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Why people are buying more Samsung Smartphones than Apple? Price??? iPhone
4, at $199 for 16GB and $299 for 32GB Galaxy S the Samsung Vibrant for $199
Samsung's rise has been driven by a blend of elegant hardware designs
(Functional Value) popular Android services, (Social Value) memorable subbrands and (Emotional Value) extensive global distribution (Functional Value)
Source: BBC(October 28, 2011) Identifying Customer Perceived Value of Apple
Smartphone (iPhone) Even though Apples Smartphone market share felt in the
last quarter, many sources revealed that it is due to the delaying in launching
iPhone 5 (BBC, October 28, 2011). From the data above, it can be concluded that
iPhone has a high customer perceived value over the last three two years (2009 to
2010). Customer Perceived value of iPhone can be analysed using Seth, Newman
and Grosss consumption value model Sheth, Newman and Gross (1991): Model of
Consumption Values Source: Sheth et al (1991, p.160) FUNCTIONAL VALUE The
perceived utility acquired from an alternatives capacity for functional, utilitarian, or
physical performance. An alternative acquires functional value through the
possession of salient functional, utilitarian, or physical attributes (reliability,
durability, and price). Functional value is measured on a profile of choice
attributes. Source: Sheth et al (1991, p.160) Social Value The perceived utility
acquired from an alternatives association with one or more specific social groups.
An alternative acquires social value through association with positively or negatively
stereotyped demographic, socioeconomic, and cultural-ethnic groups. Social value
device itself provides novelty value (cool factor) and appeals to those seeking to
satisfy their curiosity iPhone derives epistemic value is through the availability of
downloadable applications and various media. Thousands of programs are available
for download, many of which are free. Access to websites like YouTube also provide
a constant stream of novelty. Finally, the integration of a standard web browser
enables users to find whatever information they seek. This helps satisfy curiosity
and cure confusion. Source: Bodker et al( n.d). Customer Perceived Value:
Smartphone (iPhone) the conditional preference for the iPhone was based on
convenience-related measures. Much of the iPhones value was conditional
depending upon the availability of a laptop computer with an internet connection
When time was limited, a computers long boot up time added conditional value to
the iPhone, which was ready for use. When a Wi-Fi or landline internet connection
was unavailable, the conditional value of the smart phone rose dramatically
because it was the only alternative None saw much value in typing email on the
iPhone unless a computer was unavailable, the message could be conveyed in a few
words, and it must be sent immediately Source: Bodker et al( n.d). Conclusion
Many of the utilitarian attributes that resonate most strongly with users gain much
of their value from the other consumption values: social, emotional, epistemic, and
conditiona