Assessment 2: Report

James Cook University Singapore

BX2081: Consumer Behaviour
Tutor: Valentine Ortega

Name: Tran Hoang Thao Linh

Student ID: 13743305
Table of Contents

INTRODUCTION .................................................................................................................................3

PURCHASE SITUATION .......................................................................................................................3

PRODUCT/ SERVICE DESCRIPTION ...............................................................................................................3

TARGET MARKET ...................................................................................................................................4

FACTORS INFLUENCING THE CONSUMER DECISION MAKING PROCESS ................................................6

TYPE OF CONSUMER DECISION MAKING........................................................................................................6

MOTIVATION IN CONSUMER DECISION MAKING .............................................................................................7
SOCIAL CLASS INFLUENCE TO CONSUMER DECISION MAKING ..............................................................................8

CUSTOMER JOURNEY MAP .................................................................................................................9

CONCLUSION .....................................................................................................................................9

RECOMMENDATION ........................................................................................................................ 10

REFERENCE ...................................................................................................................................... 11
Introduction

In the age of technology 4.0, the electronics industry has had a tremendous improvement.

Devices such as tables, laptops, desktop computers and especially smartphone have become an

important and indispensable element in most daily activities of people. Among many smartphone

brands on the market today, Iphone, which belongs to Apple Inc is currently occupying a huge

market share in developed and developing countries because of some its outstanding features and

the acquisition strategies of Apple Inc. In 2020, Apple released series of Iphone 12 divided into 3

segments, with outstanding features and luxurious designs along with different prices suitable for

students and working people.

The purpose of writing this proposal is to analyse the type of consumption situation, also the

description of series iphone 12. In addition, a customer journey diagram will be drawn to outline

the experience of customer to Apple also two theoretical concepts and models will be applied to

explain the influence of consumer behaviours to the Iphone and two creative recommendation

for the client used to developing the marketing strategy of Apple to infuence customer journey.

Purchase situation

Product/ Service description

The Iphone 12 is the newest innovation smartphone product of Apple Inc to date. This product

line is divided into 2 segments, iPhone 12 and iPhone 12 mini in the affordable segment priced

from $600, suitable for students, people with average incomes. Iphone 12 pro and Iphone 12 pro

max belong to the high-end product line serving people with high income, working

professionally and with expertise, priced from $1000. The unique selling proposition of Apple
products is using the IOS operating system, difference to the others smartphone using Android

operating system. The highlights of Iphone 12 is the “3-eye” cameras that can help to maximize

the optical zoom range up to 5x, improve the pixels of the pictures, also high capacity of memory

up to 512GB that can satisfied the

Figure 1: The outlook of iPhone 12 pro

Generally, the iPhone 12 series can replace the function of a laptop such as using Words,

Powerpoint, Photoshop, after be installed on Appstore which satisfied the approach-approach

motivation conflict of the customer. Moreover, the special feature of iphone 12 is intergrate

using 2 different applications at the same time, such as watching Youtube and surfing Facebook

simultaneously. This is the newest improvement on the smartphone market nowadays.

Especially, the iPhone 12 pro has advanced features such as 3D scanner Lidar camera, which

support 3-dimensional image reflection, the first phone to intergrate 5G network and use A14

Bionic Chip with faster information processing, low-light photos and better processing resolution

Target Market

The target market of iPhone 12 series is mainly marketed towards traditional iPhone users whose

want to upgrade their phone version. Besides, the potential customer of iPhone is mostly youths

and working professionals in the age of 18-35 who live in the city and are passionate about
following trends and improvements. The innovation from inside to outside of Iphone 12 pro have

attracted a large number of customers who passionate in technology and asethentic.

The iPhone 12 series is currently holidng the top price of the smartphone market, with prices

ranging from 600-1000. The price of iPhone 12 is more than 300$ difference with popular

segment phones such as Xiaomi, Oppo, Samsung in the middle price segment. By the strength of

creativity and distinctiveness. Thus, iPhone is not afraid of price competition but about product

models and features, the rivals of iPhone 12 and iPhone 12 pro are the luxurious segment of

Samsung as Samsung galaxy S20, Huawei Mate 40 pro.

The iPhone 12 pro is the latest version in the smartphone segment of Apple, although released

for nearly one year but the price of Iphone 12 is kept high to maintain the exclusivity of

ownership, also Apple invested a huge amount of money in mareting images of iPhone 12 pro in

prime locations of developed countries in the world such as the heart of The Times Square in the

US, Orchard Road in Singapore or Oxford Street in the UK. Since the iPhone 12 and iPhone 12

pro launched to the market, Apple reported 65,6$ billion in Iphone revenue and CEO Tim Cook

affirms that iPhone 12 pro and 12 pro Max were the best-selling iphone in 2020 and 2021

( Hartmans, 2021)

According to Darphan, the lastest version of Apple Iphone is usually in the introduction stage,

for instance the Iphone XS (Darphan, 2018).

 Figure 2: Billboard of Iphone 12 pro in New York city

Factors influencing the consumer decision making process

Type of consumer decision making

According to Laurent and Kapferer, before analyzing the consumer decision of the customer on

any product, it is important to define antecendents of involvement based on the pleasure value of

product, symbolic value, risk important and probability to determine the outcome on consumer

behavior differ ( Laurent & Kapferer, 1985). The customer involvement level is conceptualized

of the consumer thought to the brand of the products they consumed, its determind the product

involvement level rather than the product (Pascale & AI Lin Lim, 2003).

Applied to the case of iPhone 12 pro, smartphone of Apple occupies a high price in the high

segment of the market, but it brings a lot of benefits to users, not only in terms of utiity but also

in spirit. The iPhone 12 pro is the combination of the most modern conveniences of a

smartphone and laptop. Moreover, when the consumers use iPhone 12 pro, they can enhance

their status when in public, and in workplace. Iphone 12 pro is the product belongs to the luxury

segment of Apple and the company has built a reputation for its product through the marketing

strategies. The message conveyed by iPhone 12 pro are aimed at the influencers, professionals

and wealthy people, so the product can elevate the status to the owner. However, when using
iPhone 12 pro, the customers will have to be very careful because if the phone is damaged or the

screen is broken, the customers need a sum of money to repair. Thus, iPhone 12 pro is a product

line of high purchase involvement, high ris financial and high social involvement.

Motivation in consumer decision making

Motivation is defined as a way directly conveys positive energy in the subconscious mind and

behavior of consumers, with the aim of motivating consumers to perform behaviors to fulfill the

desired purpose in many different situations ( Herbert & John, 2012). For iPhone 12 pro, the

product line in the high-end segment in smartphones, for instance, when a customer owns a

Nokia phone moves up to iPhone 12 pro, the purpose of this consumer decision is to improve

their status life. Therefore, drive theory of motivation is applied to this product to target

customers who strive to improve their quality of life and social position.

Moreover, the value of Iphone 12 pro belongs to the acquired needs of consumer. In addition to

bringing the the basic value of a normal smartphones such as call, take photos, surfing

internet, … Its also satisfied the self-esteem of customers through its luxurious design and high

price. Satisfying customers passion for technology through combine all the lastest innovation

into the iPhone 12 pro, meeting the unique identity when many people want to own an iPhone 12

pro.

An important factor influencing to the consumer decision is that the iPhone 12 pro solves the

approach-approach confict in consumer decision. For customers who desire with a choice of

many attractive alternatives for a phone such as needing a phone capable of serving wor and a

phone suitable for entertainment purposes. The iPhone 12 pro with full integration such as
response words, powepoint, gmail application serving for work, iPhone 12 pro also have

facebook, youtube, with large memory capacity and fast data processing ability than others

smartphones, Iphone 12 pro and iphone 12 can be a product that satisfied customers needs.

Social class influence to consumer decision making

In the society, in addition to economic classification, social class distinction is also clearly shown

through occupation, education, income, the standard behavior and especially people appearance

( James, 1965). Nowadays, people and most commonly in Generation Y often love to live up to

the trend and buy valuable items or trending items to attract others attention and with the purpose

of improve their social class in the others mind through what people looks at their appearance. In

fact, in society the others will notice at the value of the product that the consumer used, to judge

on their social class. Products that repersent the owners appearance are usually real estate,

transportation, clothes and also mobilephone.

Thus, owning an iphone 12 pro also greatly sffects the improvement of the customer status in

society. Apple Inc is one of the leading companies, in the electronics industry in Silicon Valley,

Apple’s premises are also scattered in prime locations in developed countries. Therefore, a high-

end Apple product as iPhone 12 pro is definitely leading the trend and bringing value appearance

to users.

Futhermore, the millennials is a young generation who is very fond of using social networks and

especially loves the "selfie" trend, they like products with a global consumer experience.

Because of these factors, Apple manufacturers have always focused on improving the phone's

camera. Iphone 12 pro has 3 cameras on the back and 1 camera on the front, with the improved

wide-angle and pixel shooting of the phone, the improved brightness makes video calls on social
networks more clear, the The above improvement has turned the iPhone 12 pro into a miniature

camera and attracted a lot of attention from millennials. Because of the camera improvement

factor, the iPhone 12 pro has been sought by millennials even though the price is more expensive

than the others.

Figure 3: People queue up to buy iPhone 12

Customer Journey Map

PDF file attached below the report

Conclusion

The report has fully analysed about the purchase situation and the influence factor of customer’s

decision making of iPhone 12 pro, since the development of iPhone 12 pro in tehcnology and the

value, the needs of owning an iPhone 12 pro is increasing, espeacially for the millennials, leads

to the high involvement of iPhone 12 pro in purchase, financial risk and social risk. It can be

seen that the motivation is one of the importance factors leads the customer decided to buy the
products in luxury segment. Besides, to affirm the social class in the society, an expensive

smartphone of Apple, is a suitable product to improve the consumer status in the society. By the

analysis we can see that Apple categorized customers very carefully leads to the retain the value

of the products and improve the consumer value.

Recommendation

Based on the analyzed information about the iphone 12 pro, 2 creative recommendations will be

suggested to the marketing strategy to influence consumer decision making.

First, because the iPhone 12 pro is a high-end phone segment in the electronics market, the

selection of celebrity endorsements who are Apple customer loyalty shares their experiences

with Apple's iPhones so far online social media to attract a large number of followers. Because

Apple's target customer is millenniums, people who use social networks very often. In this way,

Apple can both improve the value of products also iphone 12 pro can be widely introduced and

increase potential customers.

The second recommendation is Apple should convey a short advertisement " Toward wealth"

with the content that adapt the new things will improve quality life. Published the advertisement

on Youtube advertise, social media site and on the billboard of all the Apple Stores to maximize

the appoarch of the consumers. Because the potential customers of Apple are mainly millennials,

the purpose of conveying this message is to change the minds of the X generation, baby boomers

help them change their minds, approach new things to increase target customers and potential

customers for Apple for the future products

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Laurent, Jean-NOËL Kapferer, 1985. SAGE Journals.

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Google. (n.d.). The Application of Social Class in Market Segmentation. Google Sch.

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https://www.superheuristics.com/product-life-cycle-iphone/.