Qnt 561 - Cellular Phones Business Research Report

Cellular phones business research report

Team A

QNT/561

1/14/2016

XXXXXX

Cellular phones

Today’s cellphones are an extension of today’s connected culture offering internet access, HD cameras, retina displays, and biometrics that allow the user to stay connected to the outside world. When a person loses a cellphone it is almost like they have lost a piece of themselves. Nearly two thirds of Americans are now smartphone users (Smith, 2015).  What drives this critical decision? This research paper will look at several factors that go into the purchase of a cell phone, some of which are independent variables, and one that is dependent on the others.  These variables assist in the development of several hypotheses that will attempt to answer the main research question: what is the key factor in the decision to purchase a smart phone?

Variables

        There are many variables that a consumer considers when preparing to purchase a cell phone, whether they consider them consciously or not.  For the purpose of this study, the key independent variables that will be examined are the cell phone operating system, the screen size, the purchase price, and the manufacturer.  There are several operating systems that are currently available in different cell phones, but the majority of phones utilize one of four main systems:

1. iOS, which is an operating system designed by Apple, and used exclusively in the iPhone, currently holding about 44% of the cellphone market share in operating systems (Comscore, 2015).
2. Android, commonly referred to as Droid, is an operating system designed by Google, which utilizes several different versions across many different phones, by many different manufacturers.  Android OS currently dominates the competition with a 51% market share (Comscore).
3. Windows, owned by Microsoft, also has an operating system that is utilized in many phones, accounting for a 3% market share (Comscore)
4. There final operating system is the Blackberry operating system, which is widely used by government entities due to additional security elements.  Blackberry currently holds 1% of the market share (Comscore).

The cell phone OS has a great impact on the way that the phone operates, from how it functions, to simplifying certain tasks, and each OS has become known for offering certain attributes that the others do not.

        The second variable is the size of the phones screen, which can range from 4” on older iPhone models, to 5.7” on the Samsung Galaxy Note 4.  

        The third variable is the price of the phone, which is simply the price that the consumer pays to purchase the phone, which may entail paying the full price of the phone up front, or may be done over time with a contract for service or installment plans.

        The final variable is the actual manufacturer of the cell phone.  There are currently five manufacturers that control the market share in the U.S., and use one of the previously mentioned OS’s.