Price Not Only Motivator to Cellphone Buyers: Study
By Allan Pulga
Today’s cellphone consumers are less concerned with how much a handset costs, putting more emphasis on what it can do and whether or not it’s a flip-phone, according to new research from NPD Research.
The recent study, based on purchasing preferences over the past seven quarters, showed that desired capabilities and flip-phone design were the highest criteria (about 40 per cent of respondents) for buying a cellphone.
The third most important criterion in choosing a particular phone was that it is a “good brand,” which NPD says reflects a mature market. “Buyers have obviously come to trust certain handset makers over others.”
Other important criteria, such as “nicer looking/attractive design” and “easy to use,” were also ranked ahead of price. In fact, “low price” was ranked twelfth among all criteria in the fourth quarter of 2006. However, NPD qualifies that while consumers are reluctant to cite a low price as a reason for purchasing a particular handset, they can certainly be deterred from buying one they consider overpriced.
The study also found that buyer age plays a significant role in handset purchasing. Different motivators drive buyers from different age groups. For example, buyers aged 18 to 24 chose “it’s a cool phone” as their top motivator in 2006. Those 25 to 44 most often chose “had the capabilities I wanted,” while buyers 45 and older chose “flip phone/can be closed” as their top purchasing criterion.
Thirdly, NPD identified certain gender differences among cellphone buyers. Women tend to be more motivated by user-friendly flip-phones and price considerations. Men, on the other hand, are inclined to seek the latest technology, brand reputation, long battery life and specific phone capabilities.
The study’s findings can be helpful to vendors in matching a phone to a person’s purchasing demographics and preferences. NPD says manufacturers offering a wide array of flip phones have tended to have greater success than those with limited flip-phone options – in essence, variety is key as long as flip-phones are available.