Considering the Indonesian market is one of the top ten global smartphone markets, it is important for the manufacturer and distributor to have a deep understanding of the factors behind every decision that a customer makes before purchasing a mobile phone. If a mobile phone manufacturer markets the same product with the same marketing strategy in every country, it might be successful in some countries and failed in another country. However, there is very limited research literature of customer purchasing behavior on mobile phones conducted in Indonesia. This research has three main objectives, the first is to investigate the factors influencing purchase decisions on mobile phone devices, second is to understand the customer behavior of mobile phones in the Indonesia market, and finally to offer relevant information for manufacturers to develop an effective marketing strategy for the Indonesian market. The sample of this research is middle-class society in Indonesia who live in Jakarta and Surabaya, considering the two cities are the first and second biggest city in Indonesia. This research is distributing questionnaires to collect primary data from correspondents who met the sample criteria of the research. The Hypothesis is tested using One-Way ANOVA and Multiple Linear Regression Analysis. From the data analysis this research finds that all the five hypotheses are accepted, thus, product features including software and hardware, pricing, brand image, and durability has significant influence toward customer’s purchase decision of mobile phone devices.

Abstract ………………………………………………………………………..…...i
Table of Content ……………………………………………………………..…….ii
List of Tables……………………………………………………………………….iv
List of Figures………………………………………………………………………v
Chapter 1 Introduction ……………………………………………………………..1
1.1 Background …………………………………………………………………. ...1
1.1.1 Global Smartphone Market Data ………………………………........3
1.1.2 Market Share of Nokia ……………………………………………...4
1.1.3 Market Share of Blackberry………………………………………... 6
1.1.4 Top Five Smartphone Brand in Indonesia …………………………..7
1.2 Problem Statement ……………………………………………………………9
1.3 Research Objectives…………………………………………………………...11
1.4 Thesis Structure ………………………………………………………………11
Chapter 2 Literature Review………………………………………………………12
2.1 Product Features……………………………………………………………....12
2.2 Pricing……………………………………………………………….………...12
2.3 Brand Image ………………………………………………………………..…13
2.4 Purchase Decision Making Model …………………………………................14
Chapter 3 Methodology ……………………………………………………..……16
3.1 Research Framework …………………………………………………...…….16
3.2 Population & Sample ………………………………………………..………..17
3.2.1 Sampling Technique ………………………………….....…………17
3.3 Data Collection Method …………………………………………...………….17
3.4 Research Model ………………………………………………..……………..18
3.5 Hypothesis Development ……………………………………..……………....19
3.6 Analysis Method ……………………………………………..…………….....20
3.6.1 Validity Test ……………………………………..…………………21
3.6.2 Reliability Test …………………………………..…………………21
3.6.3 One-way ANOVA ………………………………..………………...21
3.6.4 Multiple Linear Regression Analysi…………….……….………….22
Chapter 4 Result ……………………………………………………………………23
4.1 Introduction ……………………………………………………………………23
4.2 Questionnaire Description ………………………...…………………………...23
4.3 Respondent Profile ………………………………………………………… 23
4.4 Reliability Test Result ………………………………….……………………..25
4.5 Validity Test Result…………………………………….……………………...27
4.6 ANOVA Test Result………………………………….………………………..31
4.7 Multiple Linear Regression Result …………………...……………………….33
4.8 Recommendation for Mobile Phone Manufacturer…....………………………34
Chapter 5 Conclusion …………………………..…………………………………...35
5.1 Research Finding ………………………..……………………………………..35
5.2 Implication and Limitation……………...……………………………………...35
5.3 Recommendation for Future Research…………….…………………………...36
References……………………………………………………………………………..37
Appendix ……………………………………………………………………………...39

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