The Smartphone Consumer Decision-Making Process of University Students in Sweden: The Case of iPhone
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The Smartphone Consumer Decision-Making
Process of University Students in Sweden: The Case
of iPhone
BACHELOR THESIS
THESIS WITHIN: BUSINESS ADMINISTRATION
NUMBER OF CREDITS: 15
PROGRAMME OF STUDY: MARKETING
MANAGEMENT
AUTHOR: Alek Vladimirov Ivanov, Eric Adam George
Akiba, Konstantin Krasimirov Konov
JÖNKÖPING May 2021Acknowledgements We would like to thank our tutor MaxMikael Wilde Björling for his constructive feedback and effective guidance throughout the development of this research. With his expertise and valuable advice, we were able to gain very useful insights on this process and managed to complete the thesis paper. Secondly, we would like to send out our gratitude towards the participants who took time to be a part of this research and provided us with valuable insights. Thirdly, we would like to acknowledge the participants in the seminar groups. With constructive criticism we received from them during seminars, we were able to polish this paper and deliver high quality. Lastly, we are thankful for the opportunity to test our knowledge gained through the Bachelor’s program in Marketing Management.
Bachelor Thesis in Business Administration
Title: The smartphone consumer decision-making process of university students in Sweden:
The case of iPhone
Authors: Alek Vladimirov Ivanov, Konstantin Krasimirov Konov, Eric Adam George Akiba
Tutor: MaxMikael Wilde Björling
Date: 2021-05-18
Key terms: “Five-stage consumer decision-making process”, “iPhone”, “Purchase behaviour”,
“Smartphone usage”, “University Students in Sweden”.
Abstract
Background: The emergence of mobile phones today and in history proves to be
exceptionally unique in the consumer electronics market as well as the telecommunication
market. The reason behind the huge growth of the industry has been the exceptional evolution
of the technology used in the mobile devices in terms of performance and miniaturization.
Purpose: The purpose of the research is to investigate the different stages within the
consumer decision making process and the influencing factors that have a grip over
consumers and shape the consumer behaviour towards smartphones. The study is aimed at
exploring the main reasons that affect the buying decision of students regarding a specific
case, which is the iPhone product and its student users in the Swedish market. By focusing on
a specific segment of the iPhone consumers, the research will present more accurate and clear
results. The theoretical perspective of the study will be using the traditional five-stage
decision-making model as a backbone thus putting the main focus of the analysis on the
consumer behaviour of the respondents.
Method: Additionally, the paper will take the customers’ point of view in order to portray the
influencing factors that exist within the consumers’ decision-making. For the purpose of the
study, 12 iPhone users will be interviewed through semi-structured interviews and the
gathered data would be analysed and coded in order to find and synthesize the results into a
framework that will be developed specifically for the case.
Conclusion: According to findings that were made regarding the iPhone case, there were a
few factors that stood out as the most relevant when it comes to the students’ purchase
decision - brand loyalty, culture and society, perceived risk, financial influence, usage and
product features. After the initial purchase of an iPhone which is mainly influenced by social
influences, it can be concluded that brand loyalty plays a key role in the repurchase behaviour
of customers.
1Table of Contents
1. Introduction 1
1.1 Background 1
1.2 Problem 2
1.3 Case of Research 4
1.4 Purpose 5
2. Frame of Reference 5
2.1 Consumer Decision-Making Process 7
2.1.1 Need Recognition 8
2.1.2 Information Search 9
2.1.3 Evaluation of Alternatives 10
2.1.4 Purchase decision 13
2.1.5 Post-purchase behaviour 14
2.2 Influencing factors 15
2.2.1 Social Factors 15
2.2.2 Price Factors 16
2.2.3 Perceived Risk 17
2.2.4 Brand Loyalty 18
2.2.5 Product Features 19
2.3 Smartphone usage and customers 20
3. Methodology, Method and Ethics 21
3.1 Methodology 21
3.1.1 Research Paradigm/Philosophy 21
3.1.2 Research Approach 22
3.1.3 Research Design 23
3.2 Method 23
3.2.1 Sampling Method 23
3.2.2 Interview design 24
3.2.3 Data Analysis 26
3.3 Ethics 27
3.3.1 Confidentiality 27
3.3.2 Credibility 27
3.3.3 Transferability 28
3.3.4 Dependability 28
3.3.5 Confirmability 29
24. Empirical Findings 29
4.1 Brand Influence 29
4.2 Cultural and Social Influence 31
4.3 Financial Influence 32
4.4 Product Features 33
4.5 Purchase Considerations 35
5. Analysis 35
5.1 Brand Loyalty 35
5.2 Culture and Society 37
5.2.1 Culture 37
5.2.2 Society 38
5.3 Financial Influence 39
5.4 Perceived Risk 40
5.5 Product Features and Usage 41
5.6 Adapted five-stage consumer decision-making model 43
6. Conclusion/Discussion 46
6.1 Conclusion 46
6.2 Contribution/Implications 47
6.3 Limitation 47
7. References 49
8. Appendices 59
8.1 Appendix A 59
8.2 Appendix B 59
31. Introduction
1.1 Background
The emergence of mobile phones today and in history proves to be exceptionally unique
in the consumer electronics market as well as the telecommunication market. With this
emergence, mobile phones have witnessed a massive influx in sales worldwide of about
450 million units just in 2013 alone. In comparison to television and PC sales this
proves to be nearly three times the size. Furthermore, what holds responsible for the
fuelling of this growth has been the exceptional evolution of the technology used in the
mobile devices in terms of performance and miniaturization. Consequently, in contrast
to many other technological appliances, consumers on average change their mobile
devices every two years and thus represent 80% of all mobile phones (Antoine, 2003).
According to one study (Shahzad, 2020) in 2013 the sales of smartphones with internet
connection outweighed the ones of the mobile phone devices that were more basic and
common. This fast growth was a clear indication that smartphones are the future and
would have a major market share in the industry of communicative technology. Due to
the great amount of benefits and features that smartphones offer, their sales have an
increase of 100% per year (Kenney & Pon, 2011). Cecere et al., (2015) states that the
emergence of smartphones revolutionized the market for mobile devices and
contributed to the innovation in technological development. Additionally, the
introduction of Apple and Samsung in the smartphone market combined with the
continuous development in technology helped it to establish a vast growth. All these
factors shaped the customers’ preferences towards smartphones and made them the
preferred mobile devices (Cecere et al., 2015).
11.2 Problem
Nowadays, smartphones have already become the most preferred mobile devices in
Sweden. According to Statista (2020), in the year 2018, the smartphone users in Sweden
accounted for almost 8.50 million of the whole population. It is also projected that by
2024 there will be almost 9.50 active smartphone users. Additionally, Svenskarna och
internet (n.d.), states that 92% of the population in Sweden owns a smartphone. These
statistics show a clear indication that the smartphone market in the country is growing
and presents a perfect opportunity for further study. Deloitte (2016), suggests that the
youth use their phones more than the seniors do thus presenting the opportunity to
further deepen the available research of the correlation between young people and the
purchase decisions of iPhones.
Morphitou (2014) suggests that with the emergence of smartphones and the rapid
increase in technology development, students view these mobile devices as essentials.
Smartphones have a huge impact on the lifestyle of students and they tend to interact
with their cell phones quite frequently. According to O’Donnell & Epstein (2019), a
college student spends five to nine hours a day scrolling through their mobile device on
average every day. O’Donnell & Epstein (2019), also claim that students choose to buy
smartphones due to the benefits the devices offer and they use them as tools for
entertainment, quick accessibility, relaxation, browsing the internet and connecting with
their friends through the various social media channels. Additionally, Chan et al. (2015)
suggest that students tend to incorporate their smartphones in diverse ways when it
comes to learning and studying. Because of the fact that mobile phones offer immediate
accessibility to various sources, students can check university databases instantly
(Morphitou, 2014). Due to the enormous number of benefits that these devices present,
students prefer to use cell phones rather than other technological devices like laptops,
PCs, etc. On the other hand, there are also some negative aspects that can affect the
student’s perception when it comes to smartphones. Moprhitou (2014) suggests that the
drawbacks associated with the devices can be a limitation when it comes to accessing
data and problems with their software and hardware. Despite the fact that the
advantages of using smartphones outweigh the accompanying disadvantages, it is
extremely important to note that the purchase of a mobile device should not result in an
unfavourable experience.
2Peer influence plays a major role when it comes to the choices that students make. The
term is related to the interpersonal effect that the youth has among each other (Lee,
2014). Kim et al. (2014) identify that young college students are cautious when it comes
to monetary cost and social influence factors. Aspects like perceived value and
perceived prices also have a huge contribution to the decision-making of students when
it comes to smartphones due to the fact that this group is often regarded to have a lower-
income status compared to the older demographic groups. When it comes to social
influence, factors such as positive self-image and perceived popularity have a huge
influence on the adaption of cell phones by students (Kim et al. 2014). Additionally,
aspects like students’ financial constraints and perceived risk are major influencing
factors to the final decision-making process of electric goods such as smartphones
(Mitchell & Greatorex, 2006).
According to Prasad & Jha (2014), understanding the consumer decision making
process is key to identifying marketing challenges and opportunities. It is crucial to be
able to align the marketing efforts with the steps customers undertake to decide what to
buy. Nagarkoti (2009), stated that in today’s mature smartphone market, users’
behaviour is at least as important as technological capabilities. According to Antoine
(2003), as a result of the evolution of mobile phones, consumption has grown
exponentially alongside it. This growth demonstrates a massive influx in the purchasing
frequency of mobile phones across the globe as newer models are developed each year
thus presenting a challenge to businesses to adapt to consumer purchasing decisions and
tailor their products. Not only does this present a challenge to businesses but more
importantly, to customers. Consumers, on average, change their mobile devices every
two years and they must capture and internalize their next need of a phone before
committing to a decision (Ganlari, 2016).
Customers are extremely complicated thus it is essential for businesses to be able to
generate models that would help to dissect and analyse more efficiently and effectively
each individual part that takes place in the whole buying action. While the internal and
external factors affecting decision-making would vary from person to person and from
situation to situation, the study of consumer behaviour attempts to draw certain
generalizations (Prasad & Jha, 2014). According to Stankevich (2017), marketers and
3consumers both can use a wide collection of varying forms of the consumers’ decision-
making process in order to deepen understanding on influences to product purchase.
The five-stage consumer decision-making process has been historically applicable and
has also served as a basis for a variety of marketing studies. In addition, it is of great
importance when it comes to the purchasing habits and preferences of the customers.
The model comprises five stages starting with the initial stage called need recognition,
followed by information search, evaluation of alternatives, purchase decision, and
finally post-purchase behaviour (Stankevich, 2017). That is why it acts as a backbone
for the theoretical framework of this study. The Swedish smartphone market was chosen
due to the fact that it is rapidly growing each year. Moreover, university students in
Sweden are an important market segment that presents a great opportunity for future
research.
1.3 Case of the Research
In 2007, the phone industry witnessed an event that revolutionized the. Apple Inc.
released their first smartphone which influenced and innovated the smartphone industry
(Boamah & Agbozo, 2017). Today, one of the most commonly seen smartphones across
the globe are Apple’s famous iPhones. With a sturdy build and a reliable operating
software similar to that of its counterparts in the Apple ecosystem, iPhones gradually
gained the respect and trust of its consumers. One of Apple’s identified core
competencies is product innovation (West & Mace, 2007). From a technology
perspective, Apple has used this core competency to develop highly functional and
usable mobile devices. Again, the iPhone has succeeded by focusing on personal use,
while technologically ensuring the iPhone is appealing to both personal and business
users (Liao, 2008). A survey shows that the iPhone is the most popular smartphone
among students compared to any of the other smartphones. From 124 respondents,
27.5% currently own an iPhone (Morphitou, 2014). One key differentiating aspect that
the iPhone holds which provides a level of exclusivity from other mobile phone brands
is their software. The iOS is the name of the operating software in each and every
iPhone today (Steele & Provazza, 2018). It provides an easy layout for users to navigate
through, which creates a large appeal for the average mobile device user. With the
iPhone currently enjoying the highest percentage of the entire profit in the smartphone
4market (Boamah & Agbozo, 2017), they also provide their customers with various post-
purchase services such as the trade in program. Introduced firstly in 2013, iPhone
customers were able to return earlier iPhone models and exchange it for the then newly
introduced iPhone 5 at a certain discount price. This was done with the intention to
capture more demand for the product (Xiao et al., 2020). The consumer behaviour
towards smartphone brands is also a fundamental factor within the Swedish society.
Svenskarna och internet (n.d.) states that the majority of young people in Sweden use
iPhones. In addition, on their website (Statista, 2021) suggests that in 2019 the iPhone
was the most preferred choice of smartphone amongst the Swedish people.
1.4 Purpose
The purpose of this research is to explore the five-stage consumer-decision making
process of university students in Sweden when it comes to smartphones while using the
case of iPhones for the purpose of understanding this. The study is aimed at analysing
the different stages within the process while providing a deeper understanding of the
accompanying aspects that impact them. The paper obtains the customer's perspective,
which in this case are university students in Sweden, in order to better explain the
influencing factors within the different stages of the consumer decision-making process
and provide a deeper insight to the very elements that shape the students’ buying
decision for an iPhone. Since Apple as a company and its product line have been highly
studied, the gap that this paper tries to fill is the observation of the whole decision
making process of the customers regarding their pre-purchase, purchase and post-
purchase behaviour towards Apple’s iPhones. The research question that will be
answered through this research in order to fill the gap in the existing literature is:
“What are the relevant influencing factors that affect the purchasing decision towards
smartphones of university students in Sweden?”
2. Frame of Reference
The literature review of this paper was written with the purpose of providing data about
existing and previous research on the topics of the five-stage consumer decision-making
process of students and relationship between customers and smartphones. The data
gathered from previous studies was systematically summarized and drawn conclusions
5upon while critically reviewing the academic information. The five-stage consumer
decision-making model serves as a backbone of the frame of references so that each part
of this process is thoroughly observed and explored. In addition, two subheadings were
included. One about the influencing factors in order to outline the repetitive behavioural
aspects that we aim to investigate and another one about the relationship between
smartphone products and their users.
The databases that were used to collect academic articles were Business Source
Premier, Google Scholar and Primo, which is a search engine connected to the library of
Jönköping University. These three approaches of gathering scientific materials for the
literature review were selected based on the convenience and familiarity of working
with them. Additionally, the features offered by the databases such as the option of
searching only for peer-reviewed journals contributed to making the literature review
trustworthy. The key search terms used for gathering credible data from previous
research were: “Factors within the consumer decision-making process”, “Smartphone
buying behaviour of students”, “Purchase behaviour of iPhone users”. Consequently,
the results generated were directly connected to the topic and problem of the research at
hand. The academic literature that was used in the paper was saved on an excel sheet
(appendix A)
As a method to increase the trustworthiness of the study, whenever possible, the
Academic Journal Guide by Chartered ABS was used. Journals and articles outside of
the ABS guideline were not excluded as sources of academic data only when the
information within the referenced arguments has been supported by other credible
sources.
The frame of reference that has been generated is based on articles and research in order
to be as accurate and timely as possible with the available information regarding the
specific subject. However, since the backbone of the paper is a model that was created
more than 30 years ago, there were some older articles and studies that were used as a
supporting role for the argumentation due to their valuable contribution to the topic.
62.1 Consumer decision-making process
Over many years, consumer decision making has become an increasingly appealing
issue within the marketing world. This is because, the ability of knowing the very
reasons to why and how consumers make decisions prior to a purchase aids companies
in developing their marketing strategies to better suit the market (Stankevich, 2017).
Among the wide variations of the consumer decision making process, the traditional
five-stage decision making model will serve as an efficient tool to break down the very
elements behind decision making (Figure 1). According to Stankevich (2017), the five-
stage model serves as a base for more modern concepts as it highlights the “moments
that matter” in the process of decision making for consumers. Additionally, it serves as
a backbone for marketers to understand steps required in moving the customer to
actually buying products and aids in the business transactions between customers and
businesses and proves to be an ideal model for use today. The idealized structure and
model of the process of each consumer's decision making is historically illustrated as
five basic stages beginning with the initial intent of purchasing a good to finally,
physiological factors that influence the consumer after purchase (Longart et al, 2016).
Figure 1
Traditional five-stage consumer decision-making model
Note: Adapted from “Explaining the consumer decision-making process: Critical
literature review” by A.Stankevich, 2017, Journal of International Business Research
and Marketing, 2(6). Copyright 2017 by Literature Publishers.
The initial stage of this complex process of decision making is a crucial stage to which
the consumer must initially distinguish their desire for a product to be either an actual
state or a desired state and determine what aspect are in the end affecting what they
want in the product (Stankevitch, 2017; Bruner & Pomazal, 1988). Once the first stage
has been determined, the second stage focuses on the information to which the
7consumer will then acquire on the product (Longart et al, 2016). Here, during
information search, there are several elements that come into action and determine the
quality of the search; structure of the information search, the method and type of
information search, whether the search is external or internal and how extensive of a
search was done (Hoyer & Maclnnis, 2003). As said by Hauser (2014), then consumers
with the information gained from this stage must make a decision through a process
known as a consider-then-choose process which brings them to the third stage of their
decision making. The evaluation of alternatives stage is where consumers have the
ability to narrow down their selection set to which they are considering. Here, various
attributes of the set of products can be examined in order for the consumer to make a
clearer picture of which product to choose (Longart et al, 2016). With a decision of a
product made, consumers will then move forward with the decision of purchasing that
product and finally experiencing post-purchase behaviours. Schifferstein and
Zwartkruis-Pelgrim (2008), argue that once the product has been purchased, depending
on the strength of the bond to which consumers develop with the product (consumer-
product attachment), any further actions may be taken. With a weaker consumer-
product attachment, a consumer can fall into a state of cognitive dissonance which is a
state of mental discomfort (Kotler & Keller, 2012). To tackle this, consumers may
either pursue a journey to find information that motivates their purchase decision or
may return the product (Sharifi & Esfidani, 2014).
2.1.1 Need Recognition
As mentioned previously, the pre-purchase stage of the consumer decision making
process initiates with identification of the type of need to which the individual aims to
satisfy (Bakshi, 2012; Bruner & Pomazal, 1988). This initial stage of the process must;
by the consumer, be internalized and materialized in their minds before any decision is
made. Here, motivation is an important characteristic that affects consumer buying
behaviour. Every individual has varying needs which are specific to them, such as
physiological needs, social needs. Some may be more urgent in comparison to others
which may be less (Babin & Harris, 2015). Ultimately a distinguishing difference must
be identified between the actual state and the idealized state of their affairs in order to
aid the direction of the decision (Bakshi 2012; Hawkin et al., 2001).
8In understanding one’s needs, there are three main factors that come into play.
According to (Bruner & Pomazal, 1988) and (Workman & Studak, 2006), there is one
subgroup of factors that affect the desired state of needs and a subgroup of factors that
affect the actual state of needs. Additionally, there is a third subgroup of factors that
affect in fact, both states of affairs. Consequently, once the individual has recognized
the problem and realized the state to which their need exists they have developed a
discrepancy between the two states and can then move forward with the process
(Workman & Studak, 2006; Bruner & Pomazal, 1988). Although an individual has
developed a discrepancy in between the two, for various psychological reasons, often
times they engage in a string of denial thinking such as “I do not need it at this moment”
or “The one I have works fine now so I don’t need a new one” and can distort their
perception on the decision or terminate the decision as a whole (Workman & Studak,
2006). Once the discrepancy has been identified and understood, only then can the
individual recognize this need and thus move forward to their actual consumer problem
recognition. This is also known as the initial stage of the consumer decision making
process and often occurs simultaneously with problem delineation (Workman & Studak,
2006; Bruner & Pomazal, 1988). An example of a problem delineation is when someone
realizes that (for the case of this study) their mobile device is broken, thus they need a
mobile device and are willing to buy a new one with an actual state or desired state thus
moving them forward to the next stage of the process “Information search”
(Stankevitch, 2017).
2.1.2 Information Search
After the consumer has successfully been able to identify and recognize their personal
needs whether it be actual or desirable, they begin with an internal form of information
search. This process is merely the consumer recollecting “decision relevant”
information in the form of memories before evaluating alternatives. These forms of
internal information may be acquired from sources such as repeated exposure to low
involvement marketing in the form of basic advertising. (Grant et al., 2007; Crotts,
1999). However, when a consumer is experiencing that internal information search is
proving to be inadequate, oftentimes they move towards a more external form of
information search. This type of information search relies on the level of initiative a
consumer is willing to put in for the purpose of gaining additional information on the
9product in mind and can be obtained through various sources with the largest one being
the internet (Grant et al., 2007; Hawkins, 1995). The external information search
process of decision-making is in fact the most complex form of information search as
there are several factors affecting the information gathered. According to Peterson and
Merino (2003), external information search is portrayed as consisting of two major sets
of activities; (1) general, ongoing, continuous or regular activities and, (2) goal-
oriented, pre-purchase or problem-solving activities. They further state that external
information search is done with the purpose of minimizing risk and uncertainty in the
consumer’s mind.
In understanding the reasons for external search, it is important to explore what the cost
of online search is in regards to making a decision (Rose & Samouel, 2009). In the
model developed by Shim et al. (2001), the cost-benefit paradigm is viewed as a risk
reducing exercise. The higher the level of efficiency seen in the internet search
conducted by consumers, the lower the cost of a certain product they can reach upon,
thus creating an incentive for consumers to indulge in extensive external information
search. Although search costs online are perceived as next to nothing and even decrease
the final cost the consumer will pay from a vast number of alternatives, Punj and Staelin
(1983), state that search costs continue to have a negative effect. This is due to the fact
that search costs, in many cases, are looked at in terms of perception rather than reality.
Simply put, it is important to know whether it is essentially “worth it” putting in
extensive amounts of information search and investing one's time for certain products.
Once the consumer has satisfied their information search needs whether internally by
remembering repetitive advertising or through extensive online search, they can focus
on the set of products, to which they are willing to choose from with the consider-then-
choose method where they will be evaluating the alternatives (Hauser, 2014).
2.1.3 Evaluation of alternatives
Consumers who successfully identified key areas within the previous two stages of the
model often find themselves still faced with a relatively wide range of options to choose
from and require a tactic to narrow down these options to a select few in order to make
the decision simpler. This is most commonly done through a consider-then-choose
approach which involves them choosing a set of products, then considering a set/evoked
10set for further evaluation, and finally making a decision from that set for purchase
(Hauser, 2014). As mentioned previously, this stage of the process highly involves
individual heuristic measures for the decisions they make.
First, looking at the utility that a consumer derives from each product in mind, prior to
further evaluation it is considered to be a variable that is random. If this process has
been done effectively, consumers will be able to create a consideration set so that better
and satisfying products would have a higher chance of being included (Hauser, 2014).
Taking a closer look into areas that affect the level of utility that a consumer may gain
from a product can be categorized into six areas of heuristics; conjunctive, disjunctive,
subset conjunctive, lexicographic, elimination by aspect, and disjunctions of
conjunctions (Hauser, 2014).
- Conjunctive: Here a consumer with a conjunctive view on consideration, tends to
identify products that meet at least one major satisfying aspect of a product. This view
applies to either a single aspect that a product “must have'' or rather a single aspect that
a product “must not have”, in order for the consumer to consider the product for their
set (Hauser, 2010). For example, in the case for mobile phones, a consumer with a
conjunctive view may decide that a phone they are aiming to purchase must include a
fingerprint scanner or vice versa.
- Disjunctive: A consumer with a disjunctive view on consideration, in contrast to
conjunctive, has a tendency to consider a product which instead has at least one major
element that satisfies the “excitement” aspect for the consumer. This view applies to
any form of product with at least one crossover element making the product unique
(Hauser, 2014). For example, a consumer with a disjunctive view may select mobile
phones that have been launched as limited editions where a celebrity’s signature may be
imprinted on or a limited colour may be applied.
- Subset Conjunctive: This view of consideration, similar to a conjunctive one,
involves consideration of a product that either has a “must have” or “must not have”
element. However, in contrast to the conjunctive view of having one, the subset
conjunctive view includes a number of either “must have” or “must not have” elements
but not a combination of them (Hauser 2014). For example, if a consumer is looking for
11a mobile phone, they may have in mind that the phone must have a large size and must
have a yellow colour.
- Lexicographic: A lexicographic view on a consumers’ consideration revolves
around the element of ranking. Here, a consumer ranks each aspect of a product in a top
to bottom fashion. They start with the type of product and rank a variety of products
falling under that type, then the shape, colour, size, etc. (Hauser, 2014). For example, a
consumer using a lexicographic view for mobile phone consideration, may start with
ranking all phones in the fashionable group, then move forward to all that have the
colour red, then all that have high end cameras before finally making a decision.
- Elimination by aspect: A consumer that is using an elimination by aspect view of
consideration, will initiate this process by first selecting an aspect that the product they
wish should not have. They then eliminate all products with that aspect, and continue
the process by repeatedly selecting aspects and eliminating until they have reached a
final consideration set to which they can make a decision from (Hauser, 2014). For
example, a consumer with this view may begin with selecting a mobile phone aspect
such as colour and repeatedly eliminate phones with unwanted colours, then selecting
an aspect such as physical home buttons and repeat the process until they have reached
a consideration set of mobile devices to which they may choose from.
- Disjunction of Conjunctions: Finally, the disjunction of conjunction view of
consideration includes a consumer’s choice to include a combination of “must have”
and “must not have” elements in a product (Hauser, 2014). For example, a consumer
with this view may have in mind that a mobile phone they are looking for must have a
green colour, high quality front camera, and a home button, but must not have a wide
screen.
With a concrete understanding of each of the different heuristic views to consider, a
consumer ultimately narrows down their options to a select few in order to make the
most satisfactory decision. Once the consumer has been able to do this, they proceed by
selecting a product which matches all their needs and wants and can then move forward
to the purchase decision.
122.1.4 Purchase decision/behaviour
The purchase decision is mainly influenced by the previous stages of the consumer
decision-making process. In their book Kotler & Keller (2012), discuss the fact that it is
the evaluation of alternatives stage that has an impact on the purchase decision and
intention of consumers when it comes to different brands. Shrestha (2016) states that
this stage of the consumer decision-making model serves as the end goal of the
customer. According to Stankevich (2017), customers make purchases to satisfy their
needs and meet their demands. Additionally, a consumer can begin the process of
making a decision on a given product but change their mind. This is due to the fact that
customers usually make sub decisions. As identified by Kotler & Keller (2012), there
are several such decisions that consumers can go through which are brand, dealer,
timing, payment method and quantity. Mitchell (1992) gives a more thorough
explanation of these decisions while identifying the risk connected to them. For
example, it is identified that depending on the product these decisions will differ in
terms of their significance. When it comes to smartphones these five aspects can be
projected as follows: Brand (iPhone), Dealer (Apple store), Timing (during the week),
Quantity (one), Payment Method (Debit Card). These choices are evaluated by the
customers since each one of them carry some sort of problems that may arise. Since
smartphones are not considered nondurable products or products that require low
involvement and simple decision-making process, the time spent on shaping and
constructing the decision can take longer before the actual purchase of the product. For
more complex products consumers spend more time to come up with the most efficient
choice (Stankevich, 2017).
As described by Ganlari (2016), the purchase decision stage of the consumer decision-
making model can be influenced by preferences towards a specific brand and the
opinion of family, friends and reference groups of the customer. In addition, the study
also supports the notion that consumers often base their purchase decision towards
smartphones on the year the product was introduced to the market. According to one
study (Shrestha, 2016) potential buyers prefer to purchase the latest introduced
smartphones due to the technological development and advancement in the variety of
available features. Brand loyalty can have a huge impact on the decision-making due to
the fact that most consumers that are loyal to a given brand like Apple, are likely to go
13back to it (Ganlari, 2016). Usually when it comes to smartphones people base their
buying decisions on the attributes and benefits that the product provides, however,
customers that are loyal to a brand feel that their needs are satisfied and hold on to its
offerings and services. A prior research suggests that the information based on prior
experience with a product and brand perception through advertising and ad-beliefs have
a significant influence on the customer’s buying decision. The way companies advertise
their products can also form unconscious beliefs that affect the buying behaviour
(Solomon et al., 2006; Smith, 1993).
Kotler & Keller (2012), identified two types of intervening factors that can influence the
transition from purchase intention to purchase decision. The first factor is based around
the attitudes of others. The level of influence of this factor depends on the degree to
which another person has negative views towards the brand or product selected by a
customer and the decision of this customer to agree and take into consideration the
opinion of the other person. In addition to that, Madinga & Dondolo (2018), suggest
that the people within the same social circle can influence each other's purchasing
decisions. Kotler & Keller (2012) discusses the second intervening factor as
unanticipated intervening situational factors. These are factors that arise from an
unexpected situation that changes the purchase intention of customers. Chen & Chang
(2012), identify time availability and cash flow problems to be unanticipated factors.
When it comes to smartphones, the both intervening factors have a high level impact on
the purchase decision. If the product can’t be purchased, there is an important risk to be
considered.
2.1.5 Post-purchase behaviour
Post-purchase behaviour is the final stage of the five-stage consumer decision-making
process and it is also known as the stage of customer satisfaction/dissatisfaction.
According to Stankevich (2017) it is at this part of the decision-making model where
consumers have already bought a product and then evaluate their purchase. Customers
review and analyse the item bought whether it met, exceeded their expectations or did
not fulfil their demands (Ganlari, 2016). Consumers incorporate the item purchased into
their daily routines while simultaneously assessing its usefulness and benefits (Solomon
et al., 2006). The post-purchase stage can have a substantial influence on both the
14customer that owns the product and future potential consumers that are seeking
information for it. According to Stankevich (2017), the positive satisfaction of a
purchaser can lead to repurchasing. However, if the demands were not fulfilled and the
promises made were not kept this can result in negative consequences and affect the
decision-making process of potential clients. In addition to that, Ganlari (2016) suggests
that in a situation of disappointment customers will most likely seek alternatives to
minimize their dissatisfaction and can also replace the product. The author also includes
a smartphone perspective in their research. The feedback whether it is positive or
negative with regards to a purchase of a smartphone will have an impact on the buying
behaviour of other customers.
Kotler & Keller (2012) identified that the correlation between expectations and
performance can be referred to as a gap. The size of this gap determines the level of
satisfaction and dissatisfaction. In their after-purchase activities, consumers can also
experience cognitive dissonance. According to Sharifi & Esfidani (2014), cognitive
dissonance refers to the part when customers evaluate the alternative products after
purchase where there is probability that they may feel inconvenience since they had to
select among other products. This is applicable especially when it comes to expensive
and complex products. For example, when it comes to smartphones, a consumer may be
involved in activities where they compare different products, think of replacing the item
purchased with another one or just switching to another brand. In addition, emotions
connected to regret may arise. Previous research suggests that the feeling of regret has a
detrimental impact on the degree to which a customer is satisfied which leads to
negative consequences in terms of product repurchase (Bui et al., 2011). If experiencing
a cognitive dissonance, a customer will always try to minimize it.
2.2 Influencing Factors
2.2.1 Social Factors
In order to be satisfy their feelings of belonging, people tend to associated themselves
with certain groups. Individuals tend to look and mimic each other’s moves to fit into a
social group. These type of groups have norms and there are also sanctions to guarantee
stability. Additionally, rewards and punishments are used to make people follow the
norms and behave in a certain way (Nagarkoti, 2014).
15Word-of-mouth (WOM) can have a huge impact on the decision making process when
it comes to external influences. According to Tuškej et al., (2013), a customer who
shares the same values as a given company tends to promote and recommend their
products to others which is an example of positive WOM. When it comes to social
groups there are many types, but the most common primary groups are family, friends,
neighbours and co-workers in which there are continuous but informal interactions. As
stated by Commuri and Gentry (2000): “Family as a consuming and decision-making
unit is a central phenomenon in marketing and consumer behaviour”. For many
consumers, family is the most important social institution that strongly influences the
buyer behaviour, values, attitudes and self-concept. Secondary social groups include
religious, professional and trade unions groups where there are more formal and less
regular interactions (Kotler & Keller, 2012). When it comes to Generation Y (82% of
smartphone users), a previous study (Madinga & Dondolo, 2018), found out that friends
within the same social circle have the highest impact on the purchase decisions of
individuals within this specific generation.
Reference groups are those groups that have a direct and indirect influence upon a
person’s attitudes, aspirations or behaviour. Within the reference groups, people who
exert influence on others because of special skills, knowledge, personality and other
characteristics are known to be opinion leaders (Kotler & Keller, 2012). Because of the
enormous growth of social media and other online content sharing platforms, nowadays,
opinion leaders (influencers) have even wider possibilities of affecting the consumers’
opinions regarding specific products. When talking about smartphones, there are
millions of so-called “Unboxing videos” in which many influencers analyse and even
contrast competing devices with all their features and give a suggestion at the end,
which one you should buy.
2.2.2 Price Factors
According to Samuelson (2009), the price is a factor that is determined by the
interaction between demand and supply in the factors of production. Price can
determine where the consumer will trade with a product and will always be the key
factor consumers will consider before making any purchase decision (Nagle et al.,
2016). There are two types of product price. The products that have high prices are
16referred to as market brands. When it comes to low-priced brands, the focus shifts into
more of a utilitarian value, which means that the users pay attention to the perceived
value and the price that comes with it. Even though most typically, the case is that
consumers seek to find the lowest possible price that will correlate to the best value that
they aim to receive (Swani and Yoo, 2010). Price is considered by Karjaluoto et al.
(2005), as a critical factor affecting the choice of Smartphone among young people.
Similarly, Kabadayi & Aygün (2007), assert that mobile phone customers have
perceived price as a significant indicator of product quality, whereby high price
indicates advanced technology, design, and improved features. In a study carried out by
Malasi (2012), price is described as a determining factor in shaping the future purchase
habits of young consumers. Price could be said as the most influential factor affecting
the purchase of a new mobile phone (Singla, 2010; Worlu, 2011). As stated by Chow et
al. (2012), there is a positive effect that is observed between the price and the
behavioural intentions of the consumers because price has the capability of establishing
an image within the perception of the users.
2.2.3 Perceived Risk
Perceived risk can influence and cause changes in the decision-making of customers.
Previous literature claims that perceived risk can be identified as a consequence of
beliefs of uncertainty associated with negative outcomes. Thus, the customer’s views of
risk can be considered fundamental when it comes to purchasing behaviour (Campbell
& Goodstein, 2001; Liao et al., 2010). Solomon et al., (2006) explains that perceived
risk can be present if a product has a high level of involvement, if it is expensive and if
the potential buyer is unfamiliar with the brand at hand. Smartphones are complex
products, especially the ones that are more expensive and require extensive search.
Existing literature, identified six types of perceived risk. Firstly, the functional risk
which is connected to the performance of a product having negative results. Physical
risk which is related to the potential harm that a product may have on someone’s well-
being. Financial risk which is about the price of the product not matching the
expectations. Additionally, the social risk which can be a result of the negative
consequences a product can have on a person’s image and reputation. Psychological risk
which is connected to the unpleasant aspects of a product that can cause harm to the
mental health of a given person. Finally, the time risk which is related to the arising
17inconvenience, waste of time on a product and potentially losing the opportunity of
finding a substitute which meets the demands of customers. (Kotler & Keller, 2012; Lin
& Chen, 2009). These six risks may not be applicable to all kinds of purchases.
However, for more complex products the majority of them can be taken into
consideration. Based on a previous study, it is important to mention two elements of
perceived risk in the case of smartphone adoption. Firstly, the perceived financial risk
refers to potential financial expenses that may arise during the process of adoption and
usage of the smartphone. Secondly, the perceived device risk which is connected to the
accompanying risks when it comes to the performance of the smartphone and its design
aspects (Kim et al., 2015). Despite the fact that those two elements of perceived risk can
affect the intention to use a smartphone device, they can also influence the intention to
purchase the device as they are found to be important factors that can negatively impact
the adoption process.
2.2.4 Brand Loyalty
Boakye et al., (2018) identifies customer satisfaction as the key means of achieving
loyalty and establishing relationships with buyers. In addition to that, the feeling
associated with this phenomenon is directly affected by the product quality, price and
personal aspects. As explained by Sharifi & Esfinadi (2014) customer satisfaction is a
prerequisite for brand loyalty. The cost connected to attracting new potential clients is
relatively higher than the one associated with customers that are already loyal to the
brand. Consequently, by constantly buying products from the preferred brand, loyal
consumers help expand the presence in the market of companies (Su & Chang, 2018).
In the existing literature about consumer behaviour, it has been discussed that higher
levels of satisfaction translate to higher levels of brand loyalty (Jamshidi & Rousta,
2021). It has been suggested that there are two types of brand loyalty. Behavioural
brand loyalty is related to the repurchase of products associated with a specific brand.
While attitudinal brand loyalty is connected to the customers' insights of psychological
commitment in the process of the purchase. The second notion emphasizes on the fact
that a customer may not repeat the purchase but instead can positively influence the
customer journey of other potential buyers (Su & Chang, 2018).
18Users prefer widely accepted brands of smartphones as they reflect a unique status
symbol (Laugesen & Yuan, 2010). In recent light, a study conducted by Liaogang et al.
(2007), discovered that one of the key factors that shaped the purchasing behaviour of
the youth proved to be the brand. Additionally, Keller (2007), mentioned that branded
products success stems from creation of brand awareness by reaching the consumers
mind, thus leading to a preference of a specific brand. Stankevich (2017) states that if
the needs and expectations of a buyer are met, then they may become brand
ambassadors and have a positive impact on the consumer journey of other people when
it comes to that specific product. Previous research (Mugge et al., 2010) suggests that
there is an important distinction between customer satisfaction and product attachment.
Product attachment arises from the emotional connection that a customer has with a
given product which leads to the formation of a bond between them. While customer
satisfaction is identified as an evaluative tool based on the cognitive review of the
product and the consequences through the process of consumption.
2.2.5 Product Features
Product features are those attributes which are related directly to the product its self.
The level of satisfaction within the consumer is determined depending on how well
these product features met their needs and wants (Kotler and Armstrong, 2010). In
modern day, consumers have become more aware to the variations of product features
and how they affect the level of satisfaction differently among others (Chow et al.,
2012). Mobile phones are equipped with many useful features, including media players,
online banking, camera, web browsing, child-location, call-management, Bluetooth,
voice command and millions of applications that could please the needs of any
consumer (Mokhlis & Yaakop, 2012). Almost every smartphone nowadays possesses
the attributes mentioned above but it depends from the operating system of the device
on how they will be delivered. Operating systems of smartphones are of great
importance when customers are choosing amongst mobile devices since each operating
system has its own exclusive personality and background. Consumers select
smartphones based on the specific features that will give them benefits, which would
engender specific outcomes that are supportive of personal values. Consumers use
attributes (features) to make a comparison between competitive brands and marketers
19should take cognizance of product features as it can determine consumers’ purchase
behaviour (Juwaheer et al.,2014).
2.3 Smartphone usage and customers
According to Rashid et al., (2020), smartphones have already established themselves as
a huge part of the modern culture due to the various ways an individual can use them.
The many different usage patterns of smartphone users are highly influenced by the fact
that these mobile devices support people’s daily routines. Previous research (Bruns &
Jacob, 2014) suggests that by having a more active role, smartphones allow consumers
to decide how to use their mobile phones themselves which leads to the creation of
different goals such as networking, entertainment, etc. It is interesting to understand that
a mobile device allows its consumers to engage with it in so many ways and according
to their preferences and taste, while providing beneficial outcomes.
The convenience provided by the smartphones also plays a key role in terms of usage.
Ting et al. (2011) claims that due to the fact that people can use their smartphone
wherever and whenever they want, it increases the usage rate of smartphones. In
addition, Barker (2018) suggests that smartphones are mainly used as sources of
communication. As the previous research indicated that sending messages and online
access are two of the most significant ways of using mobile devices. In addition to that,
it has been explained that social media plays an important role in the daily routine of the
teenagers. Social needs are the drivers of the communication between people. Based on
previous research (Ting et al., 2011), it is explained that smartphone usage is directly
connected to the level of needs a person expresses to socialize and communicate.
Despite the fact that it is applicable to society today, the way people use these mobile
devices are not strictly connected to the purposes of communication. Customer trends
play a major role when it comes to how people use their smartphones. It is explained
that these trends can be connected to acceptance of technology and affordability.
Additionally, the acceptance of new technology is based around the behaviour of the
customers, their socioeconomic status, influence of external and internal means of
communication, complexity and benefits offered of acceptance (Rashid et al., 2020).
Rashid et al., (2020) explains that when individuals grow up, their perceptions change
about smartphones as well as their usage patterns. As late as 2020, Rashid et al., found
20out that smartphone users within age groups 18-24 and 25-34 mainly make use of their
mobile devices by networking and collecting information. According to the same study
(Rashid et al., 2020), gender also plays an important part when talking about
smartphone usage. The research found that generally males tend to prefer phone calls,
as well as means to connect with other people as the most often used features of their
smartphones. Additionally, this specific gender group does not regularly utilize all the
features within a mobile device. When it comes to the second gender group in the study,
females tend to use SMS, social media apps, camera and internet more than the males
(Rashid et al., 2020). Soukup (2015) identified several themes when it comes to
smartphone adoption. For example, the author explained that in the sectors of education,
business and health smartphones have already established themselves as beneficial. In
addition, journalism, gaming, and daily living are also influenced by the adoption of
mobile devices. All these themes can be viewed as a way of incorporating the use of
smartphones.
According to a research made by Saif et. al. (2012) regarding the factors that would
affect the choice of mobile phones, new technological features are the most important
motivational factor that affects the user to reach a purchase decision. Karjaluoto et al.
(2005), pointed out that price, brand, interface, and properties tend to have the most
influence that affects the actual choice when it comes to mobile phone brands.
Furthermore, Pakola et al. (2010) investigated consumer purchasing motives in cell
phone markets, and their study revealed that price and properties were the most
influential factors affecting the purchase of a new mobile phone.
3. Methodology, Method and Ethics
3.1 Methodology
3.1.1 Research paradigm/philosophy
According to Collis & Hussey (2014), the research paradigm is connected to the
philosophical nature of the way a research is directed. The authors also explained that
there are two main paradigms that are used when conducting a research which are
positivism and interpretivism. In the case of this research, the paradigm selected is
interpretivism in order to answer the research question in the most accurate and
21effective manner. The notion of the chosen paradigm comes from the fact that the
reality is viewed as subjective by individuals. Additionally, interpretivism aims at
exploring a given phenomenon while providing a more in-depth interpretative
understanding about it (Collis & Hussey, 2014). The purpose of this study is related to
the nature of interpretivism as philosophy. It is focused on exploring the factors that
shape and influence the different stages within the consumer-decision making process
of university students in Sweden, while taking a qualitative method of data collection.
By doing that, the research will allow a better understanding of the phenomenon and
provide a subjective point of view based on the empirical findings.
3.1.2 Research approach
Furthermore, specific methodologies were used to provide the correct literature review
accurately. One of the more common approaches that is used within a qualitative study
is the abductive approach to reasoning. The reason behind that is that it aims to explore
and further modify the traditional five-stage consumer decision making process by
implementing influencing factors gathered in the findings into a model. This is
highlighted by Saunders et al. (2016), where they explain the abductive approach as a
way to explore and modify existing theories. The purpose behind using an abductive
approach was for utilizing the traditional five-stage consumer decision making model as
a base for understanding influences towards the purchase of smartphones in the case of
iPhones. This approach allowed for the paper to gain relevant data on these specific
factors and further implement them in the decision-making model thus modifying it
with a new light on its understanding.
As mentioned by Crowe et al. (2011), a case study approach to a research is useful
when there is an aim to obtain in-depth understanding of an issue, phenomenon or event
of interest in a real world context. In the case of this paper as the purpose states, the
consumer decision-making process would be investigated within a specific scenario, in
which the focus would be on gathering more information towards the purchase decision
of Swedish students using a single-case study approach. The data that is desired to be
obtained would be, what do students go through when buying Apple’s iPhone and,
through the empirical framework that is generated, the influencing factors within the
process stages would be discovered and analysed. The reason behind the choice of this
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