Question

ANSWERING THE FOLLOWING BASED OF APPLE IPHONES

1. Are there any companies not in existence today that could compete with your product?
   1. Pros:
   2. Cons:
2. Post purchase Decision
   1. Indicate how you would measure a post-purchase satisfaction level?
   2. Consumer Loyalty–indicate how you would increase
      1. e. utilizing a rewards system, what would be the requirements?

Answer 1

Solution:

-- There are no notable companies that can compete with the iPhone because Apple has a sustainable competitive advantage that they derive through their superior design of mobile phones and their operating system which is extremely sophisticated and works with utmost quality than any other smartphone brand. Hence, Apple has a strong competitive advantage and hence there are hardly any companies non-existent today which can compete with Apple. Hence, the pros and cons are,

a: Pros:

• Highly developed and strong competitive advantage.
• High customer loyalty of Apple users
• Security of top-notch order on the phone information.

b: Cons

• The price of the product goes up and becomes an issue for price-sensitive customers.
• Not every customer would want all the features of Apple iPhone which makes them costly for a larger segment of consumers and Apple may lose out on these consumers.

-- Post-purchase Decision:

a: The company can measure post-purchase satisfaction levels by,

• Reaching out to the customers for seeking the reviews on their purchase.
• Recording the number of customer complaints that are registered for a particular iPhone.

b: Consumer loyalty can be increased by,

• Providing the utmost quality of customer service to the customers and ensuring they are getting their issues resolved with us with ease.
• Having a rewards program allowing users to refer friends and family to Apple and gain monetary or nonmonetary rewards.

These elements can help in improving customer loyalty.