Economics and management of enterprises

Consumer behaviour regarding branded and non-branded goods on the mobile phone market: impact of experience, price and loyalty

Economic Annals-XXI

Economic Annals-ХХI: Volume 175, Issue 1-2, Pages: 63-67

Citation information:
Slaba, M. (2019). Consumer behaviour regarding branded and non-branded goods on the mobile phone market: impact of experience, price and loyalty. Economic Annals-XXI, 175(1-2), 63-67. doi: https://doi.org/10.21003/ea.V175-11

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Marie Slaba
PhD (Management),
College of Polytechnics Jihlava
16 Tolstého Str., Jihlava, 586 01, Czech Republic
marie.slaba@vspj.cz
ORCID ID: https://orcid.org/0000-0001-9607-1521

Consumer behaviour regarding branded and non-branded goods on the mobile phone market: impact of experience, price and loyalty

Abstract. This article deals with the consumer behaviour in view of branded and generic (non-branded) goods on the mobile phone market in the Czech Republic. The methodology of this article employs the theory of planned behaviour to investigate how three selected factors – experience, price sensitivity and loyalty influence consumer behaviour on the mobile phone market. The author used a survey of 350 consumers conducted in 2018 to determine the importance of the abovementioned factors for consumer behaviour and loyalty on the mobile phone market.

Most of the respondents (59%) own mobile phones of the brands Samsung (20%), Huawei (16%), Xiaomi (12%) and Apple (11%). In terms of brand ownership, the most loyal are the owners of Apple (91%) and Samsung (84%) mobile phones. The respondents who own unspecified brands are ready to switch to another brand in case of lower prices.

The empirical evidence of the research suggests that the previous experience with the brand is a critical factor influencing consumer behaviour on the mobile phone market: 64% of all the respondents, regardless of whether they prefer branded or non-branded goods, stated that they are willing to pay more for the brand they have had a good experience with. However, the consumers who prefer branded mobile are more loyal. Answering the question «I am loyal to brands of mobile phones I have had a very good previous experience with», 96% of the respondents who prefer branded mobile phones gave a positive answer in comparison with 63% of the respondents who prefer non-branded mobile phones. The conducted t -test proved statistical differences in responses for male and female respondents and both groups of consumers at the confidence level of 0.005.

It has been concluded that the companies operating on the mobile phone market should primarily focus on customers’ positive experience with their products which positively effects customer loyalty to the brand.

Keywords: Consumer Behaviour; Loyalty; Experience; Price Sensitivity; Theory of Planned Behaviour; Mobile Phone

JEL Classification: M30; M31; M39

DOI: https://doi.org/10.21003/ea.V175-11

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Received 23.03.2019

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