purchase behavior of the customer w.r.t attributes

8/15/2019 Purchase Behavior of the Customer w.r.t Attributes

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Chapter 1 Introduction

This chapter introduces the topic of the research and explains the research questions and theories.

The research questions are also indicated in this chapter. Motivation of the research is explained

to ensure that the readers understand why this particular product was selected. Independent and

dependent variables are then identified. The same is followed by the methodological framework

followed in the research. The major terms are then defined, and the same are delimitation and

limitations of the study are then analyed.

1.1 Introduction and Background

!e all have heard the fact that the customer is the king. The reason for this statement is because

it is the customers" choice which decides whether a product will sell or not. #ut how does the

customer decide what product to purchase$ This is one question which forms the basis of all

marketing activities across the world%be it the advertising and promotion, the placement of the

product, product type itself or the price of the product. &ach marketer perceives the answer to

this question in their own manner and then decides upon the features of marketing accordingly.

' lot of research has been done in answering this question for various products which are

available in the market, but the research in the area of high technology product is lacking. The

problem becomes more aggravated in case of the high technology based product. There are two

reasons for this major lack of research in the marketing of the high technology products(

i) The first and foremost reason for this is the product itself. In the current market where

the scientific discoveries and inventions happen every day, the product specifications

keep on changing. !hile earlier the high technology products were developed solely

for the utilitarian purpose of fulfilling a single need, the products in current days are



more advanced. They provide the multiple solutions to various issues associated with

the products, and like humans, are more prone to multitask. Thus caging them in a

simple product framework is not entirely feasible.

ii) The second reason for this is the marketing practices. The current marketing practices

are more likely to focus on the generaliation of the product. If not the generaliation,

the current practices try to simplify the technical details associated with the product

so much that the product end up being an abstract version of itself in the promotions.

Moreover, rarely does the marketing focus on the applicability of the product in

different kind of areas. This means, the product, even if marketed will lack the

detailed specification needed to market the product.

Thus it can be clearly seen that to rightly market the high technology products, there is a need to

develop a specialied system which focuses on the product itself, rather than focusing on the

features suitable for non*technical or general products. &ven though the theories behind

development of marketing will be same, there is a strong need to develop a specialied marketing

system for such product. This need has also been recognied by many researchers as well who

believe that focused marketing plans need to be developed for different industries.

The first step of developing such kind of tailor*made marketing program is to understand the

customer selection procedure, especially in case of high technology products where the research

in this area is quite limited. &arlier the purchase used to be a decision to satisfy the need, but in

the current time the reasons for making the purchase are many. The purchase, apart from the

need, is guided by the brand, by the prestige associated with the product, and by the social value

of the product as well.



+ustomer"s purchase decision is the result of two kinds of impetus%the first impetus is the

marketing practices and the second is the impetus of the external environment like the political

environment, the economic environment, the family conditions etc. These impetuses are then

analyed by the customers before making the final purchase decision. These impetus are defined

by the different factors like the culture, perception of the customers, motivation, social groups,

and social classes. The customers are also influenced by various issues like normative influence,

information influence, and value expressive influence. The customers purchase decision is also

made through different steps which involve recognition of the problem, searching the

information, evaluation of alternative, purchase decision and post purchase behavior. The

customers undergo through the process and decide the products based on these attributes.

The second factor which influences the customers" decision is the attributes of the products. Thus

it is imperative that the companies find the attributes that dictate the selection of the product

among the customers so that the product marketing can be tailored according to these selection

procedures. nowing these key attributes will help the companies in developing the program

which will educate the people and emphasie on these key points so as to appeal to the

customers. nowledge of these attributes will help in developing the bundles of attributes

corresponding to the key specialties of the product for the targeted consumers and to educate

customers accordingly. -uch an approach to evaluate the groups of attributes from a comparative

perspective would help marketers to laser focus their efforts on developing and executing

marketing plans and making them valuable to their targeted audiences. -uch an approach to

evaluate the groups of attributes from a comparative perspective would help marketers to laser

focus their efforts on developing and executing marketing plans and making them valuable to

their targeted audiences.



This is what this paper tries to achieve. The paper tries to find the bundle of attributes that

influence the purchase decision of the consumers. These bundles will be studied by the

interpretation of the results of the analysis performed in the study itself. -uch a model will

guarantee the sustainability of the value perceived by the consumers and to help differentiating

the product offerings from the competitors actively operating in the same product category. ast

but not least, such a framework is intended to contribute to the assessment of prospective and

accredited and/or qualified attributes throughout the process of establishing the product offering.

The value of bundling the attributes and evaluating the product offerings accordingly is not only

important due to the critical role in the fast changing market of high technology products but also

their significant catalyst function in developing innovative auxiliary products and services. The

knowledge of the customer preference can guide the innovation process in the companies and

help in development of the product which has the features that the customers want.

1.2 Statement of Problem

The focus of this research is to develop the set of attributes which help the customers in the

purchase decisions. Thus the statement problem of the research can be stated as 0investigation of

the purchasing behavior of the customers with respect to the high technology products and

establishment bundled attribute relationships which affects these purchase decisions of these

high technology products.1 This investigation is done with the case study of the smart phones

which are then further extended to the other high technology products. It is believed that the

process of selecting a high technology based phone will be similar to that of the purchase of

other high quality products. In order to simplify the research process, the main problem

statement is divided into the research question. 2urther research is carried out in order to find the

answers to the question. The selection of right research question is essential as these questions



only will present the answer to the statement problem indicated above. Thus keeping the

importance of research question and enormity of the statement problem in mind, the research is

divided into a few research questions. The research will focus on the following research

questions(

i) !hat is the process of decision making in case of the customer"s purchase of high

technology products$ii) !hat are the various attributes which guides the customers" purchase decision$

iii) +an these decisions stand the sustainability test and help in deciding the future

marketing strategy of the product$

iv) 're there certain attributes which are more important than the others for the

customers$v) 3oes these factors or attributes change with the change in the customers" experience

with the past technological products$vi) Is there any sequence which can guide the marketing process in terms of the

customers" preference of the attributes$

!ith the above question as the guiding compass for the research, the objectives of the research

can be listed as(

i) To find the attribute bundle which impacts the purchase decision of the customers in

terms of the high*technology products.ii) To find out the sustainability of this attribute bundle over the period of time.

iii) To find the variations in the importance of the attributes as per the experience of the

customers with the handling of the high technological products

iv) To understand if these bundles can be utilied for development of future product.



1.3 Motivation of Reearch

The motivation of the research comes from one of the discussions with a friend of the researcher

who is planning to start a new business of developing the lathe machines and is unable to find the

solution for the marketing concerns associated with the business.

3uring the course of the discussion, it was found that there were no specialied papers available

over the attributes or the marketing philosophy of the high tech products. !hile product

marketing management and product development are widely practiced by these firms and other

profit*oriented organiations, the implementation of these marketing practices in the industries,

where high technology sets the rules of the game for product and service experience offerings, is

not commonly exemplified due to the absence of a comprehensive framework supported with

empirical data and analyses with well*defined parameters entwined to this framework. &xisting

research explains the criteria to measure and assess the purchasing behavior of consumers for the

product categories from a conventional perspective. #ut in case of high tech product that alone is

not valid because there is a factor of risk involved in the process. The risk is not only Inherited

4isk, but the risk perceived by the customers and risk associated with the specific product

53owling 6-taelin, 7889)7. Therefore, the focus in this study will be on product level instead of

the category. 3uring the course of the research, the analyses are performed at the level of product

attributes, bundling them under the classes of search, experience, and credence as defined within

-&+ paradigm: and investigating the relationship with the constructs of purchase behavior.

This perspective facilitates positioning of all attribute formations for a product offering in

relation with each other while taking consumers" evaluations as the only reference point.

7Dowling, G. R., &Staelin, R. (1994).A model of perceived ris and intended ris!"andling activit#. Journal of consumer research, 119!1$4.



'ccordingly the product offering is represented by a balanceable collection of attribute

formations, each element of which can be repositioned by considering both the assessment

results and the opportunities and risks that emerge in the environment and/or brought in by that

element per se. #y decomposing the product into its attribute classes and investigating the

purchasing behavior across these bundled attributes the aim is to perform an indepth analysis of

the relationship between these constructs and provide useful insights on it to help marketers drive

to better focused activities to their targeted audiences. &specially, strategies needed to aid

consumers in decision making when a product is high in experience or credence attributes.

-ince it is not possible for the researcher to delve into all the high technology products available

in the market, the focus of the current research is on smartphones. The phones have changed a lot

from their past counterparts. !hile earlier the phones used to be utilied only for the purpose of

communication, the connection with network and camera has changed the game. The phones

have become smarter as smartphone and camera phones. This digital convergence of

intermingling of two or more assets has resulted in development of smartphones;. -martphones

are the high tech devices which are common among public, and hence it is easier to find the

research data for the same. Moreover, these are the devices which are well*marketed, and hence

it is easier to find the associated past research on the subject. Thus case study of smart phones is

further conducted in this research thesis.

In serving the aim of investigating the purchasing behavior and bundled attribute relationships of

high technology products over the case studied as smartphones: the fundamental inquiry within

the study is directed towards extending the grouping of various attributes of a high technology

;%o"r, . ., Seng'pta, S., & Slater, S. . (**9). Marketing of high-technology products andinnovations.+earson +rentice all.



product offering concept and identifying the strength and effectiveness of these groups of

attributes on the sub*processes of purchasing < starting with the investigation of the alternatives,

continuing with the decision making on purchasing, and finalied with the experiencing, using

and promoting the high technology product offering.

1.! Independent and "ependent #ariable $ociated %ith Reearch

The research involves the study if independent and dependent variables to understand whether

the relationship between the two variables can be inferred through the research or not. The

independent variables used in the process are(

i) +ustomers" 'ssociated 2actors( These factors does not have any relation with the

product and are mainly associated with the consumers only. The factors include the

following major sub factors for the purpose of the research.

a. 3emographic factors( The age, profession, marital status, children, employment,

income group and social status are considered within this factor.

b. =sage factors( The second subfactor which the research considers is the usage.

The questions regarding the usage of mobile are asked. 3ifferent activities are

listed and the users have to identify what is their most preferred work on the

mobile phones. The second set of lists indicates the list of activities that can be

performed using the smart phone and instructs the respondent to identify if the

same has been performed by the respondent or not.

c. -ocial Media 4esponses( The third set of the questions focus on social media

engagement of the respondents.d. Technology 'doption 'ttitude( The next step focuses on the understanding how

easily are the respondents ready to adopt a new technology in the market and what

is the customers" attitude towards this new technology.



Customer'sAssociatedIndepende

nt Factors

Product

Attributes

DependentVariable

=

Customer'sPurchaseDecision

e. -martphone =sage( The last section of the survey focuses on the current brand of

the phone and the customers" loyalty towards the current brand.

ii) 'ttributes( The second set of independent variables considered in the questionnaire is

the attributes of the phone. The different attributes are divided based on search,

experience and credence.

Thus the independent and dependent variable chart for the same can be indicated as follows(

&igure 1' Reearch( Independent and "ependent &actor

1.) Reearch *+pothei

In order to answer the questions, the study and analysis is carried out with the help of the

hypothesis. 2ollowing hypothesis are used to test the attributes choice of the customer regarding

the high tech product, with the case study of the smart phone.



H1. At least three distinct classes of product attributes will be found in consumers’ response to

whether or not they can evaluate attributes before and after consumption. One of these classes

will represent search attributes, another experience attributes and the last credence attributes.

It is generally believed that the consumer selects the product after the selection of the attributes

of the products. -&+ or the -earch, &xperience and +redence theory is one of the theories

associated with the product classification. This hypothesis believes that the product attributes

play an important role in the purchase decision of the consumers. The hypothesis believes that at

least three products attributes help the consumer in making the decision about the product. These

attributes belong to each of the search, experience or credence inputs.

H2. Consumers consider credence attributes more important than experience attributes, and

experience attributes more important than search attributes.

This hypothesis believes that credence attributes play a bigger role than the experience attributes

while making the purchase decision. In the same way experience attributes are more important

for the consumer as compared to the search attributes.

H. !n future purchase decisions, credence attributes have stron"er #more$ positive%ne"ative

effect than experience attributes, and experience attributes have more impact than search

attributes.

This hypothesis believes that the purchase decision varies from the repurchase decision. 3uring

repurchase decision, the credence attributes play a more important role than the experience



attributes. -imilarly the experience attributes play a more important role than the search

attributes during the repurchase decision.

H&a. Consumers who are less familiar with technolo"y consider a "reat number of attributes as

credence attributes than consumers who are more familiar with technolo"y.

The consumers who know technology are more dependent upon the experience and search

attributes as compared to the people who are less familiar with the technology. Thus these

consumers are less dependent on the credence attributes.

H&b. Consumers who are less familiar with technolo"y consider a smaller number of attributes

as search attributes than consumers who are more familiar with technolo"y.

'nother hypothesis based on the past hypothesis is that customers who are unfamiliar with the

technology are not aware about the search attributes as compared to the people who know the

technology. The people who know technology can easily find the replacement of the other

products as compared to those unknown with the technology.

H'a. (or consumers who are less experienced with technolo"y, search attributes will have the

stron"est effect on future purchase decisions.

-earch attributes become more important for the people who are less experienced with the

technology while making the purchase.



H'b. (or consumers who are more experienced with technolo"y, credence attributes will have

the stron"est effect on future purchase decisions.

+redence attributes are perfect choice of the purchase decision for the people aware with

technology and play more important role than the search or the experience attributes.

H). *he level of importance increases from search to experience and to credence attribute

bundles in purchasin" decision of consumers for smartphones.

This hypothesis assumes that the -&+ attributes can be ranked in terms of importance. The order

for the same during the purchase decision ranges from search to experience to credence.

1., Methodological &rame%ork in Brief

3ata are collected in three phases. The first two phases were performed for identifying attributes

while the last phase has utilied the most representative attribute bundles for investigating the

relationship between the purchase intention and these bundles obtained by categoriing the

attributes under search, experience, and credence.

i) In the first phase, smartphone product attributes are listed through secondary

research. -martphone packaging, advertisements, technology forums, blogs, expert

sites, and magaines are investigated and interviews had been done with the experts

within this phase. 's a result, an initial list of attributes is generated.ii) In the second phase, smartphone product attributes are discussed with focus groups to

understand which attributes matter to consumers when they make purchase decisions.

'ccordingly, the list from the first phase is updated and expanded.



iii) 's a third step, a card sorting exercise has been performed. In this exercise, each

product attribute is listed on a separate card and participants are asked to sort these

cards into search, experience, credence, and other categories.

2or the classification to be based on the -&+ framework, below given definitions drawn from

the literature are used 5>elson, 78?@: 3arby 6 arni, 78?A: >elson 78?9: 2ord et al., 78BB:

-rinivasan 6 Till, ;@@;)(

• -earch attributes are the ones that can be accurately evaluated and verified by the

consumer prior to purchase using prior knowledge, through direct inspection, or

information acquisition from normal channels and/or readily available sources with

reasonable effort.

• &xperience attributes are the ones that can be accurately evaluated and verified by the

consumer only after the use of the product for a period of time that is relatively short

in comparison to its total usage life.

• +redence attributes are the ones that can only be verified by the experts and difficult

to validate for the consumer even after the actual use of the product since the lack of

technical expertise and/or very high costs associated with obtaining such knowledge.

In order to avoid order bias, the definitions for the attribute bundles are presented in a random

order of credence, search, and experience. #y the means of this exercise, some attributes are

eliminated and a classification is obtained with a smaller list of attributesleft. Carticipants are

also asked to rank the importance of each attribute card they sort based on their purchase

decisions. #y doing so, insights on the importance of each attribute sorted are also gained.

The respondents are also asked questions about their sex, age, marital status, income, occupation

and industry, education, and ownership of a smartphone for the time being in order to gather



demographic information and investigate if the personality, demographics and use variables can

also be related. The sampling design for the last phase had follow the non*random/non*

probability principle of snowball, where the sample was selected using network < starting with a

relatively small group of individuals then asking the group to identify and invite other people

into the study

1.- Implication of the Stud+

Though several studies seeking to explain the relationship between the product classification

based on -&+ framework and purchasing of products categoried, a research that concentrates on

the attributes of high technology products < identifying and comparing the effects of these

attribute within groups formed based on the -&+ framework on evaluating the purchase intention

of consumers for such product offerings < specifically the exceedingly convergent ones like

smartphones < is not available.

2rom managerial perspective, findings of the research will extend the knowledge and add to the

understanding of the subject of high technology product management and its application to

marketing practices. The outcomes of this study will be useful in planning and execution of

advertising with regards to the role loaded to it as appropriately informing consumers about the

products by the information economists. It is important to note that among the numerous models

for the product classification, the selection of -&+ framework is intentional corresponding to the

referrals made in the literature for it being the most intensifying framework for advertising*as*

information perspective 52ord et al., 78BB: 788@) and its operability to the product attributes.

'nother managerial implication of the study will be in the area of product positioning.

+onsidering the difficulties arising in positioning and placement of the continuously evolving



high technology products 5i.e. smartphones) for the relevant target audiences, the outcomes of

the in*depth analyses of the relationship between the bundled attributes of the product and

consumers" purchasing behavior will be providing valuable insights on where to put emphasis in

positioning plans and focus on the factors that have impact and contribution to the successful

representation and enrichment of the perceived value of the high technology products in channel.

1. "efinition of term

7) Marketing( 'M' defines marketing as 0the process of planning and executing the

concept, price, promotion and distribution of the product, including both goods and

services, to satisfy the customers and meet the objectives set by the organiation.1

Thus this definition identifies that there are four aspects of marketing( the price, the

product itself, the promotion and the way it is distributed. The main aim of the marketing

is to satisfy the customers by providing them sufficient information and to meet the goals

which the organiation has set5Murphy 6 &nis, 78BD). A

;) Croduct( Croduct can be defined as any physical product like bread, TE, refrigerator etc.

that can be offered to public for consumption. 2or the purpose of the paper, we will be

using Chillip otler"s definition of the product, where he defined the product as

something that can be offered to the customers for 0attention, consumption, acquisition or

use1 in order to satisfy their wants or needs. 9

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A) +onsumer( 3ictionary defines consumer as someone who purchases the goods or services

for his or her own personal useF. ' consumer can be an individual or an organiation.

a) Cersonal +onsumers( The personal consumers are those who purchase the products for

their personal use%for themselves, for their home or as a gift for the friend. b) Qrganiational +onsumers( The organiational consumers are those businesses which

buys product for smooth running of the organiations. These include the government

organiations, the profit and non*profit organiations as well. D

9) +onsumer #uyer #ehavior( otler defined the consumer buying behavior as the way the

final consumer behaves before buying the products. These consumers are the people who

purchase the goods and services offered for their own use. Together, these consumers

make the market for the product and the service?.

F) +onsumer Curchasing 3ecisions(. The marketing strategy is successful if the customer

sees the product/service The consumer purchasing decision is the final decision the

consumer makes before making the purchase of the offered goods and service. Nawkins

defined it as the process which is the pathway between the market strategy adopted by the

firm and the final output of that marketing strategyas something to satisfy his needs and

understands the product capabilities and features. Curchase decision is when after

comparing all the features, the consumer decide to purchase the product and in the end be

satisfied by it.B

Fhttp(//www.merriam*webster.com/dictionary/consumer

Dhttps(//publications.theseus.fi/bitstream/handle/7@@;9/?F8AA/TN&-I-P;@*#'#'.pdf$sequence7

?-otler, +., & Armstrong, G. (*1*). Principles of marketing .pearson ed'cation.

http://www.merriam-webster.com/dictionary/consumer

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D) Minor >ew Curchase * these purchases represent something new to a consumer but in the

customer"s mind is not a very important purchase in terms of need, money or other reason

5e.g., status within a group).

?) Minor 4e*Curchase * these are the most routine of all purchases and often the consumer

returns to purchase the same product without giving much thought to other product

options 5i.e., consumer is brand loyalty).

B) Major >ew Curchase * these purchases are the most difficult of all purchases because the

product being purchased is important to the consumer but the consumer has little or no

previous experience making these decisions.8) -ocial Media( -ocial media refers to the computer related tools and platforms that help in

creating, developing and sharing the information, ideas, pictures, videos, etc. to one"s

friends and followers.

7@) Marketing Mix( In order to fulfill the objective desired from marketing, the firm adopts

the set of 9Cs%the product, price, place, and the promotion. This is termed as marketing

mix. The decision regarding these 9Cs influences the consumer purchasing behavior and

establishes the brand image the company wants to pursue. The 9Cs involved are the

products offered themselves, the price at which the products are offered, the place and

distribution channels adopted for the sale of the product, and lastly, the kind of

promotional techniques adopted to reach the consumers. 8

77) Croduct 'ttributes( 's explained above, the consumer purchases the product to satisfy

some of his needs. The product attributes are the tangible or intangible features of the

B'ester, +., /eal, 0., +ettigrew, S., Grimmer, %. R., Davis, ., & awins, D.

(**2). Consumer behaviour: Implications for marketing strategy . %cGraw!ill.

8http(//dspace.siu.ac.th/bitstream/7FA;/;DB/7/-I=TN&-QM*M#'*;@@?*@;.pdf -otler, +., & -eller, -.(*11). Marketing management 14th edition.+rentice all.

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products that fulfill these needs of the customers. They are mainly of five types( the

quality level, the features, the styling, brand name and packaging of the product. 7@

7;) Nigh Technology Croducts( Nigh Technology Croducts are the products which use the

latest cutting edge technology and uses extensive 4esearch and 3evelopment 'ctivities

to develop the product. The high tech products are those which are either used for

technology intensive functions or are developed by technology intensive functions.77

7A) -martphones( Qxford 3ictionary defines smartphones as phones which are

technologically advanced and those which can perform various functions of the computer

as well. These smartphones are mainly touchscreen and have internet access allowingthe

downloaded applications to run smoothly during the process

7;

.79) +ulture( +ulture can be defined as a set of values, preference, beliefs and tastes followed

by a certain group of people at any given period of time.

7F) Motivation( 3ictionary definition of the motivation is the reason for acting in one

particular way. Motivation in case of marketing can be defined as that internal need that

propels the consumers to make the purchase.7D) Cerception( Merriam !ebster dictionary defines the perception as the way in which one

notice or understand something using one of your senses. In terms of marketing, it is

defined as a way in which the customer might take the meaning out of the information

presented to them by the company.

7@https(//books.google.co.in/books$

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Str#dom, . (**3). Introduction to marketing .'ta and 0ompan# td.

77http(//doc.utwente.nl/?AD;;/7/highHtechnology.pdf

7;http(//www.oxforddictionaries.com/definition/english/smartphone

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http://doc.utwente.nl/73622/1/high_technology.pdf

http://www.oxforddictionaries.com/definition/english/smartphone




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7?) -ocial Sroup( ' social group is something with which an individual interacts and share

the attitude and beliefs which becomes the common point in uniting the groups.

7B) -ocial +lasses( The various factors like income, profession, education, family

background and place of residence etc. give a rise to the social classes in a society. The

social classes are mainly of three types( the =pper class, middle class, and the lower

class.

78) Croduct ife +ycle( The product life cycle is the term introduced by evitt to show how

and why the sales of the products vary in the different stages of the product life. The

product life cycle has four phases( Introduction, Maturity, Srowth and 3ecline.a. Introduction( The introduction phase refers to the phase when the product is new

to the market.

b. Srowth Chase( 3uring this phase, the sales of the products increases rapidly and

the product starts establishing itself in the field.

c. Maturity( Maturity occurs when the product has established itself in the market

and its sales have settled down with the customers being all aware about it.

d. 3ecline( The decline occurs when the product"s life has dried out and the sales

start dropping.

;@) Marketing Mix( The marketing mix refers to the integrated marketing practices followed

throughout a company with the aim of developing mix suitable to get the attentions of the

customers and to achieve the marketing goals set by the company7A.;7) Croduct +lassification( Croduct classification can be defined as the method to divide the

products into meaningful categories and structured portfolio on the basis of their

characteristics.

7Ahttps(//books.google.co.in/books$

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https://books.google.co.in/books?id=P5vYH1rSoqsC&pg=PA63&lpg=PA63&dq=marketing+mix+for+high+technology&source=bl&ots=GowbBU6Yn-&sig=JXS0xSUSbL2ybz9Rhgm04Qbl6oE&hl=en&sa=X&ved=0ahUKEwjD8qmBqsTMAhVQUI4KHQmzBT8Q6AEIOjAF#v=onepage&q=marketing%20mix%20for%20high%20technology&f=false










;;) Croduct +lassification( Croduct classification can be defined as the method to divide the

products into meaningful categories and structured portfolio on the basis of their

characteristics 5#rassington 6 Cettitt, ;@@D).

;A) Tangibility( The tangibility as defined by the dictionary is 0the ability to touch or discern

a product1.

3urability( 3ictionary defines durability as the ability to withstand wear, pressure and

damage.;9) 2M+S( 2M+S or 2ast moving consumer goods are non*durable goods that satisfy the

need of the consumers only once;F) Convenience +oods Convenience "oods are the products which the customer purchases

without perceiving much about the risk associated with the purchase.

;D) -hoppin" +oods -hoppin" "oods are the ones for which consumer compares differing

product characteristics across items.

;?) -pecialty +oods -pecialty "oods represent the products with unique features that attract

the consumers to the stores where they are available and ensure the purchasing without

shopping and beyond the price.

;B) =nsought Croducts( =nsought products are the products which customers are not aware

of or if they are aware of, they never think of buying these products.;8) #rand( #rand is the name, unique design, symbol or a combination of these which is used

to develop an image associated with a product and is further used to differentiate one

product from the others.

A@) +onvenience( The convenience refers to the ease. In the current case, convenience is used

to define the ease with which the product is available in the market.

A7) 4eplacement rate < This rate refers to the rate at which the product is consumed and the

rate at which the product purchase will be need.

A;) Sross margin < This refers to the amount the customer has to spend the product for the

final product.



AA) 'djustment <This factor refers to the amount of customiation the product might need as

per the requirement of the customers and the amount of adjustment the customer will

have to make for the same.

A9) Time of consumption < This measures the time it takes to consume the products.AF) -earching time <This refers to the efforts the consumer might have to add for the

purchase of the products.AD) aw materials Materials and parts are goods that enter the manufacturer"s product

completely. +apital items( +apital items are long*lasting goods that facilitate developing

or managing the finished product, such as machinery 5installations and equipment), and

A?) #usiness -upplies and -ervices( -upplies and business services are short*term goods and

services that facilitate developing or managing the finished product: maintenance and

repair and operating supplies are included here.AB) Seneric Croduct( The dictionary definition of the offering aiming to serve the basic

utilitarian benefit. Cractically, it is what comes in the box covered by the purchasing

contract" 5Moore, ;@@;, p.7@B).

A8) &xpected Croduct( The minimum expectations of the consumer from the product offering.9@) 'ugmented Croduct( The value added to the offering, above and beyond the minimum

expectations.

97) Cotential Croduct( The product"s auxiliaries being introduced based on the consumer*

demanded, specific enrichments and it is this product that constructs the brand loyalty

and drives the growth of the product 5evitt, 78B7: Moore, ;@@;).

9;) -earch 'ttributes( These are the attributes of the products which can be understood and

analyed before making the purchase.

9A) &xperience 'ttributes( These are the attributes of the products which can be verified only

after the purchase of the product.99) +redence 'ttributes( This refers to the attributes which cannot be validated any time

during the purchase.



1./ "elimitation and 0imitation of the tud+

1.9.1Delimitations of the Study

The study is carried out in order to understand the customers" perception towards the high

technology products. 2or the same purpose, smart phone is selected as the case study. Nence the

research is limited to the study of the smartphones. The research can be expanded to other high

technology products, but it cannot be guaranteed whether the results will be same or not.

The study is geographically limited to the Turkish market. It is possible that the cultural

influence might change the results during the expansion in the other geographical areas.

Nowever the scope is limited only to the survey of the Turkish consumers, or the people present

during that time in the area of Turkey.

Moreover, the study is made with respect to the selected attributes only. The selection although

is made with the input from large number of sources, it is entirely possible that some of the

attributes are missed. Qnce selected, further addition of attributes is not made.

1.9.2 Limitations of the Study

The study, like every other study, suffers from multiple limitations. Qne of the limitations of all

the studies associated with the customers" purchase behavior is that the research believes that the

decision of the customers is rational and can be defined by certain attributes or characteristics,

which might or might not be true in all the cases. 'part from this ubiquitous limitation, other

limitations associated with the products are as listed below(

i) The first and the biggest limitation of the study is that it is carried while keeping the

smartphones as the base. -mart phone is a high technology device known to all.

!hile this indeed improves the chances of receiving the informed answer from larger



sample base, extending the results of research based on smartphones to other

technology product has its own limitations. There are many other high technology

products which are lesser known to the public and might suffer from other limitations.

ii) 2ocus group discussions and surveys are utilied as the method to obtain the response

for the survey. -ince the surveys are conducted for the product like mobile phone

which has high social value and is a product identified by social status, it is entirely

possible that the respondents have changed the data to suit social expectations. The

researcher has tried to solve this dilemma by taking the responses of a large number

of respondents to get the right results.

iii) The random sorting order is another limitation. There is no way to ensure that the

respondents have consciously participated in card sorting exercise. 'lthough attempt

was made to select the willing participants for the exercise along with the large

number of respondents in order nullify this factor, it is still possible that the same may

have been acted out.iv) +onfidentiality of the information is promised to all the respondents, but since the

surveyor was present while collecting the results, there is a possibility that the results

have been influenced by the presence of the researcher in the vicinity.

v) ast but not the least: the current research is limited to the Turkish consumers only.

-ince the culture plays an important in the customers" purchase decision and their

perception of the product, there are chances that the purchase scenario displayed by

Turkish respondents might be different from the responses for the survey in some

other part of the world. Thus extending the survey to the world might present this

limitation.



1.1 thical Conideration

The report does not suffer from any ethical dilemma. The only ethical issue expected to arise are

because of the confidentiality of the information shared through the survey. To maintain the

same, the respondents are assured that the information provided by them will be kept

confidential and will not be disclosed to any third parties. The answers obtained are not stored by

the name, but are instead listed out as the number assigned to each respondents. The original

questionnaires, once the answers are listed out, will then be suitably destroyed.

Chapter 2' 0iterature Revie%

The purpose of this chapter is to understand the various theories and lessons associated with the

customer behavior that guides the product marketing. The idea is to understand what kind of

attributes decides the customers" preference in any of the purchases, with special focus on high

technology purchase of the smartphones. The literature review will focus on product

classification and customer purchase behavior and will try to present the attributes that matter to

the customers while making the purchase.

The chapter discusses the consumer behavior in terms of how the purchase decisions about the

products are taken and what the different models of the purchase decision are. The chapter also

discusses the various influences that affect the choice of the consumer front. Qn the product

classification front, the chapter describes the different product classification. !ith a small

description on each of the classification, the search*experience*credence theory is explained. In

the end the chapter discusses the various factors that influences the customers" purchase behavior

with respect to the customer characteristics as well as the product characteristics.



2.1 Cutomer Purchae Behavior

The focus on studies based on consumer behavior is to understand the individuals" choices and

influences which help them in making the decision and spend the money on certain goods and

services. Thus consumer behavior involves study of the answers to the questions like what the

consumers purchase, where the purchase is made from, the reason why the purchase is made and

the frequency of the purchase in a certain time period. 2or example, a product like internet

modem is launched in the market with additional features. The consumer researchers will like to

focus on the customers who are going to make the purchase and their expectations with the

product. This will help the marketer in planning the product and marketing in such a manner that

it is accessible to the potential customers and is as per the needs of the potential customers.

otler defined the consumer buying behavior as the way the final consumer behaves before

buying the products. These consumers are the people who purchase the goods and services

offered for their own use. Together, these consumers make the market for the product and the

service79. Ne further explained that most of the time the consumers are even unaware about what

factors have influenced their decision.

-olomon defines consumer behavior as the study of the processes through which each of the

individual group selects or disposes of the product, service, experience or idea which has been

developed to satisfy some his needs and desire7F.

79-otler, +., & Armstrong, G. (*1*). Principles of marketing .pearson ed'cation.

7Fhttp(//www.aykancandemir.com/consumer/[email protected]

http://www.aykancandemir.com/consumer/consumer01.pdf

http://www.aykancandemir.com/consumer/consumer01.pdf



-till a third definition is on by !illiam . !ilkie 5788B) who defines consumer behavior as 0The

mental, emotional, and physical activities that people engage in when selecting, purchasing,

using and disposing of products and services so as to satisfy needs and desires. 7D7?

Thus it is essential to study the consumer behavior to understand how they will respond to the

different marketing practices associated with the products. The individuals vary in terms of the

culture, attitude, and thought all over the world. The above definitions make it clear the

customers can respond differently to the different marketing activities. Thus it is essential to

understand the kind of consumer behavior the customer might exhibit. This consumer behavior is

also exhibited by the two different consumers.

c) The personal consumers are those who purchase the products for their personal use%for

themselves, for their home or as a gift for the friend.

d) The organiational consumers are those businesses which buys product for smooth

running of the organiations. These include the government organiations, the profit and

non*profit organiations as well. 7B

The marketing strategy is successful if the customer sees and purchases the offered

product/service of the company. The consumer purchasing decision is the final decision the

7Dhttps(//books.google.co.in/books$id8Jfdf*

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consumer makes before making the purchase of the offered goods and service. Nawkins defined

it as the process which is the pathway between the market strategy adopted by the firm and the

final output of that marketing strategyas something to satisfy his needs and understands the

product capabilities and features. Curchase decision is when after comparing all the features, the

consumer decide to purchase the product and in the end be satisfied by it.78

2.1.1 Type of Consumer Purchase Behavior

+onsumers are faced with purchase decisions nearly every day. #ut not all decisions are treated

the same. -ome decisions are more complex than others and thus require more effort by the

consumer. Qther decisions are fairly routine and require little effort. In general, consumers face

four types of purchase decisions(

• Minor >ew Curchase * these purchases represent something new to a consumer but in the

customer"s mind is not a very important purchase in terms of need, money or other reason

5e.g., status within a group).

• Minor 4e*Curchase * these are the most routine of all purchases and often the consumer

returns to purchase the same product without giving much thought to other product

options 5i.e., consumer is brand loyalty).

• Major >ew Curchase * these purchases are the most difficult of all purchases because the

product being purchased is important to the consumer but the consumer has little or no

previous experience making these decisions. The consumer s lack of confidence in‟

making this type of decision often 5but not always) requires the consumer to engage in an

extensive decision*making process.

78'ester, +., /eal, 0., +ettigrew, S., Grimmer, %. R., Davis, ., & awins, D.

(**2). Consumer behaviour: Implications for marketing strategy . %cGraw!ill.



• Major 4e*Curchase * these purchase decisions are also important to the consumer but the

consumer feels confident in making these decisions since they have previous experience

purchasing the product.

2or marketers it is important to understand how consumers treat the purchase decisions they

face. If a company Is targeting customers who feel a purchase decision is difficult 5i.e., Major

>ew Curchase), their marketing strategy may vary greatly from a company targeting customers

who view the purchase decision as routine. In fact, the same company may face both situations at

the same time: for some the product is new, while other customers see the purchase as routine.

The implication of buying behavior for marketers Is that different buying situations require

different marketing efforts.;@

2.1.2 Influences to the Purchase Decision

'n individual"s decision to purchase any product is defined by three different influences(

i) >ormative influence( -uch an influence occurs when the customers" decisions are

influenced by the need to conform themselves to a groups" desire or need. This can be

done either to gain some reward or avoid some punishment. More than the product

itself, the individual"s satisfaction arises from conforming to group demands and

being within the boundaries of the social group norms. &xample of such behavior can

be purchase of latest fashion trends to 0fit in1 the society or watching the latest TE

series to be the part of water cooler chatter ;7

.ii) Ealue expressive influence( This influence arises when the members of the group try

to follow other members because of the competitive yard stick. The reason behind

;@http(//www.abhinavjournal.com/images/ManagementH6HTechnology/Qct7A/A.pdf

http://www.abhinavjournal.com/images/Management_&_Technology/Oct13/3.pdf

http://www.abhinavjournal.com/images/Management_&_Technology/Oct13/3.pdf



this influence is the need for the similarity and because of this need, the whole group

accepts certain norms, values, attitudes, or behaviors,even though the members may

have no motivation except to work for the image in the eyes of the others, or in order

to identify with the certain group of people. The products which give ego trip or have

high social values are generally adopted here.iii) Information influence( This influence occurs when the customer tries to procure the

knowledge about the product from other people. Most of the time this occurs when

the product is not that easily accessible or the brand characteristics are not fully

known. In such cases, the individuals will look for the recommendation of the product

from other users like their family and friends, and will utilie this information in

making the decision 5#lackwell, Miniard, 6 &ngel, ;@@9).;;

The following figure clearly indicates all the three behaviors along with the basic of this

behavior.

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&igure 2' Reference 4roup influencing the conumer( Purchae behavior

2.1. !odel of Consumer"s Purchase Behavior

The purchase decisions discussed above are made every day by the consumers. #efore making

the purchase the consumer decides the answers to basic question of purchase%what, why, how

much and where 5'rmstrong 6otler, ;@@A). These decisions are influenced by many factors%

past decisions, events of the current time like ageing, change in job, illness etc. 5>eal, Kuester, 6

Nawkins, ;@@;).

Many attempts have been made to understand the consumer buying behavior. otler compared

the customer behavior with the purchase model indicated in the figure below.



2igure A( +onsumer #ehavior Model

The above figure explains how the information and stimuli presented by the marketing process

enters the consumer"s black box and generates the purchasing behavior response as well as the

relationship between the brand and the customers. The stimuli of the market is composed of the

following factors( Croducts, Crice, Clace and Cromotion. These interact with the other stimuli like

economic, technological, social and cultural stimuli. These stimuli then enter the black box of the

customer"s where these are processed. The processing of these stimuli results in final purchase

decision of product about the product selection, brand selection, time of purchase and the price to

paid. The black box of the consumer is the major interest area for marketing because this is

where it is decided whether the stimuli will be converted into results. This black box mainly

consists of two parts. 2irst part is associated with the buyer ad focuses on the characteristics of

the buyer. The second part of this black box is the response of the customer to the marketing

stimuli and the environment 5'rmstrong 6otler, ;@@A).

Thus the major characteristics of the buyer that affects the consumer purchase decisions are as

follows(

i) Culture

+ulture can be defined as a set of values, preference, beliefs and tastes followed by a

certain group of people at any given period of time. The cultural is a very strong and

#uyer"s 4esponses

• #uying 'ttitudes

6 Creferences

• Curchasing

#ehavior:

• #rand and

+ustomers4elationship

#ehavior

#uyer"s #lack #ox

• #uyer"s 3ecision

Making Crocess

• #uyer"s

+haracteristics

The &nvironment

• Marketing

-timuli of

Croduct, Crice,

Clace and

Cromotion.

• &conomic-timuli

• Technological



influential factor affecting the purchasing decision of the consumers. 2or examples,

certain culture does not allow the consumption of some products, and the marketer

has to change their offerings according to the culture of the place. ike in India,

Mac3onald"s changed their traditional 'merican beef based burger to the lamb based

burger as Indian cultural demands did not favor the consumption of beef and

considered it as a reverential product. -imilarly purchasing behavior also varies from

region to region. In some regions like 'merica, some of the products are purchased

after the detailed discussion with friends and families, while the same purchase might

be entirely different in 'frica. These examples clearly indicate that the companies

have to be aware about the cultural preferences of the consumers as these cultural

preferences can make the difference in whether or not the marketing stimuli appeal to

the customers.

ii) /erception

Cerception is the process through which an individual processes the stimuli presented

to them. ' meaningful picture is created out of the different marketing stimuli used by

the companies. >ot every customer perceives the thing in the same manner. >either is

the perception always same as the company expect. This is not a collective process,

but a personal way of stimulating the events for every individual. #ut despite the

company needs to take care about how their product will be perceived by the

customers, and to take into account the chance that the perception of the customers

might not be the same as expected by the company.



iii) 0otivation

Motivation in case of marketing can be defined as that internal need that propels the

consumers to make the purchase. It is important to understand why the consumer

purchases the product as it is the answer to the question of what are the needs of the

customers that justify the purchase of the product. Qnce a customer knows what he or

she needs, a state of tension comes where in consumer selects the products to

purchase the product and remove the tension. 2or example, a person with the higher

weight might realie the health effect of higher weights and might be motivated to

exercise, go on diets, join the gym etc. Maslow"s need theory pyramid used in

psychology and human resource management can also be used to identify the

individual needs that need to be met through the product purchase. 3epending upon

what pathway the customer is in, he or she might make the purchase.

iv) -ocial "roups or eference "roups

!e discussed about the normative influence on the purchase choice above. This is

what the social group or reference group means. &ach individual is connected with

one or the other kind of group and this group influences the behavior of all the

members of the group. The purchase can be normative in which the customer wants to

fit in the group or the purchase can be made because of the perceptions that are

formed according to the group. #oone and urt 5;@@F) explains that group

influences each individual in a different manner in terms of purchase and there are

various factors which influence the members" choice to make the purchase even

within the group as well. The first condition will be that the product purchased should



be easily identifiable and it might stand out as something different and unusual which

everybody does not have and hence can be used to boast within the group.

v) -ocial Classes

The various factors like income, profession, education, family background and place

of residence etc. give a rise to the social classes in a society. The social classes are

mainly of three types( the =pper class, middle class, and the lower class. -ociologist,

!. loyd !arner unearthed six classes in the =nited -tates namely, the upper*upper

class, lower <upper class, upper middle class and the lower *middle class followed by

the working class and lower class. 3epending upon the class, the purchases of the

consumer varies. There are certain purchases a consumer of certain class might make,

but the other classes might decide to go for an alternative. 2or example, the =pper

class might go for a product which is priced higher, while the lower class might

search for the another suitable alternative of the same product which is priced much

lower and satisfies the similar need.

The consumer"s overall behavior can be divided into three parts(

i) Cre*Curchase behavior( This behavior occurs before the customer plans to buy the

product. In this behavior, a problem is identified and the need is felt by the consumer.

The customer then goes into the internal information search mode wherein he

searches the options available with him for making the decision. Cast experience and

the available knowledge are the two major sources which help the consumer decide

the answer for the same.



ii) Curchase behavior( 'fter the pre*purchase decision has been made and the customer

has felt the need, next comes the purchase behavior where customer searches for the

alternatives and evaluates the same.

iii) Cost < purchase behavior( The last step in the process if the post*purchase behavior

where the customer judges the purchased product with respect to the expectations and

the perceived performance. The product is also judged in terms of the customer

service and warranty like features offered with the product. This post*product

behavior lays down the foundation for the next purchase or the repurchase of the

product. ;A

2.1.# Sta$es of Customers" Purchase Decision

's discussed above, the impetus of the environment and marketing stimuli interact with each

other in the black box of the customer. These stimuli are then processed during the purchase

decision of the consumer. This subsection explains the different stages of the consumer purchase

making decision. 3ifferent stages for the process are as indicated below(

/roblem eco"nition

The first step in the decision making process of a consumer is the identification of the problem.

The paper above discussed the motivation of the purchase. This is the step where the motivation

of the purchase becomes known to the consumer. 3uring this stage, the consumer identifies that

there is some problem in the current situation and the apparent situation is vastly different from

the desirable situation. The consumer feels the need and want to solve the problem of that need

by making a purchase. The needs can be simple or complex. 2or example, if one is hungry one

;A https(//books.google.co.in/books$

idgKr'KmAl-w+6pgC'7D6dqpreLpurchaseLbehaviorLpurchaseLbehaviorLandLpostLpurchaseLbehavior6h

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will need food, that is a basic problem recognition. #ut it may so happen that one does not like

certain brand of fast food chains, say Mac3onald, or maybe one is looking to change the taste

from one"s usual fare. This will give rise to another problem which will help in identifying what

options that customer must make in order to solve the problem. This is where the opportunity for

the business is created.

!nformation search

The second stage of the consumer purchase decision is the search of the information related to

the problem identified in the first stage. This search of information can be extensive or intensive

information search. Most of the information is gathered by the customers from the within. This is

the information stored in the mind or sub*conscious of the customer owing to the marketing

stimuli. The information is stored in the mind of the customers in the form of images,

advertisements, and other activities. Information provided by the others who have faced the

similar needs also contribute the information stored in mind. The external information can also

come from the friends, families and the reference groups one is associated with.

valuation of alternatives

The next step in the process of making the purchase is the evaluation of the alternatives. The

previous step of information search results in generation of many alternatives the consumer can

go for in order to satisfy the need. This step focuses on evaluating the alternatives in different

manners. The needs and the features of the alternatives are compared. This evaluation does not

follow the fixed steps but is more dependent upon the need. -ometimes it might happen that the

consumer might not take little to no evaluations, while sometimes the consumer might be extra

careful and use the logical thinking to make the final selection. Earious product attributes and



consumers" factors discussed above help in the evaluation process. -ometimes, impulse

purchases are also made.

/urchase decision

Qnce different alternatives are evaluated, the next step is to make the final purchase decision.

otler5;@@8) has identified two major factors which decides whether the purchase intention will

become a purchase decision or not. 2irtst of the factor is how the other treats the purchase as . If

the consumer encounters someone important to the consumer who believe the selected brand is

not good enough for any reason, the customers" purchase intention will not solidify. The second

factor relates with the environment or the change in the environment. 2or example if a customer

plans to purchase a car and sudden economic meltdown happen. This will change the consumer

purchase intentions and will affect the final decision as well.

/ost purchase act

The relation between the product and the brand does not end once the purchase is made, but

continues after the purchase as well. This last stage involves two kind of scenarios. The first

scenario is that the customer is satisfied with the purchase made by the customer, and product"s

expected performance before the purchase is comparable with the performance delivered by the

product after the purchase is made. If the delivered performance exceeds the customers"

expectation, the customer is delighted, and if it falls short of the customers" expectation, the

customer will be dissatisfied.

2.2 Smart Phone and Cutomer Purchae Behavior

The purchase behavior of the customers is influenced by a lot many factors. The following are

the major factors identified from the past research(



i) 3emographic profile( ' research conducted in 2inland on the purchase of mobile

phone indicates that the demographic profile indeed affects the choice and purchase

of the product. The study concluded that gender and income are important deciding

factors in terms of the smartphone selection;9.

ii) +ustomers" =sage Cattern( 'nother of the research indicated that the customers"

choice of smartphones was based on the usage of the customers. They highlighted

that they utilie the products that they can use. Nowever, as the 2inland research

indicated that the choice might not be an information based choice, but a choice based

on the information presented in the advertisements and the promotion of the

products;F.

iii) Influence of -ocial Media( -ocial media has become quite important in current times

and is ubiquitous. It also influences the purchase decision of the consumers by

exposing them to the product as well as the influences associated with the product

purchase decision. The people who are more exposed to social media are more likely

to be educated about the product features and hence are more likely to make the

informed purchase;D.

;9http(//sci*hub.b/[email protected]@@/O@A?v79n@AH@9-ar5al'oto, ., -arvonen, ., -esti, %., -oiv'm6i, ., %anninen,%., +aola, ., ... & Salo, . (**3). actors affecting cons'mer c"oice of mo7ile p"ones8 two st'dies frominland. Journal of uromarketing , 14($), 39!.

;Fhttp(//questjournals.org/jrbm/papers/volA*issue;/#A;@D77.pdf :", . ;., & <', . (**$). =ffects of

m'ltimedia on mo7ile cons'mer 7e"avior8 An empirical st'd# of location!aware advertising. ICI! "##$Proceed

;D+owers, ., Advinc'la, D., A'stin, %. S., Graio, S., & Sn#der, . (*1). Digital and social media in t"ep'rc"ase decision process. Journal of advertising research, %" (4), 429!49.

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2.3 Product and 5echnolog+ 0ife C+cle

'lthough the product life cycle does not make the direct impact on the consumer, this is one of

the impetuses of the purchases. The product life cycle is the term introduced by evitt to show

how and why the sales of the products vary in the different stages of the product life. The product

life cycle has four phases( Introduction, Maturity, Srowth and 3ecline. The marketing activities

are planned according to which phase the product is going through in the period of time;?.

#ut in case of high tech products, the product life cycle alone is not a sufficient guide because

the technology life cycle also becomes important in that case. ' new product in the mature

technology market will give different results than a new product in the new technology markets.

The customers" choices about adoption of the product and purchase of the same will also vary

based on the technology life cycle;B.

The technology life cycle is different from that of the product life cycle, not only in

characteristics, but also in terms of the theories. Most of the scholars believe that the technology

life cycle follows an -*curve relationship between the development and growth of technology

and the output of the product sales. If we take a look at the product life cycle and technology life

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cycle, the product life cycle can easily be contained inside the technology life cycle. 's per this

curve there will come a time when the old technology will be available at the same time when

the newer technology is being introduced to the market. 't the time, unless the old technology

phases out, there will be direct competition between the new and the old technology.

&igure !' 5echnolog+ and Product 0ife C+cle and the Cutomer $doption model2/

The above figure indicates that different type of customers will purchase the product at different

times in the product and the marketing life cycle. Thus whether the customer warms up to the

new technology to make the purchase or not is dependent on their features alone, but also

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depends upon the customers as well. Moore has divided the customers into different parts to

explain this idea(

iv) Innovators( Innovators are the customers who are interested in using the products

based on new technology. They might even seek out the products even before the

marketing plan for the same has been launched.

v) &arly 'dopters( These people are not as aggressive as innovators, but they understand

the features of the products and hence adopt them early.

vi) &arly majority( These are the people like early adopters who are interested in the

product and the newer technology on the block, but they wait until the technology has

proven itself among the early adopters before adopting the technology.

vii)ate 'dopters( !hile early adopters are comfortable with the technology, the late

adopters are not. The late adopters adopt the product when the same become the

standard enough in the market.

viii) aggards( ast but not the least are the laggards who adopt a technology in the

end when they are forced by the market to adopt this new technology in one or the

other way.A@

If we take a look at the percentage of customers in each of the range, we will find that the

maximum number of the customers lie in the range of early to late majority. #ut different

companies have developed their niche by focusing on the different sections of the customers in

these ranges.

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&igure )' 5echnolog+ "iffuion "iagram $mong Cutomer31

2.! Marketing Mi6

The marketing mix refers to the integrated marketing practices followed throughout a company

with the aim of developing mix suitable to get the attentions of the customers and to achieve the

marketing goals set by the companyA;.

The marketing mix generally consists of 9Cs of the marketing. These 9Cs are described as

follows(

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i) Croduct( The customer purchases the product and hence product is the basic thing that

matters to the customers. The marketing mix related to product decides whether the

company wants to develop a new product or wants to focus on the existing product.

The company may also decide to enter the market through strategic partnership by

borrowing part of the technology from some other company. The important part here

is to develop the product which satisfies the needs of the customers and are equally

compelling for the customers.

ii) Crice( The price of a high technology product plays an important role in the purchase

decision of the consumer. Nence special care needs to be taken while making the

purchase decision of the product. The companies should ensure that the price selected

is decided after keeping in mind the price in the market of the competitor"s product.

The price shall also take into account the other factors like the goals of the company,

the niche market targeted through the price, the margins paid to the distributor and the

price the customer might be ready to pay for that technology.

iii) Cromotion( The previous sections indicated the difficulties in finding the right

channel for the promotion of the high technology products as the information might

be too difficult to be summed up in the simple language and concise layout of the

promotion. #ut nevertheless, promotion is an important factor that needs to be taken

care of during the marketing mix development to ensure that the information about

the product reaches the maximum potential customers. The promotion includes

activities like advertisements, sales promotion, personal selling of the product and

public relations. The companies can utilie various available platforms for

development of the best promotional mix suitable for the products offered by the

company.



iv) Clace( It is important to get the right product to the right customers at the right time.

This marketing mix feature focuses on the development of the supply chain

management mix which will be utilied to distribute the product through different

distribution channels. The good strategy for the selection of 0place1 is to select a

channel which allows the products to reach the right customers easily in a cost*

effective manner AA.

'part from the traditional 9Cs of marketing, there is a F th element that also needs to be

included in the marketing mix of the high technology product because this is one factor

which influences the purchase decisions of the consumer.

v) 'ssistance and Informational 'ssistance( This element is not very much applicable

for the products other than high technology products. Nigh technology products

means that a lot of information might be unknown for the customers, especially if the

product belongs to the new or upcoming technology. In that case, the companies need

to provide the information to the customers about the kind of technology the product

uses and how the product can benefit the customers as well. The purpose of this

assistance not only the sales, but it is the exposure of the customer to the product and

associated technology. The idea is to form the long term relationship with the

customers beforehand so that when the need arises the customers are aware about the

choice of technology they have during the process.

The following three are the major assistance provided to the customers as a part of

this element(

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i) 'dvice and help before the purchase of the product by providing them with

the required technical specifications and solutions based on their needs.

ii) The services associated with the setting up of the product or associated with

the other parts of the products.iii) The after*sales services including the routine maintenance and the repair

services, the warranty services etc.A9

There is no fixed formula for selecting the right marketing mix for the products, especially the

high technology product. &ven the new element of informational and the assistance will be

dependent upon the difficulty level of the product and the complexity of the technology used.

#ut it is estimated that the use of the right kind of marketing mix is the major step in achieving

the place in the customers" purchase decision. 's seen in above section, the marketing mix

processed by the customers in their black box is the only way the purchases are generated. Thus

the care needs to be taken to develop a marketing mix which suits the product and technology

and is in line with the expectations of the customers regarding the product, technology and the

company itself.

2.) Product Claification

's it has been explained earlier, the product attributes play an important role in the decision of

the consumers as the decision of the marketing executive. Croduct classification can be defined

as the method to divide the products into meaningful categories and structured portfolio on the

basis of their characteristics 5#rassington 6 Cettitt, ;@@D). Croduct classification plays a vital

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role in devising the whole product marketing strategy embracing the management of the products

through introduction, growth, maturity, and decline stages of their life*cycles: as well as the

development of the new ones 5evitt, 78DF). Cast researches have indicated that the kind of

behavior a customer shows while searching, purchasing or evaluating the product is dependent

upon the kind of product the customer wants to purchase. Thus understanding the product

classification is essential for understanding the customers. #ecause of this, several models on

product classification have been proposed by many researchers for decades. !ith the amount of

research focused towards the product classification, the two different schools of the thoughts

have emerged(

i) Information oriented +lassification ( Information oriented classification is done on the

basis of the product features which can be collected via information by customers.

The information*oriented classifications include the classifications like the search*

experience*credence frameworks.

ii) Transaction Qriented +lassification( Transaction oriented classification of the product

is done based on the process of acquisition of the products and the transaction process

associated with the product 5iang, Re, Nao, +hen, 6 i, ;@77). -earch*expereince*

credence scheme can be explained as the transaction oriented classification of the

products.

The above two group of classifications further house the different classification conducted for the

product.

Basic Product Classifications

The basic classification of the product as defined below. These basic classification forms the

basis of the further classification done by different researchers.



i$ /roduct *an"ibility

Qn the basis of the tangibility of the products, the products can be defined as the

tangible and intangible products. The tangibility as defined by the dictionary is 0the

ability to touch or discern a product1. Thus tangibility serves as one measure of

classification. The products which are tangible in nature are called goods, while the

products which are intangible in nature are called services.

ii$ 3urability

The second kind of classification basis is the durability of the product. 3ictionary

defines durability as the ability to withstand wear, pressure and damage. This feature

of the products defines how long the product can be used to satisfy the needs of the

consumers. The durable products can satisfy the needs of the consumers for a long

period of time for example cars, refrigerators etc. Qn the other hand non*durable

products satisfy the need of the consumers only once. That is why they are also

known as fast moving consumer goods or 2M+S.

iii$ 4sa"e

The products can also be classified on the basis of who are the end users or the

consumers of the product. This classifies the products as industrial or +onsumer

products. The consumer products are purchased by the consumer to satisfy their

personal needs, while the industrial products are purchased by the businesses or

industries as an input to their production or for further sales from the company"s end.



BasicProduct

Classifcation

ProductDurability

DurableProducts

Non-DurableProducts

Product an!ibility

an!ibleProducts

Intan!ibleProducts

Product"sa!e

Consumeproducts

Industrialproducts

Many products can fulfill both the criteria and this characteriation is utilied by the

companies as the marketing strategyAF.

&igure ,' Baic Product Claification

Copeland"s Product Classification

In the rich field of research on classification of goods, the very first comprehensive classification

system for the commodities, which is still accepted as a valid approach and being 0endorsed by

both the 'merican Marketing 'ssociation and the = +hartered Institute of Marketing1

5Mityko, ;@7;, p. 9F;), has been developed by +opeland 578;A). +opeland 578;A) classifies

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goods into three groups of convenience, shopping, and specialty based on the travel effort, brand

comparison effort, and degree of brand insistence dimensions from the consumer"s perspective

5Murphy 6&nis, 78BD: Sirard 6 3ion, ;@7@: Mityko, ;@7;). 'ccording to the +onvenience*

-hopping*-pecialty 5hereinafter referred to as +--) Model, the goods are classified into the

following major sections(

Convenience "oods

Convenience "oods are the products which the customer purchases without perceiving much

about the risk associated with the purchase. The price of such goods is mostly on the lower side

and consumer does not spend much time in making the purchase. #randing is not importantfor

these products and these are purchased by consumers on a regular basis. &xamples of the

convenience good include toothpaste, light bulbs, crackers, etc. +onsumer goods can be further

subdivided into the following categories(

i) -taple Croducts( -taple products are the products which are purchased by the

customers on the regular basis. >ot much thought or consideration is given while

making the purchase. The example of such product is toothpaste or milk. These

products are generally stored at the locations which are convenient to the

customers.ii) Impulse Croducts( These are the products which are purchased by the consumers

without any plan. >o search is done for such products, but is purchased because

of the sudden impulse to make the purchase. 2or example, when the ice*cream

vendor rings the bell, the children are tempted to make the purchase because of

the impulse.

iii) &mergency Croducts( &mergency products are the products which are purchased

because of the emergency situation. >o search is made for the product, but the



easiest and the most convenient option selected. In such cases, even price is the

less of the deterrent. 2or example the ambulance or the services of a car

breakdown services are utilied mostly in the emergency situationsAD.

-hoppin" +oods

-hoppin" "oods are the ones for which consumer compares differing product characteristics

across items. In such cases, before making the purchase, the customer does a search and

compares the price, brand, quality and suitability of the products. Then only the purchase is

made. These products are more durable than the convenience products and hence are purchased

less frequently. The major product in this list includes the products like clothes, furniture,

computer etc. These products can be further divided into the following products(

i) Nomogenous -hopping Croducts( These are the products which are similar looking in

nature and hence the customers try to get the lowest price for these products. &xample

for such product will be a television set which is considered similar by many people.

ii) Neterogeneous -hopping Croducts( These are products which are different from each

other and customer likes to compare them on the features like durability and

suitability before making the purchase. These products include the products

-pecialty "oods

-pecialty "oods represent the products with unique features that attract the consumers to the

stores where they are available and ensure the purchasing without shopping and beyond the

price. These specialty products include products like men"s suits, special furniture, etc.

AD http(//www.unilorin.edu.ng/publications/adeotijo/C4Q3=+TP;@+'--I2I+'TIQ>P;@-T4'T&SR.pdf

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4nsou"ht /roducts

=nsought products are the products which customers are not aware of or if they are aware of,

they never think of buying these products like cemetery plots, coffins, encyclopedias etc. These

products need a lot of marketing effort and personal selling. The unsought products are further

divided into two parts(

i) >ew unsought products( >ew unsought products are those which are innovative in

nature and represent the newer ideas which the customers are unaware about. These

products call for huge amount of marketing efforts.

ii) 4egularly unsought products( These regularly unsought products are those products

which the customers are aware of but rarely sought. The customer"s motivation for

purchase of these products is not sufficient for the purchase, and hence personal

selling is required. 'n example of such product is the gravestone.

+opeland"s classification was a welcome for all the scholars and academicians as it gave an

insight into the marketing strategies that could be followed for these products. This policy

provided the solution to the questions about the product development and product distribution

that plagued all the marketers. Crobably that is the reason the classification is still established and

accepted in the current times as well 5+hamberlin, 78AA). The biggest disadvantage of this

theory is that it is old and outdated and does not take into account the consumers also thinks

about the perception, style and status, which are quite important in current times. -ocial

characteristics of the customers also play an important role in the customers" decision as does the

status of the customers. These factors are key factors which aid the customers" purchase decision

and these are not considered here.A?

A?%ason, R. (**3). %issing lins8 +rod'ct classification t"eor# and t"e social c"aracteristics ofgoods. Marketing theory , % ($), $*9!$.



Bourne"s Product Classification

In 78FD, another product classification approach was suggested by #ourne, yet it has not been

favored widely. This classification focused on the degrees of social and brand conspicuousness,

#ourne"s classification can be explained with the help of the following figure(

&igure -' Bourne( Product Claification

#uying is not always an individual decision, but the choice is influenced by the reference groups

as well. The choice of the customers, as explained above, is very much influenced by the people

they compare themselves with. #ourne"s matrix focus on the impact of this reference goods

only.



/roduct5minus, brand5minus

This category includes the products where the brand and the product are not socially

conspicuous. In such cases, the purchase is made based on the attributes of the product. This

group of product refers to those products and brands, where the reference groups influence

neither the product category decision nor the brand decision. Cersonal influence might still affect

the decision of the consumers, but the impact of this influence will not be much. &xample of

such product is soup, soap etc.

/roduct5minus, brand5plus

This group refers to those products which are used by a large number of group for example the

clothes, which everyone wears. The choice of such products is highly influenced by the reference

groups. They are the product where the reference groups influence the brand decision but do not

influence product category decision.

/roduct5plus, brand5minus

This group refers to those products and brands where the reference groups influence only the

product category decision and not the brand decision. 2or example instant coffee is served in any

place only when the server decides that the coffee she is serving as per her reference goods and

perception is suitable for consumption or not. #rand really does not matter in this case.

/roduct /lus, brand plus

These products are the products where the product itself and the brand as well is the socially

conspicuous and can be influenced by the reference group. 2or example a car is a product where

not only the brand is influenced by the reference group, but the product is also affected by the



influence of the reference group. AB 2or completing #ourne"s model, it is also important to note

that 0in some cases, and for some products, reference groups may influence both a person"s

product category and brand 5or type) choices. -uch products are called product*plus, brand*plus

items1 5Crasad, ;@@8, p.D7).

%olton"s Product Classification

Nolton"s work emerged in 78FB and was based on the product classification given by +opeland.

Nolton tried to fill the shortcomings in the definition of the convenience, shopping, and

specialty classification. Ne explained that the convenience and shopping class product can vary

according to the individual. Ne further elaborated that whether a product is a convenience

product or the shopping product, the decision is based on 0gain resulting from price and quality

comparisons relative to searching costs of individual consumer1 5Murphy 6&nis, 78BD, p. ;?),

's per Nolton, +onvenience goods are those goods where the gain achieved by comparing the

brand and the price does not give much gain. These products are easily replaceable.

2or shopping goods, the individual perceives the cost of searching to be less than the cost that

will be saved by comparing the alternative brands and products.

Ne also addressed the existence of an endeavor element in the purchase of specialty goods

stemming from the limited volume of demand 5Mityko, ;@7;). Ne explained that the speciality

goods are those goods for which the customers are ready to put in some kind of extra effort from

their end for making the purchase. This special effort can be by the choice of the consumer or

because of the need of the consumer. eeping this in mind, it can be fairly inferred that Nolton

believed that both the convenience goods and shopping goods could turn into the specialty goods

AB http(//www.psc.isr.umich.edu/dis/infoserv/isrpub/pdf/SroupinfluenceH;DBDH.C32

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in the absence of the product in the market or in any such case which would call for extra effort

on behalf of consumer.A8

's a follow*up on this distinctive dimension addressed by Nolton 578FB) for specialty goods,

uck 578F8) extended the argument with the claim that for purchasing special brands the

consumer is willing to make a special expenditure of physical or mental effort.

&spin'all"s !odel of Product Classification

The next remarkable model of product classification was developed by eo E. 'spinwall 578D7)

who focused on the five factors which varies as per the customers" usage and preference.

• 4eplacement rate < This rate refers to the rate at which the product is consumed and the

rate at which the product purchase will be need.

• Sross margin < This refers to the amount the customer has to spend the product for the

final product.

• 'djustment <This factor refers to the amount of customiation the product might need as

per the requirement of the customers and the amount of adjustment the customer will

have to make for the same.

• Time of consumption < This measures the time it takes to consume the products.

• -earching time <This refers to the efforts the consumer might have to add for the

purchase of the products. This includes the distance the customer might have to travel for

the purchase or the ease of availability of the product.

The above feature gave the scale of the red, orange and yellow goods which was then used to

identify which table the product belonged to. This resulting model is indicated in the figure

below. 's indicated in the figure, this scale of products is continuous in nature.

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&igure ' $pin%all( Claification 5heor+!

'lthough replacement rate, gross margin, and adjustment dimensions are applicable to high

technology products, time of consumption and searching time would be of no use in terms of

diversifying them. The reason behind is that within the same category, all high technology goods

show similar characteristics in terms of possessing relatively shorter life cycles compared to

other products and requiring approximately the same amount of time and travel distance to the

channel where they are available for purchase. 'part from the applicability in high technology

products concept, this model also lacks considering other types of costs and efforts by taking

only search time in that sense.

Buc(lin"s contri)ution to the Product Classification

In 78DA, #ucklin 578DA) extended the +-- model by emphasiing the dimensions of degree of

shopping effort and degree of preference formation prior to the purchase. Ne said that sometimes

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the customers are truly aware about what product they want to purchase and what brand they

want to focus on before leaving the house. These products do not call for any kind of special

search or extra efforts. Qn the other hand there are products for which customer does not know

which brand to purchase. These products call for search, effort and time on consumers" part

before making the final decision. 'lso, it is not necessary that the brands be searched every time.

-ometimes, the customers take the help of the past decision as well before making the purchase.

Thus he defined the new definitions of the +-- as the following(

i) +onvenience products( These are the products where the consumer has a preferred

brand of the product he wants to purchase along with the associated substitutes for the

same. This reduces the amount of the work the customer has to perform during the

purchase decision.ii) -hopping goods( The shopping goods are those for which the customers try to find

the new solution to the problems every time the purchase is made. &very purchase

decision calls for efforts on from customer"s side in terms of search of the suitable

product for his needs.iii) -pecialty products( These are the products for which the consumer favors only one

particular brand and is ready to bypass even the easily available brands, calling for

extra effort for the consumers" side.

!iracle"s Product Classification !odel

In 78DF, Miracle extended the above model with the nine characteristics to classify the products

as compared to the five characteristics of 'spinwall97. Miracle used nine different characteristics

97 https(//archive.ama.org/archive/4esourceibrary/OournalofMarketing/documents/F@@9A;;.pdf

https://archive.ama.org/archive/ResourceLibrary/JournalofMarketing/documents/5004322.pdf





and divided the products into the group of five , i.e. Sroup I, Sroup II, Sroup III, Sroup IE and

Sroup E. These nine characteristics are explained below(

i) The product characteristics of unit value,ii) -ignificance of each individual purchase to the consumer,

iii) Time and effort spent purchasing by consumers,

iv) 4ate of technological change,v) Technological complexity,

vi) +onsumer need for service,

vii) 2requency of purchaseviii) 4apidity of consumption

ix) &xtent of usage 5Miracle, 78DF).

The classification of the products is shown in the figure below.



&igure /' Miracle( Product Claification

's per this model, the high technology products cannot be defined because there is no group

where the characteristics can be valued in the range of medium to very high. The products can

only be ranged from the low or high priority and there is no middle or extra high range. This is

not true for technology, for example in the case of current research the smartphones are selected

which have medium to very high value for all the given nine dimensions. Thus this view cannot

be used for high tech products.



Development of CSS model in the comin$ years

The attention attracted onto the effort is continued in the work of aish 578D?). 4evisiting the

+-- model, aish identifies two distinct dimensions for the effort as physical and mental again

from the perspective of the consumer 5aish, 78D?). Then the later work of Mayer, Mason, 6

See 578?7) on the +-- model of +opeland 578;A) emerges, remarking that the product

classifications can consist of the combinations of the formerly stated three groups 5+--) < such

as convenience store*convenience goods, convenience store*shopping goods, convenience store*

specialty goods, shopping store*shopping goods, and specialty store*specialty goods < based on

the dimensions of locational convenience, merchandise suitability, value for price, sales effort

and store service, congeniality of store, and post*transaction satisfaction 5Mayer et al., 78?7:

Murphy 6&nis, 78BD).

-hopping goods category within the +-- model is divided into two sub*categories of high and

low intensity with referral to the degree of brand similarity and degree of uncertainty of the

consumer in making a choice 5#ucklin, 78?D). Ret the introduction of the preference goods" is

accepted as the most important elaboration to the +-- model. The preference goods are argued

to be the expanding category, where advertising efforts are also being concentrated, characteried

with high brand preference association in contrast to requiring low shopping effort and weak

connections to the ego and self*confidence of the consumer 5Nolbrook 6 Noward, 78??). It is

this high brand preference, namely the brand loyalty, and social likes or dislikes that

differentiates preference goods from the convenience goods. #eer, toothpaste, a tea of a

particular brand, and soft drinks are blatant examples of preference goods.

2urther development of the +-- model is highly driven by the concentration of efforts on what

the product is. Initial work within this scope proposes that a product is a 0total bundle of



benefits1 as seen by the buyer 5&nis64oering, 78B@) and positions the perception of a

consumer"s benefits as the identifying element based on which the strategic marketing decisions

are to be aligned 5Murphy 6&nis, 78BD).

*otler"s Classification

' different classification was provided by otler in 78?;. This classification differentiated the

services and moved the orientation of the classification to the manufacturer"s perspective. The

products here are identified on the basis of the industrial perspective. The classification groups

the products based on the cost to the manufacturers 5Murphy 6&nis, 78BD). Nence the

classification consists of three groups of goods as follows(

#1$ Materials and parts are goods that enter the manufacturer"s product completely. 4aw

materials 5farm and natural products) and manufactured materials and parts 5component

materials and component parts) compose this group,

5;) +apital items are long*lasting goods that facilitate developing or managing the finished

product, such as machinery 5installations and equipment), and

5A) -upplies and business services are short*term goods and services that facilitate developing or

managing the finished product: maintenance and repair and operating supplies are included here

5otler, ;@@D).

Levitt"s Classification of Product

!ithin the scope of classification of goods, a different conceptualiation is introduced by evitt"s

work 578B7) where the product is defined based on the perceptions of the consumers on four

different levels as generic, expected, augmented, and the potential products 5Moore, ;@@;:



Mityko, ;@7;). 'iming to fill the gap between the promise of marketing and the shipped product,

the roots of this model is very similar to the work of &nis64oering 578B@). 2requently

referred in the high technology marketing literature, this notion is called the whole product

concept" and originally diagrammed as seen in 2igure 7. #ased on the model, layering definitions

of products from core to crust are provided as follows(

• Seneric Croduct( The dictionary definition of the offering aiming to serve the basic

utilitarian benefit. Cractically, it is what comes in the box covered by the purchasing

contract" 5Moore, ;@@;, p.7@B).

• &xpected Croduct( The minimum expectations of the consumer from the product offering.

• 'ugmented Croduct( The value added to the offering, above and beyond the minimum

expectations.

• Cotential Croduct( The product"s auxiliaries being introduced based on the consumer*

demanded, specific enrichments and it is this product that constructs the brand loyalty

and drives the growth of the product 5evitt, 78B7: Moore, ;@@;).

Search +,-perienceCredence !odel of the Product

The first effort in the search*experience*credence model was made by -tigler in 78D7. -tigler

suggested a search theory which explained that the customers are liable to search for the products

until the marginal expected cost of search exceeds the cost of marginal expected returns.

2urther based on the -tigler"s theory and driven by the efforts to explain the consumer"s

perception of and information about the quality of a product, >elson 578?@, 78?9) established a

new model of search and experience goods.



In this model, the goods about which the consumer has clear information about the

characteristics and established knowledge on how to reach them, such as milk, are classified as

ordinary goods. Qn the contrary, if the characteristics were not well*known, then the quality of it

is needed to be considered and evaluated by the consumer while making the purchasing decision.

The basic claim was that the quality has 0profound effects upon the market structure of consumer

goods1 5>elson, 78?@, p.A77). In the model, an important dimension was also introduced as time

< referring to the time of quality evaluation of the consumer either prior or after the purchase.

'ccordingly, >elson claimed that if the quality of a product can be evaluated prior to purchase

by the consumer, then it can be considered and classified as a search good 5e.g. cloth).

Qn the other hand, 57) if there is an absolute need to directly experience the product to attain

information about its attributes or 5;) in cases where searching for the information about the

main attributes of a product is either highly costly or hard to achieve compared to directly

experiencing it, then the product is to be classified as an experience good 5e.g. wine for

experience*7 and house for experience*;). This classification scheme is not dependent upon the

buyer"s perception, but this is more dependent upon the quality or internal attributes of the

products.

3eveloping the model further, 3arby 6 arni 578?A) introduced the concept of credence goods

out of the experience goods that has been contrasted to the search goods formerly by >elson

578?@). They claimed that the main attributes for credence goods 0cannot be evaluated in normal

use1 and the evaluation of their quality requires additional costly information 53arby 6arni,

78?A). The reason behind calling these products as credence goods was explained as the



fact that the consumer"s evaluation of the quality was depending 0entirely on the trust given to

the product manufacturer1 5Oourdan, ;@@7, p.7DB) like in vitamin supplements and many forms

of services 5e.g., medical treatment, car repair, and education).

In order to clarify the -earch, &xperience, and +redence 5hereinafter referred to as -&+)

classification groups, 2igure below provides more examples for each of them based on the work

of Sirard 6 3ion 5;@7@).

Thus the -&+ attributes of the product can be defined as follows(

a) -earch 'ttributes( These are the attributes of the products which can be understood

and analyed before making the purchase. b) &xperience 'ttributes( These are the attributes of the products which can be verified

only after the purchase of the product.c) +redence 'ttributes( This refers to the attributes which cannot be validated any time

during the purchase.

&igure 1' SC Product 6ample

'fter its establishment by >elson 578?@, 78?9) and development by 3arby 6 arni 578?A), -&+

framework has been widely used and extended by other researchers. 'mong those who



contributed to the development of the -&+ classification to its current form, >orton and >orton"s

578BB) introduction of distinction for experience goods as non*durable and durable based on the

frequency of purchase as an added dimension to the model as extention: and lein"s 5788B)

illustration on the shifts from one category to the other after certain conditions are met 5i.e.,

branding and detailed product specifications transforming an experience good into a search

good) are the ones that are significant 5Mityko, ;@7;).

2urther, the experience products was divided the experience goods in two parts%experience 7

and experience ; products. &xperience 7 products are same as the experience products.

&xperience*; products are the products for which the search characteristics cost more than the

experience cost itself 9;.

'mong the several models on product classification, the relatively new -&+ framework has been

applied to many modern research settings 5i.e., services marketing, e*commerce, m*commerce,

etc.) exploring the consumer behavior which is changing with the newly emerged conveniences

for searching and purchasing products. Though these contemporary studies, which are 'fter its

establishment by >elson 578?@, 78?9) and development by 3arby 6 arni 578?A), -&+

framework has been widely used and extended by other researchers. 'mong those who

contributed to the development of the -&+ classification to its current form, >orton and >orton"s

578BB) introduction of distinction for experience goods as non*durable and durable based on the

9; https(//books.google.co.in/books$

id2Fwp#'''K#'O6pgC';9D6dqsearchLexperienceLandLcredenceLproductLclassification6hlen6sa6ved@ah=&wi9ivyNDBrM'hE+kR9N-q+A9KD'&IN'#Gvonepage6qklein6ffalse

https://books.google.co.in/books?id=F5wpBAAAQBAJ&pg=PA246&dq=search+experience+and+credence+product+classification&hl=en&sa=X&ved=0ahUKEwi4ivyH68rMAhVCkY4KHXSqC34Q6AEIHzAB#v=onepage&q=klein&f=false









frequency of purchase as an added dimension to the model as extension: and lein"s 5788B)

illustration on the shifts from one category to the other after certain conditions are met 5i.e.,

branding and detailed product specifications transforming an experience good into a search

good) are the ones that are significant 5Mityko, ;@7;).

Nowever, the focus of this research will be on the work of information oriented approach since

the model that will be utilied during data analysis is an explicit example of this approach. It is

also important to emphasie that the study will be focusing on the attributes of the product and in

doing so concentration will be on the commodity approach of marketing, which is concerned

with the goods in comparison to the functional and institutional schools investigating the

activities and organiations*as*actors respectively, within the three competing approaches of

marketing 5-kUlVn, 2ougWre, 62ellesson, ;@@B).

Search76perience Credence 5heor+ and Smart Phone' Current Reearch &rame%ork

!ith the purpose of increasing the probability of generating valid results, the focused research

object of this study is narrowed down to and clearly defined as the smartphones within the wide

range of high technology products. -martphones, as the most commonly used high technology

products, are formed to provide various convergent features and functionalities to their target

customers in the fast changing environment of information and communication technologies, and

are undoubtedly associated with the idea of technological progress, transforming the daily life

radically. ' smartphone is a mobile device distinguished from the contemporary feature phones

with their advanced capabilities, computer like functionalities and abilities to run applications.

enney 6Con 5;@77) describe smartphones as products offering a convenient user experience



and embodying key gadgets for accessing the mobile Internet while highlighting the capabilities

of running various services such as Internet*based messaging, social networking, content,

and location as well as the advanced computing power of these devices. Initially formed as an

amalgamation of a mobile phone, personal digital assistant 5C3') and a camera: smartphones are

continuously evolving into devices with added functionalities and enhanced capabilities 5Cark

and +hen, ;@@?). The clear evidence for the continuous evolution of the smartphone concept can

be found in the fact that several features and functionalities, which are becoming the standards of

a smartphone of the present*day, used to be the distinctive capabilities of the cutting*edge

technological devices for not more than A years ago < like high*resolution touch screens that

provide full web surfing, portable media players, pocket video cameras, and SC- 5global

positioning system) navigation devices. In addition to amalgamating such features and

functionalities, smartphones also embody the most accelerated technological developments in

consumer products with the highest patent activity, which is also a strong proof of evolution.

!hile the smartphone concept is evolving continuously, the extremely competitive global

smartphone market is recording high growth rates < i.e. more than D@ per cent year*on*year

growth for the last three years. 4esearch companies agree upon the prediction that by the year of

;@7F, annual smartphone sales will reach one billion globally. -pecifically, I3+ 5;@77)

expects total smartphone sales to reach 8B; million in ;@7F: whereas IM- 4esearch forecasts this

figure getting over one billion in ;@7D < representing half of the global mobile handset market.

2inally, the figures published by +analys in ;@7; show that the shipments of smartphones had

exceeded those of C+s with ?A million more units being sold in ;@77 for the first time ever,

signifying a very important milestone. 3ata shows that in ;@77, 9B?.? million smartphones were

shipped, compared to 979.D million C+s marking a D;.? percent increase on shipments of



smartphones for ;@77. !hile commenting on the figures in the press release, +analys EC and

principal analyst +hris Oones says that 0in the space of a few years, smartphones have grown

from being a niche product segment at the high*end of the mobile phone market to becoming

a truly mass*market proposition. The greater availability of smartphones at lower price points has

helped tremendously, but there has been a driving trend of increasing consumer appetite for

Internet browsing, content consumption and engaging with apps and services on mobile

devices.1

's proven with data and deductions of the analysts, smartphone has already become an

irrevocable product of the modern life*styles of consumers to the extent of emerging a consumer

group who 0starts a day with smartphone and wraps up with smartphone1 5ee et al., ;@7;,

p.;?). 'ccompanied with the sustained need consumers have for upgrading their smartphones as

a result of the products" shortened life*cycles due to the fast*changing nature of the

supplemented high*technology based capabilities: it is this perception of consumers setting

smartphones as must*have products that explains the shift towards smartphone manufacturing of

all major consumer electronics and I+T companies 5Tseng et al., ;@77). 'dditionally, this

reasoning also elucidates why manufacturers persistently improve their products and compete

with each other in feature and functionality wars. Qn the other hand, combining unique

mixtures of established and advanced technologies 5Millman6 !all, 788;): smartphones as

high*tech products signify high levels of perceived risk for consumers. It is basically the higher

uncertainty about features introduced with the means of these advanced technologies that cause

higher levels of perceived risk in smartphones and other high technology products alike.



$ttribute $ffecting the Purchae "eciion Regarding *i75ech Product peciall+ Mobile

2or the high technology products, the customer purchase behavior has been utilied by the

marketers. The same difference is elaborated in the diagram below. The sections already

discussed the early adopters and the early majority earlier. The difference between the early

majority and the early adopters is termed as the chasm. The companies try to move from the

early majority to early adopters through the overcoming these chasm by segmenting, targeting

and positioning of the product.

'nother phase with the time and the high technology products is the time. The time is quite an

important factor which impacts the decision of the consumer. The upgradation of the previous

equipment or the purchase of new technology in case of high technology products are highly

dependent on the timing when the product when they are making the purchase.



&igure 11' Cutomer Purchae "eciion!3

#ased on the past research and the above discussed product attributes, following can be

considered as the major attributes that can affect the purchase decision(

i) Croduct understanding( This section talks about how much of the knowledge the

customer has about the product and whether the customer is aware about the features

of the product or not. Nigh technology products are difficult to market precisely for

this reason only. The kind of specifications the product has plays an important role in

the end decision of the customers. +ustomers might even be ready to pay the extra

price if they are aware about the kind of features they are buying into. Thus it is quite

important for the customers to be aware about the products and their features.

9Ahttps(//books.google.co.in/books$

idBOwaCuuKag+6pgC';A76lpgC';A76dqconsumerLbehaviorLtowardsLtechnologyLproducts6sourcebl6

otslyqouswlHj6sig9Ftbtao+F'=yNfgjyM!!s74Mmok6hlen6sa6ved@ah=&wju9r*

msqHM'hKcI9Ned#koKD'&I4j'2Gvonepage6qconsumerP;@behaviorP;@towardsP;@technologyP;@products6ffalse

https://books.google.co.in/books?id=8LJwaPuuQagC&pg=PA231&lpg=PA231&dq=consumer+behavior+towards+technology+products&source=bl&ots=lyqouswl_j&sig=45tbtaoC5AUyHfgjyMWWs1RMmok&hl=en&sa=X&ved=0ahUKEwju4r-msq_MAhXQcI4KHedKBkoQ6AEIRjAF#v=onepage&q=consumer%20behavior%20towards%20technology%20products&f=false










ii) -hopping experience( -hopping experience refers to the how easily the product is

available to customers. The product which are not easily available or which calls for

travel and search. 's explained above, the products which are not easily available are

termed as specialty products which do not have very strong market unless the desire

of the customer is very strong. Thus the customers" shopping experience play an

important role in the customers" purchase decision.

iii) +ustomer service( Qne of the factors of the consumer purchase decision was the post*

purchase behavior. Cost purchase behavior consists of various factors like the

performance of the product itself, the warranty of the product and the customer

service. Cast research has indicated that the customer service after the purchase of the

product is another important factor which influences the purchase decision. The good

customer service ensures that the customers prefer the products of the brand, whereas

bad customer service may sometimes even overlook the performance of the product

itself.

iv) +onsumer"s Cerceived risk( Cerceived risk is considered the major factor that affects

the purchase of the products. 2or the high technology products, the consumer does

not have sufficient knowledge of the products. In case the products are new, the risk

taking will always be high irrespective of the benefits of the product. The consumer

are more prone to buying the products the risk for which is lower and the chances of

losing the money is less 5Oarvenpaa and Tedd, 788D*8?)99. Thus for every new

product, the customers will try to averse the risk. 'n example of this behavior will be

99https(//www.academia.edu/?B?7F78/CurchaseHIntentionHandH#uyingH#ehaviorHtowardsHaptopsH'HstudyHofHstudentsHin

https://www.academia.edu/7871519/Purchase_Intention_and_Buying_Behavior_towards_Laptops_A_study_of_students_in






the postponement of the product purchase or the unwillingness to pay the high price

of the products. 9F

v) 4ole of Cerceived =sefulness( The customers are more likely to buy the product they

find more useful even in terms of the high technology products. -ince these products

are relatively on the higher side of price range, this factor is quite an important factor

for the customers to base their decision on. The use of smartphones can be

multifaceted. !hile earlier the usefulness of the phone was limited to the calls and

messages, the phone is used for multiple factors these days. These uses involves

checking the email, web surfing, watching movies and videos, social media usage etc.

along with the usual features of the phones.

vi) -ocial Influences( The chapter above already discussed the social influences on the

customers" purchase decision. -martphone purchase is highly influenced because of

these social factors. The response of the family, friends, and reference group is

considered as one of the big contributor for the purchase decision of the smartphones.vii) #rand Cerception( -ocial influences are also affected by the brand of the product.

ike all the other features, brand perception plays an important role in final purchase

decision of the product, especially the smartphones.

Concluion

Thus out of all the methods available, -&+ felt the best fit for analying the consumer purchase

behavior for the high technology product. This literature review is conducted in order understand

the development of the questionnaires and to find the tools for analysis of the data obtained

through the survey. Thus for the purpose of the research, -earch*+redence <&xperience attributes

are selected as the sorting criteria for the research. 3uring the due course of research,

9F http(//www.anmac.org/conferenceHarchive/;@@B/HCroceedings/C32/-@FH/CanditP;@arpenP;@P;DP;@OosiassenH-AP;@C-P;@CF.pdf

http://www.anzmac.org/conference_archive/2008/_Proceedings/PDF/S05_/Pandit%20Karpen%20%26%20Josiassen_S3%20PS%20P5.pdf







questionnaire will utilie the theories developed above to form a questionnaire and utilie all the

available information available. In the survey, customer behavior will be analyed especially

with respect to the demographic, the social engagement and other such factors which can

influence the customer purchase decision. The chapter took look at the various available theories

about the product classification and the customer"s behavior in order to find the right balance

between the two. The card sorting exercise will utilie the search*experience*credence theory

utilied in the chapter.

Thus the literature review will provide with the much needed information for the further

research.



A.7 Introduction This chapter explains the research methodology: issues related to the research

instrument are addressed in the light of developing a research technique. The background of the

empirical studies is given and, finally, an appropriate research procedure is discussed and

established. Sraiano and 4aulin 5788?) consider that the major goal and objective of surveys is

to learn about the feelings, opinion, attitudes, ideas, desires, knowledge and self*reported

behaviour of a defined population of people by directly asking them. The answers obtained

through a structured questionnaire give the exact information desired from respondents. In

addition, Sraiano and 4aulin 5788?) explain that surveys, typically, include all types of items %

demographic information, opinions, attitudes and behaviours: such information is useful in

searching and examining the relationships between different variables, either in groups or in a

single*step model. The current research is based on quantitative data analysis. 2or this research,

primary data was collected and only one method was used to collect it. The data was collected

through an intercept survey using a judgmental sample. The criteria used for the sample

population was firstly, students who are computer literate and who know the basics about

computer usage and secondly, that respondents must be planning to buy a computer, specifically

a laptop. 2rom the literature review, it did not appear that any research in this specific area of

marketing had been undertaken previously. The research was designed to develop an

understanding of, and define, the importance of relational orientation and retail store image along

with other variables like trust of the salesperson, commitment to the retail store and involvement

leading to the purchase of high*tech products. The research outcomes were expected to provide

some answers to marketers about effective marketing strategies to persuade customers to buy

from a particular retail outlet by identifying the perception of consumers in terms of various



attributes while making purchase decisions, and the personality of consumers in terms of their

product purchases in the marketplace.

A.; -ample -ie and Copulation The research survey was conducted in six different countries:

vi., India, 'ustralia, >ew Jealand, 2iji, Nong ong and Indonesia: the sample population was

restricted to students in each country. +onsidering the time limit and budget, the student segment

was selected as a convenience sample and because students tend to be technologysavvy and

regular uses of computers. The total sample group for the study was A?@ respondents from the six

countries. The conduct of the survey in the selected countries was undertaken personally by the

researcher in India, 2iji and 'ustralia. Nowever, in >ew Jealand, Nong ong and Indonesia the

survey was distributed by means of an independent contractor. The contractor was given basic

training on how to conduct the survey to meet the requirements of the study, including

information on the structure and intent of the survey questions. 2or Indonesian students the

implementation of the survey was critical inasmuch as their native language was not &nglish.

Initially, there was consideration of the value of having the survey translated from &nglish to

Indonesian language: however, the contractor assured the researcher that data would be collected

from students who were well*versed with the &nglish language. #ased on this arrangement, no

translation of the questionnaire was considered necessary and the contractor was able to conduct

the survey with students who were quite competent with the &nglish language and were studying

a degree programme in &nglish. A.A 3emographics of -ample The sample selected for the study

comprised students who were judged to be a convenience selection. Technology*savvy dare*devil

students not afraid to try new things, reasonably literate, well educated, ambitious, dynamic and

ready to face future challenges were chosen as respondents for the study as being the right

sample representation. The sample was selected, using a general male/female ratio, from the six



above*mentioned countries. The objective of selecting different countries was to check potential

variations in purchasing intention: e.g., based on aspects such as their culture, ethnicity,

profession, purchasing power parity.

A.9 ocation and Seographical +ontext The primary data was collected from geographical

regions that were diverse in terms of purchasing power, education, culture and religion, which

would help in developing a comparison of regional purchasing habits. Crimarily, the survey was

aimed at students and professionals such as retailers, retired people, working employees and

housewives. Nowever, in this study no regional comparison was done: the data was treated as

normal and no country*wise comparison study of the student sample was considered, though, in

future, the data may be used for further research papers. A.F Kuestionnaire 'pproach The

questionnaire in the study was a well*structured, multi*choice questionnaire using the range of 7

to 7@ on a ikert*type scale. The questionnaire was handed to students personally and they were

requested to complete them immediately. >ot a single respondent was given the opportunity to

take it home or to the office and complete it at their leisure. 'ccording to +aja 6 #lair 5788D,

p.FD), 0the questionnaire is based on the desire to collect specific information about a well

defined population. The questionnaire typically contains a number of questions aimed at this

well*defined population, in most cases the questions being closed questions, in which a set of

numbered response alternatives is mentioned1. The questionnaire is available in the 'ppendix at

the end of the thesis. The structured questionnaire was designed based on the conceptual model,

hypotheses and research questions. To make the study simple and more accurate, the

questionnaire was designed based on a ikert*type scale. In order to distinguish the method of

survey and data collection from that of other strategies and to identify its characteristics, it is

further defined below. 'ccording to -udman and #lair 5788B, p.BF), there are various advantages



and disadvantages with questionnaire research methods: for example, 7. The use of a structured

questionnaire means that all respondents are asked the same questions in the same order, which

facilitates data analysis: ;. The use of structured questionnaire allows the researcher to control

the interview without being present physically: A. The use of a structured questionnaire allows

survey interviews to be done by mail or telephone, which is cost effective: 9. The use of mail or

telephone, plus the lower cost per interview, makes it possible to do a large number of interviews

with a broader crosssection of the market. 'part from advantages, the questionnaire format has

its disadvantages, such as( structured interviews reduce flexibility, deep feelings and hidden

motivations cannot be probed very well and questions are best limited to items that have short,

direct answers. These advantages and disadvantages highlight the fact that questionnaires are

used to gain facts rather than in*depth insights into stream*of*consciousness thinking 5-udman 6

#lair 788B). -urvey questions were developed from the review of extant literature described in

+hapter ;. It was carried out via a range of sources such as #usiness -ource Cremier, Oournal of

Marketing, Oournal of 'cademic -cience, Narvard #usiness 4eview, the Internet, marketing

textbooks, computer hardware magaines, and the 'ustralian -tatistics website. More relevant

information on secondary data was included with proper reference to information quoted in the

review.

A.D 3esigning the Kuestionnaire The questionnaire was designed using multi*items on a scale

from 7 to 7@ using a ikert*type scale. The scale used in the questionnaire ranges from 7 5very

little influence) to 7@ 5very high influence). The respondents were asked to complete their

answers for all the questions in the questionnaire, and it was described as mandatory to do so

otherwise there was no point in starting the survey if it was to be left half done or incomplete:

i.e., there would be a negative impact in not getting the information in full. In addition, there



were descriptive questions where respondents needed to write answers in more detail.

4espondents either circled or ticked in front of their answers. 'ccording to -udman and #lair

5788B, p.;@?), there are various stages in designing a questionnaire. They are as follows in Table

A.7(

Table A.7( 2ormation/ 3evelopment of Kuestionnaire -tage 7 Clanning questionnaire content

-tage ; Qrdering the questionnaire -tage A 'dministering the questionnaire -tage 9 2ormatting

the questionnaire -tage F Testing the questionnaire These suggested stages were followed in the

current study. The first stage of designing a questionnaire involved planning in which were

considered the research objectives, conceptual model and the hypotheses for designing questions.

'ccording to +aja and #lair 5788D, p.7;;), 0at this stage we must decide the goals of the

research and determine how best to accomplish them within the available time and resources1.

The first part of the questionnaire related to three questions based on the general expectations of

the respondents. The first question was based on the physical characteristics of laptops and what

respondents were looking for before purchasing. 7B different items were included in the physical

characteristics question 5K7). The next question 5K;) was based on the product life*cycle, where

theory was based on the strategy used by the organisation. 4espondents were given eight

different items in this question and had to identify why the product life*cycle was getting shorter.

4espondents answered using the 7 to 7@ ikert*type scale to help answer whether organisations

are changing the product life*cycle because of consumer strategy, market*driven strategy,

business strategy, sudden decline in sales, increased speed and reduced space of new models,

innovations, competitive pressure or new entrants into the marketplace. Though this area was not

in the conceptual model, answers to these questions helped to get a general feel of the market and

consumer opinion on the dynamic changes in the product life*cycle of different models and



technology product items. The theory of diffusion data is collected through KA in the

questionnaire, where respondents needed to identify their personality in terms of purchase

intention: the question had five major items and one further item. 'ttributes like innovator,

opinion leader, willing to accept change, sceptical and conservative were simplified and explored

with simple, non*academic language so that respondents could understand the meaning of the

questions and answer them using the same 7 to 7@ ikert*type scale. Nowever, it was decided not

to consider this section 5physical characteristics, product life*cycle and diffusion of adoption

theory 5K7, K; and KA) in the research because of a potential for losing focus on relationship

marketing which was the major research area. >evertheless, the inputs and results from these

questions helped with the literature review, managerial implications and general understanding of

the study. The data collected for these questions were available for use in further study and more

research papers can be drawn using the data from those questions. The second part of the

questionnaire 5K9 to K7@) consisted of the major variables established for the study: vi., retail

store image, salesperson likeability, relationship orientation, salesperson trust, commitment to

retail store, involvement of consumer in purchasing process and, finally, purchasing intent.

Earious articles and scales have been used to measure retail store image 54-I*K9). Nowever, in

this study, the concept of Ooyce and ambert 5788D, p.;9) was used: vi., 0memories of the way

stores were and retail store image1 was the first dependent variable of the conceptual model.

Nowever, while testing the variable for reliability and validity of the scale, the desired

meaningful average mean and alpha were not achieved. It was decided to skip this item and

measure the ones which respondents could identify very clearly as separate items, and group like

factors. 4elationship orientation 54Q*KF) was based on the dependent variable relationship

orientation". The scale used was from >eng, !eng and Ri 5;@@A) in 4elational #onds and



customer trust and commitment: ' study on the moderating effects on web site usage". There are

three parts to the question, with factors like social, financial and structural bonds. Twenty*one

different items were used. In the current study, all the scales used by >eng, !eng and Ri 5;@@A)

were used, and they worked perfectly well in data analysis.

+ommitment to retail store 5+QM4-) was measured with KD. There were 79 different items in

the question, representing trust and commitment. Nowever, while doing the factor analysis, the

loading was not grouped perfectly so a few items such as trust and commitment were removed

from the analysis. 'nother reason to remove trust from the question was that trust was measured

as an independent variable in the model. The scale used for this variable was that of Cutrevu and

4atchord 5788?) in ' model of -earch #ehaviour with an 'pplication to Srocery -hopping".

Involvement 5I>E) was measured with K?, having 79 different items from the scale used by

Silles and apferer 578BF): Measuring +onsumer involvement Crofiles". 3etails of the alpha

and mean and other factors will be explained in more detail in the latter part of this chapter.

Involvement of consumers is highly regarded in all technology products because of the specific

technological knowledge required to purchase high*tech products. Curchase intent 5CI*KB) was

measured using the scale from 'aker and 3ay 578B@) in Marketing 4esearch( Crivate and Cublic

-ector 3ecisions". The question had eight items in which respondents completed their answers

on a 7 to 7@ scale. This was the independent variable based on the remaining six dependent

variables. The results of purchase decision explain the intentions of consumers and whether they

are happy with the retailer relationship marketing strategy and willing to move further to actually

buy the product. -alesperson likeability 5-C) was a major dependent variable for this study

5K8). The question had ;A different items and used the scale of #rown, Sene, !iding II and

+oulter 57887), elley, -cott and Noffman 5788?), Michaels and 3ay 578BF) and -axe and !eit



578B;). The items are based on the characteristics of salespeople desired by consumers. There are

a few items which are in reverse order in order to reduce bias and initiate respondents to think of

the answer from the right perspective. 'lso, this helps respondents to identify clearly the

attributes they need from the salesperson with whom they are dealing. In the retail industry, the

salesperson"s professional characteristics play a crucial role: therefore, the results of the question

will be discussed at more length and will determine most of the study so as to understand

whether salespeople are working on relationship*building tactics in their sales transactions. 7AA

Cre*satisfaction of consumers while going

Cre*satisfaction of consumers while going through the process of purchasing is measured in

question K77. There were ;; items in this question which identified the pre*satisfaction level

views of respondents of the product, store and salesperson in general. The scale used for this

variable was from Sanesh, 'rnold and 4eynolds 578BF) in =nderstanding the +ustomer #ase of

-ervice Croviders( 'n &xamination of the 3ifferences between -witchers and -tayers". Nowever,

the analysis of the question is not mentioned in +hapter 9 because it was decided to remove it

from further analysis because the focus on the main business problems and research questions set

for the study would be lost. Nowever, using 'MQ- structural equation modelling, a comparative

analysis could be undertaken by keeping the pre*satisfaction variable and labelling the analysis

as a rival model: then, by removing the variable from analysis again and labelling it as a

proposed model. The result without presatisfaction was taken for the proposed conceptual model.

The demographics of the respondents form the third part of the questionnaire. The demographics

include age, gender, education, place of residence and profession. The demographic question was

put last because of the general understanding that the respondents would feel relaxed in

answering the simple questions and would feel that the survey was nearly over. The most



important questions in the study were kept in the first two parts, when it was considered that

respondents" general motivation to answer the questions accurately and without any bias was

high.

'll questions in the questionnaire were designed as closed*end questions. Multichoice questions

were used to allow respondents to choose the one most appropriate answer: different options

were measured using the ikert*type scale. 'ccording to -udman and #lair 5788B, p.;FF), a

closed question is defined as 0a question with response categories1. The closed*end question is a

question in which respondents must choose the answer from a pre*defined set of responses.

+losed*end questions are efficient and reliable for getting exact answers from a group of people.

'ccording to -udman and #lair 5788B, p.;D?) 0closed end questions force respondents to choose

the option that researchers desire to get1. 4espondents don"t need to think too much in writing

their opinion. +losed*end questions reduce the cost of coding as well as the time taken to

complete: they also reduce the amount of probing. 4espondents just need to choose an option

from among those they have been given.

A.? Cilot -tudy ' pilot study was performed with a convenience sample of ;@ respondents in

order to investigate the scales. The goals in the pilot study were to investigate the reliability of

the scales and to check the scales" face validity. Items were generated from the literature review

and with the involvement of marketing academics. 4espondents indicated that the questionnaire

was too extensive and that they felt uncomfortable answering the same" statement three or four

times. +ronbach"s alphas, item*to*total correlations and exploratory factor analyses were used to

reduce the number of questions. 2inally, marketing academics were asked to judge the

constructs" content validity: they indicated that the selected items closely represented the



underlying constructs. 'fter the pilot study, when no more abnormalities or errors were found,

the formal survey was organised for distribution in the six different countries.

A.8 Crocedure The research was cross*sectional in nature and targeted at retail customers

intending to purchase laptop products from retail outlets. The research instrument was pre*tested

prior to the full*scale fieldwork. Cilot testing was conducted with a small representative sample

of ;@ retail consumers within the Certh metropolitan area in 7A? !estern 'ustralia. The main

purpose was to ascertain the relevance of the items in all the scales, as well as the general level

of understanding and ease of completing the questionnaire. 's stated earlier, however, given that

four of the six scales had been previously used and validated in contexts similar to the current

research setting, particular impetus was placed upon the items and wording that constituted

relationship orientation and salesperson likeability. Siven that the empirical literature within the

customer<firm context confirms the development of a psychological contract in close

relationships, it was anticipated that the construct also would be manifest within marketing

relationships that were more expansive in nature than market*based relationships. The sample

frame was chosen principally because the products and services offered by retailer firms were

specialised and technical in nature. Therefore, respondents would need to adopt a more proactive

role in nurturing the relationship with their retailer and, thus, increase the likelihood of the

prevalence of a psychological contract within the relationship. Therefore, the most appropriate

personnel to target within the retailer firms were salespeople who played a major hands*on" role

within the relationship. This was critical given that the central aspect of the research was to

understand trust and commitment promised by the salesperson and, eventually, the retailer within

the relationship. The intercept survey, therefore, was addressed personally to gather more factual

information from consumers who were experiencing the purchase process within a particular



retail store. 2or convenience in the current research, tertiary business students were selected to

complete the questionnaire and, so that consumers could not make excuses on the basis of lack of

time, it was requested that they complete the questionnaire immediately. In making the initial

contact, respondents were shown an introduction letter developed for the pilot study during the

intercept survey. The purpose was to inform them about, and invite them to participate in, an

important research project related to technology products and the purchasing process. It was

realised that mail surveys would take too long to complete. Therefore, it was decided not to use

mail surveys but to restrict the survey method to the intercept surveys where respondents were

requested to complete their answers immediately. Initially, a survey population of F@@ was

planned: however, the number of respondents was reduced to 9@@ for the intercept survey. The

final valid sample sie in the research was A?@.

purchase behavior of the customer w.r.t attributes

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