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HC1062 Decision Making and Problem Solving Assignment
This is a solution of HC1062 decision making and problem solving assignment in which we discuss mobile telephones and a flat world, mobile telephones market, consumer behavior, research methodology and data collection and data analysis.
The mobile phone market has been growing tremendously and with the introduction of Smartphone’s in the market it has changed the communication philosophy in the world. The volume sales of Smartphone’s exceeded the previous generation phones in the year 2011 as consumers started adopted advanced features and applications which allow them to communicate faster (Euromonitor International, 2012). There are many companies that are operating in Australia and offers variety of features, schemes in order to gain the customers.
There are many things which make the mobile phone market complex such as price, quality, different features, and brand etc (Horst et al, 2006). The features can be segregated into two, one being core features such as voice calling, short messaging service etc and other being secondary features such as camera, internet availability, different software applications etc. The price of the product plays an important role along with quality of the product (Ling, 2004). The price is often associated to quality and the brand of the mobile phone significantly affects the sales of the product in the market. The launch of Apple iPhone 4S in the Australian market increased volume share of Apple to 45 % in 2011 from 37 % in 2010 (Marketing Magazine, 2012). The different companies offer the product with different features and price and are increasing their presence in Australia.
2. Literature Review
2.1 Mobile Telephones and a Flat World
Mobile telephones are used for variety of purposes and that were invented to act as a communication link between two people. The mobile telephone was developed as a voice calling device but since its inception it is more than it and has developed into a communication device (Ling, 2004). The integration of many technologies in the mobile telephones has led to new wave of communication and developed as multipurpose device. The mobile telephone subscribers have been growing at an exponential rate and the mobile phone companies are investing huge in the research and development of the mobile telephones. The mobile telephone has reduced the gap between the people and indeed has made the world as a Flat World (Horst et al, 2006).
2.2 Mobile Telephones Market
There are many players in the mobile telephone market and Samsung, Nokia, Applet, HTC and LG are the leading players. Currently, the mobile handset market is governed by Smartphone’s in which uses are provided with enhanced features and operating systems like Android (Roxas, 2011). The Nokia has seen a decline in the market share in Australia in the mobile telephone market and the intense competition between Samsung and Apple has taken the market to new generation. The introduction of smart phones and with enhanced features including camera, internet and Bluetooth has not only increased the sales of mobile telephones but also has decreased the sales of other products like camera (Mobile Industry Group, 2012).
The Google Android has taken over Apple’s iOS in Australia and nearly three in five people in Australia are Smartphone owners above the age of 16 (Marketing Magazine, 2012). Android growths is affected only when there is new iPhone release and before and after the Android market shares are seen as growing at inclined rate in Australia.
The access to greater range of services and applications through Android has toppled the market of iOS in Australia and it is seen the IPhone owners are those who lie in high income group and can own an iPhone (Roxas, 2011). The Nokia market has been declining since the introduction Smartphone’s and Samsung gained the major market share at the same rate.
2.3 Consumer Behavior
The consumer behavior affects the purchase decision and helps in making the purchase. There are nearly 59 % of the people below the age of 16 who are Smartphone owners and the market consumer is getting more and more choices in the same price range (Marketing Magazine, 2012). The Price of the mobile telephone is the strongest factor that affects the purchase decision and that also affects the customer liking and disliking towards a specific mobile telephone (Munusamy et al, 2010). There are new features such as Camera and internet access that affects the decision for a purchase. Also, as the technology is changing at the faster rate the integration of other technologies in the mobile device will also affects the consumer to make a decision (Munusamy et al, 2010). The consumer liking towards Samsung and iPhone will shape the intense mobile Phone market in Australia in the future. Along with HTC and other brands would see a surge in the market share which would attract more and more consumers.
3. Research Methodology
3.1 Research Design
The study is carried out to understand the mobile telephone preference of people. This study would focus on descriptive research methodology and help us to achieve our research objectives (Creswell, 2013) & understand the choices of the people and their preferences related to mobile telephones.
3.2 Research Objectives
The research objectives of the research would include:
- To know about preference levels associated with different mobile telephones.
- The various factors responsible for choosing a specific mobile telephone.
3.3 Sample Size
The sample size would be 50 respondents and the people would be known to us such as friends, family or at work.
3.4 Data Collection
The primary data is being used in the form of questionnaire (Crowther et al, 2012) which would help us understanding the various factors responsible for choosing different mobile telephones and which suffices all research objectives
The secondary data analysis has been done through various journals, academic articles, newspapers, research papers, text books and various internet sites which would help us to understand the data and present us with some conclusion (Frenz et al, 2009).
People choose a specific mobile telephone because of extra features such as more software applications, camera etc
4. Data Collection & Analysis
4.1 Primary Data Findings and Analysis
Q: 1 Please mention your Age and Gender
The age and gender of the respondents is shown in the figures above. There are around 58 % of the respondents who are below 25 years of age and of which 26 % are below 18 years of age. There are only 10 % of the people who are above 55 years of age. Also, there are 68 % of the respondents or 34 people out of 50 are male who have filled up the questionnaire and responded to the questions and 32 % of them are the female population.
Q: 2 please mention your Occupation and Annual Income
There are 24 % students and 28 % business people who participated in the survey along with other occupation like service class people and professional. There are 12 % people who are in others category. Also, there are 42 % people whose annual income is less than 35,000 A$ and there are 74 % people whose annual income s less than 55,000 A$.
Q 3: How long are you using the mobile telephone?
The figure below shows the for how long they have been using the mobile telephone and 40 % people responded they have been using the mobile telephone for last 2 to 4 years. Also, there are 28 % of people who have been using the mobile telephone for last 1 to 2 years. There were 8 people each who lied in the category of less than year and above 4 years respectively.
Q 4: What Mobile Telephone would you like to have?
The above figure shows the preference of the people towards the various phones in the market overwhelmingly there are 62 % of the respondents who would prefer Smartphone to have. The importance of Smartphone is increasing and hence it is the reason the demand and market of Smartphone’s is increasing. Also, there are 24 % of the respondent who believe they would prefer luxury fashion phone while flip phone and slide phone is preferred by only 10 % and 4 % of the people.
Q: 5 What size of handset you prefer?
The size of handset is important which governs the user preferences and liking or a mobile telephone. There are 44 % people or 22 out of 50 people who prefer large phone and small and medium mobile telephones are being preferred by 26 % and 30 % of the people respectively. The companies have started manufacturing mobile telephones which are large in size and people preferences have changed since Smartphone’s have entered the market.
Q: 6 Please rank the below options you consider based on their level of importance when choosing a mobile telephone?
The respondents were asked to rank the various options they consider are important for choosing a mobile telephone. The Rank 1 was marked by 36 % people to Price and Extra features were also marked as Rank 1 by another 36 % respondents. The quality and brand are also important factors but not as important as price and extra features in the mobile telephone. The application store is the number of software application and that was also considered important as the most important factor by 10 % of the people.
Q: 7 Which extra feature you consider is the most important for you in the mobile telephone?
The camera is considered important by 36 % of the respondents and the integration of camera with the mobile telephone has been one of the factors responsible for increasing the sales of mobile telephones. Also, with the internet options available for the users it has been also one of the significant factors for the sale of mobile telephones and customer preferences as 24 % people consider it as the most important factor. Apart from this Games, AV player are other features which were considered important by 16 % and 18 % of the people.
Q 8: How important is design and Style of a mobile telephone as opposed to functionality?
The style and design of the mobile are the external features that are important and shape the customer preferences of the mobile phones. 42 % of the people consider is very important factor and 22 % considering it as fairly important. Hence, this is another factor that affects the customer preferences and hence there purchase decision.
Q 9: What is the most important part of Design and Style of a mobile Telephone?
The touch screen is considered as the most important part of style and design of the mobile telephone by 50 % of the respondents. Also, weight is considered important by 12 people out of 50 while screen size is considered important by 16 % of the total respondents. The color is the least important factor considered important as only 10 % of the people believe it is the most important part of style and design.
Q: 10 Please rate the mobile telephones as below?
The Apple’s iPhone 5s is in direct competition with Samsung 4 as 36 % of the people have ranked 1 for the Apple’s iPhone 5s while 34 % of the people have ranked Samsung 4 as Rank 1. Also, Nokia Lumia 1020 is recently introduced so this can be one of the factors of its low rating as compared to iPhone and Samsung 4. The above figure also shows the other mobile handsets such HTC 1 4G is giving tough competition to Apple and Samsung and gaining ground in smart phone market.
Q: 11 What would you be willing to pay for a mobile telephone?
The 46 % of the people responded that they would be willing to pay between 150 and 350 A$ and they consider it is the right price of mobile telephone in this category. Also, there are 22 % of the people consider paying less than 150 A$ and they might be price sensitive customers or they consider the mobile phone should not be more than 150 $.
4.1.1 Hypothesis Testing
The hypothesis developed as part of the research related to the people decision of choosing a mobile telephone because of extra features is found to be true. As we see in result in primary data analysis for question 6, price and extra features are considered as highly important factor while choosing a mobile telephone. This confirms extra features are significant for consumer to prefer one mobile telephone over other. Also as in Question 7 as part of Primary Data analysis, we found Camera is the considered as the most significant extra feature for mobile telephone purchase and other being Internet and Social Media Applications.
4.2 Secondary Data Findings & Analysis
The mobile telephone market is shaping up with introduction of variety of mobile telephones available for the consumers. This affects the purchase decision and the linking for particular mobile telephone. The Nokia market is declining and Apple and Samsung are having intense competition (Euromonitor International, 2012). The consumer gives high importance to price and also as confirmed from primary data analysis the added extra features shape the consumer preferences for a specific mobile telephone.
The Smartphone market is gaining the share and people prefer Smartphones over other phones and the brand which people generally buy are HTC, Samsung and Apple’s iPhone in Australia (Mobile Industry Group, 2012). Also, people prefer more on Android phones in the recent past which has affected the sales of iOS for Apple. The consumer also gives higher preference to the application store and the other social media application which help in connecting people and thus making communication much faster.
5. Recommendations & Conclusion
There can be few recommendations made as part of this study after primary and secondary data analysis. The consumer gives high preferences to price and extra features and hence the companies should strive for augmented & variety features and with increased application store. The organizations should also give higher importance to Camera with high resolution feature and increased software Internet Applications in the Smart phones. The Customers generally prefer large mobile telephones and it would be beneficial for organizations to develop their mobile telephone on customer preferences. If external features are concerned such as style and design, the touch screen is the most important one and hence the players in mobile telephone should manufacture more with touch screen design.
The mobile telephone market is growing at tremendous pace and the Smartphones are replacing traditional phone. Apple and Samsung continue to be the strong player and gaining advantage of declining Nokia’s market share. The Smartphones are gaining high importance and customer are giving high importance to augmented features such as camera and internet software applications and this acts as the factor for customer preferences of one phone over other. There are other factors such as brand and quality which also shapes the customer preferences for the mobile telephones.
6. Limitations of the Study
- The respondent’s attitude and mood during the time of filling the questionnaire may affect the responses.
- The results of the study may vary if the study was conducted in different time frame
- This study is based on current satisfaction of the respondents but this satisfaction factor may vary with change in technology.
- Marketing Magazine (2012). Android dethrones iPhone as most Smartphone platform in Australia. Retrieved Sep 21, 2013 from http://www.marketingmag.com.au/news/android-dethrones-iphone-as-most-owned-smartphone-platform-in-australia-17252/#.Uj24SYakxSE
- Ling, R. (2004). The Mobile Connection: The Cell Phone's Impact on Society. Morgan Kaufmann.
- Horst, H. and Miller, D. (2006). The Cell Phone: An Anthropology of Communication. Berg.
- Euromonitor International. (2012). Mobile Phones in Australia. Euromonitor International. Oct 2012.
- Roxas, R. (2011). Australia’s mobile phone market explodes as handset makers prepares for brewing war, International Business Times, 24 March, viewed 20 September 2013, http://au.ibtimes.com/articles/126230/20110324/australia-s-mobile-phone-market-explodes-as-handset-makers-prepares-for-brewing-war.htm#.Uj3fWoakxSE
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