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Consumer Behavior towards Apple

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Contents Page
no.
Chapter 1 : Introduction 3
1.1 About the company
1.2 History of Apple 4
1.3 Approach of the company

Chapter 2 : Literature Review


2.1 Theory

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2.2 Results of various Empirical Research

Chapter 3 : Methodology
4.1 The styles of research.
4.2 The research problem and style chosen.
4.3 Hypothesis
4.4 Research Questions
4.5 Method of Analysis
4.6 Data Sources

Chapter 5 : Analysis and Findings


5.1 Critical appraisal of literature.
5.2 Graphical appreciation of data.
5.3 Findings from Analysis

Chapter 6 : Discussions
6.1 Interpretation of results of answer to the research question
Chapter 7 Conclusion
7.1 Conclusion

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7.2 Limitations of Current Research
7.3 Recommendations for further work.

 Bibliography
 Appendix

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Chapter 1
1.1 About the company

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Apple is one of the top leaders in the consumer electronics market it produces
a wide variety of consumer electronics from computes to IPods and earphones
which have a separate identity in the market, they are the most selling and
trusted products by the consumers. Apple ranks 442 in the largest companies In
Forbes list 2011. It has a tough competition in all the consumer electronic
products that it produces but it has created a brand value to the customers with
its own identity and the unique marketing strategies that it follows. There is
havoc in the market whenever a new apple product is launched you will not see
such response from the costumers for any other product.

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1.2 History of Apple
Apple is the most the first and the most common name in the consumer
electronics market that you will hear from any passionate consumer electronics
user this is because of the brand image that apple has got in the market, to tell
about Apple it all started in 1976 when Steven Wozniak and Steven Jobs
designed the first of its computer called Apple 1, it had to wait until 1977 as
the consumers where not very interested about Apple but when Apple 2 was
first presented at a local computer trade show in US it was the only computer
which had a computer case and was well presented with colour graphics this
brought great change in the market as the customers started ordering apple 2
and the demand increased in an impressive way this gave Apple a great push in
the market of computers, then Apple disk2 came in to the market which was
the cheapest user friendly floppy drive has taken the sales of Apple to higher
levels even.
The company started growing at a rapid pace by 1980, Apple 3 entered the
market and the company and this was the time when Apple started to sell
computers in other countries and they found investors who wanted to take
chair the position of directors and the company took a leap in the computer
market. Apple has to lose Jobs from the company after his resignation it had to

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see the first ever loss in the its progress, then Apple launched the Mac2 whish
had desktop publishing software which made marketing cheaper, Windows and
IBM were the competitors of Apple but Apple has always lead the way doing
something extra then the other competitors and never stopped innovation in
2001 apple launched its IPod and then it launched IPhone which is a
considered as a status symbol even now. All the products that Apple has
launched from the first computer to the Iphone4 apple lead the market with its
own mark of satisfying consumers in the electronics market.
1.3 Approach of the Company

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Apple’s strategy can be stated as the most simplest, on the target and
intelligent. It has always proved itself by thinking different from the whole lot
group in bringing up innovative and user friendly products. A great cheer to
the research and development of Apple because the Apple products are so
imaginative, creative, and outstanding that it drags all the potential consumers
to buy its products.
It is not that costumers are very loyal to the apple products and they purchase
the products because they are Apple freaks, the simple reason why people go
for Apple is because the percentage of the satisfied and overwhelmed
consumers is very high, it is all because of the attention to detail that Apple
takes in developing, designing, and introducing a product and the how much
ever technology may be involved in the product, it is always user friendly. This
makes Apple the most reliable brand, the two only things that you cannot
expect from Apple are freedom and choice, because giving choice and freedom
in a product leaves gaps in their fulfilment when somebody has got a choice he
will look for the best one and everybody does the same this results in the
excess sale of a product with certain criteria and the product which has the
same features but lacks in some criteria will have see the bottom, this results in
competition of the two products of the same company, for example Mobile

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company like Nokia release a new mobile into the market great features an the
phone is available in various colours when consumers approach the product
and find the best looking colour phone this demotes the sale of other phone
with same features, Apple has a great strategy in dealing with the customers as
they give a very limited choice and freedom. It always distinguishes one
product from the other clearly which gives the consumers a clear idea of what
exactly have to go for, Apple never allow its own product on each other as the
other companies introduce a phone with excellent features this week and there
will be an updated version or some additions to the same phone and they

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release into the market, this makes the consumer feel that he made a wrong
choice taking that phone, he should have taken the updated version the phone.
Apple is very clear in these things and précised that it makes its consumers
happy by giving them just that which would satisfy them and keep them happy.
The fact that keeps Apple at a safe position in the consumers electronics
market is their customer strategy which is best understood by the company and
it keeps doing better and better as it has been the trend setter in consumer
electronics market, any new product it launches will be a refreshing new
product and the people just wanted that change in the product with the
hallmark of Apple’s limitations in it. Those limitations work in favour of
Apple as consumers get all their apps and software’s from the apple store this
increases the revenue and also builds trust of the consumers by satisfying their
needs as a one point contact.

Chapter 2: Literature Review


Introduction

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This section primarily focuses on the theories and diverse empirical researches
about the question of research. The research questions are as following:
1. Illustrate, narrate and define in clear expression the significance of an
electronic trade concerning national and international blogs.
2. Emphasize the electronic sectors movement in the market.
3. Create understanding about the relationship of the consumer-producer.
4. Procedures of electronic sector.
5. Consumer’s behavior regarding electronics.

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2.1 Theories:
Appraising the Kumar has defined literature review, as ‘review literatures is a
long and continuous process. Starting before a specific problem and carry on
until the report is finished’.
Executing a literature review involves four steps. They are as follows
1. Examine for at hand literature in relation to your study;
2. Next, reassess the literature selected
3. Create an exploratory framework for the chosen literature;
4. Finally, develop a conceptual structure.

2.1.1 Constantly growing importance of electronics


The electronics has expanded its market growth at a rapid speed. It has turned
out as a great need for the consumers to make their life at ease. Due to
technological progression the electronics have played a signified and dignified
role in the major changes of consumer behavior. In fast pace dynamic
environment marketing sector creates more opportunities that organizations
would like to grab in order to succeed in their future plans and approaches.
There is a capacity for the marketers to alter their current marketing channels
and to generate new strategies through uninterrupted process. According to

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Chan H. & ethel, 2001 Electronic-vending mainly concerns in deals of sales of
goods and services.

2.1.2 Definition of E-Marketing


According to Dave Chaffey www.wnim.co.uk, digital technologies that help in
channelizing products in online manner, such as emails, database, digital TV or
web are the portions of electronic marketing. It has helped the marketers in
availing the desired and fruitful results along with retaining its customers by
improving their customer’s knowledge about their profiles, visions and

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conducts. The individual needs of the consumers are satisfied through
communication and online services.

2.1.3 Digital Products


Out of so many advantages, the one most distinguish benefit of selling online
the digital products is that it is not as expensive as selling physical goods
online. Apart from slow pace at the start, it has gradually succeeded in
attracting more and more customers with due passage of time. Customers are
increasing their online purchase quantity in rapidly changing fast track world.
Online shopping has proved to be a great assistant in saving time and energy of
the customers.

2.1.4 Electronic transactions


In modern era, internet is classified as a new kind of specialization. Its
specialization is not limited to just a product line but it has helped the
marketers in specializing the types of seller and class of customers. To support
my point let us consider the example of Lastminute.com is internet site with a
specialization providing the customers an opportunity to buy gifts, travel
tickets and entertainment products which can even match to the last minute

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producer also who wants to sell it in quick succession. Above mentioned
example clearly narrates the idea that specialization is not only differentiated in
the products but also in the types of sellers and class of the potential last
moment customers. It also briefed us with a very significant point that this
would not have been possible without the invention of the internet.

2.2 Results of Various Empirical Researches


With the clear evidence since its emergence in the consumer electronics

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APPLE has made its market reputation by establishing itself as a brand and has
created a strong goodwill in the electronics market with a cut edge technology.
The plain reason for this brand reputability is their innovative and dynamic
approach in the market of software’s and hardware’s. The quality of APPLE
product speaks for itself. Careful analysis and a close study about the web-
based sales clearly indicate that the wide variety of conventional markets offer
less to some extent as compare to the online deals.
The physical approach towards product requires more effort whereas the online
services enable the customers to save their time and put fewer efforts. Another
gain of web technology is that it permits business to categorize the line of
products and customers to different sites which can even channelize in person
according to their sheer experience. This enables the organizations to create
precise, accurate and efficient shopping endeavors.
John Quelch, dean of the London Business School, states that combination of
both online and physical trade could work wonders for any market. On the
other hand, numerous others analyze a wider role for hybrid trade in terms of
building relationship on personal basis with the customers goes to the market
and analyze the trends before purchasing the product. It helps to organize a
setup to handle several orders at a remarkable lower cost which is another plus

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point. All of the above mentioned points help the organization in keeping a
high profile client along with the motive of satisfying the needs of the
customers.

2.2.1 The characteristics of Electronic media:


The distinguish characters of buying-selling through electronic means are
discussed below:
1. Electronic vending offers consumers an online index that gives an

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opportunity to customers to go through variety of products. It also enables the
customers for placing orders through self motivation.

2. Electronic media works like a search engine that comes over the limitation
of traditional modes of selling. This search engine does also play a significant
role in the shopping patterns of customers by saving their time and energy doe
to prompt methods.

3. The trait of custom-made brand promotions and marketing is key


exceptional feature of online trading.

4. It also permits customers for downloading the digital goods and application
instantly due to the ability of prompt online delivery to its customers.

2.2.2 Electronic transaction Mix: (Adopted from Emerald Reports)


E-Trading Mix defined
The sum of all the total goods and services that a company offers via e-mode to
online shoppers are the electronic transaction mix (Lazer and Kelly, 1961). To
generate more understanding regarding electronic transaction mix, we can say
that it is a tool and means blend by the e-retailers to provide the exceptional

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services to its valued customers. The job outline of a marketing individual was
explained as a “mixer of Ingredients” according to Culliton, 1948.

The marketers’ carryout numerous types of strategies and short term plans by
targeting the needs of customers and satisfying them while involve in the
process of marketing mix. Neil Borden, 1964 of Harvard Business School was
the person who coined the word “Marketing Mix”. “Four Ps- place, product,
price, and promotion” are the famous 4Ps of Marketing Mix of E. Jerome
McCarthy’s (1960). Not just relaying on the theory principle four Ps but in

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general it has played a significant role in the process of organization’s starting
from conceiving till its dispatchment in the market and simultaneously, the
decision making process has gain a wide spectrum of unusual and realistic
directions(Palmer,2004). The decision for APPLE to design their process of
decision making in a way to its customers is very vital for maintaining its
success as a market leader in the electronic products.

P1: Place- Convenience for the customer


Place plays a very important role in the marketing for any business because the
feasibility of products reaching to its consumers. This helps the business to
flourish in all possible directions. Place assist the business in deciding where
they would place their product in the market. This can be regarded as
“customer’s convenience”, therefore helps in creating the understanding about
the level of ease of the clients in purchasing of the product.
Despite the fact that online shopping is much easier but some people still
prefer the location for products.

P2: Product-Customer value and benefits

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“Product”, which is one more P of the 4ps should be well thought-out as a
purchaser worth and advantage instead of just being considered as a product
that a business has to advertise. It means the package of service a product
which a consumer demands from the seller.
One of the major setback on online shopping is that consumer can ditch the
online product if the information is not clear and complete on the website. It
can even puzzle the customer and the mindset can get boggle. Hence, the clear,
concrete and precise information about the online product is of a very high
importance for business. They must make sure that the complete description

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about the product is conveyed when they display their product. Conclusion is
that the electronic means should be use in a proper way by the e-business to
create the value of the product for its consumers.
P3: Price- cost to the customers
“Price” is one of the most essential things to be considered from the business
point of view as company has to decide that at what fair charge the product
should be available to the consumers. The product is a cost for the customers
so it has to offer the benefits in return to the customers. The price of a product
is the sum of all the cost incurred during the manufacturing process. For
instance, on all the merchandises there is a manufacturing cost plus the indirect
taxes on the consumption of the product. These all charges are included in the
price of the final product placed for the customers. The online shopping
reduces the prices due to less physical involvements as compare to the
shopping in a person.

P4: Promotion-Communication and customer service


Promotion is a key to success for the business. It is the fourth P which needs
to be carefully thought and planned by the organization because it guides the
business in an appropriate manner and designs a way to make their product

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more visible and grasping to the consumers. The better the product is
communicated to the customer; the chances are higher that the product will
attain its market share. Promotion helps in the creation of a value of a product
for the consumers in a deliberate manner. It is also linked with the feedback
from the consumers that whether the product is being accepted in the market or
not, in case if not progressing well than there is a need of modifying the
promotional strategies for the product. Promotion cannot be just a mere
advertisement of the brand but it is the communicating of a product in a fine
manner.

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When we carry out a study in depth and detail into our 4Ps, we can notice that
there is a similarity with the 7Ps of Kearney (2000) for considering outstanding
electronic shopping experiences of the customers. “Packaging” and “Physical
evidences” are added by Kearny to show the process of marketing mix as a
most substantial and logistic in its approach to satisfy the consumer behavior.

The logistic approach is also one of the most crucial consideration, for instance
Amazon.com is a website with structured approach by having the complete
support to customer care and services through logistic systems. In developed
countries like Uk, Amazon uses its logistics expertise to implement allotment
services for objective sellers like WHSmith (whsmith.co.uk) and Toys R Us
(toysrus.co.uk). One of the finest examples of telemarketing is Dell
(Dell.co.uk) who set the best example by indicating the point that computers
can be sold without having face to face contact in person.
2.2.3 Process of Internationalization
According to Burt 1994 and Kacker 1985, the international influences of
trading format are the result of innovation, creativity and market awareness.
Lamey 1996 states that “hug investments are required by a company for a

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global retailing with no guarantee in its returns. In recent times there has been
a huge gain in the process of internationalization.
2.2.4 Strategic Dimension
Salmon and Tordjman (1989) acknowledged that there are three basic
strategies. The prime focus of their paper was on the global approach to retail
internalization. The local seller can try to expand a business geographically.
Williams, 1991 states that importance of divergence in the firm benefit as a
part in the internationalization process. But (Vida and Firhurst, 1998) states
that external environment of the firm is also important along with the internal

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environment.

2.2.5 Consumer Behavior


According to (McGoldrick 2002), the proper understanding about the
consumer behavior in operating market is very important factor for the
business. As per Gist 1968, (p.85-86), the purchasing power of the buyer,
demographic features, social and psychological characteristics are factors that
compose consumer behavior. The retailers are encouraged and benefited by
some of the changes in consumer behavior but on the other hand may be
discouraging for some other sellers as stated in Advances in Consumer
Research; 1987 Vol.14 Issue 1, p439. Although increase in the individual
consumer’s income may have pleasing effect on that particular consumer but at
the sometime it is uneven distribution which leads to results that are conflicting
one due to the different combinations of consumer characteristics.

As Ohmae (1998) states on the basis of his observation that only for
overcoming the competition strategy are not important but it should be made to
serve the consumer’s need. Chenet and Johansen 1999, concept about the ‘self

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actualized customer’ is that not the one who just buy the products in huge
quantity but a one who built his self identity based on his uniqueness.
According to the observation by Meyers and Eagle, 1982; It is very clear that
consumers do not make a choice on the projection of the good different
substitute but choose on the basis of how distinguish is the characteristics of
the product from other available product line. Mittal B. 2005 explains his
perception about the consumer behavior that segmentation also includes the
understanding about the differences among e-consumers. E-market is new
market after the emergences of since there have been e-sellers and e-buyers in

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the market today.

2.2.6 Customer Satisfaction


Reichheld 1996 says that rational strategies results into the satisfaction. To
retain a customer, a company should be able to satisfy him or her. According
to Buttle 1997, satisfaction is not merely because of the retention or even the
removal of dissatisfaction but a prime effort of developing emotional
attachment with the brand. Therefore, satisfaction is linked with the internal
feeling of the consumers.
2.2.7 Innovation
One of the most elegant approaches of the consumers to make the attachment
of the consumer to a brand is a high-tech innovation. Distinctiveness is
between supporting and disorderly innovations according to
(Christensen,1997). The kind of division are served by the effects of the
innovation on customer’s benefit.

2.2.8 Brand Perspective


According to Kotler(1997;p443), a brand is not just only about the logo but a
term that will differentiate the product or the services from the competitor’s

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line of product of services. Brand equity and brand extension are the two
aspects of brand based competitive advantage. The word brand equity initiates
the customers’ view of the brand to the variety concept. The customers based
on the brand equity is defined by Keller, 1993 that “the intensity and effect of
market communication on the customer to keep it in sustaining positive image
for all.

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Chapter 3: Methodology

Introduction
In this section I have explained in detail the ways and means that have been
undertaken to carry out the research study. In this part, we are elaborating and
also supporting the course of action through logical reasons. Brief explanations
and theoretical definition to support the process as a whole are given before

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each method. I commence my research with initially designing research study.
Case study, the ways of gathering data collection is followed after the
designing research study. This will be at last followed by the critical analysis
and evaluation of collected data.
According to (Zikmund), the scientific and purposeful process of collecting,
classifying, recording and evaluating data for making decisions on business
matters is regarded as business research. The purpose of the research is to
search again and in more depth which has systematic investigation and detail
discussion on the subject because the information of research is not merely
gathered on the basis of researcher’s intuitions or data gathered on random
basis.
According to (Jill, Hussey 1997), the main purpose of study can be shortened
as
• To explore some active unique difficulty.
• To re-examine and increase our current knowledge.
• To offer an appropriate answer to a problem at hand.
• To investigate additional general concerns.
• To plan new course of actions.
• To describe a new experience.

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• To produce new knowledge.
3.1 Style of Research

According to Yin, there are numerous research approaches to choose from


when carrying out research, usually depending on the researcher that what he
wants to investigate. It is important for the researcher to locate an appropriate
way of investigating research which immensely suits and relates to the
objectives of the study. Case study, history, surveys, experiments and archival
analysis are five suitable conditions for research methods. Each research

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method has its own procedure of gathering and evaluating the empirical facts
having for various pros and corns.
The two basic types of advances are qualitative and the quantitative data
approach. Both types of methods are pragmatic research approaches but
qualitative researches cannot be expressed in numeric forms but quantitative
can be quantified in numeric form. Qualitative are determined on the basis of
quality where as quantitative are on the basis of quantity.

Purpose of Research
The scope of the research can be characterized into following three parts.
1. The use of the investigated study.
2. The objectives in accomplishments of the research;
3. Information type required.

The above stated three classifications are not wholly mutually exclusive
because from different angles the research can be classified, for instance one
angle may suggest from the application point of view while other can be on the
purpose basis.

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Types of
Research
From the
viewpoint

Types of
Application Objectives information
sought

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Pure Applied Descriptive Exploratory Correlation Explanatory Qualitative Quantitativ
Research Research Research Research Research research Research e Research

Types of Research

3.2 Research Design


3.2.1 Research Problem
The research problem is the most important ingredient in the applied research.
It is new in nature and requires a new mode of investigation to generate a way
of proper understanding. The correct identification of research problem is very
essential in applied researches. In this research the problem is that Apple is
unable to increase its profitability share of its new applepad in the market. We
have to determine that to what extent the electronic trading affects the
consumer behaviour and how much the market share and the quality of E-
service to customers and their satisfaction are affected due to environmental
factors. The quandary in this investigation is that what are the main issues that
are affecting the Apple profit growth in the United Kingdom?

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3.2.2 Hypothesis
Before starting the research, various methods are determined and some
considerations are undertaken by the researcher. On the basis of these points he
starts to gather the data. These points are known as the assumptions before
research conduction. It is generally known as the hypothesis. The hypothesis
serves as a ground for the conduction of the research. The hypothesis in this
research are mentioned below,

There is a strong relationship between the quality of electronic service and

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overall customer satisfaction.
The profitability of the Applepad has decline due to the severe competition
in the market.
The online promotions of the products of apple are not adequate to attract
the potential buyers.
These hypotheses will help me in conducting my research to investigate the
problem within the parameters of the topic. The technology is a significant
contributor in the market today as it is playing an important role in creating a
strong relationship between the quality of online services and overall
satisfaction of the consumers in the United Kingdom market. The second
hypothesis is that competition has also served an important factor in the online
business and promotion strategies. It is also being considered that apple is not
able to increase its market share in United Kingdom due to the improper means
of online promotion strategies.

Based on hypothesises of this research I would conduct a survey to verify


whether the hypothesis is void or not. For the survey, I would create a
questionnaire which will contain close ended questions from the consumers for
asking their opinions about the online promotion strategies of the apple and I

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would also take the face-to-face interview from the dealers of the Apple
available in London. The data will be collected from various sources such as
articles, journals, case studies, books, questionnaires and interviews. After
induction of the data, I would distinguish the relevant and irrelevant from the
pool of gathered data. This process is to create a transparency by taking the
vital data in the close consideration and remove the unwanted material from
the gathered data.

The test of the survey carried out from the customers by the open ended as well

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close ended questionnaire that is available at the end of this research work in
the appendix.

3.2.3 Research Questions


I will commence this investigate with the following questions and try to
discover out the appropriate answers to these queries through study findings
and analysis.
Q1. Is Electronic promotion of the apple brand in the United Kingdom is an
adequate one?
Q2. What are the main stream competencies of the apple that affect the
consumer’s behaviour?
Q3. Does there exist a strong relationship between the Electronic transaction
and the overall customer satisfaction?

3.2.4 Method of Analysis


To conduct my research I would use the combination of various approaches. I
would use the case study approach in depth to find out the consumer behaviour
and patterns of the companies’ approach to satisfy the needs of the consumers.
I would investigate in detail some of the imperative companies in the world of

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Electronics along with the selected company APPLE and investigating the
strategies implemented by those companies in order to allocation channels and
create an understanding about the effects of these strategies on the market
along with their success in increasing their market share in terms of
profitability. I would also conduct interviews from the customers on the basis
of random sampling to have a clear idea about the online services and the
satisfaction of customer’s need. I would also interview the retailers who deal in
the selected brand and investigate their ideas about the imperfection in the
market of this brand. Apart from interviews, case studies, observation and

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surveys I used the tools to reach the findings and sorting of the data. For this I
have use the SWOT analysis and CHI TEST.
In chapter 4.1 I will be explaining in detail “the critical appraisal of literature”.
In chapter 4.2 I will be elaborating in detail “the Graphical representation of
Data”.
And in chapter 4.3 I will be elucidating the in detail “the study through
Statistical analysis and theoretical Models”.

As mention above in research methodology, I would carry out a research with


the case study. It is one of the most widely used methods in the researches and
generally regarded as the traditional method in the research investigation. The
objective of the case study method is to gather information from various past
situations, where the researcher may have faced similar sort of problem. It is
the source that provides a better understanding about the familiar situation.
Note that situation is not exactly same but does match to some extent with the
current situation and case study helps as guiding steps in familiar conditions.
For the researcher it serves as a reference to conduct a current research.

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Steps in Case Study Approach
Accroding to Cohenn and Manion, 1995, to consider a case study approach for
the research study, the steps in this particular method are as following:
• Collection of Suitable Case
• Preliminary Research
• Facts stage
• Investigation
• Structuring of the Report

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After careful consideration and interpretation of various case study relating to
the case studies about the new trends in the online marketing, consumer
behaviour and core competencies to compete in the market, I came to know
that the movements and methods of the electronic promotion is a key demand
of present time, consumer behaviour is subject to the change in various factors
and how companies retain market share in the fast changing world.
There are some limitations to case study method such as the complex nature of
the case or the organizational setting does make it difficult to analyse the cases
in a required manner. The perception of the researcher is also one of the severe
limitation of case study approach that may hinder to investigate the actually
facts because most of the time it is not important that what researcher has
perceived must be the real case or the solution. It is very much possible that the
biasness of the researcher is involved in the case study method which will not
lead to the proper findings.

Interviews
Due to the limitations of the Case study approach, interviews can be
considered in the research study. It is cost effective and significant in
collecting data material but the validity of the data is again a subject matter

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because it is based on the observation, personal values, choices and
commitment towards particular brand. But these surveys help in finding the
general opinion and choices of the consumers. It represents the choice and
views of the majority.
Interviews are categorised on the basis of the extent of flexibility:

Interviews

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Structured Unstructured Semi Structured
Interviews Interviews Interviews

For my research, I have opted for both, structured and unstructured interviews,
this will help me in finding the responses of the respondents and categorizing it
in a fine manner.

Questionnaires
The best method in surveys is the questionnaires as it the less expensive and
offer great generalization, though the validity of the responses are again a
subject matter for a debate as most of the respondents are not willing to share
their actual feelings sometime or due to their other commitment they tick the
answers on random basis. I would use the close-ended questionnaires as the

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basic tool to carry out my primary research. (The sample of questionnaire is
available in the appendix).

Secondary Data Collection


Secondary data is one that has previously been collected for some purpose but
other than the current one which is under consideration. It is the already
collected data by the other researchers and serves as a base for the research
study.

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The key foundations of secondary facts and figure collections that I have
considered in this investigation are as following:
• Newman & Cullen (2002). Retailing: Environment & Operations: Thomas
• Levy & Wietz (1996). Essential of retailing : Irwin
• Alexander (1997) International retailing: Blackwell
• Fernie, John and Sparks, Leigh, (1998), Logistics and Retail Management,
CRC Journals

Journals of business research along with this, Libraries, government’s sources


(Current Business) will be used.
• International Journal of retail & distribution management
• International Journal of purchasing and materials management
• The European retail digest
• Harvard Business Reviews

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Chapter 4: Analysis and Findings

4.1 Critical Appraisal of Literature:

The sole objective of this chapter is to crucially re-examine the literature that
evidently explains the approval and relevance of internet technologies, by the
players in the market, for the support and sale of commodities.

In my study electronic commerce (e-commerce) is critically evaluated in the


outline of the relationship between the potential customers and the

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organizations and the implications for firm’s accountability. The author
strongly argues that offering the utmost consumer brings worth by e-commerce
can be seen as the actually input maker to the consumers because customers
have accepted the shopping through the Internet medium. Shopper approval is
of important value when determining what is offered by the e commerce to the
customers. (1) The client need, (2) customer value and (3) the cost of the
customer are the three main dimensions that play an important part in leading
customer satisfaction.

The Literature provides an essential insight for carrying out the investigation as
it defines the professional views of the writers and the previous means and
modes in the familiar situation. It describes the slight details about all aspects
that are probable and provide a hypothetical structure to construct a strong
foundation on. It provides and serves as a platform to lay a strong and huge
structure on it.

26
In the modern establishments e-business growth is not unnoticed because a
single click makes consumer reach to the product. It is also correct that the
brand equity is given to certain extent but with no guarantee that the deal will
be a success that is made by the customer.

The patterns of promotion have changed with the development. The producers
are at the advantage with the direct mode of selling through electronic media to
their customers and customers are also satisfied as it is advantageous to both
parties because the cost reduction towards the potential customers of the

26
company and at the same time profit for the producers also increases. It is
obviously true that the traditional ways has changed into modern sphere.
Electronic has added its role and signifcane to the business.

Jerome McCarthy 4Ps is precisely the significant elements of the marketing


mix though Lauterbourn has criticized it but McCarthy’s marketing mix hold
vital place for the producers when it comes to decision making. Mostly the
decisions and actions are executed on the basis of marketing mix because it
serves as a ground for making a logical and realistic decision and E retailers
also have alike needs to go along with their action plan that are more flexible
and feasible leading to success and profits.
The Salmon and Tordjan approaches the basic strategies in market identify the
rationality of human while making choices in selection process or decision
making. In my research investigation, I reached to a finding that the majority
of the consumer make choices the stand point of their rationality. The approach
of the consumer is to satisfy their logics of selection of a brand or a product.
The satisfaction comes only when the right product is being selected by the
consumer.

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4.2 Graphical Appraisal of Data
According to the Verdict Report, 2010, UK online market is expanding and
progressing with the rapid speed. Online shopping has so far successfully
attained the assurance of customers because one out of four customers is
opting now to buy online products which indicates that the market share of
online consumers are gradually increasing at a steady rate and the online
industry is developing.

Pie Chart Representation of increase on electronic transaction in United


Kingdom

26
Online Retail

2008
16.6% 15.1% 2009
% 2010

15.8%

This above Pie Chart shows the improvement in e retailing in the United
Kingdom in the last three years. In 2008, the percentage of E retailing was
15.1%, in 2009 it increased to 15.8 and in 2010; it has paced to 16.4%

28
5.2.2 Graphical Representation of Questionnaire:

26
This is the graph representing the sample set of 15 consumers responding to
the first question of the questionnaires and on the basis of respondents answer
the bar charts is designed.
Consumers respondent to the first question that which of the following attracts
them to do online shopping and the response was 6 out of 15 opt for discount,
4 answered price variation, 2 answered product from retailers and 3 responded
offers from the retailers.

29
26
In the second question that how often the shoppers do online shopping. The
feedback from the consumers were 2 out of 15 said daily, 8 marked weekly, 1
answered monthly and 2 each marked frequently and fortnightly.

Consumers responded to third question by 3 said new product development, 6


marked strong brand loyalty, h opt for strong product life and only 1 responded
strong marketing channel.

30
26
Customer’s response to a question what attracts then was in this order that 3
each answered innovation and compatibility, 4 said features, whereas 5 marked
quality.

for this question the responses from consumers were 4 said security is the
cause which stops them from online shopping, 3 responded frauds, 6 answered
Confusing presentation of Products and services and 2 marked Check-out time.

31
26
This is a bar diagram to represent the number of responses in order to find the
degree of satisfaction regarding the online promotion of the Apple brands. Out
of 15, only 1 was disappointed with the promotion schemes of Apple, 2 were
not satisfied, 3 were less satisfied, 4 were satisfied and 5 answered very
satisfied.

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4.3 Study through Statistical Analysis and Theoretical model
4.3.1 Chi-Test
Apple Electronic Services
Rating
Responses 1 2 3 4 Total
very Satisfied 0 2 1 1 4
Satisfied 2 3 0 1 6
Less Satisfied 1 1 1 0 3
Not Satisfied 0 0 1 1 2
3 6 3 3 15

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expected Factor
0.8
0.81 1.62 0.81 1 0.00667
1.2 2.4 1.2 1.2 0.004
0.6 1.2 0.6 0.6 0.02
0.3
0.39 0.78 0.39 9 0.033333

PVALUE=0.021525

As we know that if the P VALUE <0.05 then the null hypothesis can be rejected
and in this test our value is 0.02152 so therefore there is no relationship between the
different variables

Consumer’s Overall Satisfaction


Rating
Responses 1 2 3 4 5 Total
Very Satisfied 2 2 1 0 0 5

33
Satisfied 0 2 1 1 0 4
Less Satisfied 0 1 1 0 0 2
Not Satisfied 0 0 1 1 0 2
Disappointed 0 0 0 1 1 2
2 5 4 3 1 15

Expected Factor
0.3
0.66 1.65 1.32 0.99 3 0.03333
0.2
0.54 1.35 1.08 0.81 7 0.16666

26
0.1
0.26 0.65 0.52 0.39 3 0.13333
0.1
0.26 0.65 0.52 0.39 3 0.13333
0.1
0.26 0.65 0.52 0.39 3 0.13333

PVALUE=0.03872
As we know that if the P VALUE <0.05 then the null hypothesis cannot rejected and in
this test our value is 0.03872 so therefore there is no relationship between the different
variables

5.3.2 SWOT Analysis of Apple


SWOT Analysis of Apple

34
Internal Strength Internal Weaknesses

Brand reputation High prices

Compatibility Long procedure and

Innovations complex
structural
Skilled Staff
hierarchy

26
External Opportunities External Threats

Diversification in to new Competitor’s prices


Business Consumer’s changing
Increase more its online behavior
sales in market.

STRENGTHS
• Apple’s biggest strength is its brand reputation. It stands in a market as an
icon and symbol of status for consumers all over the globe.
• Their second strength is the continuous innovation in the product line. Apple
is known for its trend setting abilities. It has always introduced different
fusions of technologies.
• It has the skilled workforce which has improved its brand image. All the
skillful and experts are working under the roof to satisfy the consumer’s need.
WEAKNESSES
• There is a possibility of consumers switching from apple brand due to its high
prices. Thought it has the best technology but the prices of the products are

35
weakness for it as the market share is not increasing as compare to competitors
like Dell, HP etc.
• The complex internal procedure and the long hierarchy to plan the decisions
are the weakness for the company. It has increased the cost of manufacturing
also therefore their products are expensive as compare to its competitor’s
prices.
OPPORTUNITIES
• In future apple has a good opportunity to expand its business line by
introducing other electronic items. This way they can diversify their business

26
scale and increase its market share also. Sainsbury has more opportunity to
exceed its online sales as its online sales margin is higher leading to high
profits. This will increase investment opportunities.
THREATS
• One of the major threat for Apple is its own prices which gives its
competitors an edge to cut their profitability margin.
• important is to satisfy the consumer if to stay in the market so the changing
behavior of the consumers is just like indicator which indicate that in future the
profit can decline further if consumer’s preferences changes due to several
reasons like income factor or substitution factors etc.

Chapter 6: Discussions
6.1 Interpretation of Results

36
Research Q1. There is a strong relationship between the quality of
electronic service and overall customer satisfaction.
After careful examination of assumed hypothesis from various angles by the
help of statistical tools, questionnaire, and interviews with the different bunch
of people now we can answer our first question that to certain extent electronic
services serves as an important factor when it comes to the satisfaction of the
customers but the overall satisfaction of the consumer is not only link with the
electronic services. The prices are also important factor to attain the overall
customer satisfaction.

26
Research Q2. The profitability of the Applepad has decline due to the
severe competition in the market.
To this question, we can use the briefings from SWOT that yes due to the
severe competition in the market applepad has been affected in terms of the
profitability. With the emergence of too many players in the market who uses
the price strategies to take the share in the market, apple has to face in UK the
decline because its prices are high and people feel that their competitors are
giving a bit cheaper as compare to them.
Research Q3. The online promotions of the products of apple are not
adequate to attract the potential buyers.
After the analysis of the questionnaire it would be right to say that partially the
apple products online promotions are not adequate in the UK market but apple
has been a status symbol for people so it has also attracted many people
through this limited promotion.
We have conducted the chi-test to establish the relation between these two
different variable but the results finding are totally different than what was
assumed in the beginning of the research. There is a relationship between
quality of electronic transactions and the overall customer satisfaction because
customers are only satisfied when they have bunch of benefits in an easy way.

37
They are only attracted to those items which has either a good quality or a low
price etc. There satisfaction can not be because of the electronic services
merely.

26

Chapter 7: Conclusion
7.1 Evaluation of Hypothesis

38
Apple’s services result is 0.21525, which means that P value is less than the
hypothetical value of 0.05 and there for the result shows that hypothesis is
correct one. The chi test secures the result of the overall satisfaction of the
customers as 0.03872 and it is also less than the required hypothetical value.
The bar diagrams about the online promotion services of the respected
organization and the consumer behaviour also suggest that there are different
factors responsible for the customer satisfaction.
According to the SWOT analysis there are some weaknesses and threats from
consumer’s varying behaviour but it is no clear that customer satisfaction is not

26
based only on the online deals.
It would not be unfair to say that apple’s new pad has been decline in terms of
profitability just due to the price factor, it is not because of the promotion
strategies but there is a strong link of the online promotion to create the image
of brand in order to maintain customer’s loyalty towards the company.
There can be other factors that may be responsible for the customer satisfaction
such as price strategies and offers made by the sellers, the quality of the
products and services etc. These variables may play vital role in the customer’s
satisfaction but quality of online promotion is not the only vital and crucial
factor for the customer satisfaction.

7.2 Limitation of the Research:


The time constrain is the major limitation of this research because the
consumer behavior is the most effective one when read in depth. The research
could have gone deeper than it has been so far but due to limited time not
much of the people could have been interviewed.
The size of sample was very small as compare to the market. If the sample size
was increased than there would have been a possibility of getting more
generalized results. The respondent selected were only on the basis of random

39
selection method and on the basis of convenience so there is a possibility that
the true respondent might have been left out who could have given more
genuine views about the issues. The present results cannot be regarded as
comprehensive because it was only limited to Apple organization. The selected
respondents were a small part of the overall but if more respondent were
included and few more similar sort of industries were included in the research,
the results would have been more generalized as the research is only
conducted. Limitations
Moreover, the questionnaires are filled to generate the data but it is not been

26
confirmed that the responses are true in nature because the possibility is alive
that our respondents might have answered few questions differently than what
they really felt. Their phase of mood is unknown so we do not know whether
they answered correct or incorrect.

7.3 Recommendation for Further Work


The limitations I have mentioned above must be overcome by the in the future
research pieces. In the future researches, the researcher must conduct more
detailed interviews with the top management and should also conduct the
interviews of the employees and people associated with the company and the
online channels to promote the brands. The company should also consider to
improve their pricing strategies because it is one of the lacking area where
APPLE has to improve. Their promotion online are not very active one. Most
of their focus is on the physical promotion which has to be changed in order to
remain in the hunt. The consumer satisfaction can be attained through
introducing the more friendly-user devices that can be easily portable and
installable on other system. In the future, researcher must also consider
conducting the researches in the other parts of the world to find the relationship
between the quality of Electronic transaction and the overall satisfaction.

40
It has to improve the online services by introducing new ways and methods of
reminding about its new products so that their customer’s satisfaction and
loyalty remains towards it.
The apple company should also conduct the innovative workshops in order to
keep its employees more energetic about sharing their ideas along with the
expansion of the new technologies and help with sessions in order to meet the
challenges in the competitive environment. It should also groom its workforce
to understand the needs of the customers and how to satisfy the online
consumers about their purchases.

26

41
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Techniques and Technologies to Win the Customers You Want and
Keep Them Forever”. Toronto: Wiley.

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11, pp. 550-553

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44
QUESTIONAIRE

26
Age: __________________ Education:
__________________
Occupation: __________________ Gender:
__________________
Income: __________________

Q1. Which of the following attracts when you shop online?


Discount
Price variation
Products
Offers
Q2. How often do you shop online?
Daily
Weekly
Fortnightly
Frequently
Monthly

Q3. What are the following attracts you to shop online?

45
New product development
Strong brand Loyalty
Strong products life
Strong marketing channel

Q4. What are the core competencies of your company?


Compactability
Quality
Feature

26
Innovation
Q5. Which of the following cause you not to shop online?
Security
Frauds
Confusing Presentation of Products and Services
Check-out Time
Q6. Are you satisfied with the level of Electronic promotion of APPLE?
Very Satisfied
Satisfied
Less Satisfied
Not Satisfied
Disappointed
Q7. Do you often use same company’s brand?
Yes
No
Never noticed
Q8. What is your overall satisfaction about Apple products?
Very Satisfied
Satisfied

46
Less Satisfied
Not Satisfied
Disappointed

Thank you for your cooperation~

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