Global e-Business Association
[ Article ]
The e-Business Studies - Vol. 17, No. 5, pp.183-195
ISSN: 1229-9936 (Print) 2466-1716 (Online)
Print publication date Oct 2016
Final publication date 30 Oct 2016
Received 08 Oct 2016 Revised 25 Oct 2016 Accepted 27 Oct 2016
DOI: https://doi.org/10.20462/tebs.2016.10.17.5.183

The Study for Global e-Business Competency Factors Influencing Purchase Intention of Smartphone on Chinese Consumer

Chong Don Park**
**Professor, Department of Business Administration Incheon National University propj@hanmail.net
스마트폰 구매에 영향을 주는 글로벌 이비즈니스 경쟁력 요인
박종돈**
**인천대학교 경영학과 교수 propj@hanmail.net

Abstract

The purpose of this study is to explore the factors affecting purchase intention of smartphone in Chinese consumers. Researchers have identified five independent variables that affecting purchase intention of smartphone during this research, which included price, compatibility, security, social influence and consumer innovations, the “satisfaction”, is the mediator, and the purchase intention is the dependent variable. The result of hypothesis verification is the followings: As the independent variables of compatibility and consumer innovations are affects satisfaction; the price, security and social influence are not affects satisfaction and the satisfaction as the parameter affects the purchase intention which is the dependent variable in this study in Chinese consumers. At the end of this study, the marketing implications for advancing to China market based on the results of empirical analysis were presented.

초록

본 연구는 중국고객들의 스마트폰 구매동기 요인을 연구하는데 목적을 두고 있다.

이를 위해 가격, 적합성, 보안성, 사회적 영향, 그리고 제품혁신성을 독립 변수로 설정하여 이들 변수가 고객만족을 통해 실제 구매에 영향을 미치는 정도를 연구하였다. 적합성과 제품혁신성은 소비자만족과 긍정적 관계를 보였고, 가격, 보안성, 사회적 영향은 소비자만족에 영향을 주지 않는 것으로 나타났다. 만족도는 매개변수로서 구매의도에 영향을 주는 것으로 나타났다. 이는 최근 중국소비자들의 구매패텬을 파악할 수 있으며, 중국시장의 경영전략의 수립기초로서 응용할 수 있다.

Keywords:

Smartphone, Purchase Intention, Satisfaction, Chinese consumers

키워드:

구매의도, 중국소비자, 스마트폰, 만족

Contents


Ⅰ. Introduction

Smartphone has become a part of everyday life tool for people around the world. Especially, China’s information Communication Technology (ICT) boomed recently and grew faster than ever before. However, due to its rapidly changing economic environment the technology products manufacturers have to corresponding sales plans and marketing strategies. In these circumstances, the main purpose for this research is to explore the factors affecting purchase intention of smartphone on Chinese consumers and the result of this study will provide important strategic implications to companies and help them to set efficient entry strategy in order to deal with emerging markets.


Ⅱ. Prior Studies for Factors

Kim Lee and Hwang (2011) proposed to analyze factors affecting on adoption of smartphone. The factors such as self-efficacy, social influence, perceived usefulness, and perceived enjoyment and influences of these factors on intention to use are assessed. Lee (2012) to examined the constructs of the cognitive and behavioral attributes to use of smartphone in between Korean and Chinese consumers. The cognitive variables affecting adoption of smartphone classified as perceived enjoyment, perceived usefulness, and perceived ease of use. Recently, smartphone studies have paid much attention to the Smartphone’s technological characteristics such as Dohmen (2009)’s research on Customer Process Centric Smartphone Application. Miyoun Park (2012) proposed to the consumers’ characteristics, trust, and subjective norms affect consumers’ attitude towards the smartphone based on the Ajzen (1985)’s TPB (Theory of Planned Behavior), and that study looks at behavioral control’s influence on behavioral intention to use a smartphone.

This study have five factors that affecting purchase intention of smartphone during this research, which included 'price', 'compatibility '(Chew Jingqun et al., 2012), 'security' (Hyun jun Cho et al., 2011), 'social influence' (Miyoun Park et al., 2012), and 'consumer innovations'. Throughout this research, firms may have a better understanding on how Chinese consumer’s intention to purchase a smartphone.

1. Price

Price is one of the most important cues in marketplace (Chew Jing Qun, Lee Jia Howe, 2012). If buyers perceive that the product’s price to be paid is favorable, then they will be more likely to perceive that the price is fair (Monroe.2003). The price paid by smartphone users may be compared with their usage experiences. Orose Leelakulthanit and Boonchai Hongcharu (2012) said that if the users’ perceptions of the performance or quality of the smartphone exceed their expectations, and the smartphone represents good value for their money, then their perception of the listed price should be favorable. This will lead them to buy the smartphone.

Smartphone Purchase Intention Main Factors

2. Compatibility

Compatibility of product is company need find some way to fits the past experiences and the needs of the potential adopters used to fulfill and satisfied customers need (Chew Jing Qun, Lee Jia Howe, 2012). When a firm focus a lot on their product compatible, product compatibility can enables consumers to build their system that is closer to their ideal, preference and expectation (Farrell & Saloner, 1985).

3. Security

Security of smartphone is when customer using a product, customer feel the degree of invasion privacy of personal or data security (Xu Chen, 2010).According to Rotter (1980), security is positive belief about the perceived reliability of, dependability of, and confidence in using a smartphone. Smartphone’s mobile services, such as Internet, mobile banking, and online purchase are attracting consumers and organizational users (Hassinen et al., 2007). Therefore, the security as an important component affecting attitude toward smart phone purchases intention.

4. Social influence

Social influence includes not only mass media reports and expert opinions (external factors) but also word of mouth from friends, colleagues, and superiors (interpersonal factors) (Bhattacherjee, 2000). In this paper we focus on the interpersonal factor of social influence. Because smartphone is regarded as a new information technology mobile device which creates uncertainty about individual’s expected consequences. Additionally, consumers tend to consult with their social network about this uncertainty rather than consulting the external factors such as media and expert opinions before making a decision to use smartphone (Lopez-Nicolas et alLopez-Nicolas., 2008).

5. Consumer innovations

Innovativeness refers to the tendency of some individuals to adopt new products early. Consumer innovators are valuable resources to firms introducing new products, as they perform essential roles in innovation diffusion (Kelly O. Cowart, 2007). Venkatraman MP (1991) said that the higher consumer innovativeness the higher purchase intention and more purchase action.

6. Satisfaction

Satisfaction is the customer’s satisfaction of the products and it will affect the purchase intention(Annabelle Lee,2013).And the satisfaction is also considered the customers’ expectation of the quality of the products before purchasing the products according customers’ expectation. If the performance of the product is better than customer’s the expectation, the phenomenon is called satisfaction (Westbrook, 1981).

7. Purchase Intention

Tung-Zong Chang and Albert R. Wilt (1994) define, “purchase intentions are formed under the assumption of a pending transaction and, consequently, often are considered an important indicator of actual purchase.” Purchase intention can be defined as an advance plan to purchase certain goods or services in future, this plan may not always lead to implementation, because it affected by ability to perform (Warshaw & Davis, 1985). Purchase intention shows that consumers will follow need recognition, information search through external environment, evaluation of alternatives, make purchase decision and post-purchase experience (Zeithaml, 1988; Dodds, Monroe, & Grewal, 1991; Schiffman & Kanuk, 2000).Furthermore, consumer’s perception on relative advantage of smartphone and efforts required to obtain a smartphone have significant influence on purchase intention. The effort required to obtain a smartphone includes price, search time, availability and so on. (Chew Jing Qun, Lee Jia Howe, 2012)Moreover, purchase intention also treated as metric for prediction of consumer purchasing behavior (Bonnie D, Teresa A, Yingjiao, & Raul, 2007).Besides that, the intention to purchase is known as consumers tendency to behave on an object; it usually measured in terms of intention to buy (Kim & Kim, 2004). Purchase intention can be used for future demand prediction (Armstrong, Morwitz, & Kumar, 2000). There are positive relationships between relative advantage, price, social influence and product compatibility with purchase intention (Yue & Stuart J, 2011).


Ⅲ. Methodology

1. Research Design

The empirical model [Figure 1] of this research examines whether economic value, compatibility, security, social influence, and consumer innovations affect consumers’ satisfaction towards smartphone purchase as well as purchase intention indirectly via satisfaction, and whether satisfaction control influences purchase intention.

[Figure 1]

Research Model

2. Hypotheses

Based on the past empirical studies, the following hypotheses are proposed.

H1: There is a significant influence from price towards satisfaction of smartphone among university student in China.
H2: There is a significant influence from compatibility towards satisfaction of smartphone among university student in China.
H3: There is a significant influence from security towards satisfaction of smartphone among university student in China.
H4: There is a significant influence from social influence towards satisfaction of smartphone among university student in China.
H5: There is a significant influence from consumer innovations towards satisfaction of smartphone among university student in China.
H6: Consumer’s satisfaction positively influences the consumer's purchase intention of smartphone among university student in China.

3. Data

The sample of this study consisted of who either had previously used or are currently using a smartphone in practice. Samples were select from Qingdao University students in Shandong province, China. The questionnaire survey was administered from April 5th to May 5th in 2015. Questionnaires were distributed to two hundred respondents, 13 untrust worthy questionnaires with low validity were eliminated. The final sample size that was valid achieved 187.

The survey instrument consisted of two sections, the first section contained definition of smartphone and items to collect general information of the smartphone usage. The second section contained items to measure the independent variables assumed to affect smartphone purchase intention.

In first section’s Demographic Characteristics including four major items in this study: (1) Age, (2) Gender, (3) Grade, (4) Monthly consumption. The result of respondents is shown that 11.2% respondents are tens, and 88.8% respondents are twenties. Because of all the respondents are students in university. And 40.6% respondents are male, 59.4% respondents are female.33.2% of respondents’ school year are first year, 43.9% are second year, 11.8% are third year, and 11.2% of respondents’ are fourth year. Most of the respondents’ monthly consumption is 800yuan—1100yuan. Demographic features of the respondents are shown in <Table2>.

Demographic Characteristics

Specific Items Used in This Research

In order to test the validity of the variables, an exploratory factor analysis was conducted. We deleted five factors. A3, A4, A5 of price, E1 of Consumer innovations, and G1 of purchase intention were excluded. The KMO statistic for variables factors was good with a score of 0.783, showing that a factor analysis is appropriate for the data. Bartlett’s test was also highly significant (p<0.000) showing that the factor analysis was appropriate. The results of the factor analysis are presented in <Table4>, all variables (price, compatibility, security, social influence, consumer innovations, satisfaction and purchase intention) are reliable since each test indicates its value to be more than 0.6. Which is recorded excellent reliability with Cornbrash’s alpha of 0.733, 0.812, 0.766, 0.795, 0.610, 0.739 and 0.779 respectively.

The Exploratory Factor Analysis

Correlation analyses <Table 5> indicate that discriminant validity is reasonably acceptable. It is shows that the correlations between independent variables which include price, compatibility, security, social influence and consumer innovations influences on the satisfaction, and the satisfaction also influences with dependent variable which is purchase intention of Chinese consumers. Independent variables have positive linear relationship to satisfaction at significant level 0.05. All value in this probable is less than 0.9 which indicates that there is no multicollinearity problem. And except social influence the correlation among other independent variables is less than 0.9 which is between 0.204 and 0.410. Moreover, the correlation at satisfaction is also less than 0.9 which is 0.456.

Correlation Analysis


Ⅳ. Research Findings

In order to verify the hypotheses of the proposed research model, we examined the structural paths between the measured variables.

This model estimated the regression paths from price, compatibility, security, social influence and consumer innovations to satisfaction. The regression path from satisfaction to purchase intention was also estimated.

According to <Table 6>and<Table 7>. H1 indicates that there is a significant influence from price towards satisfaction of smartphone among university student in China. Result shows P-value is 0.143 and β-value is 0.113 which expressed that H1 is not supported. There was no impact between price to university student’s satisfaction which is inconsistent with the study by Chew Jingqun et al., (2012), which is support that price is an important variable impact on satisfaction. But in recent years, the economy of China develops very fast. smartphone as necessities of university student’s life, the price on satisfaction is insignificant.

Regression Analysis Results

Regression Analysis Results

H2 indicates that there is a significant influence from compatibility towards satisfaction of smartphone among university student in China. Result shows P-value is 0.001 and β-value is 0.226 which expressed that H2 is supported. There are researchers that support this hypothesis. Chew Jingqun et al., (2012) said that compatibility is an important issue in smartphone purchase intention. Because of smartphone is compatible to university student’s lifestyle. They can use the smartphone login QQ, Micro-blog and other social network which are nowadays students are very active in it. And students love to surf internet whenever they are, smartphone is able to satisfy their needs. So H2 is fully supported.

H3 indicates that there is a significant influence from security towards satisfaction of smartphone among university student in China. Result shows P-value is 0.132 and β-value is 0.089 which expressed that H3 is not supported. The result is consistent with Hyun-Jun Cho et al. (2011) study, which concluded the security not impact on satisfaction about the smartphone.

H4 indicates that there is a significant influence from social influence towards satisfaction of smartphone among university student in China. Result shows P-value is 0.572 and β-value is -0.038 which expressed that H4 is not supported.

There was no impact between social influence to Chinese consumer’s purchase intention which is inconsistent with the study by Chew Jingqun et al., (2012), In Miyoun Park (2012)’s study investigated both social influence and organizational support together. And the social influence has a significant positive effect on the attitude toward adopting a smartphone.

H5 indicates that there is a significant influence from consumer innovations towards satisfaction of smartphone among university student in China. Result shows P-value is 0.000 and β-value is 0.232 which expressed that H5 is supported. This result is consistent with previous studies as Jiang Ling (2012), Yu-An Huang (2003). Who said that innovativeness was found to have a significant influence on the purchase of cellular phone. Innovators tended to be those who exhibited a high degree of instrumental and expressive expectations and more frequency of information search. And in this study Chinese consumer’s innovation affect satisfaction. So the H5 is supported.

H6 indicates that consumer’s satisfaction positively influences the consumer's purchase intention of smartphone among university student in China. Result shows P-value is 0.000 and β-value is 0.509 which expressed that H6 is supported. This result corresponds to the result of Kyung-Doo Nam (2011) and Hyun-Jun Cho et al. (2011) study.


Ⅴ. Conclusion

In China the demand of smartphone is rapidly increase nowadays due to the current technology trend and evolution of innovation of hand phone. Smartphone become a common need to most people. And some factors that affect consumer to purchase smartphone. In this study, the factors which affect purchase intention of smartphone in Chinese consumers have been tested. Through this study, it is improving the understanding of the Chinese consumers purchase intention towards smartphone. Total number of 187 questionnaires was being distributed and the data collected was processed and analyzed using SPSS 18.0. The key results are summarized as below, consumer’s satisfaction towards smartphone leads to purchase intention and compatibility and consumer innovations may be important factors influencing the consumers’ satisfaction; price, security and social influence are not influencing the consumers’ satisfaction. And this study is necessity for companies to make further improvements and used various marketing strategies to boost the sales of smartphone. For compatibility, companies can invent the smartphone that suit best to the lifestyle of Chinese consumers such as by made improvement in the smartphone design. And companies should also constantly developed new products and meet the requirements of consumer innovations. In a word, this research gives a clearer picture of exploring the factors that affecting the purchase intention of smartphone among Chinese consumers.

There are several limitations in this study. First, the samples only collect on one area of the China, which is in Shandong Province, Qingdao City, Qingdao University. And the subjects of the questionnaire of this study were university students, they cannot represent whole Chinese consumers and it could reduce the accuracy and preciseness of the results. Accordingly, future research of greater scale could direct efforts towards construction of a more representative sample. Second, in this research Chinese peculiarly cultural factors were not be included in model. In the future through continuous research the cultural aspects factors is need to strengthen. And would expand to understanding by Korean consumers especially if the difference of factors influencing purchase intention between Chinese and Korean consumers. Third, there are only five independent variables in this research and there might have other factors which did not take into account. In the future study, we will discuss the other factors that might influence purchase intention of smartphone among Chinese consumers.

Acknowledgments

This work was supported by the Incheon National University Research Grant in 2016.

이 논문은 인천대학교 2016년도 자체연구비 지원에 의하여 연구되었음.

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[Figure 1]

[Figure 1]
Research Model

Contents

ABSTRACT
Ⅰ. Introduction
Ⅱ. Prior Studies for Factors
Ⅲ. Methodology
Ⅳ. Research Findings
Ⅴ. Conclusion
References
국문초록

<Table 1>

Smartphone Purchase Intention Main Factors

Author Main factors
Chwe Jingqun et al., (2012) Price, Compatibility, Relative advantage, Social influences, Purchase intention
Miyoun park et al., (2012) Self-actualization, Organizational support, Social influence, Trust, Behavioral control, Attitude, Behavioral intention
Zou Bo (2011) compatibility, innovativeness, social identity, positive internet word of mouth, fashion pursuit, individuality pursuit, perceived cost, adoption intention
Kim, Sung Gae (2009) Social influences, perceived costs, network externalities, consumer innovations, immediate junctures, recognized suitability, utility, ease of use, receptiveness
Hyun-Jun CHO, Chen Xu (2011) Function & properties, security, applications, perceived cost, social influence, ease of use, usefulness, satisfaction, purchase intention
Kyung-Doo Nam et al., (2011) Function & properties, security, applications, perceived cost, social influence, ease of use, usefulness, satisfaction, purchase intention
Zhenbao Sun (2011) Situational dependence, diversity, security, innovation, self-efficacy, familiarity, perceived easy of use, usefulness, behavioral intention

<Table 2>

Demographic Characteristics

graphic Categories Frequency Percentage (%)
Age
10-19
20-29
N
21
166
187
11.2
88.8
100.0
Gender
Male
Female
N
76
111
187
40.6
59.4
100.0
Grade
First year
Second year
Third year
Fourth year
N
62
82
22
21
187
33.2
43.9
11.8
11.2
100.0
Monthly consumption 500yuan and below
500yuan—800yuan
800yuan—1100yuan
1100yuan and above
N
32
63
71
21
187
17.1
33.7
38.0
11.2
100.0

<Table 3>

Specific Items Used in This Research

Measured items Source
Price A1 1. Price is the most important factor when purchasing smartphone Chwe Jingqun
et al.,(2012)
A2 2. I compare price of other smartphone's brands and store brands before I choose one
A3 3. I buy smartphone because they are worth to used regarding between with their price & usage quality
A4 4. I am uncertain which smartphone’s brand provide real value for money in terms of product quality
A5 5. The cheapness of some smartphone’s brand suggests to me that they may have some risks, such as low quality
Compatibility B1 1. Smartphone is compatible and fit with my needs Chwe Jingqun
et al.,(2012),
Park&Chen
(2007)
B2 2. Smartphone is compatible and fit with my lifestyle
B3 3. Smartphone fit with my habits of using cell phones
B4 4. Smartphone is a good complement to the traditional mobile phones forme
B5 5. Smartphone can fulfill my wants and needs in current life
Security C1 1. Smartphone have a variety of security authentication procedures so it is safe to use Chen Xu (2011)
C2 2.My personal information would be protected when I carry out financial transactions (mobile banking, Internet shopping payment) use the smartphone
C3 3. I believe when I use the smartphone the privacy and personal information to be protect
Social
Influence
D1 1. Friends and family are very helpful to me in making decision of buying smartphone Chwe Jingqun
et al,(2012)
D2 2. I will ask the opinions from my friends and family when buying a smartphone
D3 3. Friends and family give me valuable advice when I buying a smartphone
D4 4. I trust my friends and family about their opinions and advices of smartphone
D5 5. I will purchase a smartphone because my friends and family recommend to me
Consumer
Innovations
E1 1.When a new product comes out I have to replace it as soon as possible Kim,Sung Gae
(2009)
Chooho-Zung
(2011)
E2 2. I tend to want to know the new media and technology for the latest information
E3 3.When I use the new media and technology can increase efficiency about my life or work
E4 4. I tend to trying to learn a new up-to-date equipment usage
Satisfaction F1 1. I am satisfied with the smartphone Chen Xu (2011),
Yan Lu yang
(2009)
F2 2. I am satisfied with the smartphone more than the value of my expectations
F3 3. The smartphone can meet my request
Purchase
Intention
G1 1. I intend to purchase smartphone in the near future Chwe Jingqun
et al,(2012)
G2 2. I search for information about smartphone from time to time
G3 3. I always talk about smartphone with my friends
G4 4. Purchasing of smartphone is beneficial for my daily life
G5 5. I willing recommend my friend to buy smartphone

<Table 4>

The Exploratory Factor Analysis

Factor
1 2 3 4 5 6 7
B1 .816 -.007 .155 .080 .035 .144 .143
B2 .801 .056 .161 .106 .119 -.051 -.007
B3 .798 .093 .086 .119 .112 -.111 .137
B4 .599 .147 .036 .139 .069 .245 .178
B5 .544 .030 .104 .172 .181 .288 -.012
D2 -.045 .770 .107 -.051 .153 .104 .059
D3 .035 .760 -.007 -.076 .177 .073 .236
D4 .105 .744 -.007 .153 .185 .042 .031
D1 .035 .703 .030 -.060 .169 .252 -.057
D5 .199 .670 .089 .163 -.149 -.208 -.002
G3 .098 .014 .848 .060 .042 .073 .094
G2 .103 .013 .786 .107 .118 -.038 .129
G5 .165 .093 .650 .255 -.040 -.183 .088
G4 .139 .116 .592 .317 .057 .161 .194
F2 .052 .030 .236 .786 .119 -.008 .066
F1 .233 -.038 .150 .771 .037 .061 .028
F3 .225 .091 .140 .666 .113 .179 .205
C3 .102 .167 .093 .057 .896 -.001 -.059
C2 .162 .243 .083 .121 .758 .175 -.073
C1 .257 .173 .007 .116 .588 .066 .341
A1 .060 .083 .009 .133 .043 .835 .045
A2 .188 .133 -.049 .027 .119 .794 -.037
E3 .156 .195 .209 .100 .074 -.054 .780
E4 .046 -.014 .139 .325 -.172 .276 .642
E2 .277 .018 .341 -.046 .093 -.249 .537
Factor
name
Factor 1
Compatibility
Factor 2
Social
influence
Factor 3
Purchase
intention
Factor 4
Satisfaction
Factor 5
Security
Factor 6
Price
Factor 7
Consumer
innovations
Cornbrash’s
alpha
.812 .795 .779 .739 .766 .733 .610
Eigenvalue 6.095 2.890 2.037 1.668 1.416 1.130 1.030
% of
variance
explained
24.379 11.559 8.149 6.673 5.664 4.520 4.118

<Table 5>

Correlation Analysis

Price Compatibility Security Social Influence Consumer Innovations satisfaction Purchase Intention
Note: PC is the Pearson correlation
** Correlation is significant at the 0.01 level (2-tailed)
Price pc.
sig.
1
Compatibility pc.
sig.
.266**
.000
1
Security pc.
sig.
.248**
.001
.382**
.000
1
Social
influence
pc.
sig.
.202**
.006
.220**
.002
.393**
.000
1
Consumer
Innovations
pc.
sig.
.060
.418
.372**
.000
.164*
.025
.190**
.009
1
Satisfaction pc.
sig.
.204**
.005
.410**
.000
.262**
.000
.129
.079
.365**
.000
1
Purchase
intention
pc.
sig.
.024
.744
.352**
.000
.221**
.002
.163*
.026
.475**
.000
.456**
.000
1

<Table 6>

Regression Analysis Results

Unstandardized
coefficients
Standardized
coefficients
t P-value Hypothesis
B Std.Error Beta
Note: * dependent variable: satisfaction R-Square=.242 F=11.564 P-value=.000
Constant 1.607 .327 4.916 .000
H1 Price .113 .077 .101 1.472 .143 Not support
H2 Compatibility .226 .068 .254 3.349 .001 support
H3 Security .089 .059 .114 1.512 .132 Not support
H4 Social influence -.038 .066 -.041 -.567 .572 Not support
H5 Innovations .232 .064 .254 3.608 .000 support

<Table 7>

Regression Analysis Results

Unstandardized
coefficients
Standardized
coefficients
t P-value Hypothesis
B Std.Error Beta
Note: * dependent variable: purchase intention R-Square=.208 F=48.696 P-value=.000
Constant 1.607 .327 4.916 .000
H6 Satisfaction .509 .073 .456 6.978 .000 support