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Global Marketing in the Smartphone Industry

The selected business industry for this scenario is the smartphone industry. The business research topic is customer satisfaction and value perception.

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The purpose of the global marketing research is to find the impact of consumer perceived value (CPV) on a smartphone purchase intention. Maximizing CPV is a major challenge for technology companies. Smartphone brands globally have the product image projected to the public and there is a need for consistent analysis of CPV in relation to new technology as a point of contention for future purchases. Major companies that have failed to do so such as Nokia or Blackberry have largely failed. Due to the rapidly changing smartphone market, it is critical for smartphone companies to leverage competitive advantages to maximize CPV and secure market share (Haba et al., 2017).

In the article, the research design is based on a positivism research philosophy, with the information collected through the study is derived from sensory experience and perspective knowledge of the latest generation smartphone consumers (Haba et al., 2017). Meanwhile, in the U.S. traditional research philosophies are being challenged, such as with emphasis on secondary data and organizations attempt to mix secondary and primary data to investigate business issues (Hair Jr. et al., 2017). The global marketing article investigates whether the smartphone has perceived usefulness, economic value, and ease of use for the consumer. It is indicative of more individual phone purchases (Haba et al., 2017). Meanwhile, marketing research from the US, according to Yazdanparast & Tran (2020), focuses greatly on the ecosystem and social perspective, with referral behaviors based positive consumer experiences being a lead factor, that then places a person within a specific technological ecosystem.

Haba et al. (2017) found that perceived usefulness, economic value, and some brand image have an indirect effect on smartphone purchase intention. Meanwhile, social value and perceived easy of use do not have an effect. This is countered significantly by U.S. marketing studies where social value among smartphones is one of the highest factors. The article utilized multiple methods of data analysis including demographic profiles, reliability test, sample adequacy, confirmatory factor analysis (CFA) and structural equation modeling (Haba et al., 2017). Similar methods are used in U.S. marketing research alongside Harmon One Factor Test to determine influence of biases and exploratory factor analysis used for common methods variance in surveys.

A competitive environment is a dynamic system where a business competes and functions. Therefore, the more sellers of a similar product or service, the more competitive the environment. The smartphone market is one of the most competitive markets due to the number and size of the competition as well as high barriers to entry with consumers, globally, that can easily shift brands. Market research has the key function of identifying and analyzing the market, consumer needs, market drivers, and competitors. For example, Haba et al. (2017), although it is academic not commercial market research it seeks to investigate a key parameter in for marketers, which is the consumer perceived value that commonly reflects on intention to buy. The dynamic shifts in a competitive environment create value in research firms and marketing experts that can successfully develop methods and concepts that will help to better understand and serve marketplaces around the world (Hair Jr. et al., 2017).

The economic factors in the market targeted plays a role on what products are offered and they are presented to the consumer. As evident from the case study, the consumers in global markets, particularly developing nations may look for significantly different elements in the same product – a smartphone. Products have to be adapted to local economies in features and price. For example, Apple iPhone smartphones are the best-selling phones in the Western markets due to their luxury brand perception, ecosystem, and high feature set commonly at a high price. However, the company continuously fails to capture more than a few percentage of the largest Eastern markets such as China and India because of price as well as a general lack of appeal in comparison to cheaper efficient smartphones from Samsung or Chinese alternatives that incorporate virtually the same features at a slightly lower quality but at a district price difference. Other economic factors may play a role such as production locations, i.e. despite being manufactured in nearby China, those same iPhones are marked up by as much as 30% in India compared to the US due to import tax and distribution costs.

Both social behavior and culture play major roles in global marketing because marketing ultimately exists in an environment shaped by culture. Organizations marketing globally must first and foremost consider the sensitive cultural factors and social factors at work. Ignoring them will likely cause the marketing program to fail, because even with smallest differences between countries, this can play role. Everything ranging from language to customs and taboos can be interpreted highly different globally; thus, creating the necessity to recognize environmental influences. Using the example of the smartphone market, Yalcin & Cimendak (2012) found that advertising in the Middle East, as a potential region, there will always be cultural and religious values at play, and despite a strive towards Westernization. Therefore, while smartphone marketing may be focused on individualism in the West, more traditional and family values are common in the East.

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Haba, H. F., Hassan, Z., & Dastane, O. (2017). Factors leading to consumer perceived value of smartphones and its impact on purchase intention. Global Business and Management Research: An International Journal, 9(1), 42-71. Web.

Hair Jr., J. F., Celsi, M. W., Ortinau, D. J., & Bush, R. P. (2017). Essentials of marketing (4th ed.). McGraw-Hill Education.

Yalcin, E. & Cimendag, I. (2012). Global marketing advertising with cultural differences. Web.

Yazdanparast, A., & Tran, G. A. (2020). Smartphone experience, satisfaction, and referral: an ecosystem perspective. Journal of Marketing Communications, 1–24. Web.

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