Consumer mindset and value perception

Abstract

The objective of this case study is to identify the mindset of consumers and perception of values towards the high end smartphone category in India through a comparative study. The iPhone and the Samsung S series were compared on value dimensions identified through literature survey. The value dimensions are brand experience items, brand familiarity, self-confidence, financial, functional, symbolic, social, value consciousness, willingness to pay premium, expert opinion, extrinsic attribute, product packaging, perceived quality, perceive risk, purchase intentions, consumer complaint experience and retail store experience. On Brand Experience Items it was found that while both iPhone and Samsung users are very familiar with their respective brands, iPhone users were more confident in purchasing an Apple product when compared to Samsung phone users. The study also identified that self-confidence of apple users is comparatively more. In terms of financial value, unlike Samsung phone users, iPhone users felt that while the phone was more expensive it was worth the value. On functional aspects iPhone users believe that iPhone has superior quality over Samsung S series. In terms of quality, durability and performance, iPhone users find the product far better while same cannot be said of Samsung. Samsung users feel that overall functionality of phone is very poor. Brand personality congruence is high among the iPhone users. While social affiliation and aesthetic aspects have been reported less importance among iPhone users, the same is not true for Samsung Users who care more about social affiliation and aesthetic aspects of product. iPhone users seem less concerned about flaunting the product in their social circle but believe that iPhone improves their social image. While Samsung user felt that their social image deteriorates by using the Samsung phone. Both users want to maximize their value for money when it comes to the product quality. iPhone users feel proud in recommending the product to other users. iPhone users have shown more willingness to pay premium for their product while Samsung users denied to greater extent about willingness to pay premium. At the same both of the users don’t show willingness to pay premium for any other brands than their respective one. A brand loyalty factors can be taken into account here as both the groups don’t have confidence in other brands of the Smartphones. Samsung users rely more on expert opinion while buying the products while iPhone users shown self-reliance. The attractiveness of the packaging is associated with the premium feeling among Apple users. The perceived financial, physical and time risk is higher among the Samsung users IPhone Users have shown enthusiasm in purchasing the same brand of the phone in their repeat purchase while the Samsung users are apprehensive Samsung users feel that Salesman are not honest at Samsung retail stores.