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Consumer behavior in relation to Smartphone usage in UAE

MAJAN COLLEGE (UNIVERSITY COLLEGE)


Assignment Task:

You need to choose one of the following devices – Laptops, Smartphones, Gaming Consoles (e.g. PlayStation, Xbox, Nintendo) and write a research report on Consumer Buying Behaviour for that device. 

The report should address the following


Description of your chosen device.

1-0 Introduction

1.1 Set out you task

1.2 chosen products

  1. features /specifications
  2. price point
  3. position in the product line


Explain whether it's a low or high involvement purchase.

2-0 - Literature review (2example -3line or 4)

2.1- level of involvement in the chosen product

Where involvement 

Why high

Why low

(time /frequency /risk)


The current consumer / consumption trends for this product category in Oman.

3-0 consumer/consumption trends for the chosen product

3.1what consumer segments price

user (office-gaming-home-student-entertainment)

what seen in the market and write that


3.2- buuing motives----why consumer buy it 

obvious (functional)

intangible


3.3 frequency of purchase 

how often?

drivers for purchase?

 (general)

3.4-product/brand preferences

Why choices 

3.5 consumer attitudes category

1)value

2)expected tenure of use

3)perception

4)dissonance


The Positioning Strategies followed in this product category and their influence on Consumer Purchase.

4.0 positioning strategies in the product category

(sleek/built) tough / proof

(price)value

(design /aesthetics)

(positioning of your products)

(is this effective in influencing customers)


An evaluation of any two external and two internal factors that influence the purchase of this appliance, using the following model of Consumer buying-decision process: Need Recognition – Information Search – Evaluation of Alternatives – Purchase Decision – Post Purchase Behaviour.


Conclusion

 

Answer

Introduction 

As far as recent past is considered the consumer behavior of UAE has undergone several changes and shifts due to product variations of smart phones. Because of high demand smart phones have undergone several changes and there has been a significant decline in the market of mobile phones that does not have smart features. Smart phones itself come up with several variations within this genre. The characteristic features of smart phones are:

  • Long-lasting battery.
  • speedy processing
  • crystal clear display
  • good camera with high megapixels
  • supports multiple windows
  • plenty of phone storage
  • NFC
  • Infrared remote control

The major purpose of the study is to investigate several variables that directly and indirectly affect the consumer response to smart phones. Relevant to the current study is the fact that BlackBerry has been ongoing a recent slump in the Smartphone industry due to advent of several other smart phones. Therefore, it is evident that the market of UAE has changed as far as smart phones are concerned..Therefore, it is evident that there is a significant switch from blackberry to other smart phones.  The current study attempts to investigate the reasons behind the changing perceptions and motives that are significantly impacting the consumer behavior.

2.0Literature Review 

Literature review provides a base for the research. It is important to shed light on the previous research works that are relevant in this context. Considering the consumer behavior regarding smart phones it is important to understand the variables that act as the elements that impacts the behavior of the buyers. Brand switching, brand loyalty and brand awareness are major variables that act as the factors behind the changing attitude of the consumers.


As far as smart phones are concerned there are plenty of options with individual features which act as the influence over the choice of the employees. As far as UAE is concerned lack of customer loyalty is one of the major reasons behind increased brand switching. For example the case of Blackberry can be cited (Smith,  2013). It is a significant fact that the product features and positioning strategy of recent smart phones has significantly affected the customer market of Blackberry in UAE. Another important fact that requires to be taken under consideration is that reference groups also cause customers to switch their mobile phones. Accessibility is another factor. UAE has access to different smart phone brands that has chosen UAE as significant market for promoting their products and it is also depended upon the brand awareness of the consumers. Another important factor that influences the customers to switch their smart phones is because of the developed features that the smart phones offer (Elnashar and El-Saidny,2014). 


It is a significant fact that several companies often releases new smart phones  that have better features than the previous one and therefore the customers are more attracted to the new products. Pricing also matters as far as brand switching is concerned (Alawnah and Sagahyroon,  2015). Customers can be segregated into several segments and their behavior varies from each other. One segment of the customers is highly influenced by the pricing of the smart phones. This segment is dependent upon the price of the products rather than the brand name and the features. Another segment of the customers highly influenced by the new features that are offered by the smart phone companies and their consumer behavior is solely dependent upon the high tech features of the product.


As far as current situation of the Smartphone market in UAE is concerned, it is divided into several groups and as different companies launch new variants of the older products, the customers are tend  to be influenced by their promotion and product features. As availability is not a major issue in this particular country the customers have various options they do not consider the old models of smart phones as their pertinent buying options. Switching the brands also highly depends on the marketing and the product advancements. For example, the majority of the UAE customers do not consider blackberry to be their next Smartphone buying option due to availability of other advanced smart phones in that price at the market.

2.1Level of Involvement 

The variables of the consumer preferences can be justified through the respective capabilities of the targeted segments of consumers. The identification of the consumer preferences can be encouraged in order to develop a specific protocol concerning the achievement of the sales trends. It can be indicated that the variances in the consumer traits explores the provision for an expanded product profile for the organization. As opined by Smith (2013), the additional utilities of the Smart phones if compared to the traditional protocols of symbian and other software platforms utilized for mobile phone operations can be attributed for the development of the expanded demands of these mobile phones.  The integration of internet alongside enhanced utilitarian features for the end-users can be promoted as a reflection on the involved of the product. It can be indicated that the consumers for the smartphones promotes high magnitude of involvement with the nominated product profile. 

3.0Consumption Trends 

The inclusion of the Smartphone in the mobile phone product profile has gained a significant momentum contrasting to the traits of the competitive rivalry. The consumption trends have depicted a rise, which can be justified by the expansion of the consumer demands and the integration of new products in the product profile within a short period. A strategic achievement of expanded utilities concerning the development of the Smartphone utilities is an extrinsic matter that can be involved in the course of business management. The relatives of consumer demands and the inclusion of the same in the product profile can be promoted as a reason that justifies the expansion of the nominated industry. 


The achievement of a integrated protocol that escalates an effortless interface among the producers and consumers are essential. The impact of the consumption trends can be projected as an indispensable integral to the productivity procedure (Nishiyama et al. 2014). The nomination of the business events along with the achievement of proportionate standards of business management and consumer satisfaction has been fairly achieved concerning the integration of Smartphone in business. The deviation of the protocol of consumer management along with the integration of a business module can be related to the elements of consumption trends. 

3.1Consumer segments 

The identification of the consumer segments can be considered through the relevant protocols of market research. However, it can be indicated that the consumer disposable limits are an essential influential to the demand trends for a particular product. The consideration of the various elements along with an empirical knowledge on the relatives of consumer demands can be integrated to the course of consumer segmentation. A product with excellent credentials with a higher price bracket is expected to deviate the requirements of a consumer with low disposable limits. The prevailing market scenario depicts an expansion in the product profile with a significant resemblance to the disposable limits of the consumers (Van Deursen et al. 2015). 


The inclusion of innovation intents in the production procedure has been encouraged in order to facilitate the development of the product profile. IT can be indicated that Smartphone is a significant inclusion to the digitalization era, which has escalated the operational protocols of mobile phones. The integration of the demand traits along with an expansion of the product profiles can be related to the segmentation of the target market. The literacy rates of a community is expected to influence the demand trends of Smartphones concerning the interpretation of the product credential as it is related to the acquisition of utilities of the particular product. 

3.2Buying Motive 

The Buying motive and buying potential of the consumers are diversified terms concerning its influence to the business procedures. The integration of consumer traits to the influence of the operational courses in an organization can be included in the course of the assessment of the buying module. The disposable income of the consumers is expected to facilitate the various trends of a particular product relating to the demand projection of the organization.Strategic identification of a relationship between the analogues of consumer preferences can be promoted as an arbitrary component of business module. 


A consumer base may reflect a high buying motive if its posses the demanded buying potential for the particular product. The relatives of a business procedure along with an interception of the preferable consideration of the buying limits are extremely necessary. The buying potential of market is one of the essential factors that can be escalated in the framework of market identification (Rahmati and Zhong, 2013). The integration of the demands of market can be promoted to be a differential of the buying motive. The gaps in the marketing protocol along with an acquisition of relatives of the business procedures are effective elements of market sustainability.  

3.3Frequency of Purchase 

The frequency of purchase of a particular product can be intercepted in the course of business operations. It can be related to the demand trends and the magnitude of consumer satisfaction of the particular product. The inclusion of an effective protocol concerning the integration of the elementary components can be intercepted in order to identify the relative traits concerning the demand of the targeted consumers. The relation between the acceptance of a product and the phenomenon of consumer retention can be escalated through the achievement of consumer satisfaction through the projection of a particular product.Smartphones has depicted a significant escalation in the demand trends since its inclusion in the global market. 


The influence of the consumer demands from the value sects can be considered as an influencing factor for the expansion of the product portfolio. The acquisition of demand trends along with a through identification of consumer responses can be promoted in the thorough course of business management (Gökçearslan et al. 2016). The effective integration of the consumer responses to the developmental protocol of the product profile can be promoted as a reason for the increase in the frequency of purchase. The continuous development of the product profile can be projected as a justification for increase in the demand frequencies.  

3.4Product preferences 

There are several factors that work behind choosing a particular brand or product and it is very much pertinent as far as smartphones are considered. It is mainly because of the availability of different brands that offer several different kinds of specifications in a particular price range. Product preference of the customers in this case depends on several external variables and physical features of the phone is one of them. The requirements that the customers majorly look for in choosing a product are:


  • Good battery life: It is an evident fact battery is one of the key areas that distinguish between a good and average smart phones. Most of the smartphones that are available in the market tend to have poor battery life and therefore a smartphone that offers above average battery life enjoys competitive advantage in the smartphone market (Abbassi,  2013).
  • Quality of the camera: Due to technological advancement and  major influence of social media on the customers, they tend to look for better camera features and also prefers a phone that offers advanced megapixel camera. In recent years the importance of secondary camera has also increased (Beraja,  2016). Therefore, now the customers seek a smartphone with high megapixel primary and secondary camera.
  • Operating system andsoftware: Customers with advanced technological knowledge tend to go for better operating system that offers smooth operation of several services. Along with that the capacity of RAM and ROM also matter for this segment of customers. The product specification is the key area that these customers focus on.
  • Apps and features are another area that influences the buying preferences of the customers.

Along with the above mentioned factors product preference also depends upon the pricing and reference.

3.5Consumer Attitudes 

Considering Porter’s five forces model it can be said that the bargaining power of the customers of the buyers is high in the market of smartphones because there are several options as far as smartphones are considered. In the market of UAE there are several companies that launch advanced smartphones frequently and the pricing also differs in various ranges (Ameen,  2017). Therefore, evidently the consumers have the choice from various options and they have the opportunity to choose from a wide range of options. Customer attitudes also vary from brand to brand and their technological knowledge and affordability. 

4.0Positioning Strategies 

Positioning strategy of the companies play a huge role in customer preferences and their attitude towards the suppliers. It is evident that the positioning strategy of the smart phones is significantly dependent upon the external factors that influence the companies. It is important for a Smartphone launcher to consider these factors before launching a new product (Habbal,  2017). The factors that are required to be considered are timing of the product, market of the product and target customers of the product. It is important to have a market analysis before deciding a concrete positioning of the products. As far as smart phones are considered  it is important to position the product according to the current needs of the customers and the existing products in the market. It is important to evaluate the features that are offered by other brands.

5.0Evaluation of various factors 

Considering the above mentioned factors it is evident that the customers’ behavior regarding switching the smart phones depends upon the collective influence regarding the product features, trending perceptions, control of the reference groups and technological knowledge. The bargaining power of the buyers is high therefore; the companies majorly focus on the marketing strategy and the product positioning. Product, price, brand loyalty and brand awareness are some of the factors that influence the customer behavior majorly.


Taking into consideration the various factors it is observed that the smart phone users of UAE have similar preferences as far as their buying preference is considered. The customers majorly switch from one brand to another based on the innovative product features, pricing policy of the models, confident customer service of the products and awareness regarding the advertising of the phones. Advanced smart phone models have significantly affected the previous phones that most of the mobile phone users used to buy (Ameen,  2017). It is important to note that reference group does not have relevant impact over most of the customers but there are different motives behind their choice of purchase. Several smart phones have high cost pricing and the customers consider several motives before making any high price investments.


6.0Conclusion 

In the light of the above study it is evident that lack of customer loyalty is one of the reasons behind the customer behavior of smart phone market. It has been observed that the customers switch from one brand to another depending on the product features, cost and advertising of the products. Therefore, it is important to understand that the smart phone users of UAE can avail many variants that can offer impressive features and it has significant role in the product preferences of the customers.

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