Economics CSEC Sba

1



Title
A comparative study of the factor affecting the demand for iPhone 6 and Samsung Galaxy s5 in Vreed – en – Hoop, Guyana.
























Purpose of the Project
The aims and objectives of this project are:
To determine the factors that affect the demand for iPhone 6 and Samsung Galaxy s5.
To compare the level of demand for the two brands.
To establish a relationship between the demand for the two products.
To examine how the demand for the cell phones affects the demand for complementary products.















Methodology
Primary sources
The distribution of questionnaires. Fifteen questionnaires were distributed two males and eight females between the age range of eleven to forty five.
Interviews were carried out with a male local entrepreneur who marketed smartphones to find out the rate at which smart phones were demanded.
Secondary Sources
The researcher used:
The internet to obtain data.
An Economics text book to collect additional data.













A COMPARATIVE STUDY OF THE FACTORS AFFECTING THE DEMAND FOR THE IPHONE 6 AND SAMSUNG GALAXY S5 AMONG CONSUMERS IN VREED – EN – HOOP.
Instructions: Choose one answer for each question and place a tick () in the box provided. Answer where necessary.
What is your gender?
Male
Female

What is your age range?
11-15
16-23
24-45
46+

Do you own a smart phone?
Yes
No

Which of the following would you prefer to own?
Samsung s5
iPhone 6
Both
Neither

What brand/ Version of smart phones are most demanded by consumers?
iPhone 4
iphone5
Samsung Galaxy 4gs
Samsung Galaxy s5

What factors would you consider most when purchasing a smart phone?
Price
Features
Trend
Other

What other products/ services would you like to have with your smart phone?
Phone Cases
Phone Card
Screen Protector
Data Connection Plan

The iPhone 6 and Samsung galaxy s5 have many distinctive features compared to other smart phones. If the price of one of these smart phones increases would you still buy it?
Yes
No

Would you prefer an iPhone 6 or a Samsung galaxy s5? Justify your answer.

_________________________________________________________________________________________________________

_________________________________________________________________________________________________________

If the price of the iPhone 6 increases by 30% would you still purchase it? Support your answer with a reason.

_________________________________________________________________________________________________________

_________________________________________________________________________________________________________

How do you think the increasing demand for smart phones has affected the demand for products like cases and phone cards, etc.?

___________________________________________________________________________________________________________

__________________________________________________________________________________________________________
What Factors would you consider when purchasing a smart phone?

_________________________________________________________________________________________________________

_________________________________________________________________________________________________________

Limitations
Some limitations faced by the researcher are:
In distributing questionnaires some of the individuals had lost their questionnaires. The researcher had to reprint questionnaires for those individuals. This was very time consuming and costly for the researcher.
Also some of the respondents did not finish filling out the questionnaires they were given. The researcher had to wait and this delayed the analysis of questionnaires.















Presentation of Data
Question 1: What is your gender?
Majority of the respondents were male.
Gender
Male
Female
No. of Respondents
2
8


Column Chart illustrating gender of respondents.


Question 2: What is your age range?
The majority of the respondents were between the ages of 16-23 where the least was 24-45. No respondent was more than forty six years old.
Age Range
No. of Respondents
11-15
2
16-23
7
24-45
1
46+
0


Pie Chart illustrating the age range of respondents

Question 3: Do you own a smart phone?
The majority of the respondents owned a smartphone.
Do you own a smart phone?
No. of Respondents
Yes
8
No
2


Column chart illustrating the number of persons who own a smart phone.






Question 4: Which of the following would you prefer to own?
All the respondent preferred to own a smart phone. The majority chose Samsung s5.
Preferred Smart phone
No. of Respondents
Samsung s5
6
iPhone 6
3
Both
1
Neither
0


Line Graph illustrating respondents' preferences for smart phones.

Question 5: What brand/ version of smart phones are most demanded by consumer?
The brand most demanded by consumers was the Samsung Galaxy S5. The iPhone 4 and Samsung 4gs was not demanded at all.

Smart phone most demanded by consumers
No. of Respondents
Samsung Galaxy s5
8
Samsung 4gs
0
iPhone 6
2
iPhone 5
0


Bar Graph illustrating consumers demand for smart phones

Question 6: What factor would you consider most when purchasing a smart phone?
Majority of the respondents would consider feature whereas, a few would consider price. No respondent would consider trend or other.
Considered Factors
No. of Respondents
Price
2
Features
8
Trend
0
Other
0


Line Graph illustrating factors affecting consumers' demand for smart phones


Question 7: What other products/ services would you like to have with our smart phone?
The majority of the respondents indicated they would like to have a data connection plan. The least would like to have phone cards with their smart phone.
What services/products would you prefer to have with your smart phone?
No. of Respondents
Phone cases
3
Phone cards
1
Screen protector
2
Data connection plan
4


Donut chart of what consumers would purchase with their smart phones


Question 8: The iPhone 6 and Samsung Galaxy s5 have many distinctive features. If the price of one of these smart phones increased would you consider buying the other one?
The majority of the respondents said they would consider buying another should the price of the iPhone or Samsung Galaxy s5 increased.
Options
No. of Respondents
Yes
8
No
2


Bar chart illustrating whether consumers would buy another smartphone
If the one they chose price increased.



Question 9: Would you prefer an iPhone 6 or a Samsung Galaxy s5? Justify your answer.
Majority of the respondents chose Samsung Galaxy s5 because of its features, price, and trend. The minority chose iPhone 6 because of its features.
Preferred Smart phone
No. of Respondents
Samsung s5 – features, trend & price
7
iPhone 6 - features
3


Pie chart comparing the demand for iPhone 6 and Samsung Galaxy s5.

Question 10: If the price of the Samsung Galaxy s5 increased by 30% would you still purchase it? Support your answer.
Majority of the respondents indicated that if the price increased they would not purchase it, they would rather purchase the iPhone 6. Minority of the respondents indicated they would still buy it because of its features.
If price of the Samsung Galaxy s5 increased by 30% would you still buy it? Why?
No. of Respondents
Yes because of its features
4
No. Rather substitute for the other
6


Doughnut chart illustrating how many persons would still purchase after its price has increased and why.

Question 11: How do you think the increasing demand for smart phones has affected the demand for products like phone cards, phone cases etc.?
All of the respondents thought that if the demand for smart phones increases the demand for products like phone cases and cards would be affected. It would increase.
Does the demand for smart phones affect the demand for other products?
No. of Respondents
Yes
10
No
0



Pie Chart illustrating whether the demand for smart phones has affected the demand for other products.

Question 12: What factors would you consider when purchasing a smart phone?
Majority of the respondents would consider prices, features and trend while very few would consider brand.
Factors consumers consider when purchasing a smart phone.
No. of Respondents
Price, Features & Trend
8
Brand
2



Bar Chart illustrating the factors which influences consumers' demand
Report
Fifteen questionnaires were distributed among the residence of Vreed – en – Hoop. Ten of these fifteen were used for the purpose of analysis and interpretation. Twenty percent of the respondents are male and eighty percent of them are female. Twenty percent of the respondents were from the ages eleven to fifteen, seventy percent from sixteen to twenty three and ten percent were from twenty four to forty five.
Eighty percent of the respondents indicated that they own smart phone, while twenty percent indicated they did not own a smart phone. This shows how remarkably popular smart phones are becoming and how technology has developed.
Sixty percent of the respondents indicated that they would prefer to own a Samsung Galaxy s5, thirty percent preferred to own an iPhone 6 and ten percent indicated they preferred to own both. Samsung Galaxy S5 is an Android smartphone produced by Samsung Electronics. It features a rounded, polycarbonate chassis carrying a "modern glam" look, faux metal trim and a removable rear cover. The iPhone 6 is a smartphones running iOS developed by Apple Inc. The design of the iPhone 6 line is influenced by that of the iPad Air, with a glass front that is curved around the edges of the display, and an aluminum rear that contains two plastic strips for the antenna, both models come in gold, silver, and "space gray" finishes.

Samsung Galaxy s5 iPhone 6
Fig. comparing the two smart phones.
In making this decision twenty percent of them considered the price of the smart phone and eighty percent of them considered its feature. None of the respondents opted for trend. This means that most consumers would purchase the smart phone with the most features and only few would consider price. However, some consumers would still consider price when purchasing a smart phone because their income level may not be high enough to purchase an expensive phone. Smart phones have advanced features such as Wi-Fi, high quality cameras, Skype, twitter, Facebook, Instagram, and like the Samsung Galaxy s5 water proof which appeals to consumers.

Fig. showing some features of a smart phone.

Thirty of the respondents would like to have phone cases with their smart phones, ten percent would like to have phone cards, twenty percent would like to have a screen protector and forty percent would like to have data connection plan. Most of the respondents opted for data connection plan because this offers numerous services. For example with this persons would not need to purchase phone cards because one can go on the internet for free and communicate for free on services like skype and WhatsApp. Screen protectors and phone cases are demanded because persons would want to protect their phones from physical damage. This shows that the demand of smart phones increases the demand for other products.

Fig. illustrating a rightward shift of the other products.

Sixty percent of the respondents indicated that if the price of the Samsung Galaxy s5 increased they would rather buy the iPhone 6. On the other hand forty percent said they would still buy the Samsung Galaxy s5 because of its remarkable features. This therefore shows that some consumers would not mind substituting the Samsung Galaxy s5 for the iPhone 6. This indicates that the two products are substitutes.
Because the Samsung Galaxy s5 has more developed features consumers would not easily change their preferences. However, the price influences many person's many persons' decision causing them to purchase the cheaper product.









Findings
The findings of this project are:
The factors which affect the demand for iPhone 6 and Samsung Galaxy s5 are features and price.
The Samsung s5 is demanded more by consumers when compared to iPhone 6. This is because the Samsung Galaxy s5 has more features.
The products can work as substitutes, that is, one can be used instead of the other.
The demand for iPhone and Samsung Galaxy s5 increases the demand for complementary goods such as data connection plan.













Recommendation
Some recommendations include:
The improvement of the marketing of the two smart phones. Consumers became aware of the smart phones because of adds on the internet. However, this can be improved, if the phones are advertised on the local television channels and local newspapers then consumers would be more aware of the smart phones.
Low income earners find it difficult to purchase smart phones like the iPhone 6 and Samsung Galaxy s5. Low income earners can benefit from hire purchase agreements. This is where they get to use the phone but have to pay monthly installments with interest until they have reached the amount the phone costs.


























Bibliography
Books
Gopie, P. (2010). Economics for csec® examinations. United Kingdom: Macmillan Education.
Internet
(2006). Economics Basics: Supply and Demand. Investopedia. Retrieved 1 November, 2014 from the World Wide Web: http://www.investopedia.com/
university/economics/economics3.asp

Interviews
Manager of Cell King Vreed – en – Hoop, 3 November, 2014




Bar Chart

Considered Factors


No. of Respondents



Doughnut Chart




Pie Chart




Pie Chart




Column Chart

Responses


No. of Respondents



Line Graph

Preferred Smartphone


No. of Respondents



Pie Chart





Column Chart

Gender


No. of Respondents



Doughnut Chart




Bar Chart

Choices


No. of Respondents



Bar Graph

Smart Phones


No. of Respondents



Line Graph

Factors to be considered


No. of Respondents