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Dissertation Report Submitted to University of Wales Institute Cardiff In the partial fulfilment of the requirements of the degree of Bachelors of Arts in Business Studies What factors affect the Customers’ Buying Attitudes towards Handheld Electronics Devices (Cell Phones, iPod, Cameras and MP3 Players) in UK? By Uzair Ifrahim Statement of Authenticity Apart from any work in quotes or cited from previous theories (has been acknowledged), I do hereby solemnly affirm that I have completed this study with my personal efforts.

Furthermore, I declare that university of Wales Institute of Cardiff is authorised to publish, photocopy or publish this study online. Uzair Ifrahim Abstract Customer behaviour research explains the steps used by customers in selecting, securing, using and disposing of different products and services that usually play a vital part in fulfilling their needs. A sound understanding of customer buying behaviour directly affects the marketing strategy of a business. Basic idea behind every successful marketing strategy is to understand the needs and preferences of the target customers.

Customers’ needs can only be met if a business has full understanding about these needs. Understanding of the customer buying attitudes has a key role in a successful strategic marketing plan. The overall purpose of the proposed research is to highlight the factors that affect the customers’ buying attitudes towards handheld electronic devices in UK. The author has used deductive research approach during this research. The author designed 20 hypotheses after a review of theories and in order to test these, a detailed questionnaire was designed. The compiled results have been analyses using regression analysis and ch-square test.

The findings suggest that There is a strong impact of culture, product price and product features on customers’ buying behaviours towards hand held electronic devices. Customers with more age are influenced due to culture, product features, additional product features and technical product features while more males are influences by product features, technical features, advertisements and celebrity endorsement in advertisements. Acknowledgments The author has conducted this research as a compulsory part of the final degree of Bachelors of Arts in Business Studies.

The author is extremely thankful to all those who showed their encouraging cooperation. In this regard, Mr. ======== ===== has shown his great cooperation during this study. The author is also thankful to all the customers in United Kingdom who actively participated in the surveys. Finally, the author is thankful to his friends Zia and Ali who showed their great support by guiding about different statistical tools used in this study. Dedicated to My Family Contents Chapter 1: Introduction10 1. 1. Background10 1. 2. Significance and Motivation for Research11 1. 3. Overall Purpose and Objectives12 1. 4. Summary of Report12

Chapter 2: Literature Review14 2. 1. Market Segmentation, market Targeting and Positioning14 2. 2. Customer Buying Attitudes and Behaviours15 2. 3. Factors affecting Customer Buying Attitudes and Behaviours16 2. 3. 1. Culture16 2. 3. 2. Customer Demographics17 2. 3. 3. Service Quality Features19 2. 3. 4. Advertisements19 2. 3. 5. Features of Products and Services20 2. 3. 6. Economic Effects22 2. 4. Emerging Issues and Research Hypotheses22 Chapter 3: Research Methods29 3. 1. Research Philosophy: Positivism vs. Phenomenology29 3. 2. Research Approach: Deductive vs. Inductive29 3. 3. Data Collection Methods: Qualitative vs.

Quantitative30 3. 4. Research Methods30 3. 5. Sampling31 3. 6. Data Analysis31 3. 7. Limitations on Research33 3. 8. Research Ethics33 Chapter 4: Empirical Data Findings34 4. 1. Customers’ Gender34 4. 2. Customers’ Age35 4. 3. Mostly Purchased Handheld Electronic Devices36 4. 4. Influenced by other Society Members37 4. 5. Influenced by Product Features (Shape, Colour and Design)38 4. 6. Influenced by Additional Product Features39 4. 7. Influenced by Technical Features in the Products40 4. 8. Influenced by Service Quality Features41 4. 9. Influenced by Product Price42 4. 10. Influenced by Advertisements43 4. 11.

Influenced by Celebrity Endorsement in Advertisements44 Chapter 5: Analysis of Data45 5. 1. Customers’ Age vs. Influence of Other Society Members45 5. 2. Customers’ Age vs. Price of Handheld Electronic Devices46 5. 3. Customers’ Age vs. Product Features (Shape, Colour and Design)47 5. 4. Customers’ Age vs. Additional Product Features48 5. 5. Customers’ Age vs. Technical Features49 5. 6. Customers’ Age vs. Advertisements50 5. 7. Customers’ Age vs. Celebrity Endorsement51 5. 8. Customers’ Gender vs. Influence of Society52 5. 9. Customers’ Gender vs. Price of Handheld Electronic Devices53 5. 10. Customers’ Gender vs.

Product Features (Shape, Colour and Design)54 5. 11. Customers’ Gender vs. Additional Product Features55 5. 12. Customers’ Gender vs. Technical Features56 5. 13. Customers’ Gender vs. Advertisements57 5. 14. Customers’ Gender vs. Celebrity Endorsement58 5. 15. Impact of Culture59 5. 16. Impact of Service Quality59 5. 17. Impact of Advertisements60 5. 18. Impact of Celebrities in Advertisements61 5. 19. Impact of Product Features61 5. 20. Impact of Product Price62 Chapter 6: Conclusions63 6. 1. Conclusions63 6. 1. 1. Hypothesis 1:63 6. 1. 2. Hypothesis 2:64 6. 1. 3. Hypothesis 3:64 6. 1. 4. Hypothesis 4:64 6. 1. 5. Hypothesis 5:65 6. . 6. Hypothesis 6:65 6. 1. 7. Hypothesis 7:65 6. 1. 8. Hypothesis 8:65 6. 1. 9. Hypothesis 9:66 6. 1. 10. Hypothesis 10:66 6. 1. 11. Hypothesis 11:66 6. 1. 12. Hypothesis 12:66 6. 1. 13. Hypothesis 13:67 6. 1. 14. Hypothesis 14:67 6. 1. 15. Hypothesis 15:67 6. 1. 16. Hypothesis 16:67 6. 1. 17. Hypothesis 17:68 6. 1. 18. Hypothesis 18:68 6. 1. 19. Hypothesis 19:68 6. 1. 20. Hypothesis 20:68 6. 2. Suggestions for Further Study69 References70 Appendix 1: Survey Questions75 Appendix 2: Chi-Square Figures79 List of Figures Figure 1: Customers’ Gender34 Figure 2: Customers’ Age35 Figure 3: Mostly Purchased Handheld Electronic Devices36

Figure 4: Influenced by Other Society Members37 Figure 5: Influenced by Product Features38 Figure 6: Influenced by Additional Product Features39 Figure 7: Influenced by Technical Features in the Products40 Figure 8: Influenced by Service Quality Features41 Figure 9: Influenced by Product Price42 Figure 10: Influenced by Advertisements43 Figure 11: Influenced by Celebrity Endorsement in Advertisements44 Figure 12: Customers’ Age vs. Influence of other Society Members45 Figure 13: Customers’ Age vs. Price of Handheld Electronic Devices46 Figure 14: Customers’ Age vs. Product Features47 Figure 15: Customers’ Age vs. Additional Product Features48

Figure 16: Customers’ Age vs. Technical Features49 Figure 17: Customers’ Age vs. Advertisements50 Figure 18: Customers’ Age vs. Celebrity Endorsement in Advertisements51 Figure 19: Customers’ Gender vs. Influence of other Society Members52 Figure 20: Customers’ Gender vs. Price of Handheld Electronic Devices53 Figure 21: Customers’ Gender vs. Product Features54 Figure 22: Customers’ Gender vs. Additional Product Features55 Figure 23: Customers’ Gender vs. Technical Features56 Figure 24: Customers’ Gender vs. Advertisements57 Figure 25: Customers’ Gender vs. Celebrity Endorsement in Advertisements58 Chapter 1: Introduction

In this chapter, the researcher has given a brief summary of background of customer buying behaviour when purchasing different products. Furthermore, the researcher has briefly summarized the significance and rationale of this study. In addition to this, the researcher has given the overall purpose and objectives of the proposed study. Finally, the researcher has given a brief summary of each chapter included in this report. 1. 1. Background The present world provides the customers with fascinating times. More and more new products are being launched by a number of companies and this trend is present in electronics sector as well.

Within the electronics sector, handheld electronic devices especially handsets are the most common products used by a big number of the customers across the globe. There is an increased need of new mobile phone services as this industry is shifting itself from 2nd generation handsets to 3rd generation handsets. In the coming days, handsets will not only be used for getting in touch with others through speaking but there will be an increased trend of using the handsets to access internet and a lot of other services such as Multimedia Messaging Service (Bradner, 2002).

In the last few years, cell phones have become a vital communication tool across different countries of the world. There has not been much research work done on the choice and motives of the customers before making their decision to buy the cell phones. There are a number of factors that should be considered during exploration of cell phone buying process. There are a number of microeconomic and macroeconomic conditions that play a key role in the development of cell phone market. Furthermore, these conditions also affect the choices and motives of the customers to buy cell phones (Gersthemier and Lupp, 2004).

Like other countries of the world, cell phone use has increased tremendously in UK in the last few years. According to figures provided by Ofcom (2007), the growth of cell phone market in UK was reported as 41. 3% from 2003 to 2007. The growth in handheld electronic devices is not just restricted to cell phone. A big numbers of customers use a number of different handheld devices such as digital radio, MP3/MP4 Player, iPod etc. According to a recent report, published by Ofcom (2010), 31% people in UK use digital radio and 52% use MP3/MP4 and iPods in UK which is the second after Italy.

The figures suggest that there is a significant increase in the number of customers using handheld electronic devices. Anderson et al. (2005) stated that customer behaviour research explains the steps used by customers in selecting, securing, using and disposing of different products and services that usually play a vital part in fulfilling their needs. They argued that a sound understanding of customer buying behaviour directly affects the marketing strategy of a business. Winer (2000) argued that basic idea behind every successful marketing strategy is to understand the needs and preferences of the target customers.

Solomon (2002) argued that customers’ needs can only be met if a business has full understanding about these needs. He further argued that understanding of the customer buying attitudes has a key role in a successful strategic marketing plan. This research will explore the factors that affect the customers’ attitudes when buying handheld electronic devices in UK. 1. 2. Significance and Motivation for Research Mowen and Minor (2001) argued that a solid understanding of customers’ buying attitudes the key factors affecting the consumption of different products have numerous benefits for market researchers and marketers.

They further argued that this knowledge helps the businesses to align their marketing plans according to the requirements of their target consumers. They further argued that best marketing strategies can only be developed if the marketers get very close to the knowledge that affects the customers’ attitudes in buying different products. Similarly, Hawkins et al. (2003) argued that recognizing the customer buying behaviours is a vital factor in the success of any marketing strategic plan.

Furthermore, Schiffman and Kanuk (2000) argued that understanding of customer buying behaviour is a vital tool to divide the market into different segments and focus on each segment according to its behaviours. Considering the above stated studies and the facts revealed in section 1. 1 about the growth of handheld electronic devices in UK, this study is important for the author as it will help the author to understand the customer buying behaviours of different consumers in UK and understand the key steps that can be used during the development of a strategic marketing plan. 1. 3. Overall Purpose and Objectives

The overall purpose of the proposed research is to highlight the factors that affect the customers’ buying attitudes towards handheld electronic devices in UK. The objectives of this study are; * To explore the cultural impacts on the customers’ buying attitudes towards handheld electronic devices in UK * To explore the impact of demographics on the customers’ buying attitudes towards handheld electronic devices in UK * To explore the impact of product features, service quality, economic factors and advertisements on the customers’ buying attitudes towards handheld electronic devices in UK 1. 4.

Summary of Report A brief summary of different chapters included in this report is given below; Chapter 2: Literature Review In this chapter, the researcher has given a brief introduction to different terms such as customer attitudes and behaviours. Furthermore, the researcher has reviewed some theories highlighting the factors affecting customers’ attitudes in buying different handheld electronic devices. These factors include culture, product price, product features, product design and shape, customers’ demographics, service quality offered by the service providers and advertisements to attract the customers.

On the basis of all these theories, the author has moved forward towards the next stage of this research with the design of different research hypotheses which have been given in the last section of this chapter. Chapter 3: Research Methods In this chapter, the researcher has given a brief introduction to research methods that have been used during this research. It includes a brief introduction to different research philosophies, approaches, data collection approaches and what author has used in this research.

Chapter 4: Empirical Data Findings In this chapter, the researcher has shown the compiled results of surveys conducted with different customers in different cities of UK. First of all, the author has displayed and described the results about customers’ demographic features including customers’ age and gender. It is followed by different questions regarding customers’ buying behaviours towards handheld electronic devices. All the questions have been designed with intent to answer the designed research hypotheses.

The author has shown the compiled results in pie charts and given a detailed interpretation of each pie chart. Chapter 5: Analysis of Data In this chapter, the researcher has analysed the data displayed in previous chapter. The basic intent of this analysis is to test the designed hypotheses with the help of different statistical tools. The author has used linear regression to analyse the extent of relationship between different variables. Chapter 6: Conclusions In this chapter, the researcher has summarised the conclusions of this study.

The researcher has briefly explained the results of different tests carried on to test the designed hypotheses. Finally, the researcher has compiled few recommendations for further research. Chapter 2: Literature Review In this chapter, the researcher has given a brief introduction to different terms such as customer attitudes and behaviours. Furthermore, the researcher has reviewed some theories highlighting the factors affecting customers’ attitudes in buying different handheld electronic devices.

These factors include culture, product price, product features, product design and shape, customers’ demographics, service quality offered by the service providers and advertisements to attract the customers. On the basis of all these theories, the author has moved forward towards the next stage of this research with the design of different research hypotheses which have been given in the last section of this chapter. 2. 1. Market Segmentation, market Targeting and Positioning According to Lamb et al. (2006), every society is comprised of numerous small subgroups or segments of different types of customers.

They argue that each of this market segments has different characteristics and usually most of the customers in each segment have more or less similar needs and preferences. They state that segmentation is a process in which marketing managers divide their market into small but purposeful segments. They further argue that the process of segmentation is a very important step for a business to succeed in the market. According to Singh (2009), marketing managers target each market segment which is the implementation of a designed marketing plan.

He argues that in order to implement a designed marketing plan, different marketing segments can be targeted by the marketing managers of a business. He further argues that a marketing manager needs to carefully select which marketing segments can provide with the maximum benefits in the market and accordingly chose the most important market segments to target and implement the designed marketing plans in that market segment. Hiebing and Cooper (2003) point out that positioning is a process in which a marketing manager attempts to create product image in the customers’ minds.

They argue that this process is very important for business success as a good product image in the customers’ minds will attract them more towards the product. They further argue that the entire process of market positioning can help a business improve its brand image which is a vital tool for the success of a business in the market. 2. 2. Customer Buying Attitudes and Behaviours Customer buying behaviour is a study of a number of different processes used by individuals to buy. Use and dispose off any products and services. This process is very important in the designing of a successful strategic marketing plan.

The marketing managers aware of the customers buying behaviours will most likely be making such products which can meet the customers’ needs (Arnould et al. , 2002). Jobber and Fahy (2006) argued that understanding of different attitudes of customers is very important for the marketers. They further argued that marketers should be aware about their potential customers, their choices and preferences and how, where, when and which products do they prefer to buy. All this process will lead to a successful customer oriented marketing approach which will provide a business with competitive edge over its rivals (ibid).

Jobber (2007) stated that there are five major stages in customers’ decision making process. According to him, first stage is recognition of needs, second stage is search for information, third stage is evaluating the substitute choices in the market, fourth stage is making buying decision and the final stage is evaluating the product after purchase. Arnould et al. (2002) argued that a business can only be successful in the market if its marketers understand all above stated stages as it is vital for making a strategic marketing plan.

They further argues that customers’ needs should be the key focus of the marketing managers and the entire marketing mix should be revolving around the customers’ preferences and their needs as it can lead to highly satisfied and loyal customers. 2. 3. Factors affecting Customer Buying Attitudes and Behaviours There are a number of factors highlighted by different researchers that affect customers’ buying attitudes and behaviours. This section gives a detailed overview of these factors. 2. 4. 1. Culture

A big number of researchers in past used Hofstede’s cultural framework to explore the impact of culture on customers’ buying attitudes and behaviours. Most of these researchers evidenced that there is a significant role of culture on customers’ buying attitudes and behaviours. In this regard, Kimberly et al. (1995) evidenced that culture of any country has a great impact on the choices and preferences of the customers to purchase and products and services. Similar evidences have been provided by Roth (1995), Straub et al. (1997), Heine and Lehman (1997), Lee and Kacen (2008), Choi and Geistfeld (2004) and Page (2005).

Peter and Donnelly (2003) point out three different factors that set the cultural values in any society of the world. They argue that family, religion and occupation are the basic factors that set the cultural values. They suggest that any marketing plan should consider all these factors before launching in new product in the markets as without doing so, culture can become a big hurdle in the way of the success of a new product. According to Moiij (2009), there is significant role of culture in customers buying behaviours. He points out that most of the people are influenced from different people in the society they live in.

He argues that most of the people watch others in the society and accordingly make their purchase mind. On the other hand, McGuigan (2005), there is not much evidence about the impact of culture on the customers’ decision to purchase the handheld electronic devices such as cell phones. In order to explore the customers’ buying behaviours towards handheld electronic devices such as mobile phones Weilenman and Larsson (2001) carried on a survey with different youngsters in Sweden. The findings suggested that majority of the youngsters in Sweden make use of mobile phones in order to interact with different persons in the society.

The findings further suggested that majority of the youngsters don’t need the handheld devices such as mobile phones but due to increased use of these devises in the market, they purchase the products. Srikes et al. (2009) carried on their research to explore the customers’ buying behaviours towards handheld electronic devices in United Kingdom. They aimed to explore the impact of culture on purchase decisions made by different customers in United Kingdom. The findings suggested that majority of the cell phone users in United Kingdom make individual decisions i. e. they wish to be unique from others.

Majority of the participants in their surveys stated that they wish to purchase such cell phones which are not very common in the society. Furthermore, most of the cell phone users stated that basic intent behind cell phone purchase is to interact with other members of the society. 2. 4. 2. Customer Demographics A big number of researchers in past evidenced that customers’ demographics have a vital role in variable buying attitudes and behaviours. The literature evidences that gender, age, occupation, education and ethnicity of the customers has a key role in changing the customers buying behaviours.

In this regard, Talloo (2007) evidenced that age and gender of the customers significantly affects their buying behaviours. He carried on his study to explore the impact of different customer demographics on their buying behaviours towards different products including handheld electronic devices. He evidenced through his study that young customers have significantly different behaviour as compared to aged customers as the young customers attempt to adopt the latest technology and they are not concerned about product price.

Wilska (2003) carried on his research in Finland to explore the impact of different customer demographics on their buying behaviour towards different electronics devices especially cell phones. His major emphasis was on the impacts of customers’ gender and age groups on their buying behaviours towards cell phones in Finland. He collected data through a random survey including people from all age groups and both the genders. The findings suggested that most of the male customers look for different technical features before making any decision to purchase the cell phones in Finland.

He further evidenced that female customers in Finland mostly have addictive attitudes towards buying the cell phones i. e. they prefer to purchase the handsets with similar designs, colours and shape etc. He further evidenced that hot selling cell phones in Finland are usually purchased by male customers. The findings of his study further suggested that young customers in Finland mostly change the handsets more frequently as compared to aged customers. Customers’ buying behaviours towards different handheld devices has been carried out in most of the parts of the world as evident from the studies cited in previous sections.

Most of these studies were aimed to explore the customers’ buying behaviours towards cell phones. Another study was carried on by Turel and Serenko (2006) in Canada to explore the consumers’ buying attitudes and behaviours towards cell phones and their loyalties with the service providers. The major objective of this study was to explore if age has any impact on consumers’ buying attitudes and behaviours towards cell phones in Canada. The findings suggested that with an increase in age, consumers’ loyalty with the service providers increases as most of the youngsters in Canada carry on switching between different services providers.

In order to explore the impacts of different factors on customers’ buying behaviours towards different cell phones, Singh (2009) carried on his study in India. He aimed to explore the impacts of customers’ demographics, price and technical features on customers’ decisions to purchase cell phones in India. The findings of his study suggested that majority of the youngsters in India are not concerned about the price of cell phones as they were willing to buy a good handset any price.

The findings further suggested that customers become more concerned about the price of cell phones with an increase in their age and they also look for different technical features in the cell phones as well. Most of the customers who were concerned about cell phone prices and technical features were above 50 years of age. The findings further suggested the there were not much differences between the buying attitudes of males and females in India as their attitudes and behaviours only changed with a change in their age groups. 2. 4. 3. Service Quality Features

Many researchers in past have evidenced through their studies that service quality offered by the service providers has a big role in attracting the customers towards purchasing its products. In this regard Seo et al. (2007) carried in their research in cell phone industry. They aimed to explore different factors that not only retain the existing customers but also play a key role in attracting new customers as well. The findings of their study suggested that the businesses offering good quality services to their customers are more likely to retain and attract the new customers towards their products.

Li and Yeh (2008) carried on their study to explore the impacts of service quality on customers buying behaviours towards the cell phones. They findings of their study suggested a strong positive link between service quality and customers’ positive behaviours towards buying the cell phones. They evidenced that the service providers who offer good services to their customers not only retain them but it also helps in attracting the new customers as well as the existing customers give a positive word o mouth about the company.

In order to explore the impacts of service quality on customers’ buying behaviours, Kim and Sugai (2008) carried on their research. Data was collected through surveys with customers of different age groups and genders. The findings of their study suggested that the service providers updating their customers regularly through different offers are usually successful in retaining the customers and it also leads to attract the new customers as well. 2. 4. 4. Advertisements A big number of researchers in past evidenced that advertisements have a vital role in variable buying attitudes and behaviours.

Baker (2001) argues that a business can improve its brand image in the market by using strong advertisements. He further argues that advertisements play a vital role in attracting the customers towards the products sold by an organisation. He points out that featuring celebrities and sports stars can help the businesses to promote their products in the market. In order to explore the impacts of advertisements on customers’ buying behaviours towards cell phones, Merisavo et al. (2006) carried on their study. Data was collected through surveys with different customers of different age groups and genders.

The findings of their study suggested that advertisements have a key role in attracting the customers especially the young customers are attracted towards such advertisements which feature celebrities and sports starts. In order to explore the impacts of celebrity endorsement on customers’ buying behaviours towards cell phones, Cummings (2007) carried on their research. He evidenced that celebrity endorsement can significantly improve the brand image of cell phones. He further evidenced that celebrities should be endorsed in the advertisements after considering the preferences of different regions. . 4. 5. Features of Products and Services A big number of researchers in past evidenced that different product features of electronics products including handheld devices such as cell phones has a key role in different buying behaviours of the customers. This sub-section cites some of the empirical studies highlighting the impact of different product and service features on customers’ buying behaviours in different parts of the world. Singh (2009) points out that basic reason behind the invention of cell phones was to use them as a useful tool to communicate with others from anywhere.

As the time progressed, cell phones became a source of entertainment as well as different features such as Wi-Fi, radio; MP3 and Bluetooth were also added in the cell phones. Furthermore, in the recent years, cell phones have been increasingly used as satellite navigation devices as well. These dramatic changes in the product features have significantly changed the customers’ priorities towards the purchase of cell phones. A big number of the customers prefer to purchase such products which have most of these features as it gives them an opportunity to use all these services in one device.

The most critical feature considered by the customers before making a purchase of cell phones is camera as majority of the customers look for good quality cameras (ibid). The increased use of numerous product features in the handheld electronic devices especially in the case of cell phones has attracted numerous researchers to select this area as a major focus of their research. Liu et al. (2008) carried on their study to explore the trends of different customers towards the cell phones making use of modern technologies and having different new features such as Wi-Fi, MP3, camera and Bluetooth.

The findings of their study suggested that majority of the customers wish to purchase such cell phones which have high quality added features such as high pixel cameras, MP3 and Bluetooth. In order to explore the customers trends towards buying the cell phones having different additional features, Chen et al. (2008) carried on their research. In addition to the impact of these addition features added in the cell phones, they intended to explore the impact of advertisements of such cell phones on the customers’ purchase decisions.

Data was collected through a survey with people belonging to both the genders and different age groups. The findings suggested that majority of the customers prefer to purchase such handsets which have high specification built in cameras in the handsets. They findings further suggested that attractive advertisements have a big role in promoting such cell phones as well. Lin and Liu (2009) carried on their research in order to explore the customers’ trends towards buying the cell phones having different additional features.

They findings suggested that majority of the customers wish to purchase such cell phones which have video call features. They argued that addition of so many new features have significantly changed the customers’ trends towards purchasing the cell phones. They point out that video calling is the key feature that most of the youngsters look for but in the case of older people, price of video calling becomes a big constraint. Jung et al. (2009) carried on their study in order to explore the customers’ trends towards buying the cell phones having different additional features.

Data was collected through surveys from different customers belonging to both the genders and different age groups. They evidence that majority of the customers in their research preferred to purchase such cell phones which had Mobile TV applications. 2. 4. 6. Economic Effects Researchers in past have evidenced through their research work that many customers are concerned about the price of electronics products before making a purchase decision. In this regard, Bidgoli (2004) stated that majority of the customers in the market are attracted towards good quality products if the price of these products is reasonably low.

He further stated that while selling the handheld electronic devices such as cell phones, it is vital for the marketers to keep the prices comparatively lower. Brike and Swann (2005) carried on their research in United Kingdom to explore the impacts of product price on customers’ buying behaviours towards different electronics products. The targeted customers were mostly students studying in University of Nottingham and data was collected through surveys. The findings suggested that majority of the customers prefer to receive incentives from the service providers such as free minutes etc. . 4. Emerging Issues and Research Hypotheses The intent to carry of detailed review of previous studies was to develop a deep understanding about different factors that affect customers buying behaviours towards different handheld electronic devices. The author reviewed a number of empirical studies to understand the topic and develop a basis for primary data collection of this research. On the basis of reviewed theories, some of the issues have emerged and on the basis of these issues, the author has designed research hypotheses of this study.

Emerging issues and research hypotheses have been discussed below; Customer Demographics A big number of researchers in past evidenced that customers’ demographics have a vital role in variable buying attitudes and behaviours. Wilska (2003), Talloo (2007), Turel and Serenko (2006) and Singh (2009) evidenced through their studies that age and gender of the customers significantly affects their buying behaviours. All of these studies were conducted in different parts of the world as stated in previous sections of this report.

On the basis of these theories, different research hypotheses and null hypotheses related to the impacts of customers demographics on their buying behaviours towards handheld electronic devices have been given is as below; H1: Customers with more age are influenced by other society members before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H1o: Customers with more age are not influenced by other society members before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK.

H2: Customers with more age are more concerned about product price before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H2o: Customers with more age are not more concerned about product price before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H3: Customers with lesser age are attracted more towards product design and colour before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK.

H3o: Customers with lesser age are not attracted more towards product design and colour before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H4: Customers with lesser age are attracted more towards additional features before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H4o: Customers with lesser age are not attracted more towards additional features before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK.

H5: Customers with more age look for different technical features before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H5o: Customers with more age do not look for different technical features before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H6: Customers with lesser age are attracted more towards advertisements before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK.

H6o: Customers with lesser age are not attracted more towards advertisements before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H7: Customers with lesser age are attracted more towards celebrity endorsement before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H7o: Customers with lesser age are not attracted more towards celebrity endorsement before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK.

H8: Male customers are more influenced by other society members before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H8o: Male customers are not more influenced by other society members before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H9: Male customers are more concerned about product price before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK.

H9o: Male customers are not more concerned about product price before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H10: Male customers are attracted more towards product shape, design and colour before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H10o: Male customers are not attracted more towards product shape, design and colour before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK.

H11: Male customers are attracted more towards additional features before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H11o: Male customers are not attracted more towards additional features before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H12: Male customers look for different technical features before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK.

H12o: Male customers do not look for different technical features before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H13: Male customers are attracted more towards advertisements before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H13o: Male customers are not attracted more towards advertisements before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK.

H14: Male customers are attracted more towards celebrity endorsement before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H14o: Male customers are not attracted more towards celebrity endorsement before buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. These research hypotheses have been tested by designing a few research questions in the surveys conducted with different customers in different cities of United Kingdom. Culture Kimberly et al. (1995) evidenced that culture of any country has a great mpact on the choices and preferences of the customers to purchase and products and services. Similar evidences have been provided by Roth (1995), Straub et al. (1997), Heine and Lehman (1997), Lee and Kacen (2008), Choi and Geistfeld (2004), Page (2005), Peter and Donnelly (2003), Moiij (2009), Weilenman and Larsson (2001) and Srikes et al. (2009). On the basis of these theories, first research hypothesis and null hypothesis is as below; H15: Culture of United Kingdom has a big impact on customers’ buying behaviours towards handheld electronic devices such as cell phone, cameras, MP3 Players and iPods.

H15o: Culture of United Kingdom has no impact on customers’ buying behaviours towards handheld electronic devices such as cell phone, cameras, MP3 Players and iPods. This research hypothesis has been tested by designing a few research questions in the surveys conducted with different customers in different cities of United Kingdom. Service Quality Many researchers in past such as Seo et al. (2007), Li and Yeh (2008) and Sugai (2008) have evidenced through their studies that service quality offered by the service providers has a big role in attracting the customers towards purchasing its products.

On the basis of these theories, different research hypothesis and null hypothesis related to the impacts of service quality on their buying behaviours towards handheld electronic devices have been given is as below; H16: Service quality offered by a business has a key role in customers’ positive behaviours towards buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H16o: Service quality offered by a business has no role in customers’ positive behaviours towards buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK.

This research hypothesis has been tested by designing a few research questions in the surveys conducted with different customers in different cities of United Kingdom. Advertisements A big number of researchers in past such as Baker (2001), Merisavo et al. (2006) and Cummings (2007) evidenced that advertisements have a vital role in variable buying attitudes and behaviours. They further evidenced that endorsement of celebrities in advertisements also leads to customers’ positive behaviours towards buying different products.

On the basis of these theories, different research hypotheses and null hypotheses related to the impacts of advertisements on their buying behaviours towards handheld electronic devices have been given is as below; H17: Advertisements have a key role in customers’ positive behaviours towards buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H17o: Advertisements have no role in customers’ positive behaviours towards buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK.

H18: Celebrity endorsement has a key role in customers’ positive behaviours towards buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H18o: Celebrity endorsement does has no role in customers’ positive behaviours towards buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. These research hypotheses have been tested by designing a few research questions in the surveys conducted with different customers in different cities of United Kingdom. Features of Products

A big number of researchers in past such as Liu et al. (2008), Chen et al. (2008), Lin and Liu (2009), Jung et al. (2009) and Singh (2009), evidenced that different product features of electronics products including handheld devices such as cell phones has a key role in different buying behaviours of the customers. On the basis of these theories, research hypothesis and null hypothesis related to the impacts of features of products and services on their buying behaviours towards handheld electronic devices have been given is as below;

H19: Different features of products (shape, design and colour) have a key role in customers’ positive behaviours towards buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. H19o: Different features of products (shape, design and colour) do not have a key role in customers’ positive behaviours towards buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. This research hypothesis has been tested by designing a few research questions in the surveys conducted with different customers in different cities of United Kingdom. Economic Effects

Researchers in past such as Bidgoli (2004), Brike and Swann (2005) have evidenced through their research work that many customers are concerned about the price of electronics products before making a purchase decision. On the basis of these theories, different research hypotheses and null hypotheses related to the impacts of economic aspects of products on their buying behaviours towards handheld electronic devices have been given is as below; H20: Economical products have a key role in customers’ positive behaviours towards buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK.

H20o: Economical products have no role in customers’ positive behaviours towards buying handheld electronic devices such as cell phone, cameras, MP3 Players and iPods in UK. This research hypothesis has been tested by designing a few research questions in the surveys conducted with different customers in different cities of United Kingdom. Chapter 3: Research Methods In this chapter, the researcher has given a brief introduction to research methods that have been used during this research. It includes a brief introduction to different research philosophies, approaches, data collection approaches and what author has used in this research. . 1. Research Philosophy: Positivism vs. Phenomenology Selection of research philosophy is the key to achievement of objectives in any research. With the selection of an appropriate research philosophy, a researcher can successfully answer the designed research questions (Saunders et al. , 2007). Positivism uses quantitative approach and aims at collecting objective information from the respondents. Deductive research approach is most appropriate while using positivism. Phenomenology uses qualitative approach and aims to collect subjective information.

Inductive research approach is most appropriate while using phenomenology (Proctor, 2003). The author aimed to collect objective information from different customers in UK about their different attitudes and behaviours; hence the research philosophy in this research is positivism using quantitative research approach for data collection. 3. 2. Research Approach: Deductive vs. Inductive Deductive research approach starts with wider review of different theories and formation of research hypotheses on the basis of these theories which can be tested by analysing the collected data.

On the other hand, inductive approach starts from wider observations and develops theories (Saunders et al. , 2007). The author used positivism research philosophy during this research which suggests that the most appropriate research approach is deductive hence; the research approach is deductive. On the basis of detailed review of different theories about customer buying attitudes and behaviours, the author designed few hypotheses of research. In the next phase, the author collected data through surveys with different customers and compiling the results to test the designed hypotheses. . 3. Data Collection Methods: Qualitative vs. Quantitative The use of phenomenological style leads the researchers towards the use of inductive approach which leads to the use of qualitative data collection. Data in this approach is collected through subjective meanings and this approach is best suited to get in-depth information from limited number of people. This approach is also useful to answer the how and why research questions and interviews are the best tool to collect data. This approach leads to more descriptive analysis.

The use of positivism style leads the researchers towards the use of deductive approach which leads to the use of quantitative data collection. Data in this approach is collected through objective meanings and this approach is best suited to get brief information from big number of people. This approach is also useful to answer what research questions and surveys are the best tool to collect data. This approach uses statistical methods to analyse the results (Saunders et al. , 2007).

The author used positivism research philosophy during this research which suggests that the most appropriate research approach is deductive hence; the research approach is deductive. It further led to the selecting of quantitative approach to collect data as the author aimed to get the opinion of a large number of respondents. 3. 4. Research Methods First hand data is called primary and second hand data is called secondary. Primary data can be collected through interviews, questionnaires, observations, case studies, published reports. Secondary data is available in different published resources such as books, internet and journals.

Appropriate secondary data is very economical and saves time however; too old data and data published in unreliable sources cannot provide a researcher with the desired results (Saunders et al. , 2003). The author intended to collect primary data only that has been collected through surveys with different customers as according to Crossan (2004) surveys are the best source of data collection when using deductive research approach. He further argued that survey results can be compiled and analysed in an appropriate manner to test the designed hypotheses of a research. . 5. Sampling Sampling is the biggest issue during quantitative data collection. The most critical phase during a research is sample selection. In order to achieve the best possible results, a researcher should ensure that he/she selects such sample that can reflect the opinion of larger population. In the absence of appropriate sample selection, authenticity of results is severely affected (Saunders et al. , 2003). The author has used random sampling during this research. The designed survey questions were randomly distributed to different customers.

First of all, the author emailed the questions to all of his personal contacts which included people from all age groups and gender. Furthermore, the author distributed some questionnaires in person in few areas of London and Birmingham. The author attempted his level best to involve people from both the genders and all age groups in the surveys in order to test most of the designed hypotheses. The author received 139 filled forms out of which 21 were voided due to some ambiguities and the final sample uses 118 filled forms. 3. 6. Data Analysis In order to test the designed hypotheses, it is vital to use effective data analysis methods.

Quantitative data can be analysed by using a number of statistical methods such as regression, standard error, t-test etc. By using these tools, a researcher can find out the strength of relationship between different variable. While in qualitative data, the compiled and displayed results are compared with theory (Saunders et al. , 2007). In order to analyse the collected data, the author has used two different statistical tools. Customers’ demographics related hypotheses have been tested with the help of linear regression and other hypotheses have been tested using chi-square test.

In order to analyse customers’ demographics related hypotheses, the author assigned fictitious numbers to different demographics such as 1 for male and 2 for female. Similarly in the case of customers’ age, 1 was assigned to 16 to 20 years, 2 was assigned to 21 to 30 years, 3 was assigned to 31 to 40 years, 4 was assigned to 41 to 50 years and 5 was assigned to above 50 years. All these numbers were plotted against different customers’ behaviours such as in the case of impact of society on customers’ buying behaviours, the author sorted the forms according to both the genders and alculated the percentage of both males and females who are influenced by society before purchasing handheld electronic devices in UK. This percentage was taken as Y variable and fictitious numbers assigned to both the genders (1 and 2) were taken as X variable. Both the variables were plotted on XY scatter chart in MS Excel and regression line was added with regression equation and R-square value. The regression equation provided with the relationship and R-square value provided with the extent of relationship. R-square value above 0. 5 was taken as strong relationship and the value below than 0. was taken as weak relationship. Similar procedure was repeated for all other customers’ demographic related hypotheses. In order to test hypothesis 15 to 20, the author used Chi-square test. Stokes et al. (2006) has given the formula to calculate chi-square value which has been given below; Chi Square = (O-E) ? E Where O is total number of participants and E is mean value of the final sample. Stokes et al. (2006) pointed out two major parameters that can be used by the researchers to analyse the calculated value of chi-square and test the designed hypotheses.

First parameter is called alpha value and second parameter is called df value. With the help of these values, expected value of chi-square is selected from chi-square table (attached in Appendix 2). The designed hypothesis is accepted if the calculated value exceeds expected value otherwise it is rejected (ibid). The df value for this research has been taken as 1 and alpha value has been taken as 0. 05 which provided expected value as 3. 841 from the table. All the hypotheses from 15 to 20 have been tested by comparing the calculated values with expected value. 3. 7. Limitations on Research

This research uses surveys as the only source of data collection. The author perceives that use of interviews with different retailers and focus group interviews with different customers could provide detailed information about customers’ buying behaviours towards handheld electronic devices in UK. The author has collected data only within two major cities of UK. In addition to this, only a few areas in both the cities were used to distribute questionnaires. The author perceives that involvement on only two cities in this research does not give a true picture of customers’ buying behaviours towards handheld electronic devices.

Furthermore, the author believes that carrying on a pilot study before the start of actual research could increase the reliability of this research but it was not possible due to limited time availability. 3. 8. Research Ethics The author has collected information from the end users of handheld electronic devices and none of the information has been collected from retailers hence there were no confidentiality issues involved in this research. In order to ensure the anonymity, the author did not collect personal information of the customers during this research.

In addition to this, all the customers were assured that their email addresses will not be forwarded if the questionnaires are sent back via email. Chapter 4: Empirical Data Findings In this chapter, the researcher has shown the compiled results of surveys conducted with different customers in different cities of UK. First of all, the author has displayed and described the results about customers’ demographic features including customers’ age and gender. It is followed by different questions regarding customers’ buying behaviours towards handheld electronic devices.

All the questions have been designed with intent to answer the designed research hypotheses. The author has shown the compiled results in pie charts and given a detailed interpretation of each pie chart. 4. 1. Customers’ Gender Figure 1: Customers’ Gender Before conducting this survey, the author aimed to involve the customers from both genders as it was very important to test the designed research hypotheses. The author emailed all of his contacts which included both males and females and received a good response from both the genders.

In addition to this, the author conducted the surveys in person and approached both the genders in busy high streets of London and Birmingham. It helped the author to receive a reasonable response from both the genders and in the final sample; the author had 64% males and 34% females. This sample has been used to analyse against different attitudes in order to answer gender related hypotheses of this research. 4. 2. Customers’ Age Figure 2: Customers’ Age Before conducting this survey, the author aimed to involve the customers from all age groups as it was very important to test the designed research hypotheses.

The author emailed all of his contacts which included all age groups and received a good response from all age groups. In addition to this, the author conducted the surveys in person and approached people from all age groups in busy high streets of London and Birmingham. It helped the author to receive a reasonable response from all the age groups and in the final sample; the author had 27% customers from 16-20, 21% from 21-30, 22% from 31-40, 15% from 41-50 and 15% were above 50. This sample has been used to analyse against different attitudes in order to answer age related hypotheses of this research. . 3. Mostly Purchased Handheld Electronic Devices Figure 3: Mostly Purchased Handheld Electronic Devices In order to explore the mostly purchased handheld electronic devices in United Kingdom, the author included this question in the survey questionnaire distributed to the customers. Majority of the customers in United Kingdom (74%) purchase cell phones most frequently. Other electronic devices are not purchased very frequently as only 9% of the customers in United Kingdom purchase iPods, 6% purchase cameras, 8% purchase MP3/MP4 players and 3% purchase digital radios.

The cumulative percentage of all the devices is lesser than the total percentage of the customers who mostly purchase cell phones in United Kingdom. 4. 4. Influenced by other Society Members Figure 4: Influenced by Other Society Members In order to explore the influence of society on different customers’ buying behaviours towards handheld electronic devices in United Kingdom, the author included this question in the survey questionnaire distributed to the customers. 20% of the customers strongly agreed that they are influenced by other society members before purchasing handheld electronic devices and 15% slightly agreed. % gave no opinion and 45% slightly disagreed that they are influenced by other society members before purchasing handheld electronic devices and 17% strongly disagreed that they are influenced by other society members before purchasing handheld electronic devices. The author has used the results of this question in next chapter to analyse against customers’ age and gender to explore the trends of getting influenced by others in the society in different customers’ demographics. 4. 5. Influenced by Product Features (Shape, Colour and Design) Figure 5: Influenced by Product Features

In order to explore the influence of product features on different customers’ buying behaviours towards handheld electronic devices in United Kingdom, the author included this question in the survey questionnaire distributed to the customers. 37% of the customers strongly agreed that they are influenced by different product features before purchasing handheld electronic devices and 23% slightly agreed. 3% gave no opinion and 18% slightly disagreed and 19% strongly disagreed that they are influenced by different product features before purchasing handheld electronic devices.

The author has used the results of this question in next chapter to analyse against customers’ age and gender to explore the trends of getting influenced by different product features in different customers’ demographics. 4. 6. Influenced by Additional Product Features Figure 6: Influenced by Additional Product Features In order to explore the influence of additional product features on different customers’ buying behaviours towards handheld electronic devices in United Kingdom, the author included this question in the survey questionnaire distributed to the customers. 5% of the customers strongly agreed that they are influenced by additional product features before purchasing handheld electronic devices and 10% slightly agreed. 3% gave no opinion and 33% slightly disagreed that they are influenced by additional product features before purchasing handheld electronic devices and 10% strongly disagreed that they are influenced by additional product features before purchasing handheld electronic devices.

The author has used the results of this question in next chapter to analyse against customers’ age and gender to explore the trends of getting influenced by additional product features in different customers’ demographics. 4. 7. Influenced by Technical Features in the Products Figure 7: Influenced by Technical Features in the Products In order to explore the influence of technical features on different customers’ buying behaviours towards handheld electronic devices in United Kingdom, the author included this question in the survey questionnaire distributed to the customers. 3% of the customers strongly agreed that they are influenced by technical features before purchasing handheld electronic devices and 20% slightly agreed. 5% gave no opinion and 18% slightly disagreed that they are influenced by technical features before purchasing handheld electronic devices and 4% strongly disagreed that they are influenced by technical features before purchasing handheld electronic devices. The author has used the results of this question in next chapter to analyse against customers’ age and gender to explore the trends of getting influenced by technical features in different customers’ demographics. . 8. Influenced by Service Quality Features Figure 8: Influenced by Service Quality Features In order to explore the influence of service quality features on different customers’ buying behaviours towards handheld electronic devices in United Kingdom, the author included this question in the survey questionnaire distributed to the customers. 36% of the customers strongly agreed that they are influenced by service quality features before purchasing handheld electronic devices and 19% slightly agreed. % gave no opinion and 30% slightly disagreed that they are influenced by service quality features before purchasing handheld electronic devices and 12% strongly disagreed that they are influenced by service quality features before purchasing handheld electronic devices. The author has used the results of this question in next chapter to analyse against customers’ age and gender to explore the trends of getting influenced by service quality features in different customers’ demographics. 4. 9. Influenced by Product Price Figure 9: Influenced by Product Price

In order to explore the influence of product price on different customers’ buying behaviours towards handheld electronic devices in United Kingdom, the author included this question in the survey questionnaire distributed to the customers. 62% of the customers strongly agreed that they are influenced by product price before purchasing handheld electronic devices and 19% slightly agreed. 2% gave no opinion and 8% slightly disagreed that they are influenced by product price before purchasing handheld electronic devices and 9% strongly disagreed that they are influenced by product price before purchasing handheld electronic devices.

The author has used the results of this question in next chapter to analyse against customers’ age and gender to explore the trends of getting influenced by product price in different customers’ demographics. 4. 10. Influenced by Advertisements Figure 10: Influenced by Advertisements In order to explore the influence of advertisements on different customers’ buying behaviours towards handheld electronic devices in United Kingdom, the author included this question in the survey questionnaire distributed to the customers. 8% of the customers strongly agreed that they are influenced by advertisements before purchasing handheld electronic devices and 19% slightly agreed. 5% gave no opinion and 32% slight

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