Consumer Perception Toward Using Mobile

¶ … Consumer Perception Toward Using Mobile Phone Thai Consumer Perception on Mobile Phones The mobile phone market has significantly developed in the past few years. The trend characterizes developed countries, but developing regions also. Technological development has a significant impact on the activity of individuals and of companies. Mobile phones have practically revolutionized communication. The role of mobile phones has significantly developed since the initial types of mobile phones were introduced on the market. This is because in the beginning, mobile phoned were used only for communication among individuals.

Then, people started listening to music on their phones, taking photos or video recording aspects that interest them. The mobile phone became popular for the entertainment purposes it also served. In addition to this, mobile phone makers started to develop applications that increased the functionality of these products. For example, people can access the Internet through mobile phones or to make mobile payments in certain cases.

It would be interesting to find out what are the applications that users take into consideration the most when choosing the mobile phone model they want to purchase. Mobile phones also represent a sign of the social status of the individual in case. Some mobile phones are quite expensive or come in a limited edition. Mobile phones can also be considered fashion statements.

In other words, the variety of mobile phones determines a variety of uses of this product and a variety of reasons for purchasing certain types of mobile phones. 1.2. Research Question This research study intends to indentify the Thai consumers' perception on using mobile phones. In other words, the research projects intends to find out what are the characteristics that Thai consumers look for in mobile phones, what are the price ranges they are willing to pay, what are the activities that these customers intend to use these mobile phones for. 1.3.

Research Objective The main objectives that this research project intends to address include: Objective #1 -- what percentage of the population uses mobile phones. Objective #2 -- what are the characteristics that interest customers in their mobile phones. Objective #3 -- what are the applications that customers consider to be the most useful in their mobile phones. Objective #4 -- what do consumers mainly use their mobile phones for. Objective #5 -- how much are customers willing to pay for their mobile phones. Objective #6 -- what is the Thai consumer's behavior regarding mobile phones.

Objective #7 -- what are the trends in the mobile phone industry. Objective #8 -- how is the mobile phones market likely to evolve in Thailand. 2. Literature Review 2.1. What Are Mobile Phones? Mobile phones are electronic devices used for full duplex two-way communications through a cellular network (Ulyseas, 2008). These mobile phones allow the user to make and receive phone calls from and to a public telephone network. Mobile phones are used for other activities, like: SMS messages, e-mail, Internet, games, Bluetooth, infrared wireless communication, camera, MMS messages, MP3 players, radio, and GPS. 2.2.

The Growth of the Mobile Phones Market Since the invention of mobile phones and their introduction on the market for mass usage, the mobile phones industry has continuously developed. The mobile phones industry has reported different growth rates in accordance with the development level of each country or region in case.

When mobile phones were introduced on the market, certain specialists in the field stated that this market will reach a saturation level at some point and the mobile phones sales volume will significantly reduce as a consequence of this situation. But the current situation of the mobile phones industry proves that these specialists did not correctly assess the evolution of the market.

This is because the technological developments made in this field have significantly improved the importance and the various roles of mobile phones and their application for individuals and businesses. There are many users that have more than one mobile phone. In addition to this, the growing needs of consumers regarding telecommunications have determined producers to develop mobile phones and to add new features to these products that guarantee that a significant number of customers are likely to purchase them.

Given the fact that there are numerous companies that produce mobile phones and that provide a varied offer in this field, producers and sellers are forced to reduce the price of these products and services, which makes them available for many consumers. The worldwide mobile phones market reported a 17% increase in the first quarter sales in 2-10 compared with the same period of the previous year. The biggest increase was reported by smartphones that reached 54.3 million units sold in this period, which represents a 48.7% increase (Gartner, 2010).

However, this sales increase does not characterize all types of sellers. The most successful vendors are represented by companies that own an integrated set of operating system, hardware, and services. This represents almost the highest sale increase in the mobile phones industry. The explanation for this important sales increase relies on the fact that in mature markets product availability is considerably wider, and prices are reduced for mass market products.

Although this sales increase characterizes the most important producers, smaller producers also reported certain growth in their sales, although at a lower level in comparison with the big players in this industry. The table bellow shows the sales reported by the most important mobile phones producers. Company 1Q10 Units 1Q10 Market Share (%) 1Q09 Units 1Q09 Market Share (%) Nokia 110,105.6 35.0 97,398.2 36.2 Samsung 64,897.1 20.6 51,385.4 19.1 LG 27,190.1 8.6 26,546.9 9.9 RIM 10,552.5 3.4 7,233.5 2.7 Sony Ericsson 9,865.6 3.1 14,470.3 5.4 Motorola 9,574.5 3.0 16,587.3 6.2 Apple 8,359.7 2.7 3,938.8 1.5 ZTE 5,375.4 1.7 3,369.6 1.3 G-Five 4,345.0 1.4 Huawei 3,970.0 1.3 3,217.9 1.2 Others 60,418.1 19.2 44,972.2 16.5 Total 314,653.50 269,120.10 Source: Gartner (May 2010) The growth of the mobile phones market continued in the second quarter of 2010 also.

In this period, the market reported a 14.5% increase in comparison with the same period of the previous year. The sales volume reached 317.5 million units sold by vendors on a global level (Petrou, 2010). This significant market growth is driven by smartphones that seem to interest more and more users. However, low priced phones have also reported certain levels of increase in their sales volume.

The economic and financial crisis has affected the incomes of many users that cannot afford to buy expensive mobile phones, and prefer to orient towards cheaper products that can satisfy their needs. As mentioned above, price reduction in certain types of phones are responsible for this increase in mobile phones sales volume. The introduction of new products in this field is another factor that attracts certain customer segments targeted by large mobile phones producers that address the global market.

The mobile phone sales increase discussed above is applicable for developed countries. In developing countries, the situation of the mobile phones market is a difficult one. However, the telecommunications market in Africa and Asia is starting to increase. In Africa, the partnership between large mobile phones producers and local telecommunications companies regarding the implementation of mobile payment systems has led to the sales increase of mobile phones.

The table bellow shows the sales distribution of the smartphones sector, an important factor that determines the sales growth in the mobile phones market. Worldwide Smartphone Sales to End Users by Operating System in 2009 (Thousands of Units) Company 2009 Units 2009 Market Share (%) 2008 Units 2008 Market Share (%) Symbian 80,878.6 46.9 72,933.5 52.4 Research in Motion 34,346.6 19.9 23,149.0 16.6 iPhone OS 24,889.8 14.4 11,417.5 8.2 Microsoft Windows Mobile 15,027.6 8.7 16,498.1 11.8 Linux 8,126.5 4.7 10,622.4 7.6 Android 6,798.4 3.9 0.5 WebOS 1,193.2 0.7 NA NA Other OSs 1,112.4 0.6 4,026.9 2.9 Total 172,373.1 139,287.9 Source: Gartner (February 2010) 2.3.

The Importance of Mobile Phones Mobile phones are used for the following purposes: Communication Emergency Storage Entertainment Applications Communication The communication function is the basic and most important purpose of using a mobile phone. These mobile devices allow individuals to make and receive calls from almost anywhere to any location (TechRepublic, 2006). The procedures of making and receiving call have been significantly simplified since the introduction of mobile phones on the market. With just simple screen touches, a person can call another person.

This means that the person in case does not need to memorize names and phone numbers or to carry traditional address books with the contact details of people that interest the person in case. This is extremely useful in the case of people working in different countries that can easily contact their family and friends through mobile phones whenever they want. In addition to this, people can send messages through their mobile phones.

This allows them to efficiently communicate by reducing costs associated with phone calls and the time required for this activity. This is extremely practical for businesses also, given the fact that team members can communicate through such messages. Mobile phone messages are also used for advertising purposes, in order to improve communication between the company that addresses this type of advertising and the customers it intends to reach. Emergency The mobile phone is extremely useful in the case of emergency situation.

The owner of such a mobile device can call 911 for free from their mobile phone, even if the owner's phone credit does not allow for calls to be made. Also, the camera of the mobile phone can be used in recording certain aspects that are useful in such situations (Reardon, 2006). Storage An important feature of mobile phones consists in the fact that they allow for important data storage. The user can store picture, text, and audio documents.

This way, the user can take his important documents with him while traveling or to assist him in certain activities where the user cannot access a computer and uses his mobile phone instead. Most modern mobile phones provide this ability that is appreciated by users. Entertainment Another important function of the mobile phone that becomes more and more important for users is represented by its entertainment functions. In other words, the mobile phone can be easily used as a music player, a music recorder, or a video clip player.

This allows users to play video of a certain size or to send them to other users by using the mobile phone. Applications The applications of mobile phones have significantly developed. Mobile phones provide applications like: calculators, alarm clocks, converters, word and spreadsheet processors, computing functions, and others. 2.4. The Benefits of Mobile Phones There are numerous advantages that using a mobile phone can provide.

These benefits include: The accessibility of people The possibility of navigating the Internet Mobile payments The accessibility of people The technological developments made in the telecommunications field make it easier to access certain people even in conditions that make it difficult to communicate with them (Mobile Phones, 2009). For example, mobile networks allow people to talk to each other through mobile phones when the distance between them is quite significant.

It is easier now to locate someone when they are not in their home or office, or when the caller does not know where the cal receiver is. The possibility of navigating the Internet A great percentage of the world's population uses the mobile phone to access the Internet. Most of the users that are interes5ed in this feature are represented by teenagers.

In addition to this, the Internet is accessed by mobile phones owners in order to find out sports news or the weather forecast, or other information that interests them. Mobile payments One of the most important features of the mobile phones is that it allows users to pay their bills through moil phones applications. This is extremely useful for many users that pay their bills through mobile phones in order to reduce the costs and time associated with this activity. 2.5.

Mobile Phone Trends The most important trends that are likely to influence the mobile phones industry are represented by: Low-end mobile phones Mobile Internet Video phone Physical networking devices Low-end mobile phones This type of mobile phones will continue to be preferred by numerous customers. However, prices and profit margins are likely to be compressed. It is expected that prices for this product segment will be reduced in order to attract a higher number of customers.

Mobile Internet Mobile phones that provide Internet options are expected to become the mainstream products in this market. It is estimated that this product segment will realize the most important profits. Mobile phones producers will compete in the mobile Internet section in order to gain competitive advantage and increase their market share. Video Phone It is expected that technical developments in the field will allow for the introduction of video phones on the market.

This action will be supported by the growing needs of consumers that find useful such a communication device. Such video phones require significant production investments and support networks that allow for such activities. This means that the prices of these products will be quite high and not many customers will be able to pay them. Although certain specialists in the field consider that video phones will be the mainstream of the mobile phones market, it is quite difficult to estimate how customers will react to video phones.

Physical networking devices These devices are likely to improve the functionality of mobile phones, makes them more useful for their users. 2.6. Consumer Behavior There are several factors that influence customers' decision when selecting the mobile phone they intend to purchase. The most important factor that affects customers' purchase decision is represented by the price of these products (Pakola et al., 2010).

Some of the customer segments addressed by mobile phones producers are price sensitive and cannot afford to buy expensive mobile phones, even if the advantages of these types of phones interest them. Another important factor that affects the purchase decision of customers is represented by the properties provided by the various types of mobile phones on the market.

Given the fact that there are numerous types of mobile phones provided by producers, customers have a great variety of mobile phone models to choose from in accordance with their needs and preferences regarding the mobile phones they intend to purchase. The salesmen have the biggest influence on customers' purchase decision. In Thailand, consumer behavior regarding mobile phones is not much different than in the case of other countries.

The most important factors that influence the purchase decision of mobile phones in Thailand are: product quality, brand image, service, price, and promotion (ECIS, 2009). 2.7. Brand Strategy Same as in the case of other products, companies with established brands and images are preferred by consumers in the mobile phones industry. This is because these established brands have proven the quality of their products, and heir advantages and disadvantages are well-known for the public.

Also, these companies benefit from a strong position on the market that allows them to invest in research and development in order to improve the products and services provided to their customers. The most important mobile phones brands include: Nokia, Samsung, Siemens, Alcatel, LG, and others. The elements of these companies' brands' images are: the logo of the company, the color scheme, the overall look, and the printed materials (Coss, 2009). The logo must symbolize the company.

These companies' logos are simple, easy to recognize, and easy to use in different marketing channels. The color scheme is different for each company, given the fact that it must reflect the message that the company intends to send, and it must be selected in accordance with the strategy of the company. The overall look of the company must also reflect the strategy of the company and must address the customer segments that the company intends to target.

The printed materials of the company must be in accordance with the website of the company in case. 3. Methodology 3.1. Secondary Data The objectives of this research study can be reached by using secondary and primary sources of information. This is because both types of sources of information present a series of advantages and disadvantages that must be taken into consideration by the researcher. This way, it is ensured that the results and findings of the research project satisfy the readers.

Secondary sources of information refer to newspaper articles, specialized magazines, previous research studies made by marketing companies in the field, books, articles, databases, websites. The advantages of using secondary sources of information must be taken into consideration in addressing the research problem in case. These secondary sources present a higher degree of availability. They can be easily accessed by anyone who has the minimum resources required for this activity.

The sources of information that can be accessed through the internet represent the easiest way in collecting information n the subject in case. The newspapers and magazines that cannot be accessed through the Internet can be provided by other sources of information that the researcher can rely on. In addition to this, using secondary sources of information is an activity that has reduced costs in comparison with other types of sources. This helps the researcher access important data with little or no fees at all.

However, secondary sources of information present a series of disadvantages also. For example, the accuracy of information collected from these sources is quote reduced. This means that the findings of the study can be affected by this factor. In the case of Thai consumers' behavior regarding mobile phones, there are numerous articles on the Internet that address the topics referred to by the objectives of the research proposal. The Internet also provides a series of studies conducted by other researchers or marketing companies that offer useful information. 3.2.

Primary Data In order to provide significant results regarding this research project, it is required to use primary data also. This information can collected directed from the source. In this case, the source is represented by the Thai consumers that purchase mobile phones. The research study will take the form of a questionnaire that will be administered through e-mail to Thai consumers. The questionnaire will be consisted of a series of questions that pintend to find out what is the budget that c0nsumers are.