Research Presentation: iPhone Day2

Mark M. Lennon, Ph.D.December13th, 2010

Research Philosophy

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Research Philosophy

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Qualitative Research

“A Process of Inquiry……and a

Product of that Inquiry.”

(Eisenhardt, 1990)

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Case Study Research

“A research strategy which focuses on

understanding the dynamics present

within single settings, of either single or

multiple organizations.”

(Yin, 1984; Eisenhardt, 1989) 5

Monetizing MobileFactors InfluencingDevelopment of Mobile CommerceKorea, China, Japan

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The iPhone

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How iPhone Innovators

Changed Consumption Patterns in iDay2: Hedonic versus UtilitarianMark M. Lennon, Ph.D. and Emilio Arruda, Ph.D. under Second Round Review at Elsevier’s International Journal of Information Management

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iDay2 (noun)the day iPhone 4 was released as dubbed by “Apple Acolytes”

Hedonic (adjective)

pleasure

Utilitarian (adjective)

useful9

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Research Questions Were iPhone consumers during the first

release purely pleasure seeking, hedonic users?

Did consumers become more utilitarian with successive iPhone releases?

Were changes in consumer preferences due to lack of new features?

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Research Methodology: Nethnography

From R V. Kozinets (1997) “X-Philes”: “A branch of ethnography that analyses the free behavior of individuals on the internet.”

“Can be faster, simpler, and less expensive than ethnography, and more naturalistic and unobtrusive than focus groups or interviews.” 12

Data Source:

Everythingicafe.com

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Research Design

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A Typical Satisfaction Post“ I thought I wanted the BlackBerry Storm, but my boss got one and she couldn't even find where to check her text messages ……I loved my iPhone just a little bit more after that.” P2, L45-48 (from transcript coding)

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Qualitative Data Coding

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iDay1: iPhone v1June 29th, 2007

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iPhone v1 Features Tactile Interface (novel haptic

experience) 2.0 Mega pixel Camera (no video) Text Messaging (+$20 unlimited) ( no

MMS) Triangulation Via Cell Towers (No

GPS) 8 GB Black model $399 w/ ATT 2 Year

Contract 16 GB Black or White model $599

w/Contract

Battery Life of 10 Hours iPhone OS 1.0 iTunes & App Store (approx. 500

programs)

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Hedonic Preferences

“well im a gadget guy so ill buy the new iphone when it comes out regardless. surely it cant be worse than what we have now” P12, L63-65. (from transcript coding)

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Hedonic Preferences

“…to those who say they are gonna wait don’t you all feel like me and want that phone so bad? I think we are all denying the fact that we want one and are trying to convince ourselves otherwise, lol”. P15, L51-54

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User Positioning

“Guys love to hack and jailbreak, so almost all of the iPhone owners I know are men”P2, L25-26

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iPhone 3G July 11th, 2008

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iPhone 3G Features Tactile Interface (no longer novel) 2.0 Mega pixel Camera (still no

video) GPS with Google Maps Text Messaging (still no MMS) 8 GB Black model $199 w/ ATT 2 Year

Contract

16 GB Black or White $299 w/ 2 Year Contract

Ten Hour Battery (5 Hours with GPS)

iPhone OS 2.0 iTunes & App Store (approx. 3,000

programs)

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Frustration

“I am returning my upgrade today! The battery does not hold a charge and I have to charge it at least twice a day! Not worth it!” P7, L40-41

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Disappointment

“How come there is no frickin video on this thing yet? Blackberry’s got it, and higher megapixel camera too…..when is Apple gonna gain a clue???” P9, L27-32

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Price Concerns

“so I just need to know is there any way I can get it at a cheaper price? …if I break my contract, I’ll have to work all summer just to pay for a phone! “ P14, L15-18

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iPhone 3GSJune 25th, 2009

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iPhone 3GS Features Tactile Interface (old news) 3.0 Mega pixel Camera with Video GPS with Google Maps Instant Messaging (yet still no

MMS) 8 GB Black model $199 w/ 2 Yr ATT

Contract

16 GB Black or White $299 w/ 2 Yr Contract

10 Hour Battery (same GPS drain)

iPhone OS 3.0 iTunes & App Store (approx. 85,000

programs)

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Waiting For Real Benefits

“I think you should wait till 2011 for the 4G phones to come out.......nobody know if the 3GS is faster, they don’t have it yet.........id say wait till at least next year” P14, L21-25

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Carrier Concerns

“wait till next year, when there's a chance of 4G, a chance of it being on Verizon's network, a chance of a redesign...maybe even get MMS” P14, L52-L53

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In Contrast: Apple Acolytes“Crazy how much of an obsession something like this can be Wonder how many people will be up all night watching the UPS tracking site..” P15, L57-59

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In Contrast: Apple Acolytes

“I consider myself hooked on music and love iTunes with my iPhone…but when will they increase storage so I can ditch my iPod?” P16, L2-4

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Research FindingsWere iPhone consumers during the first release purely pleasure seeking, hedonistic users?

Yes. Nearly 75% of Postings on iDay1 expressed hedonistic reasons for purchase, disregarding issues of price and function.

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Research FindingsDid consumers become more utilitarian with successive iPhone releases?

Yes. Over 80% of the successive iDay2 and iDay3 posts expressed utilitarian purchasing decision points such as costs, desire for greater functionality, and willingness to wait for later models. 34

Research Findings Were changes in consumer preferences due to lack of new features?

Yes. Nearly 65% of Postings on iDay2 and iDay3 made reference to a disappointment with lack of new, sophisticated features(e.g. video) and disappointment with performance (e.g. battery life).

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Hedonic versus Utilitarian

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Future Research: Asia

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Future Research: Asia

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Future Research: FinanceDoes the announcement of new iPhone products impactApple’s (AAPL) share price?

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Wharton’s Eventus

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Thank you!

Questions?

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