Customer Perceived Value: The Smart Phone Industry (Research Paper Sample)

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The smart phone industry
The smartphone is one of the greatest inventions in the history of man. The smartphone was first invented in the late 1990’s but it became popular after 2007 when Apple developed its first iPhone. The invention helped other like-minded companies to also come up with the same idea and windows and android platforms were developed. The whole industry has been improving and increasing in size steadily. The first android phone was brought into the markets in the years between 2007 and 2010 and it is considered to have improved the se of virtual keyboards and touch screens (Statista, 2018). The smartphone industry is projected to grow more and by the end of the year 2020 more than 1.71 billion smartphones will be shipped. Apparently, IPhone has stood out to be one of the greatest smartphones in the modern days. It is considered to be a phone for the rich and its operations and functions are always above it competitors. Today smartphones run on windows, Android and IOS. Android is the most popular operating system as it is cheap and easier to develop. Android making companies include samsung, Techno, LG, Huawei, Techno, Itel and Infinix among others. Apple is the only company that develops the IOS devices. Windows operating systems was mainly used by the Nokia company after its merger with Microsoft though the collaboration later died (Warren, 2015).
Customer perceived value
Normally, customers and clients across the world will evaluate a specific service or product on the basis of its value against its specific selling price. Modern market managers are mainly focused on the using all the resources and time to manage and improve the prices of different products and it is due to the reason that increasing the price of commodities can boost the profits of a firm directly. Apparently, the act of dealing with pricing is quite easy. Pricing is all about managing and integrating short tactics and analytics (Harvard Business Review 2016). Successful marketing styles will always check and consider the fact that customers also look at the value of a specific commodity or service. The essence of value is quite complicated especially in the realm of psychology. It can be observed that the value nature and amount of a specific commodity or service will always lie in the eyes of the buyers. So marketers will always be required to find good ways of understanding the vale nature as perceived by the buyers or clients. A customer value model that is rigorous enables an enterprise to develop new combinations and cases that will improve the services and products that could be possibly delivered (Yang and Peterson 2004, P. 799-822). A good combination of the value will always pay off and increase the customers’ loyalty, sustained the growth of revenues and abilities of the consumers to try purchasing new brands that are developed by the firm. In line with that, this first part of the report is going to review the customer perceived value for the customers of IPhone and IPad alongside that of the Nokia company
Nokia company profile
Nokia is a finish and multination IT, communication and consumer electronic company that was founded in mid-1860’s. its headquarters are at Espoo, Helsinki. The nation has managed to employ more than 100, 000 people from the first months of 2017. Its current CEO is Rajeev Suri. The company is viewed as the most successful in Finland and the citizens accept and are proud of it.
Apple Inc. Profile
Apple was a company that was originally known as Apple Computer Company in the years before 1977. It is a publicly owned multinational enterprise whose headquarters are located in Cupertino are of California. The company, develops, manufactures and sells computer software parts, consumer electronics and several online services. Its main point of sale is the iPhone and the iPad. It also produces the Mac type of a computer. It has numerous online services such as the IOS App store, iTunes, iCloud and Apple music. Apple Inc. is an organization that was originally manufacturing computers. Its designer and markets are Steve Jobs, Ronald Wayne and Steve Woznaik. Basically, Apple uses the identity letter “I” to depict innovativeness.
Models of perceived value
Yang & Peterson (2004) notes that perceive value is always available in two models namely the customers’ loyalty and satisfaction. All the models are closely related as they all revolve around the qualities of services that are developed and provided by a specific organization. Customer satisfaction is often considered as what makes customers to stay loyal and to some extent even attract new customers. The two models will be considered because they appear to be explaining the main reasons why Apple has managed to win and become one of the most outstanding smartphone companies in the world.
The following is a chart showing the market share of Apple smartphone from 2007 to 2017 as retrieved from Statista (2018).
The data shows that Appel has managed to overcome many competitors and still manage to stay at the top. And this is where the customers’ satisfaction and loyalty models of customers’ perceived value will be expounded in a bid of trying to see why this firm has managed to stand tall. Additionally, the main aim of this discussion will be to propose a new proposed value proposition that can be applied in the apple company.
Sample conceptual illustration of how the models of customers’ satisfaction and loyalty often contribute to the overall perceived customer value. Retrieved from Yang & Peterson (2004)
The model above is seen to consider qualities and factors such as moderation and the direct effects that could affect the perceived customers’ value. And since both models appear to be dealing with the psychology of the customers, the firm has continually managed to attract and maintain its original customers at all time. This is considered to be one of the chief reasons why the Apple customers are always proud of the firm. In the next section an analysis of the two models will be conducted and how the whole application compares with that of the Nokia Company.
Customer satisfaction

Customer loyalty

Quality
Many people are always willing to purchase high quality goods even if they are expensive. This is a factor that constitutes the functionality value of a product. In terms of value, many people across the world will want to use a smartphone that is able to integrate technological and elegant designs. Some smartphones have also been able to achieve that by developing smartphones that are always in very elegant shapes. Some people feel that the shapes that are provided by other companies are not as elegant as those of others even if the prices are almost the same. Smartphone firms are always trying to develop new phones whose general functionality can manage to fulfil the desires of many customers across the world, satisfy all their technological needs and elegancy desires and become useful for multimedia and graphics services. People will also want to use smartphone models that are always using updated and advanced technologies.

Apparently, the ability of an organization to sell goods that are fully-baked makes customers stay loyal and true. So in the smartphone industry, customers will in most cases want to only use the smartphone that will give them services that are not problematic. They would want to have a good life with the product so they will only buy and become loyal to that smartphone company so that in future they can buy the improved devices or other models of smartphones that will be released by the firm. And as noted earlier this is a customer perceived value model that is highly applied by numerous firms. Some of the firms are able to aster it correctly and others and that is why you will some companies attract a large crowd of customers and others try it but once they purchase the first smartphone they fail to have that trust or urge of waiting for the firm to release a brand new smartphone.

Comparing Apple and Nokia customer perceived value
Apple

Nokia

Mission, vision and values
Mission statement
"Man is the creator of change in this world. As such, he should be above systems and structures, and not subordinate to them."
Vision statement
“Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad”

mission, vison and values
mission statement
“To guide and focus decision making, to create a balance between the competing interest of various stakeholders and to motivate and inspire organizational members”
Vision statement
“We create the technology to connect the world”
Values
* Respect
* Challenge
* Achievement
* Renewal

Customer satisfaction
The levels of customers’ satisfaction are very high in the operations of the apple organization. But the way the whole idea of using a customer’s satisfaction model has been put there is a close connection to what is referred to as customers’ delight (Forbes, 2016). This is a high level of satisfaction where the customers not only love the products but they enjoy being associated with the firm. In this firm, the customers are proud of being associated with the firm.

Customers satisfaction
The Nokia company is one that has been facing numerous challenges. Its ability to satisfy its customers is very minimal compared to that of the Apple...