1

Factors that affect the purchase intention of smart phone buyers

Literature
review

Factors that affect the purchase intention of smart phone buyers

Rouhani, Fereshteh Raeis ; Hanzaee, Kambiz Heidarzade, (2012) examine the aftermaths of
the inquisition about analytical factors and brand acumen, to identify purchasing gravitation of
iranian costumers over Luxury Automobiles. The main intent of this conduct is to inquire iranian
consumers notions regarding their willingness over German made Mercedes Benz and Japanese
made Lexus luxury automobiles products. In the current article they have select five variables
perceptible, singularity, social, epicurean and Quality. Analyzer collects data from 73 defendants
using lucrative Spss and LISREL software for the evaluation of data. SPSS is used for
retrogression over available evidence. This research indicates a symbolic bond between monthly
family gains and purchasing objectives
(khna, Gauri, & Majeed, JULY 2012) examine the appulse of brand associated aspects to
extract out the intensity of purchasing from custumers. The study further inspect brand affiliated
elements such as (Brand knowledge, brand relationship, behavioral intention, brand
advertisement and past experience about the brand) on purchasing objectives of the consumers.
In this Article they have used five variables Brand knowledge, brand relationship, behavioral
intention, brand advertisement and past experiences. The researcher assembles data from from
620 defendants and apply correspondence test for final evaluation. The result of this Research is
that brand loyalty and brand knowledge has highly affirmative relation with purchasing habits of
customers
(Yih Wu, Kuan Lai, Jen Wu, & Su Fu, MAY 2012) Confer to inquire EXPLORING THE
INFLUENTIAL FACTORS TO THE PERCEIVED VALUE AND PURCHASE INTENTION
OF ONLINE LUCKY BAGS. The main intent of this conduct is to inquire preferable influence
on consumers on buying prefrences of Bags through reliable source of E-commerce. . In this
article they choose following variables bundling, perceived controllability, discount, hope and
perceived value. Researcher assembles the data from 794 defendants through internet as the
mean source and applies Axiom test through MANOVA. The evaluation shows that customers
could hardly rectify the exact content before purchasing.
(Moradi & Zarei, 2011) Confer The Impact of Brand Equity on Purchase Intention and Brand
Preference-the Moderating Effects of Country of Origin Image. The main lucrative objective of
this study is to delve the relationships among brand equity, the intensions for purchase and brand
preferment, through random sampling of young potential Iranian consumers. They choose two

Factors that affect the purchase intention of smart phone buyers

flexible brand preferments and brand equity. Researcher compiles the analysis from 602
defendants then conduct correlation analysis to extract out the potential bond between model
variables. The final evaluation shows that the brand equity overweight the influence over
consumers brand preference and purchasing intentions of consumers.
(Kamtarin, August 2012) confer on the topics "Effect of Electronic Word of Mouth, Trust and
Perceived Value on Behavioral Intention from the Perspective of Consumers". The sole objective
of this lucrative study is to extract out those factors that affects the formational Behavioral
Intentions of iranian consumers in the city of Isfahan. For this study many consideration were
brought up and following factors were determined such as, Behavioral Intention, electronic
word of mouth, perceived value and trust. Then the Researcher reconsile his results through the
mean source of 165 defendants of it. The process of data analysing was done through structural
equation modeling (SEM) supported by AMOS with maximum presumption assessment. Final
conclusion stated that some factors were in bond with behavioral intention formation. Moreover
Results did also point out beneficial acumen, which help understanding the factors that affect the
behavioral intention in internet shopping to a great extent.
(Karbala & Harimukti, 2012, Oct) confer on the matter in hand, analyzing the Factors that
affects the consumer purchasing intensions in Toimoi Store situated in Indonesia. The sole
concern for this research was to grindout the effectiveness of four Ps of Maketing Mix of Toimoi
store. Variables that were consider in this includes Product,Price, Place and Promotion. For the
purpose of research 160 questionnaire were filled by potential customers of the store. And to find
the affirmative result they enter the data in SPSS and apply crosstab analysis, Pearson correlation
analysis, regression analysis, and factor analysis. At the end, the research did conclude that the
design and new variations in existing products did have a huge impact on consumers purchasing
intensions
(Hanzaee & Taghipourian, 2012) confer on the matter in hand The Effects of Brand Credibility
and Prestige on Consumers Purchase Intention in Low and High Product Involvement. The sole
motive of this study was to appraise the effects of brand integrity and eminence on consumers
purchasing intensions under different levels of product range. Variables that were under taken
includes perceived value for money, Perceived quality, Perceived risk. Cost effectiveness of
information sums up moderating role between brand credibility prestige and purchasing

Factors that affect the purchase intention of smart phone buyers

intentions. The data was collected by 453 questionnaires that were distributed before the actual
findings were identified. Then Cronbach's alpha test was applied and hypotheses were tested
using structural equation modeling (SEM) via LISREL. The bond between brand crediblity and
brand prestige can vary high/low keeping in view of the degree of product involvement in it.
(Yasin & Shamim, (Jan. - Feb. 2013)) confer on the topic Brand Love consiliating role in
purchasing Intentions and Word-of-Mouth . one of two main aspiration of this research was to
rectify the level of impact on brand experience, brand trust and affective commitment on
purchasing intentions. Second was to check out the intervening role of brand love in bond of
puchasing intensions and Word of Mouth. The research data was collected through the median of
265 cell phone customers from Islamabad and Rawalpindi cities of the Islamic Republic of
Pakistan. For the mean of accurate result the data was analyzed in SPSS 15.0 where correlation
and Regression analyses were performed. The results clearly demonstrated that brand
acquaintances, brand trust and affective commitment have a high range of positive impacts on
purchasing intensions of consumers. So conclusively brand love did have a partial impact on the
bond of purchasing intensions and the word of mouth.
(Hussain Shah, et al., 2012) confer on the topic The Level of Intensity of brands on consumers
purchasing intensions. The sole motive for this conduct was to assimilate the core of brand
image,brand attitude and brand attachment with environmental barriers to identify the level of
impact on consumers on their purchasing intensions. The consideration of variables for this
Research was brand attitude, brand attachment, core brand image, environmental consequences,
and purchasing intentions. Researchers carried the data from 150 defendants in the district area
of Satellite town and Chaklala Scheme III Rawalpindi in Pakistan. And for the
authenticity,findings of assembled data was checked through Cronch Batch Alpha. So as a final
conclusion the evaluation stated that the smokers situated in the district of Rawalpindi
purchasing intensions were being effected by brand image & their approach towards PTC brands.
Moreover, Envoirnmental barriers were not taken into considerations
(Wen Fan & Feng Miao, 2012) they discuss on the topic EFFECT OF ELECTRONIC WORDOF-MOUTH ON CONSUMER PURCHASE INTENTION THE PERSPECTIVE OF GENDER
DIFFERENCES. This study investigates social factors, personal attributes, and cultural factors
that can affect use and acceptance of eWOM. The study shows that gender differences affect use

Factors that affect the purchase intention of smart phone buyers

and acceptance of eWOM and purchasing decisions. In this article they select following variables
social factors, personal attributes, and cultural factors. Researcher collect required data fron 116
customer concerning their eWOM experiences for the purpose of findings data is entered in
SPSS 12.0 was used to complete a multiple regression analysis of the survey results.Study results
showed that eWOM acceptance had a significant effect on intent to purchase for both male
customers and female customers. However, eWOM acceptance had a smaller effect on intent to
purchase for female customers
(Chang & Chin, 2010) they discuss on the topic The Impact of Recommendation Sources on
Online Purchase Intentions: The Moderating Effects of Gender and Perceived Risk. The purpose
of this study is to examines the issue of recommendation sources from the perspectives of gender
and consumers perceived risk, and validates a model for the antecedents of consumer online
purchases. Following variables are taken word-of-mouth, advertising, and recommendation
system for the purpose of researsh. Researcher collect data from 396 undergraduate students
aged 18-24 and apply multiple regression analysis was conducted to identify causal relationships.
The results showed that the effects of word-of-mouth on online purchase intentions were stronger
than those of advertising and recommendation systems. In addition, female consumers have less
experience with online purchases
(Asadollahi, Jani, Mojaveri, & Allahabadi, 2012) they discuss on the tpoic Investigating the
Effect of Brand Satisfaction, Brand Trust and Brand Attachmenton Purchase Behavior of
Customers. The purpose of this study is to develop a comprehensive model that combines brand
satisfaction, brand trust and brand attachment perspectives on brands and demonstrate how affect
current and future purchases. Following variables are taken for the purpose of research Brand
attachment, brand satisfaction, brand trust, current purchase, future purchase. Researcher collect
data from 390 respondnts. researchers used structural equation modeling to test the significance
of the overall model and the specified paths. Findings indicate that brand satisfaction is affected
by directly by brand trust, current purchase and indirectly by brand attachment. Brand trust is
affected by directly by brand attachment and indirectly by future purchase
(Gowri, July. 2012) they discuss on the topic IMPACT OF BRAND FACTORS ON THE
PURCHASE OF VARIOUS BRANDS OF TELEVISION. The purpose of this study is to
examine the the impact of different factors on the purchase intention of various brands of

Factors that affect the purchase intention of smart phone buyers

television. For this study they select following variables Brand Heuristics, Brand Knowledge,
Brand trust and Brand Loyalty. Researcher collect two type of data primary data werecollected
from the respondents with a help of a structured questionnaire. The secondary data were
collectedfrom published books, magazines, journals and research publications. 500 samples were
selected fromCoimbatore city by adopting Snow ball sampling method and data is entered in spss
for findings. The finding of research is that The brand factors namely brand heuristics, brand
knowledge and brand trust have a significant influence on the purchase of specific brands of
television by the sample respondents. The other factors namely brand loyalty, perceived quality,
brand association and overall brand equity has not influenced the purchase of the specific brands
of television by sample respondents.
(THOMAS, ARORA, & SHAINESH, 2009) they discuss on the topic Effects of Customer Trust
on Word of Mouth Communication: Examining Customer-brand Relationship. The purpose of
this study is to examined the effects of customer trust and perceived value on word-of-mouth
communication (WOM). The following independent variables are taken corporate brand trust,
product brand trust and customer interface trust to check the effect on WOM. Researcher collect
data requride data from two groups one dataset of 461 brand evaluations of all the four
competing brands (ALLBRANDS) and another dataset, which included only the 126 evaluations
of the brands owned by 126 existing customers. The model was examined using path analysis
technique.the finding of this research is that Customer perceived value partially mediated the
effect of product brand trust on word of mouth and purchase intentions and Customer interface
trust positively influenced word of mouth communications but had no significant influence on
customer perceived value and moreover Corporate brand trust was found to have a positive
influence on product brand trust and customer interface trust
(Bouhlel, Mzoughi, Hadiji, & Slimane, 2009) They discuss on the topic Brand Personality and
Mobile Marketing: An Empirical Investigation. The purpose of this study is to assess the value of
the brand personality and its influence on consumers decision making, through relational
variables after receiving a text message ad. Researcher select following variables Attachment,
Brand personality, Commitment, Involvement, Mobile marketing, Purchase intention, Sensitivity,
Trust. In this research the data is collected from 380 participants through questionnaire survey.
For the purpose of findings data is entered in SPSS and to check the reliability of the valid

Factors that affect the purchase intention of smart phone buyers

questionnaires was assessed by the Cronbach alpha reliability coefficient. The results show that
the brand personality influences the trust and the attachment as well as the commitment. The
more the consumer perceives the brand as being sincere and competent, the more he trusts it,
what generates his attachment and his commitment. The levels of sensitivity and involvement
modify the impact of the brand personality on the consumer behavior. The consumer purchase
intention increases after receiving a SMS announcing a new collection, a period of sales
(ahin, Zehir, & Kitap, 14 November 2012) They discuss on the topic the effects of brand
experience and service quality on purchase intention: The role of brand relationship quality. The
purpose of this study is to investigate the effects of brand experience and service quality on
purchase intention with the role of brand relationship quality. For the purpose of research the
researcher select six variables which are as follow Brand experience, service quality, brand
relationship quality, brand trust, brand satisfaction, brand commitment, purchase intention. The
sample size which is taken to collect the data is 258 respondents. For the purpose of finding data
is entered in SPSS and T- test are apply. Finding of this research is that brand experience has
positive effects on brand satisfaction and commitment and Service quality has positive effects on
brand trust, satisfaction and commitment further more brand satisfaction has a significantly
positive effect on consumer purchase intention for a brand
(Gabisch & Gwebu, 2011) They discuss on the topic IMPACT OF VIRTUAL BRAND
EXPERIENCE ON PURCHASE INTENTIONS: THE ROLE OF MULTICHANNEL
CONGRUENCE. The purpose of this study is to examine the impact of virtual experiences on
attitude formation, and offline purchase intentions, and identifies three types of channel
congruence that help explain the cross-channel effects. Following variables are taken to check
the effects multichannel marketing, brand experience; virtual worlds; Second Life; channel
congruency. Data is collected through an online questionnaire from 158 surveys the survey was
made possible by collaborating with a marketing research firm that specializes in data collection
within virtual worlds. For the purpose of findings Partial Least Squares (PLS) regression was
used to test the research model PLS is a structural equation modeling (SEM) technique that is
useful for simultaneously estimating multiple relationships among latent constructs
(MAHESH & AMULYA, April (2013)) They discuss on the topic IMPACT OF BRAND
AWARENESS ON PURCHASE INTENTION: A STUDY ON MOBILE PHONE USERS IN

Factors that affect the purchase intention of smart phone buyers

MYSORE. The purpose of this study is to explore the effects among brand awareness and
customer purchase intention. Three variables are taken to check the effect on purchase intention
which is as follow Brand Awareness, Brand Loyalty, Perceived Quality. Researcher collects data
from 165 respondents and applies regression analysis and mediating test for data analysis. The
study suggests that mobile phone manufacturers must try to build a strong brand and support its
brand awareness through sales promotion, advertising, and other marketing activities. When
brand awareness is high, its brand loyalty will also increase. Consumers will evaluate perceived
quality of a product from their purchase experience. As a result, brand loyalty and brand
preference will increase and also purchase intention.
(Tanvir & Shahid, JUNE 2012) They discuss on the topic Impact of Sports Sponsorship on Brand
Image and Purchase Intention. The purpose of this study is to investigate the attitude of a
consumer towards brand image and leading it to purchase intention regarding sports sponsorship.
Following variables are select to investigate the effect Sports sponsorship, Brand image,
Purchase intention, Brand publicity. For the purpose of finding data is collected from sample of
310 respondents from the city of Lahore was drawn to carry out the research. And apply
regression test to check the relationship of variables on purchase intention. The finding of this
research is that sports sponsorship plays a very significant role towards consumers and people
give a lot of value and the companies who are sponsoring the sports can influence the demand of
purchasing products more effectively as compared to other modes of promoting tools.
(Yaseen, Tahira, Gulzar, & Anwar, DECEMBER 2011) They discuss on the topic Impact of
Brand Awareness, Perceived Quality and Customer Loyalty on Brand Profitability and Purchase
Intention: A Resellers View. The purpose of this study is to investigate resellers point of view
about the impact of brand awareness, perceived quality and customer loyalty on brand
profitability and purchase intention. The following variables are taken for the research Brand
Awareness; Perceived Quality Customer Loyalty; Brand Profitability; Purchase Intention;
Resellers View. For the purpose of research data is collected from 200 respondents and apply
correlation and regression analysis for the findings. The results revealed significant impact of
brand awareness, perceived quality and loyalty on purchase intention Moreover purchase
intention also mediates the relationship of the quality and profitability so the brand manager must
also focus on such relationship to get more desirability from retailers to demand their products.

Factors that affect the purchase intention of smart phone buyers

(Thammawimutti & Chaipoopirutan, 2010, pp. 5-9) They discuss on the topic THE
RELATIONSHIP BETWEEN BRAND EQUITY, PRODUCT ATTRIBUTES AND PURCHASE
INTENTION: A STUDY OF SONY DIGITAL CAMERAS IN BANGKOK. The purpose of this
study is to examine the relationship between brand equity, product attributes and consumers'
purchase intention toward Sony Cyber-Shot digital cameras in Bangkok. They took 4 variables
as independent like brand awareness, brand association, perceived quality, and brand loyalty. To
check the relationship data is collected from 400 respondents and Spearman Rank-Order
Correlation Coefficient was used to analyze the relationship between the variables in this study.
The relationships between elements of brand equity and purchase intention are moderately
positive such relationships demonstrate that the intention or likelihood to purchase Sony CyberShot digital cameras will increase when consumers' perception of brand equity increased
(Hanzaee & Taghipourian, 2012) confer on the matter in hand The Effects of Brand Credibility
and Prestige on Consumers Purchase Intention in Low and High Product Involvement. The sole
motive of this study was to appraise the effects of brand integrity and eminence on consumers
purchasing intensions under different levels of product range. Variables that were under taken
includes perceived value for money, Perceived quality, Perceived risk. Cost effectiveness of
information sums up moderating role between brand credibility prestige and purchasing
intentions. The data was collected by 453 questionnaires that were distributed before the actual
findings were identified. Then Cronbach's alpha test was applied and hypotheses were tested
using structural equation modeling (SEM) via LISREL. The bond between brand crediblity and
brand prestige can vary high/low keeping in view of the degree of product involvement in it.

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Factors that affect the purchase intention of smart phone buyers

Chapter 1
Introduction
Review of data:
A number of researches have been conducted on the purchase intention and the factors affecting
purchase intention. Most of these researches are in the consideration of developed countries. Few
researches are done on developing countries. Consumer purchase intention is the decision
making process used by consumers relating to a market deal in the form of purchase of products
and services from one seller or group of sellers. Consumers go through different decision criteria
when making any purchase decision like brand, prices, quality, performance, features,
convenience and user friendliness.
In recent years a number of technologies that permit consumers to search for information,
interact with brands, communicate with other consumers, try out products, and buy real and
digital products over the internet have emerged. Some examples of these types of technologies
include online product simulations (e.g. test driving automobiles, virtually trying-on clothing),
avatars [animated representations of the user; see Holzwarth et al. 2006] for engaging in
virtual environments (e.g., Second Life), and online chat. Many consumers use the internet to
collect information on products and brands before making purchases offline [Venkatesan et al.
2007; Teltzrow et al. 2007]. Online virtual environments have been identified as emerging
marketing channels [Li et al. 2002; Barnes and Mattsson 2008; Shen and Eder 2009], whereby
consumers can engage in information search, trial, and purchasing. These virtual environments
may offer important advantages over traditional, two-dimensional websites through increased
functional and social interactivity, and can provide valuable brand experiences that lead to
increased customer loyalty and sales [Arakji and Lang 2008]
(Moradi & Zarei, 2011) Confer The Impact of Brand Equity on Purchase Intention and Brand
Preference-the Moderating Effects of Country of Origin Image. The main lucrative objective of
this study is to delve the relationships among brand equity, the intensions for purchase and brand
preferment, through random sampling of young potential Iranian consumers. They choose two
flexible brand preferments and brand equity. Researcher compiles the analysis from 602

11

Factors that affect the purchase intention of smart phone buyers

defendants then conduct correlation analysis to extract out the potential bond between model
variables. The final evaluation shows that the brand equity overweight the influence over
consumers brand preference and purchasing intentions of consumers
(khna, Gauri, & Majeed, JULY 2012) examine the appulse of brand associated aspects to
extract out the intensity of purchasing from custumers. The study further inspect brand affiliated
elements such as (Brand knowledge, brand relationship, behavioral intention, brand
advertisement and past experience about the brand) on purchasing objectives of the consumers.
In this Article they have used five variables Brand knowledge, brand relationship, behavioral
intention, brand advertisement and past experiences. The researcher assembles data from from
620 defendants and apply correspondence test for final evaluation. The result of this Research is
that brand loyalty and brand knowledge has highly affirmative relation with purchasing habits of
customers.
(Hanzaee & Taghipourian, 2012) confer on the matter in hand The Effects of Brand Credibility
and Prestige on Consumers Purchase Intention in Low and High Product Involvement. The sole
motive of this study was to appraise the effects of brand integrity and eminence on consumers
purchasing intensions under different levels of product range. Variables that were under taken
includes perceived value for money, Perceived quality, Perceived risk. Cost effectiveness of
information sums up moderating role between brand credibility prestige and purchasing
intentions. The data was collected by 453 questionnaires that were distributed before the actual
findings were identified. Then Cronbach's alpha test was applied and hypotheses were tested
using structural equation modeling (SEM) via LISREL. The bond between brand crediblity and
brand prestige can vary high/low keeping in view of the degree of product involvement in it.
(Asadollahi, Jani, Mojaveri, & Allahabadi, 2012) they discuss on the tpoic Investigating the
Effect of Brand Satisfaction, Brand Trust and Brand Attachmenton Purchase Behavior of
Customers. The purpose of this study is to develop a comprehensive model that combines brand
satisfaction, brand trust and brand attachment perspectives on brands and demonstrate how affect
current and future purchases. Following variables are taken for the purpose of research Brand
attachment, brand satisfaction, brand trust, current purchase, future purchase. Researcher collect
data from 390 respondnts. researchers used structural equation modeling to test the significance
of the overall model and the specified paths. Findings indicate that brand satisfaction is affected

12

Factors that affect the purchase intention of smart phone buyers

by directly by brand trust, current purchase and indirectly by brand attachment. Brand trust is
affected by directly by brand attachment and indirectly by future purchase
(ahin, Zehir, & Kitap, 14 November 2012) They discuss on the topic the effects of brand
experience and service quality on purchase intention: The role of brand relationship quality. The
purpose of this study is to investigate the effects of brand experience and service quality on
purchase intention with the role of brand relationship quality. For the purpose of research the
researcher select six variables which are as follow Brand experience, service quality, brand
relationship quality, brand trust, brand satisfaction, brand commitment, purchase intention. The
sample size which is taken to collect the data is 258 respondents. For the purpose of finding data
is entered in SPSS and T- test are apply. Finding of this research is that brand experience has
positive effects on brand satisfaction and commitment and Service quality has positive effects on
brand trust, satisfaction and commitment further more brand satisfaction has a significantly
positive effect on consumer purchase intention for a brand
(MAHESH & AMULYA, April (2013)) They discuss on the topic IMPACT OF BRAND
AWARENESS ON PURCHASE INTENTION: A STUDY ON MOBILE PHONE USERS IN
MYSORE. The purpose of this study is to explore the effects among brand awareness and
customer purchase intention. Three variables are taken to check the effect on purchase intention
which is as follow Brand Awareness, Brand Loyalty, Perceived Quality. Researcher collects data
from 165 respondents and applies regression analysis and mediating test for data analysis. The
study suggests that mobile phone manufacturers must try to build a strong brand and support its
brand awareness through sales promotion, advertising, and other marketing activities. When
brand awareness is high, its brand loyalty will also increase. Consumers will evaluate perceived
quality of a product from their purchase experience. As a result, brand loyalty and brand
preference will increase and also purchase intention.
(Tanvir & Shahid, JUNE 2012) They discuss on the topic Impact of Sports Sponsorship on Brand
Image and Purchase Intention. The purpose of this study is to investigate the attitude of a
consumer towards brand image and leading it to purchase intention regarding sports sponsorship.
Following variables are select to investigate the effect Sports sponsorship, Brand image,
Purchase intention, Brand publicity. For the purpose of finding data is collected from sample of

13

Factors that affect the purchase intention of smart phone buyers

310 respondents from the city of Lahore was drawn to carry out the research. And apply
regression test to check the relationship of variables on purchase intention. The finding of this
research is that sports sponsorship plays a very significant role towards consumers and people
give a lot of value and the companies who are sponsoring the sports can influence the demand of
purchasing products more effectively as compared to other modes of promoting tools.
This study will give an in-depth overview experience, create and increase their satisfaction
towards service which offers by purchase intention. Many researchers already discussed about
purchase intentions but these researchers did not focus on Brand loyalty, Brand trust, Price, EWOM But I will focus on these factors and also analyze different customer from different
background to evaluate either these factors affect purchase intention. Many researchers worked
on developed countries but I select developing country to further carry on my research related to
factors that affect purchase intention on smart phone buyers.
Purpose statement
Therefore the purpose of my study is to examine different variables including brand loyalty,
brand trust, price, E-WOM on purchase intention
Significance statement
The significance of our study is that this study is helpful for the managers who manage the
selling of smart phones in our country. This study is also helpful for researchers that want to
more research in this topic in the future time period. This study is also helpful to the policy
makers who make the different polices for the country. This study is helpful for researchers,
students and other interested peoples who want to further work on this topic or on this sector.

This study can helpful to the Manager who manage selling of smart phones with the help
of this study he can easily understand the customer purchase intention regarding

Smartphone.
This study also helpful to the policy makers who make polices for the country they can

understand better how smart phone will satisfy and what they need.
This study has been a body of knowledge on that particular topic which can be helpful in
future for those who wants to further work on this particular sector.

Research objectives

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Factors that affect the purchase intention of smart phone buyers

The objective of this study is to examine the factors that affect purchase intention on smart phone
buyers in pakistan. There are following objectives of this study.

To examine the impact of brand loyalty on purchase intention

To determine the impact of brand trust on purchase intention
To investigate the impact of price on purchase intention
To determine the impact of E-WOM on purchase intention

Research Question and Hypothesis:

These questions are associational in nature in which the effect between dependent variable and
independent variables are determined.
Research question
What are the factors that affect purchase intention of smart phone buyers?
Research hypothesis
To evaluate the factors that affect purchase intention of Smartphone buyers we test following
hypothesis
H1A: There is a relationship between brand loyalties on purchase intention
H1B: There is a relationship between brand trusts on purchase intention
H1C: There is a relationship between prices on purchase intention
H1D: There is a relationship between E-WOM on purchase intention
Term definition
Brand trust:
The trust is a confidence in an exchange partners reliability and integrity. It is viewed as a
belief, confidence, or expectation about an exchange partners trustworthiness that results from
the partners expertise, reliability, or intentionality [55]. It is also the consumers brand
perceptions: altruism, honesty and potential performance of the product (Bouhlel, Mzoughi,
Hadiji, & Slimane, 2009)

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Factors that affect the purchase intention of smart phone buyers

Brand Loyalty
Operations of loyalty lie in how much consumer actually consumes the goods or services of
brand we measure it by measuring consumer purchasing frequency (Lin et al. 2000; Veloutosou
et al. 2004). It determines the level of utilization of goods and services from particular/specific
retail location or seller (Driver, 1996; East et al. 1995). Loyalty is a process of evaluating
consumers switching from one to another brand or adopting another brand (Hsiu-Yuan and LiWei, 2005). There are several ways to evaluate Brand Loyalty i.e., how much brand is familiar
among consumers (Dick et al. 1996; Wood, 2004; Feltham, 1998), using the brand and level of
positive experience and convenience (Rowley, 2005; Lin, 2000), social cost, self concept and
brand image (Abendoth, 2001; Auty, 2001), satisfaction and perceived value (Baltas, 1997; Ness
et al. 2002; Wood, 2004).
Repurchase intention
Repurchase intentions simply refer to the likelihood of using a brand again in the future (Fornell,
1992; Boonlertvanich, 2001) (ahin, Zehir, & Kitap, 14 November 2012)

16

Factors that affect the purchase intention of smart phone buyers

Research model for the Factors that affect purchase intention of Smartphone buyer

Brand loyalty

Brand trust
Purchase intention
Price

E-WOM

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Factors that affect the purchase intention of smart phone buyers

Chapter 3
Methodology
A research methodology has a specified framework for collecting the data in an effective manner.
Research methodology means a defining the problem, defining the research objectives,
developing the research plan, collecting the information, analyzing the information
and presentation of finding such framework is called Research Design.
Research paradigm
Johnson, R. B., &Onwuegbuzie, A. J. (2004) Paradigm means knowledge which is based on
reality of the world. The experiences, observations and experiments all are the important paths to
attain the knowledge of people and world.Creswell, J. W. (1994) he argued that a paradigm
means the claims of knowledge. It can be understand as when a researcher start a project with
certain assumptions that how he learn and what he learn during his in enquiry then these claims
are called paradigms. In our study the research paradigm is positivism.
Davis, T. D. (2011) he argued that in positivism research paradigm the results are achieved by the
help of experimental models which claims the neutrality and autonomy and it is a way to strong
their work reliability.
Creswell, J. W. (1994) he argue that in positivism warrants knowledge claims came and this
position is sometime called quantitative research, scientific method doing science research or
scientific method. Creswell, J. W. (1994) he argues that in positivism we do numeric measures
of observation and in it we study the behavior of individuals and in it individual start with a
theory then collect the data related to that theory wither it supported the theory or not and then do
some important revisions before additional tests and conducted.
Positivism:
A Positivism approach to research is based on knowledge gained from 'positive' verification of
observable experience rather than, for example, introspection or intuition. Scientific methods or
experimental testing are the best way of achieving this knowledge. The broader context for this
approach is the Modernist movement.

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Factors that affect the purchase intention of smart phone buyers

there is an objective reality.
People can know this reality.
Symbols can accurately describe and explain this objective reality.
Beliefs
This approach holds certain beliefs:
Prediction and control
That there are general patterns of cause-and-effect that can be used as a basis for predicting and
controlling natural phenomena. The goal is to discover these patterns.
Empirical verification
that we can rely on our perceptions (observations or measurements) of the world to provide us
with accurate data.
Research is value-free
provided a strict methodological protocol is followed, research will be free of subjective bias and
objectivity will be achieved.
Positivism approaches rely heavily on experimental and manipulative methods. These methods
ensure that there is a distance between the subjective biases of the researcher and the objective
reality she or he studies. This generally involves hypothesis generation and testing: proving or
refuting. Typically, quantitative methods are used.
The positivism position is grounded in the theoretical belief that there is an objective reality that
can be known to the researcher, if she or he uses the correct methods and applies those methods
in a correct manner. Research is evaluated using three criteria:
Validity - the extent to which a measurement approach or procedure gives the correct answer
(allowing the researcher to measure or evaluate an objective reality)
Reliability - the extent to which a measurement approach or procedure gives the same answer
whenever it is carried out
Generalizability - extent to which the findings of a study can be applied externally or more
broadly outside of the study context (Cohen D and Crabtree B, 2006, Qualitative Research
Guidelines Project.)
Interpretivism
Interpretivisms contend that only through the subjective interpretation of and intervention in
reality can that reality be fully understood. The study of phenomena in their natural environment

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is key to the interpretivism philosophy, together with the acknowledgement that scientists cannot
avoid affecting those phenomena they study. They admit that there may be many interpretations
of reality, but maintain that these interpretations are in themselves a part of the scientific
knowledge they are pursuing. Interpretivism has a tradition that is no less glorious than that of
positivism, nor is it shorter.
Choose positivism research & why
I choose positivism because my research is based on knowledge gained from 'positive'
verification of observable experience rather than, for example, introspection or intuition.
Scientific methods or experimental testing are the best way of achieving this knowledge. The
broader context for this approach is the Modernist movement. and the data which is collected is
Validity - the extent to which a measurement approach or procedure gives the correct answer
(allowing the researcher to measure or evaluate an objective reality)
Reliability - the extent to which a measurement approach or procedure gives the same answer
whenever it is carried out
Generalizability - extent to which the findings of a study can be applied externally or more
broadly outside of the study context
Positivists believe that reality is stable and can be observed and described from an objective
viewpoint (Levin, 1988), i.e. without interfering with the phenomena being studied. They
contend that phenomena should be isolated and that observations should be repeatable. This
often involves manipulation of reality with variations in only a single independent variable so as
to identify regularities in, and to form relationships between, some of the constituent elements of
the social world. Predictions can be made on the basis of the previously observed and explained
realities and their inter-relationships. "Positivism has a long and rich historical tradition. It is so
embedded in our society that knowledge claims not grounded in positivist thought are simply
dismissed as scientific and therefore invalid" (Hirschheim, 1985, p.33). This view is indirectly
supported by Alavi and Carlson(1992) who, in a review of 902 IS research articles, found that all
the empirical] studies were positivist in approach. Positivism has also had a particularly
successful association with the physical and natural sciences.
There has, however, been much debate on the issue of whether or not this positivist paradigm is
entirely suitable for the social sciences (Hirschheim, 1985), many authors calling for a more

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pluralistic attitude towards IS research methodologies (see e.g. Kuhn, 1970; Bjrn-Andersen,
1985; Remenyi and Williams,
1996). While we shall not elaborate on this debate further, it is germane to our study since it is
also the case that Information Systems, dealing as it does with the interaction of people and
technology, is considered to be of the social sciences rather than the physical sciences
(Hirschheim, 1985). Indeed, some of the difficulties experienced in IS research, such as the
apparent inconsistency of results, may be attributed to the inappropriateness of the positivist
paradigm for the domain. Likewise, some variables or constituent parts of reality might have
been previously thought un measurable under the positivist paradigm - and hence went un
researched
Research Approach:
The knowledge claims, the strategies, and the method all contribute to a research approach that
tends to be more quantitative, qualitative or mixed. Definitions can help further clarify the three
approaches
Quantitative approach
A quantitative approach is one in which the investigatory primarily uses postpositive claims for
developing knowledge (i.e., cause and effect thinking, reduction to specific variables and
hypotheses and questions, use of measurement and observation, and the test of the
orgies),employs strategies of inquiry such as experiments and surveys, and collect data on
predetermined instruments that yield statistics data.
Qualitative approach
A qualitative approach is one in which the inquirer often makes knowledge claims based
primarily on constructivist perspectives (i.e., the multiple meanings of individual experiences
meanings socially and historically constructed, with an intent of developing a theory or pattern)
advocacy/participatory perspectives (i.e., political, issue-oriented, collaborative, or change
oriented) or both. It also sues strategies of inquiry such as narratives, phenomenologys,
ethnographies, grounded theory studies, or case studies. The researcher collects open-ended,
emerging data with the primary intent of developing themes from the data.

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Mixed methods approach
A mixed methods approach is one in which the researcher tends to base knowledge claims on
pragmatic grounds (e.g., consequence-oriented, problem-centered, and pluralistic).
Use quantitative and Why
In my study I used the quantitative research method. Johnson, R. B., &Onwuegbuzie, A. J.
(2004) according to him some feature of quantitative research are in it we focus on the deduction
(it involve the formulation of hypo thesis) hypothesis test, theory tests, conformation,
explanation, standardized data collection, prediction and statistical analysis. Johnson, R. B.,
&Onwuegbuzie, A. J. (2004) he further discussed some strengths of quantitative research that in
it data is reliable, data collection is done easily and data analysis also take less time because we
do this by using statistical software.
Bishop, B. J. (2007) he discussed that in quantitative methods experimental study (micro
quantitative) and systems analytical studies (macro quantitative) came. The experiment study is
based on the past development in that field and its the own opinion of the researcher whereas on
the other the system analytic studies is on border term and in it researcher takes the views from
the respondents and then interpret the result and the questionnaire is formal and in it the
respondent is bounded and he cannot give his own opinion. Johnson, R. B., &Onwuegbuzie, A. J.
(2004) according to him the quantitative researches are reliable and valid and in it researchers
should remove their business and should focus on the objective of the study and in it researchers
use the formal writing style using the impersonal passive voice and technical terminology.
Population and sampling
Population
A population consists of all the subjects you want to study. A population comprises all the
possible cases (persons, objects, events) that constitute a known whole.
What is Population?
A group of individuals or items that share one or more characteristics from which data can be
gathered and analyzed. A population is a summation of all the organisms of the same group

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or species, which live in the same geographical area, and have the capability of interbreeding. In
ecology the population of a certain species in a certain area is estimated using the Lincoln Index.
The area that is used to define a sexual population is defined as the area where inter-breeding is
potentially possible between any pair within the area. The probability of interbreeding is greater
than the probability of cross-breeding with individuals from other areas. Under normal
conditions, breeding is substantially more common within the area than across the border. Due to
the large sizes of populations, researchers often cannot test every individual in the population
because it is too expensive and time-consuming. This is the reason why researchers rely
on sampling techniques.
Importance of Population:
Population study is concerned not only with the population variables but also with the
relationship between population variables such as social, economic, political, biological, genetic,
and geographical and interrelationship between those variables. It includes both qualitative and
quantities aspects of human population.
Population studies were not given much priority in the past. But at present days people of
different field require the information about population, so its importance is increasing day by
day. Population education is very important at present to be a successful sociologist, politician,
administrator and environmentalist. Its study is very important in various fields like to do social
work, to develop economic field, to do political work, different administration work, and to make
rules and regulation.
Research Population:
All research questions address issues that are of great relevance to important groups of
individuals known as a research population.
Sampling
Sampling is the process of selecting a group of subjects for a study in such a way that the
individuals represent the larger group from which they were selected. This representative portion
of a population is called a sample

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In defining a population for study, such a population must be specific enough to provide readers
a clear understanding of the applicability of your study to their particular situation and their
understanding of that same population. It therefore becomes important to select the proper
method of sampling, the process by which representative individuals are randomly selected to
provide insights into the entire population under study. The four methods of doing this include
simple random sampling, stratified sampling, cluster sampling and systematic sampling.
Simple random sampling entails defining the population to be studied, determining the
percentage of this population to be interviewed or studied, assigning each individual within the
population a number and then using arbitrarily selected numbers from a table of numbers, giving
each individual an equal chance to be selected for inclusion in the study. In this manner, a
sufficiently random sample of the general population becomes representative of the larger whole.
What is Sampling?
In research terms a sample is a group of people, objects, or items that are taken from a larger
population for measurement. A shortcut method for investigating a whole population. Data is
gathered on a small part of the whole parent population or sampling frame, and used to inform
what the whole picture is like. In sampling design we first of all see that the sampling is single
stage or cluster. In single stage sampling the researchers has a direct access to the respondent
where as in cluster sampling he makes the groups from population and then sample within the
cluster.
Sampling Technique:
There are two types of sampling technique which are following:

Probability Sampling

Non-Probability Sampling

Probability Sampling:

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Probability sampling is a sampling technique where in the samples are gathered in a

process that gives all the individuals in the population equal chances of being selected.

Least biased of all sampling techniques, there is no subjectivity - each member of the
total population has an equal chance of being selected.

Can be obtained using random number tables.

Microsoft Excel has a function to produce random number.

They are evenly/regularly distributed in a spatial context, for example every two metres
along a transect line.

They can be at equal/regular intervals in a temporal context, for example every half hour
or at set times of the day.

Non-Probability Sampling:
Non-probability sampling does not involve random selection and probability sampling does.
With non-probability samples, we may or may not represent the population well, and it will often
be hard for us to know how well we've done so.
What I am choosing and Why?
I am choosing probability sampling because by choosing this I am able to collect simple random
sampling, systematic random sampling, cluster sampling etc easily. And this is also the demand
of my research topic.
Sample Size:
I have been collected data from 150 respondents in the city of Lahore.
3.4 Tools of Data Collection:
Data Collection tools are helpful because they provide a picture of your classroom/work
environment. The goal for using tools is to help the researcher clarify information, process
knowledge, and identify opportunities for continuous improvement.

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1 Interviews:
In-Depth Interviews include both individual interviews (e.g., one-on-one) as well as group
interviews (including focus groups). The data can be recorded in a wide variety of ways
including stenography, audio recording, video recording or written notes. In interviews it is
assumed that there is a questioner and one or more interviewees. The purpose of the interview is
to probe the ideas of the interviewees about the phenomenon of interest.
2Questionnaire:
Questionnaires are instruments used for collecting data in survey research. They usually include
a set of standardized questions that explore a specific topic and collect information about
demographics, opinions, attitudes, or behaviors.
Methodology:
There are two types of analysis used in methodology.
1Descriptive Analysis
Descriptive statistics is the term given to the analysis of data that helps describe, show or
summarize data in a meaningful way. In descriptive analysis you simply write down what you
observe. Descriptive statistics are very important because if we simply presented our raw data it
would be hard to visualize what the data was showing, especially if there was a lot of it.
Descriptive statistics therefore enables us to present the data in a more meaningful way, which
allows simpler interpretation of the data. When we use descriptive statistics it is useful to
summarize our group of data using a combination of tabulated description (i.e., tables), graphical
description (i.e., graphs and charts) and statistical commentary (i.e., a discussion of the results).
Inferential Analysis:
Inferential statistics are techniques that allow us to make generalizations about the populations
from which the samples were drawn. It is, therefore, important that the sample accurately
represents the population. The process of achieving this is called sampling (sampling strategies
are discussed in detail here on our sister site). Inferential statistics arise out of the fact that
sampling naturally incurs sampling error and thus a sample is not expected to perfectly represent

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the population. Inferential analyses are used to differentiate the two or more variables on the
basis of statistical tests with the assumption that the sample is selected on the random basis.
And following are the tests which I am going to apply on my research collected data.
Histogram:
A frequency table or frequency distribution is calculation of the numbers of time each category
on a single variable is marked by the respondent. A frequency can be further classified by
expressing the total results in the form of percentage. A histogram is a display of statistical
information that uses rectangles to show the frequency of data items in successive numerical
intervals of equal size.

Descriptive statistics:
Descriptive statistics can only be used to describe the group that is being studying. That is, the
results cannot be generalized to any larger group. Descriptive statistics are useful and serviceable
if you do not need to extend your results to any larger group. Descriptive statistics includes
statistical procedures that we use to describe the population we are studying. The data could be
collected from either a sample or a population, but the results help us organize and describe data
However, much of social sciences tend to include studies that give us universal truths about
segments of the population, such as all parents, all women, all victims, etc
Reliability test:
Reliability is one of the most important elements of test quality. It has to do with the consistency,
or reproducibility, or an examinee's performance on the test. For example, if you were to
administer a test with high reliability to an examinee on two occasions, you would be very likely
to reach the same conclusions about the examinee's performance both times. A test with poor
reliability, on the other hand, might result in very different scores for the examinee across the
two test administrations. If a test yields inconsistent scores, it may be unethical to take any
substantive actions on the basis of the test. There are several methods for computing test
reliability including test-retest reliability, parallel forms reliability, decision consistency, internal

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Factors that affect the purchase intention of smart phone buyers

consistency, and inter rater reliability. For many criterion-referenced tests decision consistency is
often an appropriate choice.
Scatter plot:
A diagram for display the relationship between two variables is the scatter plot, in which scale of
values of the two variables (such as height and weight) are set out on the horizontal and vertical
axis and each person is represented as point those co-ordinates are his or her particular height
and weight.
Correlation:
Correlation and regression analysis are related in the sense that both deal with relationships
among variables. The correlation coefficient is a measure of linear association between two
variables. The research hopes to find that those with more education tend to have higher final
salaries, that is, that salary is positively correlated with education. Such research is therefore
known as correlation research (kinnear& gray, 2006). The correlation coefficient measures the
strength of linear relationship between two or more numerical variables. The value of correlation
coefficient can vary from -1.0 (a perfect negative correlation or association) through 0.0 (no
correlation) to +1.0 (a perfect positive correlation) and the both +1 and -1 is strong relation
between variables but there direction is opposite (Creswell J. W. 2003).
Regression:
Regression analysis involves identifying the relationship between a dependent variable and one
or more independent variables. A model of the relationship is hypothesized, and estimates of the
parameter values are used to develop an estimated regression equation. Regression analysis is
most important analysis to check the relationship between two or more variables. Regression
analyses are used to check the relationship that due to one unit changes in independent variable
how much will be occurring in the value of dependent variable. (Creswell J. W. 2003)
Simple Regression:
Simple regression is used to check the relationship between independent variable and dependent
variable. Simple regression is used only when the no of independent variable is only one. The

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Factors that affect the purchase intention of smart phone buyers

assumption of simple regression is that the dependent variable should be scale and the
relationship between variables should be linear. (Creswell J. W. 2003)
Multiple Regressions:
Multiple regressions are used to check the relationship between independent variable and
dependent variable. Multiple regressions are used only when the no of independent variable is
more than one. The assumption of multiple regressions is that the dependent variable should be
scale. (Creswell J. W. 2003)

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