Custom «Decision of Consumer» Essay Paper Sample

In recent times, there has been a sudden increase in demand for Apple phones or ipads in Australia. This is because of their ability to perform many tasks as compared to other regular phones or pads by other companies. The ipads are found in many stores in Australia, and their unique features and display has increased its sales in less than a year after it was launched in the country. However, some few factors have also limited its maximum sales, because of the influences they have on the choice of phones by the customers.

The paper is supposed to analyze the situational factors affecting the sales of Apple ipads in Australia. Since its launch, the gadget has not received the expected result considering the functions it can do compared to other phones in the market. After analysis, the paper should also provide some solutions on how Apple can increase its sales of ipads despite the existing challenges.

Apple products have been enjoying a good market in Australia, and so has Samsung in its smart phones. However, in sales of tablets, Apple has had an advantage over Samsung due to the features incorporated in the ipad. The two companies have been competing for years to woo customers until lately when Samsung made the Galaxy tab that Apple thought was an imitation of their ipad. Apple knew the move would result in an unhealthy competition from Samsung that would affect its sales in the long run. Apple has a favorable market in Australia, and any move to counter their market was highly rejected. This was the case in the Samsung tab saga, where Apple sued the later for imitation, and took a court order to block the launch of the galaxy tab in Australia.  

The scope of the report tries to identify gaps in the promotion and marketing of the ipad. It is supposed to analyze and give solutions on ways to increase their customer base. A solution aimed to counter the market of the competitors is sought by use of various strategies. The Samsung tab is not the only competitor to Apples ipad in the Australian market, as there are also other existing phones and computers in the market. Despite the stiff competition, Apple aims at increasing its sales in Australia by application of favorable marketing techniques, to change consumers’ buying behaviors.

The methodology to be used to counter competition of other phones in the market, and gain new customers is Situational influence. It gives solutions on how to improve customer loyalty, and also on how to earn new customers.

There are several assumptions made in the research mainly involving the Apple ipad. It is assumed that apart from Samsung, there are other companies involved in making heterogeneous products. However, the only real competitor is Samsung, especially after the introduction of the Galaxy tab. It is also assumed that in Australia, the market for ipads and that of other competitors is almost the same. This enables suitable and strong decisions to be made to counter any competition that occurs. It is also assumed that the sales of ipads are only limited to Australia as the effects on other nations are not evaluated. The limitations are that for Galaxy tabs, the competition is not practical, because launch of the Galaxy tab was blocked by a court order. Hence, it had not yet had an effect on the Australian market as compared to the ipad. The apples sales reports are not also readily available for review and informed speculation has to be used in some of the figures and trends given.

The Apple’s ipad is a state of the art tablet that performs similar if not more tasks than a normal computer. It is termed as a human being’s necessity because of its features that perform most functions that people normally use many other devices to perform. Apple Company cites that their purpose for the ipads was exactly that, to act as a personal assistant to people. The tab is as thin as 0.34 inches, which is a major advantage in its portability, and ease of usage. The weight of the ipad is as less as 1.33 pounds, again an advantage in portability and comfort ability of carrying it around. The size and weight plays a major role in handling it, especially because it is mostly on the user’s hand, unlike other big phones where the user has to carry around a small bag to place the phone.

The size also allows natural performance of tasks like watching movies and accessing the internet straight from the comfort of one’s hands. The phone has some sophisticated components that generalize its operation to perform most tasks. Its internal memory comprises of a Dual-core A5 chip, which allows multitasking, fast loading of applications, and any feature one touches responds instantly. The ipad has up to nine times better graphics display as compared to the normal phones, and fluid technology is used to make images more realistic. The switching on and off of the ipad requires only a touch of the button. This is as a result of the speed, flash storage, and efficiency of its applications. It is also very easy to revive it from hibernation without much effort. Due to its thin structure, the ipad is able to store power for up to 10 hours, irrespective on task it is being used for.

Two cameras are installed on the ipad, having one on the front and another one placed at the back. From the normal view, the cameras appear tiny but are very effective and are specially designed to support live video calling. The cameras work together so that one is able to view the person they are talking to, and see things going on in the background. The ipad has a cover, specifically made for it. It is designed to cover the invention at the back and the front part too. A magnet is used to keep the two covers together, with one on the front cover and vice versa. It fits perfectly on the ipad, without interfering with its slim nature. It is built in a way that it goes to sleep when the ipad cover is placed and wakes up upon its removal. The cover also acts as a stand when surfing the internet or playing games on the ipad.

The ipad uses a sophisticated operating system called iOS, which is considered as the most complex operating system to be used on mobile phones anywhere in the world. The operating system is responsible for the touch sensitivity of the ipad. It incorporates many applications that have been tailored to meet daily communication, and entertainment need.  The iOS has a capability of using of 140,000 applications already developed and can be downloaded in the apps store. A recent application in ipads is the iCloud that stores music, documents, and photos, transferring them wirelessly to the user’s devices.  An example is if one takes a photo using ipad the iCloud application allows the owner to share it on the iPod touch, Mac, and iphone.

It also has an amazing LED display that is backlit for maximum performance. The ipad screen is 9.7 inches, with a high resolution, and the possibility of using both portrait and landscape views. It displays a brilliant view no matter the angle held, a technology known as in-plane switching. Ipad uses two technologies to access the internet including Wi-Fi and 3G, of which both are fast in connection. Each one of them is incorporated with a wireless technology named 802.11 n, which allows search for other Wi-Fi networks. This allows alterations of the two networks incase coverage for one of them fails. Incase there are documents saved in the iPod, it’s possible to print it wirelessly, without software installation or availability of cables.

Apple speakers can be used to play the music and video in the ipad. The music should be stored in the ipad to enable live streaming of the information. One only has to touch the Airplay icon and the gallery opens. By use of an Apple VGA, video mirroring is made possible, and the contents of the ipad can be displayed on a projector.

Apple Inc. is the company responsible for developing the ipad and was formally known as Apple Computer, Inc. The company is American mainly dealing in designing and marketing computer software, electronics, and personal computers. The company mainly deals with developing hardware products like the iPod, ipad, Macintosh computers, and the iphone. However, it is also involved in creation and selling of software like the iTunes browser, iLife, and the Mac OS operating system. It is also responsible for development of iOS, a mobile phone operating system. By July 2011, the company had over 357 shops, mainly retail, in ten countries. They also own an online store that makes it possible to sell hardware and software products over the internet. By September 2011, the company was named the largest company in the world with public shares; the study was done on the basis of market capitalization. It was also named the world’s largest company that deals with manufacture of technology.

The company was first established in 1976, in California and was incorporated in the stocks market in 1977. While starting, the company was named Apple Computer Inc., and was renamed in2007, as a result of its expansion and bigger customer base. The company has stood out as a result of its unique advertizing techniques, and a one of a kind design on its products. This has given the company a competitive edge in the world of electronics. It has also been able to maintain its customer loyalty, which has made them stand by it over the years. Its largest market is in the United States, although it also has a relatively large market in Australia too.  However, criticisms have been made towards the company for its treatment of laborers, and its business practices.

It was not until 2007 that the company changed its focus from manufacturing computers only to making of mobile devices. They first invented the iPod Touch and an App Store whose aim was to sell Apple applications to the users. During the 2009 recession, Apple still made numerous profits showing that they had excellent marketing strategies. The Apple’s iPad was first developed in 2010, which uses the touch technology, just like the iPhone. The iPhone applications available at the App Store could also work with the iPad.

 As a marketing strategy, Apple has been involved in forming groups of its customers in areas where they are densely populated.  The users have constant meetings, and organize trade shows where they get to learn of the new Apple inventions, and any questions they have are answered. This enhances customer loyalty, as they get a chance to interact with the people who manufactured their favorite product.

The paper is concerned with determining how customers make their choices during purchase, and how they can be influenced to purchase the ipad.  The information is needed by companies to assist in making market strategies. Various factors are known to influence a purchaser’s decision of choice including variables available socially and environmentally, psychological characteristics, the culture, and strategies used in promotions.  Situation influence involves researching on a group of people as compared to individuals. The study is done simultaneously in different countries and in different stores. Situation factors used in the research should be evaluated and the most suitable one chosen. For the situation influence to be successful, a literature review needs to be done to give way for formation of a hypothesis. Situational factors are distinct depending on a time and place, where the study is taking place, and the deductions made are not from already known information. The person carrying out the research has to be unanimous and so do the people responding to the questions. Situation factors include social surroundings, task definition, physical surroundings, and antecedent states.

Physical surroundings are the institutional and geographical locations that surround a stimulus; in this case, the stimulus is the ipad. The sounds in the location, the lighting, weather, aromas, and other products stocked with the stimuli are also included.

Social surrounding involves the other people present on location, their characteristics, interpersonal reactions, and their personal roles in determining what is to be purchased.

Temporal perspective is an explanation of the current situation, and that can be measurable in units. This can include the time of the day, or date of the month.  

Task definition refers to the description of the situation like the requirement to select an item and the intention used in the situation. It also describes the potential buyer’s effort to obtain information on a certain intended purchase.

Antecedent states are the moods individuals have when buying that include anxiety, hostility, illness, pleasantness and fatigue.

Researches have been done to determine the impact of situation impact in the customer’s decision on what to buy. Utilitarian shoppers are more likely to buy at random than hedonists who have to plan in advance for each purchase. Social surrounding may comprise of friends and family who are likely to influence the choices on makes while shopping. They may also determine the customer’s reaction on the prices of various commodities. It becomes easier for shoppers to make decision while accompanied by other people than when he/she is alone. In temporal perspective, it is also capable of affecting a customer’s buying habit for if there is time; there is a probability of more shopping as compared to if one is in a hurry. If more time is available, customers are likely to make unplanned purchases. If it’s a common customer, he/she is less likely to make an unplanned purchase on entering a mall. The way in which stocks are arranged in a mall also determines the amount, and brand to be purchased. The display, location of store, colors used on the store, and the height of the shelf are factors also likely to influence a purchase.

The emotions of a shopper while entering a mall, determines if a purchase is to be made. If shoppers came in happy, it was discovered that they are more likely to purchase more than unhappy shoppers.

How Situation Factors Affect Purchasing

In the case of the ipad, the situation factors apply in determining the level of sales it gets. The physical surrounding in most Apple shops is conducive for shopping to any shopper. The shops are mostly painted with cool colors that attract a customer from outside. While walking around the shop, the customer is welcomed by some cool, relaxing music. The music is likely to influence a person’s purchasing decisions, or make him/her spend more time in the mall scrutinizing the products. Since the ipad has special features for music, the music played in the mall may affect an individual’s decision to purchase.

Social surrounding is a main determinant on the amount and product to purchase. People who come into the mall in groups are more probable to leave with an item as compared to people who come alone. This is because they are likely to brainstorm and admire the products, leading to a purchase. In the case of ipads, most people come into the Apple shops not decided which phone to purchase. There are usually several phones on display intended for customers to check the functioning and features of a phone. In Apple shops situated in Australia, ipads are displayed neatly close to the shop’s entrance. This is likely to attract a group’s attention and since it has amazing feature, there is a probability that they will take the phone.

Temporal perspective also has an influence on how customer’s shopping behaviors vary. In Apple store, most ipads are bought at the end of the month or during festivities. Apple makes offers for the customers at those times resulting to more purchases. This is mostly because during end month, working customers have received their salaries and have a higher purchasing power than the other times. When festivities are due, people get gifts for friends and family, and Apple are conversant with that hence the introduction of offers at the time.

Antecedent states of a customer partly determine if a purchase will be made. In the case of ipads, Apple shops have very friendly attendants who assist a customer in choosing the right phones. In the course of conversation, a customer is likely to change his/her mood, and leave the shop in completely different spirits. This might change the customer’s decision on whether or not to purchase at the time. Attendants in Apple shops are trained for to talk to customers and persuade them to buy.  

Conclusion

In Australia, Apple and its products have gained an edge over its competitors since they have a better understanding of their customers. This has led to preference of ipads to other competitor phones. The management and attendants in the shop understand situation influence, a factor that has helped them in positively influencing a customer’s decision.

Executive Summary

Apple commodities have been experiencing a rise in demand in Australia over the past few years. The demand for the products is influenced by a number of factors, mainly being the situational influences. They determine how a customer reacts during purchase, and what causes them to exhibit the behavior. In Australia, situational factors affect the sales and marketing of Apple products, especially the ipad.

Limitations

The major limitation in use of situation influences is the measure of effectiveness of the measures taken. The influences are used to evaluate all customers together not considering that different customers have diverse tastes and preferences. The influences also matter geographically depending on the target crowd of the commodity. Incase a certain product has gained popularity in one nation, it does not do the same in all nations, because every nation has its practices and purchase culture. However, the situation influence shows all customers as the same not considering their purchasing culture, origin, or income. The influences are also not clear on how to use them to analyze a customer as they only tell how a customer acts when willing to make a purchase.