You are on page 1of 3

Samsung contributes near to 25% of the world market ,apple with 18% and follow

Why people are buying more Samsung Smartphones than Apple? Price??? iPhone
4, at $199 for 16GB and $299 for 32GB Galaxy S the Samsung Vibrant for $199
Samsung's rise has been driven by a blend of elegant hardware designs
(Functional Value) popular Android services, (Social Value) memorable subbrands and (Emotional Value) extensive global distribution (Functional Value)
Source: BBC(October 28, 2011) Identifying Customer Perceived Value of Apple
Smartphone (iPhone) Even though Apples Smartphone market share felt in the
last quarter, many sources revealed that it is due to the delaying in launching
iPhone 5 (BBC, October 28, 2011). From the data above, it can be concluded that
iPhone has a high customer perceived value over the last three two years (2009 to
2010). Customer Perceived value of iPhone can be analysed using Seth, Newman
and Grosss consumption value model Sheth, Newman and Gross (1991): Model of
Consumption Values Source: Sheth et al (1991, p.160) FUNCTIONAL VALUE The
perceived utility acquired from an alternatives capacity for functional, utilitarian, or
physical performance. An alternative acquires functional value through the
possession of salient functional, utilitarian, or physical attributes (reliability,
durability, and price). Functional value is measured on a profile of choice
attributes. Source: Sheth et al (1991, p.160) Social Value The perceived utility
acquired from an alternatives association with one or more specific social groups.
An alternative acquires social value through association with positively or negatively
stereotyped demographic, socioeconomic, and cultural-ethnic groups. Social value

is measured on a profile of choice imagery. Emotional Value The perceived utility

acquired from an alternatives capacity to arouse feelings or affective states. An
alternative acquires emotional value when associated with specific feelings or when
precipitating or perpetuating those feelings. Emotional value is measured on a
profile of feelings associated with the alternative. Emotional Value The perceived
utility acquired from an alternatives capacity to arouse curiosity, pro-vide novelty,
and/or satisfy a desire for knowledge. An alternative acquires epistemic value by
questionnaire items referring to curiosity, novelty, and knowledge. Conditional Value
The perceived utility acquired by an alternative as the result of the specific
situation or set of circumstances facing the choice maker. An alternative acquires
conditional value in the presence of antecedent physical or social contingencies that
enhance its functional or social value. Conditional value is measured on a profile
of choice contingencies. Customer Perceived Value: Smartphone (iPhone)
Functional Value A defining functional value of the smart phone offering is born
from the integration of many utilitarian attributes into a single, mobile, alwaysavailable device (Bodker et al, n.d). constant access to the internet, search, and
email; coupled with telephony and text messaging satisfy many modern ICT needs
The ability to navigate unfamiliar areas with GPS adds value The MP3 player,
games, and other entertainment features plus productivity tools like the calendar
and address books, add additional functional value to the device The ability to
download additional games and productivity tools from a big software library further
enhances the user experience Source: Bodker et al( n.d). Customer Perceived Value:
Smartphone (iPhone) Social Value Significant social value is embedded and
conveyed through the iPhone itself. It can generate conversations as people ask
questions and strike up conversations. It serves as an icebreaker for users to begin
talking to other users, thereby facilitating social interaction and forming new
relationships The iPhone provides social value by helping the owner convey an
image to others in a way similar to many fashion items. it is a type of personal
branding that sends a message to affect friendships and relationships. Source:
Bodker et al( n.d). Customer Perceived Value: Smartphone (iPhone) Emotional
Value emotional need to be connected to others, similar to Maslows (Maslow,
1946) need of belonging Constant connectivity helps fulfill this emotional need.
For example, access to social networks and Twitter enables people to maintain their
social relationships in different ways than other types of communication.
Communication features such as telephone and SMS provide a connection to family
and friends. Having multiple, different communication media make it easy to
maintain relationships with people with whom he might otherwise lose contact
Aside from facilitating a sense of belonging, a smart phones integrated
technologies provide tools for altering ones emotional state. Many participants
use the music player because music can change their mood. Others use specific
add-on applications. In addition to the emotion-enabling features, the device itself
can trigger emotions through iPhone design (beautiful and esthetic feelings) stores
photo albums on the phone, describes the familiar feeling enabled by iPhone
making customer feel secure. Source: Bodker et al( n.d). Customer Perceived Value:
Smartphone (iPhone) Episteme tic Value The iPhone satisfied epistemic value in
multiple ways. First, the artifact itself inspires curiosity. People like exploring new
technology, learning how to use a new device, and experiencing a GUI. As such, the

device itself provides novelty value (cool factor) and appeals to those seeking to
satisfy their curiosity iPhone derives epistemic value is through the availability of
downloadable applications and various media. Thousands of programs are available
for download, many of which are free. Access to websites like YouTube also provide
a constant stream of novelty. Finally, the integration of a standard web browser
enables users to find whatever information they seek. This helps satisfy curiosity
and cure confusion. Source: Bodker et al( n.d). Customer Perceived Value:
Smartphone (iPhone) the conditional preference for the iPhone was based on
convenience-related measures. Much of the iPhones value was conditional
depending upon the availability of a laptop computer with an internet connection
When time was limited, a computers long boot up time added conditional value to
the iPhone, which was ready for use. When a Wi-Fi or landline internet connection
was unavailable, the conditional value of the smart phone rose dramatically
because it was the only alternative None saw much value in typing email on the
iPhone unless a computer was unavailable, the message could be conveyed in a few
words, and it must be sent immediately Source: Bodker et al( n.d). Conclusion
Many of the utilitarian attributes that resonate most strongly with users gain much
of their value from the other consumption values: social, emotional, epistemic, and