Paper Example Doctorate 9,235 words

Attracting Customers to Purchase Apple

Last reviewed: July 30, 2010 ~47 min read

¶ … Attracting Customers to Purchase Apple Products

Investigating the reasons as to why individuals purchase Apple Inc. products.

What attracts customers to purchase Apple products?

The IT industry is the driver of change, but its own change impacts itself as well. Incremental levels of competition force the IT&C manufacturers and vendors to also focus on issues outside product quality. A question is being as such posed relative to the elements which generate the sale of Apple products, particularly the reasons as to why customers buy the respective items. The starting point in the analysis is constituted by a general look at the elements which drive customer purchase decisions, which is then followed by a complex analysis. It is finally concluded that the reasons for purchasing Apple items vary across individuals and groups and include elements such as brand strength, product quality or peer pressure. The recommendations constructed based on the analysis refer to increases in the Apple consumer base by developing and implementing strategies which attract more price sensitive consumers, older consumers and more technical buyers.

Table of contents

Chapter 1

Introduction 3

Chapter 2

Literature review 5

2.1. History of the buying behavior 5

2.2. Individuality in the purchase decision & #8230;6

2.3. The social and cultural environments 7

2.4. The decision making unit (DMU) 8

2.5. The purchase decision within the IT&S industry 10

Chapter 3

Methodology 11

3.1. Methodology 11

3.2. The questionnaire 16

3.3 The research samples 20

a) Apple Inc. 20

b) The research sample 21

Chapter 4

Data analysis and discussion 21

4.1. The qualitative analysis 21

4.2. The quantitative analysis 23

Chapter 5

Concluding remarks 31

5.1. Conclusions 31

5.2. Recommendations 33

5.3. Significance and relevance of the study 35

5.4. Questions for future research & #8230;36

References 39

Chapter 1

Introduction

The IT community is more often than not the promoter of change within the modern day society. Information Technology and Communications impacts all dimensions of life, from the way one prepares a meal to the means in which one conducts their professional responsibilities. And the technological applications are no longer confined within the boundaries of one country, but -- through the forces of globalization -- they have come to be present in all global regions.

One of the direct results of this globalization of information technology was the intensification of competition within the IT industry. Firms are now more than ever focused on creating innovative applications to enhance the quality of human life. The higher levels of competition within the IT industry -- just like higher levels of competition within other industries -- have materialized in a series of consumer benefits. For once, clients were presented with a wider selection of IT products and services from which to choose those that best served their needs. Secondly, in order to face the competitive threat, companies were forced to implement lower retail prices which generated the consumer benefit of more affordable and more easily accessible IT products and services. Third, the IT sector was continually innovative as companies developed newer and better products in order to remain competitive.

Aside however the technical features of the IT industry, consumers are also attracted by a series of other business strategies and decisions, such as implementation of marketing strategies -- promotional sales, discount prices and so on -- but also the development of a strong Customer Relationship Management which increases the customers' loyalty to the firm.

In this context, Apple Inc. is recognized as a reputable IT manufacturer, which has managed to consolidate and increase its customer market. Aside the innovations, Apple is also known for its focus on customer satisfaction. Given this understanding of Apple, a question is being posed relative to the reasons as to why individuals choose to purchase the company's products. In other words, the purpose of this study is that of identifying what attracts customers to purchase Apple products?

In answering this question, several study objectives are set, as follows:

To analyze the impact of the Apple products onto customers

To identify the features of Apple which best satisfy the customers

To identify which elements sit at the basis of the decision to purchase an apple product

To identify the role of the community in the purchase decision

The above objectives represent in essence the research questions. The significance of the study is a dual one, with importance for both practitioners as well as academicians. The study is structured as follows: literature review, methodology, data analysis and discussion and, finally, concluding remarks.

Chapter 2

2. Literature review

2.1. History of the buying behavior

Before launching the actual discussion as presented in the specialized literature, it is necessary to offer a starting point in the analysis. This is constituted by the following hypothesis: the purchase decision with customers is given by a combination of elements such as necessity, product features and social pressures.

The reasons as to why individuals decide in favor of purchasing or not an item are various and complex and the topic has constituted an increasing area of interest throughout the past years. In 2004 for instance Bob Kimball and Jerold Hall mentioned that the business community had undergone a series of social, economic, political and technological changes, and that these changes had impacted the purchase decision of customers. In other words, the very study of the purchase motivation needs to go beyond the traditionally assumed questions. In the very words of the authors, "in the new world of business, with its focus on partnerships and relationships, we need to take a different perspective on what motivates prospects to make an affirmative buying decision. We need to go far beyond traditional benefits and value, far beyond the basic closing skills and techniques" (Kimball and Hall, 2004).

Throughout the 1940s and 1950s decades, the decision to purchase would be influenced solely by the necessity to use the respective item. And the context was a world in which technology was barely existent, production efficiencies were minimal, competition was inexistent and the focus on customer satisfaction was not even created as a concept. At this stage, the companies manufactured whatever items they could and then sold them to individuals.

During the 1960s decade however, a major modification occurred within the industry and it materialized in higher levels of competition, which subsequently forced manufacturers to focus more on customer information. The actions were generally recognized as being market oriented and they primarily revolved around the identification of the target market and of its needs and demands. Afterwards, the company would produce and sell those respective items required by the customers (Kimball and Hall, 2004). From that point on, the manufacturers and vendors would focus incrementally on customer satisfaction.

2.2. Individuality in the purchase decision

James L. Burrow and Jim Bosiljevac (2008) argue that at the basis of the purchase decision stand a multitude of factors, but the authors believe that the two most important factors of the decision are the individual characteristics of the buyers and the socio-cultural environment in which they live. The individual characteristics are given by the elements of one's identity, specifically:

Personality

Gender

Ethnicity and Race.

The personality of the individual encompasses the emotions, attitudes, life style and behavior, all which impact the decision to purchase an item. In terms of genders, researchers have also here observed differences not only in the products and services purchased by males and females, but also in terms of the nature and type of the respective products and services.

The ethnicity of a person impacts the purchase decision to a varying degree, based on the individuality of the customer and the values of his community. While not an ethnicity, a relevant example how a community can influence a purchase decision is observed within the Amish community, where most consumer goods are frowned upon and where the necessary commodities are self produced or grown. Finally, the age of the consumer influences the type of products they would be purchasing, such as medicines instead of dippers. The age of the consumer is a great part of the marketing strategies and the differentiation is easily observable at the levels of commercials, television shows, magazines and so on addressed to a specific age group (Burrow and Bosiljevac, 2008).

2.3. The social and cultural environments

As before, the relevant example of how a culture can impact the purchase decision is given by the Amish community. Aside from this particular community however, the culture represents the means in which families are organized, the habits of the individuals, the chains of authority and so on. Within some communities for instance, the purchase decision is predominantly -- or even exclusively -- taken by the males of the family. Within other communities however, the decision is taken by mutual agreement between genders, or the decisions are divided based on household responsibilities, such as the woman will decide on the purchase of the dishwasher whereas the man will decide upon the purchase of the automobile. Finally, in a third category of communities, an incremental emphasis is being placed on the early integration of the youth within the purchase decision.

Due to the forces of globalization and modernization, the role of culture within the purchase decision is becoming less and less intense, but the role of the society is increasing. At this level, the decision to purchase is greatly influenced by the reference group, or the organization or team with which the individual identifies or to which he wishes to belong. In order to gain the acceptance of the respective group or to feel himself as integrated within the group, the individual will purchase those items which allow him to meet the expectations and goals of the reference group (Borrow and Bosiljevac, 2008).

2.4. The decision making unit (DMU)

The concept of the decision making unit is explained by Ray Wright's (2004) Business to business marketing: a step-by-step guide, in which the author reveals the mechanisms behind the decision making process. The decision making unit is understood as the series of elements and persons who participate and influence the purchasing decision. In his own words, "the DMU […] is a way of describing all the people that might or might not be involved in some way in the ultimate decision to buy the product" (Wright, 2004).

Wright argues that the decision making unit integrates a total of six roles, which can all be assumed by one single person or by several individuals. These six functions are:

The suggester

The purchaser

The advisor

The decision maker

The end user

The gatekeeper

a) The suggester is the person who initiates the purchasing process by identifying a necessity for a respective product or service and suggesting its acquisition.

b) The purchaser is the person who actually completes the purchase, but he might easily be different from the other persons. The actual role of the purchaser varies based on the power to actually decide -- as opposed to the possibility of him only being delegated to complete the acquisition -- but also based on the access he has to information.

c) The advisor is someone outside the vendor or the prospective buyer who is brought in -- especially by the buyer -- to offer his objective opinion. Within the organizational context, this advisor could be a consultant, whereas within the private field, it could be a simple friend or a family member.

d) The decision maker is the very person with the power to complete a purchase.

e) The end user is the person who will actually use the product considered for purchase. The end user can have a varying power, from the complete power to make the purchase to the lack of power and the situation in which he is only presented with the already purchased item. The role of the end user in the purchase decision is ultimately given by the features of the community in which the decision is made -- the organizational context or the family context for instance -- but in most cases, the end user has the ability to at least influence the final purchase decision.

f) Finally, the "gatekeepers control access and information into and out of the buying group. In some cases the gatekeeper can actively influence a buying decision by filtering the kind of information made available" (Wright, 2004). Within the organizational context, this role is mostly obvious in secretarial positions, but it can also be observed at the personal level from the part of a friend, a family member or even the vendor.

2.5. The purchase decision within the IT&S industry

While they are also integrated within the overall category of consumers, the buyers of Information Technology and Communications appliances are differentiated by varying values, such as the search for technological innovation as prestige and social statement, rather than actual necessity. Regardless of the elements which differentiate the IT&C consumers, fact remains that some sources in the specialized literature have indeed paid attention to them. P.J. Louis (2002) for instance, in the book Telecom management crash course: managing and selling Telecom products and services, argues that the IT&C products of today are extremely similar and all able to meet customer needs through high quality standards. This virtually means that the actual functionality and quality is no longer a major component of the purchase decision. From Louis's standpoint then, the decision to make an IT&C purchase is given by a combination of the following factors:

The price of the respective product or service -- the price remains the number one determinant of the purchase act

The ease of using the product or service

The levels of professionalism on the part of the staff members

In cases when the payment is more complex and handled by bill or by installments, a crucial element in the purchase decision is given by the buyer's ability to understand the payment scheme (Louis, 2002).

Chapter 3

3. Methodology

Throughout this section, the research project is focused onto three distinct directions -- (1) the explanation of the onion ring methodology to be used; (2) the construction of the questionnaire to be addressed to the Apple consumers; and (3) the selection and description of the research samples.

3.1. Methodology

The methodology used in the current research is that of the onion ring. This method is generally less popular that other research tools and techniques, but it is complex and reliable, despite the limitation of implying often tedious work. In order to better understand the study, it is at this point necessary to explain the methodology. In a most simplistic formulation, the onion ring research methodology refers to a complex research process, observable at different layers. Just like the onion, the research process is complex and to get to the next layer -- or research level -- one has to peel the current layer -- or complete the current research level.

The research onion is best revealed in the picture below:

Source: Pearson

In short; I would peel research onion at every layer.

1. In regard to research philosophies, the positivist approach has been selected.

2. The data collection processes would be completed through a deductive approach.

3. Surveys are used to gathered primary information in the form of quantitative input.

4. Single quantitative data technique and the memo method will also be used.

5. Due to time constraints, the research would be conducted in a cross-section method, and the interviews would be held during week-end or after work hours.

6. Snowball sampling is also to be used and this would materialize in the sending of the questionnaire to people in Dublin, the United States and China in order to get a more accurate sense of consumer behavior.

The following paragraphs offer more details about the methodology. At the core of the research process stands the collection and analysis of the data, which will be completed through the tools and techniques considered most suitable to a particular research endeavor. However, until this point of the research process is reached, it is necessary for the exterior layers to the addressed:

a) The research philosophy

There are generally two categories of recognized research philosophies. The first is entitled positivism and the second is called phenomenology. The positivist philosophy assesses phenomena within the business -- or otherwise -- community with objectivity. It looks at numeric evidence and it leads to findings which can be generalized to explain the entire community. The phenomenological approach on the other hand believes that a certain situation -- such as the purchase of Apple products in this case -- is a complex phenomenon, influenced by a series of non-measurable elements. From this standpoint, the phenomenological approach states that the laws of economic, social, political or otherwise behavior cannot be integrated in theories (Oriesek, 2004).

The current research uses a combination of the two methods in order to reveal the numeric findings as well as the impact of human behavior. Since the decision to purchase the Apple products is subjective and based on the particularities of each individual, it is as such assumed that the integration of all consumer behaviors within the expected theories is not sustainable, nor relevant.

b) The approaches to research

The research approaches can be either inductive or deductive. In terms of the inductive research methodology -- which is the one used in this research endeavor -- the researcher observes a phenomenon or a situation and -- based on the observation -- formulates his findings. In terms of the deductive methodology -- often referred to as scientific research -- the research processes commences with a theory, which is broken down into testable hypotheses. The scope of the research is then that of collecting data in order to test the validity of the initial theory (Oriesek, 2004).

c) The research strategies

The research strategy is selected based on the decisions which have already been made at the levels of research philosophy and research approaches. From this standpoint then, a combination of research strategies is desirable. On the one hand, the research would be constructed on the phenomenological observation of the customers deciding to purchase Apple products. On the other hand, it will also use a technical survey which will collect objective information to be then analyzed and compared.

d) The research choices

As with all internal layers of the research onion, the choices in the research project are influenced by the decisions which have already been made at the previous levels. In this order of ideas, the choice at this particular level is that of using a combination of research methods.

e) Time horizons

Regarding the time horizons, these refer specifically to the time considerations involved in the completion of the study. There are two types of research as identified based on the time horizons -- cross section and longitudinal. This research paper uses the cross section approach as it is concentrated on a short duration of time, during which several problem components are identified. The longitudinal approach on the other hand would involve a longer span of the research project and a focus directed towards a limited number of issues (Oriesek, 2004).

f) Data collection and analysis techniques and procedures

At the core of the onion research stand the data collection and analysis tools and techniques. Based on the decisions already implemented, it becomes clear that the approach to data collection and processing has to be a dual one. From this standpoint then, the information on the customers' decision to purchase Apple products would be collected and processed through the use of qualitative and quantitative measures. The qualitative research methodology implies the integration of the researcher within the research community and its direct observation. The scope is that of understanding the mechanisms which drive consumer behavior. In the particular case of this research, the qualitative research would be completed through direct interaction with the Apple customers within the Apple stores; conversations with them, as well as online interactions within the forums dealing with Apple products.

The qualitative research has the main disadvantage of relying solely on human behavior, which subsequently introduces the elements of bias and subjectivity. Given this situation, the results retrieved through qualitative research are only applicable at the level of the limited sample researched, not at the level of the entire consumers' community.

The quantitative research comes to reduce these limitations by gathering and processing numeric information. At this level, the qualitative data gathering process would be constituted by the construction and issuing of a questionnaire. The questionnaire would be handed in within Apple stores, as well as within the virtual community. In order to stimulate client participation, negotiations will be commenced with Apple in order for the company to offer rewards, such as discounts or an Apple product to be won -- through a drawing of lots -- by one of the survey respondents.

The usage of the qualitative method implies additional work, complex and tedious. Yet, it reveals the benefit of retrieving results which are objective and which can be extrapolated to explain the behavior of the entire consumers' community. In other words, the triangulation -- or the processes of combining qualitative and quantitative methods -- increases the relevance of the study results as it reduces the limitations of the two research methodologies taken separately.

3.2. The questionnaire

The questionnaire is constructed on a set of three types of questions. The first set of questions (I) identifies the particular characteristics of the respondents, with purposes of distinguishing the various categories of Apple buyers and supporting the future analysis of the information retrieved. The second set of questions (II) integrates several multiple choice questions to which the customers are requested to answer by selecting one of the available answering possibilities. Finally, throughout the third section of questions (III), the respondents are asked to answer a few untypical questions, and by untypical it is understood not unrelated questions, but in a less typical format of a questionnaire.

I. Question 1: Please state the age category to which you belong:

(a) Between 16 and 20

(b) Between 20 and 30

(d) Over 40

Question 2: Please select the occupation category to which you belong

(a) Student / pupil

(b) Out of school and unemployed

(d) White collar

Question 3: Please indicate the last school you graduated.

(a) Less than high school

(b) High school

(d) Masters, doctoral or higher

II. Question 4: What was the last purchase you made from Apple?

(a) A Mac Book

(b) An iPhone

(d) Another (iLife, Apple home cinema system, Mac OS and so on)

Question 5: What role do your previous experiences play in your purchase decision making?

(a) A tremendous role as I make my purchase decisions based on past experiences

(b) A medium role in the meaning that I do consider my previous experiences with the Apple products and the company, but they are not a decisive factor

(c) I consider each purchase unique and I do not as such impose the rules of the past experiences upon the new purchases.

Question 6: Do your peers own Apple products and do you feel a certain social pressure to also own these items?

(a) Yes, most of my peers own Apple products and I must also buy them

(b) Some of my peers own Apple products, but the impact of this state of events on my purchase decision is limited

Question 7: Most hi-tech products are available in large stores, which sell competitive and complementary merchandise from various manufacturers. The Apple products are not however present in these stores, but they are sold in the company's own locations. How do you feel about this aspect of Apple Inc.

(a) Strongly positive as the staff members are better able to offer specific input about the products and this possibility is often limited within one stop hi-tech stores.

(b) Strongly negative as the stores are spread across the country and it might be difficult to locate one and get there

Question 8: To what extent do you buy products from these stores because of the Apple image and brand?

(a) To a large extent. Apple is fashionable and trendy

(b) To a medium extent. I make my purchase decisions based on several criteria, the Apple brand being one of them.

Question 9: Does the product diversity at Apple stimulate your purchase decision?

(a) Yes, to a great extent. Apple manufactures and sells virtually any product you need.

(b) No, it does not. I purchase the items I need regardless of what Apple sells.

Question 9: To what extent would you say that information gathering has helped you make the decision to purchase an Apple product?

(a) To a high extent

(b) To a medium extent

Question 10: Most hi-tech companies today outsource the customer service operations to more cost effective regions, which offer customer service via telephone. Apple has not implemented such a strategy but it offers customer services within the United States. Does this element impact you decision when considering the purchase of an Apple product? How?

(a) Yes, my decision is balanced in favor of a purchase because Apple is socially responsible and creates jobs within the United States

(b) Yes, my decision is directed in a positive purchase direction as I have had previous positive experience with in store customer service

Question 11: Recently, Apple has been faced with severe criticism for the signal loss of its new iPhone 4. After this mistake, would you continue to purchase Apple items and still have trust in their quality?

(a) Yes, definitely. Apple is a great firm and one mistake does not represent their demise

(b) No, I will not continue to purchase their items because they should have been able to identify the problem and not cause so much distress

III. Question 12: Is the decision to purchase an Apple product influenced by other parties, and if so how? (Example: by a parent as he is the one making the actual payment)

Question 13: Would you please assign a coefficient of importance to the following reasons which determine you to purchase an Apple product:

(a) The high quality of the products

(b) The high quality of the customer service experience

(d) The fashion label associated with the Apple products

(e) The past experiences with the Apple products and the firm itself

(f) The Apple stores characteristics

(g) The innovative style of the firm and its products

(h) The easiness of use

(i) The fancy design, including packaging

(j) Promotions and other marketing strategies of Apple

(k) The influence of the peer group

(l) Reviews and opinions from other Apple buyers

3.3 The research samples

The sample section is divided into two sub-categories -- (1) introductory information about the Apple Inc. organization with the purpose of familiarizing the audience with the company implicated in the study; and (2) the description of the first and second research samples.

a) Apple Inc.

Apple Inc. was founded in 1976 by Steve Jobs and Steve Wozniack

It was incorporated in 2007 and it is headquartered in Cupertino, California

It activates in the IT&C industry, manufacturing and distributing items such as computers hardware and software and various electronic appliances

Apple closed fiscal year 2009 with profits of $8.24 billion, following an ascendant trend (Apple Inc. Website, 2010).

b) The research sample

While it is generally non-traditional to integrate two research samples within the same research endeavor, this necessity is given by the distinct particularities of the current research endeavor. For instance, the research methodology is a dual one and the two distinct methods need to be applied to samples which best serve their needs.

The qualitative research methodology implies direct interactions and observations of the community. This means that the process is slow and inefficient; in order to serve the purposes of both relevance of results as well as efficiency of work, the sample has to be sufficiently small size but also sufficiently large size. Given this necessity, the adequate size of the first research sample -- for the qualitative analysis -- is established at 70 Apple Inc. customers.

The first research sample would as such be constructed so that it meets the following requirements:

They own at least five Apple products so that they are able to identify particular features of the Apple products

They have been loyal Apple consumers for at least five years so that they have a strong relationship with the firm which is not influenced by one time bias, but rather supported throughout the duration of several years

They are culturally, religiously and otherwise diverse in order to reduce the potential cultural or otherwise bias

They are mostly males, but only because men are more interested in IT products than women. This is generally because they are more fascinated by IT applications, but also because they are generally the ones holding the IT purchase decision within the household

Relative to the sample to be used throughout the quantitative assessment, this needs to be large enough to lead to relevant results. However, given the properties of qualitative research, a too large sample could become redundant as the results of the study would only be repetitive. Given these features, it is established that the size of the second research sample be of 140 individuals. It would be as such constructed so that it meets the following criteria:

The respondents own at least two Apple products

The respondents have completed at least one purchase from Apple Inc. throughout the past year

They belong to various age categories and have vast socio-economic backgrounds

They belong to both genders; a state of equilibrium was once again sought, but could not be found due to the persistent interest of males in IT products.

Chapter 4

Data analysis and discussion

4.1. The qualitative analysis

The observation of the Apple consumers was conducted within the company stores, where the researcher spent a medium 2 hours a day, examining the customers. Elements to which attention was paid include the clothes of the buyers, their age, their possession of other gadgets, their conversations with the vendor and so on. Based on the observation, the following findings were retrieved:

Age: The Apple consumers are generally young individuals, usually not older than late 30s. This is virtually explicable by the fact that the Apple gadgets address primarily the young population, who is still able and interested in learning the newer technologies. As the consumers age, they are less likely to purchase new products as they are not interested in learning new features, but the are more focused on product functionality and ease of usage.

Occupation and education: It is generally difficult to identify the occupations of the buyers just by the way in which they present themselves in the store. However, the body language does give up information on the individual. For instance, the age and the clothes of the customers revealed that most of the buyers were either white collar individuals, either students. The way in which the people spoke was indicative of the fact that they possessed at least medium education -- in most cases even a college or higher degree.

Based on the conversations in which they engaged with the Apple sales staffs, it could be observed that the large majority of the clients did not have vast technical skills or knowledge, but were still able to understand the functionalities of the applications and to ask for details. In terms of software developers -- the segment recognized for its passion for technological applications -- their interest in the Apple products was limited. This is explained by the relative rigidity of the Apple applications in the meaning that the software products are not compatible nor are they open sources so that they can be adjusted by the programmers. Within this particular market segment, the iPhone has lost significant territory to the telephones from HTC, Samsung or other manufacturers that integrate the Android operating system which allows the owners to write programs for the telephones.

It can as such be concluded that the primary elements which drive consumers to purchase the Apple products are the easy usage of the applications, as well as their fashionable characteristics. The Apple products integrate user friendly interfaces and the quality of the software applications is increased. Unlike with Microsoft for instance, Apple integrates full version already installed applications and the user is not required to install and reinstall them and find himself frustrated with technical failures.

Another element which was observed refers to the enthusiasm of students. On several occasions, college students came in and asked the Apple vendor about a specific Apple product they had seen during an Apple presentation within the college. This element will however be discussed further on as an integrant party of the communications and promotions strategies.

In store behavior: Most of the customers who enter an Apple store are well educated and they are as such able to engage in a technical discussion with the Apple vendor. They request additional information and they test the applications. The younger customers spend more time testing the applications then the more mature buyers, who test for functionality in general (and a few features) and they decide upon the purchase.

4.2. The quantitative analysis

At the first level, the quantitative analysis revolves around the assessment of the collected surveys, and the integration and processing of the answers. At the second level, it refers to the interpretation of the answers retrieved. In this order of ideas, the answers to the posed questionnaire questions are integrated in the tables below:

First set: questions 1 to 3

Question 1

Question 2

Question 3

a b c d a b c

Second set: questions 4 to 11, integrated based on demographic characteristics previously established

Question 4

Question 5

Question 6

Question 7

a b c d a b c a b c

Age

16-20

20-30

30-40

40+

Occupation

Student

Unemployed

Blue collar

White collar

Education

Less than high school

High school

Masters or higher

Question 8

Question 9

Question 10

Question 11

a b c a b c a b c

Age

16-20

20-30

30-40

40+

Occupation

Student

Unemployed

Blue collar

White collar

Education

Less than high school

High school

Masters or higher

Interpretation and discussion

I. Demographics of the Apple consumers: most of the Apple consumers are between the ages of 20 and 30, being both students as well as employed. The second most popular age group is that of ages between 16 and 20, most of which are still in school. The third category, relatively close to the second one, is formed from individuals between the ages of 30 and 40. The consumers of ages over 40 are less common within the Apple stores. The structure of the Apple Inc. consumers can be explained by the higher interest of the younger population in acquiring hi-tech appliances, relative to the lower interest of the more mature population, who prefers to stick to the appliances they already know how to operate. Relative to occupation, the majority of the respondents occupies white collar jobs (60 out of 140 respondents), followed closely by the 56 respondents who are still in school. The less popular categories are those of blue collar and unemployed. In both cases, the participants to these two latter categories would need to use the limited financial resources on more stringent issues and priorities then the purchase of Apple Inc. products. Finally, in respect to education, 90 of the 140 respondents possessed at least a college education, with the remaining 50 having completed only high school or less.

II. Last purchase: At the level of all three criteria groups -- age, education and occupation -- the most popular purchase was of an iPhone. This is explicable through two distinct states of being. On the one hand, the iPhone 4 was only recently launched within the market. It is a start product which was expected by the customers and which is purchased in high volumes. As CEO Tim Cook stated, "We are selling every unit we can make" (Burrows, 2010). The second explanation is given by the fact that, despite the emergence of the iPod or the improvements made in the MacBooks, the telephone remains the most important accessory of the youth and the most important gadget of the mature.

Previous experience: While there existed some answers to indicate the opposite, most respondents to the survey stated that the previous experiences they have had with the company in terms of both product quality as well as customer service experiences were strong determinants in their future purchase decisions. The highest levels of commitment to past experiences were observed to manifest in a direct relationship with the age and education of the respondents in the meaning that younger customers were less committed to past experiences whereas more mature and better educated respondents were more committed to past experiences with Apple Inc.

Peers: At the level of the younger category of respondents, a trend was observed in that of purchasing the Apple items because they were owned by the other colleagues. This element materializes in the realization that the influence of the reference group within the category of teenagers is increased. This might be explained by the fact that the adolescents are more susceptible to influence as they seek the acceptance of their peers. The trend was not observed within the more mature segment -- it was less intense for the 20 -- 30 age group and even less present within the 30 -- 40 age group. In other words, there is an indirect connection between the strength of the peer pressure and age in the meaning that as age progresses, the pressure from the peers becomes less intense.

The Apple stores: Most of the interviewed customers responded positively to the uniqueness of the Apple stores and stated that they constituted a strong argument in the purchase decision. The most positive reaction to the store was observed among the more educated and white collar position occupants, those who reveal a technical ability to test the products. The explanation for the role played by the Apple stores in the purchase decision is a dual one. On the one hand, the products are sold by specialized Apple staff who can offer vast information on the products -- this opportunity is often not presented in larger stores where the staff members are poorly motivated and not sufficiently informed to offer input. On the other hand, the Apple stores are created with such a design and within such an environment that they integrate the products, the customers and the experience. In other words, they encourage the prospective buyers to test the products and get a taste of the Apple experience.

The Apple brand: with few exceptions, people base their decision to purchase Apple products on the strength of the organizational brand. As the editors at Inside CRM put it, "Apple is a hip brand. It pushes a strong identification with everything young, up-to-the-minute and smart. Consider Apple's I'm a Mac campaign. The Mac guy is smooth and confident, while PC appears uptight and old. Once you've become smooth, would you want to go back to uptight?"

Product diversity: The issue of product diversity is a conflicting manner with the respondents, revealing as such various beliefs and perceptions. A general trend cannot be established and this is due to the elements of customer individuality. In cases when product diversity does indeed constitute a determinant of the purchase decision, this is explicable through the wide selection of Apple items in stores and the ability of customers to each buy the particular item which best serves their needs. The editors at Inside CRM for instance argue that when a prospective buyer is not sure they want to invest their money in a Mac, they can start off with a less financially significant purchase, such as an iPod, which will then introduce them to the Apple products.

Information and communications: With the exception of few cases, the large majority of the answers indicated a tremendous role of information and communications within the purchase decision. Given the high levels of Apple sales, the company's ability to effectively communicate with the audience is revealed. The organization for instance engages in presentations at educational institutions, participates to various national and international conferences, airs and distributes informative videos and other materials or features in specialized journals or magazines on constant basis. Another explanation is given by the popularity of the Apple products, which raises discussions among the communities, such as schools, workplaces or online forums.

In store customer service: the offering of customer service within the Apple stores as opposed to outsourcing the operations and offering them via telephone creates a generally positive balance in the purchase decision. There are few respondents who argue the opposite. The positive impact of Apple's in store customer service strategy is given both by the positive previous experiences customers have had with the service, but also by the perception of Apple as a socially responsible entrepreneur who creates jobs for the Americans. The creation of new jobs within the United States, alongside with the label Made in the U.S.A. stimulates the consciousness of the American people, who are deeply affected both by the economic crisis, as well as by the corporate decisions to outsource more and more jobs to more cost effective regions, and as such deepen the socio-economic problem of unemployment within the U.S.

The future: Most of the customers recognize the gravity of the mistake which has been made in Apple's system of computing the signal for its mobile applications, but they also believe that mistakes are a natural process of learning. They as such argue that they will continue to purchase the Apple products in spite of the antennagate, the title that was given to the incident by no one other than Steve Jobs. This finding is consistent with Peter Burrows' argument according to which the "Apple consumers have faith after antennagate. […]"Let me be very clear on this," Chief Operating Officer Tim Cook said during the Cupertino company's earnings call with analysts. "We are selling every unit we can make" (Burrows, 2010).

The last two questions are not multiple choice, but open questions which asked the Apple customers to write down their own answers. This final stage of the questionnaire raised was less simple to complete either because the respondents did not know what to say, either because they did not want to actually write it down. 15 surveys were left unanswered and 10 were annulled due to irrelevant responses. Out of the remaining 125 surveys, the following were identified:

A large majority of the respondents in the 16 -- 20 years age category stated that the final decision is made by the parents, who are in fact those who complete the actual payment

Within the 20 -- 30 age group, most of the responses indicated that the purchase decision is not influenced by anybody. Few responses indicated that parents would have to pay -- probably for those in the early 20s who were not yet financially independent. Few other responses indicated that the final decision is -- to some degree -- influenced by the opinion of the peers regarding the Apple products considered for purchase.

The members of the 30 -- 40 group category argued that they sometimes ask for the approval of the spouse / partner especially when the price of the product considered for purchase is rather high. In most instances however, the 30 something respondents do not base their purchase decisions on the influence of others.

In terms of a classification of the elements which sit at the basis of the decision to purchase an Apple product, the 125 survey respondents indicated the following order:

1 -- The high quality of the products

2 -- The prestige of the company and the strength of the brand

3 -- The high quality of the customer service experience

4 -- The easiness of use

5 -- The past experiences with the Apple products and the firm itself

6 -- Promotions and other marketing strategies of Apple

7 -- Reviews and opinions from other Apple buyers

8 -- The influence of the peer group

9 -- The innovative style of the firm and its products

10 -- The fashion label associated with the Apple products

11 -- The fancy design, including packaging

12 -- The Apple stores characteristics

Chapter 5

Concluding remarks

5.1. Conclusions

The IT&C community plays a crucial role within the modern day society. It generates innovation and then it forces innovation on all dimensions of the contemporaneous life. In the context of incremental globalization forces, the IT&C community has been faced with competition fiercer than ever. And in this context, a question is being posed relative to the means in which companies are able to attract and retain clients. At a more particular level, what are the elements which drive consumers' decision in favor of purchasing products from Apple Inc.

You’re 80% through this paper. Sign up to read the full paper.

130,000+ paper examples AI writing assistant Citation generator Cancel anytime