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PYC2606 Basic Questionnaire & Measurement Design
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FACTORS AFFECTING THE SALE OF PHONES: A CASE STUDY OF HUAWEI PHONE IN UK
FACTORS AFFECTING THE SALE OF PHONES: A CASE STUDY OF HUAWEI PHONE IN UK
Understanding the factors which make the customer choose a product over another is crucial as it can help in the creation of a good which meets their needs. With changes in technology and the range of phones the customer can access it is vital to ensure that a company creates a product which meets their needs as this will affect their sales directly. A slight change in the type and level of specifications can be the main attracting feature in a phone making the difference in a tight market environment. Customer satisfaction is crucial to the success of a company as a slight mistake can lead to lose of market share especially when operating in a tight market environment. Huawei Technologies is a leading communication and ICT company with an international market. Huawei has so far survived in an increasingly competitive and fast changing environment because they have the needed facilities and innovation. The company needs to constantly review their strategies and work to understand the customer so that they can make adjustments as customers demand. Change is essential in an organisation and should help guide their actions especially when they understand the customer and work to create a solution they increase the market share. With Huawei targeting customers at the international stage and their task of ensuring they create a product which cuts across the international stage is needed. The UK market is dynamic and understanding the factors which affect the purchase of Huawei phones can be extrapolated to mean the whole of the western market. Such is crucial as it will help Huawei adjust their strategy in pricing or product specification to help increase their market. Most researchers in the field have looked at customer satisfaction as one of the factors which guide their purchasing and found that their decision to make the purchase.
Table of Contents
1.0. CHAPTER 1: Introduction 1
1.1. Background 1
1.2. Research Aims and Objectives 2
1.3. Research questions 2
1.4. Rationale 3
CHAPTER 2: Literature Review 4
2.1. Theoretical perspectives 4
2.1.1. Phone technology 4
2.1.2. Competition 7
2.1.3. Price 10
CHAPTER 3: Research Methodology 14
3.1. Population 14
3.2. Sample size 14
3.3. Data collection 14
3.4. Data analysis 15
CHAPTER 4: Results 16
CHAPTER 5: Discussion and Analysis 20
CHAPTER 6: Conclusion & Recommendations 23
CHAPTER 7: Reflective Account 26
1.0. CHAPTER 1: Introduction
Mobile Phones have become an important part of personal communication in contemporary society. Moreover, the emergence of applications such as social media, internet browsing, emails, games among other application has increased, giving rise to the demand of Smartphones. As the mobile phone industries strive to meet the rising demand in Smartphones, the innovation of different varieties of the phones have increased making it important to have a good phone will the latest specifications. Despite the increase in demand for mobile phones, only the companies that are able to understand the factors that affect their sales volume have succeeded in the industry. Therefore, to overcome the stiff competition in the phone industry, companies are continually looking for ways that can enhance their competitiveness and ultimately their survival. Consequently, understanding the factors that affect product sales is a fundamental aspect of enhancing company survival. Kim et al. (2014) argue that monitoring the factors that affect the sales of a company product is a fundamental element to the company continued success because it helps to keep abreast with the evolving market trends and, thus, increases the company’s innovativeness (34).
Over the years, the increasing demand for mobile phone has attracted many companies to the phone industry. One such company is Huawei Technologies Co. Ltd., founded in 1987, is a Chinese company which has tremendously grown and expanded its operations in different countries globally. The company major expansion in the international market was in the year 2004 when it received backing from China development bank and with loan of 10 billion US dollars (Chong 2013, 15). As a result, the company was able to sell its products at a competitive price which increased the sales of the company to 4 billion US dollars in 2005; an increase of 85% from the previous year. Over the years, the company has made tremendous progress in the phone market globally. In 2017, Huawei surpassed Apple Inc. Smartphone sales and became the second highest globally, after Samsung. Although the company has a strong market in Europe, its sales in the UK market have been lagging. However, the company has tried to counter the lagging sales by implementing a dual prolonged approach where it targets both the low-end market and the higher end market (Zhu and Jones 2014, p. 22).
1.2. Research Aims and Objectives
The motivation of doing this report is based on the fact that, Huawei sales performance in European countries such as Germany, Italy, and France is very high but records low sales in the UK. Therefore, it is important to understand the factors that affect Huawei sales in the UK to determine the main reasons why Huawei sales in the UK are lower when compared to the volumes sold in other companies in Europe. Such an understanding is crucial as it can provide the needed knowledge of changing market demographic which will help the company in the future. Therefore, the primary objective of this paper is to study the factors that affect the sales of Huawei phone in the based on the following objectives.
• To study the factors that support phone purchase decisions of U.K. consumers when buying a Smartphone
• To study the reasons why UK consumers do not buy Huawei Phones
• To study the effects of competition on phone brand choice in the UK
1.3. Research questions
For this research, the following questions have been formulated:
1. What are the factors that support phone purchase decisions of U.K. consumers when buying a phone?
2. What are the reasons why UK consumers do not prefer Huawei phone?
3. How does competition affect Huawei phone sales in the UK?
The objective of this study is two folds. First, the research aims to study the factors that affect phone sales. Second, the research will study the factors that affect Huawei phone sales with the perspective of the UK. Thus, the target area of the research study has been selected as a Huawei phone in the UK. Previous researches have addressed the factors that affect the consumer purchase decision as well as consumer buying behaviour. Sata (2013) found out that price and phone features were the main factors that motivated the consumer to make phone purchase decision. Effective advertisement has an impact on consumer phone buying behaviour as most customers chose phone brand with which they had an emotional attachment (Abideen & Saleem 2011, p. 22). However, no research has been done on the factors that affect the sale of phones with a particular focus on, Huawei phone in the UK. Thus, the findings of this research will offer an understanding of the factors that influence the sales of Huawei phones in the UK. In addition, it will also help Huawei Company to understand the factors that affect the sales of its phone, particularly in the UK.
CHAPTER 2: Literature Review
Several studies have been done on the factors that affect the phone brand choice, phone purchase decision making and factors that influence consumer on phone buying behaviour. The literature review of this research will be focused on exploring the factors that affect phone sales. To achieve this goal, the chapter will explore different researches that have been done on the factors that influence the performance of phone sales.
2.1. Theoretical perspectives
2.1.1. Phone technology
The development of mobile technologies has advanced in a quick pace in the recent past. Keeping up with the new technology and the latest development is seen as a major method which most of the customers look in a new device. In the past, distinguishing features on the phone was not a major aspect as the mobile devices were primarily used to make phone calls (Cecere, Corrocher & Battaglia 2015, p. 164). However, with the development of a Smartphone, a phone is no longer considered a device to make calls only, but rather an entertainment device. The reason for this is because of the capabilities which the device have especially the interaction with different media content. The Smartphone can perform a range of functions making it a necessity for the techsavy individuals to have. Thus, the features of a phone have become the main element that consumers check before making a purchasing decision.
Karjaluoto et al. (2005) assert that the phone industry is a technology-driven industry, thus, the development of a phone is established based on the possible consumer future needs (65). As such, the company that will be the first to develop the best technological features will have leadership in the industry and in turn boost sales before the features are imitated by rival companies. New technological features were among the main features that have the most impact on the consumer phone choice. Sata (2013) asserts consumers are willing to shift from one brand to another if a brand is perceived as having up-to-date technological features.
In the current extremely competitive mobile market, manufacturers have continually fought to have phones with additional features so as to gain a competitive advantage over the competition. Having differentiating elements is seen as a way of keeping the current customers as well attracting new ones from rivals (Cecere, Corrocher & Battaglia 2015, p. 166). This is the reason phone manufacturers have a variety of phones in their line with different features to attract customers with differing preferences across the market demographics. A consumer’s decision making process is characterized by having a number of choices and looking at the available alternatives (Nagpal & Lyytinen 2013, p. 171). With several phone companies having products with almost similar features, it is the small features which can make the difference. The consumers want to have the information about what to expect from a particular product will be a major factor to attract them to a particular product. Making a good product and not ensuring that the customers have this knowledge is a recipe for failure as most of the customers will rely on information they have about the phone capabilities before making purchasing decisions.
Modern customers look at the different products which match their personality. As more consumers look to have a good and functioning device which makes them feel good they are more likely to purchase those that have the best available technology in the market. Brands that are perceived to offer the latest technology will attract more customers. Qualities which make them feel appreciated in the society will attract more of the technology conscious customers. Technological advances in the phone can be the brand personality which attracts customers to a particular brand (Saif et al. 2012, p. 18). Brand personality is the human characteristics associated with a given product. They are in most cases associated with the self-expressive or symbolic function (Saif et al. 2012, p. 24). Therefore, the phones which evoke a high personality tend to have the best technology and are preferred by customers. It is crucial for a product manufacturer to ensure that they create a proper technology moving product which enhances evokes a sense of personality advancement as they will attract more customers.
A Smartphone is built to utilize a particular operating system which makes it possible to perform myriad number of changes. Those that have better and advanced computing technologies attract more customers as this is a major competitive feature (Simon & Gomez 2005, p. 23). Modern Smartphones have a high resolutions touch screens and this keeps improving with every new product launched by a phone manufacturer. It is the additional features which will attract more customers to a particular phone maker. Those that offer ability for additives will be favored in a market which is obsessed with function (Zhu & Jones 2014, p. 15). The different societies have varying needs which means some of the features will be utilized more in some areas than others. A company should ensure that they understand the different areas and preferences to create a phone which can be useful to different population and age demographics. Marketers need to analyze the behaviour of their consumers in relation to the kind of technology they utilize when making their phones to ensure that it works for the greater number of buyers. Such is important as it can lead to sales related to referrals from satisfied customers. With most customers changing the type of phone they use after a relatively short duration, it will be crucial to ensure that all the new phones have additional features which keep them interested. A consumers’ willingness to make a purchase is related to the response to a given problem and addressing that problem will only improve their chances of buying a given product.
Huawei has worked to reach their current position in Smartphone manufactured by ensuring that they have products which have the latest specifications. Increasing an understanding of the market in the UK is crucial as it will enable the business to create a good and well worked program for continued success. As their features match those of the products in the UK market, it is important to ensure that they check all other factors which attract the customer to the product such as the cost and also the competition. This is an indication that customers look at different aspects in a product before making the decision to purchase. Success in the market will therefore come from looking at different aspects and working to ensure each is addressed accordingly.
The phone industry is characterized by stiff competition with the key players being Apple and Samsung. Other key companies in the phone industry in terms of the volume include Nokia, LG,and Motorola (Nagpal, 2013, p 23). The stiff competition in the phone industry has largely contributed to the emergence of innovative designs and phone features, giving consumers a wide variety of brands to choose from. On the other hand, Simon & Gomez (2005) argue that the level of competitive a firm faces has a positive correlation with consumer satisfaction (16). Furthermore, the authors assert that the competitors’ level of consumer satisfaction has a direct influence on the company’s sales. The most competitive organizations work to create a recognizable brand which is easily recognizable in the market.
The competitive dynamics in the market are responsible for constant changes in the marketing strategies adopted by companies. When the products by a particular brand offer a particular advantage over the others they will attract many customers (Tran 2018, p. 110). Adjusting to what the rivals offer is vital as it leads to a move closer to the customer’s demands. A close analysis of the market will be needed especially the success factors to ensure the company products are not overlooked because they lag behind in terms of the satisfaction they provide to the customers. The high number of providers in the current phone market has created a need for constant changes and adjustments to the market dynamics which creates value for the customers (Simon & Gomez 2005, p. 22).
The market structure and quality of the competition will also determine the strategies adopted and satisfaction of the customers. When a customer can access a product easily and also have supporting infrastructure within reach, they are more likely to choose such products over those of the competitors. Establishing a support system and customer care facility which is near the consumer is vital as it creates a sense of awareness of the needs of the consumer (Saleem & Abideen 2011, 58). Because of the potential problems which could affect the product as the consumer utilizes them it is crucial for a manufacturer to utilize their best strategies for continued success. Strong phone manufacturers with a presence in major markets have an established support structure which keeps their customers satisfied. With a large number of branches and outlets where the customers can reach the product and also get repairs, they will be forced or lured to such products (Saif et al. 2012, p. 18).
Quality of services offered is seen as a major tool for measuring the satisfaction of customers. With the customers looking at the best providers in the market, the Smartphone makers have worked to ensure that they beat the competition in creating the best products and offering the best services (Nagpal & Lyytinen 2013, p. 171). Perceptions are crucial and the company which has a better quality of service will attract more customers. In most of the cases, a whole market or segment can be attracted to a particular phone product because they feel that it meets their needs.
In the mobile industry, the satisfaction of customers on a particular brand means their probability of purchasing from the same company increases. Therefore, a manufacturer of a product will need to create functioning brand so that they can attract more customers to their product. There are many competing factors which will push the customers to the product. If they are familiar with the product form a manufacturer, they are likely to make purchases (Malhotra & Peterson 2006, p. 23). Therefore, the company needs to outdo the efforts by the competition and push their product to exceed the competition. When the product is of higher quality and moves better in the market, it will make it easy to beat the competition. When the product evokes a positive image in the mind of the consumer, they are more likely to make purchases from the same organization.
Brand awareness is crucial to a company and understanding how well the customers understand the product is needed for long term success of the company. The company needs to conduct a proper advertising campaign to ensure that the customers are aware of their brand as this is a major way of attracting new customers for the product. With the list of competitors growing each day, the brands which have an established name will attract more customers. Attention to a product is needed at all the times and this is why the establishment of proper advertising strategies which leads to better access to all potential customers (Malhotra & Peterson 2006, p. 42). Each product in the mobile phone industry competes for a shrinking market which makes it important to have a well coordinated advertising strategy. When the product is recognizable in the market it becomes easy to attract customers. The differences in success of an advertising strategy determine whether customers in one market get the message more than others. Each country’s population has their unique preferences which mean the message needs to be adopted to make sure the customer accepts the products. Ensuring that all primary and the secondary features are well visible to the customer makes it easy for them to make the decision to purchase. The more the customer understands the product makes it easy to make the decision to purchase or refer others to the given product.
While few studies have looked at the behaviour of the customers in relation to the changes made by the competition, it is clear that organizations will require a successful implementation strategy of their marketing campaign and keep innovating to ensure they do not have to play catch up in the market. Customer satisfaction can only be achieved when there is a concerted effort to ensure the terns and structure if the market does not have to play catch up with that of a rival. A firm will need to constantly check the rival competitive strategies and formulate their own methods to counter the moves and keep the customer happy and engaged (Krejcie & Morgan 1970, p. 608).
Each of the strategies Huawei has adopted in the UK market has looked to lure the low cost segment of the market. Their competition has looked to create functional Smartphone with the best features in the market being their strategy for attracting and keeping customers. Each of their strategies should focus on ensuring that their competitors do not have a better product and also keep their segment of the market. Proper advertising of their brand in other markets have helped attract customers. However, the sales seem to be lower in the UK compared to other European countries because they do not have a good and well adapted system for each market. Assuming that what has attracted customers in one market will work in others is wrong and can lead to failure of an organization (Chong, G. (2013, p. 8).
Price, the only component of the marketing mix that produces revenue, is a key aspect in purchase decision making. Tran (2018) argues that a consumer may be attracted by a phone feature, but the price of the phone may alter the purchase decision. Consumers have to make many decisions and analyzing their behaviour needs a close look at what motivates them to choose one product over another. With the growth of the electronic media and the internet the average consumer today makes wide ranging price comparison before making purchasing decision. With the availability of several phone types with almost similar pricing, it is crucial for a company to make the right price adjustments to match the specifications of the product. The main goal of such an action is to create a feeling that the consumer is getting value for money in the product provided.
Alshurideh (2016) asserts that although the type of handset has a considerable impact on consumer choice, the price has a direct impact on consumer choice. With most customers being price conscious, it is vital for the organization to create pricing methods which attract customers to their products. One of the strategies used when pricing by manufacturers is odd pricing. This means that the eventual price will have odd figures. An example is a price like $4.99, a consumer will feel that the price is near four dollars than five dollars. The psychological impact is immense and makes it hard for the consumer to process the even numbers (Krejcie & Morgan 1970, p. 12). A study revealed that price has a psychological impact and should be designed to attract the consumer to a particular product. Making the price appear to be considerably lower is needed as it can be the difference between achieving success and failure in a tight market environment.
As a way to attract the customer to a given product, an organization should ensure that they give the customers some discounts. Promotional pricing is seen as a major way of attracting customers who would like a bargain in the products they purchase. A study revealed that customers are inclined to move towards products which have a promotional aspect in their pricing (Karjaluoto et al. 2005, p. 65). Ensuring that the promotions happen in a frequent manner was seen as way of attracting customers and pushes them to purchase from a given company over another. Companies looking to penetrate new markets utilize this form of pricing to attract customers. It can also be used in cases where the company is losing some of its market share to the competition. Evaluation of available alternatives in the market is a major method in which the consumer uses to make the decisions to purchase a given product (Cecere, Corrocher & Battaglia 2015, p. 168). When a given phone type offers similar functionality and has a promotional price, they will most likely make the purchase.
In most of the cases, the consumer has an expected price which they have in mind as they look to make a purchase. With mobile phones being price sensitive it, is important for the business to ensure that they create a working price for the product. Research indicates that factors such as fit in some times come secondary to the price. When a customer looks at a product, there is a price which they have in mind they expect it to cost (Cecere, Corrocher & Battaglia 2015, p. 170). If the set price is higher their chances of buying are lower, when the price is lower the probability of them making the purchase improves. Therefore, ensuring that the price is comfortable for the target customer base and offers them a perceived value for money is crucial and attracts many customers to the products. Frames which improve the expected benchmark have to ensure they balance the needs of the consumer and those of the organization to keep the business profitable.
In most of the cases, the mobile phones are on offer at a number of locations and a consumer will look to compare the prices in different locations before making the final purchase decision. Many do not make a purchase on the first shop they find but will keep checking until they find one which offers them an optimal price. With some locations charging handling charges and extra prices due to government regulations, the demand fluctuates. This need by an organization to reach a particular segment easily where there is a feeling that the organization has a clear approach and price which meets the demands of the market.
In most of the cases, the type and nature of the market is responsible for creating the needed price. Where a particular phone brand has captured the market, it is important for others to introduce flagship products which match the demands in the society. A speedy response to changes in market movements is needed and helps improve customer ability to choose the phone over that offered by other companies (Chong 2013, p. 5). Huawei in the UK has to utilize a number of strategies to ensure that their product movement matches other European countries. Without a close review of the market to create awareness that the areas they have focused on have not enjoyed the needed growth, it will be hard to meet the market demands. Ensuring that a new pricing strategy is adopted is crucial as it creates a working solution for their business. The reliability of the service they provide and stability of the price is vital as it creates the expected mind set of what their customers expect from their phones. When the price keeps fluctuating the perception among customers will be that the product has a problem and this will push them away from that company. With clear promotional strategies and a stable price, it will be easy to attract more customers to the product which means a clear look at products and markets for the survival of the company in a tough market environment. Each strategy adopted by a business should factor the needs of the consumer as they are the ultimate target (Chong 2013, p. 4). When the product has a proper technology and can meet the expectation of consumers in a tightly changing market environment, it becomes easy to attract and keep customers.
CHAPTER 3: Research Methodology
This section explains the methodological approaches used in the research. Data collection is an important part to the success of a research. The method chosen should help guarantee better results and the making of useful conclusions. The process adopted in conducting the study can have an impact on the research and its ability to make the needed conclusions. The method chosen will help in creating an understanding of the reason customers in the UK do not prefer the Huawei phone. The factors which make the brand not receive the required attention in the market will also be reviewed making it easy to meet demands. The factors which support purchasing among consumers should be closely monitored and analysed to make it possible for adjustments in the market to meet the market demand
According to Malhorta and Perterson (2006) population is the entire objects that a researcher targets, as they have the information the researcher is looking for. This study will use a population of 10,000 people from the UK, mainly in London. Those chosen will be from different age groups and also different economic backgrounds. This will ensure that the results from the research are credible and can be utilized in other areas and studies.
3.2. Sample size
According to Krejcie and Morgan (1970), if the target population is 9,000, then the sample size should be 368. Therefore, since this study targets a population of 10,000, then the sample size for this research will be 409 participants.
3.3. Data collection
To achieve the objective of this research, data will be collected using both secondary and primary data. The secondary data will enhance the understanding of the topic under study by providing relevant background information on the topic under study. The primary data will be collected using two different ways. First, a questionnaire will be issued to phone customers in the UK. Closed-ended questionnaires will be used to guide the research. The choice of closed-ended questionnaire aims at directing the respondents to answer the right questions as stated by the researcher. A Likert scale of 1-5 will be used to test the strength of the respondents’ attitudes towards the questions. Unlike open-ended questionnaires which leave room for the researcher to express his/her ideas, the use of closed-ended questionnaires will ease the analysis process. Secondly, interviews with potential phone customers in the UK will be carried out.
3.4. Data analysis
Data collected will be analyzed using statistical programs such as SPSS. The choice of SPSS was enthused by the high accuracy of testing the relationship between the research variables such as how consumer decisions affect the choice of the mobile phone. A close look at trends in the data generated can help make the right decisions which lead to better conclusions. With tables, it will be possible to simplify the data and create the desired knowledge. Strategies which help understand the differences of the sample group which will be representative of the whole population. The different groups need to utilize a number of strategies which make it possible to meet the needs of the study and make the results credible (Chong 2013, p. 3). The reason is because most studies do not utilize the needed strategies and end up producing the best results.
CHAPTER 4: Results
During the survey a total of 409 questionnaires were distributed to selected individuals in London. Those chosen included sales personnel from major outlets in where customers purchase phones. Their daily interactions give them the advantage of understanding their preferences. A total of 29 participants did not return their questionnaires and thus the study is based on 380 responses. The demographics of those chosen varied and are captured in Table 1 below.
Figure 1: demographics of respondents in the study
Item Frequency Percentage
The respondents who are aged between 26 and 35 as indicated in the table represented the larger number. This age is appropriately chosen because they are likely to have families and responsibilities. Their input is also valued and should guide the phone company on the preferences of this group when it comes to phone ownership. The amount of female respondents was slightly higher than that of males. With52. 6% the female participants exceeded that of men slightly as they had a 47.4%.near balance in the gender is crucial as it will help provide a view which is well representative of those of the community.
In question about the brand of Phone that each of the participants owned there was a clear rift in the types with Apple brand taking a larger share as indicated in table 2 below
Figure 2: Type of mobile phone owned by respondents
Brand Frequency Percentage
Apple 200 52.6
Samsung 80 21.1
Huawei 20 5.2
Other 80 21.1
As indicated the most preferred mobile phone among the respondents in the UK is Apple with 52.6% of the respondents indicating they owned at least one. Huawei is the least preferred as indicated in the table with just 5.2% of the respondents indicating they owned one.
From the survey there was a close look at the different variables which pushed the respondent to choose a particular brand over another. The results are as indicated in the table 3 below
Figure 3: Reasons pushing customers to choose a given phone brand over another
Reason Frequency Percentage
Price 105 27.6
Brand Name 130 34.2
Product Features 80 21.1
After Sales Service 65 17.1
From the results it is clear that brand name of a phone and company has a huge role in attracting customers to a particular type. The most preferred brand is Apple taking up 34.2% of the brands competition. The price as indicated is the next most looked at aspect when purchasing a phone with 27.6% of the respondents indicating they looked at the price as a motivating factor when making the purchase. Product features came in third in the list with 21.1% of the respondents indicating they factored the features before making the decision to purchase a phone. After sale services was also considered by the respondents with 17.1% indicating they wanted a phone whose company could provide them with solutions in case of problems.
The respondents were also asked to indicate the reasons why they did not prefer Huawei phone and the results are indicated in table 4 below
Figure 4: Reasons respondents do not purchase Huawei phones
Reason Frequency Percentage
Did not recognize or want the brand 180 47.4
Lack the features they needed 80 21.1
Lack of after sale services 50 13.2
Price 70 18.3
The largest number of the respondents indicated that they did not recognize or prefer the brand. This represented 47.4 of all the respondents which is an indication that a majority of the people in the UK want little association with Huawei phones. 21.1% indicated that the phones lacked the features which they wanted in a phone. Which means the technology or features they are used to and wanted were not incorporated in the products. 13.2 % of the respondents indicated that they chose other brands because they had a better after sale service which Huawei does not offer in the UK. Only 18.7% of the respondents indicated that the price of the Huawei phones was an issue. This means that customers in the UK are not pushed away by the price of the phones which is an indication that Huawei can capture the market by addressing some of the other concerns about the phone.
CHAPTER 5: Discussion and Analysis
As indicated, a total of 380 participants took part in the study and form the responses most of the respondents were willing to associate themselves with the study. An analysis reveals that in a scale of 1-5 most of the respondents ranged between 4 and 5. This is an indication that the results from the study were their genuine responses and they were willing to be associated with the study. Some were willing to even provide their names and addresses although this was not a requirement for participating in the study. Each of the participants taking part in the study provided their responses in time which made it easy to compile the results. An almost equal number of respondents were chosen from each of the genders to ensure that there was balance and that the results could be used to make conclusions about both of the genders with a high accuracy. The different demographics means that the data results are representative of the different age groups and is cross cutting so that the information generated is not skewed on one direction. With the women and men having similar preferences in terms of the features they want in their phones, the data collected can be utilised for the whole population. Studies have indicated that the preferences for a phone in the different genders could be down to the color and not the special features which it has. Women may prefer a particular colour but it is important to ensure that the specifications match as both genders like similar features in a phone.
From the results, it is clear that a majority of the people in the United Kingdom prefer a particular Brand of a phone. Brand name seems to be the major attracting feature which they look for as they make decisions about which phone to buy. Among the respondents 52.6% indicated that they prefer Apple phones. This means that they are more likely to choose a particular brand because it has a strong brand among the population. Of the respondents, only 5.2% indicated that they owned a Huawei phone which is an indication that the people do not prefer the brand. Sometimes the customer may choose not to purchase a particular brand because they do not have faith in the name of the brand. Creating respect among the customer’s minds is as important because it ensures the product is respected in the market.
The affinity to brand name is crucial to most of the customers in their decision to purchase with 34.2% of the respondents in the survey indicating that the brand type pushed them most towards a particular brand. When the competition has a better brand, it becomes harder for Huawei to make the appropriate number of sales. With each of the competition looking to have a better and well recognised brand in the UK Huawei has lagged behind and this is well captured in the survey. The price was also seen as a major reason most of the respondents chose a particular brand because of the price and not any other reason. With those in the survey being young adults to the older generations, the price of a product is a major source of concern and pushes some of the customer’s away as they make a conscious decision. Technology was also a close aspect which determined whether the customers would purchase a particular product. Although after sale services was also a major reason which pushed some of the participants to make a purchases. With most of the customers feeling that the product is of the right quality the need for after sale services reduces meaning they are willing to take chances on a product by purchasing even when there is little after sale services provided. As a majority of the phone customers look to just purchase a new product when their phone has a problem. When the phone is of a particular brand, they are pushed away from the manufacturer. Therefore, it is important to create a quality product which requires minimal after sale services.
The major reason why most of the customers in the UK do not purchase the Huawei phone brands is because they do not recognise the brand. The competition in the country has created a better network which has made it easier for customers in those locations to choose them over Huawei. As there is an increase in the number of brands in the country from different manufacturers only the participants with a strong competitive edge and can create a string brand will attract the needed market share. The strongest brands are preferred because they have invested in ensuring they meet a myriad of the issues which the modern customer is looking for in a phone. As Huawei continues to grow, they need to match the competition in provision of a quality and reliable phone product which will mean they create a stronger brand in the market. The company look to attract most of the customers through creation of a number of devices which are of a lower price. Although this strategy can work in developing countries the developed world has other preferences and will look for other factors meaning that price is the least of their worries. Making the required product with the needed features will attract most customers even when the price is higher. This is true for most of the technology products which demand that the person with the latest technology is revered although this comes at a higher price. Therefore, each of the actions taken by a manufacture should look to attract the customer to the product creating the best value for money. When each of the departments works to ensure they address customer requirements, it makes it easy for the customer to choose their product over another.
CHAPTER 6: Conclusion & Recommendations
The objective of conducting this study was to look at the factors which push a customer to make a purchase with a case study of Huawei in UK being the major focus. Most of the consumers have indicated that they look at the technology utilised in a phone to make the purchasing decision. The advances in the mobile technology mean that a manufacture has to keep innovating to ensure that their products have the best features as the market demands. A larger number or users make the decision to buy a particular brand because it contains a number of features which they feel work for them and make their use easier or preferable. Creating a system which guarantees that the customer understands the features available in the phone is crucial as it can push the customers towards the product. In most of the cases, lack of knowledge about the features which a particular brand offers the customers. This will enable them to make the choice even before they see the product at the shop. The competition is also responsible for the decisions which the customers make towards purchasing. When the competitor has a superior product, a company will lose some of their customers. This is because they will want a phone with better usability or quality from that offered. The competition could also have a better brand making it important to have a system which ensures that the customers mind is preconditioned to accept products from a given company. This is a major victory which any company looks to have in the market as it makes it easy to attract customers. With most of the companies competing for a similar market, a phone manufacturer who feels that they have an edge in the mind of the customer is in a better position to compete. The price of the product is also a major reason why some customers choose a particular brand over another.
A company should ensure that they create a situation where they can integrate the different aspects of pricing to ensure that the customer feels that they are getting a better deal. Price discounting is also seen as a good way of increasing the number of sales and creation of the needed strategy. When a customer associates a particular brand with proper discounts their decision to purchase a phone increases. As indicated in the results from the study, the competitors in the UK have an advantage over Huawei. The strong brands have created a notion that they are better to the detriment of Huawei in the UK. The huge number of respondents who state they do not recognize or want the brand indicates that Huawei needs to increase their participation in the UK market as it has the potential. This is because the potential customers are not worried about the price as long as the phone meets the specifications they need.
To ensure that Huawei sales in the UK match those in other European countries, it is important to ensure that there are lasting changes. The average customer in the UK wants a phone which meets particular specifications or has the latest technologies. To ensure that their potential customers have a close understanding of the phone, Huawei needs to ensure that they create an advertising strategy which will ensure they remain in the lead. As more of the customers look to have a phone which contains particular features, Huawei needs to ensure that they conduct market surveys and monitor the developments in the industry so that they can create a strategy which works for all their customers. Any new feature which they add should work to add value to the customer and increase the number of sales (Alshurideh 2016, p. 570). Those organisations that have a good knowledge of the different demographics will enjoy the benefits of having an advertising strategy which will lead to success. Ensuring that the product which Huawei pushes into the UK market can match and even exceed those offered by the competition can increase the products visibility and push the customer to like their product.
Huawei has been increasing their market share in the global Smartphone sales and this needs to be experienced in the UK market as well. Therefore, Huawei should carry out periodic surveys of the market to ensure that they respond appropriately to market conditions. The current customer will shift from one phone brand to another when they feel that the one they have does not fulfil a particular need or the competitors brand has better features,. This is why Huawei needs to constantly check their customer preferences and respond accordingly to any moves by the competition. Creating the perfect conditions for success is good as Huawei will have the needed conditions which will push them to success. Determining which combination of features can help their phones become the best in the market is needed (Alshurideh 2016, p. 570). An effective phone will attract customers and make the decision making for them easier.
Huawei should also ensure they improve the reliability and durability of their phones as this can increase the reputation of the brand. The company has captured the market by creating a product which meets the demands of the customers with ease. However, with the customers in UK, it is clear that the factors which push them to make purchases are different and should be addressed. Adjusting the price downwards may not be the only solution but ensuring that the price set offers the customer value for money is the best move (Cecere, Corrocher & Battaglia 2015, p.165). The most popular brands are not cheaply priced indicating that creating a valuable brand image and product is the best move to penetrate the market. Affordability in the technology market is measured in the features which a product contains and those considered to have the best will enjoy higher sales even with a higher price. If Huawei makes the changes it will not just increase their market share in the UK, but also enjoy better success across the world as market response to a good product is universal.
CHAPTER 7: Reflective Account
Undertaking a study to understand the factors which attract a customer to a particular brand has opened my understanding of how markets work. A look at a market closely reveals a number of issues which need to be addressed to ensure that the customer is interested in the product and this can help me help businesses adopt strategies which improve their brand position and visibility in the market. This will be done through offering them knowledge of how the customer thinks and how to attract customers to their products. Each of the participants in the study afforded me the best experience with few challenges experience. Only a handful of the expected 409 participants did not provide their responses but this did not hinder the quality of the research as the remaining amount was considered a good number to draw the needed conclusions. Each of the participants provided reliable and honest data with some offering to provide their name and addresses although this was not a major requirement. Therefore, the results and findings in this study reflect the conditions on the ground and can be used in the future in studies looking at customers and their preferences to particular brands. I have faith in the recommendations made and a company can utilise them accordingly to attract customers. Any exercise helps bring new understanding in a particular field and it is my belief that others will utilise this dissertation to help improve the knowledge in the field. Improving on the study through a focus on a particular aspect can help generate specific knowledge over the reason a customer will choose a phone form a given company over another even when the features are the same. It is my pleasure to present this study and have taken a lot of knowledge which can be utilised in the future during practise.
Alshurideh, M. (2016). Exploring the Main Factors Affecting Consumer Choice of Mobile Phone Service Provider Contracts. International Journal of Communications, Network and System Sciences, 09(12), pp.563-581.
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Zhu, H.D., & Jones, M., (2014). Huawei: An Exemplar for Organizational Change in a Modern Environment. Journal of Information Technology Education: Discussion Cases, 3.
Appendix 1: demographics of respondents in the study
Item Frequency Percentage
Appendix 2: Type of mobile phone owned by respondents
Brand Frequency Percentage
Apple 200 52.6
Samsung 80 21.1
Huawei 20 5.2
Other 80 21.1
Appendix 3: Reasons pushing customers to choose a given phone brand over another
Reason Frequency Percentage
Price 105 27.6
Brand Name 130 34.2
Product Features 80 21.1
After Sales Service 65 17.1
Appendix 4: Reasons respondents do not purchase Huawei phones
Reason Frequency Percentage
Did not recognize or want the brand 180 47.4
Lack the features they needed 80 21.1
Lack of after sale services 50 13.2
Price 70 18.3
RES 320 Final Exam Answers.docx
RES 320 Final Exam ARes 320 Final Exam AnswersRES /320 Final Exam1. Basic research is research that A. Addresses simple issues that are basic, in which research is not really needed. B. Attempts to expand the limits of knowledge for a discipline. . Is conducted to make a decision about a specific real -life problem. D. All of the above.2. When a decision must be made about a specific real-life problem, we would conduct ____ research.3. A Marketing research executive is performing an experiment to determine which of two client ads will draw consumers’ attention better. This is an example of: A. basic research. B. general research C. intuitive research. D. applied research | A |4. Information can be evaluated using which of the following characteristics? A. timeliness B. repeatability C. quality D. All of the above. E. A & C above. | D |5. A company’s private data network, which offers information that is available only inside that organization, is called: A. electronic data interchange (EDI). B. The World Wide Web. C. an Internet. D. an Intranet. E. electronic mail. | D |6. A hypothesis is a proven proposition that asserts the probable answers to research questions. | False |7. Which of the following statements concerning research design is true?A. Research design provides a framework that guides data collection.B. Ideal research design is determined by the research objectives.C. Research design characteristics are indirectly determined by the information needs of the decision maker.D. All of the statements are true. | |8. If the research question were defined as “will buyers purchase more of a product in a blue colored or silver package?” the most appropriate type of research would beA. exploratoryB. descriptiveC. causalD. associativeE. none of the above | |9. The right to privacy is absolute and cannot be waived by anyone under any circumstances. | |10. According to the textbook, which of the following is least likely to be considered unethical?A. A telemarketer selling carpeting begins the telephone sales call by saying he or she is conducting a survey about carpeting.B. A researcher does not tell his or her client that the sampling procedure in the proposal was considered too expensive, so an alternative sampling technique was used.C. Researchers do not tell respondents to a survey sponsoring the survey; that is they maintain a discreet silence about the sponsor of a survey by avoiding the issue.D. The researcher who identifies the most likely prospects for a new photocopying machine passes the names of these people to the sales manager. | |11. When the results of exploratory research are extremely positive, they can take the place of a quantitative research study and save a great deal of money. | |12. In a focus group, the moderator’s job is to prepare a standard set of questions to ask each group member. | |13. The purpose of the case study method is to obtain information from as many similar case situations as possible. | |14. The ideal focus group size isA. less than 5 people.B. 6-10 people.C. approximately 25 people.D. more than 100 people. | |15. Which of the following is an advantage of a depth interview?A. high degree of structureB. valuable insights into motivationC. need for a skilled interviewerD. inexpensiveE. quickly and easily completed. | |16. Secondary data are gathered and recorded by someone prior to (and for purposes other than) the current needs of researchers. | |17. Two major drawbacks of secondary data are determining the accuracy of the data and finding data that fit the specifications of the project. | |18. Secondary data sources can be classified as controllable and uncontrollable. | |19. Which of the following is not a common problem with secondary data?A. outdated informationB. variation in definition of termsC. differing units of measurementD. takes too long to collectE. All of the above are common problems. | |20. Concerning data distributed by media, researchers should be aware thatA. data are copyrighted and thus of limited use.B. they generally refer to product flows through retail outlets.C. data may cover only limited aspects of a topic.D. government regulations severely limit some forms of data.E. all of the above. | |21. When the results of a survey are biased by yea-sayers very agreeable to the interviewer asking questions about a new brand, the survey has auspices bias. | |22. High-cost, low standardization of questioning and limited geographic dispersion are disadvantages characteristic of ______ surveys.A. telephoneB. personal interviewC. mailD. none of the above. | |23. When total error is broken down into two major sources of survey error, they areA. random sampling error and sample selection error.B. random sampling error and administrative error.C. random sampling error and systematic error (bias).D. sample selection error and response bias.E. response bias and non-response error. | |24. The term mystery shopper is a form of scientifically contrived observations. | |25. A distortion of measurement resulting from the cognitive behavior or actions of the witnessing observer is called observer bias. | |26. Although the observation method may be used to describe a wide variety of behaviors, cognitive phenomena such as attitudes, motivations, and preferences cannot be observed. | |27. Observation allows all of the following exceptA. the systematic recording of nonverbal behavior.B. the amplification of the results from other forms of research by providing complementary evidence.C. the gathering of evidence to explain purchase intentions.D. the gathering and recording of what people do or what events take place during a purchase situation. | |28. In direct observation, if the observer is subjective in the recording of what is occurring, the study is said to haveA. systematic bias.B. observer bias.C. demand characteristics.D. human error.E. response latency. | |29. External validity refers to the question of whether the experimental treatment was the sole cause of observed changes in the dependent variable. | |30. Decisions must be made about several basic elements of an experiment. One of these issues isA. selection and measurement of the dependent variable.B. manipulation of the extraneous variable(s).C. control over the dependent variable.D. selection of assignment of extraneous variables.E. all of the above. | |31. If age is expected to influence savings behavior, a savings and loan conducting an experiment may have greater assurance that there are no intersubject differences if subjects in all experimental groups:A. are customers of the savings and loan.B. are assigned randomly to groups.C. are matched in age.D. are given a pretest.E. all of the above. | |32. A ranking task requires that the respondent estimate the magnitude of some characteristic of the stimuli. | |33. The type of scale utilized in marketing research will determine the form of the statistical analysis. | |34. Although reliability is necessary for validity, it is not in itself sufficient to make a measure valid. | |35. A measurement task that requires respondents to estimate the magnitude of a characteristic or quality that a brand, store, or object possesses is known asA. rankingB. ratingC. sortingD. a choice technique | |36. The concept brand loyalty may be operationalized asA. sequences of brands purchased.B. number of different brands purchased.C. amount of brand deliberation.D. all of the above.E. The concept cannot be operationalized. | |37. “Hertz is #1, Avis is #2” implies _____ data.A. nominalB. ordinalC. intervalD. ratioE. The statement implies nothing about data. | |38. The extent to which a measurement is free from random error is a measurement ofA. validity.B. reliability.C. predictive accuracy.D. degrees of freedom.E. systematic validation. | |39. The order of questions in a survey is a potential source of bias. | |40. Managers with experience in marketing research realize that constructing a questionnaire is a fairly simple task. | |41. Which of the following is not an advantage of open-ended questions?A. respondents free to answer whatever they wantB. discovering unanticipated responsesC. “warming up” respondents at the beginning of an interviewD. minimizing interviewer biasE. All of the above are advantages. | |42. Before a questionnaire can be constructed, the researcher must considerA. the analytical techniques and data analysis to be used.B. the communication medium of data collection.C. the type of information needed.D. all of the above.E. none of the above. | |43. The following question: Should Macy’s continue its excellent gift wrapping program? Yes NoA. is a double-barreled question.B. has a built-in assumption.C. is a counterbiasing statement.D. all of the above. | |44. Random sampling errorA. is the difference between a survey that includes only those who responded and a survey that also includes those who failed to respond.B. does not occur in non-probability samples.C. results from the nature of a study’s design and the inappropriate or random administration of the sampling process.D. is a function of sample size.E. is a technical term that applies only to simple random sampling. | |45. When a researcher limits a sample to a group of his or her personal friends in order to minimize non-response error, the sample is referred to asA. an error-free sample.B. a probability sample.C. a personal sample.D. a limited sample.E. a non-probability sample. | |46. If an airline randomly selects 20 of its flights and selects passengers in the odd-numbered seats to participate in a survey,A. the passengers are the primary sampling unit.B. the flights are the primary sampling unit.C. the passengers are the tertiary sampling units.D. the flights are the tertiary sampling units. | |47. A hypothesis is a statement of fact about the nature of the world. | |48. If you wanted to present a great deal of numerical information, you might decide to use a:A. Pie chart.B. Table.C. Descriptive statistical array.D. Line graph.E. Bar chart. | |49. If you wanted to display graphically the relationship of one variable to another, you might use a:A. Pie chart.B. Table.C. Line graph.D. Data matrix.E. Computer program such as SPSS. | |50. Researchers who have strong opinions about the subject of a study are likely to do a better job of conducting the research. | |
ACC 210 Which of the following best describes a data warehouse as described in the chapter?
1. Which of the following best describes a data warehouse as described in the chapter?
a) A repository of historical information from one accounting application
b) A repository of historical information from a set of accounting applications
c) A repository of information from many business applications—some not accounting
d) A repository of information from many businesses in the same industry
2. All of the following are possible uses of AIS or accounting personnel that were discussed in the chapter EXCEPT:
a) Countering terrorism
b) Foiling future accounting scandals
c) Providing assurance services
d) Performing monetary exchanges
3. Justifying expenditures for new technologies is especially difficult because:
a) You do not know how many jobs will be affected
b) Expenses are often recurring and are difficult to estimate
c) Many benefits are intangible and are not easily known or measured
d) Justifying a new technology is no different from any other capital budgeting problem
4. What has been the effect on accountants in those organizations which have computerized their data processing functions?
a) The need for accountants has disappeared
b) The accountants have become "pure" bookkeepers
c) The accountants have become involved in more decision making activities
d) The accountants' decision making activities have drastically declined
5. The principal cause for more timely performance reports in the typical modern organization is due to:
a) Better educated management
b) Adoption of progressive management philosophies which stress participative management (e.g., MBO)
c) Information processing systems
d) Need for less information
6. A good performance measurement system should evaluate:
a) Profitability only
b) Customer satisfaction only
c) All aspects of a unit’s performance subject to control
d) All aspects of a unit’s performance whether controllable or not
7. The term data encryption refers to:
a) Storing data in a safe place called EDGAR
b) Transforming data into secret codes
c) Scrambling data in random ways that cannot be unscrambled
d) Documenting data security techniques
8. All of the following are examples of EDI “documents” EXCEPT:
a) Purchase orders
b) Sales invoices
c) Customs documents
d) Payroll checks
9. The term key in the context of data encryption refers to:
a) A physical key similar to a house key
b) A logical key similar to the primary key of a data file
c) A mathematical function used for encryption purposes
d) A computer function key that can be found on keyboards
10. A proxy server is:
a) A type of computer network often used by companies with many employees
b) An alternate for a company mainframe computer
c) A computer dedicated to company networks
d) A computer dedicated to Internet access and transfers
11. Because Internet software is so convenient to use, many companies also create their own __________________ for internal communications purposes.
d) Domain address
12. Those companies which prefer VANs to the Internet for implementing EDI do so for what main reason?
a) Cost - VANs are cheaper than the Internet
b) Speed - VANs are faster than the Internet
c) Security - VANs are thought to be more secure
d) Convenience - VANs are everywhere
13. The hardware of a computer system includes the computer itself and other devices that help the computer perform its tasks. These “other devices” are commonly also called:
a) Helper equipment
b) IT devices
c) Peripheral equipment
d) Secondary equipment
e) Accessory equipment
14. Time cards, packing slips, reservation screens, and bank deposits screens best describes which of the following?
a) Data transcription
b) Point-of-sale devices
c) Source documents
d) Turnaround documents
e) Data transaction documents
15. Which of the following is the most important reason to use POS systems, OCR systems, or MICR systems?
a) To use the latest information technology
b) To avoid data transcription
c) To create an extra layer of IT infrastructure
d) To decrease dependency on foreign oil
16. A POS device is usually attached to a:
b) Bank check
c) Cash register
e) Computer mouse
17. A portable computing device that enables users to maintain personal data like addresses, appointment calendars, and check registers and that can also include wireless technology and digital cameras:
c) Personal Computer
18. A bar code reader is most likely to be used by which type of system?
a) POS system
b) MICR system
c) Printer/scanner system
d) Fax machine system
19. Three objectives of a company's internal control system should be safeguarding assets, checking the accuracy and reliability of accounting data, and promoting operational efficiency. A fourth objective of a company's internal control system should be:
a) Preventing embezzlement of assets
b) Encouraging adherence to prescribed managerial policies
c) Avoiding the payment of overtime to company employees
d) Revising standards for production costs on a weekly basis
20. Regarding the cost-benefit concept, which of the following statements is true?
a) Every control procedure that offers benefits to a company should be implemented into the company's system
b) An optimal internal control package is developed for a company's system by implementing a standardized package of control procedures
c) A control procedure is considered cost effective if it can be determined that the cost of operating the procedure will be cheaper in the current period compared to the previous period
d) A control procedure is considered cost effective when its anticipated benefits exceed its anticipated costs
21. If the same employee is responsible for authorizing a business transaction and recording the transaction in the accounting records, this indicates a weakness in which element of a company's internal control system?
a) A good audit trail
b) Separation of duties
c) Internal review of controls
d) Competent employees
22. Logical access to the computer system would be best controlled by:
a) Intrusion alarm systems
b) Complex operating systems
c) Restrictions on physical access to online terminals
d) Password codes
23. From the standpoint of computer fraud, which type of controls would probably be of highest importance?
a) Input controls
b) Access controls
c) Output controls
d) Processing controls
24. An apparent error in input data describing an inventory item received was referred back to the originating department for correction. A week later the department complained that the inventory in question was incorrect. Data processing could not easily determine whether or not the item had been processed by the computer. The best control procedure would be:
a) Input edit checks
b) Missing data validity check
c) Transmittal control
d) An error log
25. Software that enables businesses and government agencies to transmit and manipulate financial data on an organization-wide basis best describes:
a) Communication software
b) CAD software
c) Enterprise resource planning (ERP) software
d) Programming software
26. Software used for preparing payrolls, maintaining accounts receivable files, controlling inventory best describes:
a) Communication software
b) Personal productivity software
c) Project management software
d) Accounting software
27. The translation process of converting source code into machine language (object code) is performed by which of the following?
a) Utility program
b) System software
c) ERP (Enterprise Resource Management) software
28. Menus, icons, and other graphical elements are an example of which of the following?
a) Utility programs
b) Personal productivity software
c) Virtual Storage
d) Graphical user interface (GUI)
29. Programs that help users perform such tasks as copying files, converting files from one format to another, compressing files, performing system diagnostics, and building disk directories best describes which of the following?
a) Antivirus software
b) Utility programs
c) Application software
d) Operating system software
30. An intensive investigation of a company's present information system in order to discover systems weaknesses is termed a:
a) Systems study
b) Systems follow up
c) Systems design
d) Systems survey
31. Which of these is NOT a phase in the life cycle of an information system?
32. The four phases of the systems development life cycle end with this phase:
c) Implementation, follow-up, and maintenance
33. Which of the following is least likely to be a member of a study team?
a) CEO of a company
b) Internal auditor or accountant
c) IT specialist
d) Middle-level manager who uses the system
34. Which of these is NOT a general systems goal?
a) Relevant output
b) Cost awareness
c) Flexible structure
d) Higher salaries
35. Which of these comes closest in meaning to the term “systems approach?”
a) Narrow point of view
b) Broad point of view
c) Focus on achieving those goals important to computerized systems
d) Focus first and foremost on computerization
36. Which of these should come first when performing a systems study?
a) Systems analysis
b) Systems design
c) Preliminary investigation
d) Systems development
37. This type of survey instrument best allows employees to answer in their own words:
a) Open-ended questionnaire
b) Closed-ended questionnaire
c) Multiple-choice questionnaire
d) Fill-in-the-blank questionnaire
38. Which of these is NOT a logical procedure that is followed in the systems analysis phase of a systems study?
a) Define the problem(s) in the current system
b) Identify the company's goals
c) Perform a systems survey to acquire information about the current system
d) Generate possible solutions to solve the company's problem(s)
39. Which of the following is NOT a general objective in the design of an information system?
a) A system should provide information which is timely and relevant for decision making by management and operating personnel
b) The output of a system should be highly accurate
c) A system should have sufficient capacity to accommodate levels of normal activity; any additional capacity proves too costly in the long run
d) A system should be as simple as permitted so that its structure and operation can be easily understood and its procedures easily accomplished
e) A system should be flexible to accommodate changes of a reasonable magnitude when required
40. In conducting a feasibility study, operational feasibility refers to whether:
a) A proposed system is attainable given the existing technology
b) A manager can coordinate and control the activities of the systems department
c) An adequate computer site exists for the proposed system
d) The proposed system will produce economic benefits which exceed the costs
e) The system will be used effectively within the operating environment of an organization
41. A simple diagram that shows estimated completion times versus actual completion times for the various activities in a systems implementation project is a(n):
a) E-R diagram
b) PERT chart
c) Gantt chart
d) Data flow diagram
42. Documentation includes:
a) All flowcharts, narratives, and other written communications associated with the information system
b) All written communications associated with an accounting information system except flowcharts and data flow diagrams
c) All flowcharts, narratives, and other written communications associated with an accounting information system, except for program flowcharts, decision tables, and pseudocode
d) Flowcharts and data flow diagrams only
43. When an individual prepares a document flowchart, the names of the various organizational departments involved in the accounting information system should be listed:
a) Along the right hand margin of the flowchart
b) Along the left hand margin of the flowchart
c) In the title of the flowchart
d) In the column headings of the flowchart
44. Most system flowcharting symbols:
a) Have not been standardized
b) Have been standardized by the Society of System Analysts
c) Have been standardized by the National Bureau of Standards
d) Are unique to the organization that uses them
45. Data flow diagrams:
a) Accomplish the same purpose as system flowcharts
b) Are different from system flowcharts since they focus on a logical view of the information system
c) Are useless for planning a new system
d) Are never used in analyzing an existing system
46. All of these are levels of a data flow diagram EXCEPT:
a) Physical data flow diagram
b) Process diagram
c) Context diagram
d) Logical data flow diagram
47. Which of the following is NOT an advantage of decision tables?
a) They document the logic of the computer program
b) They show the order in which data conditions are tested and/or processing actions are taken
c) They increase computer programmer productivity
d) They summarize the data processing tasks to be performed for a large number of data conditions in a compact format
48. The basic unit of information on a computer file of accounting data is a(n):
a) Inventory part number
b) Data field
c) Computer record
49. The data item which uniquely identifies a computer record in an AIS database table is called the:
a) Pointer address
b) Primary record key
c) Employee number
d) Header label
e) Sort field
50. This item creates relationships by linking the data in one file (e.g., customer) to an item in a second file (e.g., a sales order):
a) Foreign key
b) Data dictionary
c) Relationships link bit
d) Index file
51. The reason why database designers normalize data is:
a) To eliminate data errors
b) To scale data properly
c) To create backup copies of data
d) To create efficient database tables
52. You are defining a database table. Which of the following best explains why you would assign a Social Security number field as a text field?
a) The field will not be manipulated mathematically
b) This is the default data type for most DBMS table fields
c) The field is too long to define as a numerical field
d) You plan to use this field as a primary key, which must therefore be a text field
53. You are defining a database table. Which of these data types would be best for the product code of an inventory table?
54. According to the text, which of these statements is most accurate?
a) Most computer abuse is performed as retaliation against employers
b) Very little computer crime is committed for personal gain
c) Some computer abuse is performed simply to meet a challenge
d) We catch most computer abusers with good accounting controls
55. The best explanation for the absence of complete information on computer crime would be:
a) Abuse is handled as an internal matter
b) Hesitant disclosure of abuse due to embarrassment
c) Documentation of abuses hasn’t caught up with actual abuses
d) Most computer crime is not caught
56. One of the major crimes identified by the Computer Fraud and Abuse Act of 1986 is intent to illegally obtain information or tangible property through the use of computers. Which of the following methods might accomplish this type of crime if the perpetrator can change data before, during, or after they are entered into a computer system?:
a) Salami technique
b) Data diddling
c) Shoulder surfing
d) Trojan horse program
57. In thwarting computer abuse, which of the following is true?:
a) It is not important to enlist the support of top management
b) Many IT managers do not think computer abuse is very important
c) Computer crime mostly means controlling computer hardware
d) Most computer crime happens because of a failure of controls, not an absence of controls
58. Probably the most important federal legislation governing activities involving computers is:
a) CAN-SPAM Act of 2003
b) Federal Privacy Act of 1974
c) Computer Fraud and Abuse Act of 1986
d) Cyber Security Act of 1987
59. Which of the following is probably the primary reason accountants should be concerned about computer crime and abuse?
a) They might lose their job if they don’t detect computer crime or abuse in their organization
b) They might lose their professional credibility and license if computer crime or abuse continues for a long time in their organization and they do not detect it
c) They are responsible for designing, implementing, and monitoring the control procedures for AISs
d) all of the above are equally important
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information Captured with UNISA Study Guide = 80%
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