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1. Introduction
In recent years the use of mobile phones has become more widespread and continues to grow significantly. Global sales of smartphones to end users totaled 432 million units in the fourth quarter of 2016, a 7 per cent increase over the fourth quarter of 2015, according to Gartner, Inc. The fourth quarter of 2016 saw Apple leapfrog past Samsung to secure the No. 1 global smartphone vendor position. In 2016 overall, smartphone sales to end-users totaled nearly 1.5 billion units, an increase of 5 per cent from 2015.
In addition, as mobile phones become more commoditized, as consumers become more informed about various product features and as the rapid penetration rate rises, marketers faced a critical question: why the growth rate of mobile phone adoption has been so high and what features draw people to the new mobile device.
The author designed and implemented a large-scale consumer study to provide specific guidelines for selecting target market segments, positioning mobile phone within the market and designing an improved mobile phone in terms of price setting, feature prioritizing and optimal design for new products. To position and design a mobile phone that would meet mobile manufacturer’s profit and growth objectives, it was crucial to assure that new mobile phones offer consumers good value for their money; minimize cannibalization of manufacturers’ other offerings; and establish a market positioning that offer management a substantial competitive advantage. In particular, when the market becomes saturated (i.e. digital cameras, LCD TV and smart phones), brand companies must differentiate themselves from their main competitors in terms of price setting, feature prioritizing and optimal designing for new products.
Product features are the biggest competitive tool for differentiating from competitor’s products. Being the first producer to introduce a needed and valued new feature is one of the most effective ways to compete (Mesay Sata, 2013). The purchase of mobile phone is influenced by necessity and utility options. The utilitarian behavior is what the customer perceives and expects on the types of features and functions that a mobile phone must have (Hassenzahl, 2000). Customers purchase mobile phones based on the utility offered and how it is useful in their life (Simonson et al, 1994). During the purchase, the initial image created leads to...