The influence of customer perception on buying

decisions of Apple iPhone

26 October 2018, Friday

Summary

The research project includes a small

research on the customer satisfaction and
buying decisions of iPhone, according to
the research paper which were already
published we found the iPhone customers
are satisfied. A structured questionnaire
was used for data collection to identify
what makes the customer to purchase
iPhone and how it is satisfying its customers and how it influences its future buying decisions. The
conclusion is depended on the students of Manipal Institute of Technology (MIT), Department of
Commerce (DOC), Manipal Centre for Humanities, Faculty of Architecture (FOA), School of
communication (SOC), School of Allied Health Sciences (SOAHS), Manipal College of Nursing
(MCON), and other colleges in MAHE. for the age group of 17-20, 21-25 and above 25. Even the
survey like sampling the data collection have shown that most of the students are preferring iPhone.

Background

Business always starts and closes with customers and hence customers must be as the king of
market. All the business enhancement profit status image etc. of the organization depends on
customer hence it is important for all the organization to meet all the customers expectations and
identify that they are satisfied customer which influences future buying. This study is about the
consumer perception and buying decisions of iPhone. The study is about the pros and cons of
iPhone. The study is been made to know how many of the customers are satisfied with iPhone.
The study has been carried out with the students of MAHE. We require primary and secondary as-
well-as Qualitative. The data can be gathered from the selected students from Manipal Institute of
Technology (MIT) and Department of Commerce (DOC), Manipal Centre for Humanities, Faculty
of Architecture (FOA), School of communication (SOC), School of Allied Health Sciences
(SOAHS), Manipal College of Nursing (MCON), and other colleges in MAHE. We are mainly
focusing on young people because they prefer such phone and they know the advantages and
disadvantages of it. The Research study has been conducted in the month of September. Our
sample design will include the age groups of 17-25+ and it will be a random sampling method.
The techniques used in collecting the information through the google forms which was circulated
in the college class groups. The data have been analyzed from the responses received from the
google forms.

Problem statement

the present study is done to understand the customer perception and buying decisions of iPhone.
This study can be done by collecting information on the research variables that is Buying decisions
(Dependent variable) and Customer perception (Independent variable).

Research Objectives

 To study the customer perception of iPhone users.

 To study the buying decisions of iPhone.
 To compare the customer perception and buying decisions on iPhone.
Review of literature

1. Customer perception
 Consumers use different variables to determine the quality of a product. These quality lies
in the eyes of the consumers in question. What may be seemed to be of high quality to one
consumer may be inferior to another. Even though many consumers use price as an
indicator of product quality (Kotler 2001), there are doubts in consumers mind whether
there is a relationship between price, value and product quality and further price itself is a
strong indicator of product quality in the absence of any information.
 Perception, according to Gregory et al (1995), is a set of process by which an individual
becomes aware of and interpret information about the environment. If everyone perceived
everything the way, things would be a lot simpler, of course, the reverse is true. Moreover,
people often assume that, reality is objective that, we all perceive the same things in the
same way.
 According to Markin (1995), perception is concerned with the way in which we select and
recognize sensory data presented by our environment. In other words, perception may be
defined as a complex process by which people select, organized and interpret sensory
stimuli into meaningful picture of the world. Markin Continues that, a number of stimuli
constantly reaching consumers sensory organs from the environment they select certain
stimuli to which they attend, they organized these stimuli so that they become
understandable, but their interpretation of sensory stimuli involves more than just receiving
and processing information by attitudes and beliefs and their past learning as is by the
character of the stimuli themselves.
 Courtland L, Bovver and John J. Thrill (1992, P 153) have the view about perception;
before consumers can buy a product, they must be aware that it exists. This is a process
that starts with being exposed to the stimuli that represent a particular product, attending
to these stimuli and interpreting them to form an overall perception of the object. The Steps
involve exposure, attention and interpretation.
 Perception is concerned with the process by which our five senses are organized and
interpreted (Solomon & Rabolt, 2004)
 The process by which an individual select, organizes and interprets stimuli into a
meaningful and coherent picture of the world (Schiffman and Kanuk, 2000)
 People can form different perceptions of the same stimulus because of 3 perceptual
processes: selective attention, selective distortion, and selective retention (Kotler, 2004).
 Perception is concerned with how individual see and make sense of their environment (Fill,
pp123).
 Perception also leads to decision making and the decisions to act or not to act depends on
how you develop motivation (Kotler, 2003).

2. Customer buying behavior

 Consumer buyer behavior is considered to be an inseparable part of marketing and Kotler
and Keller (2011).
 Buyer behavior has been defined as “a process, which through inputs and their use though
process and actions leads to satisfaction of needs and wants” (Enis, 1974, p.228).
 It refers to the buying behavior of final consumers, both individuals and households, who
buy goods and services for personal consumption (Kumar, 2010, p.218).
 According to Blackwell et al (2006) consumer buying behavior is itself is a complex,
dynamic issue which cannot be defined easily and commonly. Therefore, the concept of
consumer buying behavior has been defined in different ways by different researchers.
 The definition formed by Solomon et al (1995) describes consumer buying behavior as a
process of choosing, purchasing, using and disposing of products or services by the
individuals and groups in order to satisfy their needs and wants. Similar definition of
consumer buying behavior is offered by Schiffman and Kanuk (2000) in which they
describe it as behavior that consumers express when they select and purchase the products
or services using their available resources in order to satisfy their needs and desires.
 Consumer buying behavior is defined by Stallworth (2008) as a set of activities which
involves the purchase and use of goods and services which resulted from the customers’
emotional and mental needs and behavioral responses. It is further stated by Gabbot and
Hogg (1998) that the process may contain different activities and stages.
 3. Previous research
 Customer perception on iPhone by Abdul Qaymoor, date of submission 20th April 2011

Research design and Methodology

Research Design: Companies should try to satisfy their customers. Satisfied customers usually
return and buy more, they tell other people about their experiences, and they may well pay a
premium for the privilege of doing business with a supplier they trust. Statistics are bandied around
that suggest that the cost of keeping a customer is only one tenth of winning a new one. Therefore,
when we win a customer, we should hang on to them. Conducting a customer satisfaction survey
is a good way to start measuring where you stand in terms of customer satisfaction.

Stage 1: Secondary data is the data which is already collected by someone. They are secondary in
nature and area in shape of finished product. Secondary data was collected so as to have accurate
results. Required data was collected from various books, magazines, journals and internet. For
analysis purpose, weighted average, ranking and Percentage method can be used and review of the
customers you have already experienced the iPhone and their review can be taken to collect the
data.
Stage 2: Primary data is that data which is collected for the first time. It is original in nature in the
shape of raw material for the purpose of collection of primary data a well-structured questionnaire
was filled by the respondents and unstructured interview. The questionnaire comprises of close
ended as well as ended questions. These questionnaires will be given to youth and will be asked
to fill the questionnaire or Google forms will be given to them and asked them to fill it through
online as our research samples are youth or student.

Location - Centre for Humanities, Faculty of Architecture (FOA), School of communication

(SOC), School of Allied Health Sciences (SOAHS), Manipal College of Nursing (MCON), and
other colleges in MAHE

Time period – 1 month

Sample design – 17-25, 21-25 and above 25.

Stage 3 a) Sampling method: The sampling used for the study is convenient sampling. This
sampling is selected by the researcher for the purpose of convenience to access. In this sampling
some of the respondents will be selected as samples and they will be questioned or interviewed
from the respondents for sampling average will be taken and data will be collected.
b) Statistical Analysis: To collect the data analysis the data the statistical tools can be used.
Statistical tools can be used is Correlation.

Analysis and interpretation

 Age Group (iPhone and smartphone users)

(N) Frequency Percentage

17-20 113 113%

21-25 11 11%
Above 25 3 3%
The survey shows that age group between 17-20 users of iPhone are 113%. Age group between
21-25 are 11% and age group above 25 is 3%

Buying Decision
 Does the BRAND matters to you?
(N) Frequency Percentage

Yes 28 28%

No 6 6%

The survey shows that brand matters to 28 % of the population. And the brand doesn’t
matter to 6% of population.

 Do agree iPhone is value for money

Sample Mean S. D

34 2.264706 1.009042165

The survey shows that most of the iPhone buyers think that iPhone is worth the value.
According to the research mean of the sample is 2.264 and Standard deviation is 1.009.
 This shows that there is more variation in response as different samples prefer different
brand.

 iPhone has good design

Sample Mean S. D

34 1.558824 0.603479

According to the responses of all the samples mean is 1.558 and Standard deviation is 0.603.
This shows that majority of the samples agree that iPhone has good design. And all the responses
have variation in their opinion, so they have SD-0.603

 Has good and sturdy build quality

Sample Mean S. D

34 1.794118 0.796293

According to the responses of all the samples mean is 1.794 and Standard deviation is
0.796. This shows that majority of the samples agree that iPhone has good and sturdy
build quality. And all the responses have variation in their opinion, so they have SD-
0.796.

Customer Satisfaction

 I feel proud owning an iPhone

Sample Mean S.D

34 2.088235 0.852941

The survey shows that most of the iPhone buyers feel proud owning an iPhone.
According to the research mean of the sample is 2.088 and Standard deviation is 1.853.
This shows that there is a slight variation because most of the iPhone users feel proud
owning a iPhone.

 The phone matches my lifestyle

 Sample Mean S. D

34 2.235294 0.806548

The survey shows that most of the iPhone buyers think that the iPhone match their
lifestyle. According to the research mean of the sample is 2.235 and Standard deviation is
0.806. This shows that there is more variation in response as different samples prefer
different brand.

 Apple (iPhone) provides best customer tech support service

Sample Mean S. D

34 1.911765 0.70158

The survey shows that the mean of the samples is 1.911 and SD is 0.702. So the survey
says that most of the iPhone users agree that apple company provides good customer
service and also all the respondents have slight variation in their opinion.

 Do you agree that apple phones go with today’s generation?

Sample Mean S. D

34 2.941176 1.764706

According to the responses collected from the samples it shows that mean is 2.941 and
SD is 1.764. Most of the customers agree that iPhone goes with today’s generation and
there is more variation between responses of samples.

From the correlation analysis it is found that, the correlation value is 0.416167216 as it is
appropriate to 0 so its positive correlation.

Findings

 In our survey we found out that majority of the iPhone users are of age group between 17-
20, 21-25 and above 25.
 The survey shows that the brand name matters most of the population percentage.
  The survey shows that most of the iPhone buyers think that iPhone is worth the value. This
intend users to buy iPhone in future.
 The research shows that majority of the samples agree that iPhone has good design.
 According to Kotler many consumers use price as an indicator of product quality (Kotler
2001), there are doubts in consumers mind whether there is a relationship between price,
value and product quality and further price itself is a strong indicator of product quality in
the absence of any information. But according to this survey Majority of the samples agree
that iPhone has good and sturdy build quality.
 Buyer behavior has been defined as “a process, which through inputs and their use though
process and actions leads to satisfaction of needs and wants” (Enis, 1974, p.228). This
definition can be satisfied as this survey shows that iPhone users feel proud owning a
iPhone.

Conclusion:
Our Research was on iPhone to study the influence of customer satisfaction on future buying
decision of iPhone users.
This research examines iPhone’s successful growth strategy and its early efforts at developing in
the market. The research shows that Apple company is developing day by day providing more
features through new model and more customers. But according to our research there are some
factors due to which there is slight variation through which some customers are not satisfied, and
they don’t intend to continue to buy iPhone in future. Conclusion of the research is that there is
relation between the variables that is the customer satisfaction and the future buying.

Bibliography

1) Agyekum C., Haifeng H., Agyeiwaa A. (2015, February 3). Consumer Perception of
Product Quality. Retrieved September 07, 2018 from
http://article.sapub.org/10.5923.j.m2economics.20150302.01.html
2) UK Essays. (2016, December 5). The Definition Of Perception Marketing Essay.
Retrieved September 07, 2018 from https://www.ukessays.com/essays/marketing/the-
definition-of-perception-marketing-essay.php
3) Qayoom A. (2011, April 20). Consumer’s perception on iPhone. Retrieved September
07, 2018 from https://www.scribd.com/doc/99185391/Report-on-Consumer-s-perception-
on-iphone
Research by
o Shaun Dsouza - 172621124
o Saurav Shetty - 172621126
o K Vidharshini - 172621122
o Kushbu Kanwar - 172621134
o Aluri Satwika - 172621132