consumer behavior - apple

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A

Project Report

On

Apple Inc.Prepared By Roll No

1.Navin Mistry 1352142.Milind Parmar 1352133.Darshil Shah 135205


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Index

1. Introduction2. Major Cultural Factors3. Effect of Culture & Subculture4. Marketing Strategies5. Reference Groups & Family Decision Making6. Celebrity Endorsements7. Degree of Involvement of Consumers & Marketing Tactics8. Motivation theories of Maslow and McGuire9. Central route and the Peripheral Route in the ELM Model.10.J &D11.Advertisements (Closure, figure and ground and grouping principles.)12.Use of colours in the brands from personality and perception point of view.13.Attitude change strategies used.14.Examples of learning strategies used.15.Brand Personality Concepts.16.Decision making process normally followed and the factors influencing Purchases.17.Role of family and children in the purchase process.


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1. Introduction

Apple Inc. is an American multinational corporation that designs and markets consumer

electronics, computer software, and personal computers. The company's best-known

hardware products include the Macintosh line of computers, the iPod, the iPhone and the

iPad. Apple software includes the Mac OS X operating system,the iTunes media browser; the

iLife suite of multimedia and creativity software; the iWork suite of productivity software. As

of August 2011, Apple is the largest company in the world by market capitalization and,

therefore, also the most valuable technology company in the world, ahead of Microsoft.

Apple Inc.'s world corporate headquarters are located in the middle of Silicon Valley, at 1

Infinite Loop, Cupertino, California. This Apple campus has six buildings that total 850,000

square feet (79,000 m2) and was built in 1993 by Sobrato Development Cos.

Time Line of Apple Products:


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2. Major Cultural Factors

Values, Ideas, Attitudes, Beliefs and Population which are the major factors affecting the

consumers.

Limited research on cultural factors related to US adoption and use of smart phones and

mobile Internet has been completed. Those that have cite a number of factors specific to the

US. Real-time gratification is relatively more important to US consumers, which can be

gained through the value of entertainment applications in m-commerce. Thus, part of the

success of iPhone can be attributed to its provision of real time gratification through

entertainment applications such as games, etc.

Another study showed perceived security (extent to which people believe the Internet is

secure), perceived enjoyment (rewards derived through use of technology) and subjective

norms (use of an innovation tied to ones social status) were all found to be higher in the US.

iPhone customers achieve personal enjoyment through the multitude of entertainment related

applications available and perceived security in that all applications downloaded to iPhone

have been approved by Apple, giving users that much-needed sense of security. Finally,

subjective norms and social status are inherently part of iPhone user experience, with iPhone

(much like the iPod) being seen as a status symbol.

While culture varies by country and within countries, it is important for the iPhone to find

cultural niches that it could fill. These cultural niches have been filled for the most part

through the applications and services provided, rather than the mobile devices, indicating thatregardless of the hardware platform, cultural preferences can be met through software and

content.

3. Effects of subcultures and social-class on Consumers' Behaviour

Socio-cultural environment is becoming more and more significant in industrialized

countries. Especially in the United States where diversity of nations work and live. Therefore,

it is highly important to consider socio-cultural factors that might affect Apple company and,in consequence, the society itself.

For example, each company has its slogan and colour of brand in marketing promotion and

Apple also has its slogan which is Thinking different by what Apple shows that the motto

is not easy to create because there should be considered such socio-cultural factors like faith,

ethnicity, language and etc.

In addition, population growth and population density has continually increased over the last

ten years which mean that there is a big opportunity for Apple to attract more customers and

diversify its products. However there should be made some analysis regarding thepreferences of the customers due to the difference in faith, ethnicity, language and etc.


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Moreover, rising education levels can also influence the company. The more society is aware

of the product that is being promoted the less there will be a chance of buying low quality

product.

Firms may reduce the risk of gaining a bad ethical reputation by anticipating and adjusting

for socio-cultural trends. For example nowadays people are aware of environmental issues

and prefer to purchase goods that are being produced from recycled products or

environmentally friendly materials. As to the Apple Company, it is promoting green effort

campaign, meaning that the company is going to assemble products that contain fewer

chemicals.


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4. Marketing Strategy Used By Apple Inc.

The best way to market your product is to catching them young. Apple Inc is following the

same model by doing several activities as mentioned below:

1. Free Youth Programs

2. Free Trips for Teachers & Students


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3. Apple Camp for Kids

4. College Night

5. One to One Learning on Purchase of MAC Book

Trainings Offered:


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Personal Set up Facility

In the latest advertisement of Apple IPhone, they have targeted each & every segment.

The Advertisement is full of attitudes & values to have the heavy impression on the

consumers.

Attitudes i.e. Logo, Brand Name, Consumer beliefs etc.

5. Reference Groups

The products of Apple Inc fall under below mentioned reference groups in different aspects:

Primary Groups:

In this group, consumer is mostly influenced cause of their similar interests, their friends

serve a socialization needs. They provide companionship, security and opportunities to

discuss the problem that one cant discuss with the family.

Official Groups:

The best example is the colleagues and members of a club or association. The sheer amount

of time that people spend at their jobs, provide ample opportunity for work groups to servemajor influence on their consumption of products and services by those members. This

groups are having high degree of influence.

Implicit Groups:

This are the groups whose affiliation is not formally defined, but they belong to same age,

gender or educational background. They are sometimes called brand community. This

operates on the community pressure to have a product which community have adopted to

gain acceptance in community.


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6. Celebrity Endorsement:

Since Apple Inc. has targeted almost all the segments of the market considering the

demographic, geographic etc, they are not into the celebrity endorsement. This is because ofthe several reasons mentioned below:

1. Reputation of Celebrity may have adverse effect on band

2. Inconsistency in the professional popularity of celebrity.

3. Multi-Brand Endorsement done by celebrity.

4. Celebrities are endorsing a brand & using another one.

The Major Reason is the Image & Popularity of the celebrity is limited to several group of

peoples. Some people may influenced by the product and some wont who are having

disliking about the celebritys image. This may lead to limited market which consists of

peoples who are only influenced by celebrity only.


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7. Degree of Involvement & Marketing Tactics

Apple Inc.s Products are meant for limited decision making purchase. They are having high

degree of involvement with the Product having Values & Importance.

Premium Customers

Apple is having premium customers which choose to buy the premium product in the market

attracted by style, fashion, and form. They are prepared to pay extra. Their demographic

profile is different, and they are more affluent. This is a premium, sophisticated market that

chooses high-end products and one that most marketers will want to tap.

Usability

There is some evidence that suggests that Apple tablets are easier to use and somehow more

engaging. Easy WiFi connections may be part of the story, coupled with more apps, and aconsistent app experience that encourages user engagement. If users spend more time on thedevice, and are using WiFi to surf recreationally on a big screen device while sipping a glassof wine on the couch in the evening, then purchases follow.

Marketing Tactics

Quality is the most important aspect of any marketing campaign, since it all beginswith the product or service being offered.

Without quality, no company can build the sort of stable momentum it needs to survive

and grow. No matter what marketing brilliance Apple had employed, ultimately sub-parproducts would have done the company in eventually.

Above all, some level of sophistication is key. This is essential in order to consistentlybeat the competition. For example, there is an unmistakable luxury that exists inside ofApple Stores. The products are interactively displayed so that users can touch andexperience them, unlike in so many other stores. The beauty of it is that even the mostsimple products and services can give off an air of refinement. The staff is plentiful andaccessible. Also, most of the stores offer free in-depth classes on how to use their

products, adding to their allure. Doing this makes all of their products accessible even tonovice users.

Consistent branding messages are another tactic employed by Apple.Regardless of where an Apple product is purchased, it has the same level of quality. This

puts forth a branding message of excellence that has attracted legions of loyal customers.Much like the dime store giant of days gone by, F.W. Woolworth, Apple set out to maketheir stores browse worthy. Each store is uniquely designed so that there is no doubt that

people are in an Apple store. While there is nothing gratuitous about the design ofApples products, the company has managed to make customers feel as though they are

treating themselves to an elite product line that epitomizes a level of luxury like no other.

They are packaged to be simplistically appealing, yet always do more than similarproducts. As a result, Apple customers feel special just for using their products. This isperhaps the most ingenious public relations strategy in retail marketing history.


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Apple has sought to cultivate customer enthusiasm.The basis for loyalty is enthusiasm. In order for customers to become loyal, they must beconnected to the products and services they are using. Every savvy business marketerknows that it is the repeat customer who will sustain a business. Therefore, rather than

spend so much time chasing after new customers, ensure that the existing ones are happy.Not only does this make the road to repeat business shorter, but the word of mouthadvertising from satisfied customers is invaluable.

When a company has fans camped out overnight in the rain for days just to be the firstpeople to get new products, they have reached rock star level. By creating fans rather thanjust customers, a company is pretty much guaranteed a strong and loyal base. In todayscompetitive marketplace, this is essential for any business to survive.


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8. Motivation Theories

Maslows Theory of Motivation

In the Maslows Theory, Apple Inc. falls under two stages whereproduct demand is created.

The two stages are mentioned as below:

- Belonging & Love NeedsDesire for love, affiliation & acceptance in the groups consumer is motivated to

purchase a product.

- Esteem NeedsDesire for superiority, self-respect & prestige.

This needs relate to the individuals feelings of attaining certain status &accomplishment.

McGuires Theory of Motivation:

Apple Inc falls under below mentioned points in McGuires Theory.

- Need for Self ExpressionConsumers are purchasing in order to built their self image which is in their

perception.

- Need for Ego DefenceApple Inc. is such a brand which can fulfil such needs of this category of consumers.

- Need for ReinforcementTo be rewarded for being so or having purchased Apple Incs product need is

generated.

- Need for AffiliationAffiliation is the need to develop mutually helpful and satisfying relationship with

others. This is used by Apple Inc.

Ex. In the Advertisement of Apple Iphone5, they have shown the features and tried to

create affiliation vide showing the features which can be affiliated with the beautiful

experiences & moments of life.

- Need for AssertionThis need is there to enhance the self esteem of a person into the eyes of others. Apple

is such a brand which serves the purpose of people having this kind of needs.


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9. Advertisement which use the central route and the peripheral route in the ELM

model.

Apple Inc. have advertised the Products with the both the routes in the ELM Model.

Central Route:

Features are displayed & educating the customers towards the same as displayed below to

motivate the customer to have purchase of a product.


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Peripheral Route

Only cognitive attraction is intended to get with different ads having same theme with same

product but with different situations.

As shown is the below mentioned some Pictures the same message is conveyed to theattitudes of consumers to motivate at the needs fulfilment.


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10. J&D and Subliminal Perception

Just Noticeable Difference

White One Is Thicker (IPhone):

Before its 10 month late launch, white iPhone4 was intensively rumored all over the world.Widely believed to be unreal, the white smartphone finally arrived in App store yesterday,April 28th. The Apple lovers are all happy, rushing to get one, but there is one big BUT!

The white iPhone 4 appears to be significantly thicker than its black counterpart. The picturesobviously prove it- the black one is 0.2mm thinner than the new white iPhone4.

The reason for thickness is said to be the extra UV protection and other tweaks added toreduce the "unexpected interactions" between the cover's whiteness and the internalcomponents. It seems that apple sacrificed a bit of slimness for the iPhone to function

smoothly.

White iPhone4 0.2mm thicker than its black counterpart

The difference is so small that its actually below the JND (Just Noticeable Difference) edgefor consumers with disarmed eye. But the implications caused by this 0.2mm are muchgreater than we can imagine- the problem is the cases! Unfortunately, Apple's own spec pagedoesn't highlight the change in thickness (measured at 9.5mm by TiPb). Instead it still showsa 9.3mm depth with a tiny disclaimer stating, "Actual size and weight vary by configurationand manufacturing process." This fact misleads case producers while creating tight fitted

cases for iPhones, forcing to start manufacturing a new line of their product specially forwhite iPhone4.

IPods white headphones. Using white headphones to launch Apples mp3 player wasntmerely disruptive for a category with commonly black headphones, it was also own able asthe iPods signature colour. Further, the distinctive colour publicly identified the consumers

brand preferencea fact previously hidden in the consumers pocketcreating a tribe-likecommunity and encouraging a wider audience to join the digital music revolution.

Subliminal Perception:

Apples product colour is itself is an example subliminal perception. The white colour stands

for purity and normal. White colour is a symbol of peace and every person get attractedtowards it because of its natural symbol even though this attraction may not have anysignificant value for that particular person.


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11. Apply the popular meanings of colours for the brands in the sector.

Apple's first logo was designed by Steve Jobs and drawn by Ronald Wayne

depicting,Sir.Isaac Newton sitting under an apple tree.The word 'Apple Computers' were

drawn on a ribbon banner ornamenting the picture frame,and the frame itself have a quotation

from words Wordsworth;

" Newton...A mind forever voyaging thr ough strange seas of thought...Alone"

Apple logo were replaced,by a monochrome theme of steel with a light shining behind it,but

more interestingly let us the look at the byte in the Apple's Logo:

According to the designer Rob Janoff,it is not a reference to the computing term byte.


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1 byte =8 bits

8(Eight) bits,or binary digit can be used to represent ,two states of information;

ONE/ZERO

ON/OFFTRUE/FALSEMALE/FEMALEIGNORANCE/KNOWLEDGEGOOD/EVIL

The more bytes, more intelligence, the more information you can store or process faster.

Major Products, Apple Inc is having products IPhone, I Pad, Mac Book, I Pod. The colours

used in the same are mentioned below with their meanings which are to be conveyed:


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White:

Purity & Gentle

Black:

Power & Elegance

Silver:

Metallic refined, distinguished colour of riches, has cool properties like gray, but is more fun,lively, and playful.

The colour silver is associated with meanings of industrial, sleek, high-tech, and modern, aswell as ornate, glamorous, graceful, sophisticated, and elegant.


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12. Explain the use of colors in the brands in your sector from personality and

perception point of view.

Colors are used in the build of brand for the imaginary purpouse .

Brand Personality Concept

Apple has a branding strategy that focuses on the emotions. The Applebrand personality isabout lifestyle; imagination; liberty regained; innovation; passion; hopes, dreams andaspirations; and power-to-the-people through technology. The Apple brand personality is alsoabout simplicity and the removal of complexity from people's lives; people-driven productdesign; and about being a really humanistic company with a heartfelt connection with itscustomers.

For the personality point:
http://www.marketingminds.com.au/branding/brand_profile.html#personalityhttp://www.marketingminds.com.au/branding/brand_profile.html#personality


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For the perception point:


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13. Discussed example of attitude change strategies used.

As per my understanding during the classroom discussion and the help of assigned textbook

I found that, there are four ways to change the consumers attitude.

1. By changing the consumers beliefs.2. By adding new beliefs.3. By changing attribute importance.4. By changing ideal points.

As concerned to our sector,

There are various product ranges in our sector , it starts with apples first computer to

end with Apple i-phones!

To evaluate properly I would like to take one particular Product of the Brand. The

Product is Ipad.

1. By changing the consumers beliefs.When Ipad was launched it has assumed that Ipad is the gadget , which mostlyuses for fun, gaming,music and specially for the teens and youngsters.

By companys strategy of beliefs in consumers that its not only uses for

teens or youngsters , even professionals can also use it with their regular day to

work weather its reading a novel or presentation in the office !

2. By adding new beliefs.Some new beliefs can be added by using third party endorsements and authentic

sources messages.

Like more new features added into the ipad in frequent duration . for example :

ios up gradation . i.e. ios 4, ios 5, ios6, ios7


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3. By changing attribute importance.Like in ipad there are several functions which are upgraded in ipad2 and the same

functions plus upgraded (new) functions of ipad2 , come up with the new ipad

(ipad 3).

4. By changing ideal points.Here, I will take the other product of apple because for particular point the

assigned product (ipad) will not fit into this properly .

Lets see with ipod vs iphone the same product almost the same features not

only possible to make calls because there are no place for sim card.


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14. Provide Example of Learning Strategy used.

Elements of learning :

Price

Style

Packaging

Adv. Messages

Store displays

learning can facilitate marketer to build demand for a product by providing positive

reinforcement

As I learnt from the textbook and class ofcource, there are mainly 2 types of theories:

1. Behavioral learning theories2. Cognitive learning theory

As per my sector I can not conclude the exact Brand position in manner of learning

strategy , because of variety of products are there and of cource STEVE JOBS were

there .

Identify the brand personality concept.

Brand Personality refers to the perception that is created by the brand in the minds of

the consumer.

As I understand there are five main constituents of brand personality.


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1. Name & logo

(A)Early 1980sApple has above logo and tagline.

(B)Later on logo remain same but color has been changed.

(c) Now in 2012 once again color of logo has been changed.


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2. ColorAs we can observe though there were several time logo has been changed even colors

of logos also changed but chosen colors always end with SOPHESTICATION tag.

Weather it has been Rainbow Effect , Black or Silver But the value of brand logo

remain the same . thats the beauty of this brand.

3. PerformanceApple today in consumers beliefs play role as a top class performer.

In terms of quality measurements.

4. Premium Image.Some of the parent products like ipad , iphone and Macbooks it self contains a

premium image.

(Because of its price concept)

5. Advertisement.

A very less advertisements give the society thats the main motto.

Always talk with quality rather than advertisements.

And this approach has been correctly proven.

15. What is the decision making process normally followed and factors influencing

purchases?

As per my studies normally no particular decision making process are follows , because of

its too much popularity among the consumers.

(For example: Any new iphone launch the consumers long queue at Apple Centre , U.S.A.)


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So company has no need to be justifying in particular sector.

And when the talk is about influencing purchases the different place/ country ofcource

measured.

(For example: iphones in country INDIA- Price will always remain high with reference to $

and INR .)

In this situation it affects consumers to buy a premium product.

16. Discuss the role of family and children in the purchasing processing.

Today Apple is the brand which is suitable in all group of ages.

In all group of ages people willing to buy this brand. Weather is talk about iPads for children

iPodsfor youngsters and macbooks for professionals a all must want this brand or else we

can say that love the brand.

For, too much love company always want to expand more and more brand equity in the

market for that reason company always come up with sale promotions.

Educational Discounts

Institutional Discounts

Professional Discounts

And Year & Sale discounts

Various type of above promotions always promoting more sales towards the brand equity.

And as a result consumers buy products more and more whether he may be son, father,

grandpa or she may be daughter, mother and grandma.

We can conclude this questions with above given some arguments which can be proper

answer.

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consumer behavior - apple

Documents

apple software

apple campus

time line of apple products

major factors

use of technology

creativity software

computer software

iphone customers