Chapter 2

Literature Reviews

This chapter include relevant theoretical model and following by related works and a comparison of iOS and Android system.

2.1 Review of Relevant Theoretical Models

@@ The purpose of literature review is to review the critical points of current knowledge including substantive findings as well as theoretical and methodological which contribute to research topic in hand. Other than that, literature reviews also known as secondary sources, it only reporting the past research and do not unveil any new or original research information.

2.1.1 Model of Consumer Behavior

The starting point for understanding consumer behavior is the stimulus-response model shown in figure 2.1. Marketing and environment stimuli enter the consumer’s consciousness, and a set of psychological process combine with certain consumer characteristics to result in decision processes and purchase decision. (Kotler, 2012)

Figure 2.1 Model of Consumer Behavior


Based on the objectives of this research, marketing stimulus (products & services and price) and consumer characteristics (social and personal) is used as independent variable. Moreover, purchase decision in the buying decision process is used as dependent variable.

2.1.2 Personal Factors

Personal characteristics or demographic factors that influence a buyer’s decision and this research use as independent variables include age, gender, income and education. Thus, this research uses demographic factors to find relationship with decision to use mobile operating system.

2.1.3 Social Factors

Social factor affect our buying behavior (Kotler, 2012). Social identity theory originated by Tajfel and Turner in 1979, which explain the member of particular social group need to follow all the conditions of their group to avoid being discriminate. In the social identity theory, different social contexts may affect the way an individual to think, feel and do to his personal, family or national ―level of shelf (Turner, 1982; Jane & Peter, 2000)

Social identity theory refer to individual in the particular social group self-categorization themselves in the ways conform to their group norms or do everything that may favor to the group. According to Turner and Tajfel (1986), the individuals‘ action to categorizing themselves as one of the group members was enough for them to display in-group favoritism (Jane & Peter, 2000; Abrams, 1992).

If most of the member in particular social group adopted the smartphone, the individual who not yet adopt in that social group will consider adopting, because he or she want to be categorized in that social group, and want to be part of them (Jane & Peter, 2000; Abrams, 1992).

Thus, this research uses social factors as variables called Social acceptance and Word of mouth effect to find relationship with decision to use mobile operating system.

2.1.4 Product

The goods and service combination the firm offers to the target market, including variety of product mix,features, designs, packaging, sizes, services, warrantees and return policies.

• A product is anything that can be offered to a market for attention, acquisition, use or consumption that mightsatisfy a want or need. (Kotler)

• A service is any activity or benefit that one party can offer to another that is essentiallyintangible and does not result in the ownership of anything. (Kotler)@@

• “Product” includes packaging, as a subset of the total offering. Brand managers use packaging as a badge, enhancing the product’s value. Here’s an example: In fall 2008, McDonald's scrapped and changed its package design across 118 countries, 56 languages. Packaging can increase the perceptions about the quality of the product.@@

• A Product or service also should have Purpose, which is discovering the product’s realvalue, use, difference, reason, or function for the consumer and user.

Thus, this research uses product factors as variables called Appearance, Specification, Application, Stability, Compatibility and After Sale Service to find relationship with decision to use mobile operating system.

2.1.5 Price

Price is one of the most important cues in marketplace. The economics and consumers elements can be used to interpret the view about price. Price is represented as constraint to be trade-off products for each unit with maximum utility from economics perspective. No hidden information exists in exchanging products in marketplace. The issue of price has been discussed as critical factor requiring consideration with limited budget on purchase intention (Erickson & Johansson, 1985). Even it is in intrinsic attribute information (Mitra, 1995). A set of acceptable price range is established when consumers purchase products. Purchase intention tends to be reduced when the actual price on products is higher than acceptable price range and vice versa (Dodds W. B., 1991). If the price is lower than acceptable price range seriously, consumers are lack of confidence towards the products quality (Peter, 1969).

With reference to (Jacob & Olson, 1977), this paper argued that the price is a cue to simulate the consumer‘s perception on purchasing products and the price can reflects psychology response on consumers mind after contacting price. Simultaneously, the consumer makes decision whether to buy the product or not based on integrated all information. It was based on the well-known model which is known as “Simulate-Qrganism-Response Model” (S-Q-R Model) to explain. The price is a helpful cue to infer by consumer‘s internal knowledge related to products (Erickson & Johansson, 1985). Similarly, the other also prove Jacoby‘s model in advance that it indicates that price standard is estimated by perceived quality and perceived sacrifice (Monroe & Krishnan, 1985). It means high price results in high product quality and eventually enhances purchase intention directly. In terms of Monroe‘s concept, the role of price which influenced purchase intention was not only includes perceived quality but also perceived sacrifice (Lefkoff-Hagius & Mason, 1993).

Thus, this research uses price factor to find relationship with decision to use mobile operating system.

2.2 Related Work

2.2.1 The Consumer’s Preferred Operating System: Android or iOS (Vinamra Jain & Ashok Sharma, 2013)

Google’s Android and Apple’s iOS have been the frontrunners in the Smartphone era that we have beenwitnessing. Since the past 5 years we have seen revolutionary changes in the usage of mobile phones. Apple with itsiPhone series created ripples in the market but in 2007 Android OS launched by Google challenged the dominance ofApple iOS.

Further we have seen the smart phone market was fuelled by youth who have preference for innovations. They arethe ones who have been downloading various Apps and fuelling the growth of such phones.

A comparative study was done keeping this in mind to identify the consumer’s preference towards the two most popular OS. An attempt is made to identify various factors that influence purchase decision between them and lastly to analyse which OS gave user’s more satisfaction.

The key finding to achieve the objectives was Android applications are easier to use than Apple iOS.

2.2.2 Consumer Behavior in Apple’s App Store (RomelAyalew, 2011)

Mobile applications stores such as Apple’s App Store and Google’s Android Market revolutionized the distribution of applications for mobile devices. However, with thousands of application submissions, limited testing resources and the lack of an effective filtering mechanism, application stores suffer from information overload and a risk of releasing poor quality applications that could create confusion to consumers and may seriously affect the App store markets. Thus concern has been raised whether applications have been developed according to the need and interest of consumers. Therefore, the purpose of this Study was mainly to identify and get insight into the main factors that mobile

application consumer takes into consideration when purchasing mobile applications from the desktop iTunes App Store and the mobile App Store on the iOS devices: iPhone, iPad and iPod Touch.

In this study both qualitative and quantitative case study approach was used. Accordingly twelve participants were selected from Stockholm and Uppsala area and their behavior in the Apple’s App Store from the desktop iTunes and the mobile App Store on iOS devices was observed and recorded. Additionally questionnaires were administered to all participants in order to gather the necessary information.

Consumers on the App Store behave differently depending on the unit they are using. This is because applications on the App Store are presented differently in the desktop iTunes App Store and the mobile App Store on the iOS devices. The study shows that young consumers with lower income purchase apps more frequently than the consumers with higher income. It also shows that consumers often consider the description, the screenshots, and the ratings when they are interested in buying applications. Furthermore consumers take a look more on ratings in the list on the iPhone and iPad App Store because the ratings are not shown in the list on the iTunes App Store. Similarly consumers tend to read the customer reviews more on the iTunes and iPad App Store as the customer reviews on the iPhone App Store is displayed in another page. Consumers were found to be more attracted by visual elements that they are already familiarized with, apps with famous logos and known fonts and styles but also to coherent and descriptive app names and strong colors (i.e. red, green, yellow, black and blue, respectively). The majority of the participants found the iTunes App Store messy and cumbersome to use. They preferred using the iPad App Store because they found it to be a good mixture of both iTunes and iPhone App Store but also because it has more options to consider.

Although consumers behave differently depending on the unit they are using, the visual element of the apps, prior knowledge of consumers about the name of the apps, ratings, easy accessibility of screenshots and customer reviews of the apps were found to be the main factors to be considered by consumers when they visit app stores for purchase. Thus application developers and digital magazine publishers should consider these consumer behaviors in order to influence more downloads and successfully sell apps on the app stores.

2.2.3 Factors Affecting Consumers’ Choice of Mobile Phone Selection in Pakistan (NaveedSaif, 2012)

The study discusses the factors that affect/motivate Pakistani consumers in their mobile phone choice decision. A sample of 100 people was taken by using the sampling Sampling). For this particular study four important factors i.e. price, size/shape, new technology features, brand name were selected and were analyzed through the use of questionnaire in registering consumers’ these factors. From the analysis it is clear that consumer’s value new technology features as the most important variable amongst all and it also acts as a motivational force that influences them to go for a new handset purchase decision. The study also discusses that when selecting between different mobile phone handsets consumers prefer well known brands instead of non familiar brands or Chinese handsets. The study also shows that price does affect consumers’ choice for a mobile phone but from low monthly income to higher income earning consumers. From the study it is clear that consumers in Pakistan are well aware of the new technology trends in the mobile phone industry. The study also reveals male respondents were more interested in the new technological developments in the mobile phone industry as compared to female respondents.

2.2.4 Adoption of smartphones: iPhone. Research of adopting a mobile phone innovation from private consumers' viewpoint. (EeroEkebom, 2012)

The purpose of the research was to find out what affects the decision when people adoptor reject a new mobile phone innovation; an iPhone. The already existent research didnot answer the question of motivators of adopting mobile phone innovations except forat the most on a very general level which makes the topic of the research fresh. In thisresearch is widely used and discussed technology adoption models that are central toresearch in information systems science and which have been used as a basis for a largeamount of scientific research. Also in this research are used models from behavioralscience and social science such as the theory of reasoned action, theory of plannedbehavior and diffusion theory. These sciences in part aim to explain the motivators ofhuman behavior and general adaptation behavior. The research was done from aconsumer’s viewpoint. Since the consumer market is filling up with new smartphoneinnovations, the research topic is current and will be interesting at least in the nearfuture as well as no end to the trend of new smartphones can yet be seen. iPhone wasselected for the research as it has been the first product to introduce some specificqualities in a smartphone when entering the private consumers’ market.

In the research qualitative analysis was used as a research method. Research data wasobtained from respondents by individual interviews. Main theories used in the researchwere Diffusion theory, the Theory of reasoned action (TRA) and the Theory of plannedbehavior (TPB).

Research results reveal that a too high price can seriously impair the adoptionpossibilities of an innovation. By using Mill’s method of agreement it could be deducedthat pricing of technology to be adopted has heavy relational weight as one of themotivators in making the technology adoption decision. As a result of this it could beargued that adoption could be speeded up by offering low-priced tying deals and leasingcontracts through businesses for their employees.

2.2.5 Investigation Toward Smartphone Users’ Need Before Develop Mobile Application Program (Chiou- Shu J. Hwang, 2012)

In recent years, smartphones have been found of liking by consumers from allethnic groups. Manufacturers also invest a lot of efforts related to R & D of hardware and software; therefore, currently smartphones’ models become an international hot topic. According to IDC report, the first quarter of 2011, the smartphones sales grew 98% in Asia Pacific, and it is the first time beyond the Europe, Middle East and Africa. It means that the Asia-Pacific became the world's largest smartphone market, which includes China, Taiwan, Japan, South Korea, India and other countries. It can be seen that Asia-Pacific smartphone market is making amazing growth rate. In the first quarter of 2011, Taiwan's top five smartphone operating systems were shipped proportion: Symbian (41%), Apple iOS (26%), Android (17%), Windows (15%), and BlackBerry (1%). The above data clearly shows the battle has been extended smartphones’ application programs (AP) dispute; therefore, various smartphone manufacturers, telecommunication business, developers want to grab all this pie of the smartphone market. Therefore, it is very important to observe people's smartphone usage, and to meet the functional needs of the public, which means design a proper smartphone application program can increase the business opportunities. Therefore, this study investigated the views of smartphone users to explore the relevance of the real needs, and contribute to personnel or vendors directly in R & D application program. It hopes to develop application program in accordance with consumer demands, thereby reducing cost and risk. The qualitative research interviewing was adopted firstly in this study for collecting views and satisfaction of application programs for smartphones consumers, then dealing data with classification, coding, and analysis. Secondly, the quantitative questionnaire was adopted. In this study, questionnaires were done via the most popular Google Web platform. The questionnaire could be filled out regardless of the computer, smartphone or internet, either directly iPad. Study covers all consumer groups, is not limited to those who hold only smartphones. Actual collection is 304 questionnaires, and the samples are not categorized, and not limited to purchased, not purchased, have been used and unused, etc. but covers all consumer groups. Questionnaire results showed that smartphones owners have accounted for 192 (63.2%), and does not own smartphones users accounted for 112 (36.8%), and the top three smartphone brands accounted are the HTC 22%, Nokia 13%, and Apple 11%. The first priority to choose smartphone is functions; second priority is popular, then in order of advertising effectiveness, work needs, gift from friends and relatives, invited by friends’ recommendation, etc. The "Information" factor is the highest average score, followed by the "advantage" factor, "leisure" factor, "social" factor and "shortcomings" factor. The smartphone users most care about is sending and receiving information in respect of the functions. In analyzing the survey data, this study found that the following points can be used as future in-depth investigation of the direction: first, the mobile user's gender for "social" function level; there are significant differences in demand, because this project's survey found that more women than men emphasize this feature. Second, the younger of the smartphone users have more emphasis on "merit"; however, the so-called "merits" refers to what capabilities? Refer to hardware or bandwidth on the need for special design and specifications? Does it imply that mobile hardware manufacturers and AP designers should work together to develop? The above concerns are good for the more in-depth study of the future. Third, the samples with age under 18 and the female are more stressed the “shortcomings” of smartphones. That is, smartphones without a preference function. In other words, those users would be impacted by emotions, habits and other less preferred of smartphones. The overall results found: first, smartphone-users are still looking forward to new features appear; second, the relative vendors and application program engineers should be courage to lead the development of new smartphone features or AP and not dare to change the user's habits.

2.2.6 Mobile Application Ecosystems from the Application Developers' Perspectives: the Cases of App Store and Android Market (Maryam Roshan Kokabha, 2012)

The study provides an insight into the mobile application ecosystems which are shaped around the novel phenomenon of app stores. It investigates the important factors that application developers perceive in their interactions with these ecosystems. The motivation for the study stems from scarcity of earlier research on the app stores despite their considerable impact on restructuring of the global mobile industry. The aim is to understand the current structure of the ecosystems, and to find out the factors that application developers find important during their activities on these ecosystems.

The study undertakes a multiple-case study approach by focusing on the application ecosystems that have shaped around the two largest market players (i.e. App Store by Apple, and Android Market by Google). The empirical data are collected by an original data gathering method on the Internet with is supported by concurrent data analysis. The method allows for collecting immediate, in-depth qualitative data from a large number of developers all across the world.

Findings are twofold: 1) The study shows that in the current structure of mobile application ecosystems, platform providers, as the keystones, hold most of the traditional roles of the industry into their app stores’ technological settings. As a critique to the current literature on business ecosystems, the study indicates that the platform providers can apply high entry barriers to the ecosystem for developers even at the early stages of evolution if assured of their app stores’ benefits. Additionally, the study contributes to the current literature by introducing a new strategy for integration of application distribution process (semi-integration) which is applied by Google. 2) The study finds that application developers are highly influenced by the network effects on the app stores, and suggests that the cross-side network effect has a stronger effect on developers’ behaviors. The study contributes to the current research on app stores via empirically supported findings on developers’ perspectives. It outlines developers’ requests for: a reasonable entry barrier to the ecosystem that allows the qualified developers in; a comprehensive documentation affording the expectations of beginner to advanced developers; a flawless development platform with facilities for memory management and fast testing of applications; and a fast review process for quality control of the published applications. It also confirms that the potential for the global economy of scale of a platform is highly acknowledged by developers in their attitudes towards the application ecosystem.

2.2.7 Exploring the Factors Affecting Purchase Intension of Smartphone: A Sstudy of Young Adults in Universiti Tunku Abdul Rahman, Perak Campus, Malaysia (Chew Jing Qun, Lee Jia Howe, Lim Chee Thai, Loke Wei Wen, Wong Teik Kheng, 2012)

This research study was carried out to explore the factors affecting purchase intention of smartphone: A study of young adults in Universiti Tunku Abdul Rahman, Perak Campus, Malaysia. Researchers had examined four factors that affecting purchase intention of smartphone. Factors included relative advantages, price, social influence, compatibility. Diffusion of Innovation Theory, Social Identity Theory and Theory of Materialism were being used to explain the independent variables and dependent variables. This study was a descriptive research study. Quantitative data collection method and convenience sampling method had been used. The target population is undergraduate and foundation young adults in Universiti Tunku Abdul Rahman, Perak Campus, Malaysia. This study used primary data collection method and secondary data collection method. Journal, internet research and text book had been used as secondary data collection. Questionnaire-based survey was used and 400 sets of questionnaires were distributed to respondents and being analyzed by using SPSS.

Descriptive analysis, reliability test, Pearson correlation coefficient test, multiple regression analysis and central tendency were being chosen as data analysis techniques. The questions and scales in questionnaires were considered to be reliable as the entire Cronbach‘s Alpha was more than 0.7 which was indicated as very good. Based on Pearson correlation coefficient analysis, the results indicated that there was no multicollinearity problem which is not more than 0.9. There was a positive relationship between independent variables and dependent variables. According to the ANOVA table, R square showed that the independent variables were significant to explain the variance in consumers‘ confidence level. R square indicated that there was 52.1% of the variation in dependent variable can be explained by independent variables. Three hypothesis proposed in this research were accepted.

In conclusion, the research had met its main objectives by validating that social influence, price and compatibility were significant influence the purchase intention while only relative advantage are having less impact to the dependent variable.

2.3 A comparison of iOS and Android systems (Devin Coldewey, 2013

- Independent

Android is as same as PC which apps can be installed from anywhere. Android-OS devices can be easily connected to any external devices via USB. Accessing files and adjusting the settings of the phone can be done in a jiffy.

- Powers

Ability to customize the system is one of the strength of this operating system. Android apps can also be installed to optimize the machine. Another advantage of this system is "Multitasking" which can run multiple applications simultaneously on a single time.

- Creative

For any Android phone, the new theme could make the same device feel like the new one. Android enables users to customize home screen creatively, especially, for those who like to chat aficionados. Android also offers enormous numbers of Keyboard to choose from play store and ability to type by swiping makes android more unique.


- Simple

iOS is not a complicated OS at all. There are main supports from Apple such as iTunes, Games Center and iCloud which make the system unified. (One account can be used to access those supports). The most interesting of the system is safe from malware.

- Stability

Not only home screen of iOS is working smoothly, but applications also are. Good battery life per charging cycle, even many applications are left opened. The performance does not deteriorate from the number of applications in the device.

- Fancier

iOS is outstanding in entertainment. A lot of Apps and games are high quality including premium apps from Apple. The new and updated iOS version can run old applications from previous version of IOS.

Features comparisons

1.Notification Bar / Notification Center.

The first Notification Bar that was developed by Android which may not have as much finesse or beauty. Today, the Android Notification Bar can be modified to use real- time updates. The performances are also able to zoom in to see more detail without having to access the app directly. When apps, music files, video or data are downloaded, the Android Notification Bar will be able to show the result. This makes android is very easy to use. Now, look at of iOS Notification Bar, there is quite limitation of the display, for example, no icon shows. It is just only a brief warning. Therefore, the advantages Android would be the part of showing stock information, weather alerts or the others apps on the home screen such as Facebook, Twitter, Line, Whatsapp and others which can be turned on and off via the Notification Center. Currently, users can reply or post Facebook and Twitter directly through the Notification bar itself.


2. Menu and Icon.

Let's start with the Android, on the Android Menu, users have to choose wide range of tuning it whether to move left, move right, move up, move down, or it may be something more striking. Users can also download a launcher to change the style of menu as well. The downside of this variety might be that Android’s icons offer too many forms which may not be as desired. Unlike the iOS, style icon is in the same direction and the same size which is neat and in orderly alignment. But the problem is very serious, it is not possible to change the menu at all. The theme cannot also be changed. On the home screen, decorating screen with Widgets is also not possible.


3.1 Gallery of iOS

The iOS focuses on ease of use, viewing images with fast data retrieval. But users do not get to play much on anything. Sharing those images has limitation. It is possible to send an MMS or EMAIL and a few Social Networks such as Facebook and Twitter, but the highlight would be storing those pictures in iCloud instantly and users can also send photos via the iDevice, for example, iPhone is used to take photos, but the images will be sent and stored in the iPAD or iPOD immediately. No need to waste time to transfer data from one device to another.


3.2 Gallery of Android

Since Android is used in multi-brand devices, the differences of Gallery are varied by those specific brands. Not to mention about the Interface, the users have ability to share any data freely as needed via the apps downloaded in the device. The ability to see the location of the image will enable the users to cognizant that this image come from which part of the world. Another capability of the Gallery on Android that is to extract images from Facebook and Twitter into the Gallery, so the users can see them all through the Gallery. Main highlight is the ability to hide the images or video which keep them for only user to view solely.


4. Chat System Video Call and Email

Android is the product of Google, therefore, all the Google products are installed from manufacturers. No need to download anything extra. Let's start with Email on Android Phone, Gmail is used in all Android device. The ability to display those mails as viewing from computer will enable to see all the files no matter whatever files are attached. You will not miss it one bit. The Android’s chat system is called Gtalk. Surprisingly, most people use Gmail account to download the app and sign up when using android smartphone the first time, but why the Google GTalk Video Call is not so popular in Thailand . Unlike the iOS system, called Facetime, the Video Call system which most people are familiar with. There is also a chat system called iMessage, which limited only iDevice only (look similar to BBM) is also popular as well.


5. MAP

Originally, The Google Map is a mapping system in the iOS, but APPLE, now, has their own map in the name of APPLE Map, Therefore, APPLE has removed the Google Map from all iDevice, however, in Android Phone, Google Map is still remained. Both maps function similarly from mapping system, traffic report, GPS navigation to real-time 3D navigation map. Since Google map is launched before APPLE Map for quite a while, then, clearly, Google map will have more detailed data than apple map. The intelligent navigation will choose a path that looks best to you automatically. However, the pros of APPLE Map is the application can load data more quickly with stunning and detailed 3D images.

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