Abstract

Purpose: The purpose of the article is to determine whether there are any differences between high and low-income group students in their selection of a cellular phone brand or network operator. Design/Methodology/Approach: Four hypotheses are set to determine if there are any significant differences between the two income groups in current decision-making. It is established that there exist no significant difference between high and low-income students in their selection of cellular phones and network operators. The levels of agreement or disagreement on various statements do, however, give an indication of the importance that students place on aspects that they view as important when acquiring a cellular phone or network operator.Findings: In the article, it is established that no significant differences exist between the two income groups. The levels of agreement or disagreement indicate the importance that subscription method, social value, service quality and branding has on student decision-making. Implications: The article provides a better understanding of the influence that income plays in student's decision-making in acquiring cellular products and services. Possible future research in student cellular usage can be guided through the information obtained in this article. Originality/Value: The article provides information to cellular network operators, service providers and cellular phone manufactures regarding the influence of income on students' acquisition of cellular products and services. Information from the article can assist in the establishment of marketing plans for the student market by these role players.

Highlights

  • In South Africa it is not uncommon to see people from different walks of life with a cellular phone (Cant & Machado, 2005:3). Morhange and Fontela (2003:25) indicate that cellular phones changed all aspects of consumers’ lifestyles

  • It is established that there is no significant difference between the two income groups regarding: preferences attached to pre-paid and contract; status value attached to cellular phones; perception of the relationship between network operator and service quality; and perception of the relationship between brand name and the quality of cellular phones

  • Since the findings indicate that there are no differences between the two income groups, strategies used in the student market will be the same for both these groups

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Summary

Introduction

In South Africa it is not uncommon to see people from different walks of life with a cellular phone (Cant & Machado, 2005:3). Morhange and Fontela (2003:25) indicate that cellular phones changed all aspects of consumers’ lifestyles. In South Africa it is not uncommon to see people from different walks of life with a cellular phone (Cant & Machado, 2005:3). Cellular phones are not seen as luxury for the selected few, but have become a necessity for every person and obtained for different reasons that include: to do business; safety; or just to stay in contact with friends and family (Mutula, 2002:79-92). An influence on the acquisition of cellular products and services is a consumer’s disposable income. Personal disposable income is the amount of money that consumers have available after all fixed obligations have been met. This can be used to purchase consumer products and services

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