Critically Evaluate the Effectiveness of Viral Marketing on Customer Retention with Apple (GC01478)
Chapter 1: Introduction
1.1 Research background
Viral trading sectors particularly throughout have played a significant role in the business achievement of the recent modern industrial sector. The fast industrial improvement, mostly in a smartphone, the internet and social network has been giving more chances to the companies for proposing services and products to the customers (Larsen, 2009). Besides, many people in the recent world have been utilizing methods such as the internet, mobile phone, social media in their purchasing methods of service and products from any companies (Wilson, 2005). As a result, traders are demanding to draw attention to this huge consumer section and create them maintain them by modern trading sectors. Thus, the methods such as the internet, mobile phone and social media etc are extensively being applied because viral trading approaches in digital business companies such as Apple, United Kingdom to develop their consumer reliability stage (KIK, 2010), where developed consumer reliability is important for organizations to achieve its business purposes and aims because an enlarged business share with customer reliability develop profit margin and sales revenue, and decrease generally business functioning revenues (Mullins, 2007). Still, now many companies containing Apple have unclear thoughts about the accurate efficiency of viral trading sectors throughout these methods on consumer retention and retention. Thus, the proposed learning has raised the efficiency of these viral trading sectors on consumer reliability level based on a specific business called Apple situated in the United Kingdom. Next, the assignment has recommended the Apple how it could apply the viral trading sectors more efficiently to develop its consumer reliability level.
A multi-channel retailer known as Apple situated in the United Kingdom. It proposes a diversity of industrial goods, services and solutions to both personal and industrial companies (Apple, 2014). Apple had been increasing rapidly in its business sectors due to its ease of civilized technologies, stores locations and dedicated and loyal personnel. (Dixons Retails, 2014). However, the active and extremely demanding business with economical contention, slow growth and new entrants in the financial system are influencing Apple’s customer maintenance level and business shares (Gartner, 2014).
Developing business shares and consumer reliability levels with improved profits and sales revenues have been a matter for tools apparatus retailers containing Apple. The main reasons for this are reasonable slower financial growth and marketplaces (Gartner, 2014). Additionally, the industrial improvement, mostly in mobile phones, the internet and social Media are proposing several methods to the traders and challengers to draw attention to customers and discriminate businesses. Apple has been achieving some business shares throughout viral trading sectors, but it has been observing challenges in its consumer retention, retention and acquisition.
Larsen (2009) showed that viral trading sectors applying numerous digital equipment and technologies impact on developing consumer maintenance level importantly and business shares. Therefore, many equipment organizations are not capable to improve outcome approaches of applying viral trading sectors utilizing methods like social mobile phones, social media and the internet to draw attention to consumers and maintain them (Kozinets et al., 2010). Thus, it has considered profound deliberation of Apple to assess the efficiency of viral trading sectors in the method of its consumer reliability development.
1.2 Problem statement
Though the traders containing Apple have been using viral trading approaches, they were not confident about the accurate influence stage of its on consumer retention and retention stage. Additionally, the several trading approaches used by challengers in places of markets are influencing Apple’s consumer retention and retention stages with reduced profit margins and sales revenue. Additionally, companies containing Apple did not have enough understanding and knowledge on consumer attitudes to viral trading sectors.
Thus, the proposed study will concentrate on customer behaviours in viral trading sectors. The research will calculate the customers’ opinion of viral trading methods such as mobile phones, social media and the internet in cases of their buying attitude and purchasing methods. These calculations would be skillful throughout overestimating and underestimating visitor’s numbers. The study will observe the importance of following the result applying these approaches. The outcome of the research will conduct the Apple how it could influence consumers throughout viral trading sectors with its improved raising tendency in the recent modern industrial sector. The result of leadership would be acceptable evaluating and monitoring the consumer behavior to viral trading sectors in contrast with predictable trading sectors. Lastly, the research will widen Apple’s perceptive on customers’ attitudes to its viral trading sectors and the components that make effectual viral trading campaigns.
1.3 Research Rationales
1.3.1 What is the research issue?
Apple has been observing competitions by violent new entrants and challengers, organization challenges, financial instabilities that are influencing profit and sales depressingly (Dixons Retail, 2014). Additionally, technical development in mobile phones, the internet and social media are varying customer buying attitudes (Gerzema et al., 2009). Thus, the planned study work will assess the efficiency of viral trading approaches to industry Apple’s modern services and products to discriminate industry sectors and to develop market profit margin, sales and share.
1.3.2 Why is it an issue?
As Qualman (2009) notes, 76% of customers buy services and products by persuading of other’s thoughts where only 15% persons purchase impacted by usual trading. It means customer network is more significant than a demographic system to control in a society (Yang and Allenby, 2003). Additionally, the viral trading sector is not expensive as social media trading (Hill et al., 2006). Therefore, as Watts et al. (2007) note, a mix of viral trading and social trading is known as “Big Seed Marketing” give more conventional result to the traders than viral trading. Additionally, dependable consumers only talk about with others when they were not pleased with any services or products ( Bowman and Narayandas, 2001).
1.3.3 Why is it an issue now?
The huge variations in tools mostly social sites are influencing customers purchasing attitudes more than usual methods (Gerzema et al., 2009). Thus, viral trading could be established in the Apple industry to receive competitive benefits.
1.3.4 What could this research shed light on?
This study will assess the efficiency of viral trading sectors to business modern goods and to improve business share and consumer reliability with developed profits and sales. Secondly, the research will validate the result of viral trading in contrast with social media trading. Lastly, the research will suggest to Apple if only viral trading or merge of viral trading and social trading must be improved in its organization.
1.4 Research aims and objectives
1.4.1 Aims
The goals of the proposed study work are to assess the efficiency of viral trading sectors to give guidelines and suggestions for Apple to support its consumer reliability.
1.4.2 Objectives
1) To discover the aspects of viral trading generally applied in the recent business sector
2) To observe influences of viral trading on companies’ consumer reliability.
3) To discover the active viral trading methods applied by Apple to support its consumers.
4) To assess the influence of Viral trading on consumer reliability of Apple.
5) To discover weaknesses in Apple viral trading sectors
6) To suggest the Apple how it could utilize the viral trading approaches more efficiently to develop its consumer reliability.
1.5 Research Questions
1.5.1 Key question
How can Apple promote viral marketing campaigns to improve its customer retention?
1.5.2 Sub-questions
- Which methods of viral marketing are effective to improve customer retention?
- Which customer segments should be focused on to promote viral marketing?
- What methods of viral marketing campaigns are being used by Apple to improve its customer retention?
- What are customers’ opinions and views on Apple’s present viral marketing campaigns?
- What are gaps in existing viral marketing methods used by Apple to promote customers?
- How Apple can fill these gaps to improve its viral marketing campaigns to improve customer retention.
1.6 Research hypothesis
H0 = Viral trading sectors do not influence consumer reliability.
H1 = Viral trading sectors influence on developed consumer reliability importantly.
1.7 Research Time Table
1.8 Summary of Chapter
This assignment has briefed the study environment, research rationales, study problems and study purposes and goals with study theories and questions. The objective of the study work is to assess the efficiency of viral trading sectors throughout several approaches such as mobile phones, the internet and social media on the consumer acquisition and retention where the result of the study will suggest Apple how it could develop its viral trading approaches to develop its consumer reliability stage.
2. Literature Review
2.0 Introduction
This assignment has significantly reconsidered the recent understanding and knowledge containing methodological and theoretical distributions and substantive results to the efficiency of viral trading sectors on consumer reliability. This review of literature has managed based on information arriving from several secondary resources containing educational textbooks and journals, statistical reports, websites, etc. The review of literature has categorized into six parts. In the first part, the idea of viral trading has reconsidered in contrast with usual trading. Next, the several types of approaches and methods applied in viral trading have been reconsidered. After that, the advantages and disadvantages of viral trading in cases of business achievement have reconsidered. In the second step, the idea of consumer reliability and its significance in achieving companies’ purposes and aims have reconsidered. In the third part, the efficiency of viral trading on consumer reliability has been reconsidered. In the fourth stage, what techniques and tools of viral trading are being applied in the active company of Apple have reconsidered. Lastly, the study objectives and opportunities that appeared from a review of literature have been decreased and the relation between the active researches and the learning completed by the study have been created…………..
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