Assessment of the Basic Model of Consumer Influences in the of Apple Inc - Case Study Example

Consumer Behaviour Projects Student’s Name Institutional affiliation Professor’s name Course title Date Consumer Behaviour Projects: The Case of Apple Consumers in Australia Introduction Advertising plays a critical role on influencing the purchasing behaviour of consumers. The growth of technology industry has increased the need for effective advertising. Thus, ineffective advertising does not have a positive impact on the purchasing behaviour of consumers. With globalization and advancement in technology, it is necessary to have better communication channels of media advertising that can positively influence the decision of consumers buying electronic products like Apple desktops. Apple is a multinational corporation that focuses on consumer electronics, computer software, personal computers and commercial servers (Ayalew, 2011 p. 23). Apple Inc. also distributes media content. The marketing mix of Apple is an example of a successful outreach to customers. The product in this case study is Apple Mac. Apple Mac desktops are some of the most famous Apple products. Apple Mac was launched in 1984 and since its inception; it has gained popularity as one of the global leaders in electronics’ industry (Ayalew, 2011 p. 23). The price of Apple Mac desktop as compared to competitors is not low because it is a premium product. In Australia, Apple is ranked one of the most profitable companies. Australia is listed in the ten most Mac-friendly countries in the world. According to Ayalew (2011 p. 23), Apple Mac had a market share of 14% in Australia in 2011. Apple uses customer driven marketing strategy to prove its efficiency in creating value for customers. The rapid growth in the Australian economy and the continuous development of technology has led to intense competition in the consumer electronics industry. Depending on high technology, consumer electronics manufacturers, including Apple Inc., are able to increase their productivity and develop varieties of consumer electronics constantly. The main aim of Apple Inc. is to meet the changing consumer needs and demands (Ayalew, 2011 p. 23). In the technology industry today, customers go through various options during their decision making process before they can purchase the product. Apple Inc, therefore, needs to have competitive media marketing strategies to interact with consumers (Harris, 2012 p. 231). The growing role of marketing and the types of marketing a company chooses is very important. Marketing is about a business creating consumer interest in the products and services it produces, based on the right time and the right place. In this paper, the consumer behaviour model is explored with reference to media advertising of Apple Mac desktop. Furthermore, the factors which affect the consumer decision making process are explained with focus on the Australian target market. Objective The aim of this paper is to research on the negative and positive influences of media marketing mix on the attitudinal buying behaviour of Apple desktop in the Australian market. The paper will explore the consumer buying behaviour in relation to the consumption of Apple desktop. The paper will also evaluate impacts that Apple’s marketing mix has on the purchasing behaviours of its desktop computers. Apple will serve as an effective case study to learn the differences significantly witnessed in the relationships between the perceptions of customers on the media marketing mixes and their purchase and use of the products. Sample profile Apple’s target market in Australia is divided into three segments. The professional people who are looking for faster communication devices and applications are given first priority. The professional people are the most profitable segment for the company. Students who need technological devices for their educational needs and connecting with friends are the second segment. People who need personal computers for general purposes are Apple’s last segment. The segmentation of Apples target market is based on demand rates. Apple does not compromise on prices, and therefore, sells its desktops at a higher price than that of competitors. However, the company strives to offer the best available technology for faster communication. Importance of consumer behaviour Consumers make buying decisions daily. For Apple Inc. to understand consumer buying decisions, it has to do its research in great detail. Consumer behaviour is based on the concepts of consumer purchase decision making process, and the actual acts of consumers buying the products, and using it (Hill, Jones & Schilling, 2014 p. 123). Marketing has been progressive over the years in terms of positioning, segmentation and targeting of a product. The marketing progress is one of the core aspects of consumer behaviour. The study of consumer behaviour is, therefore, necessary for Apple Inc. Apple has experienced remarkable success with its refined products that continually have positive feedback from consumers. Through thorough study of consumer behaviour, Apple is able to retain a strong and lasting relationship with its Australian customers. For a marketer to deliver products to the market successfully, understanding the needs of the consumers and what influences their purchasing behaviours is important. Marketers study the actual buying behaviour of consumers, to find out the reasons why consumers buy, what they buy and at how much. Learning about why the consumers buy, however, is challenging for marketers. The challenge in the process of learning consumer behaviour is as a result of varying needs of each and every consumer. All consumers have their own reasons of purchasing a particular product, in relation to their unique needs and wants. The second challenge is that the consumer behaviour is continually influenced by changing factors. In this regard, an Apple desktop marketer must be aware of the trending influential factors in consumer purchase process (James, 2012 p. 34). To understand consumer behaviour, marketers are focused on the central question of: how responsive are the consumers to the marketing and advertising efforts that a company uses? (James, 2012 p. 34). A competitive company understands the response of consumers to the different features of its products, prices and advertising appeals used. Models of consumer behaviour show the marketing and other stimuli that enter the consumer’s mind to produce certain responses. Apple uses an effective way of evaluating their consumer’s behaviour to have effective online marketing, by assuming that their buying behaviour is reflected in their online shopping (Kaur & Abodallahian, 2014 p. 486). Apple takes into consideration its consumer’s time presses and technical savvy, by focusing on their products and technology. They design their websites with tags that are related to their main products, such as iPod, iTunes, iPhone and Mac desktops. Putting tags of their main products in Apple’s websites facilitates provision of intensive and convenient information to consumers who engage in online shopping (Kaur & Abodallahian, 2014 p. 486). The approach used by Apple is based on its behavioural assumption for consumers. Assessment of the Basic Model of Consumer Influences in the Case of Apple Inc. Consumer behaviour is influenced by both internal and external factors. Internal influencing factors include personality, motivation, memory, lifestyle and attitude, learning and emotion. According to Kaur and Abodallahian (2014 p. 486), consumers choose products that express their personalities. Personality is unique to different individuals, but it can be applied to groups to determine the purchasing behaviour of people, through combining characteristics and traits. Some of the unique traits that an individual holds are knowledge, age, profession, lifestyle and financial situation (Lamba & Yadav, 2014 p. 109). The Five Factor Model Approach to personality traits determines that the main traits that translate into behaviour are extroversion, stability level, agreeableness, Conscientiousness and openness to experience (Lamba & Yadav, 2014 p. 109). Apple segments its market into meaningful consumer groups. Apple marketers, therefore, identify the personal factors that may influence a consumers buying behaviour when planning for the most effective channel of media advertisements. Focusing on individuality during advertising may pose a challenge to marketers because every consumer is unique. It is, therefore, hard to come up with specific advertisements that are attractive to specific people and fail to disappoint others. Combining the characteristics of consumers helps in determining their buying behaviour (Moser & Raffaelli, 2012 p. 143). Targeting specific segments in specific media advertisements, such as online, social media, television and radio advertisements becomes simple and effective. To serve the Australian consumer groups well, Apple provides differentiated service to the targeted consumers. Apple focuses on similar traits of consumers and positions itself in their minds (Moser & Raffaelli, 2012 p. 143). Apple has chosen to utilize personal factors to implement their marketing successfully. For example, Apple’s opinion that every individual is unique, allows different consumers to buy their favourite desktops and install favourite software in them. All consumers, therefore, gets a unique product for themselves. A consumer’s underlying motivations influence them to make certain decisions. According to Maslow’s Hierarchy of Needs, people’s hierarchy of needs start with physiological needs, safety and security needs, love and belonging needs, esteem needs and self-actualization needs (Solomon, Russell-Bennett & Previte, 2012 p. 134). People’s buying behaviours are motivated by needs that have not been met yet. Focusing on targeted audiences unmet needs during media advertisements enhances the effectiveness of Apple’s marketing strategies. Consumer behaviour is influenced by external factors, such as culture and values, demographics, and social class reference groups and marketing activities. According to Swalwell (2012 p. 63), cultural factors are important to a consumer’s purchasing decision because they play a critical role in their personal needs and behaviours. Cultural factors may include values, attitude and perception. Some cultural factors are dominated by educational levels, religious beliefs, social culture and life experiences. Such factors shape a person’s consciousness and ways of behaving. In addition, social or class also plays a vital role and it is reflected in the purchasing habits of a consumer. The combination of wealth, income, occupation, education and other external factors are reflected in a consumers buying behaviour. For example, consumers in the Australian market measure their social status through determining their consumption levels. Therefore, a higher consumption level means a higher social status. Apple uses social status variable to encourage customers to purchase Apple Mac desktops, although they are perceived to be expensive (Ayalew, 2011 p. 23). The use of this variable during media advertising is successful for Apple because owning an Apple Mac desktop is fashionable in Australia (Ayalew, 2011 p. 25). Advertisements based on segmenting consumers who buy expensive Apple desktops as being financially well, are successful. According to Harris (2012 p. 234), the act of making a purchase can be influenced by physical factors such as weather, lighting or mood. The social surroundings, such as the atmosphere of the store, also influence a customer purchasing behaviour. Marketers, thus, strive to identify the situational factors that may have positive influence on the buying behaviour of the consumer. When advertising Apple desktop, Apple marketers include the situational factors that are conducive for the target market. For example, targeting students during advertisement would entail focusing on an educative background focusing on the benefits of the Apple’s desktop to the student. The decision making-process stages, such as problem recognition, information search, alternative evaluation, outlet selection purchase and post-purchase activities also have an important role in purchasing behaviour of Apple desktop consumers (Harris, 2012 p. 236). Decision making influences form part of psychological factors that influence the buying behaviour of Apple’s desktop. The psychological factors that are driven by views, needs, motivation, attitude and perception are the hardest to manage (Hill, Jones & Schilling, 2014 p. 123). For example, when a resource is scarce in the market, people perceive of it to be very valuable. Consumers are more driven to buy rare things because they place more value to them. The perception of the rarer a resource is the more valuable it is, has formed Apples marketing mantra. This mantra helps to drive customers’ psychology and draw them closer to Apples products. In addition, Hill, Jones & Schilling (2014 p. 123) states that Apple uses impatience and herd mentality marketing to draw their consumers. According to James (2012 p. 37), when people see others doing something they follow suit. Assessment of the Factors Affecting the Consumer Decision Process from the Above Model in the Specific Context Consumer decision making process has six vital stages. The first stage which is problem recognition can be influenced by external factors and internal factors. A consumer must recognize their problems based on their needs. Their perception of their problem can be stimulated by external factors, such as atmosphere of the store, channel of advertising and witnessing the actual use of the product (James, 2012 p. 38). The professional people segment of the targeted Australian market may go through this first stage by seeing a television advertisement of Apple desktop or by Apple’s secretive press conference. The students segment of the targeted Australian market may go through the problem recognition stage by seeing their peers using Apple desktop effectively. The targeted consumers then recognize the need to purchase the product. The perception the advertisement and the actual use creates, depends on the importance of the product to the consumer (Kaur & Abodallahian, 2014 p. 489). The second stage of the consumer decision making process is information search stage. Information search stage is influenced by both internal and external factors. Consumers search for information from their minds (internally) and from advertisements and other public sources (externally) (Kaur & Abodallahian, 2014 p. 486). The consumers may also choose to try out the product. The third stage of the consumer decision making process is alternative evaluation. The consumers, having searched for information, make a list of products that may solve their problems. The consumer will compare and evaluate the attributes of the products through personal criteria or subjective factors. This stage is important for marketing of Apple desktop because when advertising, the marketer has to focus on the attributes of the product that differentiates it from the competitors (Kaur & Abodallahian, 2014 p. 487). The fourth stage of the decision making process is outlet selection. By the end of the evaluation stage, the consumer has decided which product to buy. The decision includes from whom to buy, where and when (Kaur & Abodallahian, 2014 p. 486). When Apple is marketing its products through media advertisements, it focuses on influencing the consumer but the products. The second last stage which is purchase is important because the consumer when purchasing expects to get the value of the product as it was advertised in the media (Lamba & Yadav, 2014 p. 109). To satisfy the needs of the customer, Apple makes sure that customers get the Apple desktops that have the attributes advertised in the media. The final stage which is the post purchase stage is critical because the consumer compares the attributes of the products and compares them to the advertised attributes. The consumer then ranks their levels of satisfaction regarding the purchase. This stage of the decision making process is also influenced by both internal and external factors. Apples media advertisements are successful channels of marketing its desktop in the Australian market. Marketing Implication Understanding consumer decision making process and behaviour is important when trying to market an organization’s products. After analysing the buying behaviour of potential consumers, a marketer is able to understand the profile of the consumer. Accurate profiling of potential customers maintains healthy profitability for the company. When marketing Apple’s desktop in Australia, it is important to understand the various consumers that are present in the market. Identifying the profile of potential consumers that fits into the Apple’s organizational framework is a critical step. Segment identification is, therefore, important to develop the best marketing strategy for different segments. Segmentation helps in determining the most effective advertising methods to attract, retain and enhance the customers buying Apple’s desktop. The profile of the potential consumers of Apple desktop includes people from all generations. Each of the generations has unique history, lifestyles, experiences, values and demographics. Generational characteristics affect the buying behaviour of different generations. To market Apples desktop to multi-generational consumers, Apple uses different media advertising channels to appeal to the unique behaviours and needs of individuals. Apple, therefore, adopts a multi-generational marketing to gain the attention of the diverse buyers. Marketers have to do thorough research to understand the situations they will face. With the understanding they gain, marketers are able to deduce the responses to expect from customers according to different stimuli. A customer is exposed to stimuli that can be reduced to the four p’s of marketing mix: product, price, place and promotion. According to Lamba and Yadav (2014 p. 111), marketing involves having the right product, in the right place, at the right place at the right time. Based on the conclusions of the consumer decision making model, competition between businesses has shifted from the traditional mix of product, price, place and promotion to a single signifying people. The people represent consumers. In the case of Apple desktop, the first thing that marketers should take into account is the product, which is Mac desktop. The product has to satisfy the needs of the identified segment of potential customers. When marketing their product, Apple also has to take into account the price the consumer has to pay for the product. The price has to be competitive as compared to competing organizations. Apple utilizes the four p’s to obtain loyal consumers that make them winners. Study of consumer buying behaviour implies that Apple has to incorporate competent media advertising communication channels. Influential advertising plays a great role in influencing the buying decision of consumers. Conclusion and Recommendations Australia has undergone various advancements in technology. Unlike the past where there were few technological products to choose from, consumers are currently faced with a variety of personal computers. Therefore, there is intense competition among electronic dealers like Apple Inc and Samsung. Doing thorough research on the consumer buying behaviour of the potential customers in Australia has helped Apple to segment profiles of potential customers. Apple has then been able to make use of efficient media advertising communication channels to reach their targeted customers. In future, Apple Inc. is prone to higher levels of competition and challenges associated with advertising Apple desktop. To face the challenges, it is recommended that Apple should invest more in media advertising and utilize more attractive and customized symbols to attract consumers. Australia is undergoing great transformations and advancements in terms of technology. It is, therefore, recommended that Apple should upgrade the attributes associated with Apple Mac desktops to meet the changing demands and needs of consumers. Apple Mac desktop is one of Apple’s viable mass market products. It is recommended that Apple should segment its customers into narrower segments to enhance strategies of customer attraction and retention. Making narrower segmentation will also enhance Apple’s media communication plan, to reach and influence specific consumers. Future research should be focused on how different kinds of media advertising influence people buying behaviours. Future research should also be focused on the effectiveness of advertising in reaching targeting consumers and whether it increases profitability for Apple. Finally, there is a research gap in the intensity of emotional response to marketing stimuli. Further research should, therefore, be focused on the intensity of stimuli response and the intensity of customers to remember brand image. 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