CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 1

Customer’s Preferences through the Strategies of Apple and Samsung

in Smart Phone Industry

A Research Presented to the Faculty of

Senior High School of St. Mary’s College of Meycauayan

In Partial Fulfilment as a Requirement in

Inquiries, Investigation and Immersion

By:

Basillo, Cinderella

Cacho, Bianca Divine

Digueno, Timothy

Halili, Elaica

Maat, Alezzandrio

Mercado, Leslie

Grade 12- ABM

March 11, 2018

CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 2

ABSTRACT

The strategies of a business to meet the customer’s preferences make the business successful

even in tight competition in the industry. The study aims to determine the customer’s

preferences through the strategies of the two famous brands competing in the smart phone

industry. The Generic Strategies and factors affecting customer’s preferences make the

business to be efficient. The researchers used quantitative type of study and also utilized a

descriptive method of research to conclude the variables easily. To determine the sample size

that will represent the population, the researchers used the Slovin’s Formula in able to

interpret and analyze the data. A type of research survey questionnaires were handed out to

the Senior High School students of St. Mary’s College of Meycauayan in simple random

sampling. The results were based through the quantity of which brand has more users and

their idea and preferences on the Apple which has more users in the participants. It is

suggested for future researches to further expand the study by exploring the customer’s

preferences through the strategies of businesses.

CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 3

TABLE OF CONTENTS

Abstract.........................................................................................................................................................2
Introduction..................................................................................................................................................4
Background of the Study…………………………………………………………...……………...4
Research Problem………………………………………………………………………….........7
Hypothesis……………………………………………………………………………………….8
Significance of the Study………………………………………………………………………..8
Limitations……………………………………………………………………………………….8
Conceptual Framework………………………………………………………………………….9
Methodology...............................................................................................................................................10
Research Design…………………………………………………………………………..........10
Research Tool…………………………………………………………………………….........10
Research Participants......................................................................................................................10
Research Procedure……………………………………………………………………………….11
Data Analysis..................................................................................................................................11
Results and Analysis..................................................................................................................................12
Interpretation……………………………………………………………………………...........15
Discussion...................................................................................................................................................17
Recommendation.......................................................................................................................................18
References..................................................................................................................................................19
Appendix
CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 4

INTRODUCTION

Background of the Study

Strategy is the overarching force behind successful innovation. It is crucial for a business

to know what its purpose is before the organization can design products, services, or

programs for sale. Each business has a unique purpose and reason for existing, a mission.

Ever since smart phone was formed, Apple and Samsung had a tight competition between

their market strategies when it comes to innovation and technology, social media presence,

advertising, customer engagement, public relations and publicity, and in entertainment up

until now.

Apple and Samsung are seen as the largest manufactures of Smart phones across the

world nowadays. This aggressive competition between these two tech giants

resultedan endless court battles. According to Eichenwald, for three years, Apple and

Samsung have clashed on a scale almost unprecedented in business history. Because of the

ranging battle of the two companies, some of their products are more likely to have similar or

identical features. The appearance such as the color, style and shape of the phones are getting

better but it can be seen that it is the same with the other. A new report from investment firm

Piper Jaffray shows that “Samsung is facing a strongly uphill battle.” (Mills,2017)

Samsung’s devices are prettier or cheaper, and Samsung has always out-sold Apple in the

mid-range market. If Samsung actually wants to challenge Apple for the luxury phone

market, it needs to unseat its brand long-term.

CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 5

According to Richard Foster, the key to both attack and defence is picking the right

technology. The best strategy may be to pick the adolescent technology with the highest limit

because it is never clear when a new technology is really going to emerge. Go for the highest

potential technology because customers almost always want more performance when they

can get it. (Foster, 1968)

The researchers will base on Generic Strategies (also called Competitive Strategies) of

Michael Porter because this can be applied to products or services in all industries, and to

organizations of all sizes. The Cost Leadership strategy involves being the leader in terms of

cost in your industry or market that usually have: Access to the capital needed to invest in

technology that will bring costs down. Very efficient logistics. A low-cost base (labor,

materials, facilities), and a way of sustainably cutting costs below those of other competitors.

(www.mindtools.com) A low-cost strategy requires developing ways to reduce production

costs without sacrificing quality. Customers will not purchase an inexpensive but poorly

made product or poorly delivered service. A successful Differentiation strategy needs good

research, development and innovation. Effective sales and marketing, so that the market

understands the benefits offered by the differentiated offerings. It is also used to make profit,

the cost of adding a new feature must be affordable and there must be a reasonable

expectation that customers will pay a higher price for the redesigned product.
CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 6

Companies that use Focus strategies concentrate on particular niche markets. A niche

strategy focuses on a specific group of consumers or clients that a company believes its

competitors are failing to serve. Rather than trying to appeal to a large segment of

consumers. (Quain,2017) It is to provide outstanding service to a small group to create brand

loyalty and consistent profits. But whether use Cost Focus or Differentiation Focus, the key

to making a success of a generic Focus strategy is to ensure that to add something extra as a

result of serving only that market niche.

Apple is still holding onto their strategy which is called ‘The Great Product’ that is meant

to have high standards of quality. The “great product” strategy also focuses on quality over

quantity. Apple preferred to stick to what it does best. (Martin, 2016) This means that it

focuses on selected products and continues enhancing them, instead of branching out to

create other products within the same category. While Samsung makes a lot of mobile

offerings and shows no signs of slowing down. The company is just taking a "spray and

pray" approach to its product strategy: Pump out as many different sizes, form factors,

software variants and design permutations imaginable, and hope something sticks with

consumers. (Bonnington, 2013) According to Samsung, this is all a response to consumer

behavior. "Samsung believes in providing choices for customers and their different

lifestyles," a Samsung spokesperson told Wired.

Consumer preferences involve the ranking of goods and services according to how much

benefit they afford. It employs assumptions about consumers' behaviour and how they decide
CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 7

preferences. A consumer preference explains how a consumer ranks a collection of goods or

services or prefers one collection over another. 

The Factors Consumer Preferences helps businesses to develop new products and identify

why some products are more successful than others. (Richards, 2017) Advertising informs

the consumers of their goods and services that makes an impression to the brand and product

itself. Social Institutions such as family, friends, co-worker etc can also influence customer’s

preferences. Based on consumer’s income, consumers are more likely to choose less

expensive goods or service. And lastly the Available Substitute where alternative may choose

instead a particular brand of product due to sensitivity in price changes.

The researchers come up to this topic to know what are the different ways that these two

large companies do about promoting, innovating and customer relationship that leads people

to patronize their products. The researchers will determine which of the two smart phone

brands are more likely to choose by the respondents.

The findings of this research study would be significant to both producer and consumer.

For the producer, it is to determine the consumer’s preference in buying and for the

consumers we aim to determine the strategies of both companies in producing their product.

Research Problem

We want to know what are the customer’s preferences through the strategies of the two

companies are using against each other to encourage us in buying their products.
CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 8

Hypothesis

The customers preferred more the strategies of Apple than Samsung in smart phone

industry.

Significance of the Study

This study is beneficial to the following:

 To the companies, this study will serve as their guide to know the strategies in how they

could build strong brand identity that can lead to and help them to increase their sale

volume.

 To the consumers, to determine the strategies of both companies in producing their

product. Also it will be benefit for them on their product preferences and satisfactory to

the product.

 To the future business owners, it can benefit them because they may adapt the strategies

of Apple and Samsung to be successful in their business..

Limitations

This study will only cover the strategies of Apple and Samsung in order to meet

customer’s preferences of their consumers. The students in Senior High School of St. Mary’s

College of Meycauayan will be covered as part of the respondents and it will be based on their

perspective, idea and preferences in the products about the two smart phone companies.
CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 9

Conceptual Framework

Decisiveness in buying
and choosing a phone
brand
Impact

Preferences in buying smart phones

Outcome

Student’s preferences are determined

Output

Conducting the Survey

Process

Identifying Apple and Samsung users at St. Mary’s College of Meycauayan

Input

Figure 1: Research Management Proposal

The Figure 1 that is showed above is a representation of the flow of the study. The input

shows our respondents which are Senior High School in St. Mary’s College of Meycauayan.

The process shows that we will conduct a survey in order to determine the factors affecting them

in terms of buying and using their phone. The output shows the student’s preferences are

determined. The outcome shows that the respondent’s preferences reflects on today’s society.

And lastly, the impact shows that the decisiveness can help to people to have wise decision

which smart phone brand to choose.

CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 10

METHODOLOGY

The Methodology presents the research design; the number of the participants and the

respondents. This also represents how the interviews are done and what are the step by step

processes of the research.

Research Design

The research design used in this study is quantitative, where theories and variables are

concluded in order to be studied easily. This study utilized the descriptive method of research

which is a fact-finding study that involves adequate and accurate interpretation of findings that

describes a certain present condition. By that, quantitative will be presented also in knowing the

strategies of the variables in the study on how they obtain their customers, specifically in

identifying the customer’s preferences among the variables.

Research Tool

The researchers made survey questionnaires for the target respondents at St. Mary’s

College of Meycauayan tackling about the Customer’s Preferences through the Strategies of

Apple and Samsung in Mobile Phone Industry. Moreover, questions were self-made and

coordinated with the research questions that the researchers have.

Research Participants/ Sampling

The study used questionnaires for gathering data and information. The questionnaires will

be handed out to the population needed in Senior High School (Grade 11 and 12) in St. Mary’s

College of Meycauayan, by using Simple Random Sampling in order to know their accurate idea

about the two compensating companies.

CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 11

Research Procedure

Below are a step-by-step procedure on how the researchers conducted the research

gathering to be able to collect data and come up with this study.

 We identified what will be the research topic.

 Next, we choose a topic about competition and strategies.

 And then, we decided to use the title" Customer’s Preferences through the Strategies of

Apple and Samsung in Smart Phone Industry"

 The researchers conducted two pilot tests to determine effectiveness and accuracy of the

questionnaires.

 We changed the questions in order to be lined up and have effective survey

questionnaires.

 To attain genuine results, we created survey questionnaire to use as an research

instrument/tool.

 The group were divided into three and assigned to the different sections.

 Then, the researchers analyze the data gathered by using Slovin’s Formula and made the

interpretation.

 Lastly, we analyze all the data and basis to see the results of the conducted study.
CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 12

Data Analysis

The data from the conducted survey to the respondents will be gathered then be continued

by systematically analyzing the transcripts, grouping together answers and their critic on similar

themes to interpret them, and draw conclusions. To determine the sample size that will represent

the population, the formula will be used is the Slovin’s Formula to be able to calculate the

sample size (n) given the population size (N) and a margin of error (e). Since the researchers will

see the customer’s preferences in the two famous brands of smart phone in the world.
CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 13

RESULTS

The Table below contains the results of the conducted survey. It shows the factors such as
strategies and preferences why the customers prefer the brand that they use. It also shows the
frequency, percentage and ranking in each choices of the question in the questionnaire.

Frequency Percentage Ranking

1. What is the brand of
your current smart phone?
a. Apple 73 36.87 % 1
b. Samsung 59 29.80 % 3
c. Other 66 33.33 % 2
2. Why did you purchase
this brand?
a. I have user 53 26.76 % 2
experience and I
have been used to
this brand
b. I was influenced 10 5.05 % 4
by the media
advertisements
c. It was a gift from 100 50.51 % 1
my friends/family
d. I’m amazed by its 30 15.15 % 3
overall
performance
e. Others : 5 2.53 % 5
3. What is the factor that
affect/ influence you to
buy your current smart
phone?
a. Advertisements 56 28.28 % 2
b. Good word-of- 30 15.15 % 3
mouth/ sales talk
c. Suggested by a 112 56.57 % 1
friend/family
members
4. What feature of your
current phone that meets
your satisfactory level?
a. Camera 51 25.76 % 2
b. Memory 18 9.09 % 3
CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 14

c. Specs (Processor, 83 41.91 % 1

Operating System)
d. Battery Life 11 5.56 % 3
e. Appearance 18 9.09 % 1
Others: 17 8.59 % 2
5. Do you think, the brand
of your current phone
meets the customer’s
preferences through the
company’s strategies?
a. Yes 178 89.90 % 1
b. No 20 10.10 % 2
6. Do you think that your
current phone is worth it
whether it is expensive/
inexpensive?
a. Yes 183 92.42 % 1
b. No 15 7.58 % 2

Interpretation and Analysis

These are the answers of the respondents in each number of our questionnaire.

1. What is the brand of your current smart phone?

- Based on the table above, Letter A (Apple) was the most chosen answer by the

respondents that has a total of 73 respondents. The second is the Letter C (Others) has

a total of 66 respondents and the 3 rd ranked choice of the respondents is the Letter B

(Samsung) has a total of 59 respondents. That simply proves there are a lot of Apple

users among the respondents.

2. What did you purchase this brand?

- Based on the data gathered above, the most chosen answer is the Letter C (Gift from

my friends/family) has a total of 100 respondents. Second is the Letter A (User

experience) has a total of 53 respondents. Then third is the Letter D (Amazed by its

overall performance) has a total of 30 respondents and in Letter B (Influenced by the

CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 15

media advertisements) has a total of 10 respondents. And lastly, the least answered

choice is the Letter E (Others) has a total of 5 respondents. This proves that most of

the respondents phones are came from their parents/family or friends.

3. What is the factor that affect/ influence you to buy your current smart phone?

- Based on the table above, Letter C (Suggested by a friend/ family members) has the

most answered choice that has a total of 112 respondents. Second is the Letter A

(Advertisement) that has a total of 56 respondents. And the least answered choice is

the Letter B (Good word-of-mouth) that has a total of 30 respondents. This clearly

shows that social institutions are the most effective to influence to the users to decide

in choosing their smart phone brand.

4. What feature of your current phone that meets your satisfactory level?

- Based on the table above, the respondents’ most answered choice in this question is

Letter C (Specs) has a total of 83 respondents and the second is the Letter A (Camera)

has a total of 51 respondents. In third rank is both Letter is B (Memory) and E

(Appearance) that have the same total of 18 respondents. And in fourth rank answered

choice is “Others” has a total of 17 respondents and lastly, the most least answer is

the Letter D (Battery Life) that has a total of 11 respondents. This shows that the

respondents were more focused to look at the specs of a smart phone before deciding

to buy one.

5. Do you think, the brand of your current phone meets the customer’s preferences

through the company’s strategies?

- Based on the data gathered above, Letter A (Yes) is the most answered choice which

has a total of 178 respondents and in second rank is Letter B (No) total of 20
CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 16

respondents. This simply shows that the smart phone users of either of the 2 brands

meet the customer’s preference through the strategies of the companies.

6. Do you think that your current phone is worth it whether it is expensive/

inexpensive?

- Based on the data gathered above, the most answered choice is Letter A (Yes) that

has a total of 183 respondents while the Letter B (No) had the least answered choice

that only have a total of 15 respondents in overall population. This clearly shows that

either of the 2 smart phone brand, their customers are satisfied and said that their

products are worth it to buy.

CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 17

DISCUSSION

The purpose of this study is to determine the customer’s preferences through the

strategies of Apple and Samsung are using for against each other and encourage the consumers

to buy their products. The researchers conducted a survey to the students of Senior High School

of St. Mary’s College of Meycauayan. The results of the conducted survey shows that most of

the respondents currently have an Apple smart phone. Most of them said that their phone was a

gift from their family member but based from the second highest option, they are already a past

user of Apple that simply means that the brand obtained the trust and reliability of their

consumers. The social institutions such as friends or family member are the most effective to

influence others to buy the brand of their smart phone since they gained trust to their loved ones.

We can say that Apple’s strategy “The Great Product” is successful since the respondents chose

the quality over quantity. The high standard quality of Apple smart phones that have high

definition of cameras, higher storage space and more features to enjoy such us good quality,

good graphics up to its overall performance. The respondents see and aware of the company’s

strategies to obtain the preferences of their customers that makes it in trend and successful in

today’s world. And lastly, Most of the respondents are satisfied enough to their current smart

phone whether it is Apple or Samsung, they are satisfied to the product itself by not mere looking

at its price. These clearly shows that the smart phone brands especially Apple even as

competitors in the market place have effective market strategies in innovation and technology,

social media presence, advertising, customer engagement, public relations and publicity, and in

entertainment that satisfies the customer’s preferences in choosing or buying a smart phone.
CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 18

RECOMMENDATIONS

The research is related to the strategies of a business in order to have successful products

that meet the preferences of the consumers. Given the uprising changes in the sector of

innovation, a further set of studies related in this study would document current insights in

competitive market strategies and thereby increase the potential discoveries of proper and

effective ways on the aspect to meet customer’s preferences. We suggest to further expand the

study by exploring the customer’s preferences through the strategies of businesses that may also

consider the number of ways that organizations and businesses can streamline their innovation

and production to meet the demands of today’s market place however, these methods to be

significant, they must be done a coordinated strategy designed to improve their sale volume and

have a long term effect in the business.

CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 19

REFERENCES

Kurt Einchenwald, (2014), https://www.vanityfair.com/news/business/2014/06/apple-samsung-

smartphone-patent-war

Chris Mills, (2017) http://bgr.com/2017/10/12/apple-vs-samsung-sales-2017-iphone-7/

The Mind Tools Content Team, (N.A)

https://www.mindtools.com/pages/article/newSTR_82.htm

Sampson Quain, (2017),https://bizfluent.com/info-10064562-types-competitive-strategy.html

Christina Bonnington, (2013), https://www.wired.com/2013/06/samsungs-product-strategy/

Martin, (2016), https://www.cleverism.com/apple-product-strategy/

Rebekah Richards, (2017), https://bizfluent.com/info-8116011-factors-affecting-consumer-

preferences.html

Richard F, (1986), Innovation, McKinsley & Co., Inc, (212)

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APPENDICES
CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 21

Tally Frequency

1. What is the brand of your

current smart phone?
a. Apple IIIII-IIIII-IIIII-IIIII-IIIII-IIIII- 73
IIIII-IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-III

b. Samsung IIIII-IIIII-IIIII-IIIII-IIIII-IIIII- 59
IIIII-IIIII-IIIII-IIIII-IIIII-IIII
c. Others IIIII-IIIII-IIIII-IIIII-IIIII-IIIII- 66
IIIII-IIIII-IIIII-IIIII-IIIII-IIIII-I
2. Why did you purchase this
brand?
f. I have user experience IIIII-IIIII-IIIII-IIIII-IIIII-IIIII- 53
and I have been used IIIII-IIIII-IIIII-IIIII-III
to this brand
g. I was influenced by the IIIII-IIIII 10
media advertisements
h. It was a gift from my IIIII-IIIII-IIIII-IIIII-IIIII-IIIII- 100
friends/family IIIII-IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII- IIIII-IIIII-IIIII-IIIII-IIIII
i. I’m amazed by its IIIII-IIIII-IIIII-IIIII-IIIII-IIIII 30
overall performance
j. Others : IIIII 5
3. What is the factor that
affect/ influence you to buy
your current smart phone?
d. Advertisements IIIII-IIIII-IIIII-IIIII-IIIII-IIIII- 56
IIIII-IIIII-IIIII-IIIII-IIIII-I
e. Good word-of-mouth/ IIIII-IIIII-IIIII-IIIII-IIIII-IIIII 30
sales talk
f. Suggested by a IIIII-IIIII-IIIII-IIIII-IIIII-IIIII- 112
friend/family members IIIII-IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII- IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-IIIII-IIIII-II
CUSTOMER’S PREFERENCES INAPPLE AND SAMSUNG IN SMART PHONE INDUSTRY 22

4. What feature of your

current phone that meets your
satisfactory level?

f. Camera IIIII-IIIII-IIIII-IIIII-IIIII-IIIII- 51
IIIII-IIIII-IIIII-IIIII-I
g. Memory IIIII-IIIII-IIIII-III 18
h. Specs (Processor, IIIII-IIIII-IIIII-IIIII-IIIII-IIIII- 83
Operating System) IIIII-IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-IIIII-IIIII-III
i. Battery Life IIIII-IIIII-I 11
j. Appearance IIIII-IIIII-IIIII-III 18
Others: IIIII-IIIII-IIIII-II 17
5. Do you think, the brand of
your current phone meets the
customer’s preferences
through the company’s
strategies?
c. Yes IIIII-IIIII-IIIII-IIIII-IIIII-IIIII- 178
IIIII-IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII- IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII- IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-IIIII-IIIII-IIIII-III
d. No IIIII-IIIII-IIIII-IIIII 20
6. Do you think that your
current phone is worth it
whether it is expensive/
inexpensive?
c. Yes IIIII-IIIII-IIIII-IIIII-IIIII-IIIII- 183
IIIII-IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII- IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII- IIIII-IIIII-IIIII-IIIII-
IIIII-IIIII-IIIII-IIIII-IIIII-IIIII-
III
d. No IIIII-IIIII-IIIII 15
Total:
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