Gauging the Ambivalent Influence of Product Signalling on Smartphone Purchase Decision in Mwanza, Tanzania
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Date
2024-11-30
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Publisher
African Journal of Accounting and Social Science Studies (AJASSS)
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 preinformed 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.
Description
Keywords
Brand Choice, Purchase Decision, Product Signalling, Smartphone.