Ipod Business Case Study

Target Market

Initially, iPod was targeted to teenagers and travelers. Later it became a necessity for everyone who wants to listen to music. The target market grew as the hype of iPod spread like fire in the forest. It formed a community of its own, and anyone who did not belong to it was considered an alien. The ease of use, and the stylish looks attracted people of all demographics, and there was no specific target market defined. Moreover, the teens play a major role in the growth as they gave the iPod an image of being young and trendy (D’souza 2005). Nonprofit organizations Pew Internet and American Life Project conducted telephone interviews of a sample size of 2,200 people in order to define the market for iPod. The study revealed that consumers who fall under the demographics of young age, high income and techno savvy are highly inclined to purchase the iPod. (Cnet News, 2005). In the year 2005, “There were 22 million adults who owned iPods. In the US, this means 13 per cent of men have an iPod, as compared to 9 per cent of women. Interestingly, 16 per cent of African-Americans and English-speaking Latinos have music players, compared to just 9 per cent of non-Latino whites, the report explains. Age demographics reveal that 14 per cent of people of age group 29-40 have iPods; as do 11 per cent of those around 41-50. Just 9 per cent of 18-28-year olds and 6 per cent of those aged around 51-59 have an Apple music player. Finally, 6 per cent of those 60-69 have them, while 1 per cent of those 70 and older have them.” (Macworld, 2005). Apple targets the iPod towards customers who need to listen to music on the go. It consists of people who belong to various professions, which include students, corporate workers, entrepreneurs and even housewives.

Role of Individual Factors

Perception

There are several individual factors which are related to the iPod. Firstly, the sensory receptors like vision, touch and hearing. The iPod looks simple yet classy, stylish and attractive. The wheel below the screen for the controls is an innovative technology and was never seen before. The screen size was large enough for people to see the songs list and other functions. The materials used to build the iPod are of high quality and smooth to touch (Varian, 2007). The wheel has touch sensing ability for voice controls. The word iPod has the initial ‘i’ which is makes it sound light and attractive. Also, the product is a digital music player which plays all the favorite tracks of the owners. Behavioral pricing is used as the quality is high of the iPod and therefore the pricing is high when compared to its competitors. It is normally hedonic consumption as mostly all sensory organs are associated with it and the purchase decision for specifically iPod cannot be justified. Also, it provides a feeling of being young and trendy, and a certain