Tuesday, June 4, 2019

Expanding The Market Share For Apples Iphone Marketing Essay

Expanding The Market Share For orchard apple trees I skirt Marketing EssayA Marketing enquiry project for the MSc planetary Marketing Management programme 2010/11Executive SummaryThe purpose of this explore was to insure how to incr residuum the market share of the iPh nonpareil in China. In regulate to conduct the study, the trade inquiry problem was identified as to determine the needs and preferences of profaneers of smartphones in the Chinese market. In line with the query problem sestet hypotheses were developed to be riddleed.In this project, several research approaches were employ. Exploratory research was conducted to help the researchers obtain a rudimentary understanding and insight into the problems facing orchard apple tree Inc., while conclusive research helped to build upon the findings of the exploratory research. Through searching and reading secondary data, the researchers identified the different portions, in terms of visible factors (e.g., price, qual ity, ease of use), social factors (e.g., fashion purchasing, group identity, symbol of status) and emotional factors (e.g., brand image, appearance, advertisement, etc.), that theoretic eithery should diverge leverage behaviour.Based on the secondary data, a questionnaire was designed and administered to 176 Chinese students in the University of Leeds from 11th to twenty-second November 2010 to collect the primary data of their experiences and satisfactions towards smartphones and the iPhone. The results were analysed using SPSS, and several statistical quizs performed to check whether the hypotheses were accepted in the study.From the project, the researchers found that all the iii factors (physical factor, social factor and emotional factor) individually were closely link up to the lights of iPhone, and in like manner that these common chord factors combined exerted figure out towards the perceptions. Moreover, consumers perceptions toward the iPhone were found to be co lligate to their slip purchase satisfactions as swell up. Gender and income, as the demographic moderators, also have influence on the perceptions and satisfactions of iPhone, although the effect of gender was limited. As a result, the study could be considered as a reference of iPhone to identify their current problems in Chinese market and design corresponding marketing strategy to increase their marketing share in China.Table of Contents1A Marketing explore project for the MSc International Marketing Management programme 2010/11 1 instauration 4Background 6SWOT analysis for iPhone in Chinese market 7 line of work Definition 7Management Decision Problem 7Market interrogation Problem 8Research Components 8Research Approach evolution 8Literature review 81.1.1 animal(prenominal) Factors 81.1.2 social Factors 91.1.3Emotional/Psychological Factors 91.1.4Demographic Factors 9Conceptual instance 11Research Question and Hypotheses 11Research formulate and Methodology 13Research Des ign 13Secondary Research 13Primary Research 141.1.5Research Approach 141.1.6Sampling Design 141.1.7Questionnaire Design 16 guinea pig work 19Analytical Methods 20Results and Hypotheses Testing 21Profile of the respondents 21Factors influencing mobile phone excerpts 211.1.8Factors influencing smartphone preferences 211.1.9Factors related to iPhones 221.1.10Post purchase Satisfaction 23Hypothesis Testing 237. Conclusions and Recommendations 297.1 Conclusion 29The conclusion is shown in the following model 307.2 Recommendations 307.3 Limitations of the Research 318. References 329.List of Appendix 34Appendix 1 Questionnaire 349.2 Appendix 2 Respondents Profile Frequency 399.3 Appendix 3 mean value Value 419.4 Appendix 4 Moderator regression table 44IntroductionThe market for smartphones has been growing continually. The proof of its popularity is that sales of smartphones to end users have reached 54.3 million units in the first quarter of 2010, an increase of 48.7 percent from the same period in 2009. smartphones hold 17.3 percent of worldwide mobile phone devices sales (Gartner, whitethorn 2010).There are currently more than 6 types of operating systems available in the smartphone market, such as Symbian, RIM, Apple iOS, Android, Windows bustling and Linux. The Nokia Symbian holds the highest market share followed by RIM BlackBerry and Apple iOS in the year 2010 (Gartner, May 2010). The players in the market compete by introducing vernal origins and adding value to their phones, since the consumers expect more from smartphones than from basic accept phones (Mintel, January 2010). Creating an image of being a state of the art technology provider may give the positive connotations in the customers head that allow them to plume a higher price, as the strategy that Apple implemented with the iPhone has shown ( data Monitor, May 2010). Even so, according to the fact that 51 percent of the consumers will not buy the phone unless the price come down (Mintel, January 2010), price does clearly matter to them.The factors influencing smartphone purchasing decisions needs to be identified in order to develop mod potential opportunities to create distinctive competencies. This study will cover factors influencing iPhone perception and iPhone post purchase satisfaction. This should give a guide to a successful marketing strategy in the future.BackgroundApple Inc. is one of the major(ip) companies of technology and innovation in consumer products in the world. They provide a wide range of products and services, from laptop and desktop computers to accessories and software services. The company recorded r stock- tacitues of al well-nigh $43 billion during the financial year ending in September 2009 (FY2009), an increase of over 14% since 2008. The increase in revenues was in the first place due to growth in sales of iPhone handsets and the related sales of third-party digital content and applications from the iTunes Store (Data Monitor, May 20 10). But even though China has the highest number of mobile phone subscribers in the world, the sales figures for iPhone in China as reported by China Unicom (Hong Kong) Ltd. are removed behind the rest of the big markets in the world. It took only 30 hours for Apple iPhone to reach over 200,000 sold units in the U.S. in 2007, but it took more than a month to reach the same number in China (The Economic Times, October 2010). One possible factor holding the iPhone back in China is its comparatively high price. Apple and Unicom charge $730 to $1,020 for the iPhone, not including discounts on service, making it more expensive than grey market iPhones brought into the country through places like Hong Kong. There may be up to two million such grey market iPhones in China according to an estimate by Paul Wuh, an analyst finishing China Unicom for Samsung Securities. In addition to this, the Wi-Fi Internet function was initially disabled on Unicoms iPhones to comply with Chinese governm ent rules (Wall Street Journal, Dec 2009), which might also have contributed to the slow take-off of iPhone sales.NOTE Is this a referenceSWOT analysis for iPhone in Chinese marketStrengthsStrong brand nameFocuses RD driving innovationProvides State of the art technologiesOpportunitiesStrong growth in smartphones market segmentContinuing growth in demand for handheld devicesWeaknessesProduct recallsPatent incursionExpensive PriceThreatsIntense competitionDependence on specific suppliersChinese Governments regulationsHigh cost of internet bundle providerReference Data monitor 21 May 2010 Available at http//www.datamonitor.comProblem DefinitionManagement Decision ProblemApple Inc. has encountered some potential limitations for the iPhone in the Chinese market, such as government regulations, grey market opportunities and the high price of the phone. Even though 100,000 iPhone 4s were sold in the first 4 days of handiness (Sutherland, 2010), representing a high demand for the iPhone, the market share in China is still lower than anywhere else in the world. Hence, the management decision problem for Apple could be How to increase iPhone market share in China?Market Research ProblemTo answer the management decision problem it needs to be translated into a market research problem, which the researchers in that respectfore define to beTo determine the needs and preferences of buyers of smartphones in the Chinese marketResearch ComponentsTo clarify consumers perceptions toward smartphones.To determine the factors that influence consumers decision to buy the iPhone.To evaluate consumers post purchase behaviour of iPhone.To discover potential influence of demographic factors on iPhone satisfactionResearch Approach DevelopmentLiterature review check to the secondary data that have been collected for this study, in that respect are 4 main factors that should influence consumers technology buying decisions.Physical FactorsConsumers would look into visible aspects (desi gn) more than software specific aspects (operating system). Three main factors that consumers focus on are good design, the brand of the handset and quality of integrated camera. The consumers hobonot al moods tell the distinction amid the latest innovative phones and other phones. The companies attempts to position themselves, as high technology innovators may not be signifi arouset when consumers do not look for it (Mintel, January 2010). A better design leads to a sense of better usability and help to extend users emotional attachment to the device (Nanda, 2008)Social FactorsAs a rule, in the emerging markets of the world the penetration of mobile technology is higher in the high-income segments of a population. In the developed world a mobile handset is part of the everyday world, while elsewhere it is still considered as a luxury and a symbol of status. Thus, while income is less related to the ownership of a mobile handset in Europe, in China it is still a very important f actor (Castells et al., 2004).To specify on puerile consumers, they want to keep up with the most recent rationalize so there is a quick turnover in their technology adopting behaviour. They were controlled by trend not technology and they fear to be excluded from their group because the lack of technology involvement (Mintel, August 2008). People were influenced by their own group about which phone to buy. The innovation and designs were developed to satisfy consumers social needs (Vincent, 2009). Young users are also more likely to use SMS rather than voice calls than other users, mainly because it is cheaper and because they usually have more time to master the technical skill of texting. For the older, working population where the employer pays the bills the opposite is the general rule (Castells et al., 2004).Emotional/Psychological FactorsThe manipulation of the phones is more than just a communication tool. They become personal objects (Hallns Redstrm, 2002). The common emotional responses among mobile phone users are being cool, chilled out and tuned into a mobile phone culture The thrill and the novelty of the mobile phone What the phones can do for the users are the factors that enable and strengthen the descent.Demographic FactorsThere is a positive relation in the midst of age and price concern. Older buyers would take price as an important factor when deciding to buy a new phone (Mintel, January 2010). As well as teenage buyers, they have a budget constraint due to their limited income. Consequently they would wait until they are certain(a) about their choice so as to avoid making a bad purchase. This concern leads to a brand criterion. In order to reduce the jeopardize of wasting their money, they would stick to the trusted brand only (Mintel, August 2008). Technology goods are a low elasticity product to men. During the recession men still buy new technology goods. Women are more prices sensitive than men and they are also interested in design more than men (Mintel, June 2009). repayable to the two facts that in China ownership of a mobile phone is positively related to income, and that a larger part of the high-income earners are men, there is a gap surrounded by number of male and female users of mobile phones. However, there is a growing market segment targeted at women where the exterior design is the major selling point (Castells et al., 2004).There is also a difference in how male and females perceive and use their handsets female users are not only likelier to tally the phone as a fashionable accessory but also use it as a key channel to maintain personal relationships. This becomes lucid in studies that show that even if more men than women use SMS, women are more frequent users of it than men (Castells et al., 2004).Conceptual ModelFigure 1 Model of Smartphone Purchasing DecisionH1H3H4H5H6iPhonePerceptionsPost purchase SatisfactionDemographic ModeratorsPhysical FactorsH2Social FactorsEmotional FactorsR esearch Question and HypothesesQ1 Is there any relationship between physical factors and the iPhone perceptions?H1 There is a relationship between physical factors and the iPhone perceptions.Q2 Is there any relationship between social factors and the iPhone perceptions?H2 There is a relationship between social factors and the iPhone perceptions.Q3 Is there any relationship between emotional factors and the iPhone perceptions?H3 There is a relationship between emotional factors and the iPhone perceptions.Q4 Is there a relationship between physical factors, social factors and emotional factors and iPhone perceptions?H4 There is a relationship between physical factors, social factors and emotional factors and iPhone perceptions.Q5 Is there a relationship between iPhone perceptions and post purchase satisfactions?H5 There is a relationship between iPhone perceptions and post purchase satisfactions.Q6a Does the demographic moderator of income influence the relationship between iPhone per ceptions and post purchase satisfaction?H6a The demographic moderator of income influences the relationship between iPhone perceptions and post purchase satisfaction.Q6b Does the demographic moderator of gender influence the relationship between iPhone perceptions and post purchase satisfaction?H6b The demographic moderator of gender influences the relationship between iPhone perceptions and post purchase satisfaction.Research Design and MethodologyResearch DesignResearch design is a framework or blueprint conducting a market research project that specifies the procedures necessary to obtain the datarmation needed to structure or solve the marketing problem (Malhotra, 2009 94).The objective of this project is to emend the sales volume of iPhone in China. The first step here was to define the management decision problem and then apply suitable market research approach. There are two types of research designsExploratory An exploratory research was conducted to gain a basic understan ding and insight in the problems faced by Apple Inc. This was done mainly through secondary data. The exploratory research proved that there was some problem and further research was required in order to address it appropriately.Conclusive A conclusive research was conducted to build upon the finding of the exploratory research. It is done mainly to test the formulated hypotheses. The conclusive research is of two types descriptive and casual. The descriptive research was used to identify the relationship between the different variables affecting the buying behaviour whereas the causal research was used to determine the cause and effect relationships between the moderator and the variables.Secondary ResearchThis is one of the most important elements of a market research project especially when there is time and cost constraint. Since the study revolves around a very new, unique and innovative product so the secondary data has been entirely sourced from the quality journals, newspape rs and research articles. In order to maintain authenticity of the data, all the data was compared among each other and this lay the foundation for the development of the research model for the study.Primary ResearchResearch ApproachThe survey method was used to collect the information from the respondents in this research. This method was chosen due to its advantages of ease, reliability, and simplicity along with the fact that it can simultaneously demonstrate the insights into who the actual consumers are, how the consumers behave, and why the consumers behave in certain way (Malhotra, 2009 p214). With the consideration of time and resource constraints, the questionnaires were distributed to Chinese students at the University of Leeds. In addition to distributing the questionnaire face to face to the respondents, an on-line version of the questionnaire was also made available by the researchers to collect data from the respondents.Sampling DesignIn this case, to understand the co rrelations between different types of factors and the smartphone purchasing decision of Chinese consumers and between demographic moderators and the customer satisfaction, the judge sizing was determined according to the four steps of the Sampling Design Process (Malhotra, 2009 p371).Defining the Target PopulationElements of the Sample Prospective purchasers of mobile phones in ChinaSample Units Chinese mobile phone usersExtent Chinese students study in the University of LeedsTime Period November, 2010Sample Frame The Chinese students who study at the University of Leeds were the target population of this research. According to the web page of the University of Leeds (http//www.leeds.ac.uk/info/30313/asia/200/china), the number of Chinese students was 561 when the research was undertaken. Therefore, the sample coat was calculated based on the population size of 561.Sampling Technique Sampling techniques can be classified as non-probability sampling and probability sampling (Malhot ra, 2009 p373). Non-probability sampling was selected for the data collection in this research due to the time and resource constraints the selecting of sample elements was based on the research teams personal judgment and conveniencealecting of sample elements was survey was carried out among different income level.ch could expand the age interval of the re.Determining the sample size The sample size of the research was calculated by statistical method with the formula belown =wheren = sample size requiredN = population sizeZ = number of standard errors (Z=1.96 for 95% confidence level)(Anton, 1995, cited by Palihawadana, 2009)The sample size was calculated at 95% confidence level, thereofn = = 229According to the calculation above, 229 questionnaires were required to be collected in this research. However, due to the time and resource constraints, instead 76% of the required sample size or 176 questionnaires were to be included in this research.Questionnaire DesignA questionnaire was designed to collect the quantitative primary data. According to the literature review, threesome factors were embraced in the questionnaire to determine their relevance of smartphones purchasing decision. Besides, collecting basic information of the respondents helped to investigate whether the demographic moderators affected the consumer satisfaction. The questionnaire was designed on the basis of questionnaire design process (Malhotra, 2009 p.331).Information postulate The first step is to make sure the information which should be collected and used to analyse the result. Thus, it is vital to clearly understand the research questions and hypotheses so as to help the questionnaire remain focused. As the respondents are students at the University of Leeds, the wording and style used in the questionnaire was appropriate to their level of education.Type of Interviewing Method The survey was conducted mainly by using personal interviews, accompanied by an internet survey. As a r esult, complex questions were avoided and all the questions were made as detailed and clear as possible so as to avoid any ambiguity.Content of Individual Questions All questions were designed based on six hypotheses. Reviewing the form and structure of related researches helped the questionnaire to be succinct and well-structured, and thus easy for young respondents to answer.Question Design The questionnaire was designed to be as simple as possible to achieve chevvy the willingness to answer of the respondents. Moreover, the questions were oriented to require less effort and to avoid asking for sensitive information.Question structure and operationalisation of the variables Question design7-AttitudinalScalesDichotomous Datamultiple-choice QuestionsQuestionsSocial FactorsPhysical FactorsEmotional FactorsQ 3d, 3e, 3f, 7d, 7e, 7fQ3g-i, 7g-i, 8a-g, 12a-gH1H2H3Q4,Q10,Q14Q1, Q2, Q5,Q 3a, 3b, 3c, 7a, 7b, 7cDemo-graphic ModeratorsQ15, Q16, Q17, Q18, Q19H6Post-purchaseSatisfactionQ13Q6Con structItemReferenceH4iPhonePercep-tionsH5Q11The questionnaire included 19 questions in four pages. In this questionnaire, three formats of questions were designed, which are, respectively multiple-choice questions, 7-attitudinal scales and dichotomous questions. octuple-choice questions were designed in order to get the general information about peoples perception of mobile phones and smartphones, as well as respondents personal information. As respondents are familiar with phones, and the personal information questions are basic background questions, respondents could easily choose a preference choice from the several alternatives. In addition, since the questions were asked in an objective way, the data collected can be taken as reliable.Dichotomous data is that classified into either one of two mutually exclusive values. In the questionnaire, the dichotomous questions were about Yes or No questions about purchasing phones of respondents.Scale questions were used to indicate resp ondents attitudinal preference of the give items or sentences. In the questionnaire, scale questions were designed as the model of 7-attitudinal scale questions. Among most of these questions, 7 represented strongly agree or strongly live up to while 1 represents strongly disagree or strongly dissatisfied, indicating respondents side in a much more detailed manner. All the factors that directly influence the hypothesis can be evaluated in on the 7-attitudinal scale question model, including physical factors, social factors as well as emotional factors. In this way the researchers found it easy to evaluate the factors that influence peoples preferences regarding smartphones according to the data.Question wording Questions in the questionnaire were appropriate, simple and objective. While designing the questionnaire, special attention was given so that the questions did not mislead or prime the respondents in any way. This way the reliability of the data is enhanced.Sections of the questionnaire The questionnaire was divided into four parts Section A Mobile Phones in the Market Section B Smartphones in the Market Section C iPhone and Section D Personal Information. In Section A, it the respondents general perception about mobile phones was explored in Section B, the questionnaire tried to get an idea of Chinese international students preferences towards smartphones at Leeds University in Section C, the questionnaire focused on the attitude towards iPhone among Chinese students at Leeds University and in the last part, Section D, it is appertained that all the respondents provide their basic personal information, which is an essential part of demographic factors as it would help the researchers to test Hypothesis 4 as a reference. Among the first three sections, equivalent attitudinal questions are asked in order to make a comparison among students attitude towards feature phones, smartphones and the iPhone. Also, all these three parts contained questions abou t physical factors, social factors and emotional factors that could influence peoples decision while buying phones.Form and Layout The questionnaire was designed in a way that would inspire the respondents willingness and interest to finish it. This was done by way of keeping sections clearly defined, avoiding the title or questions within a section to be separated between alternatives in two pages. Additionally, certain care was taken to give the questionnaire an appealing look, and the university logo was added to give a serious and trustworthy impression. pilot testing Before collecting data from Chinese students in Leeds University, a pilot testing was made among five Chinese students at different schools, to test the practicability of the questionnaire. The suggestions from the five respondents were taken into consideration. The questionnaire was then complemented with some new alternatives, covering more situations and factors in a better way. While doing the actual survey, it was concluded that the respondents of the questionnaire perceive it to be much easier to answer all the questions after the views of the respondents of the Pilot project were incorporated.Field workThe duration of data collection was between 11th and 22nd of November 2010, when 176 questionnaires were distributed by the six members of the research team. The researchers collected the data from Chinese students by requesting them to fill out the questionnaires on the campus of the University of Leeds.Analytical MethodsIn this study, a variety of statistical methods were used to analyse the data which had collected from 176 respondents, in order to understand whether the physical factor, social factor and emotional factor significantly relate to iPhone perceptions, whether these three factors combined together and affected iPhone perception, whether there is a relationship between iPhone perceptions and post purchase satisfaction, and whether demographic factor could be considered as a moderator influences on the relationship between iPhone perceptions and post purchase satisfaction according to the conceptual model. The following are the methods adoptedBi-variate regression analysis was used to calculate whether there was a relationship between the respondents preferences regarding the different factor (independent variable) and their perception of iPhone (dependent variable). This method was also used to test whether there was a relationship between the perception of respondents towards iPhone (independent variable) and the post purchase satisfaction (dependent variable). When measuring the importance of demographic moderating variables affect the satisfaction of iPhone (dependent variable), bi-variate regression analysis was be used as well.Multiple Regression analysis was conducted to analyse the degree of connection between three factors in terms of physical factor, social factor and emotional factor (independent variables) and the perception of iPhone (de pendent variable).Results and Hypotheses TestingProfile of the respondentsAmong the 176 respondents, 63 of them (35.8%) were male while 113 of them (64.2%) were female.72.7% of total sample are between the age of 20 and 23.Merely 13.1% of the respondents came from families with the family income level of less than RMB 5000 per month.61.4% of all the respondents studied in Business School.64.8% of the respondents have postgraduate educational level.The largest percentage of respondents came from East China, accounts for 43.8%, while only 5% of the respondents came from Northeast China.Factors influencing mobile phone choicesFactors influencing smartphone preferencesAccording to the questionnaire result, physical factors were the most important factors that influenced peoples purchasing of smartphones, with an average out score of 5.77 on the attitudinal scale while social factors were the least important with an average score of 4.65.Among the physical factors that influenced respon dents decision of buying smartphone quality was the most important with an average score of 6.21, while price was the least important with 5.17. Among social factors, pursuing fashion was the most important with an average score of 5.10 while group identity was the least important with 4.40. As to the emotional factors, the appearance of the smartphone was the most important in respondents sound judgement with 5.80 average score, while advertisements were of least importance with 4.09.As mentioned about the functions of smartphones, which are part of emotional factors that influencing peoples decision of buying smartphones, the function of browsing the websites was the most captivating with an average score of 5.70 while the function of video was the least important with 4.51.Factors related to iPhonesRegarding the iPhone, emotional factors were the most important factors affecting respondents purchasing behaviour with an average score of 5.26, while the social factors were the le ast important with 4.37.Among the physical factors, most of the respondents agreed with the sentence iPhone has a high quality, with this factor getting the highest score of 5.47. At the same time most of them think iPhone is expensive because the sentence iPhone has a reasonable price only registered the average score of 3.72. Within the social factors a majority of the respondents believed iPhone to be a symbol of fashion with the score of 5.65, while few people wanted to buy an iPhone just because their friends or family have one, this factor recording only 3.28. Among emotional factors, iPhone has a good design of appearance was the most agreeable sentence with the score of 5.61, and the sentence The advertisements of iPhone are attractive the least with an average score of 4.79.As to functions, included in emotional factors which influence peoples purchasing decisions regarding the iPhone, the availability of applications through which you can go over websites like Facebook or Youtube was the most attractive with a score of 5.91, while

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