customer satisification of samsung smart phones

Putri Anjatsari 014201000052

FACTORS DETERMINE STUDENT’S CHOICE OF BUYING

SAMSUNG ANDROID SMARTPHONE

(A CASE STUDY IN PRESIDENT UNIVERSITY)

I.I ABSTRACT

In this paper will investigate about factors that

determine student’s choice of buying Samsung android

smartphone in President University, Cikarang, Indonesia. The

proposed study of this paper distributes questionnaire consist

of 25 questions including product, price, place, promotion,

brand equity and customer buying decision. A sample 83 people

are selected randomly at President University and they are

asked to reply the questions on Likert scale based. The

results by using mean analysis show there are dominant factors

in determining student’s choice of buying Samsung android

smartphone related to marketing mix (4Ps) and brand equity.

Brand equity and Product have the highest role to influence

customer buying decision among other factors, which means

customers are care more about brand equity, product’s quality

and features. Finally among different characteristic people

are interested in having worldwide brand product with features

that compatible with their needs.

Keywords: Market, marketing mix, brand equity, customer buying decision, research

journal

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I.I. INTRODUCTION

Communication is important part of human life and in

business world, it is key to any business success. How

potential clients got the information of products will

determine how high the possibility of them making deal with

the company (myownbusiness.org, 2012). The demand of the

telecommunication industry for advanced mobile devices already

answered by Samsung. Samsung which is belong to smartphone is

a device that has phone capability and able to performs some

functions of the computer. It is capable of text messaging,

camera, video recorder, e-mail, internet, e-book reader, push

to talk, review and edit documents, global positioning system

capability, and many other applications (myownbusiness.org,

2012).

Samsung sees every challenge as an opportunity with its

world recognized constant innovation and top quality products

and built a strategic emerging information industry

(samsung.com, 2012). From the result of the technological

capabilities development adhered to its founder philosophy and

top management (Park & Gil, 2012), they opened up its

technology to its clients, partners, and developers to achieve

long run benefit building technology ecosystem and forecast

their future fair share of rewards by maintaining the constant

innovation (Diong & Cho, 2008). Samsung Android Smartphone’s

shipments is number one in the world, nevertheless, in

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Indonesia Samsung’s sales is number 3 left behind by Nokia on

the first place and Cross on the second place (Bangah, 2012).

Although has been critized by number of studies like

Lauterborn (1990), propovic (2006), Moller (2006), and

fakeideas (2008), 4p remain staple of the marketing mix (Goi,

2009). Yudelson 1999 in Gandolfo Dominici redefined product

as: all the benefits through time that the user obtains from the exchange.

Positioning is a technique of how marketers try to create

image or identity of a product, brand, or company in

consumers’ mind. It is a matter of perception where the

product is on a market-how consumers see throughout the

product and how they compare it to the competitors

(marketing.co.id, 2012). Hence, consumers are more interested

in having exclusive product that make them different from

others because they belief that the product they are using

will represents their personality (Azad, Karimi, & safei,

2012).

Set the pricing for artistic products and activities

should considering and following the current logic trend

(Shahhosseini, 2011). Where there is a monopoly, the price

will be higher. A company can set a higher price to segment

which has high sales power and give lower price to segment

with lower sales power (marketing.co.id, 2012). Yudelson,

(1999) in (Dominici, 2009) explains price as everything given

by the acquirer in terms of money, time, and effort given to

obtain the product. Consumers assume that the evaluation of

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products’ condition is based on its pricing policy. The

product’s marking on consumers’ mind will be influenced by the

combination of the advertisement, distribution channel, and

brand equity. (Azad, Karimi, & safei, 2012).

The distribution policy set by company will help the

product penetration to the market (Azad, Karimi, & safei,

2012). After product is being penetrated, advertisement and

promotion takes a high role to built, promote a product, and

als create perception of trust on the customer and built a

purchase relations (Dominici, 2009). The more advertisement

release to the market, the better market exposure will be, and

the bigger awareness on market characteristics will be (Azad,

Karimi, & safei, 2012).

Along with brand equity, marketing mix with its elements

(product, price, place, promotion) are a fundamental

components of a marketing plan (Shahhosseini & Ardahaey, 2011)

to determine customers’ buying decision (Furaiji & Malgorzata

Tatuszriska, 2012).

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Figure 1. The Black Box Model of consumer behavior. Adapted

from “marketing” by W. Keegan, S. Moriarty, T. Duncan, 1992,

p. 193. Englewood Cliffs, NJ: prentice-Hall.

I.1. Research Framework

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6

Theory andLiteratureReview

Five maindimensions

PlacePriceProduct Promotion

BrandEquity

Customer BuyingDecision

QuantitativeAnalysis

Research Findings

Conclusion andRecommendation


II. METHODOLOGY

II.1. Subject and Study Design

The target population of this research is local President

University students in Jababeka, Cikarang Baru batch 2009 to

2012. By using multiple regression sampling method because the

total population of students who are using Samsung Android

smartphone was unknown, the total sample of this research was

83 students. Data collection was done by spreading

questionnaires to random 80 male and female students age 18 to

23 who were suing Samsung android smartphone in November 6 to

10, 2012. This research was done in 13 weeks.

II.2. Instruments

The data employed to analyses the determine factors that

influence students choice of buying Samsung android smartphone

was collected through a marketing survey. The instrument used

to collect the primary data was a questionnaire. This tool was

selected because of its numerous advantages since each

respondent would receive the same questions. Questionnaire can

reduce error made by interviewer while recording the

responses, quarantee confidentiality and respondents could act

without any fear or embarrassment (Furaiji & Malgorzata

Tatuszriska, 2012). The questions were divided into two

segments as follow:

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1. The first part will be demographic questionnaires

consist of name, age, gender, and income.

2. On the second part, there will be 21 questions under 5

independent variables (product, price, place,

promotion, and brand equity) and 4 questions under

dependent variable of customer buying decision.

On the second segments responses were measured on a 5

point likert scale (Likert, 1932) in (Azad, Karimi, & safei,

2012). 5 point on the likert scales are strongly disagree (1),

disagree (2), either agree nor disagree (3), agree (4), and

strongly agree (5).

PRODUCT (X1) 1 2 3 4 51. I am satisfied with the design of

Samsung android smartphone2. I buy Samsung Android smartphone

because the model is up to date and

fashionable3. I am satisfied with the features

(applications, multimedia, camera,

sound, etc) Samsung android smartphone

has4. Samsung android smartphone is easy to

use and hold (firm, fit on the right

size)5. I buy Samsung android smartphone as

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telecommunication device (call, text

message, email, read document, business

activity)6. I buy Samsung android smartphone as

entertainment device (multimedia,

social network, games, fashion use)PLACE (X2)

7. I can easily find a place to buy

Samsung android smartphone8. I can easily find place to repair

(service) my Samsung android smartphone9. I prefer buy Samsung android smartphone

directly at store than at online shopPRICE (X3)

10

.

Samsung android smartphone’s price is

affordable11

.

For the product’s value offered, the

price set is not expensive12

.

Samsung android smartphone’s price is

more preferably than other smartphone

with similar qualityPROMOTION (X4)

13

.

Samsung android smartphone TV ads is

very attractive14

.

I like Samsung android smartphone’s

endorser (someone who become model in

an ads)

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15

.

I want to buy Samsung android

smartphone after watching its TV ads16

.

I like Samsung android smartphone’s

posters and billboardsBRAND EQUITY (X5)

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.

I buy Samsung android smartphone based

on my colleagues’ suggestion18

.

If I want to buy a smartphone, I will

think to buy Samsung android smartphone

on the first place19

.

I buy Samsung android smartphone

because I like the name20

.

I buy the brand Samsung Android

Smartphone because it is a worldwide

brand21

.

I like Samsung’s company logo

CUSTOMER BUYING DECISION (Y)22

.

I will buy Samsung Android smartphone

if my current’s smartphone is broken

and can not be repaired23

.

I buy Samsung Android Smartphone to

fulfill my telecommunication device

need24

.

I prefer to buy Samsung android

smartphone than other products

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25

.

In overall, I’m satisfied with Samsung

android smartphone product

II.3. Substantial Analysis

The data were evaluated by using specialized software –

the Statistical Package for Social Sciences (SPSS) ver. 17.0

with factor analysis approach to construct the data.

II.4. Hypothesis

The hypotheses formulated after reviewing the relevant

literature are:

H1: Product factors have a strong association with consumer

behavior.

H2: Place factors have a strong association with consumer

behavior.

H3: Price factors have a strong association with consumer

behavior

H4: Promotion factors have a strong association with consumer

behavior.

H5: Brand Equity factors have a strong association with

consumer behavior.

Hypotheses testing were confined to the primary data collected

from President University area.

IV. RESULT

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IV.1. Respondents’ demographic analysis

Among all samples collected from President University

students who lived in President University Student housing and

rented house nearby, about 66,5% of the participants were

female, and the remaining 33,7% were man. 57.8% of the

participants were 20 years or younger, while 42.2% of the

participants aged between 21 to 25 years. 26,5% were having

income bellow Rp. 1.000.000,- , 38.5% were having between Rp.

1000.000,- to Rp. 2.000.000,- and 32% were having income above

Rp.2.000.000,-

IV.2. Data processing

Figure 1. KMO and Bartlet’s test

KMO (Kaiser-Meyer-Olkin) and Bartlett’s test is 0.633 ,

above 0.5, and significant is 0.00, bellow 0,05 which means

this research is eligible for using factor analysis (Maholtra,

2012).

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Figure 2. Realibility statistics

Cronbach Alpha (a measure of internal consistency or how

closely related a set of items are) was used to assess the

inter reliability for each variables, has been Calculated as

0.727 which was enough above the minimum desirable level

(0.6). It means that the items have a relatively high degree

of internal consistency (note that a reliability coefficient

of 0.70 is considered ‘acceptable’ in most social science

research (Hair et al., 2006) in (Furaiji & Malgorzata

Tatuszriska, 2012). There were 6 questions bellow 0.3,

nevertheless since Cronbagh alpha if item deleted scores were

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good, those 6 questions could be avoided to be taken away

because it also has impact in customer buying decision.

Figure 3. Total Variance Explained

In this table, From 5 variables (product, price, place,

promotion, brand equity) could influence customer buying

decision as much as 56,2% (Maholtra, 2012).

Figure 4. Component matrix vs rotated component matrix

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In rotated component matrix, out of 21 questions from

independent variables, 6 questions were taken. In Reproduced

correlation table explains the the percentage numbers

correlated, and only questions with above 0.5 were used, other

would be taken (Maholtra, 2012).

Table 2. List of questionnaires taken

Numbe

r

Questions

4. Samsung android smartphone is easy to use and hold

(firm, fit on the right size)5. I buy Samsung android smartphone as telecommunication

device (call, text message, email, read document,

business activity)6. I buy Samsung android smartphone as entertainment

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device (multimedia, social network, games, fashion use)8. I can easily find place to repair (service) my Samsung

android smartphone18. If I want to buy a smartphone, I will think to buy

Samsung android smartphone on the first place21. I like Samsung’s company logo

Table 3. Mean Analysis

Factors Total Weighted Average

X1 4.38 (brand equity)

X2 4.00 (product)

X3 3.68 (promotion)

X4 3.43 (place)

X5 2.91 (price)

Criteria used to assess respondents’ answer in Likert scale:

Strongly Agree (SA) 5 Scores

Agree (A) Scores

Moderate (M) 3 Scores

Disagree (D) 2 Scores

Strongly Disagree (SD) 1 Scores

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Formula used according to Riduwan (2003) is used to calculate

the result:

Long Interval class = range

Number of Interval class

Where,

Range = High Scores – Low scores

Number of Interval Class = 5

Based on the formula above, the long interval class will be:

Long interval class = 5 – 1 8

5

So, the interval of reference group assessment criteria is as

bellow:

1.00 – 1.79 = Very Poor

1.80 – 2.59 = Poor

2.60 – 3.39 = Moderate

3.40 – 4.19 = Good

4.20 – 5.00 = Very Good

Guidelines to determine the mean value category:

Very Poor Poor Average Good Very

Good

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1.0 1.80 2.60 3.40

4.20 5.00

Mean analysis is used to know the dominant factor that

influence the customer buying decision of Samsung android

smartphone. In mean analysis the new variables were arranged

from the highest score to the lowest one. Based on mean

analysis, brand equity (X5) with mean score 4.38 and product

(X1) with mean score 4.00 were the most dominant factor that

influence customer buying decision of Samsung android

smartphone, followed by promotion (X4) with mean score 3.68,

place (X2) with mean score 3.43 and price (X3) with mean score

2.91.

Samsung has strong brand equity in customers’ mind. It

could defeat such a strong brand like Motorola and Blackberry.

As there was a surge in internationally visibility of Korean

culture and entertainment, strengthen its brand awareness

among Y generation by using underground marketing and

sponsoring Olympic Games 2012. Customers like to buy a

worldwide brand because it would increase their prestige.

Brand equity aspect is stressing more on the intrinsic value

of the product since young generation like to be different by

using a certain brand or new products. They believe what

product they use represent their personality.

For product, customer already satisfied enough with the

quality of the product. Despite the short battery life and the

unavailability of the official case, in term of operating

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system, multimedia, features and touch screen sensibility and

application were already satisfy customers. Another aspect of

the product which could be both the advantage and disadvantage

of Samsung android mobile phone is the product types. Samsung

released too many types of smartphone from Galaxy Young

series, Galaxy W series, Galaxy Ace series, and Galaxy S

series. It was good in the aspect of positioning product in

which Samsung targeted its market from middle-lower society to

middle upper society. But on the other hand, Samsung lost its

prestige since its exclusiveness is decreasing because its

segmentation is too huge. Customer like using something

special that made them different from others.

For promotion, Samsung already tried a lot of effort in

advertising and IMC. Samsung released a lot of article in mass

media, put billboard in strategic place, put TV ads, and

interactive marketing. With its aggressive marketing campaign

stressing on its greater variety of product, Samsung

successfully embrace all level of customers. Samsung also

sponsored many international events like Olympic Games 2012 in

London and did guerrilla marketing.

For place aspect especially retail and after sales

service, Samsung has done well with it. Customers can easily

find place to buy Samsung android smartphone. Samsung also

built customer service center in almost every city in

Indonesia. So whenever customers need to repair their phone or

claim the guarantee, they could find it easily.

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For price, Samsung still can compete with its competitor

like Mito, HTC, and Blackberry. Customers felt they got what

they paid. But since the new types was keep being released

from time to time the price of the old products were

decreasing as well.

V. DISCUSSION

While in this research founded that brand equity,

product, promotion, place, and price were the most dominant

factor that influence customer buying decision (note that from

mean analysis those five independent factors has mean above

2.5). Other research done by (Furaiji & Malgorzata

Tatuszriska, 2012) at a private school in Iran shown that by

using multiple regression analysis, in one-way ANOVA approach

they founded that marketing mix elements were weakly

associated with the dependent variable. However, their in-

depth analysis founded that marketing mix elements were

strongly associated with the customer buying behaviors.

Another research done by (Azad, Karimi, & safei, 2012) in

Tehran founded that there was a positive and meaningful

relationship between marketing mix efforts and brand equity

towards customer buying decision.

Based on those comparisons, putting more advertisements

might help to get a better market exposure in which customers

would have more awareness in market characteristics and

specialty. Customers evaluate the product’s condition based on

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its intrinsic value (prestige, exclusiveness), features,

promotion released in both mass and social media, place where

they can buy the product, and the pricing policy.

VI. CONCLUSION AND FUTURE RESEARCH

This research contributes to the understanding of the

customer buying decision in the telecommunication industry.

The findings of the study indicated that two independent

variables (brand equity and product) are highly associated

with the dependent variables. The other two independent

variables (promotion and place) are fairly associated with the

dependent variables, while price is weakly associated. The

analysis in this research may help for the future research. It

is highly suggested that for the next research, the researcher

could gather more samples and precede it using multiple

regression analysis.

VII. REFERENCE

(2012). Retrieved October 9, 2012, from samsung.com:

http://www.samsung.com/id/

(2012). Retrieved ctover 8, 2012, from marketing.co.id:

http://kampus.marketing.co.id/category/teori-marketing/

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marketing mix efforts on Bran Equity: an empirical study

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Bangah, S. (2012, September 12). Android Overtakes BlackBerry as the

Top Smartphone Operating System in Indonesia, says IDC . Dipetik

October 15, 2012, dari idc.com:

http://www.idc.com/getdoc.jsp?containerId=prID23688812

Diong, A., & Cho, D. (2008, May). transvormative Innovation For

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