Republic of the Philippines

BATANGAS STATE UNIVERSITY ROSARIO

Brgy. Namunga, Rosario,Batangas

COLLEGE OF ACCOUNTANCY, BUSINESS, ECONOMICS AND

INTERNATIONAL HOSPITALITY MANAGEMENT
Bachelor of Science in Business Administration

MKT 102- CONSUMER BEHAVIOR

CASE ANALYSIS

Chapter 7 – Memory and Retrieval

REMEMBER THE APPLE

Thanks to a steady stream of innovative products combining user-friendly technology and

elegant design, Apple’s bite of the consumer electronics market has been getting a little larger
year by year. Once it hit the iPod sales jackpot, however, Apple’s brand took a major leap
forward in public awareness and cachet—a leap that has also boosted sales of Apple’s other
products.

Apple has a history of zigging when the rest of the industry is zagging. The Apple brand is fun,
unique, and memorable because it is such a departure from brands that sound serious and
corporate. The company’s original name, Apple Computer (changed to Apple a few years ago),
helped reinforce the link between the seemingly whimsical “apple” and the concept of
computers. Apple’s Macintosh computer has always stood out because it looks different from
other personal computers and relies on software that even novices can learn. Like every Apple
product, the Mac and its packaging sport the company logo, an apple with one bite taken out of
it.

Then came the iPod. Apple didn’t invent digital music devices, but it did take them to a new
level of style and convenience with the iPod, which debuted in 2001. Backed by music-driven
advertising, the player with the white ear buds immediately became the product of choice for
many consumers. Newer models such as the iPod Nano and the iPod Touch have continued the
tradition of adding new features and updating the styling to make the product even more
irresistible to current customers and to new buyers alike. Today Apple sells $8 billion worth of
iPods every year and earns millions from its iTunes online store, where customers can buy songs,
movies, TV shows, and other downloadable entertainment products.
And then came the iPhone, a new combination of mobile phone, iPod, and wireless Internet/e-
mail appliance with a large, colorful touch screen for one finger operation and accessories like
the iPod’s well known white ear buds. Prompted by extensive publicity and introductory ads
touting the sleek phone’s smart features and trendy look, buyers lined up for days to get the first
iPhones in 2007. Within months, Apple began a second round of advertising to encourage non-
iPhone customers to switch from their current phones. Rather than focusing exclusively on the
product, this campaign showcased customers talking about how they use their iPhones.
The iPhone was an instant success: Apple sold 4 million units in the product’s fi rst six months
and, with a price cut, sales have continued to be strong. But something else happened during
those six months that Apple had not anticipated. With so many shoppers browsing Apple stores
in search of iPhones and iPods, the company began to sell many more Macintosh computers.
Although Apple’s share of the worldwide personal computer market remains below 5 percent, it
has room to grow as the Mac momentum builds.
Since then, Apple has expanded Macintosh distribution and stepped up advertising in all media
to make the most of the high awareness and popularity of its brand. One campaign, titled simply
“Get a Mac,” targeted consumers who use non-Mac computers by presenting humorous
commercials about the features that make the Mac easier to use than competing products. This
campaign also ran in the United Kingdom and Japan, with local actors and content customized
for each culture. As with every Apple ad, these Mac ads closed with a shot of the apple logo.
Both sales revenue and profits are rising as Apple bites more deeply into the global market for
personal computers, mobile phones, digital music players, and other electronics. The key to
building demand across product categories is to help consumers remember the Apple.

Case Questions
1. Use the concepts of trace strength and spreading of activation to explain why the Apple brand
is memorable. What does Apple do to strengthen trace strength, and why is doing this important
for the company‘s long-term success?
2. How has the iPod’s prototypicality affected the Apple brand?
3. Why would Apple change to new advertising right after the introduction of the iPhone?
Explain, using your knowledge of memory and retrieval.