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Consumer Behavior towards Apple
1
Contents
Page
Chapter 1 : Introduction
no. 3
1.1 About the company 1.2 History of Apple
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1.3 Approach of the company
Chapter 2 : Literature Review 26
2.1 Theory 2.2 Results of various Empirical Research
Chapter 3 : Methodology 4.1 The styles of research. 4.2 The research problem and style chosen. 4.3 Hypothesis 4.4 Research Questions 4.5 Method of Analysis 4.6 Data Sources Chapter 5 : Analysis and Findings 5.1 Critical appraisal of literature. 5.2 Graphical appreciation of data. 5.3 Findings from Analysis Chapter 6 : Discussions 6.1 Interpretation of results of answer to the research question Chapter 7 Conclusion 7.1 Conclusion
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7.2 Limitations of Current Research 7.3 Recommendations for further work. Bibliography Appendix
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Chapter 1 1.1 About the company
3
Apple is one of the top leaders in the consumer electronics market it produces a wide variety of consumer electronics from computes to IPods and earphones which have a separate identity in the market, they are the most selling and trusted products by the consumers. Apple ranks 442 in the largest companies In Forbes list 2011. It has a tough competition in all the consumer electronic products that it produces but it has created a brand value to the customers with its own identity and the unique marketing strategies that it follows. There is havoc in the market whenever a new apple product is launched you will not see 26
such response from the costumers for any other product. 1.2 History of Apple Apple is the most the first and the most common name in the consumer electronics market that you will hear from any passionate consumer electronics user this is because of the brand image that apple has got in the market, to tell about Apple it all started in 1976 when Steven Wozniak and Steven Jobs designed the first of its computer called Apple 1, it had to wait until 1977 as the consumers where not very interested about Apple but when Apple 2 was first presented at a local computer trade show in US it was the only computer which had a computer case and was well presented with colour graphics this brought great change in the market as the customers started ordering apple 2 and the demand increased in an impressive way this gave Apple a great push in the market of computers, then Apple disk2 came in to the market which was the cheapest user friendly floppy drive has taken the sales of Apple to higher levels even. The company started growing at a rapid pace by 1980, Apple 3 entered the market and the company and this was the time when Apple started to sell computers in other countries and they found investors who wanted to take chair the position of directors and the company took a leap in the computer market. Apple has to lose Jobs from the company after his resignation it had to
4
see the first ever loss in the its progress, then Apple launched the Mac2 whish had desktop publishing software which made marketing cheaper, Windows and IBM were the competitors of Apple but Apple has always lead the way doing something extra then the other competitors and never stopped innovation in 2001 apple launched its IPod and then it launched IPhone which is a considered as a status symbol even now. All the products that Apple has launched from the first computer to the Iphone4 apple lead the market with its own mark of satisfying consumers in the electronics market. Apple’s strategy can be stated as the most simplest, on the target and intelligent. It has always proved itself by thinking different from the whole lot group in bringing up innovative and user friendly products. A great cheer to the research and development of Apple because the Apple products are so imaginative, creative, and outstanding that it drags all the potential consumers to buy its products. It is not that costumers are very loyal to the apple products and they purchase the products because they are Apple freaks, the simple reason why people go for Apple is because the percentage of the satisfied and overwhelmed consumers is very high, it is all because of the attention to detail that Apple takes in developing, designing, and introducing a product and the how much ever technology may be involved in the product, it is always user friendly. This makes Apple the most reliable brand, the two only things that you cannot expect from Apple are freedom and choice, because giving choice and freedom in a product leaves gaps in their fulfilment when somebody has got a choice he will look for the best one and everybody does the same this results in the excess sale of a product with certain criteria and the product which has the same features but lacks in some criteria will have see the bottom, this results in competition of the two products of the same company, for example Mobile
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1.3 Approach of the Company
company like Nokia release a new mobile into the market great features an the phone is available in various colours when consumers approach the product and find the best looking colour phone this demotes the sale of other phone with same features, Apple has a great strategy in dealing with the customers as they give a very limited choice and freedom. It always distinguishes one product from the other clearly which gives the consumers a clear idea of what exactly have to go for, Apple never allow its own product on each other as the other companies introduce a phone with excellent features this week and there release into the market, this makes the consumer feel that he made a wrong choice taking that phone, he should have taken the updated version the phone. Apple is very clear in these things and précised that it makes its consumers happy by giving them just that which would satisfy them and keep them happy. The fact that keeps Apple at a safe position in the consumers electronics market is their customer strategy which is best understood by the company and it keeps doing better and better as it has been the trend setter in consumer electronics market, any new product it launches will be a refreshing new product and the people just wanted that change in the product with the hallmark of Apple’s limitations in it. Those limitations work in favour of Apple as consumers get all their apps and software’s from the apple store this increases the revenue and also builds trust of the consumers by satisfying their needs as a one point contact.
Chapter 2: Literature Review Introduction
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will be an updated version or some additions to the same phone and they
This section primarily focuses on the theories and diverse empirical researches about the question of research. The research questions are as following: 1. Illustrate, narrate and define in clear expression the significance of an electronic trade concerning national and international blogs. 2. Emphasize the electronic sectors movement in the market. 3. Create understanding about the relationship of the consumer-producer. 4. Procedures of electronic sector. 5. Consumer’s behavior regarding electronics. 26
2.1 Theories: Appraising the Kumar has defined literature review, as ‘review literatures is a long and continuous process. Starting before a specific problem and carry on until the report is finished’. Executing a literature review involves four steps. They are as follows 1. Examine for at hand literature in relation to your study; 2. Next, reassess the literature selected 3. Create an exploratory framework for the chosen literature; 4. Finally, develop a conceptual structure. 2.1.1 Constantly growing importance of electronics The electronics has expanded its market growth at a rapid speed. It has turned out as a great need for the consumers to make their life at ease. Due to technological progression the electronics have played a signified and dignified role in the major changes of consumer behavior. In fast pace dynamic environment marketing sector creates more opportunities that organizations would like to grab in order to succeed in their future plans and approaches. There is a capacity for the marketers to alter their current marketing channels and to generate new strategies through uninterrupted process. According to
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Chan H. & ethel, 2001 Electronic-vending mainly concerns in deals of sales of goods and services. 2.1.2 Definition of E-Marketing According to Dave Chaffey www.wnim.co.uk, digital technologies that help in channelizing products in online manner, such as emails, database, digital TV or web are the portions of electronic marketing. It has helped the marketers in availing the desired and fruitful results along with retaining its customers by conducts. The individual needs of the consumers are satisfied through communication and online services. 2.1.3 Digital Products Out of so many advantages, the one most distinguish benefit of selling online the digital products is that it is not as expensive as selling physical goods online. Apart from slow pace at the start, it has gradually succeeded in attracting more and more customers with due passage of time. Customers are increasing their online purchase quantity in rapidly changing fast track world. Online shopping has proved to be a great assistant in saving time and energy of the customers. 2.1.4 Electronic transactions In modern era, internet is classified as a new kind of specialization. Its specialization is not limited to just a product line but it has helped the marketers in specializing the types of seller and class of customers. To support my point let us consider the example of Lastminute.com is internet site with a specialization providing the customers an opportunity to buy gifts, travel tickets and entertainment products which can even match to the last minute
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improving their customer’s knowledge about their profiles, visions and
producer also who wants to sell it in quick succession. Above mentioned example clearly narrates the idea that specialization is not only differentiated in the products but also in the types of sellers and class of the potential last moment customers. It also briefed us with a very significant point that this would not have been possible without the invention of the internet.
2.2 Results of Various Empirical Researches APPLE has made its market reputation by establishing itself as a brand and has created a strong goodwill in the electronics market with a cut edge technology. The plain reason for this brand reputability is their innovative and dynamic approach in the market of software’s and hardware’s. The quality of APPLE product speaks for itself. Careful analysis and a close study about the webbased sales clearly indicate that the wide variety of conventional markets offer less to some extent as compare to the online deals. The physical approach towards product requires more effort whereas the online services enable the customers to save their time and put fewer efforts. Another gain of web technology is that it permits business to categorize the line of products and customers to different sites which can even channelize in person according to their sheer experience. This enables the organizations to create precise, accurate and efficient shopping endeavors. John Quelch, dean of the London Business School, states that combination of both online and physical trade could work wonders for any market. On the other hand, numerous others analyze a wider role for hybrid trade in terms of building relationship on personal basis with the customers goes to the market and analyze the trends before purchasing the product. It helps to organize a setup to handle several orders at a remarkable lower cost which is another plus
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With the clear evidence since its emergence in the consumer electronics
point. All of the above mentioned points help the organization in keeping a high profile client along with the motive of satisfying the needs of the customers.
2.2.1 The characteristics of Electronic media: The distinguish characters of buying-selling through electronic means are discussed below: opportunity to customers to go through variety of products. It also enables the customers for placing orders through self motivation. 2. Electronic media works like a search engine that comes over the limitation of traditional modes of selling. This search engine does also play a significant role in the shopping patterns of customers by saving their time and energy doe to prompt methods. 3. The trait of custom-made brand promotions and marketing is key exceptional feature of online trading. 4. It also permits customers for downloading the digital goods and application instantly due to the ability of prompt online delivery to its customers.
2.2.2 Electronic transaction Mix: (Adopted from Emerald Reports) E-Trading Mix defined The sum of all the total goods and services that a company offers via e-mode to online shoppers are the electronic transaction mix (Lazer and Kelly, 1961). To generate more understanding regarding electronic transaction mix, we can say that it is a tool and means blend by the e-retailers to provide the exceptional
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1. Electronic vending offers consumers an online index that gives an
services to its valued customers. The job outline of a marketing individual was explained as a “mixer of Ingredients” according to Culliton, 1948. The marketers’ carryout numerous types of strategies and short term plans by targeting the needs of customers and satisfying them while involve in the process of marketing mix. Neil Borden, 1964 of Harvard Business School was the person who coined the word “Marketing Mix”. “Four Ps- place, product, price, and promotion” are the famous 4Ps of Marketing Mix of E. Jerome general it has played a significant role in the process of organization’s starting from conceiving till its dispatchment in the market and simultaneously, the decision making process has gain a wide spectrum of unusual and realistic directions(Palmer,2004). The decision for APPLE to design their process of decision making in a way to its customers is very vital for maintaining its success as a market leader in the electronic products. P1: Place- Convenience for the customer Place plays a very important role in the marketing for any business because the feasibility of products reaching to its consumers. This helps the business to flourish in all possible directions. Place assist the business in deciding where they would place their product in the market. This can be regarded as “customer’s convenience”, therefore helps in creating the understanding about the level of ease of the clients in purchasing of the product. Despite the fact that online shopping is much easier but some people still prefer the location for products. P2: Product-Customer value and benefits
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McCarthy’s (1960). Not just relaying on the theory principle four Ps but in
“Product”, which is one more P of the 4ps should be well thought-out as a purchaser worth and advantage instead of just being considered as a product that a business has to advertise. It means the package of service a product which a consumer demands from the seller. One of the major setback on online shopping is that consumer can ditch the online product if the information is not clear and complete on the website. It can even puzzle the customer and the mindset can get boggle. Hence, the clear, concrete and precise information about the online product is of a very high about the product is conveyed when they display their product. Conclusion is that the electronic means should be use in a proper way by the e-business to create the value of the product for its consumers. P3: Price- cost to the customers “Price” is one of the most essential things to be considered from the business point of view as company has to decide that at what fair charge the product should be available to the consumers. The product is a cost for the customers so it has to offer the benefits in return to the customers. The price of a product is the sum of all the cost incurred during the manufacturing process. For instance, on all the merchandises there is a manufacturing cost plus the indirect taxes on the consumption of the product. These all charges are included in the price of the final product placed for the customers. The online shopping reduces the prices due to less physical involvements as compare to the shopping in a person. P4: Promotion-Communication and customer service Promotion is a key to success for the business. It is the fourth P which needs to be carefully thought and planned by the organization because it guides the business in an appropriate manner and designs a way to make their product
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importance for business. They must make sure that the complete description
more visible and grasping to the consumers. The better the product is communicated to the customer; the chances are higher that the product will attain its market share. Promotion helps in the creation of a value of a product for the consumers in a deliberate manner. It is also linked with the feedback from the consumers that whether the product is being accepted in the market or not, in case if not progressing well than there is a need of modifying the promotional strategies for the product. Promotion cannot be just a mere advertisement of the brand but it is the communicating of a product in a fine When we carry out a study in depth and detail into our 4Ps, we can notice that there is a similarity with the 7Ps of Kearney (2000) for considering outstanding electronic shopping experiences of the customers. “Packaging” and “Physical evidences” are added by Kearny to show the process of marketing mix as a most substantial and logistic in its approach to satisfy the consumer behavior.
The logistic approach is also one of the most crucial consideration, for instance Amazon.com is a website with structured approach by having the complete support to customer care and services through logistic systems. In developed countries like Uk, Amazon uses its logistics expertise to implement allotment services for objective sellers like WHSmith (whsmith.co.uk) and Toys R Us (toysrus.co.uk). One of the finest examples of telemarketing is Dell (Dell.co.uk) who set the best example by indicating the point that computers can be sold without having face to face contact in person. 2.2.3 Process of Internationalization According to Burt 1994 and Kacker 1985, the international influences of trading format are the result of innovation, creativity and market awareness. Lamey 1996 states that “hug investments are required by a company for a
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manner.
global retailing with no guarantee in its returns. In recent times there has been a huge gain in the process of internationalization. 2.2.4 Strategic Dimension Salmon and Tordjman (1989) acknowledged that there are three basic strategies. The prime focus of their paper was on the global approach to retail internalization. The local seller can try to expand a business geographically. Williams, 1991 states that importance of divergence in the firm benefit as a part in the internationalization process. But (Vida and Firhurst, 1998) states environment. 2.2.5 Consumer Behavior According to (McGoldrick 2002), the proper understanding about the consumer behavior in operating market is very important factor for the business. As per Gist 1968, (p.85-86), the purchasing power of the buyer, demographic features, social and psychological characteristics are factors that compose consumer behavior. The retailers are encouraged and benefited by some of the changes in consumer behavior but on the other hand may be discouraging for some other sellers as stated in Advances in Consumer Research; 1987 Vol.14 Issue 1, p439. Although increase in the individual consumer’s income may have pleasing effect on that particular consumer but at the sometime it is uneven distribution which leads to results that are conflicting one due to the different combinations of consumer characteristics. As Ohmae (1998) states on the basis of his observation that only for overcoming the competition strategy are not important but it should be made to serve the consumer’s need. Chenet and Johansen 1999, concept about the ‘self
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that external environment of the firm is also important along with the internal
actualized customer’ is that not the one who just buy the products in huge quantity but a one who built his self identity based on his uniqueness. According to the observation by Meyers and Eagle, 1982; It is very clear that consumers do not make a choice on the projection of the good different substitute but choose on the basis of how distinguish is the characteristics of the product from other available product line. Mittal B. 2005 explains his perception about the consumer behavior that segmentation also includes the understanding about the differences among e-consumers. E-market is new the market today. 2.2.6 Customer Satisfaction Reichheld 1996 says that rational strategies results into the satisfaction. To retain a customer, a company should be able to satisfy him or her. According to Buttle 1997, satisfaction is not merely because of the retention or even the removal of dissatisfaction but a prime effort of developing emotional attachment with the brand. Therefore, satisfaction is linked with the internal feeling of the consumers. 2.2.7 Innovation One of the most elegant approaches of the consumers to make the attachment of the consumer to a brand is a high-tech innovation. Distinctiveness is between
supporting
and
disorderly
innovations
according
to
(Christensen,1997). The kind of division are served by the effects of the innovation on customer’s benefit. 2.2.8 Brand Perspective According to Kotler(1997;p443), a brand is not just only about the logo but a term that will differentiate the product or the services from the competitor’s
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market after the emergences of since there have been e-sellers and e-buyers in
line of product of services. Brand equity and brand extension are the two aspects of brand based competitive advantage. The word brand equity initiates the customers’ view of the brand to the variety concept. The customers based on the brand equity is defined by Keller, 1993 that “the intensity and effect of market communication on the customer to keep it in sustaining positive image for all.
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Chapter 3: Methodology Introduction In this section I have explained in detail the ways and means that have been undertaken to carry out the research study. In this part, we are elaborating and also supporting the course of action through logical reasons. Brief explanations each method. I commence my research with initially designing research study. Case study, the ways of gathering data collection is followed after the designing research study. This will be at last followed by the critical analysis and evaluation of collected data. According to (Zikmund), the scientific and purposeful process of collecting, classifying, recording and evaluating data for making decisions on business matters is regarded as business research. The purpose of the research is to search again and in more depth which has systematic investigation and detail discussion on the subject because the information of research is not merely gathered on the basis of researcher’s intuitions or data gathered on random basis. According to (Jill, Hussey 1997), the main purpose of study can be shortened as •
To explore some active unique difficulty.
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To re-examine and increase our current knowledge.
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To offer an appropriate answer to a problem at hand.
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To investigate additional general concerns.
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To plan new course of actions.
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To describe a new experience.
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and theoretical definition to support the process as a whole are given before
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To produce new knowledge.
3.1 Style of Research According to Yin, there are numerous research approaches to choose from when carrying out research, usually depending on the researcher that what he wants to investigate. It is important for the researcher to locate an appropriate way of investigating research which immensely suits and relates to the objectives of the study. Case study, history, surveys, experiments and archival method has its own procedure of gathering and evaluating the empirical facts having for various pros and corns. The two basic types of advances are qualitative and the quantitative data approach. Both types of methods are pragmatic research approaches but qualitative researches cannot be expressed in numeric forms but quantitative can be quantified in numeric form. Qualitative are determined on the basis of quality where as quantitative are on the basis of quantity. Purpose of Research The scope of the research can be characterized into following three parts. 1. The use of the investigated study. 2. The objectives in accomplishments of the research; 3. Information type required.
The above stated three classifications are not wholly mutually exclusive because from different angles the research can be classified, for instance one angle may suggest from the application point of view while other can be on the purpose basis.
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analysis are five suitable conditions for research methods. Each research
Types of Research From the viewpoint
Application
Applied Research
Descriptive Research
Exploratory Research
Correlation Research
Explanatory research
Qualitative Research
Types of Research
3.2 Research Design 3.2.1 Research Problem The research problem is the most important ingredient in the applied research. It is new in nature and requires a new mode of investigation to generate a way of proper understanding. The correct identification of research problem is very essential in applied researches. In this research the problem is that Apple is unable to increase its profitability share of its new applepad in the market. We have to determine that to what extent the electronic trading affects the consumer behaviour and how much the market share and the quality of Eservice to customers and their satisfaction are affected due to environmental factors. The quandary in this investigation is that what are the main issues that are affecting the Apple profit growth in the United Kingdom?
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Pure Research
Types of information sought
Objectives
Quantitativ e Research
3.2.2 Hypothesis Before starting the research, various methods are determined and some considerations are undertaken by the researcher. On the basis of these points he starts to gather the data. These points are known as the assumptions before research conduction. It is generally known as the hypothesis. The hypothesis serves as a ground for the conduction of the research. The hypothesis in this research are mentioned below,
overall customer satisfaction. The profitability of the Applepad has decline due to the severe competition in the market. The online promotions of the products of apple are not adequate to attract the potential buyers. These hypotheses will help me in conducting my research to investigate the problem within the parameters of the topic. The technology is a significant contributor in the market today as it is playing an important role in creating a strong relationship between the quality of online services and overall satisfaction of the consumers in the United Kingdom market. The second hypothesis is that competition has also served an important factor in the online business and promotion strategies. It is also being considered that apple is not able to increase its market share in United Kingdom due to the improper means of online promotion strategies. Based on hypothesises of this research I would conduct a survey to verify whether the hypothesis is void or not. For the survey, I would create a questionnaire which will contain close ended questions from the consumers for asking their opinions about the online promotion strategies of the apple and I
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There is a strong relationship between the quality of electronic service and
would also take the face-to-face interview from the dealers of the Apple available in London. The data will be collected from various sources such as articles, journals, case studies, books, questionnaires and interviews. After induction of the data, I would distinguish the relevant and irrelevant from the pool of gathered data. This process is to create a transparency by taking the vital data in the close consideration and remove the unwanted material from the gathered data.
close ended questionnaire that is available at the end of this research work in the appendix. 3.2.3 Research Questions I will commence this investigate with the following questions and try to discover out the appropriate answers to these queries through study findings and analysis. Q1. Is Electronic promotion of the apple brand in the United Kingdom is an adequate one? Q2. What are the main stream competencies of the apple that affect the consumer’s behaviour? Q3. Does there exist a strong relationship between the Electronic transaction and the overall customer satisfaction? 3.2.4 Method of Analysis To conduct my research I would use the combination of various approaches. I would use the case study approach in depth to find out the consumer behaviour and patterns of the companies’ approach to satisfy the needs of the consumers. I would investigate in detail some of the imperative companies in the world of
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The test of the survey carried out from the customers by the open ended as well
Electronics along with the selected company APPLE and investigating the strategies implemented by those companies in order to allocation channels and create an understanding about the effects of these strategies on the market along with their success in increasing their market share in terms of profitability. I would also conduct interviews from the customers on the basis of random sampling to have a clear idea about the online services and the satisfaction of customer’s need. I would also interview the retailers who deal in the selected brand and investigate their ideas about the imperfection in the surveys I used the tools to reach the findings and sorting of the data. For this I have use the SWOT analysis and CHI TEST. In chapter 4.1 I will be explaining in detail “the critical appraisal of literature”. In chapter 4.2 I will be elaborating in detail “the Graphical representation of Data”. And in chapter 4.3 I will be elucidating the in detail “the study through Statistical analysis and theoretical Models”. As mention above in research methodology, I would carry out a research with the case study. It is one of the most widely used methods in the researches and generally regarded as the traditional method in the research investigation. The objective of the case study method is to gather information from various past situations, where the researcher may have faced similar sort of problem. It is the source that provides a better understanding about the familiar situation. Note that situation is not exactly same but does match to some extent with the current situation and case study helps as guiding steps in familiar conditions. For the researcher it serves as a reference to conduct a current research.
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market of this brand. Apart from interviews, case studies, observation and
Steps in Case Study Approach Accroding to Cohenn and Manion, 1995, to consider a case study approach for the research study, the steps in this particular method are as following: •
Collection of Suitable Case
•
Preliminary Research
•
Facts stage
•
Investigation
•
Structuring of the Report
the case studies about the new trends in the online marketing, consumer behaviour and core competencies to compete in the market, I came to know that the movements and methods of the electronic promotion is a key demand of present time, consumer behaviour is subject to the change in various factors and how companies retain market share in the fast changing world. There are some limitations to case study method such as the complex nature of the case or the organizational setting does make it difficult to analyse the cases in a required manner. The perception of the researcher is also one of the severe limitation of case study approach that may hinder to investigate the actually facts because most of the time it is not important that what researcher has perceived must be the real case or the solution. It is very much possible that the biasness of the researcher is involved in the case study method which will not lead to the proper findings. Interviews Due to the limitations of the Case study approach, interviews can be considered in the research study. It is cost effective and significant in collecting data material but the validity of the data is again a subject matter
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After careful consideration and interpretation of various case study relating to
because it is based on the observation, personal values, choices and commitment towards particular brand. But these surveys help in finding the general opinion and choices of the consumers. It represents the choice and views of the majority. Interviews are categorised on the basis of the extent of flexibility:
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Structured Interviews
Unstructured Interviews
Semi Structured Interviews
For my research, I have opted for both, structured and unstructured interviews, this will help me in finding the responses of the respondents and categorizing it in a fine manner. Questionnaires The best method in surveys is the questionnaires as it the less expensive and offer great generalization, though the validity of the responses are again a subject matter for a debate as most of the respondents are not willing to share their actual feelings sometime or due to their other commitment they tick the answers on random basis. I would use the close-ended questionnaires as the
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basic tool to carry out my primary research. (The sample of questionnaire is available in the appendix). Secondary Data Collection Secondary data is one that has previously been collected for some purpose but other than the current one which is under consideration. It is the already collected data by the other researchers and serves as a base for the research study.
considered in this investigation are as following: •
Newman & Cullen (2002). Retailing: Environment & Operations: Thomas •
Levy & Wietz (1996). Essential of retailing : Irwin
•
Alexander (1997) International retailing: Blackwell
•
Fernie, John and Sparks, Leigh, (1998), Logistics and Retail Management, CRC Journals Journals of business research along with this, Libraries, government’s sources (Current Business) will be used.
•
International Journal of retail & distribution management
•
International Journal of purchasing and materials management
•
The European retail digest •
Harvard Business Reviews
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The key foundations of secondary facts and figure collections that I have
Chapter 4: Analysis and Findings 4.1 Critical Appraisal of Literature: The sole objective of this chapter is to crucially re-examine the literature that evidently explains the approval and relevance of internet technologies, by the players in the market, for the support and sale of commodities. In my study electronic commerce (e-commerce) is critically evaluated in the organizations and the implications for firm’s accountability. The author strongly argues that offering the utmost consumer brings worth by e-commerce can be seen as the actually input maker to the consumers because customers have accepted the shopping through the Internet medium. Shopper approval is of important value when determining what is offered by the e commerce to the customers. (1) The client need, (2) customer value and (3) the cost of the customer are the three main dimensions that play an important part in leading customer satisfaction. The Literature provides an essential insight for carrying out the investigation as it defines the professional views of the writers and the previous means and modes in the familiar situation. It describes the slight details about all aspects that are probable and provide a hypothetical structure to construct a strong foundation on. It provides and serves as a platform to lay a strong and huge structure on it.
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outline of the relationship between the potential customers and the
In the modern establishments e-business growth is not unnoticed because a single click makes consumer reach to the product. It is also correct that the brand equity is given to certain extent but with no guarantee that the deal will be a success that is made by the customer. The patterns of promotion have changed with the development. The producers are at the advantage with the direct mode of selling through electronic media to their customers and customers are also satisfied as it is advantageous to both parties because the cost reduction towards the potential customers of the obviously true that the traditional ways has changed into modern sphere. Electronic has added its role and signifcane to the business. Jerome McCarthy 4Ps is precisely the significant elements of the marketing mix though Lauterbourn has criticized it but McCarthy’s marketing mix hold vital place for the producers when it comes to decision making. Mostly the decisions and actions are executed on the basis of marketing mix because it serves as a ground for making a logical and realistic decision and E retailers also have alike needs to go along with their action plan that are more flexible and feasible leading to success and profits. The Salmon and Tordjan approaches the basic strategies in market identify the rationality of human while making choices in selection process or decision making. In my research investigation, I reached to a finding that the majority of the consumer make choices the stand point of their rationality. The approach of the consumer is to satisfy their logics of selection of a brand or a product. The satisfaction comes only when the right product is being selected by the consumer.
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company and at the same time profit for the producers also increases. It is
4.2 Graphical Appraisal of Data According to the Verdict Report, 2010, UK online market is expanding and progressing with the rapid speed. Online shopping has so far successfully attained the assurance of customers because one out of four customers is opting now to buy online products which indicates that the market share of online consumers are gradually increasing at a steady rate and the online industry is developing. Pie Chart Representation of increase on electronic transaction in United 26
Kingdom Online Retail
2008
15.1% %
16.6%
2009 2010
15.8%
This above Pie Chart shows the improvement in e retailing in the United Kingdom in the last three years. In 2008, the percentage of E retailing was 15.1%, in 2009 it increased to 15.8 and in 2010; it has paced to 16.4%
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5.2.2 Graphical Representation of Questionnaire:
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This is the graph representing the sample set of 15 consumers responding to the first question of the questionnaires and on the basis of respondents answer the bar charts is designed. Consumers respondent to the first question that which of the following attracts them to do online shopping and the response was 6 out of 15 opt for discount, 4 answered price variation, 2 answered product from retailers and 3 responded offers from the retailers.
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In the second question that how often the shoppers do online shopping. The feedback from the consumers were 2 out of 15 said daily, 8 marked weekly, 1 answered monthly and 2 each marked frequently and fortnightly.
Consumers responded to third question by 3 said new product development, 6 marked strong brand loyalty, h opt for strong product life and only 1 responded strong marketing channel.
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Customer’s response to a question what attracts then was in this order that 3 each answered innovation and compatibility, 4 said features, whereas 5 marked quality.
for this question the responses from consumers were 4 said security is the cause which stops them from online shopping, 3 responded frauds, 6 answered Confusing presentation of Products and services and 2 marked Check-out time.
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This is a bar diagram to represent the number of responses in order to find the degree of satisfaction regarding the online promotion of the Apple brands. Out of 15, only 1 was disappointed with the promotion schemes of Apple, 2 were not satisfied, 3 were less satisfied, 4 were satisfied and 5 answered very satisfied.
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4.3 Study through Statistical Analysis and Theoretical model 4.3.1 Chi-Test Apple Electronic Services Responses very Satisfied Satisfied Less Satisfied Not Satisfied
2 2 3 1 0 6
4 1 1 0 1 3
Total 4 6 3 2 15
expected
26
1 0 2 1 0 3
Rating 3 1 0 1 1 3
Factor 0.8 0.81 1.2 0.6
1.62 2.4 1.2
0.81 1.2 0.6
1 1.2 0.6 0.3
0.00667 0.004 0.02
0.39
0.78
0.39
9
0.033333
PVALUE=0.021525 As we know that if the P VALUE <0.05 then the null hypothesis can be rejected and in this test our value is 0.02152 so therefore there is no relationship between the different variables
Consumer’s Overall Satisfaction Responses Very Satisfied
Rating 1 2
2 2
3 1
4 0
5 0
33
Total 5
Satisfied Less Satisfied Not Satisfied Disappointed
0 0 0 0 2
2 1 0 0 5
1 1 1 0 4
1 0 1 1 3
0 0 0 1 1
4 2 2 2 15
Expected
Factor 0.3 1.65
1.32
0.99
3 0.2
0.03333
0.54
1.35
1.08
0.81
7 0.1
0.16666
0.26
0.65
0.52
0.39
3 0.1
0.13333
0.26
0.65
0.52
0.39
3 0.1
0.13333
0.26
0.65
0.52
0.39
3
0.13333
26
0.66
PVALUE=0.03872 As we know that if the P VALUE <0.05 then the null hypothesis cannot rejected and in this test our value is 0.03872 so therefore there is no relationship between the different variables
5.3.2 SWOT Analysis of Apple SWOT Analysis of Apple
34
Internal Strength
Internal Weaknesses
Brand reputation
High prices
Compatibility
Long
procedure
and
complex
Innovations
structural
Skilled Staff
hierarchy
26
External Opportunities
External Threats
Diversification in to new
Competitor’s prices
Business
Consumer’s
Increase more its online
changing
behavior
sales in market.
STRENGTHS • Apple’s biggest strength is its brand reputation. It stands in a market as an icon
and
symbol
of
status
for
consumers
all
over
the
globe.
• Their second strength is the continuous innovation in the product line. Apple is known for its trend setting abilities. It has always introduced different fusions of technologies. • It has the skilled workforce which has improved its brand image. All the skillful and experts are working under the roof to satisfy the consumer’s need. WEAKNESSES • There is a possibility of consumers switching from apple brand due to its high prices. Thought it has the best technology but the prices of the products are
35
weakness for it as the market share is not increasing as compare to competitors like Dell, HP etc. • The complex internal procedure and the long hierarchy to plan the decisions are the weakness for the company. It has increased the cost of manufacturing also therefore their products are expensive as compare to its competitor’s prices. OPPORTUNITIES • In future apple has a good opportunity to expand its business line by scale and increase its market share also. Sainsbury has more opportunity to exceed its online sales as its online sales margin is higher leading to high profits. This will increase investment opportunities. THREATS • One of the major threat for Apple is its own prices which gives its competitors an edge to cut their profitability margin. • important is to satisfy the consumer if to stay in the market so the changing behavior of the consumers is just like indicator which indicate that in future the profit can decline further if consumer’s preferences changes due to several reasons like income factor or substitution factors etc.
Chapter 6: Discussions 6.1 Interpretation of Results
36
26
introducing other electronic items. This way they can diversify their business
Research Q1. There is a strong relationship between the quality of electronic service and overall customer satisfaction. After careful examination of assumed hypothesis from various angles by the help of statistical tools, questionnaire, and interviews with the different bunch of people now we can answer our first question that to certain extent electronic services serves as an important factor when it comes to the satisfaction of the customers but the overall satisfaction of the consumer is not only link with the electronic services. The prices are also important factor to attain the overall Research Q2. The profitability of the Applepad has decline due to the severe competition in the market. To this question, we can use the briefings from SWOT that yes due to the severe competition in the market applepad has been affected in terms of the profitability. With the emergence of too many players in the market who uses the price strategies to take the share in the market, apple has to face in UK the decline because its prices are high and people feel that their competitors are giving a bit cheaper as compare to them. Research Q3. The online promotions of the products of apple are not adequate to attract the potential buyers. After the analysis of the questionnaire it would be right to say that partially the apple products online promotions are not adequate in the UK market but apple has been a status symbol for people so it has also attracted many people through this limited promotion. We have conducted the chi-test to establish the relation between these two different variable but the results finding are totally different than what was assumed in the beginning of the research. There is a relationship between quality of electronic transactions and the overall customer satisfaction because customers are only satisfied when they have bunch of benefits in an easy way.
37
26
customer satisfaction.
They are only attracted to those items which has either a good quality or a low price etc. There satisfaction can not be because of the electronic services merely.
26
Chapter 7: Conclusion 7.1 Evaluation of Hypothesis
38
Apple’s services result is 0.21525, which means that P value is less than the hypothetical value of 0.05 and there for the result shows that hypothesis is correct one. The chi test secures the result of the overall satisfaction of the customers as 0.03872 and it is also less than the required hypothetical value. The bar diagrams about the online promotion services of the respected organization and the consumer behaviour also suggest that there are different factors responsible for the customer satisfaction. According to the SWOT analysis there are some weaknesses and threats from based only on the online deals. It would not be unfair to say that apple’s new pad has been decline in terms of profitability just due to the price factor, it is not because of the promotion strategies but there is a strong link of the online promotion to create the image of brand in order to maintain customer’s loyalty towards the company. There can be other factors that may be responsible for the customer satisfaction such as price strategies and offers made by the sellers, the quality of the products and services etc. These variables may play vital role in the customer’s satisfaction but quality of online promotion is not the only vital and crucial factor for the customer satisfaction. 7.2 Limitation of the Research: The time constrain is the major limitation of this research because the consumer behavior is the most effective one when read in depth. The research could have gone deeper than it has been so far but due to limited time not much of the people could have been interviewed. The size of sample was very small as compare to the market. If the sample size was increased than there would have been a possibility of getting more generalized results. The respondent selected were only on the basis of random
39
26
consumer’s varying behaviour but it is no clear that customer satisfaction is not
selection method and on the basis of convenience so there is a possibility that the true respondent might have been left out who could have given more genuine views about the issues. The present results cannot be regarded as comprehensive because it was only limited to Apple organization. The selected respondents were a small part of the overall but if more respondent were included and few more similar sort of industries were included in the research, the results would have been more generalized as the research is only conducted. Limitations confirmed that the responses are true in nature because the possibility is alive that our respondents might have answered few questions differently than what they really felt. Their phase of mood is unknown so we do not know whether they answered correct or incorrect. 7.3 Recommendation for Further Work The limitations I have mentioned above must be overcome by the in the future research pieces. In the future researches, the researcher must conduct more detailed interviews with the top management and should also conduct the interviews of the employees and people associated with the company and the online channels to promote the brands. The company should also consider to improve their pricing strategies because it is one of the lacking area where APPLE has to improve. Their promotion online are not very active one. Most of their focus is on the physical promotion which has to be changed in order to remain in the hunt. The consumer satisfaction can be attained through introducing the more friendly-user devices that can be easily portable and installable on other system. In the future, researcher must also consider conducting the researches in the other parts of the world to find the relationship between the quality of Electronic transaction and the overall satisfaction.
40
26
Moreover, the questionnaires are filled to generate the data but it is not been
It has to improve the online services by introducing new ways and methods of reminding about its new products so that their customer’s satisfaction and loyalty remains towards it. The apple company should also conduct the innovative workshops in order to keep its employees more energetic about sharing their ideas along with the expansion of the new technologies and help with sessions in order to meet the challenges in the competitive environment. It should also groom its workforce to understand the needs of the customers and how to satisfy the online 26
consumers about their purchases.
41
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16. Goldrick, P. (2002), “Retailing Marketing Management”, McGraw Hill,
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QUESTIONAIRE __________________
Education:
__________________ Occupation: __________________
Gender:
__________________ Income:
__________________
Q1. Which of the following attracts when you shop online? Discount Price variation Products Offers Q2. How often do you shop online? Daily Weekly Fortnightly Frequently Monthly Q3. What are the following attracts you to shop online?
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26
Age:
New product development Strong brand Loyalty Strong products life Strong marketing channel Q4. What are the core competencies of your company? Compactability Quality 26
Feature Innovation Q5. Which of the following cause you not to shop online? Security Frauds Confusing Presentation of Products and Services Check-out Time Q6. Are you satisfied with the level of Electronic promotion of APPLE? Very Satisfied Satisfied Less Satisfied Not Satisfied Disappointed Q7. Do you often use same company’s brand? Yes No Never noticed Q8. What is your overall satisfaction about Apple products? Very Satisfied Satisfied
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Less Satisfied Not Satisfied Disappointed Thank you for your cooperation~
26
47
