Consumer Behavior Assignment

by Ankita S (Sec A MBA)

"Apple unveils a cheaper iPhone"

1. Explain the rationale behind Apple's move to launch a low-cost iPhone.

In the early iPhone years, when a new iPhone model was launched the previous flagship smartphone simply faded away, then Apple shook things up by leaving previous models in the pipeline as cheaper alternatives to the top-of-the-line device. Its possible that Apple is simply doing what it does, and trying to offer devices that it believes the market wants and needs without consideration for saving a few bucks, or enticing a younger audience or the other reason couldnt be apple to launch a new iPhone is to tackle the market and to give tough competition to all other cheaper smartphones Mainly to Samsung (galaxy).

2. How will this impact the customer's perceptions about the Apple iphone as a premium luxury device?
That could have a big impact on the types of users it has . It has some of the worlds most loyal customers, extraordinary assets with which to grow its franchise and a cash reserve that is effectively unlimited. They feel now apple has become a common for all the income level people. They may feel that the Luxury feeling of the Brand is lost. It may also have some positive Impacts like lower income class people and teenagers can also have the experience of using an iPhone.

3. Discuss the pros and cons of this move.

Pros
o o o Competition Attract youngsters and Lower income audience Diversification

Cons
o o This experiment could lead to great risk for apple. It might lose it high class users who may now take apple as all other smartphone brands.

4. "In a world with a rapidly growing number of wealthy shoppers, luxury brands struggle to find a balance between increasing their consumer base and maintaining the exclusivity which is associated with luxury goods." Comment.

In a world with a rapidly growing number of wealthy shoppers, luxury brands struggle to find a balance between increasing their consumer base and maintaining the exclusivity which is associated with luxury goods
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and Brahma, and the cosmetic producer Naturaranked among the Top 15 brands in Brand Contribution, the measure of how brand itself, rather than nancials or other factors, contributes to earnings.Russias telecom MTS declined. But following a major effort to refresh the brand, the nancial institution Sberbank increased in value 25 percent, which placed it among the Brand Top 20 fastest risers. While the Indian bank ICICI declined, the Indian telecom Airtal appeared in the Brand Top 100 ranking for the rst time. The rst African brand, MTN, a South African telecom, debuted in the ranking. Two Chilean brands appeared for the rst time in the Brand ranking of brands in the retail category. An operator of department stores and specialty outlets, Flabella is one of South Americas largest retailers. Sod iMac, a Flabella company, is a consumer home improvement and B2B construction materials retailer.