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Mobile Phone Buying Decisions Among Young Adults: An Empirical Study of Influencing Factors

Tanveer, Muhammad and Kaur, Harsandaldeep and Paruthi, Mandakini and Thomas, George and Mahmood, Haider (2021): Mobile Phone Buying Decisions Among Young Adults: An Empirical Study of Influencing Factors.

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Abstract

Background: The mobile phone shopping behavior of adults has been extensively studied in the past. However, given the novelty and dynamism of this domain and the multitude of new contributing factors coming into play, such studies soon become obsolete. Consequently, this phenomenon needs to be studied frequently within the context of contemporary social, technological, and market norms. In the same league, there is a pressing need to empirically examine the mobile shopping behavior of young adults in Pakistan. In this context, the last known such study was published in 2008. This paper provides a study of factors influencing mobile phone shopping behavior within the context of young adults in Pakistan.

Methods: A questionnaire-based survey consisting of a five-point Likert scale was conducted. The survey was disseminated via social media, and participation was voluntary. Over a period of two weeks, 416 respondents completed the survey to report mobile shopping behavior. We employed Confirmatory Factor Analysis (CFA) within the Structured Equation Modeling (SEM) model using AMOS 24. We chose CFA over Ordinary Least Squares (OLS) because the application of OLS is limited by compliance to simplifying assumptions. In contrast, SEM-CFA is a more robust method that also addresses the issue of multicollinearity, a common problem in survey data.

Findings: The empirical results suggest that the Service Encounter and Convenience have coefficients of 0.049 [P=0.265] and 0.02 [P=0.682] only, suggesting a statistically insignificant influence of the two factors on the mobile phone buying behavior. Similarly, Avoidance of Core Service Failure and Response only has a coefficient -0.05 [P=0.401], suggesting a feeble and statistically insignificant negative effect on the mobile phone buying behavior in Pakistan. However, Price and Attractiveness have been found to have coefficients of 0.436 [P=0.00] and 0.155 [P=0.00], indicating that these two key factors are having a positive and significant influence on the mobile phone buying behavior in young adults in Pakistan.

Contribution: The finding reveals mobile shopping behavior of young Pakistani adults might not be influenced by either Service Encounter or Convenience. Instead, the Price and Attractiveness of the mobile phone seem to affect the adults towards buying the mobile phone.

Recommendations: The price of the mobile phones needs to follow the target market, and the product category should also be identified according to the characteristics of the target market. In addition, the attractiveness of the mobile phone needs to be maintained even if the prices are lower, as this should positively influence the buyers. Further research is suggested to include cultural and social factors in this context.

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