Purpose of the Study

1. To know what consumers think about Apple as a brand & its products.
2. To know the consumer behavior concepts that we studied so far are applied on
Apple.
3. To know the closest competitor of Apple as per the consumers.
4. To know the changes that the consumer wants in the Apple iPhone.
5. To know the things that consumer takes into consideration while purchasing
Apple products.

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Current Situation
Global Scenario
Google's Android software continues to steamroll the competition in smartphones,
posing bigger problems for companies like Apple. Research firm IDC found that
Apple's share of the global market slid to 13.2 percent from 16.6 percent. Handsets
running Android, meanwhile, jumped to 79.3 percent from 69.1 percent.
The decline in iPhone market share can be traced to the lack of a new model since the
iPhone 5 came out nearly a year ago. "Apple's market share was vulnerable to product
launches from the competition but with a new iPhone and revamped iOS 7 coming out
later this year, Apple is well-positioned to recapture market share."

1st Quarter Result of 2013

U.S. Market Shares

 Apple’s smartphone market share inched up for the second month in a row
from a recent low of 41.4% in April to 41.9% in May to 42.5% in June
 Android’s market share decreased slightly from 52.0% in May to 51.5% in
June
 From a year ago Apple’s market share has increased by 3.3 points (39.2% to
42.5%) while Android’s has fallen from 52.6% to 51.5%
 While BlackBerry’s share has fallen significantly from a year ago (4.0% to
1.1%) it did tick up from 0.7% in May
 Windows market share peaked at 5.6% in March and April and has fallen to
4.0% in June

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EU5 Market Shares (Great Britain, Germany, France, Italy and Spain)
 Apple’s share bounced back from May’s 17.8% share to 18.5% in June
 This reversed a five month share decline from its high of 25.6% in December
 Android’s share fell from its all-time high of 70.4% in May to 69.8% in June
 BlackBerry’s share has fallen from 7.0% a year ago to 2.2% in June
 Window’s share crept up to 6.9% in June but has only gained 0.1 point of
share the past two months after rising from 5.4% in December

China Market Shares

 Apple’s share bounced back to 24.7% in June after falling from 25.1% in
April to 23.6% in May
 Android’s share took a bit of a hit falling from 71.5% in May to 67.8% in
June, down 3.7 market share points
 Windows was the big winner increasing its share from 2.9% in May to 4.9% in
June
 However Windows share is down from 6.2% a year ago

Apple: Expectation v/s Reality

Apple continues to outperform its competitors on all objective criteria—profitability,
product quality, brand equity—but the company has been hyped up so much, and for
so long, that even a small disappointment leads to a big hit on the share price.
The trouble is, the expectation market doesn’t operate independently of the real
market—there is also a feedback loop. So now the top has been called, the markets
are looking to justify their newfound scepticism, and this feeds anxiety among
customers and employees. From now on, every problem will be magnified, and every
statement Chief Executive Officer Tim Cook makes will be picked over for signs of
weakness. If prices are raised, Apple will be accused of abusing its powerful position;
if prices are lowered, it means it’s scrambling to retain market share. If Apple
launches too many new products, it means the company has lost the laser-like focus it
had when Steve Jobs was alive; if it launches too few, it means Apple’s executives are
resting on their laurels. All this negative publicity will be overstated, but
unfortunately it affects the way customers behave, so it has a self-fulfilling quality.

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Apple’s current situation reminds us that Newton’s Law of Gravity still holds: What
goes up must come down.

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Market Segmentation & Strategic Targeting
1. Geographic segmentation
Apple iPhone has been released in places which have the coverage of one of
the wireless network provider, the AT&T Cingular Wireless (AT&T). iPhone
only supports this wireless network and due to this, Alaska, Colorado, the
Dakotas, Idaho, Iowa, Kansas, Maine, Minnesota, Montana, Nebraska,
Nevada, New Hampshire, upstate New York and many more are the places
which are not served by AT&T Cingular Wireless will not have iPhones in
their market.
2. Demographics segmentation
 Apple iPhone 3 segmentation is based on gender and age variables.
 Around 2/3 of the 2.3 million US iPhone users are men (Nielsen). The
research done by Solutions Research Group has showed that 63% of
its customers were under 34 years and average age of its customers is
31 years.
 The typical iPhone user is a young, wealthy, male tech geek type.
Youngsters are more interested towards apple iPhone 3 because it
provides a features that are more attracted to youngsters like i-tunes,
video player, net browsing, gaming, and more disk space for
downloading.
3. Psychographics segmentation
Apple very carefully investigates psychology of consumer’s trends and their
life styles. The lifestyle of a person is linked to his or her preference and is
reflected in activities, interests and opinions. Now different people have
different lifestyles. Apple identified this and provided different features for
different people in one phone like touch screen, iPod for a trendsetter
youngster, or calendar and fast web browsing for a sophisticated businessman.
4. Usage Rate
iPhone5 is best for someone already living the Apple i.e. heavy users, those
who invested in companion products or services, iPhone5 is also excellent
choice for someone migrating from a feature phone. Apple has two main

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 target markets for iPhone5: People with older models and those migrating
from dumb phones, and there is a whole lot of the latter i.e. potentials.
5. Benefits
Apple iPhone offers the best, most complete mobile browsing experience. It
offers elegant styling retina display with sharper screen and user friendly
design.
6. Behavioral segmentation
Behavioral segmentation is dividing a market into groups based on consumer
knowledge, attitude, use or response to a product. Apple uses this segment
technique very smartly by the innovations that lead to brand switching.
 Apple introduced its iPhone 3 by considering consumer’s behavior,
their attitudes towards new technological changes.
 What consumer aspects from the one smart-phone that provides
multifunction facilities. Innovations of new features can appeal and
influence in the behavior of customers. IPhone with its new
technological features combines three products into one small and
lightweight handheld device. iPhone3 is a mobile phone with a
widescreen iPod, and the availability of Internet in your pocket with
best-ever applications on a mobile phone for email, web browsing and
maps.
 Apple iPhone users in an era of software power and sophistication
never before seen in a mobile device, which completely redefines what
users can do on their mobile phones hence it get fit in innovations
category by influencing behavioral attitude with their innovative
product.
7. Undifferentiated marketing
Apples target market segmentation is basically undifferentiated because in this
strategy of market coverage where firms ignore the specific market segment
and go after the different market segments with one offer. It is so because
iPhone5 offers so many different features that help them to segment its market
on the basis of psychographic, demographic and behavioural segmentation.
Further iPhone 5 cost is competitive with the brands of same category in

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 smart-phones provide Apple opportunity to serve large pool of consumers of
different segments.
8. The iPhone had made it so easy to use in for their customers, together with all
the functions that everyone needs including personal information management
tools (PIM). But according to Gartner, an IT research company says that the
device is not yet suitable for enterprise use. This is because the phone is
locked down and users could not download extra applications into iPhone.
9. Target
Apple iPhone mainly targets young, affluent people who desire the latest
technology, tend to expect their technological devices to perform many
functions. This was seen as being the market that would most welcome the
iPhone, and would make Apple the most profits.
10. Consumer-rooted segmentation bases
Apple has taken consumer’s social and psychological characteristics to heart
in their advertising efforts for the iPhone. Commercials for the iPhone tend to
show exactly how it could affect your everyday life, without bogging the
viewer down with too many of the technical aspects. One particular
commercial that showcases a phone's fast web browsing speed features a man
watching a scene from “Pirates of the Caribbean,” where a giant squid
envelops a pirate ship. Inspired, the man then searches for calamari in his area
and is directed to a nearby restaurant by Apple's quick web browser.
By highlighting how their phone improves your life, Apple also builds up their
brand characteristics and personality. Known as user-friendly, simple, and hip,
Apple products tend to attract specific personalities – personalities targeted by
marketing efforts.
11. Family life cycle
Apple iPhone caters to all irrespective of their marital status, employment
status as youngsters have craze for apple IPhone, presence or absence of
children.
12. VALS
Action oriented: Apple introduced the highly celebrated iPhone to an
insatiable market continually seeking the next "must have" device. The iPhone
is Apple's latest crowning achievement in lifestyle integration. The iPhone

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enables consumers to manage their lives and entertainment choices all from a
single device, from music to photos, to video, internet browsing and email.
And, by the way, it's also a phone.

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Consumer Motivation
The strategy that apple uses is to arouse consumer’s curiosity. Consumers are
attracted towards the things that are new to them. It creates a desire within the
consumers that they want to know more. Apple Company has aroused the curiosity of
the consumer the information about iPhone 5. People around the world were keeping
guessing, looking for information, and research about what will come out with iPhone
5. Apple’s motivation is to make great products people will love.

1. Extrinsic need
Apple devotees are granite like in their devotion to the brand. An Apple
iPhone is more than just a piece of electronics equipment. It’s a part of buyer’s
own self expression and lifestyle. It is a status symbol in country like India,
china.
2. Product specific goals
Consumers view product quality as inseparable from apple. The company’s
goal is not to be filthy rich, and create products that are designed to break and
wear down to get constant re-buys. The Apple Marketing Philosophy stresses
upon three points- empathy, an intimate connection with the feelings of the
customer, focus and impute. It emphasized that people form an opinion about a
company or product based on the signals that it conveys. The idea is simply to
be the best and perhaps that is one of the reasons why people specifically go
for apple branded products as their goals.
3. Positive goals
As users consumers now expect technology to make their lives easier, more
convenient and more enjoyable. They expect apple to pre-emptively and
intimately understand how its new products will fit with their lives, will make
their interactions more seamless, and help achieve their tasks more intuitively.
4. Rational motives
 Apple is a robust product that is simple to use and functions well.
 Fastest browsing performance
 Fastest gaming performance
 Awesome battery life

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  Incredible look and feel (everyone’s eyes bug out when they hold it, it’s
freakishly light and has zero flex/give)
 Excellent camera, superb display (vivid, accurate color rather than garish
on Android phones).
So, Apple is doing what is necessary to provide it to their customers.
5. Maslow hierarchy of needs
 Social needs: Apple allow consumers to stay connected to their social circles
of family, friends and social media communities (e.g., Facebook).
 Esteem Needs: There is a reason why consumers choose the apple, each brand
conveys an image. Apple (confidence, chic, cool, etc.) to the outside world.
Besides the mere name of the brand apple signifies quality as well as status.
 Self-Actualization: Apple would be a prime example of self-actualization
being fulfilled. In everything Apple has done, they have pushed the limits of
how people create with technology.

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Personality & Consumer Behavior
1. Neo-Freudian theory
 Complaint individuals: Individuals who desire to be loved, wanted
and appreciated generally want to purchase iPhone or Apple products
only to get appreciation from others. These types of individuals are
more likely be attracted to the brand name of Apple.

 Detached individuals: These types of consumers are more likely to

shift to other brands and they may prefer other mobiles of competitors
over Apple.
2. Consumer innovativeness
Apple generally tries to target the consumers who are high on innovativeness
by providing various features and technology in iPhone.

3. Non ethnocentric consumers

iPhone is targeting the non ethnocentric consumers who are tend to evaluate
foreign made products ostensibly more objectively for their extrinsic
characteristics for example( how good apple iPhone is?) for example: All in a

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 beautiful aluminum body designed and made with an unprecedented level of
precision.
4. Ethnocentric consumers
Apple also tries to target the ethnocentric consumers. For instance, after all of the
publicity surrounding Apple’s use of companies like Foxconn in China, it is very
clear in consumers’ minds that iPhones are made in China. Even the labels that exhort
that the products are “Designed in California” don’t necessarily convince US
consumers that the iPhone is a particularly US product.
5. Consumer Dogmatism
Apple generally face problem of consumers dogmatism in India. Old age
customers who are not familiar with the Apple iPhone features display rigidity
towards the unfamiliar and toward information that is contrary to their own
established beliefs about the product.
6. Other directed consumers
These consumers rely more on their own beliefs, values and standards and
more likely to try the new products launched by the Apple. They will be the
first one to try them.
7. Other directed consumers
These individuals are less likely to innovate with the products
8. Need for Uniqueness

Apple through this ad is trying to attract the consumers who want unique
features in product. This is an ad of iPhone 5 which displays that how pictures
of group of people can be taken in one frame.

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9. Optimum Stimulation Level
Consumers who are high on optimum stimulation level are the ones who like
to explore various brands of mobiles phones such as iPhone, Samsung, Nokia,
Micromax, HTC and then purchase mobile.

10.Variety Seeking
These individuals want variety in their life and like to try many things. In
order to attract these consumers iPhone gives variety of features in one iPhone
11.High Need for cognition
Apple is trying to attract the consumers who want high level of information
and see less on the backgrounds. These consumers generally search for
product related information in every ad.
12.Low Need of Cognition
Apple uses more graphics only to attract the consumers who have low need for
cognition.

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13. Visualizers
Through the above ad Apple is trying to target the consumers who are
visualizers
14.Information Influence
There is a positive word of mouth for Apple everywhere. This positive word
of move influences the consumers to purchase Apple products.
15.Value-expressive influence
Consumers also want to enhance their social standing by purchasing Apple
iPhone. Consumers generally attempt to be similar to those with whom they
interact and compare themselves.
16.Utilitarian influence
When any consumer wishes to purchase Apple iPhone there is a peer pressure
that restricts an individual to purchase of Apple iPhone of higher price.
17.Personality and color
Color being offered in apple iPhone are black, silver and white. These specific
colors associate personality factors for example:
 White color symbolises goodness, purity chastity,cleaniness,
delicacy,refinement, formality.
 Black color symbolises sophistication, power, authority, mystery.
 Silver color symbolises regal, wealthy, and stately.

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18.The Anthropomorphic

Apple has posted their iPhone User's Guide for all those of you who can't get a
hold of one, and all throughout are references to 'iPhone'.
19.Self image
Self-expressive benefits provide an opportunity for someone to communicate
his or her self-image. They heighten the connection between the brand and the
customer by focusing on something linked to his or her personality. Self-
expressive benefits focus on the act of using the product, as opposed to the
emotional benefits associated with the result of using the product.
A self-expressive benefit can include the elegance and the feeling of being
cool projected by the Apple iPhone

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Consumer Perception
1. Perceived Quality
Consumer’s perceived quality of a product (or service) is based on a variety of
informational cues that they associate with the product. Some of these cues are
intrinsic to the product and others are extrinsic. Intrinsic cues for Apple
iPhone is the characteristics of phone itself such as size, color, etc. Consumers
of iPhone generally base their evaluation of iPhone quality on intrinsic cues.
2. Product positioning
Apple has positioned itself brilliantly in the minds of consumers by offering
unique customer experience which is different from the competitors.
“If you don’t have an iPhone, then you don’t have and iPod in your phone
with your music and playlist”
3. Halo Effect
The popularity of Apple’s iPod has generated enthusiasm for its other products
and has helped in establishing halo effect for Apple’s other brands.
4. The Differential threshold
Apple every time brings in products which are different in features and prices.
These differences are higher than just noticeable difference of the consumers
and this difference is clearly noticeable for consumers. When Apple increases
the pries of its iPhone every time a new model is launched this may become
sometime negative for Apple.
5. Selective exposures
Consumers actively seek out messages that they feel pleasant and which are
related to their purchase decision. The consumers who want to buy mobile,
they will probably give more attention to the advertisements of various brands
of mobile and they will evaluate the various brands on the basis of different
parameter. These people are the potential consumers for Apple.
6. Selective attention
People vary in terms of the kind of information in which they are interested
and the form of message and type of medium they prefer. People who are
interested in price, appearance, and social acceptability of the product are
more likely to be attracted to ads of Apple iPhone shown below.

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7. Product Placement
Apple invests highly on the product placement in the Movies and TV Series.
In 2010, Apple wins Product Placement Award. Apple products appeared in
ten (30%) of the 33 films that were number one films at the US box office in
2010.
 In the Movies
In 2009 and 2010 alone, the following films featured Apple products
but didn’t make #1 at the box office: Morning Glory, Somewhere, Repo
Men, Hereafter, Machete, Greenberg, Catfish, Dinner for Schmucks,
Lottery Ticket, Solitary Man, Going the Distance, Chatroom, Hot Tub
Time Machine, Please Give, She’s Out of My League, Chloe, Killers,
Book of Eli, The Spy Next Door, When in Rome, High School, Cats
and Dogs 2, Step Up 3D, Gulliver’s Travels, Percy Jackson and the
Olympians, Knight and Day, You Again, Vampires Suck, Drag Me to
Hell, Orphan, I Love You, Man, Duplicity, Crank 2: High Voltage,
Ghosts of Girlfriends Past, Imagine That, Sorority Row, Answer Man,
Post Grad, I Love You Beth Cooper, All About Steve, Hurt Locker,
New York, I Love You, It’s Complicated, Road Trip: Beer Pong, Law
Abiding Citizen, Fantastic Mr. Fox, Funny People and Couples Retreat.

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 Movies Apple Product Placement Value
Fast Five $9,67,025
Green Lantern $15,57,903
Transformers: Dark of the Moon $30,40,437
Rise of the Planet of the Apes $40,62,157
Little Fockers $40,68,043
Diary of a Wimpy Kid $57,95,265
No Strings Attached $59,01,292
Mission Impossible: Ghost Protocol $2,35,48,020

Fast Five

No Strings Attached

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The Twilight Saga

Iron Man

Percy Jackson: The Lightning Thief

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 In the News Channels

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  In the TV Series
The Vampire Diaries

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Modern Family

Prison Break

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Simpsons

Dexter
Dexter owns an Apple laptop, and the Apple logo is prominently displayed
throughout the show.

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House of Cards

Californication

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House

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Consumer Learning
1. Motivation
Apple through their ads and through placing its products in Movies & TV
Series teaches the motivated consumer, how their product will fulfill the
consumers’ needs. Unfilled needs lead to motivation. Therefore, they may
seek information concerning the prices, quality, and features.
2. Cues
Apple Store, Apple Logo, Apple iTunes, Advertisements, etc. all serve as cues
which constantly remind consumer about the Apple Products.
3. Product Line Extensions
Apple initially introduced Mac-Book then, it added iPhones, iPods and iPads.
4. Family Branding
Apple works on a family branding as all its products are marketed under the
same brand name. As we can see in the advertisements on TV, after every ads
the logo of Apple displays.

5. Product Differentiation
Apple adopts product differentiation strategy as its products are completely
different from that of the competitors. In the case of Mobile Phones, all the
major competitors work on Android while Apple iPhone works on an IOS
operating system.

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6. Positive Reinforcement
Apple in their advertisements only talks about the good things as how it can
fulfill your needs.
7. Customer Satisfaction (Reinforcement)
Apple provide good quality product as well as its after sale services are also
good. For example, if your Apple product is having a problem and you go to
Apple service store they will immediately rectify the problem and if it is not
possible then, they will immediately replace it with the new one.
8. Encoding
Apple uses its stylish and distinctive insignia which help consumers in
encoding the brand.

9. Consumer involvement
Apple products represent high-involvement purchases because of its high
perceived financial risk as well as social risk.
10.Central Routes
In case of Apple, a central route is applicable as it deals in high-tech products
which require high-involvement purchases. Therefore, it don’t require any
endorser to endorse the product as in its ads it talks about the features.

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11.Brand Equity
Apple is the well-known brand name. Its name has become global, “cultural
icons” and enjoy powerful advantages over the competitors.
12.Co-branding
 Nike & Apple
Nike and Apple brought music and exercise together when they
developed the Sports Kit, a wireless system that allows shoes to talk to
an iPod.

 Apple & HP
HP and Apple have released a co-branded version of Apple’s iPod, the
latest in electronic consumer cool.
For iPod, Apple brings the innovation, the cool product design, the
reputation and the funky brand. HP brings a brand that stands for
business computers, reliability, and conformity to industry standards—
qualities that do not represent iPod.

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Consumer Attitude Formation & Change
Consumer behavior specialists specializes that consumers improve some negative and
positive emotions that help forming consumer’s attitude towards a brand or product.
Consumers have different attitude and they gain them during their experiences. A
person is not build with an idea that iPhone is better than Samsung Galaxy. How we
get those attitudes? It is important for consumer researches to understand the nature
and power of attitude.
1. The Attitude-Towards-Object model
This model is suitable for measuring attitude towards a product (or service)
category or a specific brand and evaluation of certain product-specific beliefs
and or attributes. Now this is where Apple iPhone scores high. Attitude of
consumers towards Apple iPhone is pretty positive and favorable and
consumers believe that iPhone have an adequate level of attributes that they
evaluate as positive.
2. The Attitude-Towards-behavior Model
This model is designed to capture the individual’s attitude toward behaving or
acting with respect to an object rather than the attitude toward the object itself.
Now this is where Apple iPhone fails. The attitude toward behavior (i.e.
purchase intention) is not skewed in favor of the Apple iPhone in India.
3. Personality factors:
Personality also plays a critical role in attitude formation. For example,
individuals with a high need for cognition (i.e. those who crave information
and enjoy thinking) are likely to form positive attitude to ads that are rich in
product- related information.
Apple iPhone publishes ads that are rich in product related information in
order to attract people who score high in need for cognition.
4. Attribution theory
Consumers generally have internal attribution for Apple iPhone as Apple has
build a brand image in the minds of consumers and consumers buy iPhone
only because of the brand name and not because of any external attribute.

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5. Central route
Apple generally adopts central route in their advertisement in order to change
the attitude of consumers as consumers actively seeks out information relevant
to the attitude object itself.
6. Changing the overall brand rating
Apple has tried to change the overall brand rating of iPhone through its
advertisement by using a statement “Loving it is easy that’d why so many
people do”. With this ad Apple is trying to set its brand iPhone apart from all
its competitors.

7. Utilitarian function
Consumers hold certain brand attributes particularly because of brand’s utility.
If a product of Apple has been useful or helped consumer in past, consumer’s
attitude towards Apple tends to be favorable. For example, iPhone have
several features and benefits in mobile phones.

8. Adding an Attribute
Apple had added an attribute by bringing technological innovations in Apple
iPhone. It brought technological innovation by launching iPhone 6 with iSight

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 Pro camera in international market. By launching this new model of iPhone
Apple is trying to attract innovators.

9. Components of Tri-component Attitude Model

 The Cognitive Component: According to this component of this
model if a consumer will develop some belief and attitude towards
Apple iPhone only on the basis of past experience and acquiring
relevant information about Apple from other sources.
 The Affective Component: The affective component is a consumer’s
emotions and feelings about iPhone or Apple brand.

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Communication and Consumer Behavior
Apple is using stylistic properties of ad picture to communicate with consumers.
1. Exposure effect
When Apple released the iPhone 5, what made consumers to stand in line and
compete with other Apple loyalists for the limited supply available on the first
day? Was it because they needed a new Smartphone to communicate with
their friends and family? Were they interested in the new upgrades or apps?
Do they even know why they needed to purchase the new iPhone5?
Perhaps it was because they were constantly bombarded with information
about the iPhone5 in a variety of forms: Facebook advertisements, tweets on
Twitter, or pictures of the iPhone on other social media sites. This generally
tells how many consumers were exposed to the message conveyed by iPhone
in their ads.
2. Persuasive effect
As per how many consumers were generally able to receive, understand and
interpret message conveyed by iPhone in their ads. It will help the marketers
of Apple to evaluate that how many consumers correctly encoded an ads.
3. Sales effect
This helps to measure the effect of ad on sales of Apple iPhone.
4. Comparative advertising
Through this ad Apple is trying to claim its product (iPhone) superiority over
Samsung’s smart phone. This type of comparative advertising has been done
by Apple as they were confident that comparative ad will exert positive effect
on brand attitudes, purchase intentions and actual purchases of consumers.

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5. Buzz
Whether it's launching its latest iPhone or iPad, Apple sure knows how to
create buzz with consumers and the media (recent maps debacle aside). While
other companies fight for attention, Apple seems to effortlessly dominate the
media--not to mention the hearts and minds of customers--with its new
product launches. Apple created a cliffhanger as the media and bloggers
speculated, “What could it be--the new iPhone 5 or something else? All the
bottom-up speculation in the media and blogosphere generated phenomenal
consumer interest--for free. Only after weeks of free buzz did Apple launch a
paid media campaign to keep the momentum going.
6. Viral marketing
Viral marketing leverages the power of word-of-the-mouth publicity to
promote products or services. It is a form of entertaining online advertising is
increasingly gaining traction due to its cost effectiveness and power.

The loss of the next generation iPhone looks like a go for viral marketing.
7. Advertising
Apple also does billboard advertising in various countries. It has also done lot
of advertisement in metro stations.

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8. Celebrities endorsement
In the most recent Apple iPhone advertising campaign promoting and humanizing the
phone’s Siri feature, the company decided to recruit the quirky actress/indie
songstress Zooey Deschanel and high profiled celebrity, Samuel L. Jackson to
showcase Siri’s capabilities. The ads are short, sweet and honestly not all that
exciting with Jackson and Deschanel giving Siri orders while acting like “every day”
people. They follow the company’s marketing strategy of depicting “normal people
doing amazing things with Apple products”.
9. Advertising and Public Relations
Apple advertises in all ways, through television, phone companies,
newspapers, and online. The way Apple advertising brings their consumers in
to what pay close attention to what the product has to offer. Most of the time
they are able to catch the attention of their target market and have them
purchase any product they are advertising. When Apple is advertising on
television, they make sure to do it in a smooth manner. They show how light
weight their products are, how fast it is to access any app of even browse the
web. When using product advertising, Apple goes into depth about their
products. They want to inform consumers on how well their newly made
product works and its benefits to you as the consumer.

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10.Comparative Reference groups
Comparative reference groups are the upper level executives at one’s place of
employment as their lifestyle, clothing and possessions like an iPhone admires
these individuals to purchase iPhone.

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The Family and Social Class
1. Consumer socialization
Consumer socialization which is defined as a process by which children
acquire the skills, knowledge, attitude and experience necessary to function as
consumer. They have different attitude just by purchasing a brand name apple
which comes under premium class category. Apple iPhone enhance a skill set
of an individual as it can improve your English speaking skills for business
and academic needs.

2. Growing up in a materialistic world

That’s true that we are being nurtured in the world of materialism. Earlier
children at the age of 5 to 10 were satisfied with the things lie dolls, cars, bikes
but these unsatisfactory needs come to the new innovative applications
provided in smart phones of Samsung, apple. They are addicted to the
applications in the phones.
3. Social class
Social class and status are key factors to the younger generation, because the
power of the consumer market is so great. This isn't new, in fact, as social
class has been dominated by varying factors over the years, from cars to
houses, and in most cases this still exists. Carrying the iPhone reflects the
status symbol and social standards of the person which apart from the status
provides them inner satisfaction
4. Class consciousness
Apple iPhone is a premium class product so people buys it for the sake of
consciousness of class.
5. Single variable index
This uses only one socio-economic variable to evaluate whether it is
occupation, education or income
Apple iPhone can relate to the income variable, if the individual have high
earnings he can easily purchase the apple iPhone to satisfy his need.

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6. Geo-demographic clusters
A segmentation strategy that uses both neighborhoods and demographic
variables e.g. income, occupation
Apple iPhone introduced various series of phone but now it is launching its
new iPhone5S which is targeting the people of high income level and blocks
of elite class people.

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Introduction to Research Methodology
Research Methodology comprises defining and redefining the problem, formulating
hypothesis or suggesting solution, collecting, organizing and evaluating the data,
making deduction and reaching to conclusions and determines whether the formulated
hypothesis is right and wrong.
Research Methodology is a way to solve research in study and solving research
problems along with logic behind them are defined through research methodology.
Thus while talking about research methodologies we are not only talking of research
methods but also consider the logic behind the methods.
During my project, I collected data through various sources primary & secondary.

Research Design
A Research design is purely and simply the framework of plan for a study that guides
the collection and analysis of data. The study is intended to find the consumers
preference towards the Apple products. The study design is descriptive in nature.
Research design is the conceptual structure within which the research would take
place. The presentation of such a design facilitates research to be as efficient as
possible yielding maximum information.

Type of research design used

Descriptive
I used a descriptive type of research. Descriptive study is a fact-finding investigation
with adequate interpretation. It is the simplest type of research and is more specific.
Mainly designed to gather descriptive information and provides information for
formulating more sophisticated studies. It is one which includes surveys and fact –
finding, Enquiries of different kinds. The major purpose of such research is
description of the state of affairs, as it exists at present.

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Sources of Data Collection
There are 2 types of data. They are:
a) Primary data
b) Secondary data

Primary source are those, which are collected afresh and for the first time and
thus happen to be original in character. Primary data will not only be relevant for
research project but it is also reliable, accurate and dependable. It includes-
1) Discussion with team members
2) Discussion with consumers
3) Data collected from questionnaire.

Secondary source are those which have already been collected by someone else
and which have already been passed through the statistical process. For my research
data has been procured from both primary and secondary sources. Dealers, customers
and organization constituted the primary source. Newspapers, magazines and websites
constituted the Secondary data.

Research Approach
There are 2 basic types of approaches to research. They are,
a) Quantitative Approach
b) Qualitative Approach

Quantitative Approach involves the generation of data, which can be subjected

to rigorous quantitative analysis in a formal and rigid fashion. This approach can be
further sub classified into inferential, experimental and simulation approaches to
research. The purpose of inferential approach to research is to form a database to infer
characteristics or relationships of population.

Qualitative Approach to research is concerned with subjective assessment of

attitudes, opinions and behavior; research in such a situation is a function of
researcher’s insight and impressions.

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In this research a Quantitative as well as Qualitative approach was used.

Research Instruments
The various research instruments at the hands of the researcher are as follows: -
a) Interview: It involves presentation, oral-verbal, stimuli and reply in terms of
oral-verbal responses. This method can be used through personal interviews
and if possible, through telephone interviews.
b) Questionnaires: It consists of number of questions printed or typed in a
definite order on a form or a set of forms; the respondents have to answer the
questions themselves.

Sample Size
Selection of study area: The study area is BULMIM.
Selection of the sample size: 80

Sampling Methods
Convenience method of sampling is used to collect the data from the respondents.
Researchers or field workers have the freedom to choose whomever they find, thus
the name “convenience”. About 80 samples were collected from BULMIM and most
of the respondents were customers who were using or used Apple products.

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Ques. Have you ever owned any Apple products?

Particulars No. of Respondents (in %)

Yes 41%
No 59%

Interpretation: When we asked respondents that how many of them own any
Apple product then, 59% of the students said that they own Apple products and 41%
don’t own any Apple product.

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Ques. How long have you been using Apple products?

Particulars No. of Respondents (in %)

Less than 1 year 80%
1 - 2 years 16%
3 - 4 years 3%
5 or more 1%

Interpretation: When we asked respondents who own Apple product that from
how long they have been using Apple product then we analyzed:
 80% of respondents who own Apple product have been using Apple
from less than 1 year
 16% of respondents have been using Apple from 1-2 years
 3% of respondents have been using it from 3-4 years.
 Only 1% of them have been using it from more than 5 years.

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Ques. What do you think about the price of the Apple product?

Particulars No. of Respondents (in %)

Very High 95%
High 5%
Average 0%
Low 0%
Very Low 0%

Interpretation: When we asked 80 respondents about what price of the Apple

products by asking closed ended question and giving options, 95% of respondents
said they feel that price of Apple products is very high and 5% feel that price of Apple
is high.

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Ques. What factor would affect your decision on purchasing iPhone?
1. Price

Rank No. of Respondents (in %)

1 34%
2 13%
3 19%
4 16%
5 9%
6 3%
7 6%

Interpretation: 34% of respondents ranked price as the major factor in their

purchasing decision. 13% of respondents ranked price as 2 nd most important factor.
19% ranked 3rd, 9% ranked 4th, 3% ranked price as 5th most important factor and 5%
ranked price as 6th most important factor that affects their purchase decision.

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 2. Functions

Rank No. of Respondents (in %)

1 29%
2 32%
3 13%
4 13%
5 7%
6 3%
7 3%

Interpretations: 32% of respondents ranked functions as the 2 nd most importance

factor in their purchase decision, 29% ranked functions as 1 st factor, 13% of
respondents ranked functions as 3rd and 4th factor, 7% of respondents ranked functions
as 5th factor and 3% ranked function as 6th and rest of the 3% ranked it as 7th factor.

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 3. Appearance & Design

Rank No. of Respondents (in %)

1 7%
2 8%
3 13%
4 36%
5 30%
6 3%
7 3%

Interpretation: 7% of respondents ranked appearance as 1st factor. 8% of the

respondents ranked appearance as 2nd factor. 13% of respondents ranked appearance
as 3rd factor. 30% of respondents ranked appearance as 5 th factor. 3% of respondents
ranked appearance as 6th factor and rest of the 3% ranked appearance as 7th factor
affecting their purchase decision.

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 4. Social Trend

Rank No. of Respondents (in %)

1 21%
2 17%
3 37%
4 12%
5 10%
6 3%
7 0%

Interpretation: 21% of respondents ranked social trend as 1 st factor. 17% ranked

social trend as 2nd factor. 37% of the respondents ranked social trends as the 3 rd most
important factor. 12% ranked social trend as 4th factor. 10% of respondents social
trend as 5th factor. 3% ranked social trend as 6 th factor affecting their purchase
decision.

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 5. Family & Friends Influence

Rank No. of Respondents (in %)

1 7%
2 29%
3 18%
4 20%
5 25%
6 1%
7 0%

Interpretation: 7% of respondents ranked family & friend influence as 1st factor

affecting their purchase decision. 29% of respondents ranked family and friend
influence as the 2nd most important factor. 18% ranked family & friend influence as
3rd most important factor. 20% ranked family & friends as 4 th factor. 25% ranked
family and friend influence as 5th factor and rest of the 1% respondents ranked family
and friends as 6th most important factor affecting their purchase decision.

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 6. Brand Name

Rank No. of Respondents (in %)

1 0%
2 0%
3 0%
4 3%
5 9%
6 57%
7 31%

Interpretation: 3% ranked brand name as 4th most important factor. 9% ranked

brand name as 5th most important factor influencing them to purchase any mobile.
57% of respondents ranked brand name as 6th important factor. 31% of respondents
ranked brand name as 7th important factor affecting their purchase decision.

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 7. Variety of Applications

Rank No. of Respondents (in %)

1 0%
2 0%
3 0%
4 0%
5 4%
6 29%
7 67%

Interpretation: 4% of respondents ranked variety of applications as 5th important

factor. 67% of respondents ranked variety of application as 7th important factor. 29%
ranked variety of applications as 6th important factor affecting their purchase decision.
Therefore, it is clear that price, functions, social trends and influence of family and
friends are the most important factor affecting the purchasing decision of respondents.

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Ques. Why do you choose Apple products?
1. Fashionable Design

Rank No. of Respondents (in %)

1 13%
2 22%
3 30%
4 22%
5 13%

2. Appropriate Price

Rank No. of Respondents (in %)

1 15%
2 13%
3 30%
4 25%
5 17%

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3. Multiple Function

Rank No. of Respondents (in %)

1 17%
2 22%
3 17%
4 17%
5 26%

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4. Fame of Brand

Rank No. of Respondents (in %)

1 26%
2 17%
3 9%
4 30%
5 17%

5. High Quality

Rank No. of Respondents (in %)

1 22%
2 30%
3 22%
4 9%
5 17%

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Interpretation:
When we asked our respondents to rank on various dimensions as to why they choose
apple product,
1. 13% of the respondents ranked fashion design as number 1 criteria for
choosing apple products, 22% of the respondents ranked fashion design as
2nd most criteria. A large chunk of respondents i.e. 30 % of them ranked it on
number 3 position. For 22% of the respondents, fashionable design holds 4 the
rank and the rest 22% respondents ranked it on 5th place.
2. For 15 % of the respondents price was the top most reason and they ranked it
number 1. 13% of them ranked it at 2nd position. A large number of
respondents (30 %) ranked it as 3. For 25% of respondents it holds 4 th position
and rest 17% of them ranked it as 5.
3. Out of 80 respondents, for 17 % of respondents multiple function holds
number 1 position on their priority list, 22 % of them ranked it as number 2
criteria for apple product purchase, 17% of them ranked it 3,again 17 % of
them multiple functions holds 4th position and the rest 27% gave it 5th rank.
4. For 26% of the respondents,fame of apple brand is number 1 criteria for their
purchase of apple product. 17 % gave it 2 nd rank, 9% of the respondents
consider is at 3rd most important factor. For 31% of them it holds 4 th place and
rest 17% ranked it on 5th position.

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5. For 22% of the respondent high quality holds the most important criteria for
purchase of apple product. 30% ranked it on 2 nd position. For 22% of them it
holds 3rd position, 9% of them ranked it on 4th place and 17% on 5th position.

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Ques. How do you like Apple products?
Particulars No. of Respondents (in %)
Cannot live without them 6%
Like them very much 19%
Interested in them 49%
Just average 17%
Not interested in them 9%
Cannot bear to live together with such products 0%

Interpretation: The graph represents that 49% of the respondents are interested in Apple
products. 19% of the respondents says that they like the Apple products, 17% says just
average, 9% says that they are not interested in having an Apple products and only 6% says
that they can’t live without the Apple products.

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Ques. Are you planning to buy any Apple products in the future?

Particulars No. of Respondents (in %)

Yes 90%
No 10%

Interpretation: When we asked respondents are they planning to buy any Apple
products in future, 90% of respondents said that they are very much planning to buy
Apple product in future and 10% said no and the reason they gave were that the
compatibilities of Apple Products are quite limited.

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Ques.  Do you prefer an Android or an iPhone?

Particulars No. of Respondents (in %)

Android 80%
iPhone 20%

Interpretation: When we asked our respondents whether they prefer android or an

iPhone, 80% of the respondents said that they prefer android and 20% of the
remaining would go for apple.

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Ques. Do you think Apple iPhone is more popular than its competitors?

Particulars No. of Respondents (in %)

Yes 85%
No 15%

Interpretation: When we asked our respondents if they think apple iPhone is more
popular than its competitors, 85% of them said yes and 15 % don’t think so.

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Ques. Would you recommend others to buy Apple?

Particulars No. of Respondents (in %)

Yes 77%
No 23%

Interpretation: When we asked 80 respondents if they would recommend others

to buy Apple, 77% of the respondents would recommend others to buy Apple and 23
% of them will not do so.

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Ques. Who do you think to be the closest competitor of iPhone and Why?

Particulars No. of Respondents (in %)

Samsung 81%
HTC 6%
Sony Ericsson 2%
Nokia 4%
Blackberry 8%

Interpretation: This is an open-ended question and 81% of the respondents replied

that Samsung is the closest competitor of iPhone. Other than this, 8% says
Blackberry, 6% says HTC, 4% says Nokia and only 2% says Sony Ericsson as the
competitor to iPhone.

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Ques. Where did you hear about Apple brand?
 Internet
 T.V.
 Magazine or Newspaper
 From Friends or Relatives
 Apple Store

Interpretation: When we asked this question to our respondents most of them

marked all the options as Apple products (especially iPhone) are visible on all these
options. So, it becomes difficult to make a graph for it.

Ques. What are the improvements you want to be in the iPhone?

Interpretation: This was an open-ended question. When we asked this question,

we got mix reply as everyone wants different improvements but the improvements
that most of the respondents wants are: Bluetooth, Change in Design and Add more
and unique features.

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Findings
1. Apple invests heavily on product placement in the movies and TV series i.e. in
the 10 movies out of the 33, Apple product will be there.
2. Samsung is considered to be as the closest competitor and it also replaces the
Apple as it attained the 1st position in the smart phone market over the globe.
3. There were very advertisements of the Apple.
4. The consumers want numerous changes to be made in the Apple products
especially in the case of iPhone as many wants that its design should be
change and major changes in its features should be brought.
5. Price is the main point that the consumers take into consideration before
buying Apple products as their costs are very high.
6. Some consumers also believe that the Apple’s products are not price worthy.
7. Numerous Consumer Behavior concepts that we studied so far are applied on
the Apple.

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Way forward for the Brand
1. Apple must bring some major changes in the iPhone in order to attain its 1 st
position in the market. The changes especially related to design and features.
2. Apple must bring products in an affordable range so, that more customers can
use Apple products.
3. Since Nokia is taken-over by Microsoft, Apple should be ready to fight against
this.
4. Recently, Samsung has launched Note3 to fight against this Apple must launch
its iPhone 5S or iPhone 6.

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