Gauging the Ambivalent Influence of Product Signalling on Smartphone Purchase Decision in Mwanza, Tanzania

Abstract

Cellular industry has experienced an exponential growth and enormous jumps since its inception. Smartphones are getting smarter and stylish than in their earlier decades when the idea was immature. Consequently, the production of varied brands of mobile phones is rapid and huge. The influx of multitudinous brands of smartphones in the Tanzania market has exposed consumers in this country to choice dilemma. The current study sought to establish the effect of product knowledge on smartphone consumers’ purchasing behaviour. A mixed research approach was deemed appropriate since it entails collection of both numerical and non-numerical data for analysis. The use of Cochran formula led to inclusion of 384 participants. Nevertheless, the non-response of some individuals limited the sample size to 75 participants. Hotelling’s T-squared approach facilitated the analysis of quality mean difference between informed and uninformed customers. Further, field observation was made by a researcher along Lumumba Street in Mwanza. Data analysed by linear regression facilitated the estimation of the respondents ‘attitude differences. The gathered evidence showed that smartphone buyers with adequate information prior to shopping demonstrated higher quality products compared to buyers with limited information prior to shopping. Equally, the collected evidence showed that the price of smartphones increased with its quality, implying consumers paid extra cash on smartphones of higher quality. Moreover, the findings showed that pre￾informed customers rarely considered buying low quality phones sold at low prices. The conclusion drawn from the collected evidence is that there is high correlation between product signalling and consumers’ purchase decision for smartphones. The study recommends that, the Tanzania Communication Regulatory Authority (through TCRA), together with the Tanzania Bureau of Standards (TBS) closely monitor brands, specifications and quality of imported smartphones in the country. Further, sharing product online reviews by smartphone manufacturers/vendors is likely to improve consumers’ purchase decisions. Lastly, the study is useful to smartphone vendors to develop their marketing approaches based on customers’ preferences.