Chapter 6 - Consumer Decision Making

▪ After Apple announced the release date of its iPhone in June 2007, consumer traffic to theiPhone 8GB product page dramatically increased by 1,900 percent by the end of December2007, while traffic for the iPhone 4GB initially increased only slightly before Applediscontinued the lower capacity device in early September 2007.
▪ Of the 54 percent of respondents who indicated that they do not plan to purchase an iPhone,41 percent indicated their primary reason was that the iPhone is too expensive and 22percent indicated that they didn’t want to switch to AT&T as their carrier. 
▪ Of the 46 percent of consumers who either own or are considering purchasing an iPhone, 35percent indicated that the fingertip navigation (zooming, scrolling, etc.) is the best feature ofthe iPhone.
▪ Bluetooth and hands-free headsets are becoming a required accessory with cell phones suchas the iPhone. With the new driving laws impending, 62 percent of online consumersindicated that they currently use or plan to purchase a hands-free headset. 
▪ Of the top 20 most popular cell phones on PriceGrabber.com, 19 have MP3 playbackcapabilities. Forty-two percent either are not aware of or do not have the MP3 playercapability on their cell phone. Only 11 percent of respondents use their cell phone as theirprimary MP3 player and 18 percent of respondents use it on occasion.
▪ Prior to the iPhone 3G announcement made by Steve Jobs, president of Apple, a total of 38percent of online respondents indicated that they plan to purchase the iPhone 3G, while 62percent indicated they don’t plan to.  

CONSUMER BEHAVIOR REPORT 2008  The iPhone has changed the way consumers think about cell phones and smartphones. Apple has consumers waiting in anticipation for the July 11 release of the second generation 3G iPhone and iPhone 2.0software, nearly one year after the iPhone was introduced on June 29, 2007. The iPhone isundoubtedly the most talked about mobile device in the market. 
▪ Apple keeps consumers interested in the iPhone. After Apple announced the release dateof its iPhone in June 2007, consumer traffic to the iPhone 8GB product page dramaticallyincreased by 1,900 percent by the end of December 2007, while traffic for the iPhone 4GBinitially increased only slightly before Apple dropped its price to $299 and discontinued thelower capacity device in early September 2007. 
 ▪ In a survey of 3,066 online respondents conducted between May 20 and June 5, only 20percent of consumers own an iPhone or smartphone, while the majority of respondents own astandard cell phone. However, 42 percent of respondents indicated that they are consideringpurchasing an iPhone and four percent indicated that they own an iPhone. Apple, whichrecently announced the 3G iPhone, has the opportunity and the challenge to win over the 54percent of consumers who indicated that they do not intend to purchase the iPhone.