1. Brands Switching
Consumer Analysis Term Report
Presented to
Mrs. Ambreen Basheer
Lecturer Consumer Behavior
By
Basim Zia (9294)
Shamsuddin Rashid (7569)
Zeeshan Valliani (12543)
December 22nd, 2012

2. Consumer Behavior Term Report
CONTENTS
CONTENTS................................................................................................................................. 2
ACKNOWLEDGEMENTS............................................................................................................. 4
Letter of Acknowledgment................................................................................................... 4
Letter of Transmittal............................................................................................................. 5
PROJECT OBJECTIVE.................................................................................................................. 6
BRAND CATEGORY.................................................................................................................... 6
CATEGORY A:........................................................................................................................ 6
Apple iPhone 4S.................................................................................................................... 6
Samsung Galaxy S III............................................................................................................. 7
COMPETITORS.......................................................................................................................... 7
NOKIA................................................................................................................................... 7
LG.......................................................................................................................................... 8
MOTOROLA........................................................................................................................... 8
CATEGORY B:............................................................................................................................ 8
Sony Play Station 3................................................................................................................ 8
Gaming PC............................................................................................................................. 9
COMPETITION........................................................................................................................... 9
XBOX 360.............................................................................................................................. 9
Nintendo Wii U................................................................................................................... 10
RESEARCH METHODOLOGY.................................................................................................... 10
CONSUMER PROFILE............................................................................................................... 11
Consumer A: Switched from Apple iPhone 4 to Samsung Galaxy S iii ................................. 11
Consumer B: Switched from Sony PlayStation 3 to Gaming PC ........................................... 12
COMPARISON MATRIX & ANALYSIS........................................................................................ 13
CATEGORY A....................................................................................................................... 14
............................................................................................................................................ 14
Technical Comparison ........................................................................................................ 14
Marketing Strategies & Communications........................................................................... 15
Consumer Preference......................................................................................................... 15
CATEGORY B........................................................................................................................ 15
Technical Comparison ........................................................................................................ 15
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3. Consumer Behavior Term Report
Marketing Strategies & Communications........................................................................... 16
Consumer Preference......................................................................................................... 16
REFERENCES............................................................................................................................ 16
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4. Consumer Behavior Term Report
ACKNOWLEDGEMENTS
Letter of Acknowledgment
December 22nd, 2012
Dear Readers
We are thankful to Almighty Allah for giving us the strength and capability to
complete this Term Report on Brands Switching.
We would like to thank the course instructor of Consumer Behavior Mrs. Ambreen
Basheer for putting in all the hard work in this course to make it a memorable
experience for all of us. We appreciate her guidance and shall appreciate valuable
feedback on this report.
Sincerely,
Basim Zia (9294)
Shamsuddin Rashid (7569)
Zeeshan Valliani (12543)
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5. Consumer Behavior Term Report
Letter of Transmittal
December 22nd, 2012
Mrs. Ambreen Basheer
Lecturer Consumer Behavior
Institute of Business Management
Dear Mrs. Basheer,
Presented is our term report on “Brands Switching”. The project involved primary
research on the consumer and is prepared according to the guidelines provided during
the semester.
We would like to thank you for providing the guidelines & suggestions which enabled
us to complete this report as our final project. We have worked vigorously on this
project to bring you the accurate and reliable results.
Sincerely,
Basim Zia (9294)
Shamsuddin Rashid (7569)
Zeeshan Valliani (12543)
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6. Consumer Behavior Term Report
PROJECT OBJECTIVE
Select two consumers who switched their brand in a particular product category over
the last 6 months to one year. The two consumers you select should be choosing the
same product category even though the brands can be different.
• The product category and brand chosen should be high involvement product.
Remember: High involvement is of two types: Complex buying behavior and
Dissonance reducing behavior
• Conduct an in-depth interview with both of them.
• Find out why they switched their brand.
o The reasons behind their first choice
o Reason for switching
o Are they satisfied with the current choice and why?
Make a comparative analysis of the two interviews and discuss the similarities and
differences among the two consumers. What are the marketing implications for
marketers?
BRAND CATEGORY
We have selected two consumers from two different product category. The first
person has switched from iPhone 4S to Samsung Galaxy S III, and the second person
has switched from Play Station 3 to Personal Computer for gaming. Both of these are
high involvement products.
• CATEGORY A:
Telecom/ Mobility: Apple iPhone 4S to Samsung Galaxy S III
• CATEGORY B:
Gaming: Sony Play Station to Gaming PC
CATEGORY A:
Apple iPhone 4S
The iPhone 4S is a touchscreen-based smartphone developed by Apple Inc. It is the
fifth generation of the iPhone, succeeding the iPhone 4, and was announced on
October 4, 2011. The phone retains the exterior design of its predecessor, but hosts
improved hardware specifications and software updates. It added a voice recognition
system known as Siri from which the "4S" designator came, and a cloud storage
service named iCloud. Apple is known for its innovation and cutting edge technology.
It offers key features such as multi touch screen, virtual keyboard. It has WiFi and
Cellular connectivity (2G, 3G and 4G). It has other key features such as emails,
browsing, GPS navigation, and social network application and so on. It has guerilla
glass which is a scratch less screen so the consumer doesn’t have to worry about
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7. Consumer Behavior Term Report
getting scratching. Apple’s iPhone has been positioned as innovative. It is thin and
lightweight compared to other smartphones.
Pricing
Apple iPhone is considered as a premium phone and is expensive compared to others
smartphones in the market. The company follow differentiated pricing strategy.
iPhone 4s cost in Pakistan is around Rs 57,000.
Promotions
Apple has promoted iPhone in different Hollywood movies such as Mission
Impossible 4 and James Bond movies where people were shown using iPhone. It is
portrayed as a hi-tech gadget. In Pakistan they haven’t marketed their product.
Samsung Galaxy S III
Samsung Galaxy S III is a smart phone by Samsung. Running on the Android
operating system by Google, the phone is designed, developed, and marketed by
Samsung Electronics. It has additional software features, expanded hardware, and a
redesigned physique from its predecessor, the Samsung Galaxy S II. The S III
employs an intelligent personal assistant (S Voice), eye-tracking ability, increased
storage, and a wireless charging option. Depending on country, the 4.8-inch (120 mm)
smartphone comes with different processors and RAM capacity, and 4G LTE support.
The device was launched with Android 4.0.4 "Ice Cream Sandwich", and can be
updated to Android 4.1 "Jelly Bean".
Price
Samsung follows Better, Faster and Cheaper strategy. Its price in Pakistan vary
among different of its sets. Samsung Galaxy S III price in is around Fifty two
thousand Pakistan Rupees.
Positioning
Samsung has been positioned as stylish due to its looks. Samsung be it LCD’s, be it
portable HD, be it any Samsung electronic gadget, they always make it stylish, having
less weight, attractive and sophisticated.
Promotion
Samsung has launched various advertising campaigns, spending billions of dollars
across three continents, North America, Europe and Asia. They are also aggressively
marketing their products in Pakistan through television ads, print media, social media
and billboards.
COMPETITORS
NOKIA
Nokia offers over a dozen varieties and models lining up every day. With the market
gearing up with new companies in the foray Nokia manufactures have accepted the
challenge. They are coming up with latest technologies being put to test. The
company believes in customer satisfaction and that is the success of their being the
leaders in cell phones. Nokia has a number of models to offer like the Nokia 1000
series, Nokia 2000 series, Nokia 3000 series, Nokia 5000 series, Nokia 6000 series,
Nokia 7000 series, Nokia 8000 series, Nokia 9000 series, Nokia E series, Nokia N
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8. Consumer Behavior Term Report
series, and others. These cells come in slides, flips, smart phone and standard models.
The brand boasts of varied features like Bluetooth, color screen, 3G, GPRS, GPS,
IRDA, Infrared, Java enabled, MMS enabled, MP3 player, Polyphonic ring tones,
Radio, Snap on cover, USB, Streaming video, Vibration, etc along with cameras with
VGA camera, 1-1.9 mega pixels, 2-3.5 mega pixels, 3.5 mega pixels and more. The
Nokia cell phones have something in terms of design and its user-friendly features are
unremarkable. The Nokia Company also provides a host of accessories which come
along with the handsets like chargers, batteries, ear phones /headset and the manual
which describes how to use the piece. There are other accessories like cases and
pouches, chargers, data cables, enhancements, faceplates, hands free headsets. You
can also buy other accessories which enhance your set. The other fancy accessories
are chains, flashers, holders, LCD screens, Scratch guard, stylus, memory card
readers, etc.
LG
LG Electronics, Inc. (LG) is a global leader and technology innovator in consumer
electronics, home appliances and mobile communications, employing more than
82,000 people working in 114 operations including 82 subsidiaries around the world.
With annual worldwide revenues exceeding $40 billion, LG Electronics comprises
five business units: Home Entertainment, Home Appliance, Air Conditioning,
Business Solutions and Mobile Communications. LG is one of the world's leading
producers of mobile handsets, flat panel TVs, air conditioners, front-loading washing
machines, optical storage products, DVD players and home theater systems. LG's
efforts continue to enhance the global presence of the LG brand and to maximize
profitable growth. In particular, LG Electronics will focus on achieving profitable and
sustainable growth in the mobile communications and digital display sectors to
strengthen its leadership in the IT industry, while at the same time increasing its
market share in the home appliance and digital media sectors.
MOTOROLA
Motorola, Inc. is an American, multinational, Fortune 100, telecommunications
company based in Schaumburg, Illinois. It is a manufacturer of wireless telephone
handsets, also designing and selling wireless network infrastructure equipment such
as cellular transmission base stations and signal amplifiers. Motorola's home and
broadcast network products include set-top boxes, digital video recorders, and
network equipment used to enable video broadcasting, computer telephony, and high-
definition television. Its business and government customers consist mainly of
wireless voice and broadband systems used to build private networks and public
safety communications systems. Motorola creates numerous products for use of the
government, public safety officials, business installments, and the general public.
These products include cell phones, laptops, computer processors, and radio
communication devices. The Motorola RAZR line has sold over 120 million units
bringing the company to the number two mobile phone slot in 2005.
CATEGORY B:
Sony Play Station 3
The PlayStation 3 is the third version of home video game console produced by Sony
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9. Consumer Behavior Term Report
Computer Entertainment and is the successor to the PlayStation 2 as part of the
PlayStation series. The PlayStation 3 competes with Microsoft's Xbox 360 and
Nintendo's Wii as part of the seventh generation of video game consoles. It was first
released on November 11, 2006, in Japan, with international markets following
shortly thereafter.
Major features of the console include its unified online gaming service, the
PlayStation Network, its multimedia capabilities, connectivity with the PlayStation
Portable and PlayStation Vita, and its use of the Blu-ray Disc as its primary storage
medium.
Price
The price of Play Station 3 in Pakistan is around PKR 34000.
Positioning
“INNOVATIVE GAMES FILLED WITH FUN AND ADVENTURE FOR THE
ENTIRE FAMILY TO ENJOY TOGETHER”
Promotion
Mainly Internet – blog, gadget review websites, gaming forums etc.
Gaming PC
Gaming computers are the Personal Computers with components required for an
enhanced gaming experience. The includes high-end graphics cards, processors and
more than enough RAM - capable of playing computationally demanding video
games. Gaming computers are very similar to conventional PCs, with the main
difference being the addition of performance-oriented components such as a high-end
CPU and one or more video cards. Gaming computers are often associated with
enthusiast computing due to an overlap in interests. Users in Gaming Computers have
access to a wide range of commercial software and freeware, which is provided in
ready-to-run or ready-to-compile form making it easy for them to upgrade and play
demanding games.
Price
The price of gaming PC can range anywhere from a few thousand rupees to hundred
thousand rupees.
Promotion
Internet – blog, gadget review websites, gaming forums etc.
COMPETITION
When we talk about the competitors for PS3 and PC, the biggest competitor is XBOX
360. Gamers are aware of the differences between the PC, PS3 and Xbox 360.
XBOX 360
The Xbox 360 is the second video game console developed by and produced for
Microsoft and the successor to the Xbox. The Xbox 360 competes with Sony's
PlayStation 3 and Nintendo's Wii as part of the seventh generation of video game
consoles. Several major features of the Xbox 360 are its integrated Xbox Live service
that allows players to compete online, download arcade games, game demos, trailers,
TV shows, music and movies and its Windows Media Center multimedia capabilities.
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10. Consumer Behavior Term Report
The Xbox Live also offers region specific access to third-party media streaming
application such as Netflix and ESPN in the U.S. or Sky Go in the UK.
Nintendo Wii U
Wii U is a video game console from Nintendo and the successor to the Wii. The
system was released on November 18, 2012, in North America, November 30, 2012
in Europe and Australia and December 8, 2012 in Japan. It is the first entry in the
eighth generation of video game home consoles. It is the first Nintendo console to
support high-definition graphics, capable of producing video output up to 1080p, and
has 2 GB of RAM with half dedicated to the console's operating system. The console
was released in two versions: a "Basic" white-colored version with 8 GB of internal
Flash storage; and a "Deluxe"/"Premium" black-colored version with 32 GB of Flash
storage.
RESEARCH METHODOLOGY
Type of Research: Qualitative
Research Approach: In-depth consumer interview, standardized open-ended
Criteria of Selection: Consumers who recently switched a high involvement product
brand in the last 6 to 12 months.
The data for this research is collected through in-depth interview of two consumers
who have recently switched brands. These interviews offered us in-depth insight of
consumer behaviors, motivations, emotions to uncover their decision making. We
learnt:
• What consumers take into account before making a decision of purchasing a
smartphone and gaming computer
• The features they look in a particular price range.
• And, how much touch screen, sound, camera and MP3 satisfy their inner
selves. Furthermore, in gaming what do consumers look either graphics or
plug n play features or the console design.
GUIDELINE FOR RESEARCH
We followed the below mentioned guideline in our research to understand the
consumer at a deeper level and explore their reactions to brands, new products and
new products categories. We focused on:
• Their life story (including: interest, professional history, educational
background etc)
• The history of their product usage
• The reason for switching to a different brand.
• Their feeling about the brand and the product.
• Impact of Promotion in influencing their decision
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11. Consumer Behavior Term Report
• What about their friends and family? Do they use different brand or the
same brand?
• Their expectations from the new product and their satisfaction level.
• The time they took to switch the product
• Price Factor
• Type of products generally preferred by them. Were they the first to try
new products or do they have waited for others.
CONSUMER PROFILE
Consumer A: Switched from Apple iPhone 4 to Samsung Galaxy S iii
Name: Rahim
Age: 25yrs old, single, male
Profession: Fashion Designing, working on different brands
Income:60,000+
Location: Karachi, Pakistan
Education: Bachelor’s degree
Reason for Switching: Product Features
Before buying Samsung Galaxy phone, Rahim did a lot of research. He is now very
satisfied with his choice. Price was not the factor for his decision to purchase
Samsung Galaxy as both Apple iPhone 4S and Samsung Galaxy are priced almost
same. It takes him around 3 to 4 months to switch.
Psychographics
Risk takers, extrovert. Political view is neutral. His interest includes painting, dress
designing, photography. He is passionate about cars. He has a good know how about
the latest technologies like cell phone, gaming consoles, other electronic gadgets. His
work justifies his innovativeness as he is a fashion designer.
Behavior
He is very friendly, enjoys socializing with people.
Personality Traits
The consumer is very passionate about fashion designing. He loves to explore new
things that make him an innovator. He tries new things without any hesitation but for
every change he adopts, he has a proper reason for that. He is very friendly and
always leads others. He takes the initiative without waiting for others to do it which
means he is an achiever. He likes to socialize with people therefore he wants to be at
his best when he is around people.
The benefit the consumer derives from using hi-fi cell phone is to socialize with
people more conveniently.
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12. Consumer Behavior Term Report
Consumer B: Switched from Sony PlayStation 3 to Gaming PC
Name: Fahad
Age: 26yrs, single, male
Profession: Working for Engineering firm
Income: 80,000, upper middle class
Location: Karachi, Pakistan
Education: BE degree, Pursuing MBA degree in Marketing
Reason for Switching: Technology shifts, Price and Benefits
Fahad has the passion for gaming. It began since he had PC, he than have used PS1,
PS2, XBOX and PS3. PS3 was launched in 2006 which cost him around PKR 40,000
at a time when the same specification PC cost was around PKR 80,000. However,
with the passage of time new technologies were emerged in personal computer. One
of major disadvantage which he says of using PS3 was that with every new game he
to pay for download but he easily gets the free version via torrent on personal
computer.
Personality Traits:
Through the discussion we had with the candidate we found out the consumer is
outgoing and extrovert. Normally if a new product is introduced by the brand he is
willing to take risk and try the new product even though he may not like the product
after using it.
His interest includes watching football, and he seeks adventure, exploring new places.
Furthermore, we also found through our discussion we came to conclusion that he is
an achiever. Throughout his academics path he holds various achievements. In
addition to, the consumer spends around three hours on average per day. The
consumer is high on the resource as well as the innovation.
The benefit the consumer derives from using personal computer is that it provides
opportunity to socialize, connect with friends; activities can be performed on them.
Personal Computer perceived by consumer:
With the passage of time new technologies were being introduced in personal
computer their technology was much better as compared to play station. Normally a
consumer expectation with a new version is that they are faster, quicker, better quality
graphics.
Technology changes very quickly but the ps3 is not up to date. For example ps3 came
in 2006 now in 2012 it has almost the same technology and the price is more or less
the same. However, within the same price range there is a possibility to create a better
performing system. With more features and benefits.
Multitasking. You can simultaneously, browse, use email, social networking sites and
other similar tasks with just a click of button . it is more efficient and save a lot of
time. Perform many tasks.
Trainers and cheats available on the pc which are unable to the gamers on the console
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13. Consumer Behavior Term Report
New games that will be launched exclusive are now being made for the multi-plat
form. Earlier some of the games like metal gear solid were exclusive to a particular
console like play station now the game is made for multiple platform, so there is no
need to buy a particular console. Any type controller can be attached to a PC.
Communication Strategies
E3 is an exhibition exclusively for the gamers. These events tells the gamers about
the new games that were going to be launched. Through email. Gaming website has
reviews about the particular. Then the experience of the other gamers with game and
their comments affects the behavior of the consumer.
Motivation
It is Fun and entertaining. It is a good way to pass time.
Sensory Organ
Visuals have strong impact. Gamers normally prefer High quality graphics. They can
get more detailed graphics. Visual cues are very important factor for the gamers.
Reason for Purchase
Latest games launched are now being made for the multi-plat form. The exclusive
games that were made for only a particular console like play station or x-box now
they are made for all types of console.
Any type controller can be attached. For example play station or x-box controller can
be attached to personal computer so it can give the feel of x-box and so on.
Graphics cards that are used are of high quality. The GPU used in the desktop is very
powerful compared to the console. Furthermore, trainers and cheats are especially
available for pc which is not able on the console. These are updates and patches that
can be installed for the game after the game has been released. However, they are
unable on the console.
COMPARISON MATRIX & ANALYSIS
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14. Consumer Behavior Term Report
CATEGORY A
Technical Comparison
Phone Samsung Galaxy S III Apple iPhone 4S
Date of Release May 2012 (7 months ago) October 2011 (1 year ago)
Operating System Android iOS
Operating System Android 4.1 iOS 6
Version
Price Pakistan Rupees 52,000 Pakistan Rupees 57,000
CNET Rating 4 out of 5 4 out of 5
Pumped with high-performing The iPhone 4S isn't the king
hardware and creative software of cell phones, but it's part of
features, the Samsung Galaxy S3 is an the royal family nonetheless.
excellent, top-end phone that's neck Even without 4G and a giant
and neck with the HTC One X. screen, this phone's
smart(ass) voice assistant,
Siri, the benefits of iOS 5,
and its spectacular camera
make it a top choice for
anyone ready to upgrade.
Features DLNA DLNA
FM Receiver GPS Navigation
FM Transmitter HD Playback
GPS Navigation Microphone
Graphics Accelerator
HD Playback
Microphone
Screen Size 4.8 inch 3.5 inch
Rear Camera 8 megapixel 8 megapixel
Front Camera 1.9 megapixel 0.3 megapixel
Battery Talk time 22 hours 14 hours
Storage 16 GB 16 GB
External Storage Yes No
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15. Consumer Behavior Term Report
Marketing Strategies & Communications
Propositions Apple has an amazing Apple have based their
ability to drive its strategy on 4 main
marketing strategy to products while Samsung
tout each increment (as works across hundreds
they did with iPhone 4S) all of which are
as an absolutely amazing interconnected.
breakthrough!
Samsung innovates primarily by manufacturing and distribution. Apple innovates
primarily by design and marketing. Samsung is a huge conglomerate, well diversified,
and does not depend on a single product and is present in Pakistan since very long.
Apple on the other hand is a four or five product company, and depends completely
on the sale of these products. The marketing communication of Samsung is more
stronger in Pakistan with billboards, television and print media ads while Apple
vendors rarely do such marketing activities in Pakistan and people primarily get
information about Apple products through internet.
Consumer Preference
Consumers gives a lot of importance to Product Features & Configurations. Samsung
S3 delivers more in comparison to Apple’s iPhone. Being part of Android, open-
source platform there are many applications which can be downloaded for Free in
Android compare to iTunes store. Product features such as camera, storage, style and
configuration also matters with price.
CATEGORY B
Technical Comparison
Phone Play Station 3 Gaming PC
Date of Release November 2006 (6 years ago) Quarterly Updates
CPU PowerPC-base Core @3.2GHz Subject to configuration
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16. Consumer Behavior Term Report
Graphics 1 VMX vector unit per core Subject to configuration
512KB L2 cache
7 x SPE @3.2GHz
7 x 128b 128 SIMD GPRs
7 x 256KB SRAM for SPE
* 1 of 8 SPEs reserved for redundancy
total floating point performance: 218
GFLOPS
Price Pakistan Rupees 34,000 Pakistan Rupees 74,000
CNET Rating 4 out of 5 4.5* out of 5
Even though PS2 backward *Subject to configuration
compatibility has been dropped from
this version, the 80GB PS3 is still a
superb Blu-ray player and high-
definition game console
Sound Dolby 5.1ch, DTS, LPCM, etc. (Cell- 4 inch
base processing)
Storage Yes Yes
Optical Drive 2x speed Blu-ray Disc drive for games, Combo drives
Blu-ray movies, DVDs, CDs and other
optical media
Marketing Strategies & Communications
Gamers primarily get information about Games & Gaming consoles through the
internet – gaming websites, reviews, social community & forums.
Consumer Preference
Games are no longer the only component in these gamer’s bottom lines. Gaming PC’s
has been really skillfully retraining consumers to think about the Gaming PC as more
than just a game box, and consumers are spending more and more time on the PC for
multi-tasking, streaming shows and listening to music. Price and Upgradation are two
other main factors look up by consumers before making a purchase decision.
REFERENCES
1. Apple Inc, http://www.apple.com, date viewed: December 20, 2012
2. Samsung, http://www.samsung.com, date viewed: December 20, 2012
3. Sony PlayStation, http://www.playstation.com/ps3, date viewed: December 20, 2012
4. CNET, http://www.cnet.com, date viewed: December 20, 2012
5. Gaming Computer, http://en.wikipedia.org/wiki/Gaming_computer, date viewed:
December 20, 2012
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6. Campion, M.A., Campion, J.E., & Hudson, J.P., Jr. “Structured Interviewing: A Note
on Incremental, date viewed: December , 2012
7. Foddy, William. Constructing Questions for Interviews, Cambridge University Press,
1993, date viewed: December 18, 2012
8. General Accounting Office. Using Structured Interviewing Techniques. Program
Evaluation and Methodology Division, Washington D.C., 1991, date viewed:
December 18, 2012
9. Groat, Linda & Wang, David. Architectural Research Methods, John Wiley & Sons,
Inc,, date viewed: December 18, 2012
10. Hollowitz, J. & Wilson, C.E. “Structured Interviewing in Volunteer Selection”.
Journal of Applied Communication Research, 21, 41-52, 1993, date viewed:
December 18, 2012
11. Kvale, Steinar. Interviews An Introduction to Qualitative Research Interviewing,
Sage Publications, 1996, date viewed: December 18, 2012
12. McNamara, Carter, PhD. General Guidelines for Conducting Interviews, Minnesota,
1999, date viewed: December 18, 2012
13. Interview conducted with Fahad, Recording enclosed, date retrieved: December 21,
2012
14. Interview conducted with Rahim, Recording enclosed, date retrieved: December 21,
2012
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