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Panasonic is a leading smartphone manufacturer facing a unique challenge. They have recently
launched new smartphone models: Model: 2024. This model offers updated features,
performance, and pricing. Panasonic wants to understand the reasons behind the consumer
buying behavior and make informed marketing decisions. As a Marketing Researchers,
Management asking you to address the following questions:

1. What are the key factors that influence consumers to choose this new smartphone?

2. How do social influences impact consumer decisions for these smartphones?

3. Are there any psychological factors, like brand loyalty or status associated with owning a
particular model, affecting the buying decision?
What are the key factors that influence consumers to choose this new smartphone?
• Purchase intention: Actual purchase behavior can be measured with the help of purchase
intention and purchase intention is a predisposition of the customers regarding their action of
purchasing. Consumers' willingness to buy a product can be described through the extent of purchase
intention. Purchase intention is an advance planning of the customers for purchasing certain products
in future. It describes an individual's preference for product purchase and their categorization of the
available options. Purchase intention represents consumer's willingness to purchase, that is, if
purchase intention is high the likelihood of consumer willingness to purchase a product or service is
also high. At first, consumers will go through the recognition of the product to purchase after that they
search for information about the product, then evaluate, purchase and feedback about their response
stated that, what cross in the mind of customers' signifies their intention to purchase. The
characteristics of smartphone such as the brand name, quality, price, innovation awareness, and
recreating capability etc. can influence the buying behavior of customers before purchasing. There are
many brands, models and designs available in the smartphone market that create difficulties for
consumers to choose a smartphone. When customers have intention to buy smartphone, they generally
consider several factors like-brand, price, functions, reputation, durability, social influence, relative
advantages etc
Product features : Product features refers to the attributes of a product that can satisfy consumers'
needs and wants through having, using and applying the product. Product characteristics along with
product quality and functions can affect the adoption and usage of product. Different consumers have
different emotion on attributes of the product. Sometimes, consumers don't know how to judge the
quality of products. In most cases, they feel for difficulty of information processing and inconsistent
product attribute reviews. For improving the performance of the products, many components like
software and hardware are developing faster, and both components are considered by the customers
before purchase. Smartphones are also assembled as per consumer preference on numerous
components and peripherals. Many small companies are making computers and smartphones those are
carrying out the same functions what the consumers actually expect . People with different needs and
wants can chose smartphone with different features. Hardware (such as body of the smartphone, size,
weight, design) can be physically touched while operating software (such as Android, iOS, Windows, and
memory) includes computer programs, procedure and documentation. Customers are more preferable
with the design, color, screen size, camera, voice activated dialing, wireless connectivity, gaming facility,
speedy internet browsing, and video calling as features of a smartphone brand. Design was considered
as the most important determinant of consumer purchase response. Most of the college students search
for the size, physical appearance and menu organization of a smartphone brand. Technology, OS version
and hardware features also have a significant effect on young student's choice while purchasing a
smartphone. Innovative features, durability and portable aspects do arrive on top of the list in
consumers' choice of smartphone brands .
Brand image : Brand image refers to the perceptions and beliefs that the customers hold, which
reflects the association placed in the memory of customers . Brand image explains how the brand is
perceived by the consumers . It is the means of making choices by the consumers about specific brand
and the available alternatives after gathering information. Brand image is formed through the effective
communication of brand regarding its name, logo, symbol or attributes; from consumers experience
with the brand and their perception about the brand; and from the diverse group of social influences . In
the field of high-tech new products like smartphones and tablets the effects of brand image is very high.
Reputed brand with higher image enjoys the major advantages compared to non-reputed brands as it is
associated with psychological assurance . How a product is perceived and come into customers'
memories is termed as the product image. It is a perception of customers towards the products or
related associations as reflected by the experience or imagination of customers . Brand experience
applies to all kinds of products and services that consider human being as an emotional as well as a
rational decision maker during their purchase, repeat purchase and recommendation behavior. Brand
experience is the consumers' internal behavioral and subjective responses at different levels of
interaction, both direct and indirect, with brand-related stimuli. They are getting more attention from
marketers as their brand preference is an important step towards understanding consumer purchase
behavior . Brand name, another construct of brand image and identity, has the most significant effect on
the increasing demand for smartphone among customers. Brand and brand ambassador are the
important drivers in purchase decision of smartphone.
Product price: Some people think a product's value is better against the amount paid but others may
think it as just opposite. Different people have different perspectives and ideas about the value for money.
Hence, price deduction may affect the customers' purchase decision. Most of the time, customers have
higher intention to purchase a product, if the discount rate is higher. There is also opposite picture like,
when the discount rate is lower, customers may have lower intention to purchase a product . Although
price of the product affect consumers purchase decision and consumers often try to maximize their value,
but they are rarely afraid of spending big amount of money for purchasing their desired smartphone.
Purchasing of smartphone depends on a particular choice situation that is guided by factors such as price,
brand, features or properties etc. Price is the foremost influencing factor to the choice of purchasing a
smartphone. Price plays an important role in creating customer value and deciding customer purchase
intention. Demand for smartphones are increasing rapidly and price is one of the factors affecting this
demand and the purchase intention of the young customers, specially the university students But for
purchasing a smartphone, price is not a key concern to the people when the convenience provided by the
smartphone is worthy enough. The customers are also willing to pay a little higher for the smartphone
 2. How do social influences impact consumer decisions for these smartphones?

Changing of thoughts, feelings, attitude, and behavior, intentionally or unintentionally, and being
influenced by other person of the society is termed as social influence. Social influence affects behavioral
intention of customers as it is associated with the way other people influence one's beliefs, feelings and
behavior and people often adopt the thoughts, feelings, attitudes and behavior of others . Surrounding
people influence the action of consumers. Social influences inaugurate the impacts of three interrelated
social forces on an individual to adopt or reject a new system; those are subjective norm, voluntariness,
and image . It happens from the interaction among the various levels of people in the society those who
are known to each other like parents, family, peers, friends, relatives and so on . While purchasing any
product, family members can strongly influence buyer behavior . Some customers purchase high priced
smartphone to demonstrate their social status. Besides, internet creates both positive and negative
influence on the customers purchasing intention through social media communication Customers can
learn and get available information about different brands from various online media provided by other
consumers sharing own experiences and opinions . People can also be influenced through social media
such as Facebook, Twitter, Instagram and so on. They can find comments and product reviews from other
users those who currently or previously used the smartphone. Media, parents and peers usually influence
consumers purchase intention of Smartphones . Young generation especially students are very much
depended to the suggestions from others when purchasing smartphone Throughout the Covid-19
pandemic time, advices and recommendations from pertinent and important people become more
important for purchase decision making of individuals.
 Are there any psychological factors, like brand loyalty or status associated with owning a particular
model, affecting the buying decision?
Psychological factors are crucial in shaping consumer behavior. These factors are mainly internal and
subjective, involving how consumers perceive, interpret, and process information about a consumer
purchase.
Key psychological factors affecting consumer behavior include motivation, perception, learning, beliefs, and
attitudes.
•Motivation refers to the internal drive or desire that prompts consumers to take action, such as buying a
product. Various factors, including personal needs, desires, and goals, can influence motivation. For
example, a consumer motivated by the need for security may be more likely to purchase insurance or invest
in a secure financial product.
•Perception refers to how consumers interpret and make sense of information about a product or service.
Various factors can influence perception, including the consumer’s past experiences, expectations, and
cultural background.For example, a consumer who has had a positive experience with a particular brand
may have a more favorable perception of that brand than a consumer who has not had any experience with
the brand.
•Learning refers to how consumers acquire new knowledge, skills, or attitudes about a product or
service. Learning can occur through various channels, including personal experience, observation, and
communication. For example, a consumer who has had a positive experience with a particular product may
be more likely to purchase it again.
Are there any psychological factors, like brand loyalty or status associated with owning a particular
model, affecting the buying decision?

• Beliefs refer to consumers’ cognitive frameworks or assumptions about a product or service. Beliefs
can be based on personal experience, cultural values, or social influence. For example, consumers
who believe organic products are healthier may be more likely to purchase organic foods.
• Attitudes refer to the consumer’s overall evaluation or perception of a product or service. Attitudes
can be positive, negative, or neutral and can be influenced by various factors, including personal
experience, social influence, and marketing messages.
For example, a consumer with a positive attitude towards a brand may be likelier to recommend it to
others or purchase from it again.
Understanding these psychological factors and their impact on consumer behavior can help businesses
develop effective marketing strategies that resonate with their target audience. By appealing to
consumers’ motivations, perceptions, beliefs, and attitudes, businesses can build stronger connections
with their customers and drive more sales.