Since Apple is a premium computer firm, they are less competitive with prices. They will only commence to decrease the prices after it launches a future generation product. They utilise skimming and premium pricing strategy. Apple utilised price skimming as it was initially sold at a high price when released at which the customer’s had to pay. The price was then lowered when the next generation IPhone was released (IPhone 6s/6s plus).
Few of the important Psychological Factors are: Self-Concept, Motivation, Perception, Knowledge and Belief and Attitudes. Psychological Factors The Internal influences that have effect on consumer behavior consist of an individual’s perception, learning, memory, motives, personality, emotions and attitudes. (Hawkins & Mothersbaugh, 2010, 274-275). The buying behavior of consumers is affected by various of psychological factors. The most important ones Motivation, Perception, Self-concept, Knowledge and Belief and Attitudes.
Such a positive emotion may directly affect the consumer’s purchase behaviour. Booth and Shepherd (1988) argued that cultural and economic factors, consumer’s personality, attitudes, values and emotions, affect consumers’ decision making process regarding food selection. Aaker (1991) reveals that the origin label is an important source of value added to European agri-business. Kotler (1994) identified that consumer buying behaviour is influenced by cultural, social, personal and psychological factors. Steenkamp (1996) identified that biological, psychological and socio - demographical consumer’s characteristics, marketing of the product, economic and cultural environment affect consumers’ purchasing decisions.
Apple is all about the customer experience, be it in their stores or else creating products that their customers will love, and isn’t too concerned with concentrating on those who don’t. As mentioned previously, Apple has a clear idea of who its target market is and will design marketing plans around ensuring its core competencies adhere to that. However, Apple’s decision to bring out the iPhone 5S and 5C and offer it at a much lower price than its other iPhones in order to tap in to developing markets showed that it wants to increase its market share in developing markets (notably Asia and Africa), as well as looking for a solution to arrest a fall in its gross margin by
REVIEW OF LITERATURE Factors Influencing Consumer Buying Behavior A consumer is someone who makes decisions on purchasing products at the store, and someone who may be influenced by any promotions and advertisements (Joseph, 2015). A consumer is the one who engage in buying activities several times per day. The purchase of any product is the only visible evidence of a more intricate procedure that a consumer goes through for every decision he or she makes. However, every purchase decision is different and requires different amount of time and effort. Consumer behavior is more than studying what consumers want to buy.
Marketing strategy is useful to attract buyers. To heighten the impact of your target market. According to Rajiv, M., 2007 the marketing mix helps you define the marketing elements for defining successful positioning market you offer. One of the best known model is the 4P’s of marketing, which helps you define your marketing options in terms of product, place, price and promotion. Use the model when you are planning of a new venture, or evaluating an existing offer, to optimize the impact with your target market.
It 's no more about the promotion of goods and service - the objective now is to provide an experience to the audience, to be specific, the "target group" of the brand. Because of all this, advertising has created a strong impact on our lives - not just in terms of lifestyle but also our psychology, behavior and aspirations. We see an ad where a child goes to a store and asks for 'namak ' and gives a lecture on purity to the shopkeeper on receiving some other brand of salt. Why do we see this? Because through advertising, every single person has evolved in terms of awareness of the brands, which earlier used to be an objective to achieve.
Various factors, be it cultural, social, personal or psychological influence the buying decision of individuals. Marketers need to understand the buying behavior of consumers for their products to do well. It is really important for marketers to understand what prompts a consumer to purchase a particular product and what stops him from buying. To cope up with these differences and to bridge this gap it becomes
Higher Price than its competitor – Smart phone competitor like Samsung and Xiaomi are stealing the market share via the lower level price smartphone, however, Apple don’t have the lower price smartphone. 5. Narrow product range – Apple has only 7-8 products in its portfolio compared to the various products that its competitor Microsoft and Google have. So if one of the products failed, it will have a big effect on company’s