Consideration of the Audi Brands in Relation to the Digital Application - Case Study Example

Marketing Name Course Lecturer Date Table of Contents Table of Contents 2 Introduction 3 Literature Review 3 Presentation of findings 5 Usage of Apps 6 Reasons for using the app (digital application) 6 Probability of Using Apps (Digital Application) in Purchases 7 Ownership of Audi Car 8 The Audi apps (digital applications) that are of relevance 9 The style of apps (digital applications) 10 The impact of the Interactive apps with reference to the Audi brand 10 Discussion 11 Reflections 11 Conclusion 13 References 14 Appendices 16 Introduction This paper is concerned with the understanding of the interactivity of apps (digital applications) and the influence this has on the consumer buying process. The paper addresses this issue through a review of literature that relates to interactivity and also engagement of respondents through qualtrics programs. This involves structured questions that they respond to. An analysis and presentation of the results is done. Generally, it is considered that interactivity has achieved a significant level of popularity in relation to the apps that has a profound effect on the consumer buying progress. The expectation is that this trend will continuously expand in its effect as more technological advancements are realised in this area (Chaffey D and Paul R, 2012) Literature Review There is progressive developments in the issue f digital content majorly due to the advancements that are experienced in the technology. Deighton (1996), defines interactivity as ‘the ability to address an individual’. There is a need to define interactivity. The importance of this is that it will depend on the specific business and therefore impact on the overall website performance. For businesses to exist, survive and perform well, innovation is inevitable. Different people have sought to research on this matter in its various angles. Trainor (2012) does an examination of the development of Customer Relationship Management (CRM). It is identified in this research that, ‘Today’s social customers feel empowered and are expecting if not demanding to play an active role in firm processes.’ An investigation by Noort, Voorveld, Reijmersdal (2012) revealed how information flow influences the behavioural, affective and cognitive effect. The conclusion highlighted that the product information was the most crucial in determining a visitor’s interest to engage them effectively. The social media has been identified by Hajli (2013) in its effect using models while considering the issue of the positive impacts this has on businesses as well as creation of online communities. The variables of concern that Hajli considers in his primary research are relationships among intention to buy, perceived usefulness and trust. Kim et al. (2013) conducted a research where they provided a list of the main attributes that a brand app should have so that the customers find it to be attractive. These attributes are: feedback, customisation, control, motivation, novelty, vividness and multi-performing. . “Branded apps differ from traditional online and mobile advertising, such as pop-up or banner ads, in that users, not advertisers, choose to continue using the apps” (Kim et al., 2013, p.55). The mobile devices are increasingly gaining popularity, as Lowenthal (2014) identifies, by shopping and browsing the internet. The mobile strategy is considered highly effective especially in relation to the consumer markets. It is considerably more convenient to engage the customers through their mobile devices due to the advantages that are attached thereof. This includes the issue of mobility whereby the probability of having the customers at a close link with their devices is high. There is a prediction by Vision Mobile that the tablet application market and the smartphones will be worth £31bn by 2025 (The Guardian, 2014). The indication here is there is expected progressive growth and continuous development of the market. Specific brand customers are a big target who can now be highly engaged through mobile applications especially as enhanced by the sharp increase of the usage of smartphones. (Magrath, Victoria, and Helen M 2013, p. 117) The ability of digital advertising to track the results effectively has been considered as an advantage against traditional methods by Grensing-pophal (2014). This is in contrast to the earlier suggestions like that of Bezjian-Avery (1998) where traditional forms of advertising are considered to be more effective. . ‘Sometimes interactive is not better’, causing an effect on the consumer that, ‘interrupts the process of persuasion’ (Bezjian-Avery, 1998, 31). However, there have been a lot of adjustments in relation to the interactivity especially with the progressive technological advancements. As such, business and technology are linked in operations for enhanced sustainable success. Presentation of findings The exploratory study was majorly conducted using a quantitative approach where the qualtrics program was engaged in the collection of data. The reason for the choice is that Qualtrics survey tool is an easy-to-use, full featured, web based tool for conducting online surveys. In addition, there is vast usage of the software in various online data collection areas such as website feedback, employee evaluations, product and concept testing, customer satisfaction and loyalty and market research. The researchers identified the specific array of Audi brands. The guidelines followed the approach of asking specific questions to each of the participants, albeit open-ended questions, in order to gain an in-depth insight into current situation. There were 112 participants that were engaged in the study. This sample was considered to be representative in responding to the issues that were under investigation. Usage of Apps This is in relation to digital application. A 94% of the 112 participants indicated that they had used an app before with only 6% indicating that they had not used an app before. Statistic Value Min Value 1 Max Value 2 Mean 1.06 Variance 0.06 Standard Deviation 0.24 Total Responses 112 These results serves to indicate the popularity with which the mobile apps have gained over time. Although the nature of the mobile apps and their environment may differ, the general awareness and usage is high as revealed by the findings here. Based on the findings relating to the usage of mobile apps, mobile marketing can be viewed as a great opportunity of enhancing customer loyalty. There is an advantage in the development of links to worthwhile endeavours through enhancing interactivity through the mobile apps. Reasons for using the app (digital application) In this category, the responses were categorised in five categories representing the various reasons that pertains to the usage of the digital application. These are: information search, interactive features, fun and interest, gaming and online purchasing. The ranking represented the probability of engagement of the digital application as per the likelihood in strength of the reason for usage. There were a total of 111 responses. Statistic Information search Interactive features Gaming Fun and interest Online purchasing Min Value 1 1 1 1 1 Max Value 4 5 5 5 5 Mean 1.75 3.04 3.88 2.62 3.71 Variance 0.83 1.64 1.49 1.44 1.68 Standard Deviation 0.91 1.28 1.22 1.20 1.30 Total Responses 111 111 111 111 111 The results indicates that information search is the most important reason why people use the apps. The usage of the apps for the purpose of interactive features, and for fun and interest are also high in rank as important reasons. The usage of the digital applications for online purchasing and gaming are ranked as relatively weak reasons as motivating factors. Probability of Using Apps (Digital Application) in Purchases A list of various sources of information in the search of purchases of a car was provided. These categories were magazines, showrooms, Apps (Digital Applications), Internet, Company website, Car shows/fairs and other. A total of 109 responses were obtained. Statistic Magazines Showroom Apps (Digital Applications) Internet Company website Car shows/fairs Other Min Value 1 1 1 1 1 1 1 Max Value 7 7 7 6 7 7 7 Mean 3.74 3.08 4.61 2.00 3.02 4.94 6.60 Variance 2.51 2.43 2.42 1.80 1.85 2.16 1.08 Standard Deviation 1.58 1.56 1.56 1.34 1.36 1.47 1.04 Total Responses 109 109 109 109 109 109 109 According to the results, internet, showrooms, company websites and magazines had a high rating. This can be explained in terms of the reliability, pervasiveness and consistency over time making them quite popular. The apps and car shows/fairs are allocated relatively weak attention as a destination of information search in the enquiries on car purchases. Ownership of Audi Car There were 111 responses relating to the ownership of Audi cars. This question helped in narrowing down to a specific case in the understanding of interactivity of apps and the influence on the consumer buying decision process. The four categories in the analysis were; those who previously owned an Audi car; those in current possession of an Audi car; those who would like to own an Audi car; and a category that excludes these three categories. Statistic Value Min Value 1 Max Value 4 Mean 3.07 Variance 1.07 Standard Deviation 1.03 Total Responses 111 The category willing to acquire an Audi car and those who excluded the three categories took the higher percentage. Those in previous possession and those who are in current possession of the Audi cars were considerably low. This categories were considered important especially in regard to the comparison of the other interaction grounds in seeking the purchases of the Audi brands. In addition, a projection relating to the general marketing behaviours in relation to the digital application is identifiable. The Audi apps (digital applications) that are of relevance Out of the 112 respondents only one had downloaded the Audi apps, 22 were aware of the existence of the Audi apps while 89 were unaware of the existence of the apps. Statistic Value Min Value 1 Max Value 3 Mean 1.21 Variance 0.19 Standard Deviation 0.43 Total Responses 112 Despite the wide presence of the applications from Audi ranging from interactive magazines, creating specific Audi, bringing print to life through direct connection etc. The style of apps (digital applications) The style of apps as investigated through asking a question of preference. Three categories were paused: simple information apps; interactive apps; and a merge of the two as of equal importance. There was a total response from 112 people. Min Value 1 Max Value 3 Mean 2.17 Variance 0.72 Standard Deviation 0.85 Total Responses 112 Those in preference of simple information apps were 32, those preferring interactive apps were 29 while those who were comfortable with either of the apps were 51. The interactive apps, as the centre of attention, is strong in the sense of perceived popularity in its span of existence. The impact of the Interactive apps with reference to the Audi brand The impact of the interactive add is in relation to the buying decisions as a consumer. On a positive inclination, a hundred respondents were engaged. Min Value Max Value Average Value Standard Deviation Responses 0.00 10.00 4.79 2.42 100 The average value of 4.79 in a rating of 0-10 is considerably strongly impactful. This is in the consideration of the expected growth in dimensions relating to the interactivity agenda. Discussion It is safe to pause an assumption that interactivity in mobile apps is progressively an expanded area. The extension of the interactivity to the realm of apps is therefore not an exaggeration. The results provides a clear link in terms of user interfaces and additional capabilities as opposed to typical websites. There is great likelihood that perceived interactivity of mobile apps is a standalone construct. There is the aspect of sharing other dimensions with websites and other electronic media. There is progressive development of the mobile apps as a wider array of technological features and as universal medium (Edelman and David 2010, p67). As evidenced in the study, there is a sure development as more real-time apps are enhanced with various level of designs and use variables. The extended need to ensure that the apps are linked rightfully to the consumer buying decision processes is a matter of growing concern. Interactivity of the apps and the influence on the consumer buying decision process is an area that continues to expand in dimensions of operations and also as a concept. Reflections This paper has been able to consider the aspect of interactivity through the consideration of the literature review that surrounds this concept and engaging different respondents as has been deemed necessary. The consideration of the Audi brands in relation to the digital application has helped to narrow down in a practical case to a specific case study. It is of importance to note that this cases study has been employed in an effort to develop a projection that will necessitate generalisation to other cases as well. The literature that has been reviewed tends to agree, on a general sense, concerning the impact that this has on the marketing and the customer choice. Through interactivity, using the mobile apps, a wide range of customers are covered in a more thorough ground. The mobile phone culture has been very viral which comes as a supplement for the traditional ways of marketing or in some cases replacing them. There may be problematic issues in consideration of interactivity in research primarily from the theorised definition of interactivity. The idea of having concepts that are operation may be a challenge in itself. The other complication that may arise is related to the trend that media cultures and politics adopts in their philosophical orientations. Systemisation that is able to uphold rationality is, therefore, very important so as to bring about a logical flow both in the research and in the presentation of results. There is an expected increase that the new devices that are thus developed with enhanced capabilities. This dramatically changes the direction of research and what is established as a norm over time. Both firms and households are at a position of ensuring that they align themselves with the trend. If this is not the case, they risk, in many cases, being irrelevant to the particulars that may be demanded for. The language defining the technology, therefore, expands with time. As the apps gain more popularity, their effect in marketing and the consumer purchases is made very clear. With time, it cannot be exhaustively be discussed in marketing considerations, without a proper engagement of the issue of interactivity. In the platforms of the digital applications, there are rendered services that would otherwise be hard to offer or impossible in other cases. Given the enhanced capability of these apps, functionality is not a big hindrance since developments that are better placed to meet specific needs are developed. This paper has helped in addressing the different cases that can help reveal the place of interactivity using the mobile apps and the particular impact that this has on the customers’ decision regarding their purchases. The structuring of the questions is considerably objective and having a good progression that help uncover this issue in an exhaustive manner especially as it relates to a specific case in study. As such, a generalisation regarding the effect of interactivity in the digital applications and how the customer choices are affected is achieved. Further consideration of other dimensions of this issue is welcomed as basis research that need to be done so as to yield an extensive outlook. Conclusion This study has sought to address various issues such as: exploration of interactive websites and the relationship with consumer engagement and investigation of the effectiveness of interactivity through digital applications in adding value to a company. Seeking understanding of interactivity of apps (digital applications) and the influence on the consumer buying decisions has been taken as the area of significance. The other point of focus are harnessed in such a way that brings about a clear picture of the expected means of application. Through engagement of various respondents in the research, a generalisation can be made relating to the issue of interactivity Furner, (Christopher P., Pradeep Racherla, and Jeffry S. Babb 2014, p 15). There is progressive need for enhanced e-models in the research that will addresses the research gaps that arises in the study. This is especially the case due to the progressive changing nature of the customer experiences that are put in place through the digital applications. References Bezjian-Avery, A., Calder, B. and Iacobucci, D. (1998) New Media Interactive Advertising Vs Traditional Advertising. Journal of Advertising Research, 38, 32-32. Chaffe D, Paul R. eMarketing eXcellence: Planning and optimizing your digital marketing. Routledge, 2012. DEIGHTON, J. “The Future of Interactive Marketing.” Harvard Business Review 74, 6 (1996): 151-61 Edelman, David C. "Branding in the digital age." Harvard business review 88.12 (2010): 62-69. Furner, Christopher P., Pradeep Racherla, and Jeffry S. Babb. "Mobile app stickiness (MASS) and mobile interactivity: A conceptual model." The Marketing Review 14.2 (2014): 163-188. Grensing-Pophal, L (2014) DIGITAL ADVERTISING TRENDS YOU NEED TO KNOW. Web of Science. Econtent, 2014, Vol.37(5), pp.14-19 Hajli, N, M. (2013) A Study of the Impact of Social Media on Consumers. International Journal of Market Research, 56 (3), 387-404. Kim, E., Lin, J.S., Sung, Y., (2013). To App or Not to App: Engaging Consumers via Branded Mobile Apps. Journal of Interactive Advertising, Vol.13(1), p.53-65. Magrath, Victoria, and Helen McCormick. "Marketing design elements of mobile fashion retail apps." Journal of Fashion Marketing and Management 17.1 (2013): 115-134. Noort, G.V, Voorveld, H.A.M, Reijmersdal, E.A, (2012) Interactivity in Brand Web Sites: Cognitive, Affective, and Behavioral Responses Explained by Consumers' Online Flow Experience, Journal of Interactive Marketing, Vol.26, 223–234. The Guardian. Available From http://www.theguardian.com/technology/2014/jun/26/uk-apps-economy-worth-four-billion-pounds [Accessed 26 October 2014]. Trainor, K. J. (2012) Relating Social Media Technologies to Performance: A Capabilities-Based Perspective. Journal of Personal Selling & Sales Management, 32 (3), 317-331. Appendices My Report Last Modified: 01/05/2015 1. Have you ever used an app? (digital application)  # Answer Response % 1 Yes 105 94% 2 No 7 6% Total 112 100% # Answer Response % 1 Yes 105 94% 2 No 7 6% Total 112 100% # Answer Response % 1 Yes 105 94% 2 No 7 6% Total 112 100% Statistic Value Min Value 1 Max Value 2 Mean 1.06 Variance 0.06 Standard Deviation 0.24 Total Responses 112 2. Please drag and rank in order what you are most likely to use an app (digital application) for. 1 - Most likely 5-  Least likely  # Answer 1 2 3 4 5 Total Responses 1 Information search 55 37 11 8 0 111 2 Interactive features 17 23 24 33 14 111 3 Gaming 7 7 26 23 48 111 4 Fun and interest 26 26 27 28 4 111 5 Online purchasing 6 18 23 19 45 111 Total 111 111 111 111 111 - Statistic Information search Interactive features Gaming Fun and interest Online purchasing Min Value 1 1 1 1 1 Max Value 4 5 5 5 5 Mean 1.75 3.04 3.88 2.62 3.71 Variance 0.83 1.64 1.49 1.44 1.68 Standard Deviation 0.91 1.28 1.22 1.20 1.30 Total Responses 111 111 111 111 111 3. Please drag and rank in order where are you most likely to look when searching for a car. 1 - Most likely 7-  Least likely  # Answer 1 2 3 4 5 6 7 Total Responses 1 Magazines 12 12 23 27 17 16 2 109 2 Showroom 22 19 26 21 15 3 3 109 3 Apps (Digital Applications) 2 12 13 19 26 27 10 109 4 Internet 58 21 11 12 5 2 0 109 5 Company website 10 37 27 18 11 5 1 109 6 Car shows/fairs 4 6 9 10 31 42 7 109 7 Other 1 2 0 2 4 14 86 109 Total 109 109 109 109 109 109 109 - Statistic Magazines Showroom Apps (Digital Applications) Internet Company website Car shows/fairs Other Min Value 1 1 1 1 1 1 1 Max Value 7 7 7 6 7 7 7 Mean 3.74 3.08 4.61 2.00 3.02 4.94 6.60 Variance 2.51 2.43 2.42 1.80 1.85 2.16 1.08 Standard Deviation 1.58 1.56 1.56 1.34 1.36 1.47 1.04 Total Responses 109 109 109 109 109 109 109 4. Please select from the list which option applies to you # Answer Response % 1 I have previously owned an Audi car 17 15% 2 I currently own an Audi car 4 4% 3 I would like to own an Audi car 44 40% 4 None of these above 46 41% Total 111 100% Statistic Value Min Value 1 Max Value 4 Mean 3.07 Variance 1.07 Standard Deviation 1.03 Total Responses 111 5. # Answer Response % 0 0 11 11% 1 1 4 4% 2 2 8 8% 3 3 3 3% 4 4 7 7% 5 5 15 15% 6 6 6 6% 7 7 15 15% 8 8 20 19% 9 9 8 8% 10 10 6 6% Total 103 100% Statistic Value Min Value 0 Max Value 10 Mean 5.49 Variance 9.11 Standard Deviation 3.02 Total Responses 103 6. Audi has several apps (digital applications),ranging from Interactive magazines, creating your own Audi, and bringing print to life though direct connection - please select which of the following options apply to you. # Answer Response % 1 I was not aware of this 89 79% 2 I am aware of this 22 20% 3 Yes I have downloaded Audi apps 1 1% Total 112 100% Statistic Value Min Value 1 Max Value 3 Mean 1.21 Variance 0.19 Standard Deviation 0.43 Total Responses 112 7. Which style of apps (digital applications) do you prefer? # Answer Response % 1 Simple information apps 32 29% 2 Interactive apps 29 26% 3 I like both styles the same 51 46% Total 112 100% Statistic Value Min Value 1 Max Value 3 Mean 2.17 Variance 0.72 Standard Deviation 0.85 Total Responses 112 8. Following on from question 7 can you explain why this is? Text Response More stimulating I just want to know the information Digital medium should tread the line between the two - plain info > should've been a print piece | too much interaction with little content > you're unable to convey any messaging. No I like involvement in the app I like something to be informative and fun and entertaining at the same time Which is 9 easier to use straight to the point and inform you on a range of data simplicity ! Not big fan of new technology i dont know My phone is not very good how Both are good and helpfull Have a busy lifestyle so want thinks simple , don't want to search for info Useful get information but also interact with the data. interactive is more engaging Exciting Keep my attention longer and more interesting. no Because are more fascinating Because for me it's indifferent / Apps should be useful modern both styles are attractive and interesting to me I like being able to engage with the app. I want to offer me a lot of service through the app because i want to use it very quickly NO not IT'S USEFUL I like to customize my car I love simple app Informative Easier Deeper relationship To gain more informations at the same time As I have poor experience with Apps I like a mixture, but it needs to be easy to understand Use of apps for necessity not fun. Because in an app i want to find information as data sheets, events info ecc.. in a rapid way and, on the other hand, to have the possibility to customize and choose a precise product I like things to be clear and simple ! Easy and quick to use. Feel more involved Customising options I think simple information is useful for some purposes, but interactive features are also useful in some instances, for example searching for your nearest showroom or identifying the best model for you. It depends upon what I want to use the app for There are times when I just need the information quickly but it is fun designing the car of my dreams! more immersive Simple is good Needs to be user-friendly as well as engaging Statistic Value Total Responses 52 9. On scale of 0 -10, how much do you think interactive apps,(with reference to the Audi brand), would persuade your buying decision as a consumer positively? # Answer Min Value Max Value Average Value Standard Deviation Responses 1 Please slide 0.00 10.00 4.79 2.42 100 10. What is your gender? # Answer Response % 1 Male 71 64% 2 Female 40 36% Total 111 100% Statistic Value Min Value 1 Max Value 2 Mean 1.36 Variance 0.23 Standard Deviation 0.48 Total Responses 111 11. Please select your age # Answer Response % 1 18-25 60 54% 2 26-35 10 9% 3 36-45 6 5% 4 46-55 23 21% 5 56-65 12 11% 6 65+ 0 0% Total 111 100% Statistic Value Min Value 1 Max Value 5 Mean 2.25 Variance 2.35 Standard Deviation 1.53 Total Responses 111 Read More