The widespread use of mobile phones, the various information access means that it provided to its users, and the vast presence and significant impact of mobile phone on users’ daily life make mobile phones important devices to study (Safiek and Azizul, 2012). In 2001, mobile phone subscriptions were less than a billion worldwide with the majority of the subscriptions from the developed countries. However, at the end of 2010, mobile phone subscriptions had reached five International Review of Social Sciences and Humanities, Vol. 2, No. 2 (2012), 203-212 Among various contemporary mobile communication technologies, the mobile phone is regarded as ‘‘the most radiative domestic appliance ever invented’’ (Coghill, 2001, p. 28).
There has been increasing number of people who pursue new life style of working, communicating, and playing games through smartphone to the extent of emerging consumer group who “starts a day with smartphone and wraps up with smartphone”. As smartphone app business is growing rapidly, many studies about Appstore platform or apps development have been conducted. However, despite of agent need, the research about factors affecting choosing and purchasing application by Smartphone users has not conducted yet. During the period from Feb. 2010 to Feb. 2011, on an average around 20,000 applications were registered in Appstore, USAand 18,000 application were registered in Android Market during same period (Lee, et al, 2012).
The widespread utilization of mobile phones in communication and information transfer leads to exponential improvement in mobile phone technology. To meet users’ information needs, innovative features and applications are continuously being added to mobile phones to make them perform many more new functions (Safiek and Azizul, 2012). Despite the growing importance of mobile phone technology there has, to date, been relatively little research on consumers’ evaluation of the importance of mobile phone attributes, particularly in the Malaysian context. Therefore, in this study, we investigated how features of Smartphone affect the Buying decision of Smartphone by Generation Y.
Malaysia is chosen as the setting of this study because of its position as an emerging economy in Asia that has seen a tremendous growth in its mobile phone market, both in terms of penetration rate and airtime use. According to Business Monitor International (2011), Malaysian mobile phones sales accounted for about 66% of consumer electronics spending in 2010. The number of mobile phone users in Malaysia is estimated at 33.9 million in 2010 and by the year of 2015, it will reach 40 million (Safiek and Azizul, 2012).
Some of the key trends and development in Malaysian mobile telecommunication industry are related to the growing popularity of smartphones among Malaysian consumers. IDC ASEAN telecommunication research reported that Apple iPhone, with its edition of 3G and 3GS, has gained an increasing market share with about 91,000 units sold until March 2010 (Safiek and Azizul, 2012).Likewise, Blackberry is also reported to have sold more than 100,000 units in 2009 (Sidhu, 2010).
2. BACKGROUND OF STUDY
1. Generation Y
Generation Y nowadays have increasing in number and also have influences in today smartphone market which leads to business people to grabs this opportunities in selling their products to maximize profit.
Generation Y is widely known as the generation born between 1980 and 2000. This generation is confident, independent, and goal-oriented. Although, technology advances began in the Gen X era, Generation Y was born into technology and often knows more about the digital world than their teachers and parents. The enhanced technological knowledge has launched this generation into an era that is accessible everywhere to anyone. Gen Y has high self-esteem; they are the trophy generation that allows every child to get a medal or praise, leaving no...