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Customer Satisfaction & Brand Loyalty in Consumer Electronics Market: Study on Apple Inc.

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Customer Satisfaction & Brand Loyalty in Consumer Electronics Market: Study on Apple Inc.

Mohammad Hossain

Amberton University


The principle agenda of this research paper is to illustrate the importance of customer satisfaction and brand loyalty in the retail industry. The retail industry being the highly competitive field that it is, being able to fulfill customer expectations and demands becomes the most essential element in order to get sustainable growth and profit margin (Bateson, 1991). This research paper will try to study and analyze the measures taken up by the Apple stores in USA to satisfy the needs of its customers. It would also establish the role customer satisfaction plays in the success of Apple stores. Though previously a lot of research has been conducted in this field this research would increase the knowledge about the importance of customer satisfaction in the growth of the industry. Apple is one of the main multinational organizations in the world, with its base situated in United States the organization increases in 364 retail stores everywhere throughout the world, and its immense customer base is the prime compel behind its prosperity.

Customer Satisfaction & Brand Loyalty in Consumer Electronics Market: Study on Apple Inc.

The purpose of study is to determine the satisfaction level of the customer satisfaction and brand loyalty in consumer electronics based on apple retail store in Texas, USA

The aim of this project is to establish the importance and significance of customer satisfaction and brand loyalty for the sustainable growth and profit of a company, thus in order to establish that this research would study the different customer satisfaction policies of the Apple stores of USA. The research also aims to establish how the inability to provide the desired customer satisfaction can take a severe toll on the customer base of a company. The objectives behind carrying out this research are as follows:

  1. Examine the effect of product quality on customer satisfaction and brand loyalty in consumer electronics industry.
  2. Examine the impact of innovation in technology on customer satisfaction and brand loyalty in consumer electronics industry.
  3. Examine the impact of services of Apple on customer satisfaction and brand loyalty in consumer electronics industry.
  4. To analyze the customer satisfaction policies and services that has been taken up by the Apple stores in USA.
  5. To collect various facts and figures of the Apple stores in USA.

This research is an effort to get a better understanding of customer satisfaction and the impact of product quality, service quality and price on it. Furthermore, it also pays attention to the brand loyalty that yields from customer satisfaction.

Significant of study

When we talk about customer satisfaction, we usually refer to marketing which states how services and products live up to the expectations of the customers (PW Farris, 2010). It is very important for a firm to meet the satisfactory goals of its customers, so that they can attain customer loyalty. An organization makes its employee focus on fulfilling the needs of the customers. With happy and content customers, the customer satisfaction ratings for the organization soars up. Many organizations have to compete with one another to maximize the customer satisfaction ratings to enhance customer and brand loyalty. Sales and feedback depends on how much the customers are satisfied with the firm and its products. The customer service centers as well as the customers giving their comments on websites or through email can gain feedback. Customer satisfaction can be described as gratification of customers’ needs and wants. There are two main determinants of customer purchasing behavior, which are service quality and product quality. There are less steady of the influence in the product and apparent influence on price in past customer satisfaction studies. They also stated that price is one of the most important factors in yielding customer satisfaction.

USB, a different universe's driving research firm led a study that what rate of individuals will keep on buying the same Smartphone which is produced by a similar organization to their current use. The research comes about demonstrated that 89% of the general population said that they will proceed with the use of their product and they will overhaul their gadgets to a similar brand when it is the ideal opportunity for an update yet they won't be changing to different brands. Surveys are led practically consistently by various firms just to see where diverse technological organizations remain when contrasted with the others, researches have demonstrated that apples foundation of brand devotion is the most contrasted with another Smartphone’s.

Study from the GFK research firm shows, that as compared to another Smartphone’s, apple is on the top when it comes to building brand loyalty. 84 percent of the people said that they buy iPhone again when they will replace their mobile model, 60 percent of the people using Smartphone’s with android software said that they will continue using the same software while only 48 percent of the people said that they will stay loyal to phones like blackberry (Chen & Ann, 2016).

Customers are the backbone of any company or organization they are the people who make a business successful, so customer satisfaction becomes an essential part of all the industry just like the retail industry (Fornell, 1994). If the customers get pleased with the services and products of the company they become loyal to the firm and also praise them resulting in the word of mouth publicity for the organization, thereby contributing in its growth and profit as well. Thus, to identify the importance of customer satisfaction this research would study the policies and growth of Apple stores in United states America and collect various data and statistics that traces the growth of their business with respect to the customer satisfaction. Apple being as successful as it is proving to be a perfect specimen for the case study in order to illustrate the importance of customer satisfaction in the growth of a business.

Review of Literature

Many studies have been conducted regarding the relationship between customer satisfaction and brand loyalty as this topic is of utmost importance to all the organizations in the world. The following chapter provides prior researches based on the relationship between customer satisfaction and brand loyalty.

The primary goal of businesses is to hold customers and draw in new ones. This relationship has been highlighted in one of the articles in which diverse strategies have been utilized by different purchaser electronics manufacturer to pick up consumer loyalty and after that in the long run advantage from client loyalty. The couple of strategies utilized by organizations are things like a total store only for their own particular products where potential customers can experiment with their products and in the event that they have any trouble in utilizing their products they are given full help. Another brilliant move by different organizations is to deliver correlative products, for example, utilizing a specific application or software all together for the gadget to work appropriately. The entire control over equipment, software makes mark loyalty for the client and the demonstrate of that is when buyers line up before their stores evenings before their product's dispatch. Hence, consumer electronics manufacturers realize that it is important for its customers to be satisfied with their products and this is why they have a strong brand loyalty (Panagiotelis, 2014).

A report of Oracle gives a different perspective of relationship between customer satisfaction and brand loyalty (Meakins & Abraham, 2003). According to the report, in any industry or business, it costs more to attract and satisfy the customer than to retain them. It suggests that organizations successful at keeping loyal customers lower marketing costs, greater brand value, reduced customer sensitivity and improved financial results.

A report analyzing the relationship of the different dimensions of brand loyalty suggests that customer satisfaction is essential to brand loyalty although it does not necessarily generate brand loyalty. Some authors suggest that there is an asymmetric relationship between loyalty and satisfaction. However, many authors emphasize the importance of satisfaction for gaining loyalty and state that a satisfied customer tends to be more loyal then another customer who is bound by time restriction or lack of information (Don E Schultz, 2000).

Some researchers also say that the consumers may not be as loyal to any given brand as their ancestors, they sure are brand loyal to brands but chances are very high that they do not remain loyal to their ancestors’ brands (Bennett & Rundel-Thiele, 2005). This can in view of generation crevice and the quick changing pace of technology. This is the principle reason brands like Apple, Blackberry and HTC are rising. Not just the new generation is changing to more up to date forms to technology additionally more established generations as these have made life simple. Individuals tend to change brands not just on the grounds that they are not satisfied or have had terrible experiences but rather additionally, in light of the fact that they need to keep up the social class image and status. The brand loyalty cycle is said to be rise up out of five periods of brand loyalty: the introduction of brand loyalty, the brilliant time, inert, birth of multi mark loyalty lastly the decrease. For any company, it is very important to satisfy its customers with products live up to their expectations. Customer satisfaction is seen as tool that would enhance the company’s sales as well as reputation. To improve brand loyalty, it is vital to increase satisfied customers. Communication is the key to derive feedback from the customers and capture their views, both positive and negative, which makes the company understand what changes to implement. In addition, companies need to find effective ways to reach customers and their needs. With happy customers comes loyal customers and with loyal customers any company can expect increase in their future sales. There are whole departments that are based on customer satisfaction services to boost brand loyalty amongst customers (Lam S. , Ahearne, Hu, & Schillewaert, 2010).


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