The aim of this thesis is to investigate and identify reasons for brand loyalty of the Apple-iPhone brand in Germany and to make recommendations for customer relationship and brand managers. The methods used are secondary and primary, quantitative research, with a cross-sectional online survey consisting of a 5-point Likert scale.
Brand loyalty is operationalized as switching intention, based on prior research. The theoretical background shows that there are two contrary views when investigating switching intention. On the one side, there is the conventional perspective with the motivation of functional utility maximization. People are motivated to switch a brand, when they believe they will gain perceived value, which is the customer’s overall assessment of the utility of a product based on perceptions of what is received and what is given. On the other side, there is the social identity theory perspective with social mobility as motivation. Social mobility refers to a person’s attempt to part him- or herself from a group. With regard to brands, this implies that customers switch brand identities, when they believe they identify themselves more with another brand.
Those two perspectives have been tested using two hypotheses with an online survey and 111 valid responses of Apple-iPhone users in Germany. The independent variables perceived value, customer brand identification and procedural switching costs were investigated using items from prior research. Items by an advanced theory of the technology acceptance model were used for perceived value. To analyze the data descriptive, reliability, correlation and regression analyses have been applied.
In conclusion, customer brand identification and procedural switching costs shows an equally strong significance for predicting switching intention. Perceived value could not be measured, since it did not pass the stepwise multiple regression analysis.
Table of Contents
1. Introduction
2. Theoretical background
2.1. Theory of reasoned action (TRA)
2.2. Technology acceptance model (TAM)
2.3. TAM2
2.3.1. Social influence processes
2.3.2. Cognitive instrumental processes
2.4. Identity theory (IT)
2.5. Social identity theory (SIT)
2.6. Customer-company identification (CCI)
2.7. Customer-brand identification (CBI)
2.7.1. Conventional perspective
2.7.2. SIT perspective
2.8. Hypotheses
3. Methodology
3.1. Data gathering
3.2. Data analysis
3.2.1. Descriptive analysis
3.2.2. Reliability analysis (Cronbach’s alpha)
3.2.3. Descriptive statistics after items were excluded
3.2.4. Correlation and regression analysis
4. Analysis and discussion of results
5. Conclusions
5.1. Scientific implications
5.2. Practical implications
5.3. Critical evaluation
Research Objectives and Core Themes
The primary aim of this bachelor thesis is to investigate and identify the underlying reasons for brand loyalty—operationalized as switching intention—among Apple iPhone users in Germany. The study employs both the conventional perspective of functional utility maximization and the Social Identity Theory to understand why consumers remain loyal to the Apple brand, ultimately providing actionable recommendations for customer relationship and brand managers.
- Analysis of brand loyalty through the lens of Social Identity Theory and Theory of Reasoned Action.
- Evaluation of customer-brand identification (CBI) versus functional perceived value (PV).
- Empirical quantitative research via an online survey targeting German iPhone owners.
- Examination of procedural switching costs as a control variable in maintaining brand relationships.
Excerpt from the Book
2.7.2. SIT perspective
Lam et al. (2010, p.134) draw from Stryker’s (1968, p.560) work to define CBI as the extent to which a customer perceives a focal brand’s identity as having higher self-relevance than the identity of another brand in the same product category. When a customer identifies more strongly with a certain brand than with a competing brand, relative CBI of the focal brand is strong and this brand’s identity is more salient. As SIT and IT posit, only the most salient identity forms the basis for action (Stryker 1968, p.560; Lam et al. 2010, p.134). With its relevance to the self and self-identity, relative CBI influences switching behavior as SM (Lam et al. 2010, p.134).
CBI was measured using six items. The cognitive dimension consisted of two items (Lam et al. 2010, p.136). A Venn diagram that shows the overlap between consumer identity and brand identity and a verbal item to describe the identity overlap in words (Lam et al. 2010, pp.136-137). Lam et al. (2010, p.137) measured consumers’ affective identification with the brand using two items and another two items to evaluate whether the consumer thinks the psychological oneness with the brand is valuable to him or her individually and socially.
The introduction of a radically new brand creates an identity threat to current brands. Even when customers who have identity-based relationships with the incumbents decide to endure, they will cope with the disruption by engaging in identity-based comparison (Lam et al. 2010, p.135). In doing so, these customers are driven by social creativity (Lam et al. 2010, p.135; Tajfel and Turner 1979, p.43). Customers of an incumbent brand engage in motivated reasoning that is biased in favor of the current brand. Social creativity increases the desirability of the incumbent brand’s identity while playing down the attractiveness of the new entrant’s identity. As long as social creativity is successful, customer’s identification with the present brand will dominate their identification with the new brand.
Summary of Chapters
1. Introduction: This chapter provides an overview of Apple Inc.'s global brand status and emphasizes the importance of emotional customer association and brand communities.
2. Theoretical background: The chapter establishes the theoretical framework by exploring the Theory of Reasoned Action, the Technology Acceptance Model, and various identity-based theories including Social Identity Theory.
3. Methodology: This section details the quantitative research approach, the design of the online survey, and the statistical methods used to process the collected data.
4. Analysis and discussion of results: This chapter interprets the statistical data, validates the research hypotheses, and discusses the significance of the identified switching drivers.
5. Conclusions: The final chapter summarizes the scientific contributions, provides practical strategies for managers, and offers a critical evaluation of the research limitations.
Keywords
Apple iPhone, Brand Loyalty, Switching Intention, Social Identity Theory, Customer-Brand Identification, Perceived Value, Procedural Switching Costs, Quantitative Research, Germany, Consumer Behavior, Technology Acceptance, Brand Community, Relationship Marketing, Identity Theory, Online Survey.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis investigates the primary reasons behind the brand loyalty of German Apple iPhone users by examining why they intend to continue purchasing Apple products after their current contracts expire.
Which theoretical frameworks are used in this research?
The study utilizes the Theory of Reasoned Action (TRA), the Technology Acceptance Model (TAM/TAM2), Identity Theory (IT), and Social Identity Theory (SIT) to analyze brand loyalty.
What is the central research question?
The research seeks to determine what factors drive the brand loyalty of the Apple iPhone brand specifically within the German market.
What scientific methodology was applied?
The researcher conducted a quantitative study using a cross-sectional online survey of German iPhone users, applying descriptive statistics, Cronbach’s alpha for reliability, and multiple regression analysis.
What main topics are explored in the main body?
The main body covers the traditional economic perspective on brand switching (Functional Utility Maximization) versus the social identity perspective, alongside the empirical data gathering and validation of hypotheses.
Which keywords best characterize this work?
Key terms include brand loyalty, customer-brand identification (CBI), perceived value (PV), social identity theory (SIT), and switching intention.
How does Social Identity Theory influence the findings?
The theory suggests that consumers use brands to define their self-concept; the study finds that this identity-based connection is a stronger predictor of loyalty than functional utility over time.
What practical recommendations does the author provide?
The author advises managers that financial incentives are often ineffective for customers driven by identity-based loyalty; instead, companies should focus on building stronger sociopsychological bonds to immunize the brand against switching.
What was the outcome regarding perceived value?
Interestingly, the study found that perceived functional value was a non-significant predictor in the stepwise multiple regression analysis, indicating that psychological bonding is more critical than functional benefits for this user group.
What is the role of procedural switching costs?
Procedural switching costs were found to be a highly significant factor in preventing users from switching, showing an effect strength almost equal to that of customer-brand identification.
- Arbeit zitieren
- Bachelor of Arts Mona Carolina Frank (Autor:in), 2013, Investigating and identifying reasons for brand loyalty of the Apple-iPhone brand in Germany, München, GRIN Verlag, https://www.hausarbeiten.de/document/288909
