Research Paper Sample on the Underlying Factors Influencing Consumer Behavior of iPhone Users

Abstract

iPhone has achieved to capture the heart of many smartphone users by its various features and brand values across the world. Different people like Apple for different reasons since iPhone is known to meet the needs of individualistic lifestyle. The study focusses on understanding the factors that affect repeat purchase intention on iPhone users in Singapore. It uses the mixed methodology, both qualitative and quantitative methods via the administration of online questionnaire via SurveyMonkey. The study entails a total of 283 participants, who were selected via random sampling. The study establishes that there are common factors that influence people choice of iPhone over other products, including quality, premium brand image, functions, user-friendliness, or its design. The study reveals that perceived quality, customer experience, social influence, and customer satisfaction impact loyalty of iPhone customers behavior in Singapore. These factors are also drivers of iPhone customers behavior in Singapore. Besides, the study also highlights that iPhone X is the blueprint of innovation of Apple in Singapore. Even so, the study recommends that Apple increases the marketing of its brands, as well as improve the current product features, which will guarantee increased market share and profits.

Introduction

The study will examine to what extent factors that affect purchase decision, including psychological, sociology and economic factors affect repeat purchase intention on iPhone users in Singapore. The purchase decision is a process of thoughts, sorting their wants and needs that occurred in the mind of customers, in which they hold their values and perception of the product before deciding to buy. This process is a part of bigger concept consumer behavior. According to the definition of American Marketing Association, consumer behavior is the dynamic interaction of affect and cognition, behavior, and environment in which people carry out exchange their aspects of lives (De Mooij, 2011). According to Kardes (2014), it can be said that consumer behavior is applied social science that draws on theories and concepts of psychology, sociology, anthropology, economics, history, and statistics.

Background of information

Originally introduced in 2007, iPhone is a line of smartphones, designed by Apple Inc, California based multinational technology corporation. Different from other smartphones run by Android, iPhones are run by different mobile operating system called iOS. Now it has been ten years Apple has introduced a new innovation in the form of product line annually. In 2017, Apple introduced its recent 10th anniversary model of iPhone, iPhone X. iPhone and other Apple products have found their way to Singapore through authorized resellers and other online platforms. Even before authorized resellers opened up, iPhone was already in the grey market of Singapore. In 2017, Apple has launched their official retail in Singapore, and by November 2017, it already had a market share of 19.31%, as show in the figure below.

Figure 1. Market share of iPhone (stands at 19.31% by the end of Nov 2017 in Singapore). Source: Statcounter.com

1.2. Research Aim

The major aim of this study is to identify the underlying factors influencing consumer behavior and exploratory, and descriptive research will be conducted as well to understand the behavior of iPhone users in depth and how these factors influence their behaviors.

1.3. Research ObjectivesThe projects objectives can be described as:

To understand the basic consumer behavior of iPhone users

To further identify the factors impacting loyal customers behavior

To examine the factors that are affecting consumer behavior

To understand the drivers of consumer purchase decision-making

To examine the extent of success of iPhone X innovation which will be used for future innovation.

2.0. Literature review2.1 Conceptual frameworkThere are various factors that affect the purchase intention of iPhone users in Singapore, and these include perceived quality, customer experience, social influence, customer satisfaction, and economic factors. These work to influence the purchase decision among the iPhone users. As such, the conceptual model is as follows:

Perceived Quality

Customer Experience

Purchase Intention/Decision

Social Influence

Customer Satisfaction

Figure 2. The Conceptual Model.

2.2. Research Questions

The following research questions guide this study:

RQ1. Do perceived quality, customer experience, social influence, and customer satisfaction impact loyalty of iPhone customers behavior in Singapore?

RQ2. Do perceived quality, customer experience, social influence, and customer satisfaction are drivers of iPhone customers behavior in Singapore?

RQ3. Is the iPhone X innovation the blueprint of success for the company in Singapore, and can it be used for future innovation?

2.3 Hypotheses Development

RQ1. Do perceived quality, customer experience, social influence, customer satisfaction, and economic factors impact loyalty of iPhone customers behavior in Singapore?

Ho1. Perceived quality, customer experience, social influence, and customer satisfaction do not impact loyalty of iPhone customers behavior in Singapore.

Ha1. Perceived quality, customer experience, social influence, and customer satisfaction impact loyalty of iPhone customers behavior in Singapore.

RQ2. Do perceived quality, customer experience, social influence, customer satisfaction, and economic factors are drivers of iPhone customers behavior in Singapore?

Ho2. Perceived quality, customer experience, social influence, and customer satisfaction are not drivers of iPhone customers behavior in Singapore.

Ha2. Perceived quality, customer experience, social influence, and customer satisfaction are drivers of iPhone customers behavior in Singapore.

RQ3. Is the iPhone X innovation the blueprint of success for the company in Singapore, and can it be used as the foundation for future innovation?

Ho3. iPhone X innovation is not the blueprint of success for the company in Singapore, and cannot be used as the foundation for future innovation.

Ha3. iPhone X innovation is the blueprint of success for the company in Singapore, and can be used as the foundation for future innovation.

2.4. Repeat Purchase Intention

Tian, Shi, and Yang (2009) highlight that repeat purchase intention is a common phenomenon among smartphone users. Repeat purchase intention is important for every company as it establishes loyalty for the consumption of a specific line of products. As such, it is the goal of each company to capitalize on repeat purchase intention as it allows the company to make more profits. According to a study by Goh, Jiang, Abdul Hak, and Tee (2016), it was established that customer satisfaction was the overriding factor that allows for repeat purchase intention. Goh et al.s (2016) objective of their research was to study the impacts of factors upon repeat purchase intention of certain smartphone brand in Malaysia, inducing social influence as a moderation role and consumer satisfaction as mediating effect. The hypothetical factors researched in the study are product attribute, referred as PA, consumers intention of repeat purchase. The proclaimed hypothesis was that Customer Satisfaction has a mediating effect on the relation between product attribute and repeat purchase intention. The research is further studied to find the validation of social influences role in the influencing the relation between consumers unwillingness to change, referred as Consumer Inertia, CI, and Repeat Purchase Intention. (Goh et al., 2016)

The researchers (Go et al., 2016) used the quantitative research method to acquire empirical data from 400 participants via questionnaire. 220 of which was valid to use to assess the research hypothesis. Structural equation modeling is used to process and analyze the data. It is a very general, linear and essentially cross-sectional statistical modeling technique used for factors analysis. The variables studied in the research were rather psychological variables, such as social influence and perceived values. Constructing the questionnaire, numerical data was collected by using a 7-point Likert scale so that the measurement could be more specific, rather than using a 5-point scale. The whole research anticipated a conceptual framework of the factors analysis and correlation, using the quantitative data from 220 valid samples to validate the associated relationships among these variables. Its result indicates that there is a significant influence of PA and CI upon customers repeat purchase intention, positively and negatively respectively. The research established that customer satisfaction level moderately influences the dependent variable as well. Social influence plays a moderator role on the likeliness of repeat purchase intention (Goh et al., 2016).

In another research by Mazlan, Ariffin, Delaila Abd Aziz, and Yusof (2016) that sought to establish the factors that affect purchase intention of iPhone among business students in UiTM Puncak Alam, it was clear customer experience plays a critical role in ensuring that the students returned to buy iPhones once again. The study is essential for the current research as it looks into factors that affect the repeat intention of iPhone students. In this research, close-ended questions were used to construct the questionnaire, 250 of which were distributed using conveni...