IPhone vs Samsung Consumer Research Paper
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- I. Introduction and Purpose
- II. Literature Review: Social Status
- Brand Loyalty
- Social influence
- Consumer Preferences
- Perceived Product Benefits
- Why do people choose Apple
- Brand Competition
- III. Data Collection Method Description
- IV. Data Analysis
- V. Findings and Conclusions
- VI. Appendix
| iPhone vs Samsung Consumer Research Paper
Katie Fitzgerald and Sophie Kieftenbeld Dr. Lascu FYS 100 Changing Consumer Culture 4 December 2014 Table of Contents I. Introduction and Purpose of the Study…………………………………………………………3 II. Literature Review……………………………………………………………………………...3 III. Data Collection Method Description…………………………………………………………7 IV. Data Analysis…………………………………………………………………………………8 V. Findings and Conclusions…………………………………………………………………….12 VI. Appendix……………………………………………………………………………………..14 VII. Works Cited…………………………………………………………………………………21 I. Introduction and Purpose: Individuals choose their technology based on what fulfills their needs. Some specification differences exist between Apple and Samsung products. Samsung products tend to have a higher pixel count making their screens appear clearer and the images sharper. The iPhone continues to update its camera technology. However, many believe it does not match up to Samsung’s. Samsung’s smartphones have always had at least double the camera resolution as Apple’s products. According to various sources, the technology of Samsung has been progressing rapidly. Apple, on the other hand, has made small tweaks to each model in an attempt to maximize profits without improving much from one product to another. There are many differences that divide the population between Samsung and Apple products. Each product comes with benefits which cause consumers to purchase those specific products. Both companies developed fingerprint technology for the privacy of its users. They also both established a voice command mechanism (Lendino). Samsung has the S Voice and Apple has Siri. Hypothesis: iPhone users feel a sense of superiority over other smartphone users. While Samsung phones are known to be more durable, many Apple users are brand loyal and want all of their products to be from the same, elite brand. These products are extremely similar, so this research aims to discover why some consumers choose a Samsung smartphone over an iPhone. II. Literature Review: Social Status One proposed reason as to why consumers choose iPhones over Samsung products is that the Apple brand holds a higher social status. This status symbol is used by consumers as a form of arrogance. Apple recognizes it is a high quality brand and uses arrogance in advertising (Brown 2012). According to Brown, “(…) corporate or brand arrogance is defined as behavior that communicates a company's or brand's exaggerated sense of superiority, which is often accomplished by disparaging others” (Brown 2012, Hareli & Weiner, 2000; Kowalski, Walker, Wilkinson, Queen, & Sharpe, 2003; Leary, Bednarski, Hammon, & Duncan, 1997). The Apple brand demonstrates this corporate arrogance, and by extension, so do its consumers. Although this strategy has worked for Apple, it can lead to failure (Brown 2012, Ma and Karri 2005). Apple products are a status symbol amongst consumers. If one has an iPhone, and someone else has a Samsung product, the consumer with the iPhone feels superior because it is seen as a more elite brand. Consumers tend to gravitate towards products, which increase their social status. By purchasing an Apple iPhone they are able to do this. Lifecycle There is a study done that states that the lifespan of a smartphone is about two years (Wilhelm 2011, Cooper & Christer, 2010; Guiltinan, 2009). This lifespans explains why the industry grows at such a rapid pace. Since the technological industry changes so often, what was new technology a year ago becomes obsolete fairly quickly. For this reason, companies like Apple and Samsung are forced to keep developing new products for the market. For example, the iPhone 5s was released about a year ago, and the iPhone 6 and 6 Plus were just released this September. Although consumers do not expect their phones to be with them for more than two years, studies show they still look for durability in their products (Wilhelm 2011). Due to the rapid output of new smartphones, consumers are given the option to change their device brands often. Given these choices, consumers have higher expectations of the smartphones’ capabilities. Brand Loyalty There is a large amount of brand loyalty when consumers choose a smartphone (Kimiloglu 2010). Now that the market has evolved, consumers tend to use their phones as a form of self-identification. After all, “Consumers do not view smartphones just as devices for calling and texting, instead as multi-use devices for gaming, socializing, and downloading applications which results in a radical shift in behaviour patterns” (Suki 2013). Smartphones are a way of life, not just an object. They are now an extension of oneself and are used to demonstrate status (Suki 2013, Wilhelm 2012, Belk, 1988; Schifferstein & Zwartkruis-Pelgrim, 2008). Since these devices are such an important possession to consumers, much care is placed in the selection of the smartphone. These smartphones are seen as a status symbol, brand selection is important to consumers (Suki 2013, Khasawneh and Hasouneh 2010). Social influence Many consumers will buy phones based on what their friends have (Suki 2013). Furthermore, since smartphones are increasingly becoming a means of social connection, people will want to have access to the same apps as their friends so they can connect on their phones all the time. This social connection that smartphones provide is an essential service to consumers. The desire for these connections causes consumers to follow purchasing trends of the people around them. If friends purchase a specific smartphones brand, the consumers is more likely to purchase the same product (Suki 2013). Consumer Preferences Like producers in any industry, companies in the smartphone industry are creating phones to suit consumers’ needs (Wilhelm 2011, Nieuwenhuis, 2008). Smartphones are adapting to fit what consumers are expected to want. For example, the screens on smartphones are increasing in size, supposedly to fit consumers’ desires and needs. Durability is something that consumers desire, especially young adult consumers (Wilhelm 2011). Most smartphone consumers also look for reliability in the phone features. They want a clear screen with reliable touch screen features (Wilhelm 2011, Slade, 2006). Smartphones that are able to fulfill the consumers’ demands are more likely to be purchased. Perceived Product Benefits Consumers are drawn to specific smartphones due to the various benefits. Discoveries were made that this decision was dependent on brand name, product price, social influence and product features (Brown 2012). The amount of exposure that consumers were given to a particular product increased the likelihood that they would purchase it (Brown 2012). The brand name needed to be emphasized in the commercial in order for consumers to recall it later. Therefore, products that are considered more popular and avertised by society are more likely to be purchased by consumers. Society’s view can also be influenced by other company’s portrayals of one another (Brown 2012, Johnson, Silverman, Shyamsunder, S wee, Rodopman, Cho, & Bauer, 2010). Why do people choose Apple? Many consumers gravitate towards Apple products due to the ease of use and the consistency within the brand. Initially Apple had difficulties selling the iPhone since only AT&T was able to provide the phone (Mickalowski 2008, Woyke 2007). Non AT&T customers were turned away the product. The iPhone was one of the first breakthrough products causing many consumers to be drawn to this new brand. However, many of Apple’s competitors have better software compatibilities (Mickalowski 2008, Olson and Laurent, 2007). As more cell phone providers picked up Apple’s iPhone, consumers became more drawn to the product. Brand Competition As the iPhone increased in popularity other smartphone companies came into the spotlight. Samsung has released several versions of the Galaxy, which is a competing product of the iPhone. Samsung created a phone equipped with sensory detection and motion sensing (Bohidar 2012). This new addition put Samsung ahead of Apple in technological advancements. To keep up with Apple’s Siri, Samsung developed S Voice, which enables the user to communicate with the device and ask it basic questions (Bohidar 2012). The performance and battery life outscored any of its close competitors (Bohidar 2012). The different features offered by the Samsung Galaxy, which are not included in an Apple iPhone, draw users to this product. As the iPhone can be seen as more mainstream, many consumers have been drawn to close competitors such as the Samsung Galaxy. III. Data Collection Method Description The debate over having a Samsung smartphone versus an iPhone is a widespread controversy. Throughout the course of this semester, we will research various sides of this great debate over smartphones. One of our objectives is to use quantitative research to collect primary data to define the typical user of each type of phone. We will observe a large group of about thirty people, making the number of Samsung and iPhone users as even as possible. One of the criteria we will observe is age. From our thirty-person sample, we will be able to determine how many people from different age ranges have each type of phone, and we will use this to see if there is a trend. For example, a possible trend could be that people who are older are more likely to have Samsungs, whereas a younger population is more likely to have iPhones. Other variables we will observe include socio-economic status, gender and ethnicity. We will then assess these different variables to examine purchasing trends among the different categories. Another purpose of this study is to use qualitative research to collect secondary data and use this to determine why people have a Samsung or an iPhone. In our qualitative research, we will conduct an informal interview with about five people. Our questions will be casual and conversational. For example, we will ask a Samsung user why he or she has that smartphone instead of an iPhone and vice versa. We will also ask what the subjects think the pros and cons of his or her phone versus the competition are. Another question we will ask is what kind of phones the subjects’ friends have, to determine how social relations influence which phone a person will use. One other question we will ask is what kind of computer they have. This will allow us to analyze the brand loyalty associated with smartphone selection. The last question we will ask is how important their phones are to them. This will allow us to determine how large a role smartphones have in peoples’ lives. After our conversations, we will transcribe what the subject said. When we are finished interviewing, we will look at all of the data and create a list of Samsung users and iPhone users in an attempt to develop a general consensus as to what factors influence the purchase of one of these smartphones. IV. Data Analysis In our consumer study, we used both quantitative and qualitative research in order to establish the true identity of both iPhone and Samsung consumers. In our qualitative study, our observations were varied. We found some data that was concurrent with our hypothesis, and some data that was not. We observed more people than we anticipated, but we found it necessary to survey a large group of subjects in order to fully analyze the consumer segment. We analyzed people within a large age range as seen in Graph 1 and Graph 2. There were mainly people over twenty years old observed, which could be because they are the ones buying phones for themselves. Most consumers younger than age twenty typically rely on their parents to purchase cell phones for them. Because of this, our data is probably slightly limited because many of the older consumers observed could be buying a smartphone for their children. Since older members of families tend to buy the phones for younger family members, there is probably brand loyalty within families. However, some younger children were observed, but their reasons for obtaining a specific smartphone most likely relies heavily on family and social influences. In our observations, it was apparent that both consumer segments were largely white, as seen in Graph 3 and Graph 4. However, this could be due to the fact that the population of the area where the observations were made is primarily Caucasian. Furthermore, our research did not suggest that ethnicity played a large role in purchasing patterns in smartphones among consumers. Next, we observed subjects that fell within a range of socio-economic statuses, as seen in Graph 5 and Graph 6. However, discretion needs to be used with the results. Judgments were based on appearances (i.e. clothing) and were then used to place the subjects in the according categories. We observed mainly middle middle and upper middle class. This can be due to the geographic region of the observations as well as the costs that are involved with purchasing a smartphone. Smartphones are expensive items, and therefore we did not expect to see mainly lower and lower middle class people. During our observations, we noticed more females than males, as seen in Graph 7 and Graph 8. This could be due to the time of our observations. Some of the observations took place in the morning during the week. This caused many more females to be in the stores than males. We determined that the time of the observations affected which gender was more present and purchasing the smartphones. In addition, we did not notice a trend between gender and which smartphone was purchased. Family and social influences have the largest impact on which smartphone to purchase. This is the reason why many families have the same brand of phone. We conducted four interviews. One subject currently has a Samsung Galaxy S5. He entered the Verizon Wireless store undecided on which smartphone to buy. However, a Verizon worker described the features of both iPhone and Samsung options. The Samsung Galaxy S5 was said to be more functional and practical. In addition, this subject has a PC, which confirms our hypothesis that consumers are more brand loyal. However, he did state that many of his friends have iPhones. The subject stated that Apple was revolutionary and created a new way of creating technology. However, over time Apple has developed a cult-like following and many PC products are better. Lastly, he stated his current phone was his first smartphones and it’s important but not vital to his life. The next interviewee also had a Samsung Galaxy. She is an older consumer who stated that the iPhone has too many unnecessary features for her lifestyle. Therefore, she did not want to pay more money just to have a phone with a recognizable brand, and not really use all of the extra features. This consumer has a PC computer. This behavior is consistent with our other Samsung interviewee and with our research. Furthermore, this consumer’s friends mainly have Samsung phones as well. This is consistent with the research and inconsistent with our other Samsung subject. However, this may be due more to age than anything else, as the literature we read implies that Samsung consumers are generally older than iPhone consumers. We are skeptical of this though because of our observations. The iPhone consumers seemed to be older than the Samsung consumers, but we recognize that our observations are coincidental. In contrast to our research, this consumer recognizes the strength of Apple as a brand. She believes this brand pioneers the technological market as a whole and appreciates the innovative attitude Apple projects. However, she admits that some of its products are too complicated for her. This subject’s views on the product reflected what we found in our research. She believes that her Samsung phone is dependable, functional, and easy to use. In terms of personal importance in her life, this consumer stated that her phone is very important to her life as it is how she communicates with her family. Our third subject is a teenager who is an iPhone user. She has an iPhone 5c. She loves her phone because she believes it to be less complicated than a Samsung, and likes all the games and apps she can download instantly. She likes to have uniformity amongst her technological products, and she has a MacBook Pro laptop. Most of her friends have iPhones, as is concurrent with our research. Furthermore, another aspect of this consumer that is consistent with our research is that she does not know much about Samsung phones as she is used to Apple products. This demonstrates brand loyalty to Apple. Furthermore, she sees her phone as vital to her life as it holds everything from bank information to pictures of friends and family. This is consistent with the research and the other iPhone user interviewed. The last subject interviewed has an iPhone 4s. Although he wishes he had a newer model, he is still loyal to his current phone. It is interesting that he wants a newer phone because as is seen in the research, Apple promotes its newest products as being much better than previous models, and creates a desire for consumers to switch to an iPhone or to upgrade their current model. This consumer likes his iPhone because it allows his phone to be uniform with the rest of his family. Furthermore, he claims his phone is fast, a good size, and is simple to navigate. This subject has a PC computer, which is not consistent with the research, but it could just be what he is used to. Most of his friends and colleagues have iPhones. This is probably because this consumer is a businessman and it is often seen as a high status symbol to have an iPhone. In terms of the role his phone plays in his life, this consumer admits he is addicted to using his iPhone as he is constantly taking business calls as well as answering emails and texting his friends and family. V. Findings and Conclusions The combination of our extensive research and our data collection allowed us to draw conclusions about iPhone and Samsung consumers. We discovered that iPhone users tend to be more brand loyal. Typically when a consumer purchases an iPhone they also have a MacBook. We learned that Apple products are more conducive to enticing brand loyalty because all of their products seem to relate and have the same format. This makes the brand seem like a package deal, meaning if a consumer buys one product from the brand, he or she must have exclusively Apple products to maximize the features of all the items. Furthermore, in our study of consumers we did not notice that a majority of the population had one type of phone. Our results came back pretty evenly spread. This could be due to skewed data. However, we believe that the reason behind this finding is that both phones are equally popular, and the consumption of one over the other is purely based on personal preference. Therefore, it is difficult to stratify an entire population as iPhone or Samsung users. Personal preference is one of the biggest factors in the choice of one’s smartphone. We found that if a consumer was used to one brand, he or she was less likely to switch, not necessarily because he or she was brand loyal, but because there are differences in how each smartphone operates. Once someone is used to a particular operating system, he or she is less likely to switch because he or she does not want to have to learn to use a new operating system as well as learn the new features of a new phone. Furthermore, people will always have different opinions on different brands, and it is difficult to change that. Therefore, it is inconclusive if people generally prefer iPhones or Samsungs. Another important factor affecting this choice in phone is how important one’s phone is to him or her and how often he or she uses it. If the phone is a symbol of status or is used to keep up with friends or colleagues, an iPhone is more typical because it is seen as a more luxury brand. Furthermore, if a consumer’s phone is seemingly intrinsic to one’s survival and identity, then that consumer would likely have an iPhone. This could be for a myriad of reasons. It could be that the phone is very visible so the consumer would want the iPhone brand to be associated with him or her. It could also be that people see iPhones as higher quality than Samsung phones. In addition, if a consumer does not rely on his or her phone for every detail in life, and uses it mainly as a form of communication, it is apparent from our research and data that such a consumer would possess a Samsung phone. Overall, iPhones seem to be viewed as more flashy and sophisticated, whereas Samsungs seem to be more reliable and functional. Another important factor impacting the consumers of smartphones is familial and social influences. We noticed particularly in our observational data that the influence of family preferences is probably strongest when consumers are receiving their first smartphones. This is because they are young and most likely are not paying for the phone themselves. Furthermore, many families attempt to make their phones uniform in order to make shopping and any sort of repairs a one-stop process. Moreover, social influences also play an important role in consumer preferences. If someone’s friends have one kind of phone, he or she will probably conform to his or her friend group and have the same phone. However, there is a balance between familial and social influences, and depending on the person, one may be stronger than the other. VI. Appendix 
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DST Script/Narrative S: Welcome to the Smartphone Smackdown! Today’s match will feature the heavyweight champs of the smartphone market. K: In this corner we have the mighty iPhone. It has always been a contender in this competition and has been known to set standards in this sport. Its height ranges from 4.87 inches to 6.22 inches. Its screens range from 4 inches to 5.5 inches. Its weight ranges from 3.95 ounces to 6.07 ounces. It can get pretty big. (Cheers)
S: AAAAAND In this corner we have the Samsung smartphone. its height ranges from 5.59 inches to 5.96 inches. The weight ranges from 5.11 ounces to 6.13 ounces. It’s more of an up and comer in this competition, but it’s still a fierce competitor for the iPhone. (Cheers)
K: These two have been in a bitter battle since smartphones became popular. Some say the iPhone is falling behind and is now trying to copy the Samsung’s style. Other fans defend the iPhone and say the Samsung will never set the standards in this competition. S: The iPhone has more loyal fans than the Samsung, and gets a lot of support from them. Fans of the iPhone tend to buy all of the affiliated merchandise, like MacBooks and iPads. However, some people admit to being iPhone fans simply because their friends are, and they want to fit in. K: Critics of the iPhone say that it does not try to improve much from match to match, for example there was not much of a difference between the iPhone 5 and the 5s. However, people are continually excited over new iPhone merchandise. S: Enough with all the background info, Let’s get on with the match! (Bells) K: Here comes the iPhone charging at the Samsung, the Samsung picks it up and drops it! the iPhone screen shatters! How will it ever function now?! S: Well, this tends happens in almost every match, so it must have learned how to deal with it! K: The iPhone does its signature move! It tries to connect to the cloud! The Samsung can’t handle it! S: Here comes the Samsung, it tries to retaliate with a voice command…. K: And here comes the iPhone, responding with Siri! S: The Samsung fires a complex unlocking pattern at the iPhone, how will it respond? K: But the iPhone doesn’t recognize the id, try again Samsung S:Oh no, looks like the iPhone is running on less than 10% of battery, things are looking grim K: Oh wait, energy saver mode was just activated. Its brightness is going down but its strength is going up. S: Well folks looks like that’s all they can handle for now, so far it’s a draw! We’ll see if that changes… Works Cited Bohidar, Mahananda. 2012. "Samsung Galaxy S III Review." Businessline, Jul 09. http://we4mf3mv5e.search.serialssolutions.com/docview/1321627416?accountid=14731. Brown, Haakon T. "So What If I Don't Have An IPhone? The Unintended Consequences Of Using Arrogance In Advertising." Journal of Applied Business Research 28, no. 4, 555-62. Jul/Aug 2012. Accessed November 9, 2014. http://we4mf3mv5e.search.serialssolutions.com/docview/1027234461?accountid=14731. Hareli, S.,&Weiner, B. (2000). Accounts for success as determinants of perceived arrogance and modesty. Motivation and Emotion, 24, 215-236. Kowalski, R., Walker, S., Wilkinson, R., Queen, A., & Sharpe, B. (2003). Lying, cheating, complaining, and other aversive interpersonal behaviors: A narrative examination of the darker side of relationships. Journal of Social and Personal Relationships, 20, 471-490. Johnson, R., Silverman, S., Shyamsunder, S., Swee, H., Rodopman, O. B., Cho, E. & Bauer, J. (2010). Acting superior but actually inferior?: Correlates and consequences of workplace arrogance. Human Performance, 23, 403- 427. Leary, M. R., Bednarski, R., Hammon, D., & Duncan, T. (1997). Blowhards, snobs, and narcissists: Interpersonal reactions to excessive egoism. In R. M. Kowalski (Ed.), Behaving badly: Aversive behaviors in interpersonal relationships (pp.1 1 1-131). New York: Plenum. Ma, H., & Karri, R. (2005). Leaders beware: Some sure ways to lose your competitive advantage. Organizational Dynamics, 34, 63-76. Kimiloglu, Hande, V Aslihan Nasir, and Süphan Nasir. "Discovering Behavioral Segments in the Mobile Phone Market." The Journal of Consumer Marketing 27, no. 5 (2010): 401-13. Accessed November 9, 2014. Lendino, J. (2013). Apple iPhone 5S vs. samsung galaxy S4: Spec showdown. PCmag.Com, http://we4mf3mv5e.search.serialssolutions.com/docview/1531985552?accountid=14731 Accessed 19 November 2014. Mickalowski, Kyle, Mark Mickelson, and Jaciel Keltgen. 2008. "Apple's iPhone Launch: A Case Study in Effective Marketing." The Business Review, Cambridge 9 (2): 283-288. http://we4mf3mv5e.search.serialssolutions.com/docview/197303365?accountid=14731. Olson, P. & Laurent, L. 2007, November 9. "iPhoncs Land in London." Forbes.com Woyke, E. 2007, November 30. "Bonjour, iPhone!" Forbes.com Suki, Norazah Mohd. 2013. "Students' Demand for Smartphones." Campus - Wide Information Systems 30 (4): 236-248. doi:http://dx.doi.org/10.1108/CWIS-03-2013-0013. http://we4mf3mv5e.search.serialssolutions.com/docview/1427390329?accountid=14731. Khasawneh, K. and Hasouneh, A.B.I. (2010), "The effect of familiar brand names on consumer behaviour: a Jordanian perspective", International Research Journal of Finance Economics, Vol. 43 No. 1, pp. 34-57. Wilhelm, Wendy, Alice Yankov, and Patrick Magee. "Mobile Phone Consumption Behavior and the Need for Sustainability Innovations." Journal of Strategic Innovation and Sustainability 7, no. 2 (2011): 20-40. Belk, R.W. (1988). Possessions and the extended self. Journal of Consumer Research, 15(Sept.),139-167. Cooper, T. & Christer, K.(2010). Marketing durability. In T. Cooper (Ed.), Longer lasting products (pp. 273-296). Surrey, England: Gower Publishing Limited Guiltinan, J. (2009). Creative destruction and destructive creations: environmental ethics and planned obsolescence. Journal of Business Ethics, 89, 19-28. Nieuwenhuis, P. (2008). From banger to classic - a model for sustainable car consumption? International Journal of Consumer Studies, 32, 648-655. Schifferstein, H. N. & Zwartkruis-Pelgrim, E. P. (2008). Consumer-product attachment: measurement and design implications. International Journal of Design, 2(3), 1-14. Slade, G. (2006). Made to break: technology and obsolescence in America. Boston: Harvard University Press. 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