SHAKEEL AHMED

BUS60013
100074306
1. COMPANY BACKGROUND

2. RESEARCH TOPIC

3. OVERVIEW OF THE ISSUE

4. GAP ANALYIS SWOT ANALYSIS

5. VARIABLES

6. LITERATURE REVIEW

7. RESEARCH METHODOLOGY

8. DATA ANALYSIS

9. CONCLUSION

10. LIMITATION

11. RECOMMENDATIONS

12. REFERENCES

13. APPENDIX
 Founded in 1997

Headquarter in New Taipi City, Taiwan

Manufacturer of Smart Phones and Tablets

Cher Wang and Peter Chou founded HTC in 1997

Declared 31st most innovative company in 2010

Source: HTC.com
Research Topic
The rapid decline of market share of HTC smart phone since
2011 in USA
Overview Of The Issue
TopSmartphone OEMs
3 Month Avg. Ending Jan. 2016 vs. 3 Month Avg. Ending Oct. 2015
Total U.S. Smartphone Subscribers Age 13+
Source: comScore MobiLens

Share (%) of Smartphone

Oct-15 Jan-16 Point Change
Total Smartphone 100.0% 100.0% N/A
Subscribers
Apple 43.3% 43.6% 0.3
Samsung 27.9% 28.5% 0.6
LG 9.8% 9.6% -0.2
Motorola 5.1% 5.0% -0.1

Others 10.6% 10.1% -0.5

HTC 3.3% 3.2% -0.1
Strengths Weaknesses
Strong R&D (Scroxton 2016) Shipment delays of flagship phones in USA (Luk 2016)

Aggressive Innovation (Brewis 2016)

unaggressive marketing approach (Gray 2013)
Multiple Awards and recognitions (HTC Co 2016)
End user experience highly criticized (Spence 2016)
Wide portfolio of smartphones(Brewis 2016)
Production cost is high (Spence 2016)

Opportunities Threats
Target more customers by producing low end Fierce competition from famous brands in high end
smartphones like its competitors (Cheng 2013) smartphone market (Culpan 2015)

Consider to enter Chinese Market (Reed 2013) Cheaper Substitutes(Culpan 2015)

Patent wars in Global Smartphone market (Brewis 2016)

Summary of Diagnosis
Given below factors causing the sales decline of HTC

HTC made mistakes in its product pricing and it had too many models,
which confused consumers (Wall street Journal 2013)

Less Marketing channels - HTC could not come up with premium brand
like I phone and Samsung despite of being in this industry from a very
long time (Wall street journal 2013)
Significance of the study
This study will provide a concept for HTC company for a better understanding on factors
that influence the purchase intention of smartphone among young adults in Kuching
Malaysia.

According to Telecoms Consulting Team, 81% of Apple consumers will stick to Apple brand,
50% of Samsung smartphone owners and merely 15% of HTC users is likely to purchase
the same brand again. Therefore, marketing team of HTC have to closely align its
positioning methods to perfectly suit the respective targeted consumers segments.
Dependent And Independent Variables
IV

IV Price IV

Brand Brand
Quality Awareness

Consumer
Purchase
Intention

DV
Source : (Steenkemp et al 2003)
Purpose Statement
The purpose of this study is to explore if perceived brand quality, price and
brand awareness influences the consumer's purchase Intention of HTC
smart phone in Kuching-Malaysia.

Research Questions
Is there a relationship between perceived brand quality and consumers
purchase intention of HTC smartphone.

Is there a relationship between price and consumers purchase intention of

HTC smartphone

Is there a relationship between brand awareness and consumers purchase

intention of HTC smartphone.
Literature Review
Brand Awareness
Brand awareness can be interpreted as the ability of a consumer to recall and acknowledge a
brand in different situations (Aaker 1996)

An item with a high level of brand awareness will get higher buyer preferences since it has
higher share in the market and reputation (Dodds et al, 1991).

Perceived Brand Quality

(Aaker 1991) expressed that perceived brand quality is not an item's physical quality but that
is an intangible, general nonphysical feeling about a brand

As indicated by (Batra et al. 2000), it was found that worldwide brands even have preference
to local buyers owing to higher perceived quality and prestige.
Literature Review
Price
The price is defined as the money that customers exchange in terms of service or product, or
the value they receive (Kotler and Armstrong, 2010)

According to (Aaker, 1991) the price has a significant impact on brand loyalty which in turn
effects on customers purchase intention.

Hypothesized relationship between consumers purchase intention, brand Quality, brand

awareness and product price (Steenkamp et al 2003)
Research Methodology
Concurrent Triangulation Method
The triangulation design is a one phase design in which researchers implement the
quantitative and qualitative methods in the same time frame and with equal weight (Creswell
et al. 2003).

Rationale
Uses Qualitative and Quantitative, results in a stronger research design method (Creswell
et al. 2003).
Gives a more complete and far reaching understanding of the research issue than either
quantitative or qualitative methodologies alone
Data Collection Method
Primary Data
The sources of Primary data are the information gathered from first hand sources such as
survey, questionnaire and observation (Kotahri 2009)

The questionnaire survey was used as main data collection instrument for this study since
the questionnaire survey allows researchers to examine and explain relationships between
constructs, in particular cause-and-effect relationships (Saunders et al. 2009)

Secondary Data
Secondary data consist of documentary, survey and other multiple sources such as
newspapers, journal, books or magazines (Kotahri 2009)
Sampling Technique & Sample Size
Non Probability-Purposive/Judgement Sampling
The process whereby the researcher selects a sample based on experience or knowledge of
the group to be sampled (Kumar 2006, ch12, pg 206-214)

This type of sampling method is selected due to its convenience in terms of saving time,
money and efforts (Kumar 2006, ch 12)

In the current research the sample size is 80 and the number of respondents is 68

Target Population
For this research, sample was collected from targeted population of University strudents in
Kuching

The targeted demographic was young adult between 18-38 years of age.
Research Instrument
Questionnaire Design
Quantitative questionnaires are useful as the results derived are quantifiable and measurable
compared to other variables in an impartial way (Saunders et al, 2009)

Section A ( Demographics and general Information)

Section B (Brand Awareness)
Section C (Price)
Section D (Perceived Brand Quality)
Section E (Purchase intention)
Research Instrument
Construct Measurement
There are 4 types of constructs measurement; they are interval scale, nominal scale, ordinal
scale and ratio (Cavana 2001)

Nominal Scale - (Kinnear 1993), nominal scale

is used for identification purposes because it has no numeric value.

Likert Scale - Likert scale is an ordered, one dimensional scale

from which respondents selects one option that best supports
their view (Rocco Moliterni 2008)
Data Analysis

Price 3 Paurav 2009

Data Analysis
Data Analysis
From the result, perceived brand
quality has the highest mean among the
other variable with 3.2328 and the lowest
standard deviation with 0.81.

This indicates that the values in the data

collected from the respondent are close
and similar to each other.
Data Analysis
It ranges from value of -1 to +1. The higher the
correlation coefficient indicated the stronger the
relationship between the independent variables
with the dependent variable.

Past research - (Moslehpour & Huyen 2014), percei

-ved brand quality- University students in Taiwan -
HTC Smart phone.

(Kuang Chi, Ren Yeh & Yang 2009) Brand Aware-

-neess, Taiwan

(Sata 2013) Price, Ethiopia

Data Analysis

R Square shows that 53.5 per cent of the purchase intention can be
explained by three variables brand awareness, pricing, brand quality.

This also indicates that the relationship between the dependent varia-
-ble and independent variables are medium to strong.

However, there are 46.5 per cent of the variation in purchase

intention and could be explained by some other factors.
Conclusion
The objective of this research was to examine the underlying factors that affect the purchase
intention of HTC smartphone amongst University students in Kuching.

According to the Pearson correlation results, brand awareness followed by perceived brand
quality are the dominant factor affecting on the purchase intention of HTC smartphone of
University students in Kuching.

To test the effects of three independent variables on purchase intention Multiple Regression
analysis was used. All the three independent variables combined significantly influence the
consumers purchase intention of smartphone phone devices.
Limitations Of The Study
Limited Geographic Area

Involvement of certain age Group only

Small Sampling size

Consideration of other variables

Limited access to technology such as SPSS software

Recommendations
It is recommended that HTC Inc should concentrate more on developing quality and
affordable smart phones and spend more time on enhancing their products to offer it at lower
prices which can be done by employing cost reduction measures and most importantly involve
themselves in aggressive marketing and promotional schemes to increase brand awareness
amongst the population which in the result will increase market share of the company as more
people will be inclined to buy their smart phone.

Large Geographical Area

Involvement of different segment group
Increase Sample size
Consider Other Variables Product Design, User friendliness, Brand Prestige (Sata 2013)
APPENDIX
Brand Awareness
Price
Perceived Brand Quality
Purchase Intention
THANK YOU