MANAGEMENT DECISION CASE: Smartphones, Seniors, and Purchase Decisions Picture t
ID: 352950 • Letter: M
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MANAGEMENT DECISION CASE: Smartphones, Seniors, and Purchase Decisions Picture this rather complex consumer purchase deci- hractions described between the consumer sion. An 82-year-old man (let's call him Jack) walks into Jack), his children (influencers), and the Verizon Wire- y aspects of the to a Verizon Wireless store looking for a smartphone. less salesperson, April, illustrate man However, Jack already is having serious reservations consumer decision-making process. Although Jack about his purchuse becase (a) he currently does not does not personally recognize a problem with nothav own even a basic cell phone let alone a smartphone, ing a smartphone, his children have been successful in (o) up to now he's not been sure why he would need a convincing him that a problem does exist and influenc- smartphone. (c) he's really not interested in investing the ing him to remedy the problem soon. Upon being con time it will require to learn how to use the phone, which vinced of the need for a smartphone, Jack (reluctantly) means (d) he's not convinced he will ever use it, and (e) finds himself in information search mode when he the doesn't think he will ever use it, then he's definitely enters the store and encounters the salesperson. There not interested in being locked into the typical two-year he attempts to get his questions answered, but this is all contract required by most U.S. cellular providers so new to him that it is difficult to grasp many aspects of The only reason Jack is in the market for a smartphone the information being provided. Nonetheless, he even- is because he is of the age where his children want him tually is persuaded to make a decision about the type to be easily accessible so they can make sure he is "okay" of phone and data plan he wants to purchase and a few at a moment's notice. Jack's mindset is that he knows the minutes later he is walking out the door with his spiffy status of his on health at all times and figures that if his new phone activated for him to start using right away children want to know how he is, they can simply call his Fast forward to a couple of months later-despite offers and line. The logic is that if he answers the land line, he's to help and extreme urging to do so, Jack's kids find that okay, if he doesn't answer the land line, he's well enough since he is not used to having a smartphone, he is still not to be out of the house doing something else. So why all in the routine of carrying it with him when he leaves the of the bother and fuss about buying a smartphone? house. He also still has not set up his woicemail function, nor Like many seniors, Jack ultimately relents to the is he checking text messages. Frustrating as it is, this results wishes of his children and makes the trek (driving by in everyone reverting back to the old system of simply rely- himself of course) to the Verizon Wireless store. Once ingon the land line with Jack left holding the bag of paying inside, he immediately comes in contact with a very for a two-year plan for a product that he uses minimally. enthusiastic 20-something salesperson (let's call her Aprill who is wielding a tablet-like device and talking nonstop about the latest gadgets and 4G service. are able After getting some basic information from Jack such as what kind of smartphone and data plan he has now the phone remains to be seen. he doesn't have either), why he wants a smartphone he doesnit want one, but his kids want him to have Questions for Consideration Customer needs and wants? They've obviously been overlooked so far in this scenario. Whether his children to educate him about the phone's features and more importantly, convince him to ever carry and use iti, how he sees himself using the smartphone thes not convinced he will use it), and what kind of options he's looking for in a phone and data plan (the's clueless) April shows Jack several different phones with various 1. After Jack purchases his phone and data plan, is it likely that he experienced cognitive dissonance with his pur- chase?What evidence makes you answer the way you did? options while explaining that some phones require a 2. What social and/or cultural factors played a role in this data plan (which necessitates even more explanation) consumer purchasing the smartphone and data plan? and others do not. Eventually Jack remembers that his Which ones do you think were most important and why? children have talked a lot about the Apple iPhone and 3. The scenario described in the case is an illustration wonders if that would be appropriate for him. After that not only do companies have to overcome the considerably more explanation from the sales represen- hurdle of getting someone to buy their product but tative, Jack wears down and commits to the iPhone 4 also have to educate consumers on the proper use because it is only 99 cents with a two-year contract. of the product after purchase. Otherwise, the con- reigning horror at Jack's choice, the sales representative sumer has a product he/she immediately asks, "but what will your family and friends think if you are not using the newest phone (iPhone 5S at the time) and technology on the market?" After Jack the post-purchase time fra and thus achieves no value or satisfaction from the purchasel What steps could Verizon Wireless take in use at this seemingly ridiculous question, he simply sald,"I think they me to ensure that con- sumers get the maximum value and satisfaction out will understand of their purchase and avoid outcomes such as Jack's?Explanation / Answer
2.The social and cultural factors that affect a consumer’s choice in buying a smartphone are:
Jack’s children wanted him to be easily accessible all the time and this is feasible with the use of a smartphone.
The range of features offered by the cellphone is also a considerable factor in making a choice.
Most of the cellular providers bind the buyer to a contract for cellular usage. The buyers make a choice of the cellphone based on the contract that is suitable for them.
The value, which can be afforded by the buyer for the cellphone, is also a social factor that needs considerable attention.
The social factor, which was critical in this case is the family pressure laid by Jack’s children on him to buy a smartphone. They wanted him to be easily accessible and traceable all the times. So, they pressurized and ultimately convinced him to buy a smartphone.
3. Steps to be taken by Verizon Wireless, post sales of mobile to make consumers to get maximum benefit and satisfaction from the product:
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