Behavioral Economics Biases/heuristics in Apple Products
Framing is the process of encouraging customers to compare features of a new product with a reference of a frame that they may be familiar with. Apple makes their customers’ feel that upgrading their iPhones provides a new experience and identity.
Social proof occurs when one feels pressured to purchase a product because everyone in their circle has bought it (Sutardi, 2020). Apple customers have a habit of buying a new iPhone upon its release hence influencing each other.
Anchoring refers relying on pre-existing information to form a judgement (Amron, 2018). Apple customers anchor their buying decision on their previous experiences.
Partial ownership makes the customer feel committed to a brand or product. Apple makes their customers feel as part of a club hence maintain their loyalty.
Relation of Apple Biases/heuristics to BE
With the release of a new product, Apple provides their customers with new exciting features in terms of product design, memory, and technology (Sutardi, 2020). Customers are caught by these upgrades and want to experience. more from the products. Apple has managed to make their customers feel as if they belong to a particular social circle where they influence their buying behavior (Coget, 2011). Buying a new iPhone makes one be perceived as b2eing in a higher class than others. Apple stores also contributes significantly towards th2eir success as they provide customers with experience they do not wish to withdraw from.
References
Amron, A. (2018). The Influence of Brand Image, Design, Feature, and Price on Purchasing Decision of Apple iOS Smartphone in Surakarta, Indonesia. The International Journal of Social Sciences and Humanities Invention, 5(12), 5187-5191.
Coget, J. F. (2011). The Apple Store Effect: Does Organizational Identification Trickle Down to Customers?. Academy of Management Perspectives, 25(1), 94-95.
Phillips-Melancon, J., & Dalakas, V. (2014). Brand rivalry and consumers’ schadenfreude: The case of Apple. Services Marketing Quarterly, 35(2), 173-186.
Sutardi, E. R. (2020). The effect of global identity towards customer purchase intention of apple products with perception of luxury value as the mediating variable in Jabodetabek (Doctoral dissertation, Universitas Pelita Harapan).