Analysis of iPhone 7 Market Segments and Consumer Purchase Behavior

This report analyzes the market segmentation of the iPhone 7, focusing on demographic, behavioral, geographic, and psychographic factors influencing consumer demand. It explores the impact of demographic factors such as age, gender, income, and education, highlighting Apple's premium service strategy to attract consumers. The report also examines psychographic segments, including consumer opinions, interests, and values, and behavioral aspects such as brand loyalty and purchasing patterns. It discusses how consumer preferences, behavioral variations, and attitudes drive Apple's marketing strategies, including premium services and product innovation. The report further investigates consumer purchase behavior, emphasizing brand loyalty and the willingness to pay for premium services, ultimately contributing to Apple's market dominance. References to academic sources support the analysis.

Running head: BACHELOR OF BUSINESS
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Name of the student
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Estimated size of each segment (characteristics are demographic, behavioral,
geographic or psychographic).
The market size of the each segment of iphone7 depends on the demographic,
behavioral, geographic or psychographic factors. The growth of the business is highly
dependent on the larger demand coming from chunk of population. Demographic factor
includes age, gender, income, education, occupation type, size of family, religion and the
type of nationality of the customer (Dameron and Durand 2017). Demographic factors play
an important role in demand for the product. Apple Company provides the facility of
premium service in order to create more consumers. Normally the range of middle class
consumersare pretty higher and they are the greater source of generating demand for the
product adding to the higher business
Iphone7 is attributed with easy and smart features with the application of latest
technology (Jubinville and Lynch 2017). Psychographic segment deals with different kinds
of opinions, interest criteria, values and attitude of the consumer. Behavioral aspect includes
the loyalty and nature of the consumer for the product. It depends on the income level of the
consumer.
The people who have already purchased the product consists the first set of people
with respect to loyalty analysis. The purchase and use of the iphone by them reflects the trust
and loyalty they have gained in the quality with strong brand image. There are second set of
people who get attracted due to latest design, innovation and packaging and features of the
product displayed to them through advertising that play major role too in buying their
attention and desire to own the product. The rest part includes set of people that who are
mostly pretentious of their purchasing power ability to boast the society and end up mostly
not buying it. These variations in the taste and preference of consumers along with difference

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in behavioral pattern and attitude, the Apple Company started making provision of premium
facilities in terms of incentives to capture the potential consumers into the business.
2. What might the purchase behavior of consumers in this segment look like? What
brands might they prefer to buy?
Apple Company focuses on product diversity, product differentiation, innovation and
premium facility. While purchasing the Apple products, the segment that deals with
behavioral aspect is most popular in terms of making purchase. Behavioral segment includes
three sets of people along with the brand loyalty of the consumers. Company is motivated to
charge for the premium services it provides to the first set of people. As people have the
loyalty for the brand, therefore they pay premium charges for the products (Nickel et al.
2017). This becomes a positive factor for the company to capture more profit. It also creates
comparative factor for the company. Loyalty of the consumers and demand made by them
create a strong impact on the revenue of the Apple Company that adds to the further growth
of it in the market.
When consumers are satisfied with the services and features of the phone, they get
motivated to pay even higher for the product as reveled by their willingness to pay. This
motivates the Company to produce more customer-based products based innovation and more
research and development (Ramadani and Gërguri-Rashiti 2017). This brings forth products
which are more technologically sound and this evokes interest among more number of
customers taking the reputation of the company to a higher level. Products maintaining
certain standard of quality and provision of the authentic and economical customer oriented

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services play the pivotal role in supporting to the brand loyalty. Al of these market factors of
helps Apple Company earn dominance in the marketplace over the other companies.

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References
Dameron, S. and Durand, T. eds., 2017. The Future of Management Education: Volume 1:
Challenges facing Business Schools around the World. Springer
Jubinville, K.B. and Lynch, A., 2017. Special Session: Designing an Integrated 3-Year
Marketing Bachelor’s Degree Program. In Creating Marketing Magic and Innovative Future
Marketing Trends (pp. 1103-1107). Springer, Cham.
Nickel, A.Z., Stein, O., Mohr, M., Sinske, O.S. and Mohr, O.S., 2017. T Course: Seminar in
Operations Research (Bachelor)[T-WIWI-103488]. Module Handbook Industrial Engineering
and Management (B. Sc.).
Ramadani, V. and Gërguri-Rashiti, S., 2017. Global Marketing, Gender and Family Business
in Asia: A Literature Review. Journal of Global Marketing, pp.1-9.
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