Buying Behavior of Cell Phone Users Essay Example
Buying Behavior of Cell Phone Users Essay Example

Buying Behavior of Cell Phone Users Essay Example

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  • Pages: 10 (2716 words)
  • Published: March 2, 2017
  • Type: Research Paper
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The portable electronic device commonly known as the "mobile phone" or "cell phone" or "hand phone" is called the Cellular telephone. It is used for long-range mobile communication and offers various additional services such as text messaging (SMS), email, Internet access through packet switching, and photo and video sharing via MMS. Most mobile phones connect to a cellular network composed of base stations (cell sites) that are connected to the public switched telephone network (PSTN), except for satellite phones. The Cellular telephone is also defined as a form of short-wave analog or digital telecommunication where subscribers can establish wireless connections between their mobile phones and nearby transmitters. These transmitters have coverage areas known as cells. Typically, cellular telephone service is available in urban areas and major highways.

Cellular telephones are handed off to nearby cell transmitters when the user changes the

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ir location, ensuring continuous coverage. It is important to differentiate between cellular phones and cordless phones, as the latter only have a short wireless connection to a local phone outlet. Another similar service is personal communications services (PCS). Students rely on various sources like friends, family, advertisements, and personal experience to understand cellular phones.

The impact of promotions and advertising on a brand's success is not well-studied (Mela, Gupta, & Lehman, 1997). However, in the long term, advertising can benefit brands by reducing consumer price sensitivity and increasing loyalty. The effectiveness of an advertisement in altering consumer knowledge, attitude, and behavior relies on its exposure (Evans, Moutinho, & Van Raaj, 1996). To achieve this exposure, the ad must captivate the attention of its intended audience.

According to Pietes, Warlop, and Wedel (2002), 'ads originality' refers to the ability

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of ads to capture customers' attention and be easily remembered. This attention not only benefits the ad itself but also increases attention towards the brand being advertised. However, regardless of the ad content, brand leaders have a higher chance of success due to the influence of their brand (Simon, 1970). On the other hand, ads for less popular brands may not be as successful, even if their content is of good quality.

According to Hawkins, Best, and Coney (1992), the affinity for the brand itself can influence the affinity for the brand. Nevertheless, according to Biehal, Stephens, and Curlo's (1992) study, whether consumers like or dislike an advertisement does not always result in acceptance or rejection of the brand. Therefore, even if consumers enjoy the advertisement they see, it does not automatically translate into a purchase of the advertised brand. Typically, consumers utilize their attitude towards the advertisement as a determinant for choosing a brand, similar to their attitude towards the brands (AB).

Advertisers should consider that advertising messages are interpreted differently by different genders (Maldonando, Tansuhaj & Muehling, 2003; Hogg & Garrow, 2003; Putrevu, 2001). Previous studies indicate that women engage in more elaboration than men (Maldonado & Muehling, 2003). According to Hogg and Garrow (2003), women focus on the details of characters in ads when analyzing advertising messages. The researchers suggest that this may be due to women's tendency to consider external information and information about others more than men.

The study focused on the influence of symbolic or tangible elements on brand preference, while neglecting to discuss the impact of product characteristics. Advertisements have the power to change consumers' perception of a product's attributes and

even affect their preference for certain attributes (Gwin; Gwin, 2003). Brand preference and product attributes refer to the characteristics or features that an object may possess, including both intrinsic and extrinsic factors (Mowen; Minor, 1998). Benefits are the positive outcomes resulting from these attributes. Consumers look for products that have attributes capable of solving their problems and meeting their needs (Mowen; Minor, 1998). Marketers can gain insights into why consumers prefer specific brands by understanding why they choose products based on their attributes (Gwin; Gwin, 2003).

In their study, Gwin and Gwin (2003) utilized the Lancaster model of consumer demand (1966, 1979), also known as the product attributes model, to assess brand positioning. This model assumes that a consumer's choice is based on the characteristics or attributes of a brand. Each product consists of a bundle of attributes, and choice is determined by maximizing utility/satisfaction from these attributes within budget constraints. However, this model has two limitations: it is both static and deterministic, and it does not explain how preferences for attributes are developed. The article also fails to mention whether product experience influences attribute preferences. According to Myers (2003), both tangible and intangible attributes play an equal role in selecting a product or brand. There is no evidence suggesting that certain attributes have stronger connections to customer loyalty compared to others (Romariuk & Sharp, 2003).

According to Romariuk and Sharp (2003), customer loyalty tends to increase with the number of attributes a brand has. They recommend that marketers focus on the total number of attributes rather than specific ones. However, this study does not specify whether these attributes should be relevant or irrelevant, tangible or intangible.

It is important for consumers to accurately perceive product attribute performances because it can affect their interpretation of product performance and create biases in memory encoding and retrieval. Having unfounded beliefs about product attribute relationships can result in unmet expectations and dissatisfaction (Mason & Bequette, 1998). Nonetheless, some irrelevant attributes may still play a role in influencing consumer choice. Persistent preferences for certain product attributes can develop when there is low ambiguity in initial choices for noticeable attributes and with experience, even if these attributes are not typically associated with favorable brand outcomes (Muthukrishnan & Kardes, 2001).

According to Mason and Bequette (1998), consumer purchase behavior is more influenced by the perception of product performance based on salient attributes rather than actual product performances. Likewise, Myers (2003) concluded that attribute knowledge may have a greater impact on brand equity than consumer preference. For low-involvement products, such as food and cosmetics, consumers tend to have a more objective view of the attributes due to constant advertising and promotion. Additionally, Rioo, Vasquez, and Iglesias (2001) suggested that consumer evaluation of a product can be categorized into evaluation related to tangible or physical attributes and intangible attributes or images associated with the brand name.

Allen's (2001) study revealed a significant relationship between human values (such as hedonistic, achievement, self-direction, conformity, and security), consumer product preference, and the importance of tangible attributes in determining how consumers perceive and evaluate a product. Human values have an impact on the significance of tangible attribute importance that is already relevant to consumers. However, the perception of a product's performance on salient attributes carries more weight than its actual performance (Mason & Bequette, 1998). Mowen

and Minor (1998) recommend that marketing managers understand the attributes that consumers anticipate in a product and how they rate these attributes positively or negatively to develop and promote successful products. Retailers should also be well-informed about the most crucial product attributes perceived by different consumer groups to establish and retain market share (Warrington & Shim, 2000). Ultimately, it is the consumer who determines which attributes hold significance for them.

According to Warrington and Shim (2000), different consumer groups prioritize different attributes. LP/SB consumers, who have low product involvement but strong brand commitment, value product attributes and orientations more than LP/WB consumers, who have weak brand commitment and place the most importance on price. Gwin and Gwin (2003) suggest that marketers should use advertisements to emphasize attributes that may not have been previously considered important to consumers. Romariuk and Sharp (2003) propose two objectives for brand building: short-term focus on identifying specific attributes to communicate to the market and long-term focus on building a strong brand perception in the minds of consumers. This makes it difficult for competitors to access consumers' thoughts. Additionally, the brand name itself is an important attribute.

Both del Rio, Vasquez, and Iglesiaz (2001) have acknowledged the functional and symbolic aspects of brands. Regarding functionality, consumers evaluate product performance based on capabilities, effectiveness of use, value for money, and reliability. Furthermore, consumers perceive the purchase and consumption of products as a means to express their self-image and create impressions on others in their surroundings. Hence, the perceived advantages of a brand name are closely linked to the benefits offered by the actual product. According to del Rio et al. (2001), a well-known brand

indicates a better image and a superior product. However, as previously mentioned by Mason and Bequette (1998), consumers place greater significance on perceived product performance rather than actual attribute performance. In a similar vein, Myers (2003) established that attribute knowledge has more influence on brand equity than consumer preference does—possibly due to consumer biases and prejudices. Additionally, memory plays a role in shaping consumers' evaluations of products.

The biasness can be reduced by having current information, experience and knowledge (Mason and Bequette, 1998).

It is not surprising that brands believed to offer superior value are preferred by consumers and chosen more frequently (Myers, 2003).

Brands with higher equity lead to greater preferences and market shares. Price is also used by consumers as a way to evaluate a product. A higher price can sometimes indicate higher quality (Mowen & Minor, 1998; Siu & Wong, 2002).

Consumers perceive that a higher price can be attributed to the higher cost of quality control (Siu & Wong, 2002). Some consumers are highly price sensitive (elastic demand), and high prices may cause them to switch to competitive brands (Mowen & Minor, 1998).

In terms of brand preference, the price of a product can either positively or negatively affect customers. However, this study specifically focused on how the symbolic or tangible elements influence brand preference, excluding discussion on tangible aspects such as product characteristics. It was found that advertising can alter consumers' perception of a product's attributes and their proportions, ultimately impacting their preference for these attributes (Gwin ; Gwin, 2003).

When referring to brand preference and product attribute, attributes can be defined as the characteristics or features that an object may or may not possess. These

attributes encompass both intrinsic and extrinsic qualities (Mowen ; Minor, 1998). Meanwhile, benefits refer to the positive outcomes that result from these attributes. Consumers seek products that possess attributes capable of solving their problems and fulfilling their needs (Mowen ; Minor, 1998).

Understanding why consumers choose a product based on its attributes is essential for marketers in comprehending brand preferences (Gwin ; Gwin, 2003). The study conducted by Gwin and Gwin (2003) utilized the Lancaster model of consumer demand (1966, 1979), also known as the product attributes model, to assess brand positioning. This model assumes that consumer selection is influenced by the characteristics (or attributes) of a brand. Each product comprises a set of attributes, and decision-making is driven by maximizing utility/satisfaction derived from these attributes while considering budget limitations.

However, the model had two limitations. First, the model was static and deterministic. Second, it did not explain how preferences for attributes were formed. Additionally, the article did not mention if product experience influenced attribute preferences. According to Myers (2003), both tangible and intangible attributes are equally important in choosing a product or brand. There is no evidence that certain attributes are more related to customer loyalty than others (Romariuk & Sharp, 2003). However, it was found that the more attributes a brand was associated with (non-negative), the more loyal the customer (Romariuk & Sharp, 2003). Romariuk and Sharp (2003) suggested that marketers should focus on the number of attributes a brand is associated with rather than the specific attributes.

However, this study did not specify the type of attributes marketers should associate the brand with. It did not clarify if these attributes should be relevant or irrelevant,

tangible or intangible, etc. The reason for this is that it is crucial for consumers to accurately understand the performance of product attributes. This is because it could influence their perception of product performance by causing memory encoding and retrieval bias. When consumers hold unfounded beliefs about product attribute relationships, it can mislead them into expecting something that does not exist.

(Mason ; Bequette, 1998) suggests that if products do not meet customer expectations, it can lead to dissatisfaction. However, research has shown that certain attributes, even if they are unrelated, can still significantly influence consumer choice. When there is low ambiguity in the initial choice of important attributes and coupled with experience, consumers tend to prefer those attributes, even if they may not be traditionally associated with positive brand outcomes (Muthukrishnan ; Kardes, 2001).

Mason and Bequette (1998) suggested that consumers' perceptions of product performance based on salient attributes have a stronger influence on purchase behavior than actual product attribute performances. Similarly, Myers (2003) found that attribute knowledge may have a greater impact on brand equity than consumer preference. For low-involvement products like food and cosmetics, consumers tend to have a more objective understanding of the attributes due to constant advertising and promotion.

Similarly, Rioo, Vasquez, and Iglesias (2001) proposed that when evaluating a product, consumers consider both its tangible attributes (such as physical features) and its intangible attributes, such as the brand name's associated images. In a study by Allen (2001) on the connection between human values and consumer purchases, it was discovered that there is a significant relationship between human values (e.g., hedonistic, achievement, self-direction, conformity, security) and consumers' preferences for products. This preference is

influenced by the importance consumers place on tangible attributes (how they perceive the product's physical characteristics) and intangible attributes (the symbolic meaning and importance of tangible/intangible attributes in evaluating the product).

Human values have a significant impact on the importance of tangible attributes in a product, as perceived performance on these attributes holds more significance than actual performance (Mason & Bequette, 1998). For successful product development and promotion, marketing managers should be aware of the attributes that consumers expect and how they rate them positively or negatively (Mowen & Minor, 1998). To maintain market share, retailers should have knowledge about the most important perceived attributes for each consumer group (Warrington & Shim, 2000). Ultimately, it is the consumer who determines which attributes are important to them, with different consumer groups assigning varying levels of importance to different attributes (Warrington & Shim, 2000). Interestingly, research shows that consumers categorized as LP/SB (low product involvement/strong brand commitment) place more importance on product attributes and orientations compared to LP/WB (weak brand commitment) consumers, who prioritize price the most.

Marketers should consider using advertising to highlight important attributes to consumers that may not have been previously considered. Gwin and Gwin (2003) suggest that this can influence consumer perceptions. Romariuk and Sharp (2003) propose two objectives for brand building: short-term and long-term. In the short term, managers should identify specific attributes to communicate to the market and determine the most effective way to deliver the message. The ultimate goal is to create likable advertisements. In the long run, managers need to establish a strong consumer perception of the brand, making it the first choice for consumers and creating barriers for competitors (Romariuk

& Sharp, 2003). Additionally, the brand name itself is a significant attribute of the product.

Both functional and symbolic dimensions exist within brands (del Rio, Vasquez ; Iglesiaz, 2001). Consumers evaluate product performance based on capabilities, usage effectiveness, value for money, and reliability. The purchase and consumption of products are seen by consumers as a form of communication to enhance self-image and make impressions on others (del Rio, Vasquez ; Iglesiaz, 2001). Therefore, the perceived benefits of a brand name are closely tied to the benefits associated with the product itself. A strong brand indicates both a positive image and a high-quality product (del Rio, Vasquez ; Iglesiaz, 2001). However, as previously mentioned, Mason and Bequette (1998) suggest that perceived product performance is more important than actual attribute performance. Similarly, Myers (2003) concludes that brand equity may be influenced more by attribute knowledge than consumer preference.

Consumer bias and prejudice can affect product evaluations, as consumers' memories play a role in influencing these evaluations (Mason and Bequette, 1998). To reduce bias, it is important for consumers to have up-to-date information, experience, and knowledge. Consequently, it is not surprising that brands perceived to offer greater value are frequently preferred by consumers (Myers, 2003). Brands with strong equity tend to be more preferred and have higher market shares. Additionally, price is a key factor that consumers consider when evaluating a product.

Price is often seen as a reflection of quality, with a higher price suggesting higher quality (Mowen & Minor, 1998; Siu & Wong, 2002). Customers believe that a higher price is associated with higher costs for quality control (Siu & Wong, 2002). Some customers are highly sensitive to price

(elastic demand), and may switch to alternative brands when prices are high (Mowen & Minor, 1998). As a result, price can have both positive and negative effects on customers.

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