Marketing Consumer Behavior Analysis: Apple Watch Series 3 Report

This report delves into the marketing consumer behavior surrounding the Apple Watch Series 3. It provides an executive summary that focuses on the five-stage consumer decision-making process for the product, including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. The report examines the psychological influences Apple employs at each stage to impact consumer choices. It identifies the target market as millennials and discusses the demographic profile. Key recommendations are provided to enhance product purchase, including increasing product independence, incorporating innovative features, and fostering collaborations. The report concludes with a summary of the findings and recommendations.

Running head: MARKETING CONSUMER BEHAVIOUR
Marketing Consumer Behavior
Name of the Student:
Name of the University:
Authors Note:

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Executive Summary:
The report is a discussion on marketing consumer behavior. The aim of the report is to
focuses on the five-stage analysis of consumer decision-making process for Apple Watch
Series 3. There is also discussion on how the brand makes a psychological influence on each
of the stages of consumer decision-making process. The report also puts forward
recommendations that would enhance the purchase of the target customers. The
recommendations includethe product being more independent, incorporation of innovative
means and collaboration with other companies.

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Table of Contents
Introduction................................................................................................................................4
About the Company................................................................................................................4
About the Product...................................................................................................................4
Target Market and Demographic Profile................................................................................4
Definition of Consumer Behavior..........................................................................................5
Scope of the Report................................................................................................................5
Discussion..................................................................................................................................5
1. Recognition of the Problem................................................................................................5
Psychological Influence..........................................................................................................5
2. Search for Information.......................................................................................................6
Psychological Influence:........................................................................................................6
3. Evaluation of the Alternatives................................................................................................7
Psychological Influence:........................................................................................................7
4. Decision for Purchase.........................................................................................................8
Psychological Influence..........................................................................................................8
5. Post Purchase Decision.......................................................................................................9
Psychological Influence:........................................................................................................9
Key Recommendations............................................................................................................10
Recommendations:...............................................................................................................10
Implementation:....................................................................................................................10

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Reason for its Implementation:............................................................................................10
Conclusion................................................................................................................................10
References................................................................................................................................10

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Introduction
About the Company
Apple Inc is a multinational technology company headquartered in Cupertico, California.
The company develops, sells and designs online services, computer software and computer
electronics (Apple 2018). The hardware products of the company includes iPhone, Mac
personal computer, iPadtablet, iPod, the portable media player, Apple TV digital media
player, Apple Watch and Homepod, a smart speaker.
About the Product
Apple Watch Series 3 is a third generation model of Apple watch, released in the year
2017 on September 22. The watch has an inbuilt long-term evolution (LTE) cellular
connectivity and offers data and voice communication along with music streaming facilities.
The watch has an electronic SIM card that can share the same mobile number as iPhone of
the user (Rawassizadeh, Priceand Petre2015). The hardware of the watch has a dual core
Apple S3 processor along with a red digital crown. The software of the watch is watch OS 4
that supports an updated heart rate app, workout app, two-way data synchronization that
helps in integrating with various cardio fitness equipment.

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Figure: Apple Watch Series 3
Source:(Apple 2018)
Target Market and Demographic Profile
Apple Watch Series 3 targets the millennial since they are more receptive to technological
innovation (Heracleous2013). They areknown as echo boomers whose characteristics vary
depending on the region, economic and social conditions. Millennial have increased
familiarity with media, digital technologies and communication.
Definition of Consumer Behavior

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Consumer behavior refers to the study of groups, individuals or organizations along with
the activities that associates with disposal, use and purchase of services and goods(Mullenand
Johnson2013). This also includes considering consumer’s mental, behavioral and emotional
responses that follows or precedes the activities.
Scope of the Report
The report gives an insight to Apple latest edition and its acceptability amongst consumers
Discussion
The five Stages of Consumer Decision Making Process (CDMP) are as follows:
1. Recognition of the Problem
This stage happens before the purchase of the product where it is important to identify
the needs of the customers(Solomon2014). This creates an excellent opportunity for the
marketers toadvertise their goods in a manner that is able to meet their needs. This also helps
the customers to believe that their needs could be resolved.
Psychological Influence
Apple Watch Series 3 recognizes the need of the customers by incorporating the
psychological influence. Apple Watch Series 3 has improved feature and functionality
(Taylor2015). The biggest change brought to the customers is its additional feature of cellular
connectivity. Moreover, Apple Watch users no longer need to keep themselves tethered to the
iPhone since this product allows the consumers to receive and make calls, remain connected,
receive and send text and stream music. Apple Watch Series 3 also have barometric altimeter

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along with a faster dual core processor. The Apple Watch Series 3 offers newer styles and
bands that help owners in to demonstrate theirindividuality in varied colors and types.
2. Search for Information
This stage is the search stage of the consumer decision-making process. People have now
progressed from old-fashioned shopping approach to onlinesearch engines(Oliver2014).
People also gather information through word of mouth and previous experiences. This is the
stage when the customers also think about risk management by considering the advantages
and disadvantages that helps in easier decision-making. The best way a marketer can market
to this need is by establishing the brand as a market leader.
Psychological Influence:
Apple recognizes the needs of the customers at this stage by incorporating
psychological influence.Apple Watch Series 3 are available in two versions. One comes with
onboard cellular connectivity while the other is available with GPS facilities(Starner2014).
The non 4G version provides value for money and ensures fitness capabilities. This series 3
watch is a direct replacement of the series 2 watch category. However, both the versions have
a chipset inside and are a flag bearer of longevity and fitness. This watch has cycle tracking
and water resistant facilities along with facilities for heart rate monitoring. This watch
haslatest operating software, WatchOS 4, makes the watch expensive. This watch acts as
additional benefits for the fitness freak as it has apps that primarily focuses on fitness. The
watch is available at a price of AU$459.

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3. Evaluation of the Alternatives
This is that stage when the customers seem to place their queries regarding the product.
At this stage, they try to analyze the real need of the product as a part of their well-
being(Gunterand Furnham2014). Once the customer is convinces themselves about satisfying
their needs they look out for the best deals in town based on quality, price and other factors
that they consider important. Dealing with this stage cannot be easier for marketers. They can
however meet this stage by placing the details of their product on their websites.
Psychological Influence:
Apple Watch Series 3 is not only elegant and light but has a 1.65-inch square display that
helps in displaying better data. The screen makes use of organic light-emitting diode (OLED)
technology that makes the watch more attractive. The watch also had a bright, vivid and clear
display that allows greater view. The screen also automatically switches off in order to
preserve battery(Akana et al. 2015). This implies that the wrist needs to be flickered for
seeing the display. However, the algorithms of Apple are designed in a manner that a little
flick is powerful enough to light up the display. This watch had the facilities of music
streaming. The new version of Apple watch also has inbuilt cellular connection that allows it
to work independently with the phone. This allows the users to not only receive calls but also
receive app notifications. Call quality of Apple Watch Series 3 is quite impressive in terms of
voice quality and sensitivity. Therefore, this watch allows users to have conservation while
running. The integration of the watch with the iPhone is also useful while driving.
4. Decision for Purchase

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This is the stage when the customer decides to make a purchase based on the knowledge
gathered. At this stage, they are assured about the place from where they want to make a
purchase. This stage helps the customers to access all facts and thereby come to a logical
conclusion based on advertising/marketing campaign or emotional experiences/
connections(Schiffman et al. 2013). This is the stage when the marketer needs to provide a
sense of security thereby reminding the customers on why they made the purchase. Here the
marketers also need to remind the customers that the brand can essentially fulfill their needs.
The markets can also reinforce purchase decisions through email reminders.
Psychological Influence
The marketers of Apple can also follow this approach in addition to focusing on the
motivating the customers for making a purchase. The purchase of Apple Watch Series 3
would be the best decision on the part of the users, as it will allow them to receive or make
calls without even using a handset(Taylor2015). The LTE enabled Apple Watch Series 3 is
automatically able to reconnect when there is a loss of connection. The entire display has
LTE antenna and Universal Mobile Telecommunications System (UTMS) that provides
excellent coverage inside and in outdoor. The Apple watches uses the same telephone number
as that of iPhone and so the users have their calls routed to the watch. This series of phone
also have complete data connectivity so that music streaming can happen directly from the
wrist. Therefore, the watch allows users to stream music from the wearable device.
The Apple Watch Series 3 has a built in Barometric Altimeter that helps tracking the
activities of the users. This series of Apple Watch has made problem outdated, as they are
able to track activity, the number of flights climbed and enable tracking of outdoor workouts
that included elevation gain.

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This high technology watch allows asking Siri questions and hears the respond using the
built in speaker of the watch. This is quite helpful while the user wants to send a text message
while driving. The Siri will enable confirm the message by reading it to the user and sending
it.
Moreover, Apple Watch Series 3 has improved processor along with a wireless chipset.
The new wireless chip also known as W2 enhances the ability of the watch in connecting to
the Bluetooth and Wifi internet without sacrificing the life of the battery.
5. Post Purchase Decision
This is the review stage for the customers as well as the company. After purchase when
the customer finds that the product has exceeded or matched promises more than their
expectation they tend to become their brand ambassadors that helps in influencing other
customers(Cohen, Prayagand Moital2014). However if the expectations are not met then
negative feedback from the consumers also pour in thereby ending the journey of other
potential consumers. In such cases follow up emails and surveys to the customers can be of
help. Apple also considers the necessary feedback from the customers in modifying their
products.
Psychological Influence:
Negative feedback from the consumers is bound make any company depressed however;
Apple belongs to a category of company that uses negative reviews from its consumers to
make necessary changes to its products so that they become easily acceptable the next time
round(Kumar et al. 2015). Apple never feeds trolls as they come from people with wrong
perspectives and could sometimes be contentious and disrespectful. The company also takes a

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pause before reacting and jumping into immediate actions. Apple therefore tries to affirm
relationships with its customers with newer modified versions of its products. For this, they
tend to prepare, understand interest, affirm relationships, searching for creative solutions and
evaluating the options that are reasonable and objective.
Key Recommendations
The key recommendations to the brand for influencing the customers for purchasing
the product are as follows:
In terms of Fashion: Although the Apple Watch Series 3 is a high tech device, the
company can push the style to envelope further. The company can thus collaborate with
inexpensive brands like Target for increased customizationand decrease its price. This will
enable Apple to optimize its product and appeal more to the masses.
In terms of Independence: The reliance of the Apple watch on its iPhone is one of
its biggest flaws. There is a need for the people tocarry the phones for facilitating Bluetooth
connectivity that helped in enabling the function ability of the watch. Thus, without the
iPhone the use of the watch becomes limited. Therefore, the watch is a more of an accessory
rather than an independent device. Incorporating features that make the watch an independent
entity that can encourage target customers to make a purchase.
Incorporating Health App: Incorporating health metric and innovation analysis
inthe latest Apple Watch Series 3 would not only monitor all facets of the wellness growth
but would definitively enhance its popularity among the masses.
Conclusion:

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The report ends by putting forward recommendations that would increase the sales of the
Apple Watch Series 3. There is also discussion on the five stages of consumer decision-
making process and how the Apple meets focuses on each of the stage through psychological
influence. The report also gives a brief overview of the company, its products and the target
audience along with their demographic profile.

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References:
Apple. (2018). Apple Watch Series 3. [online] Available at: https://www.apple.com/apple-
watch-series-3/ [Accessed 18 Jan. 2018].
Cohen, S.A., Prayag, G. and Moital, M., 2014. Consumer behaviour in tourism: Concepts,
influences and opportunities. Current Issues in Tourism, 17(10), pp.872-909.
Gunter, B. and Furnham, A., 2014. Consumer Profiles (RLE Consumer Behaviour): An
Introduction to Psychographics(Vol. 5). Routledge.
Heracleous, L., 2013. Quantum strategy at Apple Inc. Organizational Dynamics, 42(2),
pp.92-99.
Kumar, N., Khunger, M., Gupta, A. and Garg, N., 2015. A content analysis of smartphone–
based applications for hypertension management. Journal of the American Society of
Hypertension, 9(2), pp.130-136.
Mullen, B. and Johnson, C., 2013. The psychology of consumer behavior. Psychology Press.
Oliver, R.L., 2014. Satisfaction: A behavioral perspective on the consumer. Routledge.
Rawassizadeh, R., Price, B.A. and Petre, M., 2015. Wearables: Has the age of smartwatches
finally arrived?. Communications of the ACM, 58(1), pp.45-47.
Schiffman, L., O'Cass, A., Paladino, A. and Carlson, J., 2013. Consumer behaviour. Pearson
Higher Education AU.
Solomon, M.R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). Upper
Saddle River, NJ: Prentice Hall.
Starner, T., 2014. How wearables worked their way into the mainstream. IEEE Pervasive
Computing, 13(4), pp.10-15.
Taylor, A.G., 2015. Common Features. In Get Fit with Apple Watch (pp. 3-8). Apress.