How university students dispose smartphones and why? Understanding disposition decisions in developing markets

• Main Authors: Yusman, Yacob, Hiram, Ting, Nelson, Lajuni, Francis, Chuah, Matthew, Chien
• Format: Proceeding
• Language: English
• Published: 2016
• Subjects: HB Economic Theory
• Online Access: http://ir.unimas.my/id/eprint/14150/1/7th%20International%20Research.pdf; http://ir.unimas.my/id/eprint/14150/

Although consumer behaviour is largely described as a process of acquisition, consumption and disposition, little has been done on disposition decisions, especially in the context of service market in emerging economies. The present study serves as groundwork to determine the factors that influence consumer disposition decisions of smartphones with a focus on university students in Malaysia. Price, brand, compatibility, usefulness, social influence and product attachment are looked into in order to assess their respective effect on disposition decisions. A quantitative approach was adopted whereby self-administered questionnaire was designed and pre-tested. Questionnaire copies were distributed at universities in Malaysia, and subsequently collected. Data obtained were then analysed using PLS-SEM. The results show that compatibility, usefulness and product attachment have positive effect on decision to keep. While decision to getting rid of smartphones temporarily is affected by social influence and low product attachment, decision to getting rid of the devices permanently is affected by its value. Interestingly, price and brand are found to have no significant relationship with disposition decisions, indicating communication service, rather than the product itself, is more a driving factor to disposition decisions. Hence, understanding consumer behaviour in its entirety could prove to be pivotal to service quality and retaining consumers in developing economies.