Consumer Behavior in the Indian Smartphone Market

This assignment delves into the complex world of consumer behavior within the Indian smartphone market. It explores various factors that shape purchasing decisions, including demographics, cultural influences, brand perception, product features, and price sensitivity. The analysis draws on research findings, statistical data, and case studies to provide a comprehensive understanding of the motivations and preferences driving smartphone adoption in India.

Consumer Behavior- Purchase of an iPhone 5s in India

Contents
Introduction......................................................................................................................................2
Influence of Demographics on the purchase decision.....................................................................2
Influence of household structure on the purchase decision.............................................................3
Influence of Social Classes on the purchase of iPhone in India......................................................4
Influence of Culture on the purchase of iPhone in India.................................................................4
Buyer Decision-Making Process: Organizational Markets.............................................................5
Societal issues..................................................................................................................................6
References........................................................................................................................................8

Introduction
The purchase decision of a consumer is significantly influenced by a series of choices that a
consumer makes which are related to the values, attitudes and their opinion regarding purchase
before establishing a willingness to purchase (Rao, 2004).
India is one of the countries where the manufacturers of various products find ample of
opportunities. As it is one of the fastest growing economies, the importance of smartphones has
increased in the personal life of every individual thereby causing the smartphone industry to
grow at a fast pace. Similar is the case with Apple’s iPhone. Though it is expensive than other
smartphones, still its quality and reputation provides a reason to the customers to purchase it.
Following points have been highlighted as the factors which influence the purchase decision of a
consumer while buying Apple’s iPhone 5s in India.
Influence of Demographics on the purchase decision
Demographics can be defined as the quantifiable features of particular inhabitants (Murdock, et.
al., 2015). It includes the study of size, structure and spreading of such population and deviations
that arise among them due to aging, birth, migration and death (Kumar, 2009).
As far as age is concerned, Apple has targeted the market successfully for every age group.
iPhone 5s provides personalized apps in order to suit the needs and wants of every individual and
has become the desire of every individual. Among them, it is most popular between the young
generation of 20- 35 years as this age group possess high disposable income with absolutely
none or less responsibilities. Moreover, the buyer decides to purchase an iPhone 5s as it will
serve the dual purpose of smartphone and mobile PC. As young people are considered to be goal
oriented, they want each and every latest news on the go (Murdock, Kelley, Jordan, Pecotte &
Luedke, 2015). The data even shows that the majority of the iPhone users are males and females
still stand at a minority. This data is the result of two factors – preference and budget.
Apple can adopt a marketing campaign targeting the age groups beyond 35 years and must
provide some new features and options in camera, some educational apps for both younger and
older age groups such that it become the desire of every age group.

Apple must also adopt a strategy in India which focuses only on selling more phones. This does
not mean that it emphasizes on selling new phones (Aulakh, 2016). India is a continuously
growing economy and a producer of ample of opportunities for various companies (The Hindu
Business Line, 2017). Nowadays young people are becoming more brand conscious and iPhone
is undoubtedly one of the things that symbolize the status of a person (Salvendy, 2012).
Therefore, it will enable them to increase its sale in India.
Influence of household structure on the purchase decision
The members of the family powerfully influence the purchase decision of a buyer (Kumar,
2017). Every individual in a family including husband, wife and children have their own impact
over others and play an important role in determining and influencing the choice of one another.
A buyer’s life is significantly affected by two families namely family of orientation and family
of procreation. Family of orientation involves parents and their children and the influence of
parents on their children with regard to various aspects like religion, personal ambition and self-
worth. Similarly, family of procreation involves the spouse and children of an individual.
Nowadays, every member of a family has a mobile. Due to increased access to internet, children
are becoming more brand conscious day by day thereby pushing their parents towards the
purchase of the most expensive phone i.e. iPhone. Young generation purchase an iPhone for the
purpose of fulfilling their self- actualization needs such as achieving personal growth and
potential (Elgan, 2014).
Apple can also consider a marketing strategy which is formulated after deeper analysis of Indian
household structure that focuses on attracting children through advertisements on television and
internet picturizing artists of their age. This will because children influence their parents and
elder siblings to purchase an iPhone.
Another strategy which can be taken into consideration by Apple is the introduction of household
budget and expenditure calculator app in iPhone which will help people in allocating and
managing budgets for the entire month. The advertisements of such strategy will work from the
household perspective.

Influence of Social Classes on the purchase of iPhone in India
Social Classes is a part of cultural influences and can be defined as the group of individuals
divided on the basis of similarities in income, education and occupation (Sarangapani, 2009). It
has been identified that people who favor iPhone slightly differ in characteristics in terms of
education, household income, occupation, etc. (Hixon, 2014).
As far as income is concerned, iPhone is favored in majority by the high income groups and then
by the upper medium income groups (Jain & Sharma, 2013). Very few percentage of medium
and lower medium income groups think of purchasing an iPhone 5s as it is much beyond their
budget even after the decrease in prices after the launch of iPhone’s upgraded versions (Patel,
2014).
Furthermore, iPhone 5s is easy to use and understandable by non- graduates, graduates and post
graduates of both categories either general or professionals as they are capable of understanding
an iPhone’s setup (Mohd Suki, 2013).
Occupation plays an important role in deciding the budget for a smartphone for an individual. In
India, self-employed people (superior level people) who are also known as business persons are
on top of the list of people capable of affording an iPhone (Chakravorti, 2016). Moreover,
iPhone 5s is also affordable for supervisory levels, middle and senior executives and junior
executives.
Apple must launch marketing campaigns for the older versions like iPhone 5s, iPhone 5c, etc. as
budget phones which are under reach for lower income groups also.
Apple must also launch marketing campaigns regarding its features like the voice of SIRI which
seems to be difficult but actually makes the phone much easy to use even for less educated
people who are not so familiar with technology as it enables the phone to function automatically.
Influence of Culture on the purchase of iPhone in India
Consumer behavior is affected to a great extent due to the cultural influences (Rao, 2004).
Culture can be simply defined as the behavior, wants, society and personal values, opinions
which are derived from the family and other important establishments (Bhasin, 2016). It can also

be regarded as lifestyle which is further passed on from one generation to another (Sarma &
Sarmistha, 2017).
A person buys an iPhone as it accomplishes the desire to be accredited for it by family, peers and
other people associated with that person. It is often purchased as a result of peer pressure as
everyone else in the group are purchasing it and talking about it.
Apple can launch a marketing campaign featuring iPhone as a status symbol in India showing
how other brands are not capable of standing in the race. This will motivate all the brand
conscious people to immediate purchase an iPhone.
iPhone is considered as a business-class phone. Therefore, strategies can be formulated to target
the business class and their lifestyle. It must show that how the life of business persons is eased
to a great extend with the use of an iPhone.
Buyer Decision-Making Process: Organizational Markets
As the head of the procurement department of Intuit Inc., the decision making process will be
directed in the following ways-
a. Problem Recognition- For an organization, the employees are always the priority and for
them it needs a phone which can act as a safe medium of communication where security
is not compromised and small tasks can be easily performed without computers. With the
help of suitable phone, the said purpose is served to a great extent as it reminds the
employees regarding their schedules, meetings, important mails. All these features will be
available with the benefit of transportability.
b. Information search- After recognizing the problem, the next step is to search the available
products in the market that serve the requirement of the organization. For this purpose,
various sources would be referred such as the reviews and ratings of the best available
smartphones in the market (Pettigrew, 2014).
c. Evaluation of alternatives- After the detailed analysis of the information derived, two
major players in the smartphone market were recognized and they are Apple and
Samsung on the basis of their compatibility to meet the requirements. On detailed
evaluation of the products of these two companies, it was discovered that Samsung was a

less expensive brand in comparison with Apple but Apple takes the lead in terms of
technology and features and provides more security to its users. It provides free video
calling and messaging facility among all Apple users.
d. Supplier choice and Purchase- The next step aims to receive quotations from different
Apple outlets. Then the quotations will be screened and the qualified Apple store will be
selected for purchase as per the specifications provided in the quotation. Then the order
will be placed.
e. Post Purchase Processes- After getting the delivery from the store, the payment will be
made to the supplier as per the terms mentioned in the quotation (Wind, Thomas &
Sheth, 2014). Proper bills and warranty slips will be acquired for obtaining the after sales
services. Employees will be asked to provide feedback for the phone from time to time
and will be provided the documents so that they can get the phones repaired in case of
any damage.
Societal issues
a. A problem which has the capability of influencing a substantial amount of persons within
a society is a social or societal issue. Consumer protection is taken into consideration
with the help of a social movement which is headed by consumer organizations and is
also known as consumerism.
There are various societal issues which must be addressed on an immediate basis
like degradation of environment and lack of technology and use of internet in rural India.
Poor farmers in India suffer from lack of awareness regarding the prevailing prices for
their produce and therefore suffer from huge losses which lead them to live a miserable
life.
Apple can initiate a local consumerist movement which will benefit the company
as well as the society they operate in. The name of such movement would be “Kisan ki
Bachat” (Savings of a farmer). Apple would sponsor this movement in collaboration with
the leading telecom networks in India and start a SMS service for continuous update on
the prices of the produce on the registered numbers. It must also introduce campaigns in
the rural India for creating awareness regarding the use of internet and technology in
order to make the day to day life much easier. This will enable the farmers to search for

places on the internet where they will get the maximum price for their produce. On the
other hand, Apple can also address the major issues related to the environment and its
degradation. It can provide proper education relating to creation of eco-friendly
environment.
b. In order to become environmentally suitable Apple must aim at keeping the planet safe
from all the harm caused from the stage of manufacturing till the point of disposal of the
product. Apple must take proper steps for reducing the green house gases emission at the
phase of product use. For this purpose, it must make effort in the field of improving the
energy efficiency of products. These green house gases (GHG) must also be controlled at
the manufacturing sites of Apple’s products.
Apple must also conduct a life cycle assessment (LCA) of all of its products with
a view to analyze and measure the environmental impact of such products in ozone layer
depletion, water use, global warming, acidification, etc. (Murphy & King, 2016) The
results of such assessment must be used to take further steps to reduce such deathly
impact.
Moreover, Apple must develop energy reduction technologies for its products
since its products require more power consumption. Also, they can utilize the recycled
plastic which is collected from the waste products in its earphone cases, charging adapter
and inner packaging tray.
It may also conduct environmental activities in the world supporting the
conservation of biodiversity, save trees and resources with the message of achieving zero
environmental impact (Suckling & Lee, 2015). Furthermore, it must focus on producing
energy efficient products ensuring that the raw materials utilized in its products are
absolutely safe for the consumers. They must also undertake responsible recycling of its
products and at the end provide all the related environmental planning and data to its
customers for their knowledge.

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