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Students' Choice on Smartphones

The document summarizes research conducted on student customers' choice in smart phones. It describes the research objective of understanding what factors influence students to purchase smart phones from different vendors. A theoretical model of technology adoption is presented. Variables are selected based on this model and measurements are developed and pretested through surveys distributed to university students. The pretest findings show the questionnaire was too long and confusing in some areas. Multiple-item measurements are analyzed through factor analysis and frequency distributions.

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Student Customers’ Choice on Smart Phone Survey Design and Pretest Presenter : Delia Wu
What cell phone do you use?
Is it smart?
Operating System (OS) Application Development What is Smart Phone ? Large Screen, Touch Screen or D-Pad Internet, Email and Personal Full-size Keyboard Organizer
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
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
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
Apple’s iPhone June 29, 2007 July 11, 2008 June 19, 2009 iPhone Original iPhone 3G iPhone 3GS
Apple’s iPhone Research Conducted
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?
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?
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
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
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
Measurement Development Multiple-item Measurement Single-item Measurement Early Adopter Demand of New Technology Features Brand Loyalty Demand of Cell Phone Design Price Consciousness Way of Commute Attitude toward Ads and Promotion Actual Ownership of Cell phone Concern of Stylishness Brand of Cell Phone in Use Product Knowledge Actual Usage of Smart phones Attitude towards Operating Interface Actual use of 3G network Satisfaction of Cell Phone Service Behavioral Intention to Use Concern of Service Contract Reason of Changing a Cell Phone Attitude toward 3G Network Age Perceived of Usefulness Gender Perceived Easiness of Use Ethnicity
Data Collection Purpose: Pretest Time: March 20 to March 27 Place: GSU and Mugar Library in Boston University Total Survey Distributed: 110 copies Valid Survey Collected: 107 copies
Measurement Analysis Feedback from respondents 1. Questionnaire is too long 2. Too many questions 3. Font size too small 4. Row spacing too narrow 5. Many questions are similar 6. Confusion in Question
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
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,
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,
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”
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
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.
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”
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
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
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
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
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
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)
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.
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.
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.
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
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
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
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?
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)
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.
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
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
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%
Use of Data and Future Development • Test Hypothesis H1: Consumers tend to buy phones with familiar operating system/interface. H2: Consumers who have more product knowledge are more likely to choose mobile phones with unfamiliar operation system/interface. H3: Whether a phone can support third-party add-on application is important for smart phone users. • Target Potential Customer Sample within existing database to pinpoint consumer behavior.
Looking back Now Is it solving the problem?
Research Objective Research 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?
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
Thank You

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Students' Choice on Smartphones

  • 1.
    Student Customers’ Choice on Smart Phone Survey Design and Pretest Presenter : Delia Wu
  • 2.
    What cell phonedo you use?
  • 3.
  • 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 PhoneVendors 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
  • 9.
    Apple’s iPhone Research Conducted
  • 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 AdoptionModel (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 Dataand 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 Dataand 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.
  • 44.
    Looking back Now Is it solving the problem?
  • 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 Surveyfor Multiple Purposes • Few questions on consumer behavior • Lack measurements for future develop • Few questions on iPhone • Intention and actual use  Future purchase
  • 47.