Why is the smartphone market in Indonesia declining?
Article Sidebar
Main Article Content
Abstract
Technology, particularly communication and information technology, is essential for everyone. As this technology advances, competition among cell phone manufacturers becomes more intense. This is the primary reason that mobile manufacturing companies compete to innovate in order to create mobile products that will catch the attention of market consumers. Cell phones appear to be a basic human requirement. But there is a new irony for Indonesia. Despite a 1.05% increase in population, the smartphone market in Indonesia fell by 11.9% in the first quarter of 2023 compared to the same quarter in 2022. The goal of this study is to determine which factors influence purchase intentions and which factors are the most likely cause of a decrease in purchasing intentions. The study's findings show that the four independent variables, product quality, brand image, brand prestige, and brand trust, all have a positive and significant effect on purchase intention. If there is a decrease in purchase intention, it is reasonable to suspect that the cause is the smallest value, which is far below the other three independent variables.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Dergibson Siagian, Management Department, Kwik Kian Gie School of Business and Information Technology, Jakarta, Indonesia
Siagian, Dergibson, born in Balige in 1965. Hold a Bachelor of Statistics from the Bogor Agricultural Institute in 1990 and a Master of Management from STIE IBII in 1996. Now, he is active as a full-time lecturer at the Kwik Kian Gie Institute of Business and Informatics, Jakarta, for courses related to Business Statistics and Mathematics. He also functions as head of the Executive Undergraduate Program, which is specifically for students who study while working. Complementing the activity as a statistical data processing consultant, he publishes books and various scientific articles in national and international journals.
References
Annur, C.M. (2023). Pasar smartphone Indonesia merosot 11,9% kuartal I 2023, siapa pemimpin pasar?. Databoks. https://databoks.katadata.co.id. Retrieved July 8, 2023
Armstrong, G., Kotler, P., Trifs, V., & Buchwit, L. (2017). Marketing an Introduction. 6th Edition. Canada: Pearson Education, Inc.
Aryadhe, P. & Rastini, N. M. (2016). Kualitas pelayanan, kualitas produk dan citra merek terhadap niat beli ulang di PT. Agung Toyota Denpasar. E-Jurnal Manajemen Unud, 5(9), 5695-5721.
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T
Baek, T. H., Kim, J. H. & Yu, J. H. (2010). The differential roles of brand credibility and brand prestige in consumer brand choice. Journal Psychology & Marketing, 27, 662-678.
Ballester, D., & Alemán, M. (2005). Does brand trust matter to brand equity? Journal of Product & Brand Management, 14(3), 187-196.
Chaudhuri, A. & Holbrook, M. B. (2001). The chain of effects from brand trust and brand affect to brand performance: The role of brand loyalty. Journal of Marketing, 65(2), 81–93.
Church, K & Rodrigo, O. de (2013). What's up with whatsapp?: comparing mobile instant messaging behaviors with traditional SMS. Proceedings of the 15th international Conference on Human-Computer Interaction with Mobile Devices and Services, August 2013, 352–361, https://doi.org/10.1145/2493190.2493225
Clow, K.E. & Baack, D. (2022). Integrated Advertising, Promotion, and Marketing Communications. 9th Edition. England: Pearson Education Limited.
Dubois, B. & Czellar, S. (2002). Prestige brand or luxury brand? An exploratory inquiry on consumer perception. Proceedings of the Thirty First Annual Conference Of The European Marketing Academy, 123-140.
Erdogmus, I. & Turan, I. B. (2012). The role of personality congruence, perceived quality and prestige on ready-to-wear brand loyalty. Journal of Fashion Marketing and Management, February, 16, 399-417.
Peña-García, N., Gil-Saura, I., Rodríguez-Orejuela, A., & Siqueira-Junior, J. R. (2020). Purchase intention and purchase behavior online: A cross-cultural approach. Heliyon, 6(6), e04284. https://doi.org/10.1016/j.heliyon.2020.e04284
Garvin, D. A. (1984). What does “product quality” really means. Sloan Management Review, 26(1), 1984, 25-43.
Hair, J.F., Hult, G.T.M., Ringle, C.M., Sarstedt, M., Danks, N.P., Ray, S. (2021). Evaluation of reflective measurement models. In: Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R. Classroom Companion: Business. Springer, Cham. https://doi.org/10.1007/978-3-030-80519-7_4
Hanzee, K., Heidarzadeh & Taghipourian, M. J. (2012). The effects of brand credibility and prestige on consumers purchase intention in low and high product involvement. Journal of Basic and Applied Scientific Research, 2(2), 1281- 1291.
Hoyer, W.D., MacInnis, D. J. & Pieters, R. (2018). Consumer Behavior. 7th Edition. Boston: Cengage Learning, Channel Center Street.
Kamilaris, A., & Pitsillides, A. (2016). Mobile phone computing and the internet of things: A survey. IEEE Internet of Things Journal, 3(6), 885–898. https://doi.org/10.1109/JIOT.2016.2600569
Keegan, W. J., & Green, M. C. (2018). Global Marketing. 8th. Edinburgh: Pearson Education Limited.
Keller, K.L. & Swaminathan, V. (2020). Strategic Brand Management Building, Measuring, and Managing Brand Equity. 5th Edition. Pearson Education, Inc.
Kemp, E., Jillapalli, R., & Becerra, E. (2014). Healthcare branding: Developing emotionally based consumer brand relationships. Journal of Services Marketing, 28(2), 126–137. https://doi.org/10.1108/JSM-08-2012-0157
Kotler, P., & Armstrong, G. (2021). Principle of Marketing. 18th Edition. Pearson Education Limited.
Kotler, P. & Keller, K.L. (2016). Marketing Management. 15th Edition. UK: Pearson Education Limited, Edinburgh Gate.
Lacohée, H., Wakeford, N. & Pearson, I. (2003). A social history of the mobile telephone with a view of its future. BT Technology Journal, 21, 203–211, https://doi.org/10.1023/A:1025187821567
Palma, M.A. & Andjarwati, A. L. (2016). Pengaruh kualitas produk, kemudahan, dan harga terhadap niat beli ulang dengan kepuasan sebagai variabel intervening. Jurnal Riset Ekonomi dan Manajemen, 16(1), 84-104. http://dx.doi.org/10.17970/jrem.16.60106.ID
Pence, H. E. (2010). Smartphones, smart objects, and augmented reality. The Reference Librarian, 52:1-2, 136-145. https://doi.org/10.1080/02763877.2011.528281
Rashvand, H.F., & Hsiao, K. F. (2015). Smartphone intelligent applications: a brief review. Multimedia Systems, 103–119. https://doi.org/10.1007/s00530-013-0335-z
Severi, E., & Ling, K. C. (2013). The mediating effects of brand association, brand loyalty, brand image and perceived quality on brand equity. Asian Social Science, 9(3), p125. https://doi.org/10.5539/ass.v9n3p125
Simamora, B. (2022). Decision, intention, expectation, willingness, and volition: Critics and comments. Jurnal Ekonomi Perusahaan, 29(1), 1–15. https://doi.org/10.46806/jep.v29i1.834
Sinambela, E.A., Azizah, R. N., Lestari, U.P., Ernawati & Issalillah, F. (2022). Pengaruh atribut produk, kepercayaan merek, negara asal terhadap niat beli pada konsumen minuman probiotik Yakult. Journal of Trends Economics and Accounting Research, 2(4). https://doi.org/10.47065/jtear.v2i4.269
Upamannyu, N. K., Bhakar, S.S., & Chauhan, A.S. (2015). The effect of brand prestige on brand preference and word of mouth: the moderator role of customer involvement. Asian Journal of Research in Marketing, 4(2), 123-140.
Younus, S., Rasheed, F. and Zia, A. (2015). Identifying the factors affecting customer purchase intention. Global Journal of Management and Business Research: A Administration and Management, 15, 9-14.