Why Consumers Purchase New Mobile Phones : Modeling the Process of Decision-Making

With the proliferation of mobile data services (MDS), increasing attention has been paid to factors affecting the adoption of mobile phones with access to MDS. In this paper, a theoretical framework based on means-end chain theory is proposed to examine users’ decision-making processes regarding new mobile phone purchase. Both direct and indirect factors (i.e., expected MDS attributes, expected mobile phone attributes, perceived benefits, and financial constraints) are introduced in developing a research model in this study. The proposed model is empirically tested with structural equation modeling (SEM) using survey data from 304 MDS users in Singapore. The findings of this study show that users’ expectations of new mobile phones are significantly associated with their demands for MDS. Moreover, their expectations of MDS and mobile phone attributes result in different desires for specific perceived benefits. Finally, income is shown as a significant economic constraint as users are concerned with the cost-benefit paradigm when they consider new mobile phone purchase