Samsung contributes near to 25% of the world market ,apple with 18% and follow on.

Why people are buying more Samsung Smartphones than Apple? • Price??? – iPhone 4, at $199 for 16GB and $299 for 32GB – Galaxy S the Samsung Vibrant for $199 • Samsung's rise has been driven by – a blend of elegant hardware designs (Functional Value) – popular Android services, (Social Value) – memorable sub-brands and (Emotional Value) – extensive global distribution (Functional Value) Source: BBC(October 28, 2011) Identifying Customer Perceived Value of Apple Smartphone (iPhone) • Even though Apple’s Smartphone market share felt in the last quarter, many sources revealed that it is due to the delaying in launching iPhone 5 (BBC, October 28, 2011). • From the data above, it can be concluded that iPhone has a high customer perceived value over the last three two years (2009 to 2010). • Customer Perceived value of iPhone can be analysed using Seth, Newman and Gross’s consumption value model Sheth, Newman and Gross (1991): Model of Consumption Values Source: Sheth et al (1991, p.160) FUNCTIONAL VALUE • The perceived utility acquired from an alternative’s capacity for functional, utilitarian, or physical performance. An alternative acquires functional value through the possession of salient functional, utilitarian, or physical attributes (reliability, durability, and price). • Functional value is measured on a profile of choice attributes. Source: Sheth et al (1991, p.160) Social Value • The perceived utility acquired from an alternative’s association with one or more specific social groups. • An alternative acquires social value through association with positively or negatively stereotyped demographic, socioeconomic, and cultural-ethnic groups. • Social value is measured on a profile of choice imagery. Emotional Value • The perceived utility acquired from an alternative’s capacity to arouse feelings or affective states. • An alternative acquires emotional value when associated with specific feelings or when precipitating or perpetuating those feelings. • Emotional value is measured on a profile of feelings associated with the alternative. Emotional Value • The perceived utility acquired

from an alternative’s capacity to arouse curiosity, pro-vide novelty, and/or satisfy a desire for knowledge. • An alternative acquires epistemic value by questionnaire items referring to curiosity, novelty, and knowledge. Conditional Value • The perceived utility acquired by an alternative as the result of the specific situation or set of circumstances facing the choice maker. • An alternative acquires conditional value in the presence of antecedent physical or social contingencies that enhance its functional or social value. • Conditional value is measured on a profile of choice contingencies. Customer Perceived Value: Smartphone (iPhone) • Functional Value – A defining functional value of the smart phone offering is born from the integration of many utilitarian attributes into a single, mobile, always-available device (Bodker et al, n.d). – constant access to the internet, search, and email; coupled with telephony and text messaging satisfy many modern ICT needs – The ability to navigate unfamiliar areas with GPS adds value – The MP3 player, games, and other entertainment features plus productivity tools like the calendar and address books, add additional functional value to the device – The ability to download additional games and productivity tools from a big software library further enhances the user experience Source: Bodker et al( n.d). Customer Perceived Value: Smartphone (iPhone) • Social Value – Significant social value is embedded and conveyed through the iPhone itself. – It can generate conversations as people ask questions and strike up conversations. – It serves as an icebreaker for users to begin talking to other users, thereby facilitating social interaction and forming new relationships – The iPhone provides social value by helping the owner convey an image to others in a way similar to many fashion items. – it is a type of personal branding that sends a message to affect friendships and relationships. Source: Bodker et al( n.d). Customer Perceived Value: Smartphone (iPhone) • Emotional Value – emotional need to be connected to others, similar to Maslow’s (Maslow, 1946) need of belonging – Constant connectivity helps fulfill this emotional need. – For example, access to social networks and Twitter enables people to maintain their social relationships in different ways than other types of communication. – Communication features such as telephone and SMS provide a connection to family and friends. – Having multiple, different communication media make it easy to maintain relationships with people with whom he might otherwise lose contact – Aside from facilitating a sense of belonging, a smart phone’s integrated technologies provide tools for altering one’s emotional state. – Many participants use the music player because music can change their mood. Others use specific add-on applications. – In addition to the emotion-enabling features, the device itself can trigger emotions through iPhone design (beautiful and esthetic feelings) – stores photo albums on the phone, describes the familiar feeling enabled by iPhone making customer feel secure. Source: Bodker et al( n.d). Customer Perceived Value: Smartphone (iPhone) • Episteme tic Value – The iPhone satisfied epistemic value in multiple ways. – First, the artifact itself inspires curiosity. People like exploring new technology, learning how to use a new device, and experiencing a GUI. As such, the device itself provides novelty value (“cool factor”) and appeals to those seeking to satisfy their curiosity – iPhone derives epistemic value is through the availability of downloadable applications and various media. Thousands of programs are available for download, many of which are free. Access to websites like YouTube also provide a constant stream of novelty. – Finally, the integration of a standard web browser enables users to find whatever information they seek. This helps satisfy curiosity and cure confusion. Source: Bodker et al( n.d). Customer Perceived Value: Smartphone (iPhone) • the conditional preference for the iPhone was based on convenience-related measures. • Much of the iPhone’s value was conditional depending upon the availability of a laptop computer with an internet connection • When time was limited, a computer’s long boot up time added conditional value to the iPhone, which was ready for use. • When a Wi-Fi or landline internet connection was unavailable, the conditional value of the smart phone rose

dramatically because it was the only alternative • None saw much value in typing email on the iPhone unless a computer was unavailable, the message could be conveyed in a few words, and it must be sent immediately Source: Bodker et al( n.d). Conclusion • Many of the utilitarian attributes that resonate most strongly with users gain much of their value from the other consumption values: social, emotional, epistemic, and conditiona