To what extent does Samsung mobile phone reach to Customer Satisfaction 1.

0 Introduction

In 1973, the mobile phone was invented by Dr. Martin Cooper, a Motorola employee where it brought a drastically change to the communication industry. Mobile phones are also known as cell phones or wireless phones which can be bringing from place to place and prepared long-distance communication in a matter of seconds. Therefore, it makes a best choice for everyone to be in contact with others and help to a better communication with the key people in our life. There are many manufacturers of mobile phones such as Nokia, LG Electronics, Motorola, Sony Ericsson, Apple Inc., HTC Corporation, Blackberry and etc. Samsung Corporation becomes worlds second largest manufactures of mobile phones, serving customers in number of countries and selling more than 300 million phones in 2011. Samsung is divided into WIRELESS

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Research Questions By being a corporation with strong brand image, Samsung mobile phones need to sustain in its market and profitability since there are many successful competitors in the industry. As rivalry among competing firms is increasing, Samsung mobile phones have to keep aware of the competition not only through inspiring modern technology, but also by retaining brand image and price fairness in order to retain the customer satisfaction. As other mobile manufacturers too are in the race, it would be a challenge for Samsung to lead since the company believes in customer satisfaction and that is the success of their being the leaders in mobile phones (Sue Shim, 2012). The purpose of this research is to study what are the key factors influencing customer satisfaction of Samsung mobile phones. Thus, this research would focus on to answer the following questions: i) How does Samsungs brand image influence the customer satisfaction level?

ii)

To what extent do Samsungs brand images give impact on increasing customer satisfaction level?

iii)

What is the relation between Samsungs pricing the customer satisfaction level

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Research Objectives

More specifically, the above research questions can be explained to meet the following objectives: a. To validate whether Samsungs brand image is attracting customer satisfaction level. b. To validate whether Samsungs advanced modern technology is influencing customer satisfaction level. c. To validate whether Samsungs pricing are influencing customer satisfaction level.

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Hypothesis In relation to answer the research questions and to meet the research objectives, the following hypotheses have been drawn up for this study to check up the relationship between the independent and dependent variables: a) Improving brand recognition for the quality of a brand would give enhancement to the brand image. Thus, increase in Samsungs brand image results in higher customer satisfaction. b) When Samsung models are made with more modern technology advancement, the number of customer satisfied increases, hence will raise customer satisfaction level. c) Samsungs pricing has an optimistic relationship with customer satisfaction level.

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Theoretical Framework Figure 1: The relationship between Modern Technology, Brand Image and Price Fairness and Customer Satisfaction towards Samsung. Samsungs

Modern Technology (IV) ))

Brand Image

Customer Satisfaction (DV)

Price Fairness

Thus, the researchs dependent variable is customer satisfaction towards Samsung while its independent variables are modern technology, brand image and price fairness.

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LITERATURE REVIEW

A literature review is defined as an outline of ideas that have been said, regarding the key authors, what are the existing theories and hypotheses, what questions are being proposed, and what are the methodologies and approaches suitable and practical in particular issues. According to Cooper (1988) cited in (Emerald, n.d.), a literature review seeks to describe, summarize, evaluate, clarify and/or integrate the content of primary reports. The main purpose of this research is to verify some key factors leading to customer satisfaction of Samsung which include Samsungs modern technology, brand image and price fairness. Thus, the review of the literature

concerning to this topic will be focused by referring to relevant text books, past research papers and the Internet sources mostly published after year 2006.

5.1

Modern Technology

From day to day, our world has been changed from one situation to another with new ideas that comes up to the minds of everyone especially in improving the technology. Modern technology is the current technology or developed product of the application of science that has advanced technologies which make people life easier and living better. Nowadays, technologies are becoming more and more advanced compare to the earlier time. Therefore, modern technologies are very advantageous and supportive for human being to reduce their workload, stress, save time and make their life easier such as for fast communication, improvement of travelling and good health care medical treatment. Based on this research, mobile phones are one of the devices which are most impacted by the advancement in technology. It is because frequently launching of latest types of mobile phone brands with enhanced features which are also guide and implement the mobile manufactures to release the mobile phones with new and innovative features. Therefore, it has been proven that Samsung is one of the big brands which has been launched plenty types of mobile phones with sophisticated features and stylish look. As a fact, the advancement of technologies helps the Samsung mobile manufacturer in forming different and latest types mobile phones which attract the customers towards it. Samsung mobile phones are well loaded with the high end features and newest technology. For instance, Samsung mobile phones have been awarded a green certificate by one of the most reliable establishment in the US. There are two mobile phone models including Ever Green phone and Illusion phone which won certificate of SPC (Sustainable Product Certificate) by the Underwriters Laboratories (UL). Therefore, the SPC certificate ensures that a product concerned has passed just about any rigorous standard in relation to sustainability. This is because; the mobile phones are created without using hazardous material, high energy-efficiency, ease of lengthening a product life cycle and the makers green efforts during the whole process of manufacturing.

Definitely, Samsung mobile phones have every feature that is adequate to win the hearts of the present day customers. There are many more mobile phones by Samsung are in the pipeline which is expected to provide better alternative to the customers. Therefore, it can be hoped that as modern technology will be more advanced, the Samsung mobile phones will be launched with more and more features with a numeral of features which are not yet imagined. The Samsung mobile phones offer a great opportunity for customers to advantage of the modern technology at great offers. 5.2 Brand Image

According to An-Tien Hsieh (2007), brand image is the view or perception of a product brand by the consumer which comprises of various relation in customers mind such as characteristic and benefits. It is also defined as a unique collection of associations within the minds of aim customers and overall impression in customers mind that is created from all sources. Furthermore, brand image get across and develop the product quality in a unique method different from its competitors image because customers belief that brand image is one of the main aspect that would attract customer to consume the product as well as reach customer satisfaction or we can say that brands create customers. There are some reasons of why quality brand recognition is important which are also relevant to the mobile phone industry. Firstly, customers are enjoying the advantage of the brand image when they are purchasing. If the customers are lack of motives of choosing brands, they will choose according to the brand image since it is the main driving force for purchase of decision. Generally, the customers would choose those brands they are most familiar with rather than a new brand. Therefore, we must know that brand recognition is one of the requirements for the development of brand image where a good image creates clear product differentiation, customer preferences and loyalty. Moreover, a superior brand could attract more attention from customers and good brand image improves the positive customer perception. As a result, positive brand image enhances the goodwill and brand value of an organization. If a brand is equal or exceeding the customers expectations, then it will be further strengthen the positive brand awareness of customers. Oppositely, if it does not reach the expectations of customers, then the brand would have

negative brand awareness; it will not have the brand loyalty (Cheng et. al., 2009). Brand loyalty would be created, which is the extent of faithfulness of the customers to a particular brand, signified by repurchasing behavior even though there is a marketing pressure formed by choices of other brands (Nemati et al., 2010). According to Hanif (2010), customer satisfactions are formed once the main need of customers is unite by the brand. Based on various research and studies, it has been confirmed that consumer will purchase products which have a good brand image because it is the objective and feed back of the customers. Therefore, a company would definitely gain a better position in the market and increase market share or performance if they constantly generate a complimentary brand image to the public because brands are primary sources of relationships with customers and customer loyalty. Thus, a good brand image guide to customer satisfaction. According to Deeika Khatri (2011), Samsung has become worlds leading brand in electronics and digital industry. Furthermore, Samsung mobile phones are also said to have a strong brand image by bringing the customers to feature-rich products in the market. Besides that, Samsung is getting ready to compete with Apple for digital education and conference with major foreign educational content for potential collaboration. (Padmini Harichandrai, 2012). As a result, customers in worldwide have come to know and trust Samsung brand as one of inspiring and equivalent with quality technology and services that are uniquely designed for them.

5.3

Price Fairness

Referring to Kotler and Armstrong (2010) cited in (Hanif et al., 2010), price is defined as the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Whereas, price fairness refers to consumers evaluations of whether a sellers price is reasonable, acceptable or justifiable (Xia et al., 2007) cited in (Hanif et al., 2010). Price fairness is an essential issue that leads toward customer satisfaction and therefore charging fair price helps to increase customer satisfaction and loyalty. Research has revealed that customers decision to accept particular price has a direct

influence on satisfaction level and loyalty indirectly (Consuegra et al., 2007) cited in (Hanif et al., 2010). In another research of Herrmann et al., (2007) cited in (Hanif et al., 2010), it was said that customer satisfaction is directly influenced by price perceptions while indirectly through the perception of price fairness. The price fairness itself and the manner it is fixed and offered have a great impact on satisfaction. If a brand is providing fair price and increase in price are reasonable, then customer takes it confidently which create a sense of satisfaction among customers. Therefore, it can be concluded that that price fairness is a key factor contributes towards creating customer satisfaction (Hanif et al., 2010) In case of Samsung, besides increases its value with new service and technologies, the company also increase its competence at the lowest cost possible lifetime cost each product (Luo, 2002). This shows Samsung attempt to increase price fairness in order to ensure high customer satisfaction. Voss et al. (1998) cited in (Herrmann et al., 2007) claimed that satisfaction is a function of price, performance and expectations. According to the research, rather than performance, perceived price fairness might be the leading determinant of satisfaction. Their experimental results proposed that when the perceived price performance is inconsistency or have unfair outcome, it would had a stronger effect (negative) on satisfaction level (Herrmann et al., 2007). Thus researcher feels that customer satisfaction and price fairness has strong relationship, if price fairness present then it would add to customer satisfaction.

CONCLUSION STATEMENT Based on the literature reviews, it is clarified that customer satisfaction is significant in determining the success Samsung mobile phones and it is one of the companys value. The factors include modern technology, brand image and price fairness. Analysis on the literature review has pursued my interest to further verify the key factors emphasized by existing researchers. So, I would like to make Samsung mobile phones as the case study to verify the factors contributes to customer satisfaction towards Samsung mobile phones in Malaysia. It would be interesting to make a research study locally to further verify the key factors.

RESEARCH METHODOLOGY

This part describes the methodology of research that is appropriate to be carried out. Research methodology is the science and philosophy behind all research which enable us to understand the different ways in which knowledge and answers to research questions can be created (Adams et al., 2007). This research is focusing on the key factors affecting customer satisfaction level of Samsung mobile phones. Hence, this part is specified to the explanation of methodology which can be implemented to show its validity and justification for this research.

RESEARCH APPROACH My research is about the cause modern technology, brand image and price fairness in achieving customer satisfaction level. Since I am interested in explaining the relationship of modern technology, brand image and price fairness in reaching the customer satisfaction, my research is an explanatory study. According to Saunders et al. (2007), explanatory study is also known as causal study which is emphasized on explaining the relationship between variables. Focusing on deductive approach, this study has a predetermined theory, developed by reviewing the vast literature available, which will be tested through the hypothesis formulated (Saunders et al., 2006). Since this approach start with a general theory, the theory is applicable to a specific case as in this research. Besides, as hypothesis testing is deductive in nature, the approach is significant in this research in order to test all three hypotheses simultaneously (Segaran and Bougie, 2009). Case study approach is an important approach applied in this research. A case study involves indepth analyses of matters relevant to similar situations in other organizations, where the nature and definition of problem coincidently to be same as experienced in the current situation. Furthermore, this approach includes understanding and correctly translating the characteristics from other appropriate cases to ones own situation besides based on past problem-solving experiences (Segaran and Bougie, 2009). Hence, the investigation on factors influencing

customer satisfaction for Samsung mobile phones might be practical for other mobile phone manufactures. Survey approach suits the need of this research, where the researcher has to gather data from the targeted population. Then, the research design is a descriptive research method which enables the researcher to study and analyze the factors influencing customer satisfaction for Samsung mobile phones.