Factors Affecting Decision on Mobile Phone Types for Consumer Purchase Based on Discrete Choice Model

Abstract

This paper starts from the purchase of mobile phone, on the basis of effectively collecting and summarizing the large user data of a operator in Xi’an, Shaanxi Province, summarizes the factors that affect the selection behavior of users when their mobile phone is purchased, include the type attributes of mobile phone and individual level attribute of users. Then with the support of Expected Utility Theory and Discrete Choice Model, a Multinomial Logit model is established to explore how these attributes affect the users’ preference of mobile phone type, from the perspective of the mobile phone manufacturers. According to the results of the study, consumers can be roughly classified, and a precision marketing scheme of mobile phone based on operator’s large data can be ultimately provided to the manufacturers, to help them deepen their cognition of the regularity of the consumers’ choice behavior, and identify as well as divide potential customers effectively, provide customized services, precise marketing of new phones, enhance market competitiveness.