IPhone Customer Satisfaction - Assignment Example

4/27 Table of Contents Introduction 3 1 The background 3 2 Positioning service 3 3 Aims and objectives 3 4 Rationale 4 2.Literature Review 5 3. Research Methods 5 3.1 Use of Questionnaire 5 3.2 Secondary method 6 3.3 Ethical consideration 6 4. Findings 7 5. Discussion and Analysis 21 6. Conclusions 22 7. Recommendations 22 8. Reflection 23 References 25 Appendix 1 29 1. Introduction 1.1 The background Apple launched the first generation iPhone on June 29, 2007. The iPhone was released into the market with distinctive and attractive features backed up by the differentiated operating system, which provided to give them a competitive edge with the brand. Even though Apple is the leading brands in the Smartphone segment, it is currently faced with intense competition because it is operating on a global platform. However, the company has taken into consideration customers’ needs and preferences by designing products in such a way that they appeal to the customers and hence persuades them to purchase the product (Titlow, 2013). In addition, the Apple has constantly used its high innovativeness to deliver value to its customers through highly innovative products like iPhone, thereby, building long-term relationships with their customer base. 1.2 Positioning of customer services According to Dorling (2015), a company needs to identify and satisfy their customer’s needs as well as exceed their expectation. With this regard, Apple has been fully committed in consistently delivering high standards of service to their customers with an aim of gaining and retaining customer loyalty. Due to immense global competition in the Smartphone segment, Apple positioned the customer services by designing iPhone in line with required needs and preferences thus attracting customers of all ages. According to Muzhani ( 2014), Apple developed the brand with more advanced features in the forthcoming years for them to attain customer loyalty. 1.3 The Aim and Objectives Customer satisfaction should be taken into account by any company when designing a product. The research project is an analysis of Customer Satisfaction Level of Functions and Customer Services of iPhone. The main aim of the project is the analysis of the impact or effect of customer service on enhancing customer loyalty. The research study lays major emphasis on the identification of the sentiments of customers that are associated with iPhone features such as the design and ease of use that makes it distinctive and highly attractive. The objectives of this research are: To examine the customers’ satisfaction level in regards to functions and customer service iPhone To identify the effectiveness and responsiveness of customer service of iPhone (Apple) To assess the iPhone’s customer loyalty by evaluating their repurchase intention 1.4 Rationale The purpose for research into iPhone customer satisfaction of service and functions is to investigate why has it fallen from the number one ranking within the USA and UK market place. This research is crucial to the academic field as it will provide relevant information to the future researchers related to the satisfaction level of customers with iPhone. The research will help in providing information on the impact of customer services of iPhone on enhancing customer loyalty, thereby, enabling companies to be able to enhance the customers’ satisfaction level by designing and developing highly innovative and attractive products. In addition, this research study will help in identifying any other key factor responsible for the decline and if the causes are from the macro or micro environments or if they are frequent. This will help Apple and other companies in coming up with strategies to tackle such declines. 2. Literature Review Customer satisfaction is crucial in creating customer loyalty. It is therefore necessary for any Apple as well as any other company to make their customer happy so as to build their satisfaction (Mao, 2010, p. 13). It has been advocate world-wide over the recent decades due to stiff competition arising from globalization. Brooks and Dunn (2011, p. 14), found that Apple customers are greatly satisfied with iPhone as well as its functions because the company has been successful in designing the product after carrying out an in-depth market analysis. As a result, Apple succeeded in launching a distinctive and highly attractive product, which has provided a sustainable competitive advantage to the brand. In order to influence the buying behaviour of their customers, the company has to deliver exceptional customer service experience, which will enhance its brand image in the specific industry segment. Even though Apple has succeeded in this, Hodgkins (2014) maintains that the company is currently losing ground in their customer satisfaction department due to intense competition, making it to fall behind Sony, Microsoft, and Samsung. According to Hodgkins (2014) the main reason for the loss in ground by Apple is due to the lack of a solid retail chief. Even though Apple has been known for quite some time for its extreme brand loyalty as well as stellar customer service experience, a recent Forrester Research customer experience survey indicates that it is no longer the leader in this area (Hodgkins, 2014). However, Apple must withstand this intense competition by rethinking its customer service so as to deliver an excellent customer service experience (Ma, 2014, p. 213). Delivery of quality service is vital for Apple because it helps in enhancing its brand image in the Smartphone industry segment. According to Gallo (2012), the store representatives of any given company are required to respond immediately to the queries of customers and to resolve such queries in order to attract and retain customers. Apple has succeeded in imparting appropriate training to its employees in a bid to deal with their customers more effectively and appropriately. According to Gallo (2012), Apple uses an acronym “APPLE” which is five cute letters representing the five fundamental steps that employees are trained to walk customers. Gallo (2012) maintains that selling is a science that entails (A)pproach, (P)probe, (P)resent, (L)isten, (E)nd.” (APPLE). When employees walk a customer through the five steps, they should feel welcomed, happy, empowered and eager to return by the last step, thereby, aiding in building customer loyalty. Apple has been able to constantly design highly innovative product in an appealing manner thus persuading customers to purchase such products. This has aided it in taking away the major share of the market from the competitors. By increasing emphasis on customer services, the Company has ensured customer satisfaction as highly satisfied customers are more likely to re-purchase the product. 3. Research Methods The research methods that have been adopted for this project include the use of questionnaires and the secondary method in the form of literature review as well as face to face interview with the potential/current customers and potential clients. 3.1 Use of questionnaires Questionnaire is a structured interview; it embraces a combination of close-ended and open-ended questions (Hannah, 2007). Being the first stage of the primary research, structured questionnaires were sent to current and potential customers of Apple to have a general understanding of Customer Satisfaction Level of iPhone Customer Service and to have an insight into the factors that cause the decline in Apple’s customer services. 3.2 Secondary method Secondary data collection method is defined by Ridley (2012) as the views and opinions of other research scholars and authors. This includes research in the form of literature review. In the context of this research, several literary sources have been explored in order to gather relevant information regarding the popularity of iPhone and the strategies that it has adopted in order to gain an edge over other players (Ridley 2012). On the other hand, Kothari (2004) identifies other data in the form of analyses conducted on statistical surveys and the conclusions of a research article that has already been processed by another. 3.3 Ethical consideration According to CTSI (2014), an investigator has an obligation of ensuring that the subjects receive a full disclosure of the nature of the study, the risks, benefits and alternatives, as well as an extended opportunity to ask questions. As a result, the research took into account ethical considerations towards the respondents as well as the company researched. This was made evident in the questionnaire within the opening paragraph, to ensure the individual was immediately aware of the considerations and that the company was not harmed in any way with regards to the research undertaken. 4. Findings From the questionnaires, the findings were as follows. Q.1. Gender Figure 4.1 From the above figure, it was evident that female respondents at 53%were many, followed by Male at 43%and then other at 1% while Rather Not Say was zero. The questionnaires were completed by both genders. Q.2 Age Range These figures show age range of the individuals who completed the questionnaire. Both male and female scored highly in age group 18 – 24 according to figure 4.2. Figure 4.2 Q.3. Do you own an iPhone Figure 4.3 According to figure 4.3, 78% of the respondents own an iPhone while 22% do not. The main reason why close to a quarter of the respondents do not own an iPhone is that it is very much expensive (Yarow, 2014) Q.4 Reason for not owning an iPhone From the 22% of respondents that do not own an iPhone, it is evident that the main reason for them not owning an iPhone is that it is very expensive while the least reason is that it is non-attractive. More than half the respondents answered they are happy with their current phone and feel no need to change to iPhone. Fox 5 (2015) reported that iPhone is the most popular Smartphone in the world even though Android sales of Google are higher than those of Apple sales. Figure 4.4 Q.5 Main attraction When focusing on the main reasons of attraction to iPhones, the brand and customer service are the two highest points in regards to respondents, followed by popularity and functions. Fig. 5 Q.6 Easy to use Out of the 78 who answered, the majority answered that iPhone was easy to use. It is very hard to stand in the way of Apple because iPhone customers cherish such devices (Reed, 2013). Fig. 6 Q.7 Recent contact with Customer Support of Apple From the table high percentage of customers prefer internet service compared to the telephone and dealers, while the Second preference to customer service is to communicate in person. Bmower, (2014) maintains that customers prefer online chat because it very efficient and provides immediacy of the experience” Fig. 7 Q.8 Time waiting From the chat, it is evident that Telephone provides the fastest service with less than 3 mints reply. N/B. Colour correlates with Chart 7 above. * Internet option from Q.7 is an instant booking so it is not included in Q.8 chart Fig. 8 Colour correlates with Chart 7 above for both question 9 and 10. Q.9 Resolved timeframe: 4-6 days to determine problem to the company and the highly effective way is to visit in person. Telephone and internet takes the second. Fig. 9 Q.10. Amount of contact: Efficient response shows that Apple do not need their customers to repeat their requirement more than twice if they reach the company in person. However, communication via dealers telephone shows less efficient response compared to the internet since Apple encourage the internet communication and find it more easy and comfort. Fig. 10 Q.11. Satisfaction level of C.S. and Q.12 Recommendation: From the results, More than 50% of the respondents are satisfied with the Apple customer service and would definitely recommend to others. 20% of the users are very satisfied and that show the professionalism that this company force to reach a total of 70% of satisfaction. Average and unsatisfied respondents are not very far from not to recommend it to others. Apple is widely recognized for its extreme brand loyalty and stellar customer service (MacRumours, 2014) Fig. 11 Fig. 12 Q.13 Re- purchase 70% of IPhone users are very satisfied with the current device and are very pleased to repurchase a new version on the iPhone. According to Richter, many users of iPhone tend to stick with it when buying another phone. Fig. 13 Q.14 Issues Resolved Current issues that resolve to the current customers have a positive relationship to the satisfaction with the repurchase. Fig. 14 Q.15 Are you satisfied with the product features From the chart 65% of IPhone users are very satisfied with the product features. Fig. 15 Q.16. What are you most satisfied with? From the chart, 50% of IPhone users have positive experience of sales and purchase. The crucial means of communicating with customers is usually the design, tactile feel and visual look of a device and not basic use and function (du Gay et al, 1997:65). This is why many users of iPhone have positive experience of purchase. Fig. 16 Q.17 How do you compare iPhone brands to other brands? From the results, 67% of the respondents noted that iPhone compares much better to the brands because it has same or better features compared to other brands. However, only 3% of other users find that other brands have good features that can compete IPhone and only 1% stated that it is much worse. Even though Muller, (2015) states that iPhones are great devices, they are very expensive for many customers. Fig. 17 5. Discussion and Analysis In order to attain customer satisfaction, a firm need to deliver excellent customer service to the specific target market segment as with the case of Apple whereby its customers are highly satisfied with iPhone which influences them to make repeat purchase. The results of the questionnaires revealed that both gender and age range of individuals who completed the questionnaires is the youth simply because iPhone is viewed as an essential and integral part of young peoples in today’s demographic as both fashionable and a status symbol (Green, 2003, p.11). This is shown by age group 18 – 24 that scored highly with regards to both male and female. Balk (2009), also stated that “we live in a culture where young people are outfitted with iPhones.” The main findings created from the respondents mirrored that clients are exceptionally fulfilled by the customer service of iPhone. Literature review support this fact that iPhone (Apple) has laid expanded accentuation on the customer service viewpoint with a specific end goal of delighting the customers (Ma, 2014). Customer service has a significant effect on achieving the consumer loyalty which thusly impacts the buyer behaviour. Subsequently, client grievances and inquiries are handled viably by the store representatives. The findings of the information mirror that clients have a tendency to re-buy iPhone as the distinctive and advanced features of the brand often compel them to make repeat purchases. This statement has been backed by the literature review wherein it has been expressed that iPhone has embraced differential strategies so as to gain a larger share of the market. 6. Conclusions In the light of the research data, facts and findings which are analysed in quantifiable terms, it is evident that customer satisfaction is very crucial for an organization’s better performance. Customers are highly satisfied with excellent customer service of any newly designed and produced brand, thereby, aiding in the development of customer loyalty. It is evident that the main attributes that attract the masses towards the Apple’s iPhone brand is the customer service, the brand popularity, functions as well as the appearance of the product. Compared to other competitive brands in the Smartphone segment, customers will continue to prefer iPhone as it brings innovation to the product. The iPhone brand offers very attractive features in the product, which attract the attention, as well as deliver a satisfactory experience. As the company has given adequate training to its store representatives, queries of customers are resolved very quickly, which mostly provides complete satisfaction to customers. As a result, the waiting time of customers is reduced, which makes the brand more attractive. It has been reflected that customers are completely satisfied with iPhone as it brings constant innovations in the product and delivers excellent customer service experience. 7. Recommendations Apple need to make significant attempts that are aimed at improving their stance within the mobile customer services in order to regain their competitive advantage over their three main competitors. Because the questionnaire were limited to only 100 respondents in a geographical area spanning a 25 mile radius, Apple should carry our further analysis on a wider geographical region to allow a significant contribution of data to be analysed in-depth, which will further identify issues. Apple should increase access to the service centres so as to provide more convenience to the iPhone users. This will aid in allowing enough time allowances to focus on face to face problems, as this seems to be the preferred method so issues can be resolved efficiently and effectively. 8. Reflection We took less time in getting to know each other because our group members are aware of each other since we take the same course. This helped us to select the project topic easily as our group members are passionate about human resources. Since Apple is based in the US, we were not able to directly contact them thus we used secondary data. By the time we started our research, we were not able to send questionnaires to a wide geographical area due to limited resources. We only had to send 100 questionnaires to individuals within the vicinity. Having been given a full disclosure of the nature of the study, the risks, benefits and alternatives, as well as an increased chance or opportunity to ask questions, the respondents were helpful in answering all out questions. During the secondary research, I did research for iPhone customer satisfaction on recent publications and found sufficient information. This really helped in providing an insight into the analysis of the impact of customer service on enhancing customer loyalty, in so doing, enhancing the satisfaction level of customers. Since we only designed questionnaires only in English, we took less time. the questionnaires were designed in a way that was easy to answer by the respondents since the questions were simple and direct. Having conducted a thorough research, we are hopeful that in can provide an insight into the customer satisfaction level of functions and customer services of iPhone. This real-life project can greatly help Apple in enhancing the customers’ satisfaction level by designing and developing highly innovative and attractive products. However, the company need to carry out a more in-depth analysis as our research was limited to only 100 respondents in a geographical area spanning a 25 mile radius. However, the research provided a great learning experience and I really enjoyed it as it provided me with a lot of vital information. References Agbor, J.M. (2011) The Relationship between Customer Satisfaction and Service Quality: a study of three Service sectors in Umeå. [Online]. Available at: http://umu.diva-portal.org/smash/get/diva2:448657/FULLTEXT02.pdf [Accessed on: 12 February 2015]. Balk, A. (2209) [Insert New Techonology Here] Is Destroying [Insert Generation Younger Than Your Own]. Available at: http://www.theawl.com/2009/08/insert-new-techonology-here-is-destroying-insert-generation-younger-than-your-own (Accessed: 10 February 2015). Barlow, J. (2010) Branded Customer Service: The New Competitive Edge. Bmower (2014) ‘3 Key Benefits of Live Chat for Customer Service’, vivocha, 10 January. Available at: http://www.vivocha.com/2014/01/3-key-benefits-of-live-chat-for-customer-service/ (Accessed: 20 February 2015). Brooks, L.J., and Dunn, P. 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Appendix 1 Questionnaire We are completing a research project aiming at analysing the impact of customer service on enhancing customer loyalty, thereby, enhancing the customers’ satisfaction level. Customer service has a profound impact on attaining the customer satisfaction which in turn influences the buyer behaviour. Q.1. Gender: M F Q.2. What is your Age range: 18-24 25-30 31-44 45- 60 60+ Q.3. Do you own an iPhone: (Please circle) Yes No Q.4. In case your answer is no for the above question, what is the reason? A. No Favourable functions B. Non-attractive C. Bad customer service D. Other apple device E. Current phone ok F. Expensive Q.5. In case of Yes in Q.3, what is your main attraction to iPhone? A. Brand B. Functions C. appearance D. Popularity E. Customer service Q.6. Is it easy to use iPhone? Yes No No response non iPhone users Q.7. Your recent contact with C.S.A was via? a) in person b) Telephone c) Internet d) Dealer Q.8. How long does it take to wait for the above options to get served? a) Over 10 mins b) 5-10 mins c) 3-5 mins d) within 3 mins Q.9. How long does it take to resolved a problem for each option? Q.10. what is the amount of contact for each option? Q.11. what is your satisfaction level with customer service of Apple? Very unsatisfied Unsatisfied Average Satisfied Very satisfied Q.12. will you recommend iPhone to others? Definitely Probably Not sure Probably not Definitely not Q.13. Will you repurchase iPhone? Definitely Probably Not sure Probably not Definitely not Q. 14. Were current issues resolved to your satisfaction? Yes No Q.15. How satisfied are you with the product features? Very unsatisfied Unsatisfied Average Satisfied Very satisfied Void non users Q. 16. What offers you the most satisfaction regarding the product? Overall quality Value Purchase experience After sales 1st time installation Other Q. 17. How is iPhone compared to other brands of Smartphone? Much better Better Same Worse Much Worse. Thank you for your time! Read More