The customers perceived value on the IPhone Essay

The customers perceived value on the IPhone - Essay Example the area, (Sillignakis, 2002) therefore the author now will attempt to identify and analyze customers’ perceived value of one specific type of smart phone -- the IPhone. 1.4. Research objectives The research project will therefore seek to explore and investigate the following: Identify customer perceived value on smart phones. Identify factors that influence the behaviour of mobile phone consumers. Examine the iPhone’s customer value offering. Provide an evaluation of the iPhone’s existing value proposition by comparing and contrasting it against a competitor i.e. Blackberry. 2. Literature review (30%) 2.1. What is customer value Based on Grewal et al, (1998, p.48) and Petric and Backman’s (2002, p.39) notion it can be argued that the iPhone’s CPV is conceptualised in two dimensions i.e. Acquisition and Transactional value. The suggestion is that customers are rational economic decision-makers who process information in order to maximize value (Shet h, 1979)vii; as such, customer value is principally conceptualised as a trade-off between the price of the iPhone and its quality (Holbrook, 2006)viii. Sheth et al (1991)’s â€Å"five Values† conceptual framework questions the economic assumption that consumers evaluate purchase and usage decisions with a calculator-like approach (Holbrook, 2006). Instead Holbrook and Hirschman (1982)ix proposed the experiential approach and introduced new concepts such as feelings, fantasies, and fun (Holbrook, 2006). Rather, consumer decision processes embrace complex motivation that includes both intrinsic and extrinsic values (Holbrook, 2005; 2006)x. Woodruff (1997)xi defines customer value as the emotional bond established between customer and producer after the customer has used a salient product or service produced by that... This research will begin with the explanation of what the customer value is. Based on Grewal et al, and Petric and Backman’s notion it can be argued that the iPhone’s CPV is conceptualised in two dimensions i.e. Acquisition and Transactional value. The suggestion is that customers are rational economic decision-makers who process information in order to maximize value; as such, customer value is principally conceptualised as a trade-off between the price of the iPhone and its quality. Sheth et al’s â€Å"five Values† conceptual framework questions the economic assumption that consumers evaluate purchase and usage decisions with a calculator-like approach. Instead Holbrook and Hirschman proposed the experiential approach and introduced new concepts such as feelings, fantasies, and fun. Rather, consumer decision processes embrace complex motivation that includes both intrinsic and extrinsic values. Woodruff defines customer value as the emotional bond establ ished between customer and producer after the customer has used a salient product or service produced by that supplier and found the product to provide an added value. In other words, customer value is determined by the customer rather than objectively determined by the seller. The consumer behaviour is "The study of individuals, groups, or organisations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.