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The paper “ Factors That Affect the Consumers Selection of a Mobile Phone Plan, the Use of Statistical Methods May Not Show the Real Values" is an informative example of a term paper on marketing. The use of mobile phones has become a necessity for the majority of people in the modern world. Most companies in the telecommunication industry compete on the cell phone type and service plan, there has been increased competition in the selling of mobile phone plans. The producers try to match each mobile phone features with that service plan that would be attractive to the consumer and thus help them reduce competition against their opponent company.

All these have left the consumer in a tough spot as he/she has to face the choice selection of the best option that will give him/her maximum satisfaction. In this project, I interviewed three potential consumers on their preferred cell phone plan against the selection criteria and also on their view of the importance of the evaluating criteria, the main objective is to evaluate the consumer’ s true preference against his preference when calculated by the compensatory decision rule.

The other purpose of the research was to use a theoretical perspective to try and explain the difference between the above features and their effects on consumer preference. To start with I created a decision matrix, using six randomly selected latest makes of mobile phones and their plan options and also eight consumers selective criteria namely warranty, operation system, camera quality, size, total plan cost, ease of use, color and storage size and presented it to three potential consumers who were to rate them on a scale of between one to five their most preferred option.

These same consumers were then also required to rate between a scale of up to 100 the importance of these selection criteria to them. The results are presented in the table below. Decision matrix   CONSUMER PERCEPTION EVALUATIVE CRITERIA BLACKBERRY BOLD 9900 FOR $ 500 AND THE $ 30 /MONTH POSTPAID PLAN iPhone 4S FOR $ 650 AND THE $ 35/ MONTH PREPAID PLAN NOKIA LUMIA 800 FOR $ 480 AND THE $ 35/ MONTH PLAN PREPAID PLAN DORO PHONE EASY 610 FOR $ 150 AND THE $ 30/ MONTH POSTPAID PLAN SAMSUNG GALAXY 11 FOR $ 560 AND THE $ 35/ MONTH PREPAID PLAN SONY EXPERIA S FOR $ 290 AND THE $ 30/ MONTH POSTPAID CAMERA QUALITY 4 2 3 5 4 3 OPERATING SYSTEM 5 4 1 1 3 2 PLAN 2 3 1 3 4 5 TOTAL COST             Color 1 5 4 2 5 3 EASE OF USE 1 2 5 4 3 3 SIZE 4 5 2 1 2 4 STORAGE SIZE 2 2 1 2 4 2 WARRANTY 3 4 3 2 5 3 KEY: 1= V.

POOR, 2= POOR, 3= AVERAGE, 4= GOOD, 5= EXCELLENT. THE IMPORTANCE OF THE EVALUATIVE CRITERIA TO THE THREE BUYERS EVALUATIVE CRITERIA PERSONA PERSON B PERSON C CAMERA QUALITY 20 30 15 OPERATING SYSTEM 70 50 90 TOTAL PLAN COST 30 60 70 COLOR 10 15 10 EASE OF USE 90 80 80 SIZE 60 20 30 STORAGE SIZE 60 50 70 WARRANTY 30 10 20 OUT OF 100 POINTS EACH Application of compensatory decision rule The compensatory rule was used to calculate the preferences of the three consumers based on their decision matrix.

This compensatory decision rule, which is a statistical analysis method, states that the brand which will rate the highest in accordance to the total sum of the judgment of the consumer on the relevant criteria of evaluation will be chosen. This formula can be written mathematically as; Rb = ∑ ni=1 WI BIb Where; Rb is the overall rating of the brand b, Wiis the weight attached to that evaluating criteria, Bib is the evaluation of brand b on evaluation criterion I andN is the number of evaluation criteriaUsing this rule for each individual to calculate their preferred mobile phone and plan option, we find that; For person ABlackberry = 20(4) + 70(5) + 30(2) + 10(1) + 90(1) +60(4) + 60(2) + 30(3)= 1040 iPhone =20(2) + 70(4) + 30(3) + 10(5) + 90(2) + 60(5) + 60(2) + 30(4)=1180 Nokia = 20(3) + 70(1) + 30(1) + 10(4) + 90(5) +60(2) + 60(1) + 30(3)= 920 Doro = 20(5) + 70(1) + 30(3) + 10(2) + 90(4) +60(1) + 60(2) + 30(2)= 880 Samsung = 20(4) + 70(3) + 30(4) + 10(5) + 90(3) +60(2) + 60(4) + 30(5)= 1240 Sony Ericson = 20(3) + 70(2) + 30(5) + 10(3) + 90(3) +60(4) + 60(2) + 30(3)= 1100 From these calculations person A will most likely prefer Samsung galaxy 11 for $ 560 and the $ 35/ month prepaid plan. For Person B Black berry = 30(4) + 50(5) + 60(2) + 15(1) + 80(1) +20(4) + 50(2) +10(3)= 795 Iphone =30(2) + 50(4) + 60(3) + 15(5) + 80(2) + 20(5) + 50(2) + 10(4)=815 Nokia = 30(3) + 50(1) + 60(1) + 15(4) + 80(5) +20(2) + 50(1) + 10(3)= 780 Doro = 30(5) + 50(1) + 60(3) + 15(2) + 80(4) +20(1) + 50(2) + 10(2)= 830 Samsung = 30(4) + 50(3) + 60(4) + 15(5) + 80(3) +20(2) + 50(4) + 10(5)= 1115 Sony Ericson = 30(3) + 50(2) + 60(5) + 15(3) + 80(3) +20(4) + 50(2) + 10(3)= 1310 From the compensatory decision rule, person B will choose Sony Experian s for $ 290 and the $ 30/ month postpaid because it is the one that rates highest.

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