MBA404 Consumer Behavior Report: Apple iPhone vs Nokia Comparison

This report provides a comprehensive analysis of consumer behavior, focusing on the Apple iPhone and its comparison with Nokia. It integrates information from previous assessments, exploring marketing issues such as consumer attitudes, group influences, and decision-making processes. The report examines the process of consumer behavior, demographic factors, brand reputation, and the application of STP (Segmentation, Targeting, and Positioning) strategies. It then delves into the marketing mix (7Ps) for both products, evaluating their impact on consumer behavior. The findings highlight how market forces influence consumer choices, leading to strategic recommendations for future improvements, particularly for Nokia. The report utilizes peer-reviewed literature to support its analysis and recommendations, offering a detailed overview of consumer behavior within the mobile phone market.

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Executive summary
The aim of the report is present the professional report that combines all the information that
have been accumulated in the Assessment 1 and 2. The report will include issues that are linked
with the marketing and with consumer behaviour which include attitudes, group, influences,
social class, consumer learning processes, and many others. The product on which the report is
prepared is Apple iPhone that is compared with the brand Nokia. The findings include the issues
related to the market that can make the consumer to select the other different products. The
critical evaluation as well as the comparison has been done considering the marketing activities
that include STP and marketing mix (7Ps). It has been found that how the consumer behaviour
get affected due to the market forces. In the end of the report, it includes the least three strategic
recommendations for the future improvement in the operations.

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Contents
Selected Product or Service Overview............................................................................................3
Critical Analysis..............................................................................................................................3
Consumer behaviour....................................................................................................................3
Process of consumer behaviour...............................................................................................4
Consumer behavioural factors.....................................................................................................4
Segmentation, targeting and positioning.........................................................................................5
Segmentation...............................................................................................................................5
Targeting......................................................................................................................................6
Positioning...................................................................................................................................6
Marketing mix.............................................................................................................................6
Strategic Recommendations............................................................................................................8
References......................................................................................................................................10

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Selected Product or Service Overview
Considering the previous assessment, the product that has been selected for the analysing the
customer behaviour is Apple iPhone which is popular in the market. Apple Company is
recognised company who sells and markets mobile communication as well as the media devices
with the personal computers and portable digital music players. It provides the related software,
accessories, networking solution and many others. IPhone is one of the best products that is
offered by company which is available in different variants that include iPhone 7 plus, iPhone 8,
iPhone X and many others.
IPhone is device presented by the Apple Inc. performing the function of the mobile phone. This
product came first in the service by the Steve Jobs on January 9, 2007 At the Macworld
exhibition in San Francisco. This new products has innovation solution in the iPhone was to
replace or remove the traditional mobile phones. This product has brought numerous changes in
the behaviour of customers that influence their decision towards the purchase of product. The
product has been selected because it is better than the other products including Nokia in the
market. The reputation of the brand affects customer buying behaviour because every company
is looking to buy the product that has high brand value.
Critical Analysis
Consumer behaviour
Consumer behaviour is the study that reflects how customers can makes the purchase of the
products to meet the needs and wants (Raab, Goddard, and Unger, 2016). The behaviour of the
customers matters a lot for which they follow the process for purchasing product.

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Process of consumer behaviour
Identification of needs- Customers determine the needs related to their new mobile phone that is
equipped with new features and designs.
Information search: - Customers search for the information that is linked with the different brand
that offers the mobile phone (Malik, et al, 2013). The brands that are major selected by the
company include iPhone, Nokia, and many others.
Evaluation of options: - Once the consumer selects the brand like iPhone and Nokia then they
evaluate which option is better for them (Tingchi Liu, Brock, Cheng Shi, Chu and Tseng, 2013).
This has been found that Apple iPhone has good brand image with the improved availability of
the service instead of the other brand like Nokia. Further, it is witnessed that Nokia is not able to
add lifestyle and value to the life, the services and quality of the product varies between Nokia
and Apple iPhone. This can be said that comparatively Apple company products are better than
Nokia.
Selecting the product for purchase: - Evaluation help company to make purchase of Apple
IPhone instead of Nokia. Thus, the customers purchase the product to avail the post purchase
services.
Post purchase: - Once the Apple iPhone is purchased by customers then they avail the services
offered by the company that include customer support 24/7, good value, premium services and
many others.
Consumer behavioural factors
The findings of the previous assessment, this is very clear that there are different factors that
influence the consumer behaviour towards the Apple iPhone comparing it with Nokia.

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 Demographic factors: - Gender is major demographic factor that influence the customer
to purchase iPhone. The results of the survey reflect that male purchase products from
any company but females are more likely to take the interest in Apple iPhone rather than
Nokia. Further, it has been found that age is also one of the major factors as people in old
age are not likely to purchase the smart phones as their preference is towards the old
touchpad phones that are offered by Nokia rather than iPhone (Rani, 2014). In the survey,
this has been found that annual income also affects the purchase of product. People with
the income high will likely to purchase the brand like Apple rather than Nokia or vice
versa.
 Brand reputation: - Brand reputation is one of the major factors that influence the
behaviour of the customers (Ramya and Mohamed Ali, 2016). Apple iPhone is
considered as one of the well-known brand who is able to secure the market with good
brand reputation due to which customers are likely to purchase iPhone not like Nokia
Company.
Segmentation, targeting and positioning
The market practice that is followed by the company includes segmentation, targeting, and
positioning of the company (Grant, 2016).
Segmentation
Apple Company segmentation includes the population that is divided into the group considering
the particular characteristics for the iPhone. The company is one of the recognized multinational
technology companies that position itself as premium brand offering products as well as services
that offer the advanced functions and capabilities for the extra amount (Frynas and Mellahi,

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2015). The company consider the different segments unlike Nokia who is not able to offer the
products to wide range of segments. This is very clear with the segmentation approach of Apple
iPhone is effective enough that encourage the targeting rather than Nokia.
Targeting
The targeting is refers to as the customers to whom they are likely to offer the products for the
sales. This has been witnessed that Apple company targets customer segment comprise well-off
individual who are willing to offer the pay extra amount for the technology (David, 2011). Thus,
this is the reason due to which Apple Company makes use of multi-segment strategy in which
they target different sectors all together as this contributes in increase the sales of company as
well as improving the revenue. This goes opposite with company Nokia who is not earning the
effective revenue in the market because they are not able to implement the effective targeting
strategy. This shows that they very limited sort of people to whom they can target. The targeting
is done by Apple Company so that they can influence the customers to make the purchase. This
is the reason that the demand for the Apple products is increasing rather than other brands.
Positioning
The rise in the technology of Apple iPhone has formed the new image for the company in the
eyes of the customers in the market (Hollensen, 2015). The company has long life for the
products effective quality and premium pricing unlike Nokia who is in the category of the
affordable products.
Marketing mix
The marketing mix includes the set tools that are pursued by the company in order to achieve the
marketing goals. Apple Company also implements the same.

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Product: - Product is considered as one of the major element in which the Apple Company
offers high –end models with the smart technology that meets the needs of customer and
influences their behaviour towards the product (Chernev, 2018). On the other hand, Nokia is not
able to keep new technology in the products that are majorly offered by them.
Price: - Apple makes use of the premium pricing strategy in which they targets the customers
who afford the premium products at high price (Baker, 2014). This adds value and standard to
the life of consumer that is not possible Nokia because they have low pricing strategy. However,
this has been found that people who find high cost of the products are influenced because they
can’t purchase product at high price.
Place: - Apple iPhone is available at different places, which include the online, and offline mode
and this is it applied with Nokia. Now it depends on the customers which product they like to
purchase and from which mode because sometimes on online mode they get huge discounts.
Promotion: - Apple has strong brand value due to which they do not require promotional
strategy to promote the products. Nokia is not having good promotion strategy that makes the
customer unaware about the product. However, brand value of iPhone makes it easy for them to
select the best option (Išoraitė, 2016). It has been found that iPhone deals with the issue of
negative publicity at social media sites which affects the customers to make the purchase of
product.
People: - People at Apple offers the best protection plan for iPhone with extended customer
service coverage and with that, it offers the one-stop service due to which the brand is not top
and consumer make the purchase of product (Armstrong, Adam, Denize and Kotler, 2014).

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Process: - The process of Apple is highly technical then that of Nokia due to which it is able to
gain the market effectively.
Physical evidence: - The physical evidence presence is maintained by both the companies easily,
Nokia is better as it has stores at nearby places alike Apple.
Strategic Recommendations
From the above analysis, this has been found that the Nokia Company needs to bring the changes
in their strategies that help them to compete with Apple or survive in the market.
Improving brand value in Nokia: - It has been found that comparing Nokia and Apple, Nokia
is affected due to its low brand value and image. In the present market, the company should take
the steps to improve the brand image. It has been found that most of the people do not have such
an income to afford the products that are offered by Apple Company such as iPhone because
they are from the low or middle-income slab. Nokia offers the products at affordable prices,
which is one of the major problems for Apple iPhone. Thus, it is recommended to company to
generate the awareness through effective tools in the market for price that they are offering.
Further, the company should improve the services in market that will effectively contribute in
improving customer satisfaction that contributes in brand image. It is suggested to company to
add more features that helps them in meeting customer needs that contribute in improving brand
value in the market. In most of the developing market like India, Nokia company can easy win
the market because of the presence of low and middle group people on priority also they don’t
like to spend such a big amount of Apple iPhone.

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Improving brand image of Nokia through social media: - On the social media website, they
find the issues with the negative reviews or complaints of the customers that influences the
purchase of the Nokia products by other customers that creates impact on brand value. This
behaviour influence can be resolved with the fact by keep updating on the complaints and the
review of the customers. The company should be prompt enough to acknowledge the same and
should respond on every complaint. This will help them not only in offering the quick services to
retain the customers but also stop the other people to bring the changes in their buying behaviour
towards the product. Further, this contributes effectively in improving the image of company in
market. Moreover, Nokia can update the news and different important updates that can
contribute in improving the brand value of company in the market.
Considering demographic factors for new product strategies of Nokia: - Nokia should
consider demographic factors that can affects consumer behaviour towards brand for its new
product. This has been found that most of the people are not willing to purchase Apple products
rather than Nokia because they are not offering smart products that include technology. Thus, the
company should conduct the research in which they can analyse the needs of the male people so
that they can meet the same. It is suggested to the company to make these people realise about
the needs of Nokia that is available to them at the affordable price. In addition to this, the age is
also one of the factors that affect the consumer behaviour towards the purchase of product. It is
suggested to the company to launch new products that are easily accepted by people with the old
age because they also need the mobile to communicate easily. Thus, the company need to bring
the changes in their product strategy. The value should be added for the products that they offer
to the old age people present in the market.

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References
Armstrong, G., Adam, S., Denize, S. and Kotler, P. (2014) Principles of marketing. 6th edition.
Welbourne: Pearson Australia.
Baker, M. J. (2014) Marketing strategy and management. London: Palgrave Macmillan.
Chernev, A. (2018) Strategic marketing management. Chicago:Cerebellum Press.
David, F.R. (2011) Strategic management: Concepts and cases. India: Pearson/Prentice Hall.
Frynas, J.G. and Mellahi, K. (2015) Global strategic management. USA: Oxford University
Press.
Grant, R.M. (2016) Contemporary strategy analysis: Text and cases edition. New Jersey: John
Wiley & Sons.
Hollensen, S. (2015) Marketing management: A relationship approach. India: Pearson Education
Limited.
Išoraitė, M. (2016) Marketing Mix Theoretical Aspects. International Journal Of Research –
Granthaalayah, 4(6), 25-37.
Malik, M.E., Ghafoor, M.M., Iqbal, H.K., Ali, Q., Hunbal, H., Noman, M. and Ahmad, B. (2013)
Impact of brand image and advertisement on consumer buying behavior. World Applied Sciences
Journal, 23(1), pp.117-122.
Raab, G., Goddard, G.J. and Unger, A. (2016) The psychology of marketing: Cross-cultural
perspectives. Routledge.

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Ramya, N. and Mohamed Ali, S.A. (2016) Factors affecting consumer buying
behavior. International journal of applied research, 2(10), pp.76-80.
Rani, P. (2014) Factors influencing consumer behaviour. International journal of current
research and academic review, 2(9), pp.52-61
Tingchi Liu, M., Brock, J.L., Cheng Shi, G., Chu, R. and Tseng, T.H. (2013) Perceived benefits,
perceived risk, and trust: Influences on consumers' group buying behaviour. Asia Pacific Journal
of Marketing and Logistics, 25(2), pp.225-248.