through the research it was deduced that consumers were indeed satisfied with
these factors which the study later establishes as the ‘levels of consumer satisfaction’.
The study also tries to figure out the demographic in terms of satisfied users taking into
account their gender, age, frequency of usage, frequency of downloads etc. The study
was conducted by having questionnaires filled out by respondents. Questions were
directly linked to factors to be taken into account as levels of satisfaction. The study
sough to answer questions on whether consumers were indeed satisfied with the use of
smartphone applications, what were the factors affecting their level of satisfaction, and
what were the demographics of the satisfied consumers. From the data collected in the
research, factor analysis was applied to check the factor loading of each instrument in
relation to the levels of satisfaction. Instruments with insignificant factor loading were
discarded. Furthermore, a multiple discriminant analysis was conducted to check if the 10
independent variables (instruments of deduction) were significant in explaining their
relationship with the 4 dependent variables (levels of satisfaction). The p-value was
deduced to be significant therefore the research was concluded with positive results in
terms of explaining consumer satisfaction with relation to the use of smartphone
applications.

2.13 Justification for Research
Therefore, based on the previous researches, the variables that can be significant
for the cause and purpose of this study can be suggested and justified. Also, the
methodology employed by the various studies can provide an insight on the shortcomings
and advantages of regression analysis and other such research methods that will be used
within this study. However, unlike the previous researches this study will focus on
smartphone applications and its consumers within Pakistan.

Chapter 3: Research Methodology
The survey formulated for the research was designed to test the positive
relationship between Consumer satisfaction and its derivatives. The design of the
questionnaire was constructed such that nineteen (19) items measure four (4) factors of
satisfaction, that is, Convenience of applications, information availability about the
brand, accessibility to the brand and time saving properties of applications. All
measurement items were statements for the respondent to reply on a Likert scale with a
five point scale from one (1) for strongly disagree and five (5) for strongly agree. Four
(4) items were included to measure convenience of application; three (3) items deduced
the factor, information availability about the brand, five (5) items in the questionnaire
catered to the factor accessibility to the brand and finally Accessibility was measured by
three (3) items on the questionnaire. Demographic questions were also included in the
questionnaire to deduce the age and gender of the respondents. Furthermore, questions to
identify the overall smartphone usage and application usage were also included.
Questions were also asked to understand the pattern of usage for Smartphone types and
application types.
3.1 Instruments Design
This research focuses on people between the ages of 18 – 28 that own a
smartphone. This particular population was selected for the research for several reasons,
apart from the obvious ease of access and convenience of the researcher. Firstly, today’s
youth are generally active in responding to changes in technology development. In
addition to this, majority of smartphone applications have been designed to specifically

cater to the needs of today’s youth. As a result, they would have a better knowledge and
understanding of the latest developments within the technological world of smartphone
applications, as they constitute a portion of smartphone application consumers as well.
The following variables are to be examined in the study:
a. Independent Variables: Convenience of applications, information availability
about the brand, accessibility to the brand and time saving properties of
applications.
b. Dependent Variable: Consumer Satisfaction
Measures of each of the independent variables are to be obtained through the use of
questionnaires with each variable mapped on to a Likert scale, as is the measure for
consumer satisfaction.
3.2 Sampling technique
Primary Data is to be collected from smartphone owners between the ages of 18 –
28.
3.3 Method of data collection
The data is to be collected through the use of a self-made questionnaire that
reflects each aspect of the dependent and independent variables in this study.
3.4 Sample Size:
A total of 192 respondents are to participate in the study that own any type of
smartphone (iPhone, Android, Windows or Blackberry)

3.5 Research Model Developed
The model shows that an increase in any of the independent variables should
bring about a corresponding increase in the dependent variable of consumer satisfaction.
That is to say, that the more convenient a consumer perceives an application to be, the
greater the satisfaction that can be derived from it. Likewise, the more information about
the brand that is made available to the public, it is expected that the more the satisfaction
and contentment of consumers will result with regard to the application. Consumer
satisfaction is also likely to increase if consumers are able to engage with the brand often
without any form of limitations or inconveniences, and if the application is perceived by
Consumer Satisfaction
Convenience of the
application
Information about the
brand
Accessibility to the
brand
Time saving ability of
the application

consumers as a way to reduce the time that would have been wasted, under normal
circumstances if they did not have the application to accomplish their tasks.
3.6 Statistical Test
Regression analysis will be used in order to determine whether or not the
relationship between the convenience of applications, information availability about the
brand, accessibility to the brand and time saving properties of applications are positively
related to consumer satisfaction, or not.

Chapter 4: Results
4.1 Demographics
Out of the 192 respondents 24.5% were Females and 75.5% were males (Table
1.1). In terms of age bracket, 1.6% lie in the 15 – 18 bracket, 23.4% lie in the 18 – 22 age
bracket while the rest 75 lie in the 22 – 30 age bracket (Table 1.2).
Table 4.11 (Age)
Frequency Percent Valid Percent Cumulative
Percent
Valid
15 – 18 3 1.6 1.6 1.6
18 - 22 45 23.4 23.4 25.0
22 - 30 144 75.0 75.0 100.0
Total 192 100.0 100.0
Table 4.12 (Gender)
Frequency Percent Valid Percent Cumulative
Percent
Valid
Male 145 75.5 75.5 75.5
Female 47 24.5 24.5 100.0
Total 192 100.0 100.0

4.2 Frequency of Usage of Smartphone/Smartphone Applications
Frequency of usage for smartphone and smartphone application usage was
deduced on a Likert scale of 1 – 5 (Table 1.3). Where smartphone usage is concerned
respondents acknowledged heavy usage of their smartphones with 89.6% confirming that
their usage of smartphones was more than often. Only 10.4% respondents suggested that
their smartphone usage was rare or very rare. In the case of application usage as
suggested by the results (Table 1.4) 93.8% respondents suggested they usage application
often while 6.2% stated that they used applications rarely.
Table 4.21 (Phone Usage)
Frequency Percent Valid Percent Cumulative Percent
Valid
Very
Frequently
103 53.6 53.6 53.6
Frequently 49 25.5 25.5 79.2
Often 20 10.4 10.4 89.6
Rarely 14 7.3 7.3 96.9
Very Rarely 6 3.1 3.1 100.0
Total 192 100.0 100.0

Table 4.22 (App Usage)
Valid
Very
Frequently
55 28.6 28.6 28.6
Frequently 84 43.8 43.8 72.4
Often 41 21.4 21.4 93.8
Rarely 7 3.6 3.6 97.4
Very Rarely 5 2.6 2.6 100.0
Total 192 100.0 100.0

4.3 Types of Smartphones Used
Type of smartphone used was deduced through a table showing widely used
smartphone choices. Respondents selected the smartphone they used from them. The data
collected (Table 1.5) shows that the highest usage of smartphone is of Samsung 31.8%.
Q-Mobile usage was at 18.2% whereas iPhone usage was at 14.6%. HTC was found to be
the least used smartphone at 11.5%. A subset was given to the not so common
smartphones in the market which amounted to 24% of the dataset. Among the other
smartphones used the most common were Nokia and Sony Ericson.
Table 4.3 (Smartphone)
Valid
Q-mobile 35 18.2 18.2 18.2
HTC 22 11.5 11.5 29.7
iPhone 28 14.6 14.6 44.3
Samsung 61 31.8 31.8 76.0
Others 46 24.0 24.0 100.0
Total 192 100.0 100.0

4.4 Regression Analysis
The data collected was tested with regression analysis for viability as an overall
model fit (Table 2.1). The correlation between the observed value of the dependent
variable and the predicted value as denoted by R was .838. The R-Square value at .703
provides further insight into how much variance in the dependent variable ‘Consumer
Satisfaction’ can be proved by the four (4) independent variables.
Further analysis of the variance in the dependent variable resulting from the
independent variable provides us insight into the overall significance of the regression
model (Table 2.2). The degree of freedom (df) is 4 which suggests 5 coefficients were
analyzed in this result. The statistical hypothesis test denoted by level of significance is
<.05 suggesting that the model is plausible and that the null hypothesis should be
rejected.
Table 4.41 (Model Summary)b
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .838a
.703 .696 .45917
a. Predictors: (Constant), Accessibility, Convenience, Time_Saving,
Information_Availability
b. Dependent Variable: Satisfaction

Table 4.42 (ANOVA)b
Model
Sum of
Squares df
Mean
Square F Sig.
1
Regression 93.228 4 23.307 110.547 .000a
Residual 39.426 187 .211
Total 132.653 191
a. Predictors: (Constant), Accessibility, Convenience, Time_Saving,
Information_Availability
b. Dependent Variable: Satisfaction
Further analysis into the linear relationship of the regressed model provides
insight into the coefficients of the variables and their significance within the model. As
per the results (Table 2.3) all independent variables taken in the study have a significant
impact on the dependent variable. The independent variables convenience, time saving,
information availability and accessibility are accurate predictors of the dependent
variable Satisfaction. Furthermore, the B values of each independent variable provide the
coefficient for each independent variable in the linear equation. The value of the constant
in the equation is .420.
The linear equation as per the table that predicts the relationship between the
independent variables and the dependent variable is given by:
Consumer Satisfaction = 0.420 + 0.080 (Convenience) + 0.282 (Time Saving) + 0.296
(Information Availability) + 0.236 (Accessibility)

Table 4.43 (Coefficients)a
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.
Collinearity Statistics
B Std. Error Beta Tolerance VIF
1
(Constant) .420 .154 2.719 .007
Convenience .080 .031 .127 2.623 .009 .676 1.479
Time_Saving .282 .061 .285 4.613 .000 .418 2.395
Information_Availa
bility
.296 .065 .300 4.528 .000 .363 2.755
Accessibility .236 .052 .268 4.565 .000 .462 2.165
a. Dependent Variable: Satisfaction

4.5 Reliability
The charts below provide further evidence to support the overall reliability of the
data used. The histogram and the P-P Plot both suggest that the data is reliable and is no
inconsistent with the linear equation.

4.6 Chronbach’s Alpha
Further reliability tests show internal consistency in the model presented in this
research. The case processing summary (Table 3.1) shows that 99.5% cases were valid
while 0.05% were excluded from the data analysis. Reliability stats in the form of
Chrombach’s alpha show considerable level of internal consistency at 0.886 (Table 3.2)
providing insight into the consistent relationship in the model selected for this research.
Table 4.1 (Case Processing
Summary)
N %
Cases
Valid 191 99.5
Excludeda
1 .5
Total 192 100.0
a. Listwise deletion based on all variables in the
procedure.
Table 4.2 (Reliability)
Statistics
Cronbach's
Alpha N of Items
.886 19

4.7 Hypothesis Assessment Summary
Ho There is no relationship between consumer satisfaction and the perceived
Convenience, the Time Saving aspect, Availability of Information and
Accessibility to the smart phone application, in the local market.
Rejected
H1 There is a positive direct relationship between consumer satisfaction and the
perceived Convenience of smart phone applications, in the local market.
Accepted
H2 There is a direct and positive relationship between consumer satisfaction and
the Time Saving capacity of smart phone applications, in the local market.
Accepted
H3 There is a positive and direct relationship between consumer satisfaction and
the extent of Information Availability, regarding the smart phone application,
in the local market.
Accepted
H4 There is a direct positive relationship between consumer satisfaction and
consumer Accessibility to the smart phone application in the local market.
Accepted

Chapter 5: Conclusion, Discussions, Implications, Limitation
and Future Research
5.1 Conclusion
Consumer satisfaction is the end goal for all businesses far and wide. The notion
of providing products or services that satisfy the wants and needs of consumers has
progressed to include various value added attributes that distinguish brands in the
consumer mindset. This study sought to address a relevant medium of consumer outreach
for businesses. The idea that a smartphone application can deliver consumer satisfaction
through 4 controlled derivatives was tested in this research. Through this study which
focused on smartphone users it was deduced that smartphone application through 4
distinct features do indeed have a positive impact on consumer satisfaction for brands.
The study used a regression analysis to create a linear relationship in the model discussed
previously. The linear relationship was created while the independent variables showed
significant impact on the dependent variable (consumer satisfaction) proving the
hypotheses discussed in the research.
5.2 Scope
The study was attempted to highlight the important of smartphone application
creation for brands in Pakistan. The idea was to enlighten the business environment of
today on how the consumer mindset has progressed from a one way marketing
relationship to a two way communication with their favorite brand. Keeping in mind the
limitations discussed below, the study provides irrefutable evidence that the consumer of
today seeks more than just the product and the service from the business but a more

comprehensive value proposition that business must seek to adopt to be able to compete
with growing consumer demand creating loyalists through enhanced consumer
satisfaction. This research in its limited scope lays the ground work for future research
into how application development can enhance consumer satisfaction for each selective
business sector and how can business seek to further facilitate their consumers
5.3 Limitations of the Study
The study only focuses on students and professionals between the ages of 18 – 28
within Pakistan. As such, it would be unethical and impractical to generalize the findings
so as they represent the preferences of the entire population of the country. Instead, the
findings and resulting interpretations are only relevant for this particular population
group.
In addition to this, it is important to mention that the rate at which technological
advancements are proliferating within the field today brings about an equally rapid rate of
change of consumer preferences and satisfaction. Therefore, the findings of this study can
only be valid for the year 2015, since a time series data is not being generated.
5.4 Future Research
The independent variables discussed in the study, namely information availability,
time saving capacity, convenience and accessibility also provide an important resource to
marketers of tomorrow. The fact that consumer wish to be educated about their favorite
brand, the fact that they see time saving as a motivator in their decision making process
and the fact that convenience and accessibility to their brand can be enhanced through
smartphone apps is an insightful aspect. This highlights prospects for marketers to exploit

and provide more value to the consumers in the days to come. Business can utilize a new
channel in their current supply chain. They can reach to potential consumers and increase
the overall consumer equity by engaging consumers through a new distribution center.
Smartphone applications also allow for a bevy of features through which business can
engage consumers on a more personal level through a channel that allows for consumers
to establish a two way communication with their brands. Future research on this segment
can provide businesses a whole different level of outreach into the consumer mindset,
their pre/post-purchase habits, their overall lifestyle and other insightful details into
consumer analysis. While the whole world has progressed from smartphone
banking/payments to wearable interfacing technology Pakistan still needs to adopt to the
basic application infrastructure. It is in this hope that this research provides the core
guideline to future research in this segment.

References
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Appendix
Questionnaire Extract
Consumer engagement has been is an ever evolving dynamic for brands; application
development for Smartphones is another turnpike on that road. By taking into account
relevant factors of satisfaction from Smartphone applications, this study tries to gauge
whether consumer satisfaction can be garnered by businesses through Smartphone
applications for their brands.
Demographic:
Name:
Age:
a. 15 – 18
b. 18 - 22
c. 22 – 30
d. 31
Gender:
a. Male
b. Female
Email: ____________________
Cell: _____________________
Which smartphone brand do you use?
a. Q-mobile
b. HTC
c. iPhone

d. Samsung
e. Others (Please specify) ____________
How often do you use a smartphone?
a. Very Frequently
b. Frequently
c. Often
d. Rarely
e. Very Rarely
What is your usage priority?
a. Games
b. Utilities (Calculator, calendar, alarms, notes etc.)
c. Communication (Skype, Viber, Whatsapp etc.)
d. Social Networking (Facebook, Google plus, etc.)
e. Emailing (Gmail, outlook, yahoo, etc.)
How often do you use a smartphone application (Applications include all categories in
usage priority question)?
a. Very Frequently
b. Frequently
c. Often
d. Rarely
e. Very Rarely

Research Questions Strongly
Disagree
Disagree Not
Sure
Agree Strongly
Agree
1 Do you agree that smartphone users frequently use a
certain app because of the feature it offers?
2 After web purchasing, Smartphone purchasing is
gaining momentum in the developing countries. Do
you think purchasing done through Smartphone
applications can be a viable business model for a
business?
3 With a wide array of features Smartphone
applications for businesses have shown great promise
in connecting the bridge between consumers and
businesses. Would you consider downloading an
application of your favourite product brand?
4 Smartphone applications are easy to understand & use
and do not require any form of
tuition/manual/help/guidance.
5 Application Usage provides convenience to users of
branded products.
6 Apps are thought to make our life easier, doing things
such as streamlining our calendars and grocery lists,
offering entertainment while we’re stuck in line, and
making it easy to collaborate with co-workers.
Consumers associate apps with productivity. Do you
share the same opinion?
7 Instead of going to the store, consumers can make
direct purchases through their smartphone via
branded applications. Would you agree this would
help in saving time for the consumers?
8 From books to computers to laptops to smartphones,
the accessibility and availability of information has
allowed us to choose what we want and when we
want faster. How far would you agree?
9 Application Usage can help save time for consumers
of branded products.

10 Mobile applications allow businesses to catalo their
products in a sleek and easily searchable interface. Do
you think this can enhance your overall interaction
with the brand?
11 Interconnectivity of the World Wide Web and more
recently the social networking phenomenon has
allowed businesses to connect with their consumers
on a more personal level. How far would you agree?
12 In this age of virtual connectivity physical boundaries
have become obsolete. Would you agree that
businesses need to build stronger ties with their
consumers through digital media?
13 Smartphone applications allow businesses to
communicate with their consumers on a one to one
basis through in-app messaging. Do you feel that this
could be a viable mode of interaction?
14 GPS navigation, offers/deals sent through push
notifications, social integrations through
Facebook/Twitter/YouTube are just a few features
that can allow businesses to enhance accessibility to
their products for the consumers. How far would you
agree?
15 Application Usage allows consumers to easily access
their favourite brands
16 Staying updated with recent offers and daily deals
from brands can help people save and get more for
their brand

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