1. 1 Infinite Loop Cupertino, CA 95014, (408) 996-1010
2016
Consumer Behavior
Final Project
Saad
APPLE
Think Different
Steve Jobs
Submitted to: DR. Haroon Rasheed
Submitted By: SaadShahzad (12046005-005)
NomanZafar (12046005-043)
Anus Latif (12046005-113)
Date of Submission: 28/1/2016
Section:B
Semster:Fall 2015
3. Abstract
This Project report of consumer behavior is based on the learning, knowledge and practical
implementation of the concepts studied in the class. This report contains detail analysis of Apple
Brand and product IPhone. Since IPhone is a leading innovative brand in the market and people
buy it a lot. So we have chosen Apple to be our product. In this report we will be applying STP
model, SWOT Analysis, PESTLE Analysis, 4Ps, Availability of Apple IPhone and Porter Five
Model. We will also be discussing about Consumer Motivation, Perception, Learning and
Attitude. First of all in this report we will be giving introduction and background of the company
Apple. The print ad campaigns of Apple will also be analyzed in this report and in the end
conclusion and recommendations will be given.
4. Chapter 1
Introduction & Background
Apple Inc. is an American multinational corporation that designs and manufactures consumer
electronics and computer software products. The company best known hardware products
include Macintosh computers, IPODS and IPhones, Tablet and Apple Smart watches. Apple
consumer software includes OS X and IOS operating, ITunes media player, Safari web browser
and iLife and iWork creativity and productive suits.
Apple was founded by Steve Jobs, Steve Wozniak and Roland Wayne on April1, 1976 to
develop and sell personal computers. It was incorporated as Apple Computer, Inc. on January 3,
1977 and was renamed as Apple Inc.
In 1976, Steve Jobs and Steve Wozniak designed the first of its computer called Apple 1, it had
to wait until 1977, as the consumer were not interested about Apple, but when Apple 2 was first
presented at a local computer trade show in US it was the only computer which had a computer
case and was well presented with color graphics, this brought great change in the market as the
customer started ordering Apple 2 and the demand increased in impressive way. Then Apple disk
2 came into the market which was the cheapest user friendly floppy drive has taken the sales of
Apple to a higher level. By 1980 Apple 3 entered the market and this was the time when Apple
started to sell computers in other countries.
All the products that Apple has launched from the first computer to IPhone 6s lead the market
with its own mark of satisfying consumers in electronic market.
Apple is the world largest information technology company by revenue, the world largest
technology company by total assets and the world’s second largest mobile phone manufacturers.
Apple is one of the top leaders in the consumer electronics market as it produces a wide variety
of consumer electronics.
On November 25, 2014 in addition to being the largest public traded corporation in the world by
market capitalization, Apple became the first company to be valued at over US$700 Billion. The
company employee full time 115,000 as of July 2015 and maintains 453 retail stores in sixteen
countries as of March 2015.
Company enjoys a high level of brand loyalty and according to 2014 edition of the inter brand
best global brand report, is the world most valuable brand with a valuation of $118.9 billion.
Apple strategy can be stated as the most simplest, on the target and intelligent. It has always
proved itself by thinking different from the whole lot group in bringing up innovative and user
friendly products. Apple products are so much imaginative, creative and outstanding that it drags
all the potential consumers to buy its products.
5. Chapter 2
SWOT Analysis
Apple IPhone 6
STRENGHTS
Brand Equity-
Apple is one of top most countries of the world for its brand equity; form the days of
Macintosh computers, Apple is known to be brand with promise.
Tag of Innovation-
Besides the brand equity, the tag of innovation has always been applied to Apple. Form
IPod to IPhone to IPad Apple has been responsible for many technological revolutions.
Consumer Loyalty-
An Apple loyal customer will proudly proclaim in front of the whole world that he is an
APPLE guy. The brand loyalty of Apple IPhone can be compared with the Harley
Davidson brand loyalists.
Amazing Software and OS-
IOS which is the operating system of Apple IPhone is a respected mobile platform
because of its flexibility and speed. The user interface is fantastic, and one you use an
iPhone, you get addicted to its ease of use.
Strong Financial Position
Apple’s financial performance is one of the best among many companies. It also
possesses higher gross profit margin than its main competitors which is equal to 43.9
percent and no debt as well.
Strong Marketing and Advertisings Teams
Marketing is one of the strongest functional areas Apple has. They create compelling
advertisements to attract more mass into their pricier products.
WEAKNESSES
High Price
With such brand equity, you are bound to target the A grade segment itself. But even
then, the Apple IPhone is costlier as compared to Samsung phones which offer similar
features.
Restriction on Phone
There are unnecessary restrictions on the Apple IPhone out of the box. There is no
Bluetooth, expandable memory is absent, and battery is non-removable battery. With
such a high priced phone you expect more features from the phone.
No Variety
Apple IPhone design is very consistent which a plus point is. But at the same time, there
is a large population which continuously changes phones. They don’t get the variety that
they expect from Apple IPhone. This can be a reason that customers switch to other
brands. The variety and features offered are very high in a brand like Samsung.
6. Patents Copyrights
Apple Company is often blamed by other companies to disobeying their patents and also
it has lost some trials as well. Such type of things can damage Apple’s reputation in
market.
Profit Margin
In tech industry, Apple’s gross profit margin is highest but according to fear of
forecasters that Apple’s current margin will not be continued due to increasing in prices
and tough competition.
Defects of New Products
Few faults have been detected in some of the iPod and iPhone. This has disturbed the
sales and firm’s reputation of superior products performance.
OPPURTUNITES
Market Potential of Smartphones
Smart phones are the rage nowadays and the market is not going to get smaller. Thus the
large market of potential customers is there for the taking for a brand like Apple.
High Demands of Product
There is a market demand of iPad mini and iPhone 6s. This will add value to the
competitive advantage.
ITV Launch
Apple TV sales will be increased by the launch of iTV which will release soon.
Growth in Communication Device Market
This is an excellent opportunity for the company to expand the shares in the market of
tablet and smartphones.
Strong Growth of Mobile Advertising Market
Apple has introduced iAd advertising platform with which advertisements will be catered
to Apple iPhone, iPad and iPod with one touch.
THREATS
Rapid Technology
Rapid technological change is the biggest threat which Apple and its competitors are
experiencing now days. As customers are become more technology lover and they want
more and more new products in very short time due to this, companies are facing
pressure. So competition is very high and the one who cannot remain themselves with
rivalry shortly be unsuccessful.
Samsung
Samsung is the only one who provides application processors to Apple and it has asked to
pay higher price for it. It should be asked Apple to pay more because there are no feasible
substitutes who could provide Apple to application processors.
Apple IOS
The main competitor of iOS is Android OS in mobile market. The power of Apple iOS
can be dominated by Android OS.
Online Music
Availability of wide range of music stores like Wal-Mart, Amazon and online music
companies like sound cloud and spotify will threat for Apple music store.
7. PESTLE Analysis
Political Factor
There are many problems which cannot be controlled by company geopolitical, uncertainties,
war against terrorism which can affect the sale of Apple products worldwide. As to reduce the
operating cost Apple has outsourced in different countries like Ireland, China, Korea and Czech
Republic. If these countries face any political instability or any problem which causes to delay in
manufacturing operations will lead to spoil Apple Likeness in the eye of consumer and its
dealers.
Economic Factor
Purchasing power depends upon world economic condition. According to past few years
unemployment rate is very high in many countries which are the cause of decrease in sale of
Apple products. Another reason was increase in oil prices which causes inflation in world’s
economy. As a result of these economic factors, purchasing power of people reduced which
negatively affected the sale of Apple products due to its higher price. But now world’s economic
conditions are getting better and company has purchased itself foreign currencies, so Apple
revenue has increased in the global market.
Social Factors
Two factors always have been on forefront of Apple product throughout the history, the design
and the quality. The purchasing of luxury products have gone up because the purchasing power
of consumers has risen in different market across the world and people prefer to buy iPod,
iPhones and latest technology iPad. As music industry growth has increased which is the biggest
social influence on Apple because the main essential music store is iTunes. Therefore, Apple has
gained so much from social factors because it’s defining an individual’s modern lifestyle.
Technological Factor
Apple always takes advantage because of its innovative and high technologies products. The
large amount has invested in research and development field by Apple, that’s the reason Apple
comes in top of the new innovative products.
Legal Factor
Apple Inc. has been a participant in various legal proceedings and claims since it begin its
operations. In 2009 Nokia sued Apple for Apple’s infringement of Nokia Patents relating to
Wireless Technology. Apple has been in number of cases with its competitors like Samsung and
HTC.
Environmental Factors
Apple’s commitment to the environment includes properly disposing of its electronic equipment
at the end of its useful life. Its responsibly recycle your computer and displays. They are also
approaching to use entirely renewable sources such as solar, wind, hydro and geothermal.
8. Chapter 3
STP Model
Apple IPHONE 6
Market Segmentation
Apple main basis for the iPhone segmentation include behavioral and psychographic.
They are segmented into those who want to use the phone for self-expression,
convenience and also those consumers who are geared toward the technological
capabilities of an iPhone. Apple is able to capture these segments and markets the iPhone
to satisfy all of these benefits. Behavioral segmentation also ties in with that of the
loyalty status that Apple has been able to achieve with their most loyal customers being
referred to as “I Sheep” for unquestioningly following apple. Apple geographic
segmentation involves retail stores in all highly populated cities around the world and 88
official country websites, therefore allowing for a global presence, though mainly
metropolitan.
Target Market
The iPhone is generally targeted to almost every demographic, its ability to customize the
applications to suit your needs and interests made it desirable to all genders, ages,
ethnicities, occupations and financial statuses. The iPhone 6 and iPhone 6+ are the first
iPhone’s to be marketed differently, in regards to the buyer’s social/professional working
needs. IPhone user’s and Apple fan boys, as they are called fit into a very wide and
diversified group of people. The demographic of iPhone’s or the iPhone 6 in particular
relate to the overall education and income of the person the most,
Market Positioning
Apple products, including the iPhone 6 are carefully positioned in order to allow
customers to migrate up the product chain. As new products are released, such as the
iPhone 6, features are updated and technology advances, positioning in consumers’ minds
that apple is at the forefront of innovation. It has become an essential lifestyle product
although it still keeps that luxurious consumer product value through its higher price,
therefore appealing to a wealthier and high socio-demographic market, and allowing for
consumers to position it in such a way. Therefore it’s positioned to appeal emotionally
and both functionally to consumers as it is often marketed presenting features that can be
used in order to achieve day to day challenges.
Availability of Apple IPhone 6
As we know even it seems there is only one model that is iPhone 6 but there is lot of variety in
iPhone 6 and 6+
Memory Color Available
16 GB Gold, Space grey, silver AT&T,T mobile, Sprint
32 GB Gold, Space grey, silver AT&T,T mobile, Sprint
64 GB Gold, Space grey, silver AT&T,T mobile, Sprint
128 GB Gold, Space grey, silver AT&T,T mobile, Sprint
9. A look at the wait times and availability of the iPhone 6 and iPhone 6 Plus shows the 5.5-inch 6
Plus still in limited supply and supplies of the 64-GB capacity in either model are extremely
constrained. When Apple released the iPhone 6 and iPhone 6 plus on Sept. 19, it was another
typical Apple success story. Lines formed around the corner at Apple stores, preorders were sold
out, and consumers scrambled to find the coveted device. When the dust settled, Apple reported
that it shattered records and sold over 10 million iPhone 6 and iPhone 6 Plus units during the first
weekend of sales, its biggest and fastest launch to date. Now, more than a month after its release,
while availability has improved somewhat, the phones are still in short supply on some models,
especially iPhone 6 Plus and 64-GB iPhone 6 models. The websites of the three major carriers
give insight as to the current availability and wait times. Verizon is showing wait times of 3-4
weeks on the iPhone 6 16-GB and 64-GB models, while the 128-GB is readily available in two
colors. iPhone 6 Plus models are all back-ordered 2-4 weeks, with the 64-GB models all having
the longest wait of almost a month, with the 128-GB models available sooner. AT&T shows a
similar story, with the iPhone 6 showing similar wait times as Verizon, and all iPhone 6 plus
models with wait times of a month to 5 weeks. Over at Sprint, the 16-GB and 128-GB models
show a wait time of just 2-5 days, whereas the 64-GB model has a 2-4 week delay. On the
iPhone 6 Plus, the 16-GB model has just a 2-5 day delay, but the other models have up to a 4-6
week wait time, including all the 64-GB models and the 128-GB Space Gray version. The I
Stock now retail availability tracker we told you about recently shows the 64 GB iPhone 6 in
short supply in Apple retail stores across the country, as well as at Radio Shack, Best Buy, and
Target, which it also tracks. The 16-GB and 128-GB versions are readily available. As far as the
iPhone 6 Plus, however, while the 16-GB and 128-GB models are in very short supply but
sporadically available in some regions, the 64 GB is almost impossible to find across the entire
country, with no models whatsoever available for either Sprint, AT&T, or T-Mobile.
Local market (Pakistan)
Now if we talk about local market as we are living in Lahore I will specifically mention about
the most focused market that is hafeez center. Availability of iPhone 6 is limited as compared to
the other brands for some certain reason. IPhone is already stable in market is respect of brand
image whenever they launch the product they start with very high price with respect to other
brand and they always pretty sure about their price that people are going to buy their product by
forgetting about high price just because they position their self in the customers mind.
IPhone is used by middle upper and upper class because of its high price.iphone6 is available in
the market but you can say every retailer has a limited stock of iPhone 6 because its high in price
and it is asked by the customers very often because few will come to buy. and they can’t afford
to have many iPhone just to avoid the fear of losing market share later on in this case they have
to bear the loss.
We cannot say that it is lack of availability in local market its just we can say that it has
appropriate demand and supply limited customers and limited supply we simply can say
optimum supply demand. As we know there is no official store of iPhone in Pakistan so retailer
or mini iPhone or unofficial store deals with it, so every iPhone seller have stock according to the
demand.
10. Michael Porter Five Competitive Forces
1) Intensity of rivalry within the industry
The first force of five forces of Michael Porter’s model is intensity on rivalry with in the
industry. The Apple Company has done a great job by providing technical support,
creating customer loyalty and producing products. It maintains its productivity without
ever marking down a product by generating superior products from Android phones, rival
tablets and E-Readers gaining market share with lower prices.
2) Bargaining Power of Supplier
Bargaining power of suppliers can make the profits down of Apple by indicating high
prices for supplies. Thus, the company looking for new suppliers because there is no
doubt that Apple Company is still growing. The company allows new suppliers to reduce
the bargaining power of suppliers by registering online on the Apple’s website. As a
result of this Apple can decrease their bargaining power through more competitive among
large number of suppliers.
3) The Bargaining power of Buyer
The Apple Company should meet the expectations of their customers in order to achieve
the majority shares of market by different segments which come from educational level,
age and income. One another thing is that buyers are more prices sensitive and they can
switch to another retailer if the products are not differentiated. Google provides the
competition in overall Smartphone and tablet market because Blackberry manufacturer
(RIM), who was considered as a market leader of Smartphone, now, has only 1 percent of
the American market. Apple holds around 75% of profit in industry so the chances of
Apple’s customer to switch another brand are very less because of its strong brand
loyalty. Whereas, competition is very high now days and competing companies trying to
attract new customers because this has been done by picking off RIM again, climb of
Nokia and Android’s rise.
11. 4) Threat of New Entrance
Entering more companies in the market means decreasing the market share of Apple.
Company can maintain the market share and generate profit through differentiation of
brand and product as well as making strong marketing strategy like competitive
advantage. As a new company it becomes very difficult to compete with a company like
Apple which has a strong brand image, innovation, perceived value and good customer
services.
5) Threat of Substitute Product
If the need of consumers is same then the product can be substituted otherwise not.
Therefore, threat of substitute might have two factors (price and performance) which
allows customer to switch the product as well as willingness of buyers to switch. Threat
of substitute can be reduced as much as buyers become loyal to the products. No
company can present an “ecosystem” which has created by Apple. People buy iPhone for
standard, apps and other Apple’s product for upgradeability and stability which gives
customer the ability to transfer knowledge and apps among devices.
Buyer Behavior
Apple consumers are brand loyal and prefer purchasing Apple products in every category
it exists. Demographically, consumers of both genders aged 15 and above, with an
income category of middle-level and above are the target customers of Apple. Initially, it
was targeted for creative professionals like musicians, artists, editors, photographers, etc,
but later consumers of every profession purchased it. People who have interest in
technology do not mind paying extra for better quality and experience belong to the target
market of Apple. The number of users buying Apple products is increasing, and the
number of people switching from Apple to its competitors is very less. The steady growth
can be seen as the market share of Apple in the third quarter of 2006 was 6.2% and it
moved up to 8.1% during the same quarter of 2007. Moreover, Market Share of Apple is
10% overall when combined with the iPhone users in the year 2009.
4Ps of Marketing
Apple IPhone
PRODUCT
Portables Computers – including Mac products such as Mac Book Pro, IMac, MacBook
Air and Mac Mini.
Servers – Including Xserve, Xsan, MacOS X ser.
Accessories – Including Magic Mouse, Keyboard, Led Cinema Display.
Wi-Fi Based Stations – including Airport Express, Airport Extreme, Time Capsule
IPod – Including IPod Shuffle, IPod Nano, IPod Classic
IPhone – IPhone 3GS, IPhone 4, IPhone 4S, IPhone 5 & 5S, IPhone 6 & 6 Plus, IPhone
6S & 6S Plus
ITunes – Including movies, TV shows, audio books, games.
12. PRICE
Apple is a premium brand computer that does not attempt to compete on price. The
company has reduced prices after some initial product launches. It uses skimming and
premium pricing strategies.
The Apple iPad is priced at a minimum of $499.
The Apple iPhone costs begin at $99.
The Apple iPod Classic is priced starting at $249.
The Apple iPod Nano costs $149.
The Apple Mac Book costs $999.
The Apple MacBook Pro is priced at $1199.
The Apple QuickTime Pro for Windows costs $29.99
Apples iPad pricing strategy includes the flexibility to lower the prices if consumer
response dictates such action. This would be consistent with a similar $200 price cut on
the iPhone in 2007.
In 2009 Apple announced a reduced cost pricing structure for iTunes – songs will cost 69
cents, 99 cents or $1.29. He said the “vast majority” of the songs will cost 69 cents.
Changes are said to be a response to a slower pace of music downloads
PLACE
IPhone is present across many countries and nations and is known to provide an excellent
service backup in all these countries. The target of Apple IPhone is premium customers,
hence it is found in A grade cities only.
IPhone has named its retail counter as I store keeping in line with the complete product
line of Apple which starts with I resulting in an immediate personal connect with the
customer. These I stores of Apple are found in malls and premium areas in premium
cities across the complete country wide network.
All modern retail outlets are distributed the IPhone through a carrying and forwarding
agent. On the other hand, individual retailers are given the product through distributors.
Finally, the I stores which are the exclusive showrooms, are given the product directly
from the company at best discounts.
Apple has over 200 retail stores worldwide including the US, UK and Canada. Apple
recently opened a new retail store in Shanghai China.
PROMOTION
Apple, Inc. offers special discounts on refurbished Macintosh computers, iPod Nanos,
and the 8GB iPod Touch. In each case a 1 year warranty is included on the all products.
Apple, Inc. authorized Training Centers are located throughout the U.S. each provides
instruction in Mac systems, Mac OS X, and Apple’s professional applications. A wide
range of certification exams and courses offer innovative learning opportunities for IT
and creative professionals, educators, and service technicians—delivered exclusively by
Apple Certified Trainers.
13. The Apple Consultants Network website provides a search tool allowing visitors to locate
nearby certified Mac product consultants in the U.S, Canada, and a number of
international locations.
The online Apple Store offers free shipping for orders over $50.
The online Apple store offers iTunes gift cards.
Apple provides a $100 rebate when you purchase a Mac or specific printers from the
online store.
Apple has packaged back-to-school offers, including some aimed at college students.
Apple as a brand has many loyal customers, and it also maintains a relationship with
them through CRM. Apple sends weekly newsletters to subscribers related to their
products.
Advertising Tools
Apple Inc. is well known for its advertising and marketing campaigns and has won several
awards for them. The most influential and well known advertisement is the introduction of Apple
advertisement during the Super Bowl in 1984. The commercial was designed by Chiat/Day and
directed by the director of Blade Runner, Ridley Scott (Friedman, 1997). The commercial was
run once in the whole lifetime, and it created a huge impact on the consumers. The commercial
was to target the PC’s introduced in 1970’s which were considered as tools doing specific tasks.
Apple wanted to introduce the philosophy of ‘empowerment’ and with the commercial; it was
successful to do so. In 1985, the Lemmings ad was introduced and it was not so successful, and it
offended many people. Therefore, Scullery chose not to continue with Chiat/Day, and moved the
marketing strategy towards more conventional advertisements. The advertisements focused more
on the price and features of the product and rarely on the brand image. Since then Apple was
destroyed as a brand image and had spent billions of dollars on advertising which went waste.
Later, in 1997 Steve Jobs, joined the company back and reduced the number of projects under
research and development. He did this so that, the department could provide greater
concentration on projects. Also, he simplified the Apple product line which overlapped. The
rebranding started when three advertising agencies presented new ideas to Steve Jobs. Out of the
three, Jobs liked the slogan and the appeal presented by Lee Clow: ‘Think Different’. Jobs took
full interest in the marketing campaign and reviewed each version after every step with the staff
of Chiat/Day. The environment was computer based and the entire campaign was prepared in a
span of 17 days after approval. The campaign included billboards and television commercials for
major markets of America like New York and Los Angeles. Even images of celebrities like Joan
Baez and Yoko Ono were used. Since Job’s knew them, he could approach them as a friend. The
entire ad campaign had a poem written by the copywriter of Chiat/Day, Craig Tanimoto, and
read by Richard Dreyfus. Moreover, during the entire campaign, none of the Apple products will
be displayed in the advertisements. Figure 2 shows an advertisement used in the campaign.
14. Consumer Motivation
Motivations have many constraints it is basically a driving force with in individual that impels
them to action. Peoples use to identify their internal unfilled demands needs and wants. How
people motivated internally or externally to buy the iPhone 6 for some very specified reasons.
Social status
Eliminate the risk of virus
Innovation
Design
IOS
There are many other factor that actually stimulate a customer to buy the product above
mentioned list are the technologies are image created by brand that influence consumer in
positive way to buy their product but on the back hand there are many other factor that actually
stimulate consumer to buy iPhone for example
Consumer & Social Factors
The first sub variable would be families, friends and colleagues as they strongly contribute to a
person's choice of mobile phone. This includes interaction with various membership, reference,
and organizations. A person often buys an item because it fulfills the desire to be acknowledged
for it by family, peers and other people he is related to or affiliated with. Another social factor
that impacts buying the iPhone is peer pressure; the consumer buys the handset because everyone
else is getting it and talking about it. Buyer behavior is strongly influenced by the member of a
family. The consumers also tend to perceive that they can get more reliable products and guides
when following the majority because significant information is readily available in various
venues. From forums discussing the various iPhone concerns to first-hand experiences of
families, friends and colleagues, social and consumer forces contribute strongly to the purchase
of an iPhone. The second sub variable we'll be looking into would be the reference group.
Reference groups have potential in forming a person attitude or behavior, Reference groups also
include opinion leader (a person who influences other because of his special skill, knowledge or
other characteristics). The reference group has a great impact on the consumer behavior because
reference group are the one who serves as a point of comparison for an individual in the
formation of either general or specific values, attitudes, or behavior. You bring your reference
group with you for the following reasons: To get information or advice, to satisfy the
expectations of others and to be like a certain type of admired person a consumer identifies with
and wants to join.
Personal factors
Personal factor specifically involve the age group. The way iPhone targeted the marketed their
product was quiet productive because they define their product in a way that it is made for every
person of any age. So when people find their self-comfortable with the product because product
satisfy the need s of every person is also motivation factor for them. If we talk about social
media sites like Facebook whats-App, viber etc. these are the basic application provided by
iPhone and there are lot of examples and lot of application provided in their app store that is a
15. motivation factor for the consumer. In view of current trends of the Apple iPhone, it inevitably
had become a lifestyle with a fashion statement. Lifestyle indeed is a notably sub-variable for the
Personal factor. Personal factors thus resulting to successful and impressive high brand recall to
Apple's iPhone. With the high brand recall for Apple, it further leads to the creation of brand
awareness. The creation of brand awareness is the main foundation of any product's life cycle in
target markets. In fact, brand awareness has influence on buying behavior of a buyer.
Psychological Factors
Psychological factors are the intrinsic nature within the consumers, based on past experiences
and collective knowledge, which influences their decision to act and purchase a product. The
psychological factors are further categorized into the individual's motivations, perceptions, and
beliefs and attitudes.
Consumer learning
A process by which people gather and interpret information about products and services and use
this information/knowledge in buying patterns and consumption behavior. Consumer learning
provides customers the in depth training about the product.
People gather information about the product through many ways for example
Internet
Friends & family
Reference group
These are the major factor of consumer learning. Advertisement also plays an important role in
consumer learning because the company always tries to teach their consumers about the product
as well as new specified functions of the product.
This is an example of consumer learning. This is iPhone 6s has a very innovative function that is
3d view. They highlighted this function in their ads to teach the consumer about their innovative
function this is how consumer learns from the company and by their advertisement.
We can call this learning process as a phase and in this phase consumer learn about the product
and think about the whether he should go for that product or not.
16. Consumer’s Attitude Formation
A composite of three elements, cognitive information, affective information, and information
concerning consumers past behaviors and future intention.
Cognitive information
Consumer decision-making consists of cognitive processes including interpretation, integration
of knowledge, and retrieval of product knowledge from stored memory used in the integration
process. Apple occupies a certain cognition based on the company creating a context for their
products focused on developing an eye-catching, simple design, and ease of use for complex
technologies resulting in significant benefits for the consumer. Apple also positions each product
emphasizing its innovations and communicating differentiated benefits to its consumers
effectively.
Cognitive information is integration of knowledge and retrieval of past experience if someone
had an experience of using apple brand he will do analysis personally to do the evaluation for the
next purchase this is one factor. Secondly if someone with in reference group or through any
social media consumer just gathers information and would come to the conclusion and will make
purchase by evaluating all the factors.
Affective Information
Consumers also hold certain feelings toward brands or other objects. Sometime these feelings are
based on the beliefs for example( taking about iPhone some people mention this problem that
they are unable to use Bluetooth are to connect with windows laptop or any other android phone
with their iPhone and in this way they missed many of the files or other data they needed at that
moment. But many of the people think on this situation that it is good not to connect with any
other device except IOS certified software just to eliminate the risk of virus).this is how
17. consumer perceive and are affected by the information provided them and they personally
evaluate according to their own thinking.
Behavioral Intentions
The behavioral intention is what the consumer plans to do with respect to the object (e.g., buy or
not buy the brand). As with affect, this is sometimes a logical consequence of beliefs (or affect),
but may sometimes reflect other circumstances. Sometime people do not want to buy the iPhone
but they buy just to maintain their social status or they are influenced by someone or through
indirect enforcement of social circle.in this way they evaluate the entire factor to make a single
purchase.
Latest Ads Campaigns of Apple
1. Apple iPhone 7 will be Crazy Thin with No 3.5mm Headphone Jack
Apple has been reducing the thickness of its iPhone almost every year. The sleek and
stylish phones are trending nowadays. Over the years, due to the increasing thinness of
the iPhone, the headphone port which is 3.5mm has become almost as thick as the device.
The question now arises whether Apple will ever consider reducing the thickness of the
headphone port too. A new report answers the same question we have been wondering
about. The answer is yes! The Apple team is thinking exactly the same. A reliable
Japanese blog, Macotakara reports that Apple is ready to remove its mainstream 3.5mm
headphone jack in the upcoming iPhone 7. In the new device, the entire thickness will
reduce by nearly 1mm. iPhone 6S, which is the latest phone from the company, is already
very thin. The idea of reducing the upcoming phone by another millimeter is quite
18. fascinating. But the problem is that, with already very thin devices, is there any need to
reduce the thickness? Apple will now want support from headphone vendors to make
adopters. The new adopters will allow the traditional headphones to be connected to the
phone’s lightning connector. Or, simply they would make wired-headphones with
Lightning connectors. The manufacturers have yet not produced wired-headphones, but
current iPhones support the innovation. Apple is also rumored to build a new pair of its
own new Ear Pods that connect via Lightning. They will ship with the new iPhones most
likely. The new idea from the company is probably the most inconvenient decision ever
taken by the Cupertino giant if true. It will be a headache to buy accessories separately
because Apple has decided to exclude the port from the device. And, those who want to
use some specific headphones or earphones with their device have to stop thinking about
that option too. We all will have to wait until the official confirmation from Apple. And,
if the news is right then we have some clues about the upcoming iPhone 7.
2. IPhone 7 comes with IOS 9
We’ve been seeing Apple’s next iOS 9 edition, codenamed Monarch, pop up here and
there, indicating that the team from Cupertino is hard at work ironing out the eventual
new features and stability improvements, like with all annual iOS editions, for a release
sometime around the WWDC conference .A recent major tip about what would iOS 9
stand for, hinted that it won’t be as much the new features, which are usually the focus,
but rather speed, optimization and stability this time. Apple made major changes to iOS
an edition ago, completely redrawing the interface, and adding features galore, after all.
This is only natural, since the mobile OS did recently undergo a major design overhaul
and got many new features, which some people even found unnecessary and too
cluttering. To combat this, Apple will undoubtedly push a lot of optimizations in the next
update, so there shouldn’t be a lot of new features in iOS 9. This, however, does not stop
Apple fans from dreaming and one Youtuber in particular, has just released a very
19. beautifully executed video of various iOS features he would like to see in the upcoming
update.
Conclusion
Apple Inc. is a leading multination corporation in the technology industry. Though the company
faces stiff competition from IBM, HP, and Dell, Samsung its business strategies have always put
it on top. The company is currently enjoying an added competitive advantage in the technology
industry following the successful plunge in to both the music and phone industry. Apple is
usually the first company to come out with a new product line before anyone else. This is very
risky but it seems to be working to Apples advantage. Although the iPhone 6 is considerably
bigger than the iPhone 5S, Apple has done a good job not making it feel so. As such, this feels
like the natural successor to the older smartphone and a worthy upgrade - it's faster and the
bigger screen really works, making the previous model look a little old fashioned. Overall, the
iPhone 6 may not have the highest specifications, but as we've said before you can't read too
much from specs alone, as it's the overall quality that counts. In these terms, the iPhone 6 is the
best smartphone that Apple has ever made. Its sharp and clear screen is brilliant, and IOS 8
neatly uses the most of the extra resolution. Then, there's the lightning-fast processor, combined
with the slickest and smoothest OS, giving a brilliant user experience. To top it all off, you know
that this phone will automatically get the next version of iOS on the day of release. Apples
product line has grown rapidly in the past few years. We are selling products in the following
categories; input devices, output devices, storage devices, computers, and connecting devices.
For more detail on our products read the section titles hardware and software.
Recommendation
Apple can use its strong brand image and rapid innovation processes to successfully develop and
launch new product lines. However, the firm faces the significant threats of aggressive
competition and imitation, which are major challenges affecting players in the industry. Apple
should lower its cost of production by maintaining same quality standards. Apple can or should
promote their ITunes Application by providing customers in the loyalty program ten dollar worth
of ITunes service for every $250 they spend. This type of Customer Relationship Management
would definitely increase customer satisfaction while promoting Apple’s Product. Continuous
innovation in their product like IPhone 7 will increase the chance of brand loyalty. Apple should
explore various retail channels to maximize sales potential and minimize risks in growing
markets. They can or should pursue minimal yet efficient product and price differentiation to
make product range more attractive in emerging markets.
Reference
http://www.marketingteacher.com/apple-swot/
http://www.marketing91.com/swot-analysis-apple-iphone/
http://www.apple.com/
https://en.wikipedia.org/wiki/Apple_Inc.
