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History of Apple and The iPod

Apple Inc is a major manufacturer of personal computers and other digital devices,

including the popular digital music player, the iPod, and the online music service known as the

iTunes Music Store. With headquarters in Cupertino, California, Apple designs, produces, and

sells personal computer systems for use in business, education, government, and the home

(Encarta, 2009). Apple Computer was formed by Steven Jobs and Stephen Wozniak in 1976 to

market the Apple I, a computer circuit board that they had designed and built in Jobs’s garage in

Los Altos, California. They scrapped their plan to sell the board alone when Jobs’s first sales call

yielded an order for 50 units. They were, however, sold without monitor, keyboard, or casing.

The company was incorporated in January 1977 by the charismatic Jobs, the meditative inventor

Wozniak, and their new partner and chairman, Mike Markkula (Encarta, 2009).

Apple began 2001 with a new round of product upgrades, but the most dramatic

turnabout in its fortunes came with the introduction of the digital music player known as the iPod

at the end of the year. The music player became extremely popular and was credited with helping

turn the company around. The same year the company announced plans to open retail stores,

which helped Apple provide better marketing support for its products. Following on the success

of the iPod, Apple in 2003 debuted an online music site called the iTunes Music Store that

enabled computer users to purchase and download music. The service quickly became one of the

most popular music download sites on the Web. By 2005 Apple had opened more than 100 retail

outlets in the United States, along with stores in Canada, Japan, and the United Kingdom. It

continued to pioneer in music services, unveiling the iPod nano, a smaller, thinner version of the

iPod. In 2006 Apple sold about 39 million iPods and announced that users had downloaded more

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than 2 billion songs from its iTunes Music Store. Building on the success of the iPod, Apple

continued to diversify its product line (Encarta, 2009).

Throughout this paper we are going to discuss multiple topics discussed in class. We

have created an outline of different aspects that go into the products, Apple iPod, and the

consumer decision process to purchase the iPod. Cultures, people, values, group influences all

shape a product and determines the success that it may have. External influences can be the

making or breaking point for a company’s product. Apple iPod does a very good job of using

their external influences to the fullest and their success reflects it.

Cross Culture Variations

A certain value is placed upon the iPod, a value that is universal. “It’s hard to remember

what I did before the iPod,” said Mary J. Blige, Grammy Award-winning singer. “IPod is more

than just a music player; it’s an extension of your personality and a great way to take your

favorite music with you everywhere you go (100 Million iPods Sold, 2009)”. IPod’s are

becoming a necessity in the eyes of consumers. It is the easiest and most convenient way to

carry around your favorite music and enjoy it at any time of the day. It can easily be said that the

iPod has taken over the world by storm and is still continuing to do so with every new product

item Apple adds to their line. After six years of being on the market, iPod hit a milestone on

April 9, 2007 when the 100 millionth iPod was sold. In a Yahoo! Tech article written this month

it is stated that “iPod sales of 11,013,000 were up three percent over the same quarter last year”,

showing that sales are reaching high amounts annually, with the international markets being

particularly important with bringing in 46% of the quarter’s revenue. The market share is

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incessantly growing within both the United States and the worldwide markets (predominantly in

the United Kingdom, France, Germany, Japan, Australia and China) (Dalrymple, 2009).

Changing American Society

Changing the American society’s view on how to listen to music is a task that iPod has

completed. Given an option as to what music device to use, it has become the norm to rely on

one’s iPod. For consumers that own an iPod, it has self-oriented, environment-oriented, and

some other-oriented values to them. High materialistic importance is the self-oriented value

because of the connection that owning an iPod shows wealth and social status. It is the item that

everyone has and if they don’t have one, they want one. When first put onto the market it was

seen as an item owned by the families with money, but has revolutionized into a product that can

be bought be high class, middle class, and some higher low class families. Apple as a company

is striving to become an economic friendly company and is implementing tradition and change in

our society which is their environment-oriented value. Most of their efforts are directed towards

their Mac computers because they have a much higher impact on revenue, but the iPod has had

its contributions. Apple changed the packing of the fourth-generation iPod Nano to a much

lighter package that uses less than half of the volume than previous packaging. A positive step

was also taken when recycling programs began in Asia, Europe and Australia (Apple and the

Environment, 2009). Implementing tradition and change seems to have come easy to the Apple

iPod by giving something of such convenience and value to our conforming society. The world

was ready for a change and that was given to them with the idea of a hand-held music device that

can give them everything they need in one object instead of sifting through hundreds of CDs to

find what they want. “Without the iPod, the digital music age would have been defined by files

and folders instead of songs and albums,” said John Mayer, Grammy Award-winning singer-

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songwriter and guitarist. “Though the medium of music has changed, the iPod experience has

kept the spirit of what it means to be a music lover alive (100 Million iPods Sold, 2009)”. Being

able to sell a product to any age group is a benefit that the iPod thrives on and is their other-

oriented value. Even though it seemed to be directed towards youth it is becoming a multiage

product because of the fact that everyone wants their music one click away, which is what the

iPod provides. For the older demographic, using an iPod may often give them the feeling of

being young again, which is always beneficial for a company.

The invention of the iPod came about when Apple decided there needed to be something

more convenient to carry around then the current music players. The demographic that Apple

targeted most when released was the teen/young adult age group. It has continued to have the

most success with the younger age demographic; there is even the new term "iPod Generation"

(Monarch Media, Inc., 2009). “IPod Generation” is now part of Western vocabulary, but the

iPod trend is spreading to older users every year. For example, hospitals are now taking

advantage of the iPod for training their staff. NHS Greater Glasgow found that using an audio

induction via an iPod with train all new employees at the same standard and will eliminate

human error (Monarch Media, Inc., 2009). Not only is the use of iPods spreading to the adult

demographic, but is also going below the teen group and hitting the young child age group.

"31% of kids ages 6 to 10 now use digital-music players, with iPod as the brand of choice for

54% of them (Monarch Media, Inc., 2009)”. These age demographics are catching onto the iPod

trend because of how accessible and easy the iPod is to get and to use. Distribution is one of the

key factors in Apple’s success with the iPod. Apple has 200 stores worldwide located in nine

different countries and an online store. The online store is accessible from computers at home

and for many more countries that do not have a brick and mortar stores (Apple Retail Store,

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2009). All of these store options carry every available iPod model and their accessories. When

coming into the market iPods were on the expensive side due to the fact that it was a new

technology and product that was unfamiliar to the world. It was the first in its product line.

Realizing the sales opportunities being missed out on in the middle and lower classes, the iPod

products and prices changed to accommodate to meet the social structure differences. The

middle class makes up 70% of the social structure and includes the working class which brings in

a large amount of income and purchasing power (Hawkins, Mothersbaugh, & Best, 2007).

Apple did a smart, beneficial move by introducing different models of the iPod such as the iPod

shuffle which is a smaller, less glamorous version of the iPod but is much lower in price. By

introducing the various models, Apple catered to the different social structures which have been

very successful for them.

With the world being so diverse and the United States itself being the melting pot that it

is, there are many cultures and subcultures that companies need to relate to and provide for. One

of the ways that iPod does this is by having their website designed for many different countries

and cultures. For example, you have an option to choose a country for your website. When

choosing a different country it then changes the language on the page to accommodate the

consumers’ needs. Another way would be how iTunes, the iPod music store, has a large variety

of music for different ethnic subcultures including rap artists, country artists, Latin artists,

Gospel artists, French artists, Irish artists, Spanish artists, etc. (Cheng, 2008) Being able to reach

these different subcultures begins with advertising, which Apple has done for the iPod with their

unique, basic yet effective advertising. IPod commercials are known for their creativeness,

vibrant color, dancing and music. The commercials tend to have a memorizing affect on

watchers and have been known to get whatever song that is for the commercial stuck in anyone’s

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head. There have also been times when unpopular songs have become very popular and well

known after being part of an iPod commercial. The commercials can relate and reach all the

different subcultures because of the fundamentals that anyone can relate to: dance, music, color.

IPod also does a good job of rotating through different artists from different music genres to

attract the different subcultures. Outside of media advertising, Apple uses events to market their

iPod line. In 2008 Apple held their “Let’s Rock” event that they held in order to show

consumers what they’re new iPod products were and to formally introduce the various updates to

the media. (Cheng, 2008) Excelling in almost every aspect of their marketing strategies has

pushed the Apple iPod above competitors and is what keeps them in the market leader position.

Group Influences

Without the dedicated consumer and the process of brand loyalty passed through the

community, the iPod would have never made it to the level of success that it is at today. The

brand community of music lovers has built a strong loyalty to the Apple iPod brand because of

its ability to cater to all the needs that a consumer needs (i.e. the new iPod touch with hundreds

of downloadable applications). With the internet having a huge impact on the business world,

Apple has risen to conquer that as well for iPod with their iPod website and iTunes website.

Both websites are very detailed and supportive that includes links for tutorials, how-to’s, Genius

application, trouble shooting, discussion boards and more. It is easy to navigate through the

websites which makes shopping or just searching an easy and enjoyable time which keeps iPod

customers happy and loyal. The proof of this is shown after Apple released the information that

over one billion downloads took place in the past 9 months (Apple iPod, 2009). Because of the

popularity that has risen with the Apple iPod, informational group and identification group are

the major influences on the iPod sales. Seeing and hearing about the millions of people using

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and enjoying Apples products along with the eye catching commercials have easily influenced

consumers into buying an iPod. To add on top of that, word-of-mouth marketing is one of the

most beneficial marketing strategies for Apple. Once a product that is accepted and loved as

much as the iPod, spreading the word throughout communities is an easy and successful way to

get a positive product positioning in the minds of consumers.

Recommendation1

Our first recommendation is that Apple should advertise and promote the iPod for more

business related situations. Having new and different functions for the iPod will broaden the

areas that it can be used in which will increase sales even more. The use of the iPod to train new

employees is an excellent way to get the iPod into a different group of consumer’s hands that

may not normally use an iPod. Apple offers a service called Podcast, which is a series of digital

media files that is made available for download in iTunes. Podcasts would be a useful tool for

businesses to give employees tutorials, instructions, training, or communicate instructions to the

company globally.

Recommendation 2

Our second recommendation is that iPod should sponsor or hold more events that spread

the iPod name out into the community in a social way. Besides the events that Apple holds to

introduce the line updates, the iPod name isn’t seen in the event market. Sponsoring an event

such as a music festival, sports tournament etc., would give iPod a chance to hold giveaways or

hold product sampling so a buzz can be generated throughout the event.

Perception

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Perception can be defined as “a single unified awareness derived from sensory processes

while a stimulus is present” (Dictionary). However, it is also the first three steps in processing

information; exposure, attention, and interpretation. These three factors are extremely important

when advertisers are trying to make an exceptional first impression and maintaining that image.

In regards to Apple’s iPod, there are many distinct factors in which separate this product from

any others.

“Exposure occurs when a stimulus is placed within a person’s relevant environment and

comes within range of their sensory receptor nerves” (Hawkins, Mothersbaugh, & Best, 2007).

Consumers are involved with two types of exposure, selective and voluntary. When addressing

selective exposure, Apple places iPods in many different pop culture situations. IPod products

can be seen in popular media screenings such as The Simpsons, Stephen Colbert Report, Mad

TV, and Scary Movie 4 (iPod in Pop Culture). Because of this, Apple is exposing the iPod to a

specific target market, most likely consisting of young adults ranging from ages 18 to 30. This is

very beneficial because that demographic is very likely to be interested in buying iPods. For

voluntary exposure, Apple’s website practices a great method of permission based marketing.

They offer a “stay in touch” option when a customer is checking out online. This option provides

customers with news, updates, and special offers which allow them to be constantly updated

about the software that they have, as well as show them the new products coming out. This could

eventually lead to advocate customers who in return, are an extremely beneficial marketing

source.

Capturing the attention of consumers is one of the most important aspects of marketing.

Apple uses a multitude of stimulus factors when selling the iPod, it is able to acquire and

maintain the market’s attention. When a consumer is walking through Best Buy, iPod’s can

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easily be found in the music section, on display. Thoughtfully, many products that Apple tries to

sell which are related to the iPod are also positioned in the music section. This makes it easier for

customers who are making the high-involvement purchase of an iPod to see other low-

involvement products that compliment the iPod. Another way to attract customers to the iPod is

the way in which the commercial advertisement is presented. By using bright and arousing colors

such as orange, green, and red, viewers are stimulated and become interested in the commercial.

The movement in the commercials also aids in gaining attention. The dancers and music scream

high energy and immediately create awareness. One other element in the iPod commercial ads

has to do with the contrast of the colors and the product. There is usually one solid color as the

background and a black silhouette of the dancer. However, the iPod in their hand, along with the

headphones, are white and basically the only defined object in the advertisement. This allows the

ad to get the attention while the iPod becomes the main focus. Although these commercials

seem very basic, Apple does an extraordinary job at avoiding the Adaption level theory. By

having a variety of colors, music genres, and dancers, Apple is able to stay with the same basic

format but still provides consumers with a wide assortment of advertisements, steering clear of

adaption.

After capturing attention, the next step for marketers is to decide how they want

consumers to interpret their ads and product. Affectively, iPod commercials trigger upbeat, high

energy, and fun feelings and emotions. This allows the iPod to be placed into their evoked set, as

well as relating these good feelings to this specific product. One factor that is extremely

beneficial when selling the iPod is consumer’s tendency of expectation bias. People usually see

Apple as a high end, good quality, and well known brand due to other products that they sell. So

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when marketing the iPod, Apple makes sure to put their logo in and on all ads so consumers

relate the two.

Although ways to influence consumer’s perceptions of the iPod are addressed in the

situations above, Apple has other marketing strategies which help catapult them to the top. The

first has to do with brand extension. Apple has long been famous for their Mac computer;

however, the iPod debut has been just as successful, helping boost their brand image. Using the

trademark, “i”, Apple has successfully extended their iPod brand into a multitude of products.

From the original iPod came iPod minis, iPod shuffles, iPod nanos, and eventually the iTouch.

Accessories such as the iLounge and the iHome are other products complimenting the original

iPod. Each one of the extensions is now perceived with the same quality and image as the

original iPod. They have created more awareness and assurance for the Apple brand and the

signature “i”.

The second marketing strategy used by Apple is Co-Branding. Teaming up with the ever

famous Nike brand, the Nike+ was created. This product is a running shoe which uses the iPod

and iTunes to play appropriate paced music, as well as track a runner’s speed and distance (Nike,

2009). By doing this, the Apple iPod has placed their name with another high end, high quality

brand, giving them both more credibility and more exposure to a different target market. One

suggestion for the iPod would be to team up with an even bigger phenomenon, reality television.

The show “Biggest Loser” is a popular, prime time, reality series. If the iPod teamed up with this

show, or even 24 Hour Fitness, the sponsored gym in the show, they could market to so many

more people. By having iPod docks on the treadmills or something, Apple would influence their

product perception to a target market who is interested in losing weight or working out.

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The third strategy Apple used to influence consumer’s perceptions is through their

package design. The boxes that the iPods come in are very plain and clutter free. They have a

picture of the product on the outside of the box so customers know exactly what they are getting.

The sleek and sophisticated look impacts how consumers interpret the iPod. Consumers aren’t

confused with a bunch of technological terms; they have a simple picture of the product to

reduce confusion.

Learning, Memory, and Product Positioning

The impact that a vendor has on consumer’s learning and memory is vital in creating a

lasting impression. Because Apple has a strong brand image, they have been able to affect

consumers’ semantic memory. Their basic knowledge and feelings toward the Apple brand can

usually be related back to high quality electronics and their dedication to customer satisfaction.

When dealing with episodic memory, the memory of a sequence of events in which a person

participated” (Hawkins, Mothersbaugh, & Best, 2007), Apple is “committed to creating and

ensuring high standards of social responsibility, and [they] insist on business partners who share

[their] vision of a better world” (Apple, 2009). This ensures that customers are not only satisfied

with their purchase, but also see Apple as caring about social responsibility. According to

Consumer Behavior, the way in which information is stored in a consumer’s memory is much

more important than what the information stored is. Apple takes multiple approaches to ensure

that consumers store a positive and long lasting memory of their brand and products.

One approach used by Apple is creating relevant associations between their iPod ads and

concepts. This technique also referred to as a schema, uses product characteristics, usage

situation, episodes, and affective reactions to trigger feelings and memory through personal

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experience (Hawkins, Mothersbaugh, & Best, 2007). Apple creates ads involving running and

working out, partying and dancing, as well as different colors and styles so consumers can

associate their personal experiences with each different ad situation. For instance, the iPod

Shuffle has unique characteristics such as a petite size as well as a very simple play, pause, next

song format so consumers associate the use of this particular product as being beneficial when

running, going to the gym, or even doing yard work outside. Not only do the different usage

situations affect schematic memory, they also create the opportunity for dual coding. Dual

coding involves storing information in different ways, which in return results in more internal

pathways for retrieving information (Hawkins, Mothersbaugh, & Best, 2007). By having these

varied themed ads, Apple makes information storing and retrieval more effective. The Apple

iTouch is a new iPod which resembles the iPhone and offers customers with many different

usage opportunities. The advertising for the iTouch exemplifies these unique characteristics,

permitting customers to associate the iTouch with many different situations.

Another approach to positively affect consumers learning and memory is through script.

This deals with the “memory of how an action sequence should occur (Hawkins, Mothersbaugh,

& Best, 2007). Because the consumption of a product often involves information search,

acquiring the product, and in some way disposing of the product, Apple has taken into

consideration how consumers are affected by this. When ordering online, Apple offers free

shipping to receive products, as well as free recycling. This allows consumers to imagine the

ease of purchasing and disposing of an iPod, helping the storage of information to be positive.

The strength of learning is a very important component in effective marketing. Because

the iPod can be a high-involvement purchase, the information being learned often is considered

important. This makes the high-involvement learning more complete. The mood of the consumer

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plays a big role in how, if at all, they store information. Since Apple is a higher quality brand,

and the iPod is a high tech device, Apple should avoid playing iPod commercials during

children’s programs, as well as programs aimed at the elderly. I would recommend that iPods are

advertised on comical sitcoms or MTV and VH1 programs. This is because MTV and VH1

viewers are likely to be interested in music, making the iPod very appealing to them. Also, when

consumers watch enjoyable programs that put them in a good mood, they are more likely to

obtain the information from the iPod commercial, making it more effective. Another way Apple

increases the strength of learning is through repetition. By airing iPod commercials multiple

times, consumer’s initial learning of the product becomes much stronger. They do, however,

avoid advertising wear out by creating the same theme of commercials with different songs or

situations. This is very important so that consumers do not begin to stop paying attention to the

iPod commercials all around. One suggestion for Apple to aid in creating a strong initial learning

is to create more commercials with duel coding. For example, by airing a commercial for the

iTouch, Apple could show the different usage situations for the product and in result, when

retrieving information about the iPod, consumers will have multiple reference points for that one

specific product.

One issue that marketers face has to do with consumers and memory interference. Apple

has developed many marketing techniques to avoid this particular interference. The first way is

to strengthen the initial learning through the methods above. Secondly, Apple is very successful

in reducing similarity to competing ads. iPod ads are very simple yet equally attractive. They

avoid having too much visual activity as well information overload. This creates a distinct

difference between Apple and its competing brands, making it so that consumers do not have any

confusion or interference when thinking about the iPod. The third technique used to avoid

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interference is by providing external retrieval cues through the word “i”. By having this

trademark word before many of their electronic products, iPhone, iPod, iTouch, and iTunes,

consumers can automatically relate the iPod to other successful Apple brands, giving them

uniqueness and originality.

Brand Image and Product Positioning

The final aspects which Apple must consider when dealing with learning and memory are

brand image and product positioning. Apple has a very strong brand image. Because their other

products such as the Mac Book and the iPhone have been very successful for many years,

consumers relate the iPod to their other products, creating high brand equity. Having this sturdy

brand image is important in gaining and maintaining a competitive advantage. Product

positioning is also crucial in positively affecting consumer learning. If the iPod were to be placed

on a perceptual map, the landing spot is very unique compared to other music products. This is

because the iPod would fall under into many different positions. Since Apple offers low-storage,

smaller iPod shuffles as well as high-storage, larger iPods, consumers looking for different

product features from simplicity to price, usually can find one of the multiple iPod products to be

fitting for their needs.

Recommendation 3

One suggestion for the iPod would be to team up with an even bigger phenomenon,

reality television. The show “Biggest Loser” is a popular, prime time, reality series. If the iPod

teamed up with this show, or even 24 Hour Fitness, the sponsoring gym in the show, they could

market to so many more people. By having iPod decks on the treadmills, or even giving the

contestants an iPod at the beginning of the show to use during their workouts, Apple would

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influence consumers’ perceptions of a target market who is interested in losing weight or

working out.

Recommendation 4

A second suggestion we would recommend that iPods are advertised on comical sitcoms

or MTV and VH1 programs. This is because MTV and VH1 viewers are likely to be interested in

music, making the iPod very appealing to them. Also, when consumers watch enjoyable

programs that put them in a good mood, they are more likely to obtain the information from the

iPod commercial, making it more effective.

Recommendation 5

Our third suggestions we recommend for Apple would be to aid in creating a strong

initial learning to create more commercials with duel coding. For example, by airing a

commercial for the iTouch, Apple could show the different usage situations for the product and

in result, when retrieving information about the iPod, consumers will have multiple reference

points for that one specific product.

Ecommerce

When the internet first came about, it was seen to be weak, a waste of marketing time

and money, and eventually would be unsuccessful. However, these forecasts could not have been

anymore wrong. Today, the internet is not only thriving, it is dominating the market. This is why

e-marketing is essential in a company’s marketing success. There are two things which are

crucial in online marketing: website design and function, and perceived risk. First, I am going to

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analyze Apple’s website’s design and function in regards to their marketing strategy, using the

7C’s of website design: content, context, community, customization, communication,

connection, and commerce (Rayport and Jaworski, 2001). The content of the Apple website

includes the aesthetic feel as well as the actual functionality. The aesthetics of this website are

very simple and chic. Clean lines and simple colors create a very sophisticated and user friendly

feel. The actual function of Apple’s site makes it very easy for users to search for specific items

as well as brows through general categories. The context of this website is just as important as

the content. The context includes all of the graphics, offering mix, and overall content. Because

Apple offers a wide variety of iPod designs, colors, and styles, seeing a detailed picture of the

products is very important to consumers. Apple does a great job at keeping a minimal amount of

graphics on their webpage to avoid clutter, as well as give consumers satisfying pictures of

products offered. One other very important aspect of the website’s context is having current and

accurate content. By constantly updating the website with current sales, technology information,

and Apple’s RSS Feeds, consumers can be assured that no out-of-date information is being

released to them. Customization is a great way for online marketers to reach out to individual

needs and gain repeat customers. Customers are able to register an account with the website.

This allows Apple to tailor to the customer’s purchasing and browsing habits. Also, the shopping

cart option gives customers an organized and personal way to purchase products

The content, context, and customization of a website are very important in consumer

perception and attitude. However, community and communication play a vital role in

information search and building customer loyalty. The community of a website entails consumer

to consumer relationships and discussing topics involving Apple’s products, as well as the brand

as a whole. Because word-of-mouth has become a marketing tool in and of itself, a website’s

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community can sometimes make or break brand image. A great recommendation for the Apple

website would be to create a section where consumers can go and blog or chat about their

product experiences with other customers. Just as importantly, the communication between a

business and its consumers can be detrimental to the company if not made a top priority. Apple

offers a multitude of tech and customer support.

A website’s connection and commerce are the last pieces in creating a successful

website. In marketing, creating brand or product awareness seems to be half the battle. Just as an

ad in a magazine or a billboard on the side of the road creates awareness, banner ads and link-

in’s from other sites are a great marketing tool. Apple uses link-in’s from different sites such as

Google and Best Buy to help inform customers about their products and optimally gain click-

throughs. Once consumers click through to the Apple site, the commerce part becomes a huge

issue. Apple’s website has a privacy policy as well as guarantee payment security. They have

shipping and return policies and ways to track orders. All of these are essential in making online

purchases stress-free.

Recommendation 6The community of a website entails consumer to consumer relationships and discussing

topics involving Apple’s products, as well as the brand as a whole. Because word-of-mouth has

become a marketing tool in and of itself, a website’s community can sometimes make or break

brand image. A great recommendation for the Apple website would be to create a section where

consumers can go and blog or chat about their product experiences with other customers.

Latent and Manifest Motives

Apple iPod has created an iPod community, a community that fashion savvy consumers

crave to be a part of. Being part of this international craze of the black silhouette and white iPod

has become unstoppable. Many consumers will openly admit that having an iPod isn’t just to

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listen to music on the move, but to become a part of a trendy, young community. IPod is a need

for affiliation as owners can share and exchange music and playlists. IPod is a symbol of

achievement. IPod is considered a luxury technology brand, which motivates consumers to buy

one and be part of that luxurious lifestyle.

Many people’s manifest motives for buying an iPod are: small size, large storage

capacity, the 2-inch screen that is big and sharp enough to read text easily, the ability to sort

stored and labeled music by categories, and the rechargeable lithium battery (Knapp, 2003).

Along with all these great features, the iPod also is reportedly the lightest and smallest of the

hard-drive portable players. The iPod is very easy for any age to use; it is self explanatory and

has an accessible music database/store (I-Tunes). The reasons that I just mentioned are all

reasons that consumers are comfortable admitting as to why they buy the Apple iPod over the

other brands. The technological aspect of an iPod is an obvious reason why you would buy an

iPod and consumers will freely admit that. Apple does a good job of making sure that they are

always making improvements and new models as technology advances throughout the globe. I

think that by them having stores that consumers and visit along with an in store genius bar for

technological help, it sways consumers more towards the Apple brand.

The latent motives to buying an iPod are a little different. Consumers are either unaware

of their latent motives or are reluctant to admit them (Hawkins, Mothersbaugh, & Best, 2007).

Apple did a good job of identifying consumer’s latent motives and targeting them. “Apple was

the first company to realize that gizmo players are as much about personal expression as they are

about function” (Woyke, 2008). Companies that make most hand-held electronic devices never

paid attention to color. They thought that it wasn’t important and were almost always produced

in conservative colors. When consumers are shopping and see ten different black music players

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and one pink one, their eye is naturally drawn to the pink one. “That's because our emotional

reactions to color guide our shopping decisions, says Eiseman” (Wyoke, 2008). Many

consumers do not like to admit their reasons for buying an iPod. Consumes enjoy the iPod

because not only is it a flashy electronic toy, but they can express their personality and

individualism through the color they purchase. IPod has nine different colors, one for everyone.

IPods are the number one selling hand-held music playing device and everyone wants to be a

part of the craze. Most consumers don’t want to admit that they bought an iPod because of its

fashion statement; they always say it is because of its advanced technology and brand equity.

Owning an iPod isn’t just about technology convince, it is about making a statement and being

part of the Apple phenomenon.

Brand Equities and Personality

Over time Apple has created brand equity for itself. Apple has become a luxury

technology brand and is a must have in some consumers minds. Apple has created a name for

itself and is very popular among teens, young adults, and college campuses. Since iPod is

associated with Apple it has gotten to share in their brand equity. IPod was not the first digital

media player available, but it has effectively elevated itself in this market. Many consumers

automatically call any digital music player in the market an iPod, regardless of whether the

device is made by Apple. The name itself, which is simple and easy to remember, invokes a

sense of available technology. Therefore, the iPod name has come to create a category for itself.

The other half to an iPod is the computer software that is strongly associated with the

brand. When an iPod is purchased, an iTunes account must be instantly set up in order to use the

iPod to its full potential. ITunes can only be used with an iPod and no other digital music player.

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It is part of the Apple company now and very easy to use. You can buy music, search music, and

download music onto iTunes. Because of the close relationship that iPod and iTunes have

created, Apple decided to advertise them in the same ads. This type of marketing gives the

consumer the idea that the two products effectively go hand-in-hand.

Among the iPod’s key differentiators from other hand-held media players its capacity to

store vast numbers of songs is a huge perk. Apple was the first to introduce a media player

capable of holding over 1000 songs, which is original marketing loudly expressed. Prior to the

invention of the iPod many hand held devices could not even hold 100 songs (Caulfield, 2009).

Since the introduction of the Apple iPod many other media players have followed in offering

larger storage capacity. Although other media players have hit the market, Apple has kept its

leadership spot, still offering the largest storage capacity with every new model they make.

The iPod has a very strong and recognizable personality because it is such a unique product.

One of the main characteristic is posses is its innovation and creativity. The iPod brand prides

itself as being innovative at all times. The original iPod embodied an imaginative idea that

appealed favorable to music lovers alike. Following the original iPod, Apple continued its quest

and released more updated and innovative models many of which include video capabilities and

reduction in size (Graham, 2006). Apple’s ability to continuously produce top of the line media

players makes its names parallel with innovation. The iPods innovative personality is not just in

its technology, it is in its musical and cultural creativity. The iPod does an outstanding job of

advertising their brand and products as hip, fashionable, and cutting edge. Many of the iPods

color schemes and commercials label them as bold and energetic. The advertising choice of

loud, attention-grabbing dancing and fast paced music is in almost every marketing campaign.

All this dancing and bold colors gives the brand a sense of confidence and energy. This fits with

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the range of cultural images that have developed as the “typical” iPod user- from joggers to fast-

paced urban professionals to their biggest target, students.

In almost every commercial advertising iPod you will see the black silhouette and the

strings of the infamous white ear buds. Apple’s signature white ear bud headphones with the

long white wire come packaged along with every iPod (Apple, 2009). These white ear buds have

become linked to the iPod, anytime anyone is seen wearing the long white cord they are

automatically assumed to be using an iPod.

Attitudes and Influencing Attitudes

Apple has created a certain attitude initiator for their iPod. They have created advanced

products, attractive retail outlets, powerful advertisements, and a positive attitude toward their

brand. Apple’s cognitive component consists of a consumer’s believes about an object

(Hawkins, Mothersbaugh, & Best, 2007). Apple has positioned itself in young consumer’s

minds as a must. They have created a belief that the iPod is not just a necessity for all your

music needs, but as a fashion accessory. Most consumers beliefs about Apple are positive

beliefs associated with the brand. Because iPod has become the number one selling hand-held

media player that boosts peoples beliefs in itself. When consumers have a positive attitude about

your brand or product it boosts your sales.

The iPod is considered a fashion accessory. It expresses your personality and lets you

venture off into a world of music. IPod has positioned itself in the market as creating an

individual, having fun, being old, and independent. When you put in those white ear buds, you

can’t help but nod your head and lose yourself in the music. People feel very strong about their

iPod; they feel like the iPod is a necessity and can’t be left at home. Most of the people that we

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gave out survey (see appendix) to said that they love their iPod and can’t imagine not owning

one. People’s feelings towards the iPod get stronger and stronger as they use their iPod more. “I

love my iPod” implies positive affective reactions to specific aspects of the product, in

combination with feelings about other attributes, will determine the overall reaction to the brand

(Hawkins, Mothersbaugh, & Best, 2007).

The behavior component is the last part of the attitude model. A series of decisions to

purchase or not purchase the Apple iPod or to recommend it to friends would reflect the

behavioral component. Brand interest, as represented by tendencies to seek out the brand on

store shelves and search for brand information (Hawkins, Mothersbaugh, & Best, 2007).

Because consumers have heard so many positive things about the iPod and most of their friends

own one, they seek out the iPod at stores. They will go to a specific store or the Apple store

itself to obtain the product. When consumers see someone else carrying an iPod their attitude

towards them automatically changes and they see themselves as equals.

Consumer’s attitudes towards a product have a lot to do with their decision process to

purchase the item. If they have heard negative things about the product, they will have a

negative attitude towards the product. IPod has become so popular among consumers that they

have created a very positive attitude toward their product. Most consumers that took our survey

had very positive attitudes about the iPod.

Recommendation 7

Although celebrity endorsements were not discussed in the attitude section, celebrity

endorsements are part of consumer’s attitude toward the brand. Celebrity endorsements gain

attention toward the ad, can shift the consumers attitude toward the ad, gain trustworthiness, gain

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expertise, give them apparitional aspects, and a meaning to transfer (Hawkins, Mothersbaugh, &

Best, 2007). We think celebrity endorsements give the product creditability and like the book

said gains trustworthiness among consumers. Currently, Apple does not use any celebrity

endorsements to sell their iPod. In the book it says that 26% of respondents are more likely to

buy a product endorsed by Michael Jordan, one of the most trusted celebrity athletes. We know

that iPod sells are already very high from their unique advertising style and word of mouth, but

we believe that Apple could boost them even more if they had a credible celebrity endorse them.

IPods have become a universal necessity, not just among college students and teens, but among

celebrities and sports icons. We think that it would be beneficial to Apple to have a popular and

well known celebrity endorser to help boost the credibility and positive attitude toward the iPod.

Situational Influences

The consumer has many influences that will affect their purchasing decision. Not only do

they have to overcome both external and internal influences, but they must also deal with

situational influences. All consumers are affected by the events that occur, and they make their

decision based on both the marketing influence and situation. iPod has to take necessary

precautions to attempt to reduce the situations that have a negative impact on their marketing and

overall sales.

A precaution that Apple iPod takes to limit their situational influences is by having retail

outlets that only sell Apple products. These retail stores have employees that are there to explain

all the products and features to the consumers. Apple even has a genius bar where people can

bring back their Apple merchandise to get fixed or ask questions on how to use the product.

Consumers can also set up appointments to have a specialist meet them in the store and explain

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all the benefits, accessories, and attributes of the products. By having employees that know

everything about the products and are able to communicate to the consumer how to use the

product, it makes the decision process a lot easier on the consumer (Apple, 2009).

Another factor that can have a huge influence on a consumer’s decision process is the

physical surroundings of the retail store. Physical surroundings include sounds, lighting, aromas

and just the general atmosphere. Apple iPod makes sure their retail outlets are aesthetically

pleasing to their consumers. They have white walls so that their products stand out, especially

their iPods which are sold in vibrant colors. The store is bright and inviting. The employees wear

bright baby blue shirts in order to make them stand out. The greeter has a bright orange shirt and

will help the consumers find the specialist they need to answer their product questions (Apple,

2009). As for the layout of the store, it was recently changed in October of 2005 to better fit the

customer’s needs. Due to the increasing sales that the iPod was generating in the retail stores,

Apple moved the iPod to the front of the store by the entrance to make it the focus point for

when customers walk in. There is a large white oval iPod display counter that is positioned

outside the store so consumers are attracted to the product before they even get inside the store

(Store Layout Makeover, 2005).

Apple iPod is able to control the situational influences in their retail stores, but they are

not able to control the environment in other retail stores that sell their products like Best Buy or

Wal-Mart. These other retail stores sell a wide variety of electronics and other brands. Best Buy

sells Apple iPods along with its competition Zuni, Samsung, and Sony MP3 players (MP3

Players, 2009). These situational influences play a large role in the consumer decision process.

Now price and other factors are taken into account. Another factor that is changed by selling

iPods in other retail stores is the employees. These other retail stores may be more convenient for

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the shopper, but the employees will not know as much about iPods as the employees at Apple do.

They also might not sell all the accessories that the consumer is looking for due to the fact that

they only carry a limited amount of the Apple products (The Stores, 2008). The last problem that

Apple faces is that employees at other stores are not able to fix a product that is having

functioning problems.

The physical surroundings are also affected by selling iPods in other retail stores. They

will no longer stand out to the consumer as they did in Apple stores. Since other retail stores sells

many different brands, the Apple iPod will not be the center of attention, and it may be placed in

the back corner of the store instead of being displayed by the entrance where consumers are more

likely to see it (The Stores, 2008). The iPod will be displayed with other MP3 players that might

change the customer’s decision based on pricing factors or memory storage.

These factors caused Apple to open up their own retail stores in order to attract new

customers and retain their old customers. They wanted to have more control of their retail

environment. In Apples 2005 annual report, Apple stated, “By operating its own stores and

building them in desirable high traffic locations, the Company is able to better control the

customer retail experience and attract new customers” (The Stores, 2008). Today Apple has over

200 stores worldwide, including places like the United Kingdom, Japan, Australia, and

Switzerland. The majority of their stores are located all throughout the United States (Apple

Retail Store, 2009).

Consumer Decision Process and Problem Recognition

Once the consumer finds the physical surrounding that suites them the best, they have to

choose the product they want. Since Apple iPods are rather expensive, ranging anywhere in price

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from the iPod Shuffle costing $79 to the iPod Touch costing $399, and because there are so

many different alternative products available, the consumer is involved in an extended decision

making purchase (Shop iPod, 2009). With this kind of a purchase, the consumer usually will

conduct both an internal and external information search, and then they will evaluate all the

alternatives and their attributes before purchasing a product. Even after they purchase the

product, they will go through a post purchase process that will make them decide whether or not

they should keep the product.

Before the consumer is involved in the extended decision process, they will first have to

identify that they have a desired state that they want to fulfill. Consumers have to believe that

they will not be truly happy until they own an iPod. They have to recognize a problem and

resolve the problem by buying an iPod. Apple makes consumers feel like they need to own an

iPod by showing commercials where people are dancing and singing along to their music. Apple

has slogans that show the iPod is made for everyone by saying things like a little video for

everyone. Consumers make the iPod into what they want it to be. It is a storage device where

people can have all the music they like whenever they want it. The iPods have continued to

improve over the years. When iPods first came out, they were just devices that played music.

The first iPod only contained a 5GB hard drive when it was released in October 2001 (Hormby,

2007). Now there is the iPod Touch which allows its users to store and listen to music, browse

the internet, watch videos whether it is music or a full film, and even play games. It also includes

a high definition touch screen (Shop iPod, 2009)

Information Search

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Once the consumer has recognized that their desired state is not fulfilled and therefore

they have recognized a problem, they begin to search for information on what types of products

are in their evoked set and choose the one that best suits their needs. The consumer will first

compare different brands and decide whether or not an iPod or one of its competitor brands will

fulfill their desired state. All the brands that make MP3 players will be involved in the

consumer’s awareness set. After they have researched each brand, they will narrow their search

to the top three brands they want to choose their product from and this is considered their evoked

set. In order to narrow the search to find their evoked set, consumers will have to conduct both

internal and external searches. Their personal experiences, which involve whether or not they

have ever owned an iPod, will help to narrow the search dramatically, and then they will have to

acquire information through personal contacts and research. Once they have their evoked set, the

consumer then research’s each brand before they make their purchasing decision.

The iPod might control most of the market share, but there is a lot of competition in this

industry. Everyday companies create products to compete with one of the iPod products. iPod

came out with the new iPod Touch, that is equipped with a touch, high definition screen and Wi-

Fi so the operator can surf the internet to buy music or video’s online. The consumers can choose

what size hard drive they need since the Touch is equipped with an 8GB, 16GB, or a 32GB hard

drive. Prices for the iPod Touch range from $229.99 to $399.99 depending on what size hard

drive the consumer wants (Shop iPod, 2009). Samsung has invented the Samsung Yepp YP-P2

which is currently the iPod Touch’s biggest competition (Patterson, 2007). This MP3 player

includes a touch screen navigation system, Bluetooth capability, and an FM radio tuner. It plays

videos and has windows software so it allows the user more freedom of where they want to

download their music. The iTouch only can download music from iTunes. There are downsides

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to this player, it does not allow the user to surf the internet like the iPod Touch, its screen is not

high definition so the videos are not as clear, and the largest hard drive sold for this player is

8GB. Even though the Samsung Yepp YP-P2 is not as technologically equipped as the Touch, it

only costs $179.99 which is about $50 less than the 8GB iPod Touch, making it a fierce

competitor of the iPod (MP3 Players, 2009).

Another strong competitor for the iPod is the Sansa View which has a lot of the same

characaristics as the iPod Nano Chromatic. These two players even look the same. The Sansa

View can play videos, it has an FM tuner, and it comes with a 32GB hard drive. This device

costs $219 (MP3 Players, 2009). The Nano Chromatic also plays videos, comes in a variety of

different colors, has internet access and comes in either an 8GB or 16GB hard drive. The Nano

ranges in price from $149 to $199 (Shop iPod, 2009).

iPods biggest competitor is the Zune which compares to its iPod Classic. Both of these

players are bigger than most music playing devices due to the fact that they both have a 120GB

hard drives. The iPod Classic has a smaller screen than the Zune, but it has internet capability,

can be bought in either white or black, and it costs $249 (Shop iPod, 2009). The Zune has a

larger screen, an FM tuner, and internet capabilities. The Zune can be bought in either red or

black and it only costs $249.99 (MP3 Players, 2009). While iPod is better than the other products

discussed, its Classic is matched by the Zune, and iPod has to work to find a way to overshadow

the Zune.

Everyday the iPod has to deal with fierce competition and try to find ways to stay ahead

of their competitors. As long as iPod continues to develop and make inprovements to their

products, they will make the decision process very easy for their consumers, and make it so price

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does not matter as much as quality. Once the consumer has decided that they want an Apple

product, they then have to decide what product they want.

Alternative Evaluation and Selection

The information search helped the consumer determine that the iPod brand will satisfy

the consumer’s problem. Now the consumer has chosen the brand of product they will purchase

and begins to evaluate the criteria involved with the different iPods. The three major categories

of iPod consist of the iPod Touch, Nano, and Shuffle. Each of the different categories are

designed to meet different consumer needs. The difference in evaluative criteria for each

category will be discussed in greater detail.

The iPod Touch has different criteria than the iPod Classic, Nano or Shuffle. The iPod

Touch consists of two major criteria that distinguish it from the other iPods. The iPod Touch

incorporates a full touch screen navigation system. (Product Info , 2009) The navigation system

allows consumers to enter different settings on the iPod with the touch of a finger. Through the

different settings the consumer has the option to listen to music, play games, watch video, or surf

the web. (iPod , 2009) The second distinguishing characteristic that the iPod Touch has

incorporated is its wireless internet capabilities. Wireless internet allows the consumers to have

the internet in the palm of their hand. (Evans, 2007)

IPod Classics are vey bulky in design comparatively to the other iPods. Classics have

only one distinct advantage over other iPods which is their relatively high memory capacity. The

iPod Classic consists of one hundred and twenty gigabytes of memory. (Evans, 2007) This is

almost equivalent to some cheaper laptops, which have around one hundred and sixty gigabytes.

iPod Classics also have the ability to listen to music, play games and watch videos. (iPod , 2009)

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The iPod Nano has two distinct criteria that can be used to evaluate between the iPods.

The first characteristic is the sleek slim design of the Nano. This incorporates a two inch by one

inch screen that allows the consumers to view videos, play games, and listen to music. The

second characteristic is the large selection of different colors available. (iPod , 2009) Apple

incorporates nine different colors that the consumer can assess. These colors range from black

and gray and even blue and yellow.

iPod shuffles are the smallest iPod that Apple has created. This iPod has no screen only a

navigation wheel. (iPod , 2009)This particular iPod only allows the consumer to listen to music

unlike the others that allow for watching video and playing games. Since the Shuffle has no

screen, the consumer is not able to see which song is playing and who the artist is. The iPod

Shuffle is extremely small, simple, and easy to use.

Now that we understand the different criteria of each iPod, the consumer must evaluate

the importance of each criterion. Looking at the consumer’s decision process, it is apparent that

consumers evaluate iPods on the usage situation or how the product will be used. The usage

situation for the iPod Touch becomes apparent to consumers that are heavy internet users.

Consumers that choose to purchase the iPod Touch fell that the greatest advantage the Touch has

over the others is its ability to access the internet. This was especially true for business men

purchasing the iPod Touch, and the ease of checking their email. (Weintraub, 2007)

The iPod classic has a different situation usage than any other iPod. Consumers that fall

into this category have a large collection of video or music. Due to the large capacity that the

Classic has, it aligns well with music and video fans. (Patterson, 2007) Consumers that

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purchased iPod Classics seemed to fall under the category of excessive music or video buffs.

These consumers also seemed to travel a greater amount than any other group.

iPod Nano had two major buying groups that both have different situation usages. The

first is the middle aged consumers. These consumers have a need for a small music player that

would be comfortable and easy to hold while working out. The slim design was built especially

well for consumers that were looking to use this device while running or bike ride. The second

groups of consumers are teens, whose main focus was on the different colors. It was apparent

that teens that were looking to purchase iPod Nano’s had observed advertisements that

influenced the colors of the iPod, making the color become an important evaluative criteria

between the other iPods.

The Situation usage for the iPod Shuffle was exclusively for fitness purposes. Consumers

found that the iPod Shuffles main purpose was to listen to music, while involved in another

activity. (Murph, 2009) The major reason is that it doesn’t have a screen to allow for anything

other than listening to music. The small design of the Shuffle permits comfort while consumers

work out. It also comes in a multiple colors, though this was found to have no effect on the

consumer decision process.

Situation usage has shown to be a major criterion for the purchase of a particular iPod.

Though it is an important criterion, price has also shown to be a huge determining factor on

which iPod a consumer chooses. When looking at the price differences, the iPod Touch is the

most expensive. Then price distribution goes down from the Classic iPod to Nano, then to the

Shuffle.

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The evaluation and selection process allowed the consumer to found the distinguishing

characteristics between each iPod. They then narrowed their decision down by looking at two or

three iPods that would allow them the greatest use of the product. Finally the consumer uses a

rule that determines which evaluative criteria is of the highest importance. This could be the

price, size, function, and look. Some consumers felt that price was not a critical criterion and

would base their purchase decision on another factor. While others felt that all criterion were

important. Now the consumer has determine which iPod to purchase they must decide which

outlet and location to purchase the product.

Outlet Selection and Purchase

Outlet selection is the next step in the consumer decision process. Through this process

the consumer must decide if they want to buy the product online or from a physical store. Since

iPods are somewhat expensive in price, they tend to be of high involvement. High involvement

products are product that consumers take a substantial amount of time in evaluating its attributes.

If the product has high involvement it is more common for the consumer to want to tangibly

touch the product. An exception to this situation is if the customer is making a repeat purchase of

the same or similar product. IPods are considered high involvement product so we will focus

most of our attention on physical stores attributes.

IPods are sold in two major physical locations, the store brand or Apple store as well as

Best Buy retail store. When consumers make the decision to purchase an iPod they must decide

where they will make the purchase. There are several key factors that influence consumer to

decide which store to buy from. The first key factor that is involved in outlet selection is the

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store location. The second factor is the perceived risk, or the cost associated with choosing this

particular location. The last two key factors are atmospherics, as well as sales personal.

Store location is in essence the distance from the individual to the location of the

consumer good. Apple’s distribution of iPods is very spacious. Most Apple stores are located in

or around shopping malls. Their main distribution is through Best Buy retail stores. These two

distribution outlets can have a huge impact on the motivation an individual has to purchase the

product. If an outlet is too far from where the individual lives they may feel that it is not worth

traveling to that outlet to purchase the iPod. This leads to the second point, of what risks are

associated with choosing a particular outlet.

Deciding which outlet to purchase from can contain external costs. The first cost that is

considered is the social cost of choosing a particular outlet. Social costs are referred to as costs

looked upon as negative to the individual’s social group. For example, a person may feel less

worthy by buying their product from Best Buy instead of the Apple Store itself. The second cost

that is incorporated with outlet selection is financial costs. Financial cost is assigning extra cost

associated with driving to purchase the iPod. If the iPod is too far away, the consumer may

determine if the product is worth the extra money to drive to that location. Last is time cost,

which is the opportunity cost associated with the purchase. Is the time it takes to drive to the

location worth the value of the iPod? It is very important for Apple to understand that there are

extrinsic costs associated with outlet selection.

Another deciding factor that is related to outlet selection for iPods is the store

atmospherics. Atmospherics are the physical elements in the environment that creates different

mood responses for shoppers. (Hawkins, Mothersbaugh, & Best, 2007) Store atmospherics have

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a major impact on the decision of where a consumer will purchase the product. If the stores

atmospherics are not in line with the consumer, they will feel that the store’s image is less

quality. A great example of this is how brightly lighted the Apple stores are. The use of the

bright lighting emphasizes the Apple products to give them a sense of high quality. As well as

the lighting there is very little use of color throughout the store. The main focus of color appears

on the Apple products which accentuate the room drawing in all the attention. Atmospherics give

value to the product and also can be a deciding factor for consumers on choosing which location

to purchase their products from.

The final factor that contributes to outlet selection is the Sales Personnel. Sales personnel

contribute a huge amount when consumers are deciding which outlet to purchase from.

Consumers that are looking to purchase iPods that have little understanding of the product rely

heavily on the information that is presented by the sales associates. This works out well, because

iPods are high involvement products. It is also important for sales associate to get an

understanding of why the consumer is going to use the product. If a sales person recommends the

wrong iPod that won’t fit the consumers needs, there is a possibility the consumer will

experience post purchase dissonance, which will be discussed later in this paper.

Once a consumer has decided to make the purchase, they must decide which outlet to

purchase from. This could be either the Apple store or Best Buy. When consumers are deciding

which outlet to shop at, they will decide which outlet to choose from by the four factors which

are location, costs, atmospherics, and sales personal. If a consumer feels any of these factors are

not considered it may result in the customer going to another location to purchase the product.

Post purchase Processes, Customer Satisfaction

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After a purchase is made there are several emotional experiences the consumer can feel.

Since the consumer has alternatives that could have been chosen, the consumer sometimes

questions their final decision. The three factors that accommodate this experience are post-

purchase dissonance, use/nonuse, and evaluation of the product. If any of these factors do not

meet the consumers’ expectations the result will conclude with a negative perspective of the

product.

Once the consumer has made the purchase they can sometimes feel a sense of doubt or

anxiety. This is what markers refer to as post-purchase dissonance. Consumers usually

experience post-purchase dissonance when the product has high involvement. (Nadeem, 2007)

iPods are high involvement and each iPod has very different features. Consumers that have

chosen one iPod over another might feel doubt that another alternative would have better suited

their needs. In this case the consumer might feel they chose the wrong rules that were used to

evaluate which criteria were most important. If this occurs there is a high probability that the

purchaser will feel post-purchase dissonance.

After a purchase is made the product can fall into two categories of use or nonuse. Use

refers to the products usage for its intended purpose, where product nonuse is relatively the

opposite. The consumer determines which category the iPod falls into. If a consumer purchases

an iPod Shuffle to use while working out, then decides to stop working out, then the product will

descend into the nonuse category. If the product falls into the nonuse category it will likely have

negative referrals or will result in the consumer not purchasing similar items.

The final step in the consumer decision making processes is the evaluation of the product.

The only way to eliminate post-purchase dissonance is when the consumer uses the product and

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it conforms to their expectations. (Nadeem, 2007) When the consumer gets the iPod home and

begins to use the product they can decide if the product will fulfill their needs. If the iPod will

accomplish the needs of the product it is considered to be satisfactory. If it does not it is

considered non-satisfactory. The evaluation process is the most crucial aspect, because this will

determine if the customer will repurchase Apple products. If the consumer feels that the product

they purchased is non-satisfactory there will be a likely chance the consumer will look to

purchase from another company.

The consumer decision process is a very important process in understanding the steps that

consumers take to make the purchase of an Apple iPod. The post purchase segment of the

process is the determining factor if the consumer will purchase products from Apple or turn to a

competitor. Apple should use techniques to keep the consumers dissonance as low as possible

when purchasing a product. If the consumer feels high levels of dissonance the result will lead to

high expectations. When expectations are not met, the consumer considers the product to be

unsatisfactory leading to a loss of market share.

Recommendation 8

Research found that there is a huge market segment that could be reached by Apple.

According to MacWorld there are only six percent of iPod owners with a demographic of fifty

and older. (Loechner, 2005) Apple has very little marketing and promotion to the baby boomer

generation. Apple has focused almost all promotional attention on younger generations. When

watching an iPod commercial there seems to be younger actors that are promoting the different

iPods. The iPod Nano commercial shows a young boy dancing around listening to his iPod, with

bright vibrant lighting. Some commercials focused on games that would not appeal to older

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generations. These commercial have shown that Apple has an immense focus on younger

generations.

We feel that Apple iPod can bring both younger and older generations together without

affecting their brand image. They can persuade older consumers into believing the iPod is not

just a product for younger generations; but at the same time keep the credibility of the product

for the youth. We feel that Apple can focus the iPod Touch and Nano on younger generations

while focusing the iPod classic on older generations. The iPod Classic is not as tech savvy nor

does it incorporate all the colors that are attractive to the X and Y Generations. The iPod classic

incorporates all the functions that older generations need. It contains an 80 gigabit hard drive that

can store a large amount of music, which is beneficial for older consumers that have been

listening to music for over fifty years. The iPod Classic has the ability to play in the consumer’s

car as well as in their home. Through promotion of the different products we believe that Apple

can offer something for everyone.

Recommendation 9

During our research it was apparent that customers felt that associates selling Apple

products were not as knowledgeable as they had anticipated. When talking to Best Buy sales

associates we were informed that they were not fully aware of all the features that were present

in the latest iPods products. These sales associates had very little understanding of the new

products, and were encouraged to research the products on their own time. This is not beneficial

to Apple as we learned that sales associates can be an influence on which product the consumer

will purchase. If the consumer purchases a product from an unknowledgeable associate and is

provided the wrong information it can lead to post purchase dissonance.

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We recommend Apple communicates all the features of their new products to every sales

associate. They can do this by having an Apple expert give a presentation that informs associates

on all the features and functions the new iPods incorporate. This will be especially beneficial on

changes they have made from one generation to the next. Having the sales associates become

more knowledgeable will help reduce post purchase dissonance. This will also help consumers

better understand all the features that are available, allowing the consumer to have a better

understanding of how to evaluate each of the different iPods.

Recommendation 10

When it comes to technology, there are a lot of issues with operating the products.

Technology advances daily and most consumers have trouble keeping up with the current times.

Apple has a genius bar where its product specialists help consumers with the technological

difficulties that they have with their products. The genius bar explains to the consumer the proper

way to use their products and they fix products that are no longer functioning properly. This is

just one of the services Apple offers to its customers. They also have a system that allows

consumers to set up an appointment with a specialist who will meet with the consumer on a

certain day to help them pick out a product that will best fit their needs. All the consumer has to

do is to set up an appointment is to go onto the Apple website, choose a date, time, and product

that they want to learn more information about. Both of these services are free, unless there is a

part that is needed to fix the product, there might be a slight fee. These two services are very

beneficial to the consumer and they will help Apple retain their consumers. The problem with

these two services is the lack of awareness for these services. Most people have no idea that

these two benefits for the consumer exist.

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In order to solve this problem, we recommend that Apple should advertise these services

to its consumers. If more people are aware of these services, it would make the decision process

easier on the consumer. They would be willing to spend more money on a product that allows the

consumer to ask question anytime and get personalized feedback. These two services shows

consumers that Apple is customer focused and that this company cares about its consumers.

Apple should promote these services through commercials, brochures, Apple associates, and on

their website. These two services will not only help to generate repeat consumers, but it will also

attract new ones and promote brand loyalty.

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Reference Page

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Appendix

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Attitude Components and Manifestations

56%

44%

Gender

male Female

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89%

5%5%

Ethnicity

Cocusion Hispanic Asian

25%

40%

35%

Percentage of iPods purchased Touch Classic Nano

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2

3

4

5+

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Number of housholds

Number of homes

Number or iPods

Internet 20%

Friend 65%

Advertisement 10%

other 5%

Information search

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Apple Store Best Buy Apple Website Other

2

6

3

7

Purchase outlet

1

2

3

4+

0 1 2 3 4 5 6 7 8 9 10

Number of iPods purchased

Number of survey responses

Num

ber o

f iPo

ds p

urch

ased

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18%

13%

20%18%

33%

Determining Criteria

Price Function Color SizeStorage