Market Research Implementation Plan:
A Research Study on the Effects of Price Dropping on Apple’s existing Products
Letter of transmittal:
Dear Dr. Mulyanto,
This report has been compiled and written for the purpose of understanding the underlying effects of pricing surrounding Apple Inc. The goal of this report was to research and obtain substantial evidence that supports the notion that lowering the prices of Apple’s products will open up new and worthwhile markets that are necessary for Apple’s future as a leader in the electronic and mobile phone industry. This project was assigned November 5th of 2012. It’s title is, “ A Research Study on the Effects of Price Dropping on Apple’s existing Products”. The report shows the results of all the questionnaires that were made by our team in order to compile primary research into various age groups regarding our thesis. This report explains and interprets those results, provides conclusions and recommendations as to what can be done to improve Apple’s pricing strategy and help them reach a younger demographic. Our results are limited by the fact that our primary source of a Likert scale and questionnaire we designed were only given to a total of 25 people in the case of the questionnaire and 16 in the case of the Likert scale. Our results have not been gathered over a long period of time and were not focused towards any particular age group or demographic. These and other unforeseen factors will be the causes of error in our primary results. We believe after completing our research that Apple Incorporated, though being extremely successful both presently and historically, will achieve an even greater potential in the future by appealing to a lower demographic with lower prices.We recommend that Apple focus their efforts on income of their consumers and be sensitive of the buyers budget in order to effectively price their products. We also recommend that Apple drops the price of the iPhone to $99 for the latest model. We lastly recommend that Apple lower the price of their Applications, also known as “Apps”, and make more Apps free in order to boost sales of the iPhone.
Table of contents
* List of Tables,
* List of graphs
* Executive Summary
List of tables
List of graphs
5. Executive summary
a. Major findings:
A sample of 25 people, with different age and gender background, were given surveys to further explore their pricing preferences of existing Apple products. Young males and women ranging between the ages of 20-29 preferred pricing of $99 for the iPhone 5, which is lower than what is currently being offered by Apple. There was resounding agreement between the respondents when it came to agreeing that they would buy apple products if the app prices were cheaper. b.
Our survey analysis and secondary sources backed our implementation plan to lower prices for existing apple products, through our questionnaire we were able to find that 95% of the respondents in our target market would be more inclined to purchase Apple products if the price was 99$. The upgrade frequency data showed that our female subjects heavily favor upgrades monthly, whereas men were overall fine with yearly upgrades, which we could use in our implementation and tailoring of our Apple products. We would ultimately try and upgrade less to keep research and development costs down as well as fixed costs, which would allow us to lower costs to broaden our market and bring back the heavy users to the ages of 20-29(the trendsetters and brand loyalty users). Through the sampling data we received, we found the age demographics between 20-29 would be highly responsive to price droppings of existing apple products, and the amount of upgrades that are initiated should be on more regular intervals. Incomes and classifications of Apple’s target market is very much a factor of whether or not they...
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