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Consumer Behavior Assignment

by Ankita S (Sec A MBA)

"Apple unveils a cheaper iPhone"

1. Explain the rationale behind Apple's move to launch a low-cost iPhone.

In the early iPhone years, when a new iPhone model was launched the previous flagship smartphone simply faded away, then Apple shook things up by leaving previous models in the pipeline as cheaper alternatives to the top-of-the-line device. Its possible that Apple is simply doing what it does, and trying to offer devices that it believes the market wants and needs without consideration for saving a few bucks, or enticing a younger audience or the other reason couldnt be apple to launch a new iPhone is to tackle the market and to give tough competition to all other cheaper smartphones Mainly to Samsung (galaxy).

2. How will this impact the customer's perceptions about the Apple iphone as a premium luxury device?
That could have a big impact on the types of users it has . It has some of the worlds most loyal customers, extraordinary assets with which to grow its franchise and a cash reserve that is effectively unlimited. They feel now apple has become a common for all the income level people. They may feel that the Luxury feeling of the Brand is lost. It may also have some positive Impacts like lower income class people and teenagers can also have the experience of using an iPhone.

3. Discuss the pros and cons of this move.

o o o Competition Attract youngsters and Lower income audience Diversification

o o This experiment could lead to great risk for apple. It might lose it high class users who may now take apple as all other smartphone brands.

4. "In a world with a rapidly growing number of wealthy shoppers, luxury brands struggle to find a balance between increasing their consumer base and maintaining the exclusivity which is associated with luxury goods." Comment.

In a world with a rapidly growing number of wealthy shoppers, luxury brands struggle to find a balance between increasing their consumer base and maintaining the exclusivity which is associated with luxury goods
During the past decade, these markets, especially the BRICsBrazil, Russia, India and Chinaserved as the mostly dependable engines of global economic growth. And even during the economic crisis of 2008 and 2009, the total value of the brands from fast growing markets continued their steady climb. In 2006, the Brand Top 100 included only two fast growing market brands, from China. Less than a decade later, fast growing markets account for one-in-ve brands in the 2012 Top 100. During this period, the value of brands from fast growing markets in the Top 100 increased in value by 663 percent. But in the 2012 Brand Top 100 Most Valuable Global Brands the rate of brand value appreciation in the fast growing markets slowed. Some factors were country specic. The attempt to moderate ination contributed to the economic slowdown in India and Brazil, for example. But, overall, the BRIC deceleration illustrated the interdependence of nations in a global economy. China reduced demand for commodities from Brazil. And all the BRIC countries felt the decline in demand from nancially troubled countries in the Eurozone. Value declines for some brands, but new brands appear As the spotlight dimmed on some brands, at least temporarily, other brands emerged from the shadows. China Mobile, the countrys most valuable brand, and Chinas most valuable bank brand, ICBC, declined. At the same time, Fast Growing Markets Overview the Chinese oil and gas giant Sinopec appeared in the Top 100 for the rst time, as did Moutai, a leading brand of baijiu, Chinas traditional clear alcohol. Similarly, Petro bras, Brazils oil and gas company, declined and two Brazilian bank brands,Ita and Bradesco, fell below the Top 100 in value. But three Brazilian brandsthe beers Skol

and Brahma, and the cosmetic producer Naturaranked among the Top 15 brands in Brand Contribution, the measure of how brand itself, rather than nancials or other factors, contributes to earnings.Russias telecom MTS declined. But following a major effort to refresh the brand, the nancial institution Sberbank increased in value 25 percent, which placed it among the Brand Top 20 fastest risers. While the Indian bank ICICI declined, the Indian telecom Airtal appeared in the Brand Top 100 ranking for the rst time. The rst African brand, MTN, a South African telecom, debuted in the ranking. Two Chilean brands appeared for the rst time in the Brand ranking of brands in the retail category. An operator of department stores and specialty outlets, Flabella is one of South Americas largest retailers. Sod iMac, a Flabella company, is a consumer home improvement and B2B construction materials retailer.