MANAGEMENT DECISION CASE: Smartphones, Seniors, and Purchase Decisions Picture t
ID: 389448 • Letter: M
Question
MANAGEMENT DECISION CASE:
Smartphones, Seniors, and Purchase Decisions
Picture this rather com plex consumer purchase decision.
An 82-year-old man (let’s call him Jack) walks into
to a Verizon Wireless store looking for a smartphone.
However, Jack already is having serious reservations
about his purchase because (a) he currently does not
own even a basic cell phone let alone a smartphone,
(b) up to now he’s not been sure why he would need a
smartphone, (c) he’s really not interested in investing the
time it will require to learn how to use the phone, which
means (d) he’s not convinced he will ever use it, and (e)
if he doesn’t think he will ever use it, then he’s definitely
not interested in being locked into the typical two-year
contract required by most U.S. cellular providers.
The only reason Jack is in the market for a smartphone
is because he is of the age where his children want him
to be easily accessible so they can make sure he is “okay”
at a moment’s notice. Jack’s mindset is that he knows the
status of his own health at all times and figures that if his
children want to know how he is, they can simply call his
land line. The logic is that if he answers the land line, he’s
okay; if he doesn’t answer the land line, he’s well enough
to be out of the house doing something else. So why all
of the bother and fuss about buying a smartphone?
Like many seniors, Jack ultimately relents to the
wishes of his children and makes the trek (driving by
himself, of course) to the Verizon Wireless store. Once
inside, he immediately comes in contact with a very
enthusiastic 20-something salesperson (let’s call her
April) who is wielding a tablet-like device and talking
nonstop about the latest gadgets and 4G service.
After getting some basic information from Jack such
as what kind of smartphone and data plan he has now
(he doesn’t have either), why he wants a smartphone
(he doesn’t want one, but his kids want him to have
it), how he sees himself using the smartphone (he’s
not convinced he will use it), and what kind of options
he’s looking for in a phone and data plan (he’s clueless),
April shows Jack several different phones with various
options while explaining that some phones require a
data plan (which necessitates even more explanation)
and others do not. Eventually Jack remembers that his
children have talked a lot about the Apple iPhone and
wonders if that would be appropriate for him. After
considerably more explanation from the sales representative,
Jack wears down and commits to the iPhone 4
because it is only 99 cents with a two-year contract.
Feigning horror at Jack’s choice, the sales representative
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
finally stopped laughing at this seemingly ridiculous
question, he simply said, “I think they will understand.”
The interactions described between the consumer
(Jack), his children (influencers), and the Verizon Wireless
salesperson, April, illustrate many aspects of the
consumer decision-making process. Although Jack
does not personally recognize a problem with not having
a smartphone, his children have been successful in
convincing him that a problem does exist and influencing
him to remedy the problem soon. Upon being convinced
of the need for a smartphone, Jack (reluctantly)
finds himself in information search mode when he
enters the store and encounters the salesperson. There,
he attempts to get his questions answered, but this is all
so new to him that it is difficult to grasp many aspects of
the information being provided. Nonetheless, he eventually
is persuaded to make a decision about the type
of phone and data plan he wants to purchase and a few
minutes later he is walking out the door with his spiffy
new phone activated for him to start using right away.
Fast-forward to a couple of months later—despite offers
to help and extreme urging to do so, Jack’s kids find that
since he is not used to having a smartphone, he is still not
in the routine of carrying it with him when he leaves the
house. He also still has not set up his voicemail function, nor
is he checking text messages. Frustrating as it is, this results
in everyone reverting back to the old system of simply relying
on the land line with Jack left holding the bag of paying
for a two-year plan for a product that he uses minimally.
Customer needs and wants? They’ve obviously been
overlooked so far in this scenario. Whether his children
are able to educate him about the phone’s features and,
more importantly, convince him to ever carry and use
the phone remains to be seen.
Questions for Consideration
1. After Jack purchases his phone and data plan, is it likely
that he experienced cognitive dissonance with his purchase?
What evidence makes you answer the way you did?
2. What social and/or cultural factors played a role in this
consumer purchasing the smartphone and data plan?
Which ones do you think were most important and why?
3. The scenario described in the case is an illustration
that not only do companies have to overcome the
hurdle of getting someone to buy their product but
also have to educate consumers on the proper use
of the product after purchase. Otherwise, the consumer
has a product he/she may not properly use
and thus achieves no value or satisfaction from the
purchase! What steps could Verizon Wireless take in
the post-purchase time frame to ensure that consumers
get the maximum value and satisfaction out
of their purchase and avoid outcomes such as Jack’s?
Explanation / Answer
1.After Jack purchases his phone and data plan, is it likely that he experienced cognitive dissonance with his purchase? What evidence makes you answer the way you did?
Cognitive dissonance alludes to circumstances an individual is included in clashing dispositions, convictions or practices. This puts the person in a condition of distress and disappointment with the moves he has made. For this situation, taking after may be the pointers:
Jack does not trust in purchasing a costly telephone since he considers a telephone as an utility and not a materialistic trifle. Still he felt free to got it in view of his companions having such telephones, so he thought may be there are some extra advantages of purchasing a costly telephone
For information arrange, he wouldn't like to spend extra sum. Be that as it may, since information plan was offered at a rebate, he chose to get it too.
In both these cases, there is clashing dispositions and conduct.
2.What social and/or cultural factors played a role in this consumer purchasing the smartphone and data plan? Which ones do you think were most important and why?
Verizon Wireless could make the accompanying move in the post buy time allotment to enhance the utility of the item to the customer:
1. Recognize the requirements and desires of the client for an item, for example, an advanced cell. It should be possible with the assistance of organized dialog or connection handle.
2. Offering the post buy demo and help with making altered important settings according to the prerequisite of clients
3. Contacting the influencers or close relatives for whom, the smart phone like item is bought.
3. The scenario described in the case is an illustration that not only do companies have to overcome the hurdle of getting someone to buy their product but also have to educate consumers on the proper use of the product after purchase. Otherwise, the consumer has a product he/she may not properly use and thus achieves no value or satisfaction from the purchase! What steps could Verizon Wireless take in the post-purchase time frame to ensure that consumers get the maximum value and satisfaction out of their purchase and avoid outcomes such as Jack's?
Verizon remote is a telecom organization and it offers specialized items and administrations. On the off chance that client doesn't know how to utilize it legitimately and at full degree then unquestionably he will feel disappointed and tricked. In spite of the fact that there is essential which an organization can take pre-buy likewise with the goal that client get item as indicated by his prerequisite however since in this question its requested post buy time So here we are specifying what steps ought to by and large any organization take present buy time allotment on guarantee that customers get the most extreme esteem and fulfillment out of their buy and maintain a strategic distance from results, for example, Jack's-
Observing of existing clients organization ought to dependably screen the current client, what are their uses, grumblings and with different elements whether they are a dreary client or not on the off chance that they are not what is the reason and so forth. That will dependably obtain new clients and to know the issues one can confront ahead of time and get the resolutions appropriately
Item Non utilizes organization ought to screen whether after buy item is being utilized or not utilized. If not utilized or less utilized then it ought to proactively reach to the client and comprehend what is the issue he's confronting and ought to attempt to determine their issue and ensure he gets the advantages for which he expected his buy
Protest administration there ought to be a legitimate dissension administration so one ought to address the grievances of buyers post buy
Clients manual-appropriate clients manual ought to be given to clients so he may mindful of how to utilize the item according to coveted utilize
Observing of new clients there ought to be a legitimate monitoring arrangement of new clients with the goal that organization can come to think about post buy conduct of the customers sand react convenient to maintain a strategic distance from any disappointment
Input there ought to dependably be a criticism system which ought to cover sizable lump of all the purchaser to get their reactions.
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