A Study on Factors Affecting Smartphone Purchase Decisions in Indonesia

Abstract

Smartphones are constantly developing and increasingly impacting human behavior, making them a key benchmark of current telecommunications technology. Smartphones, whether in our pockets or our hands, have become an indispensable component of our daily existence. Indonesia has one of the world's highest smartphone adoption rates. Additionally, Indonesia is the fourth-biggest smartphone market worldwide. However, the increase in smartphone users in Indonesia has not translated to an increase in smartphone sales, which have decreased in Indonesia. So, understanding customer behavior is crucial for smartphone companies. As a result, the aim of this study is to explore the role of social influence, product features, and brand image on smartphone purchase decisions in Indonesia. This research uses a quantitative method, with primary data gathered through a survey with a total sample size of 278 respondents. The Partial Least Square Structural Equation Model (PLS-SEM) with the help of SmartPLS software is the data analysis method used in this investigation. Findings from this study are that social influence, product features, and brand image all significantly influence on smartphone purchase intention. The study also found that Purchase Intention has significant effects on Purchase Decision. Then, to have more precise results, future research may consider about including additional segmentation characteristics like gender or income level.