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The Consumer Decision Making Styles of Mobile Phones among the University Level Students in Jordan
Ziad Moh'd Ali Smadi Al-al-Bayt University , Faculty of Business & Finance Department of Business Administration - Assistant Professor E-mail: ziad34@hotmail.com Bahjat Eid Al-jawazneh Al-al-Bayt University , Faculty of Business & Finance Department of Business Administration - Assistant Professor E-mail: jawazneh9@yahoo.com Abstract This paper aims to identify the decision-making styles of university level students in Jordan, specifically the research sought to identify the purchasing decision styles among the university level students in Jordan, with a main hypothesis that states, the university level students in Jordan do not have a certain a decision making style when purchasing a mobile phone, the researchers applied a tested research instrument of (Sproles & Kendall, 1986) to measure the consumer decision making style. A simple random sampling technique was utilized, thus 390 questionnaires have been distributed to different Jordanian university students in national capital region of Jordan where many public and private universities are located, the findings revealed that the university level students in Jordan follow a decision making style that is characterized by being perfectionist, brand conscious, price conscious, Impulsive, confused by over choice, and brand-loyal consumer. Besides it concluded that, male and female university students in Jordan, do have some differences in their choices and the way they decide when they buy a mobile phone. Keywords: Consumer behavior, Decision making styles, University students, Mobile phones, Jordan
1. Introduction
Consumer decision making styles have become an interesting area that poses a challenge to marketers, researchers and practitioners, but unfortunately there are very few published studies in Jordan as far as the researchers know, covering this important area of interest. Consumer decision-making is defined as the behavioral patterns of consumers that proceed, determine and follow the decision making process for the acquisition of need satisfying products, ideas or services (Zeithaml, 1988; Levy, 1999).. Jordan is a country that opened its arm to globalization which is manifested by its liberal trade policies and its openness to all forms of information and media communication which in return made a reshape to its culture and Jordanian consumer behavior, thus a study of this kind will enlighten marketers in Jordan on how to make a fit between their customers environment and marketing strategies. 104
Based on individual mental orientations, each consumer develops and practices this decisionmaking process in different ways which have been characterized as decision making styles (Sproles & Kendall,1986). It is becoming so important for marketers all over the world to know how young consumers decide which particular product, brand or service to purchase. The consumer buying behavior is becoming an important research area that has an effect on the marketing process of the firm because it is ability to establish and maintain satisfying exchange relationships requires an understanding of buying behavior. Buying behavior is the decision processes and acts of people involved in buying and using product. Many previous studies focused mainly on the decision making process, but (Sproles, 1979) argues that consumers may sometimes typically rely on simple strategies, rather than going through a series of steps or processes rationally when they made purchase decisions. This is why (Sproles and Kendall 1986) pioneered to research on consumer decision-making processes by classifying consumers into different decision-making styles To develop an effective marketing strategy companies must pay more attention to consumers and study their decision-making process. Understanding buying-related decision-making styles of consumers is important for companies strategic marketing activities, and effective communication with the youth segment can be helped by understanding the psychological processes that affect their behavior. However, in the rapidly changing competitive environment with over choice due to increase in the number and variety of goods and retail outlets, excessive marketing communications that provide an abundance of information, much of it with mixed messages, sophisticated and complex products, decreasing inter-brand differences, and increasing counterfeiting and look alike products, some consumers feel overwhelmed and find it difficult to decide (Hafstrom, Chae and Chae,1992; Walsh, Mitchell and Henning-Thurau, 2001a).
(Sproles and Kendall1986) confirmed consumer characteristics specifically related to consumer decision-making as shown in figure 1.
Figure 1: Consumer decision-making style. (Sproles & Kendall, 1986)
Consumer decision making styles
Consumer Typology
Consumer characteristics
The CSI is considered an effective instrument to assist marketers in studying consumer decision making styles (Walsh et al, 2001). The CSI has been tested using various nationalities - Americans, Koreans, Chinese, Indians and Germans (Fan & Xiao,1998; Hafstrom et al, 1992; Lyonski et al, 1996; Walsh et al, 2001) in an attempt to get a better understanding of consumer decision-making processes within different cultures. (Mitchell and Walsh 2004) made a comparison between the decision-making styles of male and female shoppers in Germany. The researchers confirmed the construct validity of all eight CSI factors for female shoppers and four of the factors for male shoppers. They concluded that male individuals were slightly less likely to be perfectionists, somewhat less novelty and fashion conscious, and less likely to be confused when making purchases than their female counterparts. The sheer magnitude of this group of young generation has had a profound impact on current business because members of this generation 'love to shop' (Taylor and Cosenza 2002) An increasing number of males are doing grocery shopping; males tend to spend less per shopping activity and spend less time in the store. Family income is another constraint to search behavior. Households with less income are more likely to spend less time on shopping (Davies and Bell 1991). (Slama and Tashchian 1985) concluded that purchase involvement and search behavior are linked to demographic characteristics of the consumer and their household. They asserted that females are more highly involved and there is greater involvement when there are children at home. In addition to that, they suggest other factors such as marital status, age, education and income of the consumer are closely related to purchase involvement and search. A research on decision making styles of young Turkish consumers found that young Turkish consumers rated quality of the product as the most influential factor on their decision making, followed by time (perceiving shopping as an enjoyable activity), price, brand, and finally, information utilisation/ confusion by choice. There were significant differences between male students and female students to some of the factor items (Gnen, E. & zmete,E.,2006). Another study investigated the differing approaches of male and female Malaysian consumers toward shopping and buying activities concluded that, six of eight male factors and nine female factors were similar for both males and females: quality consciousness, brand consciousness, fashion consciousness, confused by over choice, satisfying and value seeking ( Mokhlis, S.& Salleh, H.,2009). (Laetitia et al, 2006) studied Decision-Making Styles of Young Chinese, Motswana and Caucasian Consumers in South Africa and found that although students from all three different cultural groups seemed to be perfectionist shoppers, Chinese students are typically habitual shoppers, while Motswana students are image and quality-conscious and Caucasians are price-conscious. In their research on The influence of Internet shopping mall characteristics and user traits on purchase intent , (Kim and Shim 2002) found that around 40 percent of shoppers classified themselves as sophisticated quality shoppers, on the other hand Brand conscious shoppers believe that these types of international brands result in better quality. Brand influences have been found to be a critical factor in consumer purchasing processes (Cleaver, 1985; Sproles & Kendall, 1986) 106
Researchers emphasize fashion as an important factor in consumer decision-making (Gutman & Mills, 1982; Kim & Shim, 2002; Sproles & Kendall, 1986). Negative psychological aspects influence consumers processing of persuasive messages, and persuasive messages usually produce negative moods when consumers are struggling with negative emotions (Bless & Forgas, 2000). In their research on Profiling the recreational shopper (Bellenger and Korgaonkar, 1980) found that around 70 percent of consumers enjoy shopping in their leisure time. After they examined the nature of retail recreational shopping, they also found that recreational shoppers were actively involved in information collection and participated in a greater amount of impulsive purchasing. During the individual decision-making process, the price conscious shopper may consider the greatest value at the lowest price. (Janiszewski and Lichtenstein,1999) found that if all product options were at the same benefit level, consumers would buy the lowest priced alternative According t (Beatty and Ferrell,1998), the consumers positive moods influence shopping enjoyment and purchasing decisions, in addition to that store attractiveness keeps many consumers coming back to the same store. How consumers view store image has long been considered an important part of consumer decision-making (Baker et al., 1992).
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Impulsiveness/careless conscious
Confusion by over choice conscious
Habit/brand loyalty conscious The decision making styles Adapted from (Sproles & Kendall, 1986)
5. Research Hypothesis
Based on the research model (Fig. 2) the researchers were able to formulate the following hypothesis: The first main null hypothesis: H0: The university level students in Jordan do not follow a certain a purchasing decision making style when purchasing a mobile phone. From the main hypothesis the researchers derived the following sub- hypothesis; H01. The university level students in Jordan are not a Perfectionist when they purchase a mobile phone. H02. The university level students in Jordan are not a Brand conscious when it comes to a mobile phone. H03. The university level students in Jordan are not a fashion conscious when it comes to a mobile phone. H04. The university level students in Jordan are not a price conscious when they want to buy a mobile phone. H05. The university level students in Jordan are not impulsiveness/careless conscious in their mobile phone purchasing decision making style. H06. The university level students in Jordan are not Confused by over choice conscious in a purchasing decision making style. H07. The university level students in Jordan are not a Habit/brand loyalty conscious in their purchasing decision making style. The second main null hypothesis: H0.2. There is no significant difference between Jordanian male and female university students in relation to their purchasing decision making style. The third main null hypothesis: H0.3. There are no significant differences among the answers of the respondents pertain to their demographic profile.
6. Research Methodology
A descriptive and analytical methods have been utilized in this study, in addition to that the researchers applied a tested research instrument of (Sproles & Kendall, 1986) to measure the consumer decision making style of the university level students in Jordan, that instrument is capable of measuring such a
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style since it is universal in its approach, according to some practitioners and academicians in Jordan whom the researchers consulted during the preparation phase of the research, the instrument is composed of the two parts: The first Part covers the demographic profile of the respondent while the second part includes the consumer decision making styles. Nominal scale was used to get the answers of the respondents on their demographic profile, while likert scale was used to allow respondents to rate their purchasing styles, which is ranging from strongly agree as the highest and strongly disagree as the lowest.
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Table 1:
Variable Sex Age
University Current academic year Living place Marital status Employment status Father salary
Table (1) shows that most of the study respondents were female with a percentage of (55.7%) and that is probably due to the fact that males and females are given equal opportunities to enter the higher education institutions in Jordan. The table also shows the age bracket of the respondents is from 18 to 22 years old with a percentage of (58.1%) which is believed to be the right age for university level students, it is also shown above that, 49.5% of the respondents belong to public universities while the rest of the respondents are from private universities, because public universities in Jordan prioritize deserving students who get high score in the high school achievement exam(Tawjehi) while the rest will be forced to choose between local private universities or studying abroad. Most of the study respondents are in their second year and above with a percentage of 67.2%), and that helped researchers obtain more reliable responses , more ever most of the respondents are living in a city with a percentage of (65.7%) since most of the universities which were surveyed in this research are located in Amman the capital city of Jordan, most of them was a single not married with a percentage of 92.1%), and mostly unemployed with a percentage of (76.8%), and that is due to the limited Job opportunities offered to them on part time basis.
7.2. Analysis of the Coefficient of Internal Consistency, the Table (2) Shows the Analysis Regarding the Internal Consistency
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Table 2:
Factors 1- Perfectionist high quality consumer 2- Brand conscious 3- Novelty fashion conscious 4- Price conscious 5- Impulsive, careless consumer 6- Confused by over choice consumer 7- brand loyal customers Reliability for all
Table (2) shows the values of coefficient of internal consistency of all variables of the consumer decision making styles, with a result of 77.8% which is acceptable since it is more than the minimum required percentage which is 60% for social science researches (Cronbach,1951).
7.3. Presentation of Findings and Discussion of Results 7.3.1. Answering the First and the Second Main Problem of the Research 1. What are the most dominant purchasing decision making styles among Jordanian university students?. 2. What is the ranking of these styles in terms of their practice? The answers of these two questions are shown in table (3)
Table 3:
Descriptive Statistics for all consumer decision making styles
N 341 341 341 341 341 341 341 Mean 3.544 3.538 3.250 3.239 3.183 3.001 2.956 3.244 Std. Deviation .920 .865 .946 .771 .9220 1.04 .882 Rank 1 2 3 4 5 6 7
FACTORS Perfectionist high quality consumer Price conscious Brand loyal customers Impulsive, careless consumer Confused by over choice consumer Brand conscious Novelty fashion conscious Total average
The table above shows that the university level students in Jordan are perfectionist high quality consumers, this is true to high technology products such as mobile phones because consumers pay more attention to quality related factors than others, followed by being a price conscious, since having value product is a matter of relationship between quality and price, but putting less emphasis to looks and appearance lead respondents to give the least rating to being Novelty fashion conscious, such result is similar to the finding of (Hafstrom, Chae and Chung,1992), who used the CSI to identify the decision-making styles of Korean students and they confirmed novelty fashion consciousness was the least present among respondents. Testing the first main Null Hypothesis H0: The university level students in Jordan do not follow a certain purchasing decision making style. In order to prove this hypothesis the one sample ttest was used as shown in the table below
Table 4:
One sample (t) test for testing the first main Null Hypothesis
t Consumer decision 9.822 making styles .05 Test Value = 3 df 340 Sig. (2-tailed) .000 Mean Difference .24459 95% Confidence Interval of the Difference Lower Upper .1956 .2936
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It shows above that the T-value is 9.822, which is less than the tabulated t-value (1.96) with significance level ( 0.000) which is less than .05 , therefore based on this result the first main null hypothesis is rejected and an alternative hypothesis is accepted, that is the university level students in Jordan follow a decision making style, similar result was also confirmed by (Walsh, Mitchell & Henning-Thurau, 2001).
Perfectionist high quality consumer Getting very good quality is very important to me. When it comes to purchasing of Mobile, I try to get the very best or perfect choice. I make special effort to choose the very best quality of Mobile. My standards and expectations for Mobile that I buy are very high In general, I usually try to buy the best overall quality. Total average
The Table above illustrates that the overall average is (3.544), which indicates a medium acceptance rating among the respondents of the study. It is also important to point out that the item that got the highest rating is related to the standards and expectations for Mobile that students buy are very high, that is normal for a product which is characterized by short life cycle and survives in an unstable environment, followed by I make special effort to choose the very best quality of Mobile and that requires enough time for making comparisons between the competing available brands, but the lowest in rating is, students try to get the very best or perfect choice, these findings agree with what (Gnen, E. & zmete,E.,2006) arrived at.
The table shows that the first sub-hypothesis is rejected because the t- value is more than the tabulated (t) (10.93 > 1.96 ) and under the significance level of ( .05), therefore the alternative hypothesis(H1) was accepted, thus university level students in Jordan are perfectionist when buying mobile phones.
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Table no. (7) shows a low medium acceptance rating among the respondents of the study on brand conscious, in spite of that, most of the respondents see the well-known international brand of Mobile as the best for them, perhaps because of the good reputation of the well known international brands in terms of quality, yet others still find nice department and specially stores offer them the best brand of Mobile, but the lowest rating goes to question related to, the more expensive brand of Mobile is usually their good choice with an average of (2.57) which represents a low response rate.
It is shown in the table above that the second sub-hypothesis was accepted, because the t- value is less than the tabulated t- ( .017 < 1.96), and under the significance level of ( .05), so there is no alternative hypothesis is formulated, it means that the Jordanian male and female university students are not a brand conscious in a purchasing decision making style which is contradictory to the results of (Cleaver, 1985; Sproles & Kendall, 1986) research which is brand influences have been found to be a critical factor in consumer purchasing processes.
Fashion conscious I usually have one or more phone of the very newest style. I keep my phone up to date with the changing technology. Attractive design is very important for me. To get variety, I shop different stores and choose different brand of Mobile. Its fun to buy new and exciting Mobile. Total average
Table (9) illustrates that the overall average for fashion consciousness style is the lowest in rating among the rest of consumer decision making styles, that is normal for technology intensive products where consumers base their purchasing decision on features and product specifications rather than design and appearance, followed by an item related to It is fun to buy new and exciting Mobile, which is normal reaction for those who belong to that age bracket. But the lowest rating went to item, I keep my phone up-to-date with the changing designs, with an average of (2.60), and item related to, I shop different stores and choose different brand of Mobile.
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Table (10) shows that H03 was accepted because the t- value was lower than the tabulated-t-( .789 <1.96) under the significance level of ( .05), there for is no need for alternative hypothesis to be formulated ), so Jordanian male and female university students are not a fashion and design conscious, hence it is much related to ( Mitchell and Walsh 2004) findings.
It is shown above that the level of price consciousness among respondents of this study got an upper middle response rate, the highest response rate is for the item related to, "I look carefully to find the best value for the money", and the rest of the items got almost the same degree of rating.
The table shows that the forth sub-hypothesis was rejected because the t- value is more than the tabulated t- (11.496 > 1.96 ) and under the significance level of ( .05), therefore the alternative hypothesis(H1) was accepted, which means that university students are a price conscious in their decision making style, and this is relevant to the finding of ( Laetitia et al, 2006).
It is obvious in the table that university level students in Jordan do not plan their shopping for mobile phone to a certain extent, because the overall average for all items concerning the item related to impulsive, careless consumer, got a medium response rate, The highest rating went to item, "I carefully watch how much I spend for buying Mobile" with an average of (3.75), next to it "I take the time to shop carefully for getting the best Mobile, with an average of (3.57)", while the least rating was given to item " I often make careless purchases of Mobile and I later wish I had not" 114
According to the table above, the fifth sub-hypothesis was rejected because the t- value was more than the tabulated t- (5.711> 1.96 ) under the significance level of ( 05), therefore an alternative hypothesis was confirmed, which means university level students in Jordan are Impulsiveness/careless conscious in their decision making style.
It is illustrated above that the, overall average for all items concerning the factor (Confused by over choice consume) got the highest rating but it is still considered a medium response rate, the highest rating went to the item "there are so many brands of Mobile, and I often feel confused", with an average of (3.50), this due to the stiff competition among the manufacturing companies that lead to the production of so many types and models of mobile phones which at the end look similar in features and appearance , the next in rating is the question related to item "sometimes its hard to choose which stores to shop" , that is also what ( Mokhlis, S.& Salleh, H.,2009) concluded in their research about the Malaysian consumers approach toward shopping activities.
It is shown above that the sixth sub-hypothesis was rejected because the t- value is more than the tabulated t- (3.671> 1.96 ) and under the significance level of ( .05), therefore the alternative hypothesis(H1) was accepted, which means Jordanian university students,are confused by over choice conscious in a purchasing decision making style.
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The overall average for all items concerning the item "brand loyal customers" was (3.35) which is a medium response rate. The highest rating went to item "I have favorite brand of Mobile that I buy over and over", with an average of (3.59), this is normal for mobile phones products because some brands seem to be more user friendly than the others, therefore consumers find it hard to pass through new learning and adaption process, and that is what also made the item "Once I find suitable brand of Mobile that I like, I stick with it" to be the next in rating.
The table above shows that the seventh sub-hypothesis was rejected because the t- value is more than the tabulated t- (4.884 > 1.96 ) and under the significance level of ( .05), therefore the alternative hypothesis(H1) was accepted, which means Jordanian university students are, a Habit/brand loyalty conscious in a purchasing decision making style, brand influences have been found to be a critical factor in consumer purchasing processes (Cleaver, 1985; Sproles & Kendall, 1986)
7.3.2. Answering the Third Main Problem Is their any difference in the respondents decision making styles pertains to gender. In order to answer the third question, the following hypothesis was formulated The second main Null Hypothesis: H0: 2- The Jordanian male and female university students differ in their purchasing decision making style. In order to prove this hypothesis the Independent T-test was used.
Table 19: Independent sample t-test
Levene's Test for Equality of Variances Decision making styles Perfectionist high quality consumer Brand conscious Novelty fashion conscious Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed Equal variances assumed Equal variances not assumed F 4.477 Sig. .035 t -1.160-1.1492.840 .093 .777 .743 .261 .610 .661 .665 T- test for Equality of Means df 339 309.052 339 249.970 339 329.276 Sig. (2-tailed) .247 .251 .438 .458 .509 .506 Mean Difference -.11632-.11632.08937 .08937 .07419 .07419 Std. Error Difference .10025 .10119 .11504 .12024 .11229 .11153
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The table above shows the overall test of all decision making styles revealed that, the sig. level was (0.611> .05) and the t value was (0.509) which is also less than the tabulated value 1.96 (0.509<1.96), therefore the second main null hypothesis is accepted which confirms that the male & female students they do have some differences in their choices, though ( Mokhlis, S.& Salleh, H.,2009) concluded that, six of eight male factors and nine female factors were similar for both males and females: quality consciousness, brand consciousness, fashion consciousness, confused by over choice, satisfying and value seeking. It is also necessary to point out the only style where there is no differences between males and females is, confused by over choice consumer decision making style, that is because it is F value was the highest (28.295) plus its mean difference value was also the highest (.4389), while the rest of the mean values for other factors is low.
7.3.3. The Third Main Null Hypothesis H0: 2- There is No Significant Difference among the Answers of the Respondents Pertains to their Demographic Profile. In order to prove or reject this hypothesis one way ANOVA was used which is shown in the table No. (20) Below
Table 20: ANOVA
Sum of Squares 503.990 43.500 547.490 190.265 23.500 213.765 74.885 9.250 84.135 df 275 65 340 275 65 340 275 65 340 Mean Square 1.833 .669 .692 .362 .272 .142 F 2.739 Sig. .000
University
Age
Gender
Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total
1.914
.001
1.914
.001
117
1.922
.001
Martial status
1.174
.221
Employment status
1.863
.002
Father salary
2.965
.000
Fathers education
3.037
.000
Mothers education
3.872
.000
Daily allowance
2.576
.000
.05
Table (20) shows no differences among the answers of the respondents pertains to their demographic profile, except for the marital status, which shows a level of significance that is more than 0 .05 (.221<.05), and indicates a high difference among the answers of the respondents regarding the decision making styles. The F value for almost all the demographic variables was less than (1.96), which implies that, most of the respondents have no difference in their opinions regarding the decision making styles. The other demographics factors such as, Fathers education, Mothers education, Father Salary and daily allowance showed somehow slight differences in the level of their answers, because the F value was more than (1.96).
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**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).
The table above shows a correlation between the different variables of the study, it is noted that almost all factors has a very high correlation except between developing Perfectionist high quality consumer and Price conscious, Confused by over choice consumer which had a negative correlation of about R= -.004- &-.038- respectively with a significance of about, .937 & .480 which is more than 5%, there is also a very week positive correlation between developing Perfectionist and brand loyal customers with R= .093, this represents a very week correlation with a significant of .088 > .05. there is also a negative week correlation between the Brand conscious and Price conscious with R= -.102 and a significance of 0 .059>0.05, another week positive correlation is between the Brand conscious and Impulsive, careless consumer and Confused by over choice consumer with R = .050 and .001 with a significance of .354 and .990 respectively which is more than the acceptance level of 5%.
8. Summary of Conclusion
1. As consumers the university students in Jordan follow a certain decision making style dominated by being novelty fashion conscious, price conscious, brand loyal customers, impulsive, careless consumer, confused by over choice consumer, brand conscious, and perfectionist high quality consumer, but that style of decision making was not given high rating rather an upper middle rating. 2. University students in Jordan pay attention to the quality of mobile phones; this is manifested by the special effort they exert to choose the very best quality of Mobile since their standards and expectations for Mobile that they buy are very high. 3. Respondents are not brand conscious, but still believe in the higher price of Mobile the better in quality, because imitated phones flow from south East Asia and being sold at a very low price, in order to minimize the risk of buying a fake one, consumers prefer to buy from well known and authorized dealers. 4. Fashion does not have big influence on Jordanian students decision making styles, because mostly care for good and attractive design rather than trendy one. While some enjoy and have fun when buying a new and exciting Mobile to the extent that they usually have one or more phone of the very newest style. 5. Price normally matters when it comes to mobile phones and that is also the case with young consumers in Jordan, since majority look carefully to find the best value for their money and usually lower prices Mobiles appeal to them, which is why they buy as much as possible at discount prices. 119
6. It takes time with university level students in Jordan to shop for getting the best Mobile, and that is probably because they carefully watch how much they spend for buying Mobile, aside from that they also plan their shopping for Mobile more carefully than they do. 7. Respondents are confused over what to choose because there are so many brands of mobiles available in market that share similar features and functions, in addition to that young consumers are gaining more knowledge about this product which makes their decision a difficult one. 8. A big number of the University level students in Jordan have a favorite brand of Mobile that they buy over and over, the reason behind that, it is once they find suitable brand of Mobile that they Like they stick with it and even go to the same stores each time they shop. 9. The male and female students in Jordan do have some differences in their choices and the way they decide when they buy a mobile phone, the only decision making style where there is no differences between males and females is, confused by over choice consumer decision making style.
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