Empirical Analysis of Factors Affecting the Adoption of Smartphone on Young Generation

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International Journal of Management Science and Business Administration
Volume 4, Issue 2, January 2018, Pages 17-24


Empirical Analysis of Factors Affecting the Adoption of Smartphone on Young Generation

DOI: 10.18775/ijmsba.1849-5664-5419.2014.42.1002
URL: http://dx.doi.org/10.18775/ijmsba.1849-5664-5419.2014.42.1002

1 Santus Kumar Deb, 2 Kamal Uddin

PhD., Researcher at University of Latvia, Latvia and Assistant Professor, University of Dhaka, Bangladesh
Md., Professor and Treasurer, University of Dhaka, Bangladesh

Abstract: The aim of this study is to identify factors of smartphone adoption on young generation this study proposed an approach by dividing smartphone-based services into four different categories of Productivity that incorporate business utility apps (e.g., MS Word file viewer and file manager, easy in use, filling up expectations, article, internet, and education), Entertainment, which includes Game, Sports, Music, Mobile tv, and Photography apps. In addition, Information category contains Finance, News, Travel, Medical, Banking, Weather, and others. Networking indicates those services for the social networking such as Facebook and Twitter and others social networking apps. The survey comprises of four sections and responses are collected in 5-point Likert scale to measure the actual view of the respondents. Pearson correlation and Regression analysis are conducted to measure the degree to a correlation between dependent and independent variables. There is no significant relationship between smartphone services with expensiveness, affordability, and flexibility. But a significant relationship between smartphone services with protection towards the environment, tools for social networking, wireless Internet services, mobile tv & online banking. Out of 150 respondents, about 80% of them are quiet satisfied on smartphone services Among the respondent’s boys are mostly found of using different types of financial services like online marketing, online payment, online banking, etc. but girls are mostly found of entertainment services. Finally, it’s observed that on the eve of the twenty-first-century young generation demand and expectation regarding smartphone services is increasing in every day.

Keywords: Adoption, Young generation, Smartphone

Empirical Analysis of Factors Affecting the Adoption of Smartphone on Young Generation

1. Introduction

Smartphone technology is a relatively new technology that is rapidly evolving and gradually impacting consumers’ behavior, their daily activities, their social activities, the mobile industry, business activities, marketing, education, healthcare and more (Alwahaishi and Snášel, 2013; Carayannis and Clark, 2011; Rohm et.al, 2012). Nowadays, smartphones have become important devices to all consumers’ for communication and productivity as a result of the computing and connectivity capabilities of electronic devices. In specific, Individuals can also use smartphones to connect Internet and use several online services to include instant messaging, email, and social networking and others purposes.

Smartphones (i.e. iPhone and Blackberry, Samsung, Walton, and others) are considered as a next generation mobile phones which have become popular today. Generally, a smartphone is used as a mobile phone which belongs to computer-enabled features. Smartphone service(s) is defined as a mobile telephone set that ensures special computer-enabled features for example; wireless email, Internet access, Web browsing, Personal information management, Entertainment, and many other diverse applications. According to Moore and Benbasat (1991); Venkatesh and Davis (2000) suggested that Information Systems (IS) field, individual users’ IT (information technology) adoption has been studied in organizational contexts. There is an abundant study that empirically investigated determinants of IT/IS adoption decisions and usage.

The use of a smartphone in Bangladesh is increasing with each passing day and the growth of smartphone sales in Bangladesh, especially in Dhaka is much higher because of high living standards in comparison to other districts. Additionally, concerned parties have attributed the following factors as the reason behind the increased use of Smartphone in Bangladesh:
• Low-cost high speed 3G internet services throughout the country
• Equal Monthly Installment plans provided by banks to buy phones
• Discounts and bundle offers provided by different companies to boost sales

Since the foundation of mobile phones, the adoption of mobile services has continued to increase, along with the range of services offered. Nowadays, Smartphone’s are offering a vast range of services that the consumers are willing to consume. These services put a lot of effort into the decision for buying any Smartphone. The Smartphone’s with more services are sold more, making more profits for the Smartphone provider companies. For the increasing demand of Smartphone based services, a survey on the determinants of Smartphone’s demand is necessary. I have conducted a survey mainly on the students of the University of Dhaka, Jaganginagar University and Jagannath University to get a clear response to all the questions on smartphone-based services in Bangladesh.

Finally, the main purpose of this study is to investigate the factors, which influence the young generation intentions to the adoption of the smartphone in Bangladesh. The broad objective of this study is to decide the degree of relationship between functional attributes and smartphone adoption to the young generation. Moreover, there are some other subordinated objectives regarding the determinants of smartphone adoption are; to analyze the critical factors which are mostly affecting the choice and personal preference of smartphone to university students’ and to justify the application of each dimension that affects the adoption of smartphone among the students.

2. Rationale of the Study

A relatively few works and literature on the development of the adoption of smartphone worldwide have been found as yet. Similarly, enough literature on the same area of smartphone adoption is not available which has created a keen interest of researchers to work in this area. Basically, the success of any smartphone marketers relies heavily on the frame of choices to the customers by ensuring that all their needs and desires are met in every way but in future choice tools should be the focal point in creating customer preferences to purchase. Therefore, the first task is to investigate the factors affecting the adoption of smartphone to the students who are considered as a young generation and the next part of the task is to measure the importance of each critical factors in creating customer preferences of smartphone adoption, which will be a unique area of further research of future smartphone users.

3. Literature Review

In today‘s busy schedule smartphone enables users to interact with their friends and 
family any time even at the time of traveling, waiting on bus stop enables users to utilize such time to promote their social life. Moreover, Kang, Lee, and lee (2014) found that the service-oriented functional attributes- wireless internet and mobile applications are more significant to adopt of smartphone regardless of users. On the other hand; Dohmen (2009) found that Mobile wireless technology (MWT) has been used widely, and mobile phones are getting fully integrated into many individuals and organizational user’s lifestyle. Furthermore, Park and Cheng (2007), a study found that technology adoption depends on the cost of purchase, familiarities with technology, easy to use, fast communication, connection with social networks and ease of internet access, at any time and place.

The smartphone is one the most popular communication devices in this modern world. It is a mobile phone running on a complete operating system in a manner similar to a traditional computer, which offers advanced computing abilities and connectivity options as well as mentioned features enable new kinds of mobile services that in turn shape the usage habits of smartphone users (Alfawareh & Jusoh, 2014). A similar study found that social needs, social influences, and convenience are most influences the increase in smartphone usage is the functionality that helps users in their daily life especially business people and university students (Jacob and Isaac, 2008).

On the basis of previous different studies of smartphone adoption enabled the researchers to find out the successful critical factors, which are summarized in a table.

Table 1: Summary of critical factors affecting the adoption of Smartphone (Constructed by Researchers)

StudySuccessful critical factors of Smartphone Adoption
Islam (2017)Performance Expectancy, Social influence, Perceived Risk and Personalization
Uddin and Akter (2012)Service quality and Fair price
Khan et al. (2013)Quality and Band Name
Trivedi and Raval (2016)Price, Social Influences, Brand name and Convenience
Peters (2007)People’s perceptions, expectations, and attitudes
Jacob and Isaac (2008)Social Needs, Social Influences, and Convenience
Alfawareh and Jusoh (2014)Availability of Services

4. Methodology

This study output is measured in two stages process whereas, in the first stage, an exploratory study is used to identify the factors affecting to the adoption of the smartphone after that descriptive study is conducted reveals to wondering the study as it required analysis to determine the importance critical factors of smartphone adoption in Bangladesh. A total of 150 individual Smartphone users has surveyed through a questionnaire. The sample of 150 Smartphone users has selected based on Simple Random Sampling (SRM) method. Survey questionnaires were properly administered to obtain all necessary data on the variables explained above, and also in the model designed.

1.Target PopulationStudents (Male and Female)
2.Sampling FrameMasters and Bachelor Program University Students’
3.Sampling TechniqueSimple Random sampling
4.Sample Size150 (Students’ from the University of Dhaka; Jahangirnagar University; and Jagannath University)
5.ExecutionThe sample of convenient elements will be collected. The selection of sampling units is left primarily to the interviewer.

Data have been collected from both primary and secondary sources whereas to generate primary data a structured questionnaire designed for a personal interview of the respondents. The questionnaire is pretested and utmost care was given to minimize biases and to ensure validity and reliability. Secondary data have collected from different sources for example; journals, newspaper, magazine, and etc. Moreover, the design of questionnaire is used 5 points Likert scale to get the real measure of the respondents. Purpose of Model specification of this analysis is to measure the relative influences of each critical factors on smartphone adoption. The study used multiple regression to find out how smartphone services tools are going to affect the factors to contribute to customer adoption. The general form of multiple regressions Model is as follows:

Y = b0+b1 Ea +b2 Aa +b3 Fa +b4 Ea +b5 SNa +b6 WIa +b7 MTa +b8 OBa+b9 OBa + b10 EBa +b11 EUa +b12 ASa +b13 FEa+ b14 EEa +ei.

Where,

Y= Smartphone services for preference

Ea = Expensiveness

Aa = Affordability

Fa = Flexibility

Ea = Environment

SNa = Social Networking

WIp = Warelesss internet

MTa = Mobile TV

OBa = Online Banking

OBb= Online Booking

EBa= Ebook

EUa = Easy in Use

ASa = Availability of services

FEa = Filling up expections

EEa = eEducation

ei = Error Here

5. Data Analysis and Results

To measure the relationship between critical factors and samrtphone adoption to the young generation in this study used descriptive staticrics and multiple regression. Descriptive statistics is used to measure the central tendency od the sample and multiple regression is used to measure the relationship between the critical factirs and smartphone adoption and also assist to get clear picture of mostly influencing factors of smartphone adoption on the younf generation.

In this regression analysis, the sole dependent variable is Smartphone based services, whereas the independent variables are Expensiveness, Affordability, Flexibility, Protection Towards Environment, Tool for Social networking, Wireless Internet Services, Mobile TV, Online Banking, Online Bookings, Ebooks or Articles, Ease to Use, Availability of Services, Filling up the Expectations, and eEducation. The linear expression for these two types of variables could not be shown because of the ambiguity of the independent variables.

5.1 Result Analysis (Coefficient of Multiple Correlations)

The coefficient of multiple correlations determines the extent or degree of relationships between variables. The degree of relationship and its range is presented that 0 in the range indicate the absence of the relationship, .01-.29 range means the very low degree of relationship, .30-.49 range also indicates that low degree of relationship. But the range from .50-.69 means a moderate degree of relationships, .70-.89 range describes the high degree of relationship whereas .90-.99 means a very high degree of relationship but 1 means the perfect relationship.

This range can be compared with the model summary of the regression model. The “R” relationship of model summary shows the relationships of the coefficient of multiple correlations.

Table 2: Model Summary

ModelRR squareAdjusted R squareStd. error of the estimate
1.737a.589.414.3256

Model summary shows that R = 0.737. This value indicates that there exists a high degree of relationships that means 73.7% correlation between smartphone adoption and critical factors.

Table 3: Model Summary

ModelRR squareAdjusted R squareStd. error of the estimate
1.737a.589.414.3256
a.Dependent Variable: Smartphone adoption
b. Predictors: (Constant), eEducation, Availability of Services, Mobile TV, Ebooks or Articles, Affordability, Ease in Use, Protection towards Environment, Wireless Internet Services, Online Banking, Online Bookings, Filling up the Expectations, Tool for Social networking, Flexibility, Expensiveness

From the model, summary shows that R^2 = 0.589. This value indicates that all the independent variables explain 58.9% variation in the Smartphone-based service which is acting as a dependent variable here. As this result is more than 50%, so we can say that the independent variable is that much influential here. That is why this model is fit for this analysis.

Table 4: ANOVAa

ModelSum of squaresdfMean squareFSig.
1Regression15.022141.073.884.000b
Residual37.018134.276
Total52.040148
 a.Dependent Variable: Smartphone adoption
b. Predictors: (Constant), eEducation, Availability of Services, Mobile TV, Ebooks or Articles, Affordability, Ease in Use, Protection towards Environment, Wireless Internet Services, Online Banking, Online Bookings, Filling up the Expectations, Tool for Social networking, Flexibility, Expensiveness

As the significant level here is 0.00, which is less than 0.05, so the relationships between dependent and independent variables are statistically significant. The result indicates that above mentioned critical factors are affecting to the adoption of smartphone among the university students in a significant way.

5.2 Regression Result Analysis (Coefficients)

Coefficients indicate the significant relationship between independent and dependent variables. In this regards, if the significant level is less than the table value then there is no significant relationship between the independent variable and the dependent variable.

Table 5: Times

ModelUnstandardized coefficientsStandardized   coefficientstSig.
BStd. errorBeta
1(Constant)6.211.6938.957.000
Expensiveness-.070.049-.173-1.425.156
Affordability.112.050.2452.239.627
Flexibility-.288.116-.276-2.476.715
Protection towards Environment.083.073.1051.142.055
Tool for Social networking-.003.084-.004-.038.045
Wireless Internet Services-.067.037-.155-1.819.051
Mobile TV-.019.059-.030-.327.044
Online Banking-.066.036-.165-1.860.045
Online Bookings.041.058.064.702.484
e Articles.005.035.012.148.882
Ease in Use-.059.056-.088-1.049.296
Availability of Services-.109.057-.167-1.912.046
Filling up the Expectations-.065.057-.103-1.142.256
eEducation.019.088.036.404.048
a. Dependent Variable: Smartphone Services

5.3 Regression Equation

Smartphone services adoption = 6.211 + (.07) (Expensiveness) + .112 (Affordability) + (.288) (Flexibility) + .083 (Protection towards environment) + (.003) (Social Networking) + (.067) (wireless internet) + (.19) (Mobile TV) + (.066) (Online Banking) + (.04) (Online booking) + (-.005) (eArticle) + (.059) (Easy in Use) + (.109) (Availability of Services) + (.065) (Filling up Expectations) + (.019) (eEducation)

5.4 Comment on Significance

It can be said that Students’ smartphone preference is dependent on various services tools like – easy to use, social networking, wireless internet, mobile television, protection towards the environment, education, online banking and availability of services. The probability value of social networking, mobile tv, online banking, education and availability of services < 0.05, which indicates the rejection of null hypotheses (there is impact of choice factors on building students’ preference to the smartphone). Social networking (0.045), online banking (0.045), mobile tv (0.044) and availability of services (0.046) are highly significant.

5.5 Descriptive Statistics Analysis

The results of ANOVA table indicate whether the relationship of the dependent variable with all the independent variable is statistically significant or not. From the descriptive analysis, it can be measured the on-an-average influence of each critical factors over smartphone adoption. The descriptive statistics table is as follows

Table 6: Descriptive Statistics (Mean)

MeanStd. deviationN
Smartphone Services4.141.5930149
Expensiveness2.7651.4630149
Affordability3.1811.3000149
Flexibility4.403.5685149
Protection towards Environment3.517.7498149
Tool for Social networking4.168.7014149
Wireless Internet Services3.6711.3727149
Mobile TV3.745.9238149
Online Banking3.7111.4809149
Online Bookings3.570.9318149
Ebooks or Articles3.5701.3914149
Ease in Use3.993.8891149
Availability of Services3.785.9047149
Filling up the Expectations4.087.9439149
eEducation3.6311.1050149

This table indicates that on-an average; most respondents are neutral in terms of expensiveness and the affordability of smartphone-based services. People are highly agreed on the smartphones being flexible and being able to act as a tool for social networking and online activities. Apart from that, the respondents are quite neutral about the rest of the variables. In specific from mean value shows that respondents are more focus on flexibility followed by social networking, expectation fill up, and easy of use. Moreover, in the second stage respondents’ are also given prefrences on availability of services followed by mobile tv, and online banking.

5.6 MajorFindings

From the results of our interview, we have come to the findings that out of our 150 respondents, about 80% of them like to use smartphone-based services and they are quite satisfied with these services. Most of our respondents are neutral about the expensiveness of smartphone’s in Bangladesh but they think that it is affordable by most of the people today. Among the respondents, as all of them are students, they are mostly using information and entertainment based services. And, among the social networking based services, students are mostly addicted to Facebook. Among all respondents, the researcher’s found that boys are mostly found of using different types of services especially financial based services like online marketing, online payment, online banking, online bookings etc. But most of the girls feel more comfortable to use Smartphone in entertainment purpose, for example, mobile tv, social networking, education. As a whole, I have found that the demand and expectation for Smartphone Based Services are increasing day by day.

6. Concluding Remarks

The result of this study suggests some connotations for smartphone operators or same service providing industry in Bangladesh. The significant effects of two external factors use that study in smartphone adoption should take into account not only the availability of services but also another inherent factor is perceived easy to use. From the customer viewpoint flexibility, social networking, perceived services/ expected services are mentioned as important influencing factors of smartphone adoption on the young generation. Firms should understand the importance of quality assurance and value of the service to customers. From the functional viewpoint; easy of use, and perceived usefulness are important factors of smartphone adoption for future customers that’s why each manager in this industry have to plan to make sure service quality, lower price, the better-perceived value of customers to achieve competitive advantages over their rivals.

In addition; there are some limitations of the study that could be addressed in future research in a particular field because the study only focuses on one sector of the sample that means university students. Future study should utilize this methodology for several different categories of sample preferences on smartphone adoption, which will be more representable of the population.

With the development of technology; at present students are feeling comfortable in mobile learning, the smartphone will play a vital aspect in education. The smartphone is such a powerful device which assist the students’ to accomplish their computer enable personal tasks for example E-learning, and global networking. Smartphone mastery is an opportunity for all teaching staffs to use smartphone to boost students’ learning needs without the constraints of time and location. For all these, students will need to perceive the pros and cons of this new technology.

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