Apple Inc Customer Satisfaction - Research Paper Example

Table of Contents Introduction 3 1 Positioning of the Service 3 2 The Aim 3 3 Objectives 3 4 Rationale ………………………………………………………………………… 2. Literature Review 4 3. Research Methods 5 3.1 Research onion 5 3.2 Peeling the Layers 6 3.3 Primary Research 6 3.4 Secondary Research………………………………………………....................... 4. Method 6 4.1 Data Collection Methods 6 4.2 Sampling Techniques 7 4.3 Data Analysis Approaches 11 5. Ethical Consideration 12 6. Findings 13 7. Analysis and Discussion 14 8. Conclusion 14 Recommendation 16 Reflection 17 References 19 Appendices 21 Introduction 1.1 Positioning of Customer Service In June 2007 Apple Inc. launched the iPhone an innovative phone that had features that were more interactive to the users. The products were so unique and distinct in nature that they were able to be differentiated from the other smart phones that were in the market at that particular time due to their sleek and attractive look that was complimented with a unique operating system specifically meant for them. The smartphone market is very competitive given the enormous number of players as well as the dynamism of technology that enables firms to come up with innovative concepts each day (Titlow, 2013). To maintain customer loyalty in their kind of environment organisations have to develop innovative products that satisfy the needs of their clients. Apple has always committed its services to achieving customer satisfaction a reason why it utilises a substantial amount of capital to conduct market research to determine what exactly the consumers want from them and thus work to accomplish and satisfy the needs of their customers. Customer service can be defined as the act of identifying the needs and requirements of consumers and taking elaborate steps to meet them to the highest possible levels (Dawson, 2013). The Apple brand managed to position itself in the smartphone market by embracing a high degree of innovation as it was able to come up with both innovative and interactive features in its products and services that resonated well with the needs of its clients to enable it achieves customer loyalty from the consumers. The objective of this study is to analyse iPhone’s customer satisfaction with its products and services and to conduct an in-depth investigation to come up with the reasons that have led to iPhone being toppled off its number one rank in both the UK and US markets. 1.2 Aim The research paper is aimed at conducting an in-depth analysis of iPhone’s customer service satisfaction levels by analysing it’s both its functionalities and services to ascertain the reason the brand has declined in terms of customer preference ranks according to reports from ASCI and NSCI. 1.3 Objective The paper will be premised on three primary goals that include the following. 1. To examine the levels of customer satisfaction in regard to the services and functions of iPhone 2. To identify the responsiveness and effectiveness of iPhone’s customer service 3. To assess the level of customer loyalty to iPhone products by evaluating the repurchase intentions of customers after previously utilising iPhone services. 1.4 Rationale IPhone was chosen as the subject for this particular research based on the premise that initially it was ranked as the most favourable products among the consumers. The products commanded massive consumer loyalty as well commanding a significant share of the market in terms of sales volume. However, based on the recent report by ASCI, USA (2015) and NCSI, UK (2015) indicate that iPhone has been declining in terms of customer preference in the past few years thus founding the objective of our research to analyse the customer service of iPhone products and service to ascertain what culminated that led to such a steady decline. 2. Literature Review According to Mao (2010), the idea of customer loyalty is not a stand-alone concept it incorporates other aspects such as making the consumers happy with the products and services that they are provided with since if they are satisfied with the level of service that is offered they will tend to come back to experience the same. In essence, customer loyalty is a multi-faceted concept that needs to take into consideration a number of aspects to achieve its objectives. Brooks and Dunn (2011) argue that customers are highly satisfied with the functions and services that iPhone offers given the fact that Apple designs its products based on a market analysis report that it conducts thus it provides clients with what they exactly need. The company has devoted a considerable amount of capital in market analysis programs that are aimed to get the exact picture of what the consumers really want and thus it blends the needs of its customers with innovation to come up with products that have distinctive feature to satisfy the desires of the clients as well as help the firm to maintain a competitive advantage over its rivals in the market. Relatively, any market that is technology-oriented is prone to be highly dynamic thus regardless of an innovative concept that Apple might come up with at any particular time the concept will be outdated by time since its competitors are also working to better their products. To keep up with the pace of a market that is characterised by such features conducting market analysis is vital as the company will be able to understand what the clients want and work to satisfy those needs. Hodgkin (2011) argues that Apple is steadily losing ground especially on consumer satisfaction as recent trend indicate it is trailing other companies such as Samsung, Sony, and Microsoft. Initially when the iPhone was launched back in 2007 the only competitor that was in the smartphone market was Blackberry. However, the innovation and customer-oriented service that iPhone adopted helped gain massive customer loyalty that even made it command the US smartphone market by approximately 80% despite being a year into the market. The trend has however changed as the company is facing intense competition from other established brands that have even overtaken it from its prime position in the market. Ma (2014) believes iPhone and withstands the competition from its rivals by specialising in delivering service to its clients that are outstanding as that is the only true way that the firm will be able to command consumer loyalty that can be translated into increased sales volume. The moment it has restored the faith that consumers initially held in the company’s services it is going to command the market as the close touch with the customers will always help it determine what the customers need to work to satisfy them. Hodgkin (2014) goes on to argue that for a long period now Apple has been characterised for superb client services, in addition to unwavering brand loyalty from its consumers. The situation only changed due to lack of a competent leader in the retail who has significantly claimed the glory of the company. It is prudent to note that the level of iPhone’s customer service at its stores has significantly declined thus resulting in a decrease in the level of customer satisfaction that, on the other hand, affects consumer loyalty to its products and services. Gallo (2012) states, that selling is a science that is comprised of five primary functions. The functions can be summarised in the form of five letters APPLE. The first letter represents approach whereby the customer representatives at the retail stores are supposed to contact the customers to determine their needs and come up with a mechanism of how they can assist them. The next step involves inquiring what the customers requires or rather the problem that the client is having. The representative will listen attentively to hear what the client has to say before coming up with a workable solution that will ensure the customer will receive the best experience that will make him/her want to be associated with the brand again. According to Titlow (2011) the company needs to come up with products that are primarily designed to appeal to the consumers in a manner that will persuade them into purchasing those products. In that light, the consumers will have the opportunity to experience the service and thus develop loyalty to the brand since the services are designed to fit the needs and expectations of the clients. Apple has indeed worked to enhance its brand image to consumers by emphasizing on fashioning its services in a manner that customizes them to ensure they satisfy the customers’ needs. Customers have demonstrated a tendency to repurchase Apple’s products due to the distinctive features that come along with the devices despite the premium prices that the company charges. Thus, it is prudent to note that affordability is not the factor that has led to decreased customer satisfaction with iPhone since it is imperative that if a customer is satisfied with a product or service then he/she will be willing pay any cost to enjoy that service. 3. Research Methodology 3.1 Research Onion The concept of the research onion was developed by Saunders et al., (2007) and it seeks to elaborate the necessary steps that researchers ought to explore in order to formulate effective research methodologies. The research onion is comprised of five elements that include the following; research philosophy, research strategy, research approach, data collection methods and time horizons. 3.2 Peeling the Layers Research Philosophy In any ideal research the assumptions that are utilised to create the rationale for particular study might differ on choosing the best mechanism that will be used to achieve the goals of the research (Goddard and Melville, 2004). There are two main frameworks that are employed to define the research philosophy for any study. For the case of this research constructivist framework will be utilised. Research approach There are two main methods of conducting any research that is deductive and inductive approaches. A deductive method is when the research will moving from general facts that are known and moving to more specific concepts this is the plan that will be implemented for this study. The other approach is inductive in that the research will take the trajectory of moving from concrete fact to the more general concepts. Research strategy The strategy is essentially how the research work is set to be carried out (Saunders et al., 2007). Various strategies can be employed for instance; systematic literature review, interviews, surveys, case studies and experimental research. Time horizon It defines the time schedule that the research is set to take through the allocation of each activity with its expected period. For this particular research snapshot time, the framework will be employed as the date for the project will be collected at a specific time. Data collection methods Data collection is the most important stage in any research work since it is during this phase that the information that will be utilised for analysis is sourced. The reliability and validity of the research will depend upon the kind of data collection techniques that were employed to gather information (Saunders et al., 2007). Data collection techniques include both primary and secondary methods. Primary methods include first-hand techniques such as the use of questionnaires while secondary techniques include the use of scholarly works and opinions of other researchers. 3.3 Primary Research Primary research involved collecting first-hand data from the sample space and in the case of this research questionnaires were preferred since they have the option of utilising both closed and open-ended question. The use of those two types of question formats in questionnaires will be of advantage since the date collected will be compiled efficiently at the same time the respondents will have freedom to come up with their ideas and opinions in an unrestricted manner (Hannah, 2007). Questionnaires are utilised as they can serve a number of purposes that include the following; 1. Determine the shift in consumers’ attitudes and opinions. 2. Determine the needs of the customers, their expectations as well as their priorities and preferences concerning the product under study. 3. Elaborate the frequency, patterns and success of the use of the product 4. Trends 5. Relevance of services and collections to consumer needs 3.4 Secondary Research Secondary research techniques comprise the scholarly works and opinions of other researchers who have explored the subject in the past. In this paper, various scholarly works have been referred with the intention of pooling a comprehensive volume of knowledge to analyse effectively and come up with an elaborate conclusion regarding the subject under study. The secondary sources have been carefully selected as only those with information that has relevance to the strategies that iPhone has implemented to aid it to gain a market edge have been used for the purpose of this research. 4. Method 4.1 Data collection methods The research will involve two main techniques to collect data that will be utilised for the purpose of analysis and formulation of the conclusion for the study. Survey questionnaires will be employed to serve as the primary source of data as the process will involve a one-on-one question and answer session between the researcher and the respondent to collect information as per the requirements of the questionnaire. The questionnaire is dived into three sections with a total of seventeen questions that include both closed and open-ended questions. The pilot project for the administration of questionnaires will involve twenty of them being deployed to the field to determine the environment and also identify any bottlenecks that hinder the efficient administration of those questionnaires. After the pilot project, the final data collection session will be conducted, and this one will involve a minimum of one hundred questionnaires that corresponds to hundred respondents. The sessions will be exclusively conducted on a face-to-face basis to maximize the possibility of obtaining question from the respondents. The literature review will form the secondary research as various scholarly works will be analysed with an aim of obtaining any relevant information as far as the subject under study is concerned. 4.2 Sampling Techniques Random sampling will be conducted to choose the sample space for this particular research. The respondent will be selected at random without utilising any specific criteria. However, the sample space is limited to one hundred respondents since the questionnaires that are available are only one hundred. Relatively, the number of the sample space was kept at one hundred to ensure it is sizeable enough to ensure the process of analysis is not tedious thus ensuring high reliability and quality of output of the research. 4.3 Data Analysis Approach A descriptive analysis will be employed to elaborate the findings of the research, and this will be supplemented by the graphical presentation of data to demonstrate trends and patterns that may be evident from the data. All these techniques are aimed at elaborating or rather simplifying the data so that it can be easily understood and satisfy the objective of the study. 5. Ethical Consideration The research was conducted in an ethical manner by ensuring ethical consideration to both the respondents and Apple Inc. which is the subject for this particular research. were considered before commencing the study. The study was implemented after contacting the subject and who was given enough time to question any pertinent issue that felt would either harm or rather jeopardise the reputation of the firm. The aim and objective of the research were not ill-intended in any manner and was only designed to satisfy the goal that is clearly set out. The ethical consideration of the respondents was also catered for as the initial paragraph in the questionnaire contained the rationale of the research as thus the respondents were aware of all provisions. 6. Findings 6.1 Survey The figures that follow are the findings from the question one and two that was administered to the respondents. The results above indicate that out of the respondents that were involved in answering the questionnaire 43% of them comprised of male respondents with 56% consisting of the female counterparts. 1% of them represented a defendant who is of a different gender that is neither male nor female. Among the male respondents; 21 were between (18-24) years, 13 were between (25-30) years, 2 were between (31-44) years, and 6 were between (45-60) years. Only one male respondent was above sixty years. In the female category of respondents the figures were 26, 19, 4, 7 and one respectively. Out of the respondents that were questioned 78% of them own an iPhone while 22% did not own one. The respondents who did not own an iPhone had various reasons for their condition. The table above shows how they answered question four that was multiple choices in nature. 18 of the respondents claimed iPhones are expensive thus they would not afford them, 15 were comfortable with their current devices thus have no need to acquire an iPhone during 12 own other Apple devices i.e. iPads, iPods, etc. One respondent claimed iPhones were unattractive while two respondents cited poor customer service as the reason they do not own an iPhone. The chart above shows the findings of the main attraction features that their iPhones. Arguably all features namely; functions, popularity, customisation, appearance, and functionality received a 60%. 71% of the respondents who owned iPhones found them to be easy to use but 7% of them thought iPhones are complicated thus they do not provide a user interface that is easy to operate. The findings above indicate that 45% of the respondents prefer utilising the internet as the medium of seeking customer support services from Apple. 14% of them choose to seek those services in person while 6% and 8% obtain the services through telephone and via dealers respectively. The use of telephone as a medium to seek customer support service was the most efficient as the data indicated that most clients would be served in less than three minutes while accessing customer support by going in person was the most tedious as a majority of the respondents indicated they had to wait between 5-10 minutes before they would be served. Queries made through the internet and through telephone services were resolved either immediately or to a maximum of two days. However, queries made through physical visit to the support centre took substantial time as some would delay for 4-6 days with other ending up not being resolved. The respondents indicated contact with the customer care representatives was high during physical visits as it ranged from 3-15 days while contact through telephone was at 2-10 days. 23% of the respondents that sought customer support services from Apple were very satisfied with the services offered while 37% were satisfied. 12% were averaging contended with the services with 4% and 2% representing those unsatisfied and very unsatisfied respectively. Out of the 23 respondents who were very satisfied with iPhone’s customer support services 15 would definitely recommend the services to their friends and peers while 8 would probably recommend the same services. 23 of those who were satisfied with the services would also recommend them to their peers.2 of the respondents who were not satisfied with the support services would not recommend them to their friends. 10-18 respondents that are satisfied with support services from iPhone would repurchase an improved version of their device. A majority of those that are averagely satisfied are not sure if they would purchase the device again. All respondents who are unsatisfied with the support service would not repurchase iPhone again. Out of those that sort customer support services 90%of them got their issues resolved to their satisfaction. 10% were not contended with the manner of which their queries were resolved. Concerning the satisfaction level on iPhone features 65% of the respondents who are users were very satisfied with them, 8% were just satisfied while 2% were averagely contended with the features. However, 3% of the respondents were unsatisfied with the features that came with iPhones. Out of the 78 respondents who own iPhones 68 of them were satisfied with iPhones due to their overall quality with 30 perceiving the value that comes with the device as the reason for their satisfaction.42 respondents indicated that after sale services offered by Apple as the main motivation for their satisfaction while another 40 based their satisfaction on the purchase experience they obtained. When compared with other brands iPhone seemed to score highly as 67% of the respondents indicated it is way much better, 10% thought it was better while 19% saw no much difference with phones of other brands. 3% and 1% thought it was worse and much worse respectively as compared to other brands in the market. 7. Analysis and Discussion Evidently both male and females respondents who were interviewed fell into the (18-24) age brackets. IPhone is perceived to be an integral accessory especially for the young people who associate it with fashion and trend. Of the one hundred respondents who were interviewed only a quarter of them do not own an iPhone. A large percentage of those that do not own the device indicate that the premium prices that are attached to the mobile phone to be the predicament that had hindered them from acquiring one. Yarrow, (2014), states that Apple makes huge revenues mainly because it charges twice as much for its products as compared to what its competitors charge. Relatively, out of the 78 respondents that own iPhones a majority of them concurred to the fact that iPhone has a simplified user interface that makes it easy to navigate and use. When focussing on the main features of iPhone that makes them attractive to the customers, a majority of the respondents indicated that the brand and customer service that is offered as the elements that has attracted them to acquire the phone. The popularity and functionality of the device also accumulated high scores as far as the attractive features are concerned as a significant number of respondents referred to these features as critical to them. A large number of respondents seek customer service from Apple through the internet while telephone and authorised dealers follow in that order as the preferred medium of obtaining customer support services. However, telephone provided the fastest replies as far as customer service is concerned as clients would take roughly three minutes before he/she would be served. Half of the respondents are satisfied with the kind of customer support services that they receive and would recommend them to a friend. A fifth of the respondents is very satisfied with services thus demonstrating the high levels of service quality and professionalism that Apple has employed in its operations. 70% of the iPhone users are contended with the iPhone devices and would repurchase an improved version of the phone in future. It is evident that iPhone users have a strong sense of brand loyalty to the machine as its rating stand at 67% compared to other brands. However, 30% of the iPhone users think other brands have superior or rather better features when compared to those iPhones have. 8. Conclusion It is prudent that iPhone customers are highly satisfied with the kind of services that they are receiving. The reason behind this is the specialisation that has been enhanced in the customer service department that allows for clients to be served promptly and effectively thus guaranteeing their satisfaction. The primary element that draws the attraction of people to the iPhone is the kind of customer service that is offered on top of the brand popularity of iPhone. That notwithstanding, the appearance and functionality of the phone have also contributed to the attractive features that draw potential customers to the product. Apparently, the organisation has made significant efforts to improve its customer service delivery as it has trained its store representatives to efficiently handle customers’ complaints and resolving them promptly to reduce the waiting time that clients have to delay in the service centres as they wait for services thus making the brand more attractive. 9. Recommendation Apple should improve its customer support service in order to regain its competitive advantage in the mobile phone market. Relatively, despite previously engaging in market analysis before designing its products the company should extend the geographical area under which it conducts its analysis to incorporate a large sample space for it to receive varied opinions from different people that are geographically dispersed. Additionally, iPhone should work to improve the accessibility of its service centres since from the findings a significant number of people opted to utilise internet and telephone to seek support as opposed to physically visiting the centers. 10. Reflection The project was quite involving but thanks to the dedicated embers that our group had. To begin with all of our members were conversant with each other thus we started off without nay for of introduction to get to know each other. Based on our knowledge of business and the emerging issue in the business environment we decide to pursue the topic of investigating customer satisfaction for iPhone. It was a terrible project given the fact that Apple tends to keep most of its information away from the public eye. Since all of the group members are iPhone user, it was quite easy for us to relate to the research question thus made it more elaborate and thus facilitated our efforts to tackle the project. The part of designing questionnaires was quite challenging as we found difficulty coming up with relevant and appropriate questions that would give us our desired results. Through secondary research, we were able to gather a volume of information that increased our knowledge of the topic and at the same time made it easier for us to formulate the questions. Teamwork was profoundly demonstrated through the entire session of the research we were able to polish our communication skills especially the instances whereby we would meet respondents and administer the questions. At first it was challenging for so of us by the pilot questionnaire helped us build confidence and courage that enabled us to undertake the final surveys with ease. References ACSI, 2014. Benchmarks by Company. Available at: http://www.theacsi.org/index.php?option=com_content&view=article&id=149&catid=&Itemid=214&c=Apple&i=Cellular+Telephones [Accessed on 29 Apr. 15]. Brooks, L.J., and Dunn, P., 2011 Business & Professional Ethics for Directors, Executives and Accountants. 6th ed. Boston: Cengage Learning. Dawson, C., 2013 Advanced Research Methods: A Practical Guide for Social Research Projects. London: Hachette. Gallo, C., 2012 Apples Secret Employee Training Manual Reinvents Customer Service in Seven Ways. Available at: http://www.forbes.com/sites/carminegallo/2012/08/30/apples-secret-employee-training-manual-reinvents-customer-service-in-seven-ways [Accessed on 29 Apr. 15]. Goddard, W. and Melville, S., 2004 Research Methodology: An Introduction, 2nd ed. Oxford: Blackwell Publishing Hannah, A. Prof., 2007 ‘Questionnaires in Education Research’, Published Faculty of Education, University of Plymouth [Online] Available at: http://www.edu.plymouth.ac.uk/resined/QUESTS/index.htm [Accessed on 29 Apr. 15]. Hodgkins, K., 2014 Apple loses ground in consumer satisfaction survey. Available at: http://www.iphonehacks.com/2014/01/apple-loses-ground-consumer-satisfaction-survey.html [Accessed on 29 Apr. 15]. Ma, T., 2014 Professional Marketing and Advertising Essays and Assignments. Kindle format [e-book reader} Available at: http://books.google.co.uk/books?id=cCSpAwAAQBAJ&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q=withstand%20intense%20competition%20&f=false [Accessed on 29 Apr. 15]. Mao, T., 2010 ‘Customer Brand Loyalty’, International Journal of Business and Management, 5(7), p. 213 NSCI (2014) Scores by Company. Available at: http://ncsiuk.com/index.php?option=com_content&task=view&id=149&Itemid=157&c=Apple [Accessed on 29 Apr. 15]. Saunders, M., Lewis, P., and Thornhill, A., 2007 Research Methods for Business Students, 6th ed. London: Pearson. Titlow, J.P., 2013 Take That, Android: iPhone still Wins at Customer Satisfaction. [Online]. Available at: http://readwrite.com/2013/03/21/take-that-android-iPhone-still-wins-at-customer-satisfaction [Accessed on 29 Apr. 15]. Appendix 1 Contact UsClient Login Score tables print best in landscape. Legend Notes ACSI releases industry results throughout the year and updates the national index quarterly. Baseline measurements are from the summer of 1994. **The limited-service restaurant industry was not measured in 2004 due to a change in the quarterly measurement system that was in place at that time. ***Measurement for the Internet travel industry was moved from the fourth quarter of 2013 to the first quarter of 2014. The "All Others" score for an industry represents the remainder of the total industry market share, less the market shares of the ACSI-measured companies. It is an aggregate of a representative number of customer interviews from each of potentially hundreds of smaller companies within the industry. Individual company scores within the "All Others" category cannot be derived without additional data collection (see "ACSI Products and Services," or to generate your own ACSI score using the ACSI methodology, see "ACSI MonitorSM"). Appendix 2 Scores By Company Apple Base- line 09 10 11 12 13 14 Previous Year % Change First Year % Change Apple NM 81 82 1.0 1.0 Mobile Phones NM 78 79 1.3 1.3 All Others NM 75 78 4.0 4.0 HTC NM 73 78 7.0 7.0 Nokia NM 78 78 0.0 0.0 Samsung NM 78 78 0.0 0.0 Sony NM 79 75 -5.0 -5.0 Blackberry NM 70 70 0.0 0.0 Legend N/A Not Available # Company Merger NM Not Measured ∧ Industry Aggregated Notes The NCSI-UK releases results on a quarterly basis. Baseline measurements are from 2008. The "All Others" score for an industry represents the remainder of the total industry market share, less the market shares of the measured companies. This benchmark is an aggregate of a representative number of customer interviews from each of potentially hundreds of smaller companies within the industry. ©2013 The NCSI-UK. All Rights Reserved. Read More