Customer Insights Group 3 - Cell Phone Neda Habibi Negin Kazemnejad Shayan Ryan Moore Phil Revel

Introduction Our group picked cell phones. Why? Goal Due to the very high penetration rate of mobile customers we picked the cell phones in order to gain insights into customer’s purchase process. We also looked at their experience with the product in-use. Goal The purpose of this study is to investigate the factors affecting the decision of buying mobile phones. In order to accomplish the objectives of the study we interviewed four consumers.

Demographics Respondents Gender Age Education Level Ethnicity Marital Status Household Income Work Hours/Week Interviewee #1 Female 25 to 34 years Master's degree White Single (never married) $75,000 to $99,999 35 hours a week or more Interviewee #2 Male 35 to 44 years Married Interviewee #3 $150,000 or more Interviewee #4 Ph.D., law or medical degree

Path To Purchase Smartphone: 1- Purchase Motivation 4- Purchase Device through Buying Channels 5- Experience 2- Research Channels 6- Perceptions 3- Factors Impacting Decisions Pre- Purchase Purchase Post-Purchase

What motivated the purchase? Pre- Purchase What motivated the purchase? Question Respondent Answer What motivated or triggered the purchase? Interviewee #1 Newer Technology Interviewee #2 Interviewee #3 Interviewee #4 Communication with Friends and Family, Technological Capability of Smartphones Based on our research, having access to the newest technology in smartphones is the primary reason that consumers will buy new smartphones.

Factors Impacting Decisions Pre- Purchase Factors Impacting Decisions Question Respondent Answer What were they looking for or prioritizing when making a selection? Interviewee #1 Aesthetics and Battery Life Interviewee #2 Warranty, Payment Plan, Technical Features Interviewee #3 Aesthetics (color), Size Interviewee #4 Customer service, Technical Feature, Price Based on our research, there are many different factors that contribute to the decision to purchase a smartphone. The most important are aesthetics, price, Technical features and Customer Service.

Research Channels to Buy Cell Phones Pre- Purchase Research Channels to Buy Cell Phones Question Respondent Answer How did they go about finding relevant information? Interviewee #1 Wireless Carrier Store Interviewee #2 Social Network, Read reviews Interviewee #3 Manufacturer Store, Social networks Interviewee #4 Family, Sales Representatives Based on our research, the most popular method of researching smartphones for purchase was through online research and brick and mortar retail stores.

Where was the purchase made? Question Respondent Answer Where did they buy the product and why? Interviewee #1 Wireless Carrier Store - Upgrade Availability (Price) Interviewee #2 Wireless Carrier store Interviewee #3 Manufacturer Store - Ease and Reliability Interviewee #4 Manufacturer Store - Hands-On Comparison Based on our research, the most popular method of buying smartphones was at brick and mortar retail stores.

Positive and Negative Surprises During Usage Post-Purchase Question Respondent Answer What positive and negative surprises have occurred in usage? Interviewee #1 Positive - App Usefulness, Negative - Lack of Storage Interviewee #2 Positive - New Updates and Applications, Negative - Product Malfunction Interviewee #3 Positive - App Usefulness and Photo Quality, Negative - Battery Life and Expensive Data Plans Interviewee #4 Positive - App Usefulness, Negative - Hardware Aging into Obsolescence Quickly Some of the most positive experiences that are had with smartphones are due to their applications you can download. This can provide a competitive advantage for manufacturers of smartphones if they have a large, high quality selection of applications for download. Negative experiences are had most when hardware malfunctions.

Post-Purchase Satisfaction Level Question Respondent Answer How satisfied/dissatisfied is the consumer (user) with the product? Interviewee #1 Very Satisfied - Would Purchase Again Interviewee #2 Interviewee #3 Interviewee #4 Satisfied - Camera and Storage Need to Improve Most customers are “Very Satisfied” with their smartphone. This shows that manufacturers have been listening to customers wants and needs while avoiding the most damaging item to their brand, hardware that malfunctions.

Does brand loyalty differ by Gender? Question Gender Respondent Answer What role does the brand or manufacturer reputation play in the above? Female Interviewee #1 High Importance Interviewee #3 Male Interviewee #2 Low Importance Interviewee #4 Both female respondents said the brand and manufacturer reputation was of high importance, while only one male respondent believed that this is an important factor. Brand and manufacturer reputation is a matter of high importance to many consumers when purchasing a new smartphone. Smartphone purchases tend to be expensive and consumers don’t want to make the mistake of purchasing a device that doesn’t meet their needs. Consumers must trust their smartphone manufacturer before purchasing their phones

Education Level Effect Question Education Level Respondent Answer Who else participated in or influenced their decision? Master's degree Interviewee #1 Customer Reviews Interviewee #2 Family - Use of Same Platform Interviewee #3 No one Ph.D., medical degree Interviewee #4 Family and Friends Based on our small sample size, it doesn’t seem Education Level effects are much. Family and Friends suggestions and Customer Reviews of products seem to have the largest influence in deciding which type of smartphone is purchased.

Aesthetics, price, Technical Features and the Customer Service are important factors Researching on the web and brick and mortar retail stores are the two most popular searching methods to find cell phones. Brick and mortar retail stores are where consumers finally go to purchase cell phones. Having access to the newest technology is one reason why consumers buy new smartphones. Positive experience, collection of apps one can download on his/her smartphone Negative experience, hardware can’t keep up with the software updates “Very Satisfied” is the consumer's level of satisfaction with the cell phone manufacturers

Recommendations to cell phone manufacturers and marketers Improve look and feel of the cell phone because aesthetics are important Customer service and good customer support is important Improve sales experience in retail stores Provide better warranties to the customers Keep prices low as you improve aesthetics, hardware and software