11:23 11:19 CO com CB consumer behaviour by Babil CB consumer behaviour by Ba... The Cult of Apple 293 of 404 Apple recently became the world's most valuable com- pany. Not to be confused with the company that produces the greatest revenue that would be Walmart Apple is the company that has the highest stock market valuation. Although Walmart has more than three times the sales of Apple, it is worth only about one-quarter of Apple's value. While Apple's satisfaction ratings regularly rank at or near consumers feel about Apple. The Apple iPhone 4 was the top of consumer-focused companies, Walmart's ACSI introduced with an antenna that resulted in dropped scores are generally among the lowest of large retail com calls. Apple responded by telling customers to get a case panies (see Exhibit 14.3). As Claus Fomell, founder of for the phone that would solve the problem. The iPhone the ACSI, says, "Companies with weak customer satisfac- 45 was launched with a massive advertising campaign tion often have weak stock performance." that introduced the world to Sini, a voice-activated vir With the launch of the iPhone 4S, Apple opened up tual assistant. The axis made it appear that you could talk a major gap between its customer satisfaction scores and to Siri and ask the assistant to complete a variety of tasks those of its competitors, like Nokia, LG, or Canadian- with relative ease. In practice, many consumers found based BlackBerry devices. In spring 2012, the Apple Siri's ability to be more limited than they expected and some huve even sued Apple for misleading them. Apple's iPhone's ACSI score was 83 (on a 100-point scale), which response If you don't like the phone, take it back and is eight points better than its nearest competitors (HTC. get a refund. More recently, consumers have had trouble LG and Nokia, which all scored 75 points) and 14 points using the lighting connector to charge their iPhones. better than BlackBerry, at the bottom of the list with a Yet, Apple continues to surge forward. The com 69 rating. That high level of satisfaction among Apple's pany has launched new services that charge a sub customers, combined with their willingness to stand in scription fee to store photos and stream music. Once line overnight for the privilege of paying the iPhone's again, these products are expected to be significant premium prices, has led some observers to refer to the players in the consumer market for cloud-based ser extremely strong relationship between Apple and its vices at a price premium to the competition. To fuel consumers as a "cult." this growth. Apple is relying on the value it has created in the very strong relationships it has with its very sat- The biggest problem for competitors is that Apple isfied consumers is perceived by consumers to be offering superior value. even at premium prices. When Apple launches a new Sources Barrie, Joshua 2015. The s...o gold Apple Watch Edition sold out in Chainless than an houses de April 10, httpwww. laptop, tablet, phone, or other device, it is able to charge businesses.com/apple-watch-don-sold-on-china-2015 a substantial premium over its competitors. Take the first BC37ccessed on June 26 2015 Cassidy, John (2012How Long Will the Cult of Apple Endure? The Movies Online Daly March 2011 Watch as an example. A number of other companies, hetp//www.new.york.com/fr/blogjchicassid 2012/03how including Pebble and Samsung, were in the smart watch long wil the cult-of apple List fochtml, acom May 23,2012 Cine market well before Apple entered, but Apple quickly Seth 2012, Dont Let Get and Apple Says of Sri US News & Wordport Wattp://www.usnews.comvnews/ gained a dominant market share. In fact, the iWatch rudes/2012/06/18/dont let getrefund apple says of awsuits sold more units in its first three months than either the accessed May 23, 2012. Feest Bad (20121 Apple Dominates Other Smartphone Vendors in Customer Satisfaction New World US first iPad or the first iPhone. When the $20,000 Apple (May 15, http://wwwpadvocuk hews/mobile phone/335757W Watch Edition went on sale in China, it sold out in less than an hour! In fact, even when products fail to meet expecta- tions, it does affect how most Question 3 (5 points) How might this affect consumer satisfaction with other, competing brands of phone? How did the iPhone change what consumers expect from any smartphone? Describe. NE Previous Page Next Page Page 2 of 5 Question 3 (5 points) How did the iPhone change what consumers expect from any smartphone? Describe. How might this affect consumer satisfaction with other, competing brands of phone