Prestige As a Factor of Consumer Choice (in the Case of the Smartphone Market in Russia)

The main objective of the research is to estimate the prestige factor impact on consumer choice in the smartphone market in Russia. To achieve the objective of the research there was conducted an analysis of the researches, dedicated to the factor of prestige, as well as the review of the current situation in the market and in the scientific literature. An online survey that covered a sample of 286 respondents was conducted, and a number of factors was collected, given the prestige factor influencing a respondent’s consumer choice. For the three categories of smartphones (Apple; Samsung; other brands) there were built logistic regression models and calculatedthe marginal effects of the influence factors on consumer choice probability to have a specific smartphone brand. Additional models estimation for both brand loyal and disloyal consumers is produced. TInterpretation of the six models results is presented and a number of recommendations for policy in the field of branded lifestyle products is given. A significant prestige factor of models for Apple customers and other models was found. The higher the prestige level of the respondent in relation to the average level in the sample is, the greater is the likelihood that the respondent will own a smartphone of the apple brand and the lower is the probability that he/she will own a smartphone of other brands (as a model for other brands).