Competition today is as fierce as ever as markets become saturated, barriers to enter new markets become lower, access to venture capital becomes easier, and the number of entrepreneurs increases. The general process behind competition is the rivalry between firms striving to gain sales and make profits, is the driving force behind markets. As supported by (LIEFMANN 1915) Competition is not merely the presence of several sellers in the market. One might define it as the possibility of the free movement of labor and capital. Competition, latent at least, is present as long as the appearance of a new seller in a branch of industry is not precluded.
According to (Porter 1979) competition in an industry is rooted in its underlying economics, and competitive forces exist that go well beyond the established combatants in a particular industry. Customers, suppliers, potential entrants, and substitute products are all competitors that may be more or less prominent or active depending on the industry. And so, similarly in the mobile industry it is one of the fastest growing industries in the world and the first renovation occurred in the mobile phones with introduction of colorful phones by the year 2002, followed by more technological driven and more features embedded multimedia phones by the year 2007 (Moosavi, 2013).
Smartphone, a device which is no longer a strange thing to majority of people since it has gradually entered people everyday life. Smartphones are mobile phones with computers abilities and internet search, the only difference could be the size and its mobility. In another word, it has become a source of entertainment, a communication tool, business process operating technology and so much more. But smartphone itself is not appealing enough since smartphone is just another artificial item.
On (Janssen 2017) has acknowledged mobile phone as a wireless handheld device which allows users to make calls, send text messages, and use other additional features such as web browsing, play games, cameras, video players and navigational system.
The success of mobile phones is not only related to new technologies but it also depends upon the social characteristics such as price, warranties, brands, positioning and after sales services (Ashan, 2011). Define Mobile industry has faced strong competition with themselves and each other to provide unique offering to their customer by providing more features, offering phones with higher quality and durability at the same time making a cost consideration. The smartphone companies regularly adopt with the technological changes and quickly embed the latest technologies in their device so that they can increase their customer base as customer these days have become high demanding and switching cost are very low.
The market is uncertain as explained by (Penrose, 2005) , no matter what man’s motives are, the outcome is determined not by the individual participations but by an environment beyond their control. And further (Zeithaml, Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence, 2014) has added that the tendency of the consumer to take actual purchase action is consider a Purchase intention. One’s willingness to purchase a product or services based on the preferences, experiences, and external factors.
With the completion on high increase this research has focused mainly on two aspects of the strategies applied by smartphones companies for gaining that competitive advantage in the market: price concern and product features.
Price is the amount of money a consumer sacrifices to obtain the product (Zeithaml, 1988).Price is classified into two parts that is objective price and perceive price. Objective price is the actual price of the product while perceive price is individual believe of the price in relation to the quality of the product (Donald R., 1989)
Product price is the amount of money expected, required, or given in payment for a product (Swani & yoo 2009). There are two types of product price. High-priced products are market brands where image is seen as the key factor. Low-priced brands tend to be purchased for utilitarian value, with the consumer relying on the perceived value for price.
The software of a Smartphone is the operating platform, storage memory, or apps that run the phone. The software for a phone in the market is such as iOS, Android, Windows, RIM Blackberry, Symbian, Bada and maemo. Among the Smartphone user segment, Android users are the largest consist of 43%, IOS users come second with 28%, RIM Blackberry is 18% and the rest is others. Overall, Android is still the most popular Smartphone operating system in the United State (Chiar.mo.Dott.Tommaso Pucci, 2012)
This research is especially important as in the rapid growth in mobile industry the market is being more and more saturated. Companies are focusing on technologies, features and making the price acceptable by consumers when making or launching new smartphones in the market. Thus, the present researcher wants to analyze and assess the market of what are the crusial factors affecting the purchase decision of customers ,main on two factors such as price and features differenciation. The present researcher would gain vital information about the mentality of people in the smartphone market as well as gain crutial information for smartphone companies who are interested in the Nepalese smartphone market.
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