Influence of Brand Image, Product Quality, and Lifestyle on Smartphone Purchase Decision in Indonesia

Keywordsbrand image lifestyle Product Quality purchase decision smartphone

JEL Classification M31

Full Article

1. Introduction

The pandemic period and the industrial revolution 4.0 have encouraged all community activities and interactions, including business activities to switch to digital. One of the impacts is that the use of mobile phones, especially smartphones, is increasing in number. In the past few years, many smartphone companies have increasingly offered many products and companies also offers product features that are different from previous products. Smartphone companies are currently required to be able to meet the needs of people with high mobility, namely by producing various series or types of smartphones that are useful and can provide benefits for consumers. Competition between smartphone products is always interesting to observe. Smartphone companies that cannot develop their products will not be able to survive in the face of increasingly fierce competition. Blackberry and Nokia are examples of technology-based companies that went bankrupt because they could not make improvements and product innovations.

Apple is a phenomenal brand with spectacular sales growth. In 2008, iPhone 3G and iPhone 3G S were out. In three days since their launch, the sales reached 1 million. In 2014, iPhone 6/Plus was launched and it was considered the best iPhone model. It was the top seller and it had 222,400,000 sales and it was almost three times the iPhone 8 which is 86,300,000 sales. Until 2020, Apple ranked 12th on the fortune 500 lists. Apple maintains the frequency of launching a new iPhone product every year, and each new iPhone does not fail to satisfy the expectations of Apple customers. Apple holds its value proposition in developing new iPhones very well, which are its ease of use and unique design. Another strategy is Apple Care, a program that if there is any damage, Apple will provide repair according to the situation, and the price of the repair will be capped (He, 2021). Hunger Marketing is the common strategy that Apple used. "Hunger marketing", applied to the commercial promotion of goods or services, refers to the fact that the supplier of goods intends to lower the output in order to control the relationship between supply and demand (Lu, 2022).

In buying technology products, well-known brands and good quality products are the logical reasons for consumers. buying a smartphone with a well-known brand and has a premium quality will be a guarantee for most consumers, considering that technology-based products will continue to innovate, and product damage will result in huge losses for consumers. But not only brand image and product quality are often used as reasons why consumers decide to use a product. Lifestyle is an important aspect to consider.

Indonesian people have a lifestyle that tends to be high which is due to the increasingly mushrooming consumptive behavior. Lifestyle is a pattern of one’s life behavior, patterns in shopping and allocating time. Lifestyle is broadly defined as how a person fills and spends their time (activities), what concerns are considered important in their environment (interests), and what they think about their own life and surroundings (opinion). A person’s lifestyle can be expressed by an activity, interest, and opinion that is closely related to his self-image. The factors that influence the decision to purchase an iPhone smartphone are very much considered by the authors in this study to produce results that can help sellers and marketers in their marketing strategy of their products.

Based on the description of the problem identification that has been stated above, the researcher is interested in examining whether brand image affects iPhone purchasing decisions? Does product quality affect iPhone purchase decisions? And does lifestyle affect the iPhone purchase decision?

2. Literature Review

Before discussing the research methodology further, this section provides a literature review of the variables considered in this research.

2.1. Lifestyle

Lifestyle is basically part of a secondary human need that can change depending on the times or a person’s desire to change his lifestyle. Lifestyle can be seen from the way people dress, habits, and others. Lifestyle can also be judged relative depending on the assessment of others and as an example and can also be used as a taboo. In research, lifestyle segmentation is critical to understanding consumers’ complex socio-psychological profiles and many research result’s revealed significant moderating effects of the lifestyle factors on the relationship between consumers’ attitudes and effectiveness of internet advertising. Nguyen, Do, Hoang, and Nguyen (2022) referred to lifestyle as the orientation of people towards spending their time and money, and divide lifestyle into three dimensions, namely independence and self-expression, family-orientation and enjoying home-based activities or homebody. Qing, Lobo, and Chongguang (2012) found that there were statistically significant relationships between Risk takers and Traditionalists, as a lifestyle, in relation to the purchase intention of imported (US) fruit. In their research about fruit marketing, Ahmadi Kaliji, Imami, Canavari, Gjonbalaj, and Gjokaj (2022) found that consumption behavior is motivated by health concerns, fruit (nutrition) content and consumption habits. They also found four distinct consumer clusters based on the fruit-related lifestyle instrument. Lifestyle also affects consumer selection of wine purchases in online stores. Yabin and Li (2020) stated that five distinct segments were identified within the wine market in China mainland and designated as follows: wine official consumption type enthusiastic fancier; enjoyment consumption; fashionable consumption; and new, young wine drinkers. Research result of Palomba (2021) found that lifestyle information does predict SVOD (Streaming video on demand) genre consumption and SVOD platform consumption, which can mean that while digital consumer touchpoints are necessary to collect and analyze, marketers should not lose sight of easily-obtainable consumer data, much of which dictates consumption choices. Zahra and Anoraga (2021) stated that a person’s lifestyle will influence a person’s needs, desires and buying behavior; their research to 230 students in Jawa Tengah, Indonesia, about their consumptive behavior found that lifestyle has positive influence on consumptive behavior. This can be seen from the way students dress excessively and always change their style of dress according to the current trend. This result is also in line with the research by (Amri and Prihandono, 2019; Kusairi, Sanusi, Muhamad, Shukri, and Zamri, 2020) about the influence of lifestyle on consumers’ purchase behavior.

2.2. Product Quality

Product quality is one of the key parameters for building a competitive advantage in the marketplace but there is a problem when concerning the number and nature of the constituting dimensions of product quality. Das Guru and Paulssen (2020) in their research propose many dimensions in product quality, such as durability, ease of use, feature, reliability and performance, aesthetics, and serviceability. In premium products, like sophisticated mobile phones, product quality is a combination of the overall characteristics possessed by a product produced from the marketing department, where engineering results in production and maintenance are carried out to produce products that are old (not useful) so that they become goods that can be used in accordance with consumer needs (Nicca and Herman, 2020). Other scholars stated similar conclusions, that product quality is the totality of features and characteristics of a product or service that depend on its ability to satisfy stated or implied needs (Safitri, Yacob, and Yuniarti, 2022). Product or perceived product quality also is a reflection of consumer’s feeling of judgment about a product/brand’s overall excellence or superiority and it is viewed as the extent and direction of difference between consumers’ perceptions and expectations. A consumer tries to measure a product’s attributes in an objective and subjective manner and compares it with available competitive options. Also, product quality is an influential factor in customer satisfaction and delight (Dubey, Bajpai, Guha, and Kulshreshtha, 2020). Product quality is also defined as a group of features and characteristics of a salable good that meets basic requirements, and it can be controlled by a manufacturer to meet consumers’ expectations, and as one of the most powerful antecedents of consumer satisfaction (Tzeng, Ertz, Jo, and Sarigöllü, 2020). In premium products, consumers attend to observe product cues such as price and brand name when making inferences about quality. Consumers often infer that a high price means greater quality (Miller and Brannon, 2022). Signaling theory provides a framework for understanding how customers assess product quality using complementary information from sellers and other customers in their purchase decisions; therefore, selling high-quality products is important, but signaling a product’s high quality to customers is equally important (Yabin and Li, 2020). Product quality can be divided into extrinsic and intrinsic cues, which extrinsic attributes provide value, ideas, and desirability to consumers, and intrinsic attributes provide feasibility to consumers, which includes physical components like material and fabrics (Yu, Zhou, and Huang, 2022).

2.3. Brand Image

Corporate brand image refers to “the mental picture of the company held by its audiences or what comes to mind when one sees or hears the corporate name or sees its logo” (Gray and Balmer, 1998). Brand image is a significant component of a powerful brand that maintains the brand’s uniqueness, depicts consumers’ thoughts and feelings about the brand, that is, consumers’ overall mental image of the brand (Shi and Jiang, 2022). Image has been viewed from various angles including attitude, personality, association and perception. Scholars treat image as a unidimensional construct by measuring it using an overall corporate image scale, influenced by various factors that could be categorized under functional attribute (Ab Hamid, Maulan, and Wan Jusoh, 2022).

Apple, as a brand, also serves as a country image. Products made in the United States are generally considered to have good quality. Many scholars suggested that country image refers to the cognitive structures of perceivers in terms of indication, faith, expectation and a kind of stereotype and prejudice regarding products originating from countries foreign to the consumer, and it includes aspects of history, politics, culture, diplomacy, economics, society, art and environment (Fan, 2019). In their research, Parris and Guzmán (2022) stated that brand image is the network of positive and negative mental associations that the stakeholder(s) form of a brand, and has a positive and significant influence on behavioral intention and purchase intention. And in the increasingly fierce competition in cell phone market, brand image is one of the most important things for a company to be able to survive in competition, with positive and significant effect on purchase intention and purchase decision (Solihin, 2021).

2.4. Purchase Decision

Purchase decision making style is a “macro-motivational construct” which affects the purchase decision process; individuals differ in their decision-making style, namely maximizers and satisficers, follow different decision-making paths. Maximizers have a tendency to find the best possible option and are motivated to perform intensive information search and evaluation before making a choice. In other side, satisficers aim to choose a good enough option; they allocate less effort to the decision process and consider fewer alternatives (Karimi, Biemans, Lans, Chizari, and Mulder, 2016).

There are three different categories or approaches towards typifying consumer styles, namely the consumer typology approach, the psychographic or lifestyle approach and the consumer characteristic approach (Bae, Lu-Anderson, Fujimoto, and Richelieu, 2015). The consumer typology approach segregates different shoppers in terms of behaviour and attitudes towards shopping, whereas the psychographic or lifestyle approach identifies specific lifestyles, interests and activities and then uses these to profile consumers (Ladhari, Gonthier, and Lajante, 2019). On the other hand, consumer characteristics approach as the mental and emotional orientation towards making consumer choices.

Thamik and Wu (2020) stated that sharing information is a critical interchange of information which assists the individual in making a collaborative decision. Social capital assists individuals in making a decision which includes product recommendation; this helps customers to access the knowledge and experiences of the others to understand the purpose and awareness of the product and thus helps them in making an accurate purchase decision. Confidence in product selection has a significant impact on purchase intention. Finding a preferred product virtually can increase self-confidence; this is following the theory of feelings as information which shows that trust in the development of choice has a significant impact on buying decisions. Kowalczuk, Siepmann, and Adler (2021). Consumers with a high cognitive, reflective level will determine the information provided more detail, while consumers with low cognitive reflectiveness will not pay attention to them. In online buying, cognitive and affective attitudes can be influenced by functional attributes (product information, money savings, convenience, and perceived ease of use) and hedonic attributes of online shopping sites and ultimately decide to make purchases online (Sari, 2021). But in classic decision making process, people’s behavior is consistent with optimal search if we allow participants to display risk aversion, psychological effort cost, and decision error. Thus, decision makers appear to be able to search in a resource rational manner that maximizes stochastic risk averse utility. Decision light on the psychological factors that guide sequential decision making, and show how threshold models can be used to describe both computational and algorithmic aspects of search behavior (Bhatia et al., 2021). But if there is a price tricky strategy, the negative impact of price deception on purchase decision making and its potential neural substrates and price deception decreases consumer purchase intention (Fu et al., 2019).

Based on the previously mentioned theoretical background, the following research model is proposed:

Figure 1. Research Model

Sources: Primary Data, 2022

3. Research Methodology

The method used in this study is a quantitative research method using primary data conducted through surveys, achieved by distributing questionnaires. This research was carried out during October 2021 to July 2022. The research location was on the island of Java. The sampling method in this research used purposive sampling, which is a non-random or non-probability sampling method with the aim of producing a sample that is logically considered representative of the population. Purposive sampling is done by taking samples from the population based on criteria determined by the researcher, in this case male or female respondents, aged 18 years and over and using all versions of iPhone products for the last two years. After the questionnaire is collected, a validity and reliability test will be carried out on a total of 30 answers. After passing the test phase, data were collected from 200 respondents and data processing was carried out. Data analysis tool focuses on multiple linear regression analysis, which will be used to find out how the influence of brand image, product quality and lifestyle variables on iPhone buying decisions.

Indicators to measure brand image variables are: (1) iPhone brand is well known to many people, (2) The iPhone is a popular smartphone, (3) The iPhone brand has a positive brand image in the consumers perception, (4) The iPhone brand increases the confidence of its users, (5) The iPhone brand is easy to remember, and (6) iPhone has a distinctive and unique logo. Indicators to measure product quality variables are: (1) The iPhone has advanced and sophisticated technology, (2) The iPhone monitor has a clear color resolution, (3) The iPhone’s product performance is very good, (4) iPhones have an attractive design, iPhone is a smartphone that durable, and (5) iPhone products have innovative product appearances in each version released product. Indicators to measure lifestyle variables are (1) The community influences you to use iPhone, (2) The iPhone is today’s smartphone trend, (3) Using an iPhone can boost your confidence, (4) iPhone is a smartphone product that will always develop in the future, (5) You are in a community of people who use iPhone, and (6) An iPhone can show a person’s economic level. Indicators to measure buying decision variables are: (1) If right now you are going to buy a smartphone, perhaps you are considering buying an iPhone, (2) In the future if you will buy a smartphone, maybe you buy iPhone, (3) When you are going to buy a smartphone, definitely buy an iPhone, (4) In the future, when you will buy a smartphone, it will definitely be an iPhone, (5) You find out information about iPhone smartphones from family, friends, and neighbors who have used them, and (6) You recommend the iPhone smartphone to your family and relatives.

4. Analysis and Results

Below are the results of profiling two hundred respondents who completed questionnaire using:

Table 1. Respondents’ profile

From the table above, it can be seen that the most respondents were women and young individuals (aged between 18 up to 25 years old). Most of the respondents had bachelor’s education, they work as a private sector employees, and they mainly buy iPhones because of their premium product quality. In the validity test, all the calculated r numbers for each question are higher than the r table, namely 0.239. This indicates that all questions in the questionnaire is valid and can be processed further.

The value of the adjusted coefficient of determination (adjusted R²) is 0.531, which means 53.1% of iPhone purchasing decisions are influenced by the variables of brand image, product quality, and lifestyle. While the rest, as much as 46.9% is influenced by variables other than those used in this study, such as consumer tastes, product prices, promotions, and others.

In testing the simultaneous effect of the independent variable on the dependent variable using the F test, p-value is below 0.05; so it can be concluded that Brand Image, Product Quality, and Lifestyle have a significant simultaneous influence on iPhone Purchase Decision. Regression coefficient test results are presented in Table 2.

Table 2. Results

Dependent Variable: Purchase Decision

Sources: Primary data, 2022

Table 2 above shows that while testing the partial effect of the independent variable on the dependent variable by using the t test, Brand Image variables have a p-value much more than 0.05 (0.868), but the others, Product Quality and Lifestyle, have a p-value 0.000 or below 0.05. That indicate Product Quality and Lifestyle have positive and significant effect on Purchase Decision, but Brand Image does not have an impact in the proposed model. Thus, this aspect should be examined in additional studies.

5. Discussion and Conclusions

5.1. Discussion of Results

Fan (2019) research results regarding household electronic appliance in South Korea stated that brand image had a positive impact on brand attitude, and then brand attitude had a significant and positive effect on purchase intention. Similarly, Li, Teng, Liao, and Lin (2020) examined Taiwanese smartphone brands and found that a patriotic brand image had a positive and significant effect on purchase intention. With regard to this study’s finding that brand image has no effect in this research is related to the fact that in Indonesia, especially in the upper classes, the iPhone brand has been very strongly formed in the minds of consumers as a trusted brand, so it does not have much impact on consumers’ buying decisions. Thus, upper class people who are not sensitive to the price of quality goods, in their daily lifestyle they prioritize prestige and status in society, which will lead them to buy products with good quality. Most of the upper class in Indonesia prioritize product quality as a reference for purchasing goods. Contrary to this research, Rehman and Zeb (2022) found an interesting result, that brand image had positive and significant effects on the buying behavior of Muslim consumers during the Holy Month of Ramadan, but brand image had no moderating effect on the relationship between advertising and purchase behavior. Shi and Jiang (2022) observed the purchase of goods from the point of view of the existing culture in China, focusing on product-function and brand image congruence. In utilitarian products, the product-function congruence is more dominant in influencing purchasing decisions, and finally product quality becomes the main factor. In another research (Haikal, 2018) on outdoor equipment products in Indonesia, the findings showed that brand image did not have a significant effect on purchase decisions.

Beside the function elements, products also have emotional elements; reputable and prestige brand image can affect consumer emotionally, and finally consumer can choose brands based on subjective justification. Product quality and well-known brand are usually always the main reason consumers make purchases. Yu et al. (2022) research result about foreign or domestic brands in China showed that consumers prefer foreign brands, and product quality can moderate the role of purchase decision; in other words, consumers’ preference for foreign brands when buying for others will be stronger when the product quality is low. Similar with that finding, Wang, Guo, Wu, and Liu (2020) research result stated that perceived product quality have positive effect on purchase intention; Chong, Yeow, Low, Mah, and Tung (2021) research result in Malaysia show that product quality significantly influenced the purchase intention of urban non-Muslim on halal food products, and product quality are the most important factors compared with product price, product availability, and product safety.

Regarding the lifestyle variable, in the social life of the Indonesian people, always following the current lifestyle, the younger generation is afraid of experiencing FOMO (fear of missing out). So, in purchasing consumer goods they tend to follow on the latest product releases and look for well-known brands; prestige has become an important part of consumers. Palomba's (2021) research result about consumer behavior on streaming video on demand showed that consumers’ lifestyle is a positive predictor of streaming video on demand genre frequency consumption and platform frequency consumption. For example, consumers who were active in group activities consumed sports SVOD genre and consumers who made leisurely purchases were inclined to consume mystery, crime, and adventure genres. Another research (Nguyen et al., 2022) about lifestyle orientations on consumers’ preference for housing features showed that there is significant and positive effects of independence and homebody lifestyle orientations on consumers’ preference for interior spaces. Previous research (Zahra and Anoraga, 2021) also found that were positive influences of lifestyle on students’ consumption behavior in Middle Java Province, Indonesia.

Based on the research, various following conclusions can be drawn. The main reason considered for buying an iPhone was product quality. From multiple regression results, the study showed that product quality and lifestyle have positive and significant effects on purchase decision, but brand image did not influence purchase decision.

5.2. Theoretical Contributions, Managerial Implications, Limitations of Study, and Future Directions of Research

The research results stating that brand image does not significantly influence the decision to buy a product is something new. It turns out that a brand that is well-known and superior in the high-tech product category showcases no doubt about its quality. This can be elaborated in various theories in future research.

Because brand image does not have a significant effect, the strengthening of the Apple or iPhone brand in Indonesia does not need to be strengthened. In Indonesia, these brands are already very strong and dominant in the minds of consumers as quality brands. However, the results showed that the promotion of iPhone should be emphasized as a product that the millennial generation needs to express their lifestyle.

Although providing useful and interesting results, this study had some limitations related to the theoretical model approach. The study has not included data from outside the Yogyakarta area, so it does not represent Indonesians’ opinions of the iPhone, as a whole. This research also did not included variables other than product quality, lifestyle, and brand image as independent variables. Several variables could be interesting to study in the future, such as price perceptions, promotions through digital marketing, and others.

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Author Contributions: Dinda Viorentina: Conceptualization, Methodology, Software. Singgih Santoso: Data curation, Writing- Original draft preparation.

Funding: This research received no external funding.

Conflicts of Interest: The authors state that they have no conflicts of interest.

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