The customers perceived value on the IPhone - Essay Example

?MBA - Masters Business Administration Research Methods for Managers in an International context Module: BC415021S To examine the s’ perceived value on the IPhone [Type the author name] Table of Contents Type chapter title (level 1) 1 Type chapter title (level 2) 2 Type chapter title (level 3) 3 Type chapter title (level 1) 4 Type chapter title (level 2) 5 Type chapter title (level 3) 6 http://sillignakis.com/PDF/SAMPLE%20OF%20RESEARCH%20PROPOSAL.pdf 1. Introduction 20% Srivastava (2005)i suggests that the mobile phone has shifted from being a ‘technological object’ to a key ‘social object’ as communication with others is the main purpose for mobile phone purchasing. However, facilitating family or friend coordination and intensifying social interaction are the crucial factors for using a mobile phone (Urry, 2007)ii. According to Castells et al., (2007)iii, “obtaining a mobile phone is a milestone that indicates success, not only financially but also culturally in terms of the integration within society”. 1.1. Background of the Study The motivation behind of this project is based on the fact that during the last few years the growth of the smart phone industry has been dramatic. As such, traditional mobile phone manufactures are facing tough times. Success in targeted market segments is directly related to organisations’ abilities to provide perceived value to customers (Apple 2010). According to the Industrial Marketing Management (2008)ivv, CPV is considered to be a source of gaining competitive advantage. 1.2. Problem statement As proposed by Huff et al. (2006) this research can be seen as a design science whose aim is to develop valid knowledge to support thoughtful, designing practitioners. In other words, the research aims to develop valid knowledge to support Apple in maintaining and increasing market share (Saunders et al. 2009)vi. 1.3. Purpose of research The idea of this research emerged from the author’s interest and fascination in how consumers are increasingly shifting from traditional mobile phones to smart phones. This research continues from previous research studies done by the author in this specific area. The previous research identified several opportunities for ecotourism development in the area, (Sillignakis, 2002) therefore the author now will attempt to identify and analyze customers’ perceived value of one specific type of smart phone -- the IPhone. 1.4. Research objectives The research project will therefore seek to explore and investigate the following: Identify customer perceived value on smart phones. Identify factors that influence the behaviour of mobile phone consumers. Examine the iPhone’s customer value offering. Provide an evaluation of the iPhone’s existing value proposition by comparing and contrasting it against a competitor i.e. Blackberry. 2. Literature review (30%) 2.1. What is customer value Based on Grewal et al, (1998, p.48) and Petric and Backman’s (2002, p.39) notion it can be argued that the iPhone’s CPV is conceptualised in two dimensions i.e. Acquisition and Transactional value. The suggestion is that customers are rational economic decision-makers who process information in order to maximize value (Sheth, 1979)vii; as such, customer value is principally conceptualised as a trade-off between the price of the iPhone and its quality (Holbrook, 2006)viii. Sheth et al (1991)’s “five Values” conceptual framework questions the economic assumption that consumers evaluate purchase and usage decisions with a calculator-like approach (Holbrook, 2006). Instead Holbrook and Hirschman (1982)ix proposed the experiential approach and introduced new concepts such as feelings, fantasies, and fun (Holbrook, 2006). Rather, consumer decision processes embrace complex motivation that includes both intrinsic and extrinsic values (Holbrook, 2005; 2006)x. Woodruff (1997)xi defines customer value as the emotional bond established between customer and producer after the customer has used a salient product or service produced by that supplier and found the product to provide an added value. In other words, customer value is determined by the customer rather than objectively determined by the seller (Burns and Woodruff 1992). 2.2. Factors that influence consumer behaviour According to (ref) consumer behaviour is "The study of individuals, groups, or organisations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. (ref) argues that understanding consumer behaviour should make us better consumers. For organisations, consumer behaviour analysis enhances social marketing as it involves getting ideas across to consumers rather than selling something. Like commercial marketing, the primary focus is on the consumer. Specifically this entails learning what people want and need rather than trying to persuade them to buy what we happen to be producing (ref). The planning process takes this consumer focus into account by addressing the elements of the "marketing mix." This refers to decisions about 1) the conception of a Product, 2) Price, 3) distribution (Place), and 4) Promotion. These are called the "Four Ps" of marketing. Social marketing adds more "P's." For details on these refer to the Appendix. 2.3. Customer perceived value CPV is the difference between the prospective customer’s evaluation of all the particular advantages or gains that are attained by an individual as a result of purchasing or using the iPhone and all the costs of its offering and the perceived alternatives (Journal of management History 2004)xii. 2.4. What is value preposition The value proposition describes the unique offering Apple makes to the customer with all its hard and soft dimensions, and how the company will differentiate itself from the rest in its target market segments (The marketing review 2009)xiii. The figure below the Customer Value Strategy and Positioning model identifies several sources of Apple’s competitive differentiation, which enhances its value offering. Piercy (2009) supports that these aid Apple in achieving positioning that offers distinctive value in the customer’s judgement and hopefully in the targeted customer’s eyes better and preferable to the alternatives. However, considering that superior customer value is created when the buyer’s total experience is favourable compared to expectations, as well as the customer’s perceptions of the equivalents provided by competitors (Journal of Retailing 2001)xiv, Apple must ensue its value proposition aims achieve this equilibrium. 3. Research design and methodology (40%) The methodology that will be applied has been chosen in order to acquire information and deduce conclusions about the customer’s perceived value on the iPhone. Due to resources and time limitations the research focuses on customers between the age of 18 and 65 within Cambridge and Peterborough Cities. 3.1. Purpose of study and type of investigation The main purpose of this study is to examine customers’ perceived value on smartphones. For this reason, this research will take an applied approach aimed at improving understanding of customers’ perceived value on the iPhone and propose further recommendations for improvements. According to (ref) applied research is designed to solve practical problems of the modern world, rather than to acquire knowledge for knowledge's sake. (Ref) supports that there have been many historical examples in which applied research has had a major impact on our daily lives. Because applied research resides in the messy real world (ref), strict research protocols may need to be relaxed. For example, it may be impossible to use a random sample. However as supported by (ref), in order to draw externally valid conclusions about the entire population based on the sample, simple random samples "without replacement" ('SRSWOR') will be used. This process also avoids choosing any member of the population more than once. According (ref) advantages of SRSWOR are that it is free of classification error, and it requires minimum advance knowledge of the population other than the frame. Its simplicity also makes it relatively easy to interpret data collected via SRS (ref). For these reasons, (ref) supports that simple random sampling best suits this project, as not much information is available about the population and data collection can be efficiently conducted on randomly distributed items. Furthermore, the cost of sampling is small enough to make efficiency less important than simplicity. If these conditions were not true, (ref) argues that stratified sampling or cluster sampling might have been a better choice. 3.2. Data collection For the purpose of this research, and in order to achieve the objectives, primary data will be collected and in some instances secondary data will be used. The secondary data will contribute to the formation of background information needed by both the researcher in order to constructively build the project, and the reader to comprehend more thoroughly the survey outcome. Primary data will be collected in two ways. Firstly, a questionnaire survey will be conducted with both generic smart phone users and iPhone users within Cambridge and Peterborough. Secondly, interviews will be carried out with staff from smart phone shops and Apple stores. 3.3. Sampling design The ideal situation would be to study the entire population. However, generally it is unfeasible or impossible to do so and therefore one must settle for a sample. According to Black and Champion (1976), sample is a portion of elements taken from a population, which is considered to be representative of the population. In order to collect primary data the questionnaire survey technique will be used and as suggested earlier, simple random samples are applied. As Rescoe (1975) cites in Sakaran (2000:296), “sample sizes larger than 30 and less than 500 are appropriate for most research”. Having in mind these limitations, the sample size for this research will consist of 50 questionnaires designed for the smart phone users aged between 18 and 65 and living in Cambridge and Peterborough. Also, interview survey technique will be used. The sample population for the interviews will include Anglia Ruskin University students, local people and mobile phone shops staff. 3.4. The questionnaire survey According Cohen (1989) a questionnaire is a self-report instrument used for gathering information about variables of interest to an investigation. For this research, closed-ended questions are designed in order to call for responses, which narrow down the field of enquiry since the respondents chooses among fixed responses (ref). Such questions also help the researcher to analyse easier the data. Since the responses can be directly compared and easily aggravated (Patton, 1990), they are adaptable as such surveys can be employed among people of all ages and can be replicated from one subject to another (Aaker & Day, 1990; Kotler, 1994). Additionally, many questions can be answered in a short time (ref). Having said that, (ref) argues that close-ended questions can lead to bias since respondents are offered limited alternative replies. The questionnaire consists of three parts. (Appendix 1.1) The first part is designed to gather information about factors that influence the behaviour of mobile phone consumers. The second part aims to identify mobile phone consumer’s perceived value on smart phones. The third part is designed to provide an evaluation of the IPhone’s existing value proposition by comparing and contrasting it against a competitor i.e. Blackberry 3.5. The interview survey The method of personal interviewing is undertaken in order to reach the objectives since it is the most versatile and productive method of communication, enables spontaneity, and also is provided with: “The skill of guiding the discussion back to the topic outlined when discussions are unfruitful while it has the disadvantages of being very costly time consuming and can introduce bias through desires of the respondent to please the interviewer” (Aaker & Day, 1990: 164). For the purpose of this research semi-structured face-to-face interviews will be conducted involving mobile phone shop staff. The choice will be based on the researcher’s knowledge about different educational levels among interviewees, their different lifestyles and ages, which make imperative an adaptation in questions so that they ensure the comprehension by the interviewee i.e., repeat, or rephrase the question. 4. Contribution of the study It is intended that the findings of this research project will be used by mobile phone, in particular smart phone, manufacturers to assess and evaluate the customers’ perceived value on their products. Apple will gain knowledge on customer value offering, as it is perceived by customers. Evaluation of the iPhone’s existing value proposition by comparing and contrasting it against Blackberry will also provide a comparative bench mark for Apple to improve and enhance its value offering. 5. Time table and references (10%) June – July 2009 : review of literature August 2009 : draft literature review September 2009 : agree research strategy with supervisor  October 2009 : agree formal access to organisations for collection of primary data November 2009 : compile, pilot and review questionnaire December 2009 - January 2010 : administer questionnaire February 2010 : final collection of questionnaire March 2010 : data analysis April – May 2010 : final writing of project report 6. Limitations: Time constraints of the semester require less time than may be ideal for an ethnographic study. Because there isn’t a form of compensation, the survey respondent might not as committed or engaged in the research. 7. Appendices 7.1. Questionnaire 8. Additional Social Marketing "P's" Publics--Social marketers often have many different audiences that their program has to address in order to be successful. "Publics" refers to both the external and internal groups involved in the program. External publics include the target audience, secondary audiences, policymakers, and gatekeepers, while the internal publics are those who are involved in some way with either approval or implementation of the program. Partnership--Social and health issues are often so complex that one agency can't make a dent by itself. You need to team up with other organizations in the community to really be effective. You need to figure out which organizations have similar goals as yours --not necessarily the same goals-- and identify ways you can work together. Policy--Social marketing programs can do well in motivating individual behavior change, but that is difficult to sustain unless the environment they're in supports that change for the long run. Often, policy change is needed, and media advocacy programs can be an effective complement to a social marketing program. Purse Strings--Most organizations that develop social marketing programs operate through funds provided by sources such as foundations, governmental grants or donations. This adds another dimension to the strategy development; namely, where will you get the money to create your program? 8.1. 9. References Read More