2013

FRET AND REGRET CASE ANALYSIS

Subject: Consumer Behaviour Professor: Prof. Sabita Mahapatra Group No: 6 Date: 22nd June, 2013 IIM Indore, Batch of 2014

Prepared By:
Ashish Jain (2012PGPM008) Kapil J Anand (2012PGPM014) Nitesh Kumar (2012PGPM022) Sandeep Sayal (2012PGPM028 Abhijeet Panwar (2012PGPM035) Shifaz Salim (2011PGP873)

Executive Summary

After using the Blackberry for two years, Fred just fished it out of the toilet as he knew he will get a new mobile from his girl friend Molly as a birthday gift. The very next day Molly presented a new Apple iPhone 4s.A day later Fret questioned himself why did Molly gift this phone when his personal like is towards Samsung Galaxy S2. Though he admitted that iPhone will allow him to video chat with Molly as she also has the same phone his personal inclination was towards Samsung Galaxy S2. The next day he decided to exchange this phone and get a new Galaxy S2. Fret found that in functionality both are identical so he tried to justify himself for exchanging the phone by saying Samsung had extra features like 4g and android phone will allow him to control the phone from computer and above all it had 4.27 inch crisp display. He also regretted for not mentioning that he want Galaxy and not iPhone to Molly. The next day Fret was shocked to see the mobile receipt which stated it expires in a day. He realised that he postponed his decision because it is a decision based on his own satisfaction with a phone versus potentially disappointing his girlfriend. Fret was in total dilemma whether to make him go for his personal favourite phone and hurt Molly or make her happy by using iPhone which will lead him to wait for another two-three years to get a phone that he really wants. The next day Fret checked the gift receipt and found returns would not be accepted after two weeks which means today is the last day if he wants to exchange the phone. He also contacted the store and came to know that phones cannot be returned for cash and the exchange credit must be used within the first two weeks of purchase. When Fret tried calling Molly she couldnt answer as she left for a con ference in St. Louis that morning. He cursed himself for not raising this issue with Molly in the last couple of days and now need to make a quick decision as the mobile store will be closing in two hours. In the end he decided to choose an option that will limit his regret.

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Table of Contents
1. INTRODUCTION SITUATIONAL ANALYSIS .................................................. 4

2. PROBLEM STATEMENT ......................................................................................... 4

3. ANALYSIS ................................................................................................................... 4 3.1 Assumptions 3.2 Alternatives 4. RECOMMENDATION & ACTION PLAN..........5 4.1 What should have been done? 4.2 What could be done now? 5. CONCLUSION ............................................................................................................ 6

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1. Introduction Situational Analysis Ian, the protagonist was gifted an unlocked Apple iPhone 4S by his girlfriend, Molly. As he continued using with his new phone, he started to have second thoughts about the phone as he was secretly eyeing the new Samsung Galaxy S2. He started thinking about returning the iPhone and buying himself a new Samsung Galaxy S2. To his ill luck, he realised that he had only 1 day left to return his gifted phone. To add onto that, he couldnt get in touch with his girlfriend and now had to decide on his own, whether to exchange the iPhone for Galaxy S2 or to stick with his gift.

2. Problem Statement:
Ian has to decide on his own, whether to exchange the gifted iPhone 4S for Galaxy S2 and disappoint his girlfriend Molly or to stick with the gifted iPhone 4S and compromise on his desire to own a Galaxy S2

3. Analysis:
3.1 Assumptions: The protagonist, Ian had made quite a few assumptions during his thought process: His girlfriend will get upset / disappointed if he returns the generous birthday gift given by her. Samsung Galaxy S2 is the only phone that will cater to his requirements. Its his personal satisfaction v/s his girlfriends disappointed reaction and no common ground can be reached. 3.2 Alternatives: Stick with the gifted iPhone: The outcome of going for this alternative is that though his girlfriend Molly might be happy with the decision, he might not be satisfied with the choice. This choice would eventually lead him to a feeling of guilt for not going for a phone he desired, when he had the option to exchange the phone. Exchange the iPhone for Samsung Galaxy S2: The outcome of going for this alternative is that though he might be satisfied with Samsung Galaxy S2, he might end up disappointing his girlfriend, whod gifted him the phone. This would eventually lead him to a feeling of guilt for not honoring the gift. Ian, the protagonists dilemma can be resolved by involving the retailer in the decision process. The various ways by which he could solve the problem in hand, have been discussed in the recommendations section.
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4. Recommendation & Action Plan:

4.1 What should have been done? Gift schemes A scheme could be developed where an anonymous survey can be done on the person for whom the gift is being purchased by the shopkeeper or the salesman in the name of the company in the segment of which the product is being purchased. For ex-In this case the salesman could have called up the protagonist asking him about his favorite smart phone and his preferences in the smart phone market. He could be acting on the behalf of the company Apple or Samsung. This service can be offered free of cost or for a charge. This will solve all types of issues encountered in terms of branded gift purchases. Demo policy A demo policy can be developed wherein the product could be sold as a demo phone for the first time at the time of gift purchase. The person to whom the gift is being made should be allowed to take any product of this denomination from the shop within a month. Salesman The salesman should take enough measures to know as much as possible about the person for whom the gift is being purchased. The salesman should involve the person who is buying the gift in a free flowing conversation to know about the tastes and preferences of the concerned person. This would allow the salesman to help the buyer to get the right product and avid all possible post purchase hassles. Advertisement for raising appropriate interest in the product. It is the prerogative of the company to draw an advertisement strategy and execute it in a way that it creates enough interest in the minds of the consumer.

4.2 What can be done now? To look into what can be done now, we shall look into a few options Know your iPhone If Apple had a special programme for iPhone that are purchased for gifting purposes, say Know Your iPhone, in which the beneficiary of the gift is invited to the store to give a good introduction to the product such a situation wouldnt have risen. In this program an expert could invite him to the store according to the consumers convenience and give a good introduction and also clear all his doubts and other common FAQs the consumer wouldve felt more comfortable with the phone.

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More Research The consumer could look up for more information on different forums and other reliable sources to gain a better perception of his iPhone. As he already knows that this ill feeling towards the iPhone is because of his disinterest towards Apple products this might be helpful. Professional Advice The consumer could also go for professional advice from any Apple store or other Mobile Arenas to gain a better understanding of his needs and matching it with the product. This would help him make a more informed decision. Extended Exchange Policy The Manufacturer, Apple, Can provide a scheme called EEP or Extended Exchange Policy by which consumers could extend their exchange period to more days by paying a reasonable amount which would help sceptical consumers to make a better decision .

5. Conclusion:
Ian had been gifted Apple iPhone 4s by his girlfriend Molly. Ian does not like Apple and had been an admirer of Samsung galaxy S2, he was waiting for his Blackberry contact to expire so that he could buy a Samsung android phone, but as his girlfriend gifted him Apple iPhone 4s he reached a psychological state of avoidance acceptance conflict. He now wanted to avoid the Apple iPhone 4s and accept the Samsung galaxy S2 phone. As being a marketer we need to change this state of Ian to acceptance acceptance at the least as in being an admirer of Samsung we can pitch in points of similarity and somewhere a satisfactory neutral state where Ian would not believe in avoidance of Apple iPhone 4s. Such an acceptance state is also important as rather being a forced d ecision from Mollys side it will be an empowerment choice for him to accept even Apple iPhone 4s happily rather than sticking to the perception that Samsung was better. Stated clearly in the case is that phones are pretty identical in terms of functionality as well as price. Hence it is important that the conflict state must be changed.

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