The Effect Of External Cues On Mobile Phone Purchases In Sri Lanka

Abstract

Unlike any previous technologies, mobile phone is now perceived as a social necessity where irrespective of demographical differences, most people posses it. As mobile phone has reached its maturity stage, consumers hardly differentiate based on technological features alone where they refer many external factors for their purchase decision. Due to globalization and liberalization of markets, consumers are exposed to many mobile phones with different brands, from different country of origins and at different price. Consumers and market show mixed response towards these cues when these cues are favourable and unfavourable. Therefore, this study intents to identify individual and combine effect on external cues- Price, Brand, and Country of Origin- on consumer mobile phone evaluation in Sri Lanka when those cues are favourable and unfavourable. Further, this research tends to find out the cue that has greater effect on consumer product evaluation. Building on extensive literature, a model of consumer’s product evaluation that includes the major external cues is proposed. A questionnaire based survey is adopted as strategy. The study revealed that brand, price and country of origin do influence consumer product evaluation where brand has the larger effect among all. Further it found that there is difference in effect when it moves from unfavourable model to favourable model. Furthermore, combine effect found to have higher effect than stand alone effect. Importantly, this study found that weak brand effect cannot be improved even it is couple with favourable cues.