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Executive Summary Introduction Perceptual process Elements Of Perception Process Of perception M Findings Conclusion References

Executive Summary
The era of industrial concerns flooding the market with products that dont specifically address consumer needs is over, customer is king . Companies are investing heavily in research and development to come up with ideal products that cater best to customer demand and apple is no other. With a market capitalization of over $500 billion($550/share) and a cash pile of $80 billion at its disposal (as of January 2012) the company has come a long way from once almost being bankrupt() to become the largest technology company in the world today , and paying a dividend for the first time sine 1995(thank to its huge cash pile) Apple has redefined the consumer space with its cutting edge technology all the way from the ipod to the iphone.Perception is a key driver in consumer behavior and companys today have started to form marketing strategys around them. The iphone with the apple brand name, cutting edge design and technology is the leading premium smartphone in the market. Even with its steep price tag it has created the perception of a must have product and thus has catapulted desire of having it , and giving consumerism a whole new meaning. Iphone with its appstore(worlds largest) give consumers access to a variety of apps from all fields, be it games, business etc. I phone has created a perception of a must have world class product that anytime can give its rivals a showdown that they cant take. The iPhone is now in its 5th generation and is still going strong because of the perception that if you have the cash you have got to have the iPhone. The telecom operators that provide iPhone bring out the fact through their ads which state the tag line if you dont have an iphone well you dont have an iphone(vodafone) Thus creating the aura of something that is not only superior but distinct in itself . Acorrding to survey conduct by us(Stratford apple store) on the apple Iphone found that quality and brand value offered by apple was for the majority of them the reason for buying it and thus we can say that the point trying to be made here is that apple has carved a niche segment for itself in the minds of the consumer(perception) that apple is still ahead of its rivals and is the benchmark for measuring any other smartphone.

Perceptual process
There are many stages where human being get some input and that is stored as information. Consumers use there sensory organs for perception while purchasing the product . The five organ of a human body which are (smell,taste,textures,sounds,sights) are called as sensory receptors .according to which mind receives information and interprets what one believes and accordingly response to make a perception of the person/product . In context of

the iPhone the consumers use sounds and sight by which they look at the iPhone and create there own perception . (Solomon et al. 2010) Apple has cleverly utilized perception to its fullest advantage as the looks/design of the iphone is trendy and contemporary which appeals to the sight , not only that but the applications and there graphics also appeal to the naked eye as they are based on the latest software. Sound quality and the ipod function in the iphone provide great listening comfort as sound is not distorted or looses its tempo , when you play music or even when you receive a call . perception created by the iphone bends in its favour.

Elements of Perception

Sensation- the immediate response/impression generated by the

sensory receptors as a result of influx of information received by the nervous system. The iPhone the sensory stimuli comes into work from the moment we enter a store, see its ambiance, gentle music playing as a backdrop, temperature inside the store etc. all create sensation as an end result of the sensory receptors being put to use right From the start. (Koppleman, 1992) In case of apple, Right from beginning when one enters the apple store the perception that one gets is of highly quality and feel of a premium product, this is due to the fact, that when we enter the apple store (there is good amount of lighting, educate staff that greets everyone on arrival and is friendly in nature, this intern generate sight and sound receptors to work and drive on the fact right from the beginning the apple experience is going to be great and the product is going to fantastic ,further the packaging of the apple iPhone is very compact , very unique easy to open and apple logo is easily visible , which attract Customer.

Absolute threshold- it is the lowest level at which one can detect a

stimuli.Absolute meaning complete and threshold meaning limit gives us the direct meaning in a sense that beyond this level the stimuli will cease to exist / become irrelevant. An absolute threshold can be seen in the simplest of example, when we are in a room that is completely silent, we will notice even the sound being made by a clock (tick tock) up to the threshold/point that the room remains completely silent, the buzzing sound of a mosquito is another example in this scenario. (dubious,2000)

Just noticeable difference- JND means the minimum change in a

stimuli that can be noticed / detected is called just noticeable difference. The definition got an enhanced meaning because of Ernst weber who said that the level of change must deepened on the original intensity of the

first stimuli, the greater the intensity, the greater must be the change, this phenomenon is known as webers law. (Coren,2004) The iPhone 4 initially came in black and later a white one was introduced, though the white one was similar in all the aspects of the black one, excluding its exterior color, it had just enough intensity to get notice (JND) the white one was a huge success especially with women who highly preferred it.It goes to show how little change can bring fresh life into an already popular product.

Subliminal perception- in this case the stimuli is being perceived

without the person being aware of it. Sometimes the person might not be aware to the fact that his/her stimuli are still perceiving, the stimuli is being perceived at a subconscious level. (Merikle m,2000) An example would be the background music being played when we enter the store, though we are looking at other products or talking to people inside the store, the music is being perceived subconsciously and as a result when we hear it again, we might recall the store.The iPhone with its distinct looks, size and the classic apple logo at the back created a visual distinction and as a result when somebody notices another person using the phone, without even using himself can derive to the fact that its an iPhone.

Process of perception
We live in a world were information is abundant, not only in terms of news, knowledge but also in terms of products. With new products being launched everyday and intense completion with rival companies leading to huge marketing campaigns, it becomes difficult for the consumer to focus on relevant information that he / she may require. Good products often get unnoticed if there marketing is not distinctive/effective because of the massive array of products that are on offer today.so companies need to evaluate and form marketing strategys in such ways that directly capture the attention, one way of doing such is through segment/target market.

Exposure- It simply means that a person will concentrate on the stimuli

that is in the range of there sensory receptors but further more it has been seen that sometimes a person will go out of there way to ignore or to

understand a certain message. Sometimes regular habits of ignoring commercials also lead to perception not being created so advertisements need to be innovative and fresh concept. The iPhone ads by telecom companys stating the fact that if you dont have an iPhone well you dont have a iPhone is catchy, small, hard to miss and as a result generated hype for the product.

Attention- marketers need to come up with effective ideas that are not
only interesting/new but also convey the message that the company is trying to communicate to its potential customers. A great example would be the super bowl ads in America, companies come out with best / cutting edge and trendy adverts as it is an event that gets most eye balls across America.

Interpretation- the meaning that we attach to our sensory stimuli,

interpretation may wary from person to person as each individual might have different understanding on an advertisement. Some people interpret the iPhone as a leader in smartphones and thus a must have in case of cutting edge technology, others interpret it as a status symbol as cheaper phones like Samsung galaxy are available with somewhat similar contents. (Schiffman and Kanuk 2007)

Findings
The iPhone is the market leader in the smart phone category for the last 5 years in a row. The phone is at its 5th generation (iphone2g,3g,3gs,4g,4s). A primary research done by our group at the Stratford apple store and on social networking site with a subject base of 25 people came to the understanding that maximum number of people went for the iPhone because of its quality and secondary because of the apple brand name. In comparison with its competitors Sony erricson experia, nokia lumia , Samsung galaxy note and blackberry 9900 we found that in terms of features and built quality apple was the numero uno. Though the iPhone comes with a seep price stag, its still the most desirable phone in the market. The question asked by our team whether iPhone is a necessity or a luxury? gave us the verdict from a majority of test subjects that it is indeed a necessity.

Conclusion
After an extensive primary survey, getting information from various other channels we derive upon the conclusion that the iPhone has been a trendsetter in its class. Not only is it the worlds leading smart phone but also it is backed by a company that has revolutionized the technology and design industry with its range of products. The iPhone is backed by the worlds largest online application store that give its customers a unique advantage. The IPhone is all network compatible with mail,

web browsing, and touch screen and the famous iPod function all put into one cutting edge design. Thought the 5th generation iPhone was launched in October 2011, the hype around the much-awaited 6th generation is huge. The current iPhones siri function has been appraised by all, it is a virtual assistant that listens to voice commands and then perform functions accordingly, such new innovations is what keeping the iPhone ahead of its competition and demand a price premium. In the end we can conclude by saying that the iPhone is no longer just a product of apple but a product that has its own identity and is a class apart from the rest.

Reference

1. Schiffman, G. L and Kanuk, L. L. (2007) Consumer Behavior. 9th edn. New Jersey: Pearson Education, Inc., Upper Saddle River.

2. Solomon, R. M., Bamossy, G., Askegaard, S., Hogg, K. M. (2010). Consumer Behaviour A European Perspective. 4th edn. England: Pearson Education Limited, Harlow, Essex 3. Coren S,Ward LM,Enns JT (2004). Sensation and Perception. 6th ed. United states of America: John wiley & Sons. p80-120. 4. Caplan, J. (2007) the iPhone Kick-Starts the Competition. Vol. 169 Issue 27, p36-36. [Online]. Available at: http://web.ebscohost.com/ehost/detail?sid=1fb8de05-c64c4eac-aa8af3304b0f2744%40sessionmgr4&vid=2&hid=18&bdata=JnNpdGU9ZWhvc3QtbGl2Z Q%3d%3d#db=bth&AN=25517773 (Accessed: 21 april 2012). 5. Dubois ,B (2000). Understanding The Consumer. 2nd ed. United kingdom: Pearson Education Limited. p59-79. 6. Salomon I, Koppleman PS. 1992. Teleshopping or going shopping an information acquisition perspective. Behaviour and Information Tech- nology 11(2): 189198.

7. Schiffman, G. L and Kanuk, L. L. (2007) Consumer Behavior. 9th edn. New Jersey: Pearson Education, Inc., Upper Saddle River 8. Erica, T. (2009) How the iPhone Changes Consumer Behaviour. [Online].

Available at: http://www.citizeneconomists.com/blogs/2009/02/12/iphoneconsumers/ (Accessed: 23 march 2012).

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Available at: ) http://web.ebscohost.com/ehost/detail?sid=b355a407-760941a4-a9a4da3e5bd38f85%40sessionmgr112&vid=2&hid=122&bdata=JnNpdGU9ZWhv c3QtbGl2ZQ%3d%3d#db=bth&AN=32714587 (Accessed: 2 april 2012).

10. Barbara reiner. (2009). holistic marketing,marketing segmentation,product positioning,strategic planning. Available: http://blog.marketingholistics.com/. Last accessed 15th mar 2011 11. Kassarjian,H.H.(1971) Personality and Consumer Behaviour: A Review, Journal of Marketing Research, 7. pp.409-418.

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15. 16. SMM 111 17. CONSUMER BUYER BEHAVIOR 18. & INTERNATIONAL MARKETING 19. SEMESTER B (2011) RESIT 20. Consumer Perception on Apple I Phone 21. 22. Module Leader: Emma Clews 23. Additional Tutor: Jaya Akunuri 24. 25. Submitted by: DINESH J DESAI 26. 1050148

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Table of Content
TOPIC Page

Executive Summary Introduction Perceptual process Elements Of Perception Process Of perception Marketing Mix Findings Conclusion References

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