Business Studies Paper on Factors That Influence Consumer Behavior in the Cell Phone Industry in Singapore

Factors That Influence Consumer Behavior in the Cell Phone Industry in Singapore


The cell phone industry represents a greater percentage of the world market in terms of electronic products. In addition, as a product that is offered in the market, it attracts different consumer marketing factors, which can only be deduced from the mind of the consumer. Consumer Behavior is a branch that deals with the various phases or stages that a customer undergoes before purchasing products or services for their end use (Chan, K. 2005, 178). Large corporations to find out what are the customer is buying patterns use large amounts of money. These companies are satisfied that their grasping of consumer in buying patterns is a translation into the sales appropriated as it relates to their companies. Moreover, companies would even go to the extent of hiring neuron-scientist researchers for them to be able to meet the need of getting to know what is in the consumer’s mind (Chan, K. 2005, 178). As studies of consumer, behavior gets heated up and running it was realized that the marketers are not able to control the user, but they can in many ways influence the way the consumer behaves in several respects. Consumer needs keep on increasing. Moreover, as these needs keep on sky rocketing so is the technology that affects the cell phone industry market of the world, Singapore included. Singapore alone has achieved a growing penetration of over 150.61 percent of different brands of cell phones (Dotson, M.J. and Haytt, E.M. 2005, 42).

The advancement of technology in the telephony and electronic industry has made the use of cell phone become a necessity that many cannot do without (Chan, K. 2005, 180). For example, when you consider the youth, they are believed to shift and buy at every point in time when a particular brand comes into existence. For the majority of users in the cell phone industry, it has ceased to be an interpersonal gadget but a multi-media interactive gizmo (Marquis, M. 2004, 134).

The aims and objectives

  1. To establish the level of influence of price towards consumers’ decision making in purchasing cell phone
  2. To determine the role of product features towards consumers’ decision making in purchasing cell phone
  3. To find out the impact of different brand name towards consumers’ decision making in purchasing cell phone
  4. To understand how social influences can affect consumers’ opinion towards decision making for purchasing cell phone

The Research Questions/Hypothesis

The research questions to be tackled are:

  1. What are the levels of influence of price towards consumers’ decision in purchasing cell phone?
  2. How does the role of product features towards consumers’ decision-making in purchasing cell phone?
  3. How does the impact of different brand name affect the consumer’s decision in making a cell phone purchase?
  4. What is the position of social influence in regard to affecting the consumer’s opinion towards a decision to buy a cell phone?

The Rationale for the Project

The researcher hopes the study will be useful to the business world in passing more understanding on consumer buying behaviors. The study is also expected to improve the cell phone industry because the consumer influence factors will have been expressed.

The researcher hopes that the study will form the basis for further research on the telecommunication industry and be able to come with other factors that affect the cell phone industry in Singapore.As the technological advancement is made, the cell phone will sufficiently meet the needs of the people of Singapore. The researcher also hopes to learn what happens to the companies who do not embrace the iconic paradigm shift of changing their industry productions to suit customer preferences. This kind of systemic control will lead to a generation of new ideas and a growth of the business enterprises within the telecommunication industry in Singapore.

The Theoretical Concepts

This study is modeled on many ideas and data, which have been created. Firstly, the study will adopt the utility theory advanced by Bernoulli, which has been used by Wall Mart, Nokia, and Siemens Companies. This theory postulates that the customer mostly makes a decision based on their expectation on the outcomes. (Bachmann, G.R., John, D.R. and Rao, A.R. 1993, 468). The theory was based on user with rational act, but not all consumer was rational, and even one have no consistent rationale, this is heavily influenced by other factors such as environment factors.

Other approaches to be used will also be on the basis that consumers will always use their memory when purchasing products. Alba, Hutchinson, & Lynch (1991) postulate that majority of consumer decisions are considered heavily reliable on memory and thus they range from the purely based memory to a combined memory. Alba, Hutchinson, & Lynch further add memory is an aspect that is based deep in our brain, where the concerned individual records the entire life of the individual and the experiences that made this person. Influence by those records’ experience, memory starts to act and behave differently either positive or negative naturally. Memory method affects the brand salience. Brand salience defines as “the predominant of the activity of memory” (Dotson, M.J. and Haytt, E.M. 2005, 42). When a customer is purchasing goods, they depend on their memory. The better the brand salience in the consumer mind, that particular the higher the potential of the consumer picking this brand for their purchase, this insists that the brand has high impact in the demand of the cell phone market.

The theory of social impact developed by Late in 1981 shows more and more influence in recent days (Kotler, P., & Armstrong, G. 2007). This influence the cell phone market as people tend to think cell phone as a better phone and as cell phone consumers increase, it makes the customers without the cell phone to think that it is a better choice.

            Ethical Considerations

The following will be used in this study as the ethical considerations:

Respect confidentiality and privacy, this is an ethical issue where one may not want to be mentioned to have given information. In tackling this, the researcher will prefer the contributors contacting him personally.

Tap into the ethics resources, this will be achieved by knowing, this will be tackled by being aware of the obligations that face the researcher and the resources available.

Adhere to prior informed practices, The study will provide an assurance to the persons participating and involved in it are thoroughly aware of the advantages the study intends to add to the body of knowledge and what are the risks that will be encountered


Bachmann, G.R., John, D.R. and Rao, A.R., 1993. “Consumer’s susceptibility to buying behaviors on purchases: An exploratory investigation. Advances in ConsuResearch, 20, pp. 463-468. 

Chan, K., 2005. “Cell Phone on the rise as brands are promoted among Singapore youth,” Journal of Consumer Marketing, 22 (4), pp. 178-188. 

Dotson, M.J. and Haytt, E.M., 2005). “Major influence factors on consumer socialization,” Journal of Consumer Marketing, 22 (1), pp. 35-42.

Kotler, P., & Armstrong, G., 2007. Principles of Marketing (12th ed.). Boston: Pearson Education.

Marquis, M., 2004.“Strategies for influencing parental decisions on electronics purchasing,” Journal of Consumer Marketing, 21 (2), pp. 134-143.