Posted at 11.20.2018
With its iPhone, Apple successfully created a rewarding product family that enabled its entry in to the crowded mobile phone market. Within the short span of three years, Apple's iPhone has exceeded RIM (BlackBerry) as global smartphone shipments reached 77 million products in another 1 / 4 of 2010. Based on the record, Apple's iPhone sold 14. 1 million handsets, while RIM changed to 12. 1 million, despite RIM (Blackberry) being in the market 5 years ahead of Apple's iPhone. (M. Martin. 2010) This shows a 91% expansion of handsets sold within the same quarter this past year. The iOS utilization in US is 18 million devices in a inhabitants of 309 million for 3. 45% penetration. In comparison to US, in Singapore, there are 480, 950 devices in a populace of 4 million for a penetration of 8. 08%. Such a higher penetration rate shows there is a high demand and iPhone appeals highly to Singaporeans. (N. Mawston. 2010. )
In Singapore, prior to the official unveiling of iPhone, Singaporeans were offering to pay premium charges for unlocked, warranty-free models in the greyish market. (Alfred, S. 2007. ) Following its official unveiling in Singapore, SingTel studies a powerful demand for Apple iPhone 3G with over 170, 000 activations in September quarter. (MacDailyNews, 2008)
IPhone is definitely an instant reach with Singaporeans, with Singapore being one of iPhone 3G's most enthusiast Asian countries (Budi, P. 2008) It really is not merely the show of market that iPhone possesses but being first in your brain of people that make it such popular in Singapore and worldwide.
Consumers purchase decision identifies a series of decisions made by the consumers which can be put through their deeply kept values and behaviour and their notion of the purchase before establishing a determination to buy. (Manoj, P. , P. Flora and A. Gupta. 2010)
The decision making process could be influenced by factors such as public, personal and mental health. (Rowley, 1997) Public factors make reference to reference groupings, family, role and status while personal factors include lifestyle, monetary situation, occupation, years, personality and do it yourself concept. Consumers are often affected by their role and status as each person possesses different jobs and status in the society depending on individual's occupation. Age group and life-cycle have a great impact on the consumer buying behavior as consumers change the purchase of goods and services with the passage of time. Meanwhile, mental factors such as belief, motivation, values and behaviour could affect the way consumers understand about the value of the purchase and just how they identify with the brand. (A, Shah. 2010)
Therefore, the key gist of this review is to increase iPhone's competitive advantages by determining what key features consumers look for and the facts which makes iPhone more sought after in the mobile market in comparison to other smartphones. To filter down the range of review, Singapore has been chosen on your behalf of Asia. Relating to a recent survey by mobile advertising network Greystripe, Singapore is amount six on its set of iPhone-using countries, before much bigger markets like Japan and Hong Kong. Furthermore, Singapore is known as to be one of the very most technology advanced countries in Asia. (Jimmy, Y. 2009) To comprehend which factors influences consumers' purchase decision, five hypotheses are reviewed.
The first sub variable would be family members, friends and fellow workers as they strongly contribute to a person's choice of mobile phone. This includes interaction with various membership, reference point, and organizations. A person often buys an item since it fulfills the need to be acknowledged for it by family, peers and other people he is related to or affiliated with. Another sociable factor that influences buying the iPhone is peer pressure; the buyer buys the handset because everyone else gets it and talking about it. Buyer patterns is strongly influenced by the person in a family group. Therefore marketers are trying to find the tasks and influence of the spouse, wife and children. If the buying decision of a specific product is inspired by wife then the marketers will attempt to target the women in their advert. Here we have to note that buying assignments change with change in consumer life-style. As more people bottom part their decisions on "what most people already does" (what's most popular), this becomes a social phenomenon.
The consumers also have a tendency to perceive they can get more reliable products and manuals when following the bulk because significant information is easily available in various locations. From forums speaking about the many iPhone concerns to first-hand experience of people, friends and co-workers, cultural and consumer causes contribute highly to the purchase of an iPhone. Sociable factors differ from cultural factors in that they entail smaller communities that affect a person's values and perspective when it comes to consumer habit.
The second sub variable we'll be looking into could be the reference group. Guide communities have potential in creating a person frame of mind or habit. The impact of research groups varies across products and brands. For example if the merchandise is visible such as dress, shoes, car etc then the influence of reference communities will be high. Guide groups likewise incorporate opinion leader (someone who influences other because of his special skill, knowledge or other characteristics). The research group has a great impact on the consumer patterns because research group are the one who functions as a point of assessment for a person in the formation of either standard or specific prices, attitudes, or action. You bring your reference group along with you for the following reasons: To get information or advice, to satisfy the anticipations of others and to end up like a certain kind of adored person a consumer recognizes with and needs to join.
If you have ever dreamed of being a professional player of basketball or another sport, you have a reference group. Marketing pros know about this. That is why, for example, Nike hires stars such as JORDAN to pitch the company's products.
Consumers respect these folks and often ask their viewpoints before they buy goods and services. An it specialist with significant amounts of knowledge about computer brands can be an example. These people's buys often rest at the forefront of leading trends. Social perception in turn plays a major part.
Personal factors can affect the consumer habit, thus influencing brand recall and creating brand understanding. In the case exemplory case of the "iPhone", we will be able to dive and ascertain the list sub changing contributing to the non-public factor as 3rd party variable. It's important to look into Impartial factors as it does considerably effect on the choice of the consumer when purchasing iphones over the others of other smartphone.
Age is a contributing sub-variable of the Personal factor. There are different needs and wishes based on age group of the consumer. Apple had efficiently advertised "iphone" to the consumer reaching out to everyone of the age group. Apple experienced done it by programs personalizing; to match ones needs and needs. Ultimately, making i phone an irresistible "want" for the buyer out there. Predicated on Synovate review, the prominent age group that top mobile possession in Asia is the one and only the youth (years: 12 -16). Singapore 's youth top the chart to own cellular phone. Personal possession of mobiles has increased from 80% to 85% in Singapore. (Amount extracted from Synovate survey 2010). The Young (20 -35) are the targeted age group with high disposable income on (http://blog. vavia. in/tag/high-disposable-income/) as they tend to use their smartphones in replacement unit to their Laptop or computer for ability to move. The Young are goal-oriented; they would like to have the live and latest reports on the go. In parallel, a study had also been done on which smartphone owners have highest credit-based card balances. The Apple's iphone tops the graph basing on study final result done by Pageonce Inc, in 2010 2010.
In view of current movements of the Iphone, it inevitably got turn into a lifestyle with a fashion affirmation. Lifestyle indeed is a notably sub-variable for the Personal factor. With different customizable features through thousands of applications in the apple appstore, it suits the ever before active consumer of today with convenience and range of motion. From social apps like whatsapp, facebook and twitter, it connects people who have instant live information and happening. Using the thousand of game titles of different genres to wipe out one's boredom or while in e. g. waiting around scenarios, iphone not only fulfils the basic requirements of the smartphone but bringing people to a whole new level and experience. Predicated on the research derive from Zokem, the figures suggest plainly that Iphone is the most notable performing platform in terms of consumer loyalt. "Apple i phone is an more and more likely get for a repurchase", quoted by Zokem CEO Hannu Verkasalo. From here, you can see that the Apple brand recall and brand understanding is undeniable top-notch. Even in Singapore as one of iPhone 3G's most enthusiast Parts of asia, Singtel (telco operator in Singapore) has sold more than 20, 000 units of the Iphone 3G during three week - it is counted as about 1000 units sold each day. (http://www. slashphone. com/singtel-sells-over-20000-iphones-in-three-weeks-151825)
In respect to last factor; ECONOMY, which is one of the adding sub factors to Personal factors. ECONOMY variable is reliable on someone's economic situation that will have an impact on their product choice. The Iphone might not be regarded as affordable for everyone especially accompanied with or without by the mandatory data plan. With the United States going into recession, spending power by the united states consumer have been stagnant. Nevertheless it does not stop the consumer from purchasing iphone beyond US. In actual fact, 75 % of iPhone sales are now overseas and sales soared in particular in the Asia Pacific region. In China, Hong Kong and Taiwan, Apple registered iPhone sales of $1. 3 billion (84 million), up 200 per cent. (http://www. manchesterwired. co. uk/news. php/53776-Apples-iPhone-sales-deemed-staggering-exceed-expectations). This is the consequence of ASIA'S economy flourishing. Asia will be about 50 per cent greater in five years, making up greater than a third of world output. Actually in 20 years' time, Asian economic output will exceed that of the Band of Seven major industrial economies - the United States, Japan, Britain, France, Germany, Canada and Italy (relating to International Monetary Fund, IMF). Because of this, it creates Apples iphone market stocks increase extensively leading to successful brand recall outside of the USA. Even in countries like Singapore, where the majority of Singaporeans fall in the centre course tier with considerable income. Apple i phone is therefore considered inexpensive and consumer had been responsively welcoming to the release of Apple iphone in Singapore.
From the aforementioned analysis, we can easily see the 3 main sub-variable contributing to Personal factors thus bringing on successful and impressive high brand recall to Apple's iphone. With all the high brand recall for Apple, it further contributes to the creation of brand awareness. The creation of brand understanding is the main base of any product's life pattern in target market segments. In fact, brand awareness has affect on buying behavior of the buyer. Predicated on the aforementioned research done on Iphone, the consumer indeed got a complete understanding of the brand; permitting them to acknowledge and accept the brand (Apple).
Psychological factors are the intrinsic character within the consumers, base on past encounters and collective knowledge, which influences their decision to do something and purchase a product. The emotional factors are further grouped into the individual's motivations, perceptions, and beliefs and behaviour.
Motivation as we realize it's the driving force which in turn causes us to accomplish goals. In purchasing an Iphone, it falls on the higher degrees of the Maslow's hierarchy of needs such as "Love and belonging", "Esteem"or "Self-Actualization" respectively as the bottom levels - "Physiological needs" and "Safety needs" have to be fulfilled to be able to pay a premium for a Smartphones such as an Iphone (A. Maslow, 1943). Further studies such as article "The Envy Top quality in Product Analysis" conducted show that inspiration for consumers to be happy to pay a premium price for products occurs when it elicits their envy (N. van de Ven, M. Zeelenberg, & R. Pieters, 2010). Research from Tilburg College or university, Department of Friendly Psychology and TIBER (Tilburg Institute for Behavioral Economics Research) has figured the more people compare themselves to someone who is superior, the bigger the envy premium they are willing to pay for. However, the study has also reveal people prepared to pay more for products only once they are motivated by a positive, benign form of envy. While on the other hands, if someone has a harmful envy on someone else who is thought to be undeserving then this will evoke a desire to "pull down" the other person. For example, in the same research conducted, people who believed maliciously envious of someone with an iPhone were much more likely to pay more for a BlackBerry. Hence, if envy is a genuine cause for determination to brand recall, Apple and other consumer products merchants should consider advertisements that display a positive view of envy rather than negative and competitive one.
Beliefs and behaviour play a great deal of effect over consumer buying behaviour (K. Callwood, 2010). Consumers often block information that conflicts with their values and attitudes, plus they tend to selectively maintain information or even distort the info that was presented with to these to make it regular with their past beliefs of the product. However the question here's what constitutes to the collective values and contributes to create the attitudes for Iphone and its own brand Apple? In article "The brand attitude formation procedure for emotional and informational ads", research has shown that ads using an psychological ad format will heightens positive thoughts and reduces negative emotions and increased thoughts about reliability of the advertisement, which affected ad behaviour and brand behaviour. While on the other palm, for advertising that uses an informational advertising format will boost evaluative thoughts about the reliability of the advertising thus boosting positive feelings and lowering negative thoughts (C. Yoo and D. MacInnis 2005). From this we understand that through the impact of advertising can straight impact consumer brand behaviour and values. We also note that several studies show that word-of-mouth (WOM) marketing communications also has a solid impact on the consumer's beliefs and behaviour towards the products and its brand. In article, "Ramifications of Word-of-Mouth and Product - Feature Information on Persuasion: An Accessibility - Diagnosticity Perspective" has conducted experiments on the consequences of word-of-mouth (WOM) communications to see whether it causes specific attribute information on product evaluations. It was found that although a face-to-face WOM communication was more persuasive than a printed ad and a solid WOM effect was found, but this result was reduced or removed when a preceding impression of the mark brand was available from memory or when extremely negative or opposing attribute information was presented to the mark audience (P. M. HERR, F. R. KARDES and J. KIM, 1991). Hence, it is highly possible that values and attitudes takes on a key role as a sub adjustable in influencing the mental aspects of an individual to brand recall and decide to buy an Iphone.
Consumers make a variety of associations of their preceding knowledge and experiences to form a distinctive so this means and understanding to themselves known as Belief. When a company positions itself as an inexpensive retail store, the consumer understanding will be that anything that comes from that store is cheap and subconsciously, poorer quality (K. Callwood, 2010). To the cost conscious consumers, prices technique to brand perception is very important and it impacts the way consumers will value the product and will pay the purchase price that was established for it (K. Pierre, 2010). With reduced price set for Iphone, it can be assumed that Iphone will be of an improved product quality as shown in the article "Pricing Depends on varying Factors rather than Value: Charges Strategies Have Promotional and Income Maximization Goals" which claims that Premium Rates is whenever a product will set you back a high price to give an impression of quality value and that price does not have any relation to creation and marketing costs. The motive here is to create a prestige value that status-conscious customers seek (G. Thachappilly, 2009). Positive exposure of an consumer product or brand will also influence consumer's conception as shown in article "Brand Conception is Everything". We learned that by calculating the purchase equal value of any brand's visibility, which is determined by the consistency and subjection of media mentions and public dialogue, can determine the impact on Perception value as measured by assigning positive value to positive mentions and negative value to negative mentions (M. D'Antonio, 2011). We known from the article that Apple, Google, Microsoft, Yahoo, and Ford have topped the Impact list as they may have generated the largest subjection online and come to the most consumers thus creating and making the most positive effect on the consumer conception of these brands, placing them the top of mind in terms of brand recall and recognition.
Summing up all the sub variables aforementioned, we can very obviously see these factors influencing consumer behaviour indeed plays a huge part in creating brand recall as well as brand understanding. With a solid brand recall comes with greater brand consciousness and this works especially well to our benefits since iPhone is a tangible product. Taking each one of these under consideration, product popularity level would then increase. This will likely in turn boost the consumer's preference and have an effect on their buying decision when purchasing an iPhone.
Table 1. Independent and centered variables
In view of the unbiased variables picked, the hypotheses appealing are as follows:
H1: Community factors impact brand recall
H2: Personal factors affect brand recall
H3: Mental health factors affect brand recall
H4: Brand recall effect brand awareness
H5: Brand awareness influence consumers' desire for iPhone
Table 2. Categorisation of sub-variables