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Final Research Report Campaign Research Methods

SCOM 388-001 Dr. Yeonsoo Kim

The Banana Group Danielle Cote, Christina Gillespie, Jenna Scull, Julia Smith, Dara Stevens

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Table of Contents

Executive Summary 3

Introduction 5

Situational Analysis 5

Internal Factors Analysis 7

External Factors Analysis 9

Analyzing the Publics 12

Primary Research 14

Introduction 14

Research Questions and Hypothesis 14

Methods 18

Results 20

Conclusion 23

Limitations and Future Study 25

Bibliography 26

Appendix

A. Final Questionnaire 32 B. IRB Form and Informed Consent 35 C. Focus Group Proposal 44

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II. Executive Summary

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Client

Apple Inc. is a global technology company that develops luxury electronic products, software, and offers mobile payment services as well as online information/storage services.

Issue statement & Focus of the Project

In early December, analysts and customers reported a significant slow down in the operation of the older iPhone models. The slow down came with the 10.2.1 update. Customers speculated that Apple was slowing down iPhones to encourage them to buy the newer versions. Consumer groups and governments around the world “have filed complaints, opened investigations and sued Apple” (Toh, 2018). The focus of this project is to look in-depth at the problem Apple faced at the end of 2017, how people responded to the problem and how Apple repaired their image.

Key findings of the secondary research

Apple Inc.’s biggest strength is their generally positive reputation. They are known to produce reliable products made with premium materials and state of the art technology. Their products appeal to a variety of demographics all across the world. Internally, Apple Inc. has a strong belief in inclusion and diversity and since 2014, has worked hard to balance the split between men and women within their company. At the the end of 2017, Apple’s response to the battery slow down issue was fairly quick and detailed.

On the other hand, Apple Inc. has many notable weaknesses. The company has a high

level of secrecy and lacks transparency, which is apparent in their limited amount of social media participation. Additionally, Apple lacks transparency even amongst their employees, who are often kept out of the loop. Lastly, many view Apple’s response to the battery slow down as a major weakness. The company’s proposed “simple fix” is still an extra cost for consumers and not as straightforward as it appears.

Yet, with weaknesses come opportunities. Apple has the chance to deliver on their

promise with the new iOS 11.3 update which is supposed to allow customers the option to opt out of the battery slow down. Additionally, Apple can start to participate more across their social media platforms. They already have a combined 16+ million followers on Facebook, Instagram and Twitter. All together, these technology and public relations efforts can help Apple regain their positive reputation.

Despite these opportunities, there are also several threats to Apple. The biggest threat is

the more than 30 lawsuits that have been filed in the United States against Apple. Additionally, other groups, prosecutors and councils in South Korea, France and China have taken action as well (Toh, 2018). Besides the threats surrounding the battery slow down issue, environmental

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groups and labor activist groups have not been shy about expressing their dismay over working conditions in Chinese Apple factories. These impeding legal issues are a major threat for Apple.

Strengths, Weaknesses, Opportunities, Threats

Strengths ● Have a generally positive reputation ● Promotes diversity and inclusion

within top executive roles ● Response to battery issue was fairly

quick and detailed ● Eye catching commercials and

advertising ● Appeals to a variety of demographics

Weaknesses ● High prices ● Recent loss of internal inspiration ● Negative corporate culture ● “Simple fix” for battery issue is still

an extra cost for consumers ● Lack of transparency and high level of

secrecy (no social media)

Opportunities ● A future update will provide

consumers with the option to opt out of the battery slow down

● Millions of followers across social media platforms

● High visibility ● Recent popularity increase in Apple

Music

Threats ● More than 30 lawsuits have been filed

across three continents with the possibility of more lawsuits to come

● Protest from international labor activist groups

● Competition from Samsung on the international markets

Key Publics

Key Publics #1 People angered by Apple’s lack in transparency over the battery slow down issue.

Key findings of the primary research

Issue People angered by Apple’s lack in transparency over the battery slow down issues feel betrayed. Apple’s reputation and promise to produce reliable products is being questioned. Those who feel betrayed want an apology, an option to opt out of the battery slow down and more transparency from Executives at Apple. Organization The battery slow down issues ultimately affect Apple’s stocks and customers, its reputation, and attitudes toward the company. It is not clear whether those outraged by the slow down are

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content with Apple’s first apology statement. Many argue that the company’s proposed “simple fix” is still an extra cost for consumers and not as straightforward as it appears. Communication The key publics utilize personal communication channels such as word of mouth, as well as social media channels such as Facebook, Twitter, Snapchat, personal blogs, and YouTube. This public includes long time loyal customers, influencers (includer tech bloggers), and those who have recently issued lawsuits against Apple. Demographics/ Psychographics The key public spans across age groups, gender, and location across the world. Apple’s target market for the iPhone, among other products, are male and females ages 20-45 (Dudovskiy, 2018). Benefit Statement Apple can provide transparency on this issue in a detailed video or informational brochure. This information can explain why Apple decided to slow down iPhones and how Apple plans to reverse any inconvenience they caused.

IV. Secondary Research

A. Introduction

Apple Inc. is an American technology company that produces and sells electronics, software and online services. Apple was founded by Stephen Wozniak and Steven Jobs in the Jobs family garage during the ‘70s. Their revolutionary product was the Apple II, a stand-alone personal computer that offered a color display and other features that appealed to the average person. Since Apple’s inception, they have grown into a multinational tech company with products such as the iPhone, iPad, Mac personal computer and Apple TV (Levy, 2017). In November of 2017, Apple reached $900 billion market value (La Monica, 2017).

In December, Apple was accused of intentionally slowing down batteries for the older

iPhone models. Apple confirmed the accusations but clarified that slowing down phones prevented sudden shutdowns (Nellis, 2017). They received backlash on social platforms, such as Twitter. More than 30 lawsuits have been filed in the United States against Apple for not being transparent about the slow down. Other groups, prosecutors and councils in South Korea, France and China have taken action as well (Toh, 2018). The focus of this project is to look in-depth at the problem Apple faced at the end of 2017, how people responded to the problem and how Apple repaired their image.

B. Situation Analysis

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On December 16, Primate Labs, a company that creates tools for performance monitoring, published data that showed iPhone 6s and iPhone 7 performance slows down as they age (Nellis, 2017). Primate Labs’ post came two months after the release of the iPhone 8 and a month after the release of iPhone X. Customers and analysts were quick to argue that Apple was slowing down older phones to encourage them to buy the newer phones (Kottasova, 2017).

Batterygate, referring to the slowdown crisis, was most popular between December 31 through December 6 (Battery, 2018). Apple recieved backlash on Twitter. Jeff Zenisek posted to Twitter “Since Apple admits they slow down old iPhones I’ll admit I probably won’t buy a new iPhone” (2017). Users threatened to change phones including Martin Weiss, Austrian ambassador to Israel, “Ok. That strategy by Apple to slow down my iPhone in order to make me buy a new phone totally worked. Happy owner of an Android phone now. Bye” (2018). While the crisis was most popular in December, the crisis received some interest sporadically into April. Between April 18 and April 27, 26 tweets with a reach over 100,000 have been made with #batterygate (#batterygate, 2018).

Apple is facing legal action across three continents. More than 30 lawsuits have been filed in the United States against Apple for slowing down phones without customer permission. An advocacy group in South Korea filed a civil suit claiming destruction of property. Another advocacy group in France filed a complaint that it is against the law “to deliberately shorten the lifespan of products in order to make consumers buy new ones” (Toh, 2017).

Since Apple started receiving backlash, they have taken multiple tactics to respond to the criticism. On December 28, Apple issued this statement on their website:

“We’ve been hearing feedback from our customers about the way we handle performance for iPhones with older batteries and how we have communicated that process. We know that some of you feel Apple has let you down. We apologize. There’s been a lot of misunderstanding about this issue, so we would like to clarify and let you know about some changes we’re making. First and foremost, we have never — and would never — do anything to intentionally shorten the life of any Apple product, or degrade the user experience to drive customer upgrades. Our goal has always been to create products that our customers love, and making iPhones last as long as possible is an important part of that.”

After apologizing, Apple launched into an explanation of why their phones slowed down.

Apple explained that customers may experience slow downs after their iOS 10.2.1 update. While the iOS 10.2.1 update reduces load times, it also prevents unexpected shutdowns. After releasing the apology statement, Apple reduced the price to replace the battery of iPhone 6 or lower. The price dropped from $79 to $29. In addition, they will potentially offer a rebate for customers who replaced batteries at full price (Fiegerman, 2018). On January 22, Apple gave a rare sneak peak at the iOS 11.3 update. In the new update, customers will be given the the option to opt out of the slow down. Despite Apple’s efforts to ease the unrest, they may still experience trust issues among their customers for Apple’s history of secrecy, even among their own employees (Eadiciccio, 2017). If the battery issue is not handled properly, Apple is at risk of losing customers and trust. By researching people’s awareness of the crisis, perceptions of Apple and intentions to purchase products, then we may be able to determine how effective Apple’s response strategies have been and what Apple’s next steps should be.

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C. Organization Analysis

1. Internal factors Analysis

a) Structure

History

Apple Inc., formerly known as Apple Computers, Inc., was founded in April 1976, by co-founders Steve Jobs and Steve Wozniak (Levy, 2017). The concept originated from a lifelong dream of creating a personal computer. With little support or interest in his design by Hewlett-Packard Company, where Wozniak was interning, the partnership was forced to blossom in the Jobs’ family garage (Levy, 2017).

Jobs and Wozniak’s first creation was the Apple I. The Apple I was a stand-alone machine, sold without a monitor, keyboard, or casing.In 2001, Apple introduced iTunes, a computer program that allows customers to listen to music and convert it to MP3 format. Within the same year, Apple released the iPod, which was a portable MP3 player. . Apple further developed iTunes and in 2003 began selling major record company songs over the internet. In January 2007, Jobs released the iPhone which was being labeled the “revolutionary mobile phone.” In addition to itunes and phone capabilities the phone featured a new tool known as an internet communicator. In 2017, the company released its most recent version of the iPhone known as the iPhoneX (Kelly, 2017).

Today, Apple employs over 130,000 people and operates 492 stores in over 19 countries (Dunn, 2017). Over 700 million people worldwide have an use an iPhone (Reisinger, 2017).

Mission

Apple does not have an official mission statement posted on their website. However, they do end their press releases with the following statements: “Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it (Apple, 2018).”

Personals

Tim Cooke is the CEO of Apple and is a member of the Board of Directors. Cooke received an MBA from Duke University and a Bachelor of Science degree in Industrial Engineering from Auburn University (“Apple Leadership,” 2018).

Kate Adams is the general counsel and senior vice president of Legal and Global Security at Apple. Adams received a bachelor’s degree in Comparative Literature from Brown University and a law degree from the University of Chicago Law School (“Apple Leadership,” 2018).

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b) Performance

Apple currently sells a variety of products including: Mac, iPad, iPhone, Apple Watch, Apple TV, Apple Music, iTunes, HomePod, iPod touch, and a number of accessories. Additionally, they offer many services including: Internet services, iCloud, AppleCare, and Apple Pay.

At the end of the 2017 fiscal year, Apple released its fourth quarter financial report. Apple had a quarterly revenue of $52.6 billion, this number is up 12% from the same quarter last year (“Apple reports,” 2017). Apple stock has a quarterly earning of $2.07, an increase of 24% from the quarter prior (“Apple reports,” 2017). Apple has a generous cash flow of $15.7 billion and was able to return $11 billion to investors. Apple is expected to experience continued success (“Apple reports,” 2017). The company estimated forward-looking estimations of revenue between $84 and $87 billion and a gross margin around 38% (“Apple reports,” 2017).

Apple is known for innovative products and high prices. Some find these prices to be too high in relation to the quality and features. Gordon Mah Ung,Executive Editor of PCWorld, acknowledges the willingness of consumers to pay these high prices but pointed out , “But with Apple basically coming out with a new laptop that doesn’t outperform PCs in most metrics and will be again surpassed in one quarter (Crothers, 2016).” Others do not see it as a problem at all. Rhonda Alexander, Director of Tablet and Notebook PCs, notes that these ‘high prices’ “ are completely in line with the changes that Apple has been making across its other product lines. The iPhone average price increased with the introduction of the larger smartphones, as did the iPad average with the launch of the iPad Pros (Crothers, 2016).”

c) Internal impediments

Apple’s most serious internal impediments have to do with their work environment. Some employees feel they are held to unrealistic expectations. Don Melton, the former director of internet technologies, said “ If you forwarded something to one of your people at 1 o’clock in the morning and they didn’t reply promptly, you got a little annoyed at them (England, 2015).” Melton also recounted how employees were expected to work even on Sunday, because they must be prepared for the executive meeting on Monday. Additionally, Apple lacks transparency even amongst their employees. Dave Black, the former engineer and solutions architect, says “Secrecy was part of the culture- you simply didn’t talk internally or externally about what you were working on unless it was a need-to-know situation (England, 2015).” Black also discussed how this secrecy was used a motivation tool by Apple to keep different internal project teams working hard to outdo one another (England, 2015). This level of secrecy creates unnecessary competition. Rather than feeling comfortable and finding support amongst fellow coworkers, you are constantly trying to outdo them. Lack of transparency in combination with unrealistic work hours creates instability which is experienced both at work and at home.

Another internal impediment is the recent loss of innovation. Many speculate that after the loss of Steve Jobs the company has lost all internal inspiration. It now appears much of their inspiration comes from other companies products. For example, Apple released similar technology to Amazon’s echo over two years after Amazon released it (Sydell, 2017).

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d) Ethical base

Apple Inc. has a strong belief in inclusion and diversity. The company works hard to promote both diverse teams and diverse perspectives. Apple has worked hard to balance the split between men and women within their company. They have raised the percentage of women employees under thirty 5% to 20% since 2014. Additionally, they have put women in powerful positions. 29% of leaders at Apple are women, 39% of those leaders are under the age of 30 (“Inclusion & Diversity,” 2018).

Apple holds their supplies to a strict code of conduct that demands safe working conditions, fair treatment of workers, and environmentally safe manufacturing. Apple works closely with their supplies to educate them on how to achieve these standards and continuously assesses their progress (“Supplier responsibility,” 2018).

e) Niche

Apple is more than just a leader in electronics. The brand is perceived by consumers as an all around luxury brand. Apple has secured the position as a luxury brand by producing reliable products made with premium materials and state of the art technology. They also offer their products at a high price and limit the available quantity (Yarow, 2015). Recently, Apple has continued to expand their connection to the luxury market by offering products that include fashion pieces like the apple watch and home decor like the Homepod (Yarow, 2015). Additionally, Apple a number of services and features available to on Apple customers and accessible through apple products.

f) Communication audit

One major way Apple communicates with their consumers is through their special event presentations. These are commonly held as a way to release new products, software updates, and other important information. These events are held at various company owned locations and are live streamed on their website and youtube for consumers to experience the event live. Apple also has a digital newsroom accessible through their website which releases annual reports and news.

Aside from these events Apple uses their website as their main channel of communication with their customers. They have used their front page as a way to communicate their solution to their recent battery crisis.

Apple has a number of social media accounts including Twitter, Facebook, and Instagram. They have over 1.6 million followers on Twitter and 11 million likes on Facebook. However, the only one they post consistently on is Instagram. They utilize their accounts for sponsored advertisements rather than generating content (Leswing, 2016).

2. External factors analysis

a) Supporters

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Supporters of this company are primarily customers. Please refer to the “Customers” section under “Public Anaylisis” for more information about Apple’s customers.

Apple employees are also supporters of the company, especially after Apple’s generous $2,500 bonus after the US government passed a new tax plan (Gurman, 2018).

Millenial’s increasing use of social media also supports Apple’s business. The growth of instagram and Facebook provides people an outlet to share their photos taken from their phones. Apple provides people a one-stop-shop for sharing personal content with friends and family. In addition, to access social media on the go, one must have the app downloaded from the App Store (powered by Apple) and installed on their iPhone or iPad (Molla, 2017).

b) Competition

Apple’s competitors include other technology companies. According to Investopedia (2017) companies like Samsung, Intel, Microsoft, Google, Sony and Nokia are on the radar, but not most peoples’ “go to” product.(Leisman, 2017). Apple’s Annual Report (2016) stated, “(Apple’s) competitors that sell mobile devices and personal computers based on other operating systems have aggressively cut prices and lowered their product margins to gain or maintain market share.” Apple’s annual report goes further to say Apple Music and Video services have seen an increase in competition with streaming services such as Spotify, Pandora and Netflix (Apple, Inc, 2016). In addition, Apple has competition on the international market. Samsung, LG and Sony are all Asia based technology companies that compete with Apple overseas. In 2016, Samsung held 20% of the global smartphone market beating out Apple who held 14.5% of the market (Perez, 2017).

c) Opposition

Apple’s opponents are labor activist groups. Apple products are made in China where employees get paid very little. In 2013, China Labor Watch conducted an investigation at an Apple factory in Suqian, China. They found “excessive overtime work, long work shifts while standing, insufficient social insurance, a lack of occupational safety training and heavy dust in the workplace” (Axelrad, 2014). Overall, the China Labor Watch investigation found 22 violations in the one factory. Environmental groups also have an issue with Apple’s China factories. According to Ramzy (2011) a Chinese non-governmental organization found 27

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environmental problems at Chinese manufacturers that produce Apple devices. Most cases have been due to the heavy metal pollution from production in addition to workplace hazards. Despite these accusations, Apple publishes a responsibility report annually. The report addresses environmental and workplace hazards (Ramzy, 2011).

d) External impediments

Apple’s main external impediment is backlash from customers after Apple admitted to slowing down older phones. This caused an uproar because Apple was hiding the intentional slow down from its customers. Apple provided a simple fix for unsatisfied customers: reducing new batteries to $29 from $79. Despite this seemingly simple solution, customers are not happy. Secondly, environmental standards have always been set in place to protect the earth from harmful production and dumping. Since Apple and other technology companies are so large, they can throw their weight around when it comes to new and updated environmental standards. Since these standards are enforced by third parties, like Green Electronics Council, and not the government, Apple can get away with cutting corners. These third party organizations can not force Apple to do abide to their environment standards, so theses organizations will continue to butt head with Apple (Statt, 2017).

3. Public Environment

a) Visibility

Apple has excellent visibility. Apple doesn’t put out the most ads compared to other tech companies. However, the ads that Apple puts out are engaging and striking. Jeri Smith wrote, “These commercials are hard to ignore” (2017).

b) Reputation

According to Fortune Magazine, Apple ranked 20th on the Reputation Institution’s Global RepTrak 100 for the first quarter of 2017. The Reputation Institution asks participants to rank businesses based on products, services, workplace and performance. Apple's rating puts it behind Google, Sony and Microsoft. Apple has also noticed a drop off from their 10 place ranking in the first quarter of 2016 as well as a 2 place ranking from 2011 (Reisinger, 2017). Apple has a generally positive reputation. Customers are loyal and typically buy more than one Apple product (King, 2015). IPhones and MacBooks are popular among universities, businesses and for personal use. As Apple develops new and updated products, customers are purchasing and updating their old devices.

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As of late, Apple has admitted to slowing down old iPhones and shorten the battery’s life. This may have caused a potentially lower reputation. Our research plans to investigate whether Apple’s reputation has changed from the battery crisis.

c) Media environment

As previously mentioned, Apple participates in limited amounts of social media. However, they gain lots of media attention from articles and news stories. If one simply looks up Apple and battery, countless articles about Apple's battery crisis appear. For example, James Vincent wrote an article for the Verge about how his iPhone was affected by the battery. Vincent went on to write about how frustrated he is because Apple has been pushing people to upgrade their phones rather than repair their current phones (Vincent 2018). Another example is an article written by CNN about how to fix your iPhone. This article explains the different routes one could go to fix a broken iPhone battery. The three options include having Apple fix the battery, going to a third-party service or replacing the battery yourself. Sanicola concludes the article by urging readers to have Apple fix it themselves (Sanicola 2018).

D. Publics Analysis

1. Identifying Publics

a) Customers

Apple has a wide base of customers. Apple targets different customers on a product to product basis (Martin, 2016). Older males and affluent families used to be the primary consumers of Apple products (King, 2015). Apple’s target market for the iPhone, iPad, iPod and Mac are male and females ages 20-45 (Dudovskiy, 2018). Research shows Asian and Hispanic are the two ethnicities that buy Apple products the most (InfoScout, 2015). Average Apple customers are in the bachelor, newly married couple, full nest 1 or full nest 2 life stage (Dudovskiy, 2018). Also primary consumers do not have children and earn roughly more than $125K (InfoScout, 2015). Potential Apple customers include those who are loyal to other tech brands, those with money to spend on luxury products, under 25 year old female consumers and those looking to switch brands.

b) Producers

Apple employs over 130,000 people and operates 492 stores in over 19 countries (Dunn, 2017). Apple creates most of the designs, marketing plans and software for its products in the U.S but does much of the manufacturing and outsourcing of products in other countries (Minasians, 2017). Apple partners with several other

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technology companies to make parts that will be used in Apple products. For example, the touch ID sensor is made by Taiwanese companies,TSMC and Xintec. Although Apple outsources materials from several countries, China is where most parts are produced. In the future Apple might change the source of its outsourcing from China to India (Minasians, 2017). Apple’s investors and stockholders paired with an impressive revenue are what enable the company to perform all its necessary functions.

c) Enablers

While Apple does have its share of limiters, it also has many enablers. One of the major enablers of Apple inc. is their loyal customer base (Martin, 2017). Customers often wait in extremely long lines just to receive the latest Apple products. Competitors even poke fun at the loyalty of Apple consumers in some of their recent commercials. Social media has also been a more recent enabler of Apple as more sponsored advertisements appear on consumer feeds and Apple’s increased social media presence via Instagram (Nudd, 2017).

d) Limiters

Apple’s primary limiter is its competitors. Apple has different many different products and services each with their own competition. Some of Apple’s main competitors are Samsung, Intel, Microsoft, Google, Sony and Nokia (Investopedia, 2017). These competitors have the same target publics but have the main advantage of having a lower price tag. Some of these competitors also make parts for Apple products. Apple’s opponents consist of individuals or groups that are unhappy with Apple products and policies. Unhappy customers spreading negative reviews allow for the slowing down or stopping of Apple’s success. In addition, there are social activists groups who are concerned about the effects of prolonged iPhone and iPad use on children’s development.

e) Intercessory publics, and opinion leaders

Apple’s opinion leaders are made up from several sources such as social media influencers/bloggers, celebrity endorsements and Apple’s CEO Tim Cook. Social media influencers and technology bloggers are a vast source of opinion leaders for Apple as they have a large influence on the millennial segment of the target publics. The target market is heavily influenced by those reviewing products on social media platforms because seem unbiased and relatable on a peer level (Rohampton, 2017). Informal opinion leaders such as family members, neighborhood leaders and friends are also influential when convincing the target market, especially the older end of the spectrum. In their advertisements for the new iPhone X, Apple uses average looking people to simulate the target publics they want to sell to. Apple uses celebrity endorsements for their new hardware as well as their online services. One of the more recent examples of using celebrity endorsements for their online services is by taking concepts from James Corden's

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Carpool Karaoke and making that into a segment on Apple Music. Apple also recently used celebrity endorsement for a hardware item by using music from popular artists for the animoji feature in their new iPhone X (“Animoji”, 2018). Tim Cook, Apple’s CEO, does a majority of the communication for new products and keynote speeches at conferences.

In regards to the current issue at hand, CEO Tim Cook, technology bloggers and social media influencers are the primary opinion leaders. Several tech bloggers and social media influencers have taken their opinion of the situation and presented it on social media platforms such as Twitter and YouTube. Apple CEO,Tim Cook has offered public statements/apologies on the matter of the battery issue.

V. Survey Primary Research

A. Introduction

With this research we are hoping to understand the effects of the battery crisis and the steps Apple to fix the problem. Specifically, we want to gain a better understanding about the attitudes, perceptions, and opinions of Apple and their battery crisis. The main concepts we will explore are the current awareness of the battery crisis of its customers, familiarity with the battery crisis, perceived severity of the crisis, awareness of crisis communication, awareness of communication channels, and intent to purchase. With this research we want to learn what the public thinks of Apple as a company, the battery crisis, and the steps they took to remedy the problem. This survey will provide our client with valuable information and insight into the minds of the consumer. This information will help the client have an understanding of how the customers view them and how to better resolve future issues.

B. Literature Reviews

Hypothesis/Research Questions & Theoretical Rationales

Current Awareness of Crisis Apple’s Customers

The current awareness of a crisis will give us the scope of how large this crisis is, what the impacts could be, and what this could mean for the future (Gomm, 2017). Awareness also helps to measure the familiarity and opinions about a company's products and services (Market Street Research, 2013). In terms of Apple's crisis, when we know how many people have been affected by the crisis, we will be able to develop a plan for Apple to completely resolve the currently issue and to be prepared for a future issue.

RQ1. What is the current awareness of Apple’s PR crisis among its customers?

Familiarity with Crisis Response

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Familiarity is defined as the quality of being familiar or a state of a close relationship

(Merriam-Webster, 2018). In terms of this study, it is important to understand familiarity of the crisis response to gauge whether Apple's response was effective or not. If customers are unfamiliar with the crisis response, we need to understand why the response did not reach them. In addition, it is important to understand if the response was perceived as positive or negative.

RQ2. How familiar are Apple customers with the steps Apple has taken to resolve the battery issue (Crisis responses)?

Perceived severity of incident

Severity has been previously defined in public relations crisis reputation research as the damage generated by a crisis including financial, human, and environmental damage (Coombs and Holladay, 2002). This is important to measure because it has been proven that the perceived severity of a crisis effects the perception of crisis responsibility (Coombs and Holladay, 1998). The higher the perceived severity of the crisis the more the public will hold the organization responsible. The Apple battery crisis did have financial effects for many users who ultimately had to upgrade there batteries. With this being said, it is important for us to understand the perceived severity of the crisis so we can determine how big of an effect this could have on the companies reputation.

RQ3. What are the customers perceived severity of the incident? Awareness of Apple’s Communication Channels

Awareness of Apples methods of communication is important to measure because this

will affect the reach of their crisis management strategy. If customers do not know where Apple communicates with them they cannot find important information like their solution to the Apple battery crisis. Additionally, according to Forbes, a golden rule for PR crisis management is to monitor, plan, and communicate (Council, 2017). This is why it is essential for us to gain information on how many customers know about the communication methods of Apple.

RQ4. What are Apple’s customers awareness of Apple’s major methods of communication?

Apple’s reputation

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In our secondary research, we found that Apple has a generally positive reputation. Customers are loyal and typically buy more than one Apple product (King, 2015). To test this secondary research finding we are measuring Apple’s customer perceptions of Apple’s reputation. Defined by Laura Tucker and T.C Melewar in their 2005 study, corporate reputation is the “perception that stakeholders have of the organization and the way in which this is perceived as ‘good’ or ‘bad’.” According to Van der Heijden, Verhagen and Creemers in their 2003 study, “the larger perceived reputation, the greater the trust in the company.” More trust in the company can lead to an increase in sales. It is important to measure reputation after a crisis to understand customers perceptions of Apple’s corporate responsibility and corporate ability. This information will help our customer determine the reach of their crisis management strategy.

RQ5. What were Apple’s customer perceptions of Apple reputation? What are Apple customers current perceived reputation of Apple?

Purchasing intentions of Apple customers

There is strong brand loyalty to Apple. As Apple develops new and updated products, customers are purchasing and updating their old devices. Measuring the motivational factors customers are influenced by will help us understand why customers continue to purchase and repurchase Apple products, even after Apple experiences a crisis. According to Merriam- Webster, motivations are defined as a “stimulus” or “influence.” When we know which motivational factors, such as brand loyalty, product quality, or price, are stimulating college students’ intent to purchase, we will gain more insight into Apple’s appeal and the values college students possess.

RQ6. What are the motivational factors for students to buy products from Apple?

Intent to purchase based on value of luxury

Previous research has shown that people associate social and economic status with well known high end brands (Han, 2010). Apple is known as one of the most famous luxury electronic brands (Kapferer, 2017). As stated earlier, Apple has strong brand loyalty and one of the reasons for this is because of customers wanting to show their status with Apple products (Yarow, 2015). Due to the appeal of Apple being seen as a luxury brand people might be more inclined to buy an iPhone over other brands when purchasing a phone (Yarow, 2015). Based on the following discussions this hypothesis is formulated to determine if valuing high end products makes one more likely to buy Apple products:

H1. JMU students who value high end products are more likely to purchase Apple products.

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Intent to purchase based on value of innovation

Apple used to be viewed as one of the main innovative technology companies but that has changed (Pisano, 2015). Other companies such as Samsung have even started mocking Apple’s lack of innovation with their iPhones in recent commercials (Warren, 2017). Apple’s lack of innovation has caused some customers to think about switching to other phone brands (Palmer, 2017). These information suggests people who value innovation might not be as likely to purchase Apple products. Based on this discussion this hypothesis was formed:

H2. JMU students who value innovation are less likely to purchase Apple products. Those affected by slowdown attitudes towards Apple Consumer groups and governments around the world “have filed complaints, opened investigations and sued Apple” (Toh, 2018). Local news stations have called into question Apple’s reputation due to the slow down and the implication that the cause of the slow down is to get customers to purchase new phones (Kelly, 2018). Loyal customers are not pleased with how Apple has handled the situation and has loudly voiced their opinion on the matter (Palmer, 2017). With most of the conversation about Apple being negative due to the slow down especially from Apple users themselves it led to this hypothesis, testing how being affected by the slowdown affects attitude towards Apple: H3. JMU students who have Apple products that have been affected by the battery crisis will show more negative attitudes toward Apple. Effects of Apple products on purchase intentions

Students who are currently enrolled at JMU for the Spring 2018 students who have an iPhone 7 or older model will be considered for this hypothesis. With the 10.2.1 update, iPhone 7 and older models were intentionally slowed down to prevent sudden shutdowns of the phone (Nellis, 2017). The intent to purchase is how likely it is that our participants buy another Apple product. Intention is defined by Merriam-Webster as “a determination to act in a certain way” (Intentions, 2018). Apple customers have indicated on social media that they might not buy another Apple product. Jeff Zenisek posted to Twitter “Since Apple admits they slow down old iPhones I’ll admit I probably won’t buy a new iPhone” (2017). By testing this hypothesis, we will determine if the crisis had an effect on the sales of Apple products.

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H4. JMU students who have Apple products that have been affected by the battery crisis will be less likely to purchase products from Apple in the future

Effects of Awareness of Crisis on Attitudes of Apple

Awareness is defined by Merriam-Webster as “having or showing realization, perception or knowledge” (Awareness, 2018). For our hypothesis, we are determining how much knowledge our participants have of the crisis. When students are more aware of the crisis, they will view Apple more negatively. Matt Luce tweeted “@Apple slowing down my #6s and making it #glitchy after the software updates doesn’t make me want to buy upgrade to the newest #iPhone it makes me want buy a different brand. Thanks #iPhoneSlowdown #annoyed #goodtry #goodbye” (2018). By testing this hypothesis, we can determine a relationship if Apple’s image repair helped change Apple’s reputation more positive.

H5. JMU students who are more aware of the Apple’s battery crisis will show more negative attitudes toward Apple.

C. Methods

1. Sampling method

The scope of this study includes students at James Madison University (JMU). A total of 328 students participated in the “ College Students’ Perceptions of Apple’s Battery Crisis”. 161 students completed the survey through JMU’s SONA system which offers extra credit to students who complete surveys. The remaining 167 students completed the survey through the link provided to them by bulk email.

Over 700 million people worldwide have an use an iPhone (Reisinger, 2017). According to Chegg (2015), Apple products top the charts with college students. 51% of students prefer an iPhone over a Samsung smart phone. Apple tops HP 40% to 15% when it comes to laptops. Lastly, Apple dominates tablet sales over Microsoft and Samsung (Chegg, 2015). Because of college students’ preference for Apple products, they seemed to be an appropriate sample when considering perceptions of this company.

2. Data collection and procedures

An online self-administered survey methodology conducted through Qualtrics and SONA applications was used to collect the data. Bulk email invitations for participation in the survey were sent out to all JMU undergraduate students (20,682). Among the invited students

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476 participated. Respondents with incomplete survey answers were excluded. Respondents were asked questions regarding Apple’s reputation, their awareness, attitude, intent to purchase, motivational factors and perception of severity regarding Apple’s iPhone battery slowdown. On average the survey took 10 minutes to complete.

3. Measurements

Awareness of Crisis

To measure awareness of crisis, we listed five statements. Participants gave their awareness of statements including (a) the Apple batter crisis is something I am aware of, (b) Apple did not tell its customers about the update that would slow down iPhones, (c) updates have slowed down older iPhones to encourage customers to purchase new phones, (d) Apple created updates that slowed down older iPhones to protect against sudden shutdowns and (e) Applies is facing lawsuits from customers because of the crisis. Each item was measured on a five-point Likert scale where 1 meant not at all aware and 5 meant very well aware. Awareness of Communication Efforts

To measure awareness of crisis communication efforts, we listed three statements. Participants gave their awareness of (a) Apple’s statement explaining the crisis, (b) Apple reducing the price for replacement batteries and (c) Apple’s promise of an update that allows customers to opt out of the slow down. Each item was measured on a five-point Likert scale where 1 meant not at all aware and 5 meant very well aware. Perception of Severity of Crisis

To measure perception of severity of crisis, we listed three statements. Participants indicated how strongly the agreed or disagree with statements including (a) Apple’s battery crisis should be treated seriously, (b) Apple’s battery crisis is a severe problem and (c) Apple’s battery crisis poses a serious threat to the public’s trust in Apple. Each item was measured on a five-point Likert scale where 1 meant strongly disagree and 5 meant strongly agree. Intent to Purchase

To measure intent to purchase, we asked participants how likely they are to buy a product from Apple. We used a five-point semantic scale for four items. Each item indicated (1) 1 meant never and 5 meant definitely, (2) 1 meant definitely do not intend to buy and 5 meant definitely intend, (3) 1 meant definitely not buy it and 5 meant definitely buy it, (4) and 1 meant probably not buy it and 5 meant probably buy it.

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Attitude

To measure attitude, we asked participants to rate apple on three five-point semantic scales. We asked them how they felt about Apple. Participants rated their attitude where (1) 1 meant bad and 5 meant good, (2) 1 meant unpleasant and 5 meant pleasant and (3) 1 meant unfavorable and 5 meant favorable. Motivational Factors

To measure motivational factors, we asked participants to indicated the importance of eight factors where a 1 indicates not at all important and a 2 indicates extremely important. The eight factors include speed, advanced features, price, popularity, product quality, brand loyalty, innovation and luxury/high end. Reputation: Corporate ability dimension

To measure reputation corporate ability dimension, we listed five statements. Participants indicated how strong they strongly disagree or strongly agreed with (1) Apple’s products are generally more advanced than any other competitors, (2) Apple’s products are sophisticated, (3) Apple’s products are of good quality, (4) Apple’s products are innovative and (5) Apple’s products are worth the investment. Each item was measured on a five-point Likert scale where 1 meant strongly disagree and 5 meant strongly agree. Reputation: Corporate social responsibility dimension

To measure reputation corporate social responsibility dimension, we listed five statements. Participants indicated how strong they strongly disagree or strongly agreed with (1) Apple is socially responsible, (2) Apple cares about their employees, (3) Apple cares about the environment, (4) Apple care about sustainability, (5) Apple tries to be a good corporate citizen and .Apple cares about society’s welfare more than other companies. Each item was measured on a five-point Likert scale where 1 meant strongly disagree and 5 meant strongly agree.

D. Results

1. Demographic information of respondents

A total of 487 respondents participated in this online survey. The average age of respondents was 18 years old (SD= 1.16), ranging from 18 to 27 years old. Most respondents were female (n=304, 62.4%) followed by males (n=179, 36.8%). Lastly, 4 people choose to not reveal their gender

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(0.8%). In terms of race, most participants were caucasian or white (n=399, 81.9%), the next most represented ethnicity was Hispanic (n=23, 4.7%), then African American (n=23, 4.7%), then Asian (n=20, 4.1%) and lastly participants who chose to not reveal their ethnicity (n=20,4.1%).

2. Test of research questions and hypotheses

The goal of the first research question one was to determine the level of awareness of Apple’s iPhone battery slowdown crisis among JMU students. The awareness levels were tested on a five-point Likert scale, one being not at all aware and five being very well aware. The participant’s average response was 3.60 with a standard deviation of 1.15. This reflects that JMU students were somewhat aware of the Apple iPhone battery slowdown.

The second research question explores the level of awareness of Apple’s communication responses to the crisis among JMU students. The awareness level of crisis response was measured using a five-point Likert scale, one being not at all aware and five being very well aware. The average response was 2.35 (SD = 1.24). The results suggest participants were between slightly aware and somewhat aware of Apple’s responses to the iPhone battery slowdown.

The third research question explores JMU student’s perceived severity of the iPhone battery slowdown crisis. Perception of severity was tested using a five-point Likert scale, one being strongly disagree and five being strongly agree. The average response of perceived severity was 4.11 (SD = 0.78). This suggests that respondents perceived the iPhone battery slow down as a severe problem.

The fourth research question explores the awareness of Apple’s communication channels among JMU students. The average participant response to questions regarding awareness of Apple’s major communication channels was 2.98 with a standard deviation of 0.93. This was measured by using a five-point Likert scale, one being not at all familiar and five being very familiar. It was found that students were slightly familiar with Apple’s major communication channels but were most familiar with Instagram and Twitter as means of communication channels.

Research question five aimed to discover JMU student’s current perception of Apple’s reputation. The perception of Apple’s reputation was tested with two questions with five-point Likert scales, one being strongly disagree and five being strongly agree. One question measured the corporate ability of Apple and the other question measured the social responsibility of Apple. The average corporate social responsibility reputation was 3.18 with a standard deviation of 0.74. The average corporate social responsibility reputation was 3.8 with a standard deviation of 0.74. This reflects that students have a neutral perception of Apple reputation in both the corporate ability and social responsibility dimensions.

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The goal of research question six was to determine the motivational factors of JMU students when purchasing Apple products. The participants average response was 4.00 (SD = 0.60). This was tested using seven-point Likert scale, one being not at all important and seven being extremely important using the categories of speed, advanced features, price, popularity, product quality, brand loyalty, innovation and if the product was luxury/high end. The results suggest that students find certain motivational factors as moderately important when purchasing Apple products with product quality, speed and price being the key factors.

The first hypothesis proposes that students who value a high end products are more likely to purchase Apple products. A regression test was run to show the relationship between high end products and intent to purchase. The test showed a positive relationship between those who valued high end products and likelihood to purchase Apple products (β= .31, p<.001). Thus, H1 was supported.

H2 proposes students who value innovation are less likely to purchase Apple products. A regression test was conducted on the relationship between value of innovation and intent to purchase Apple products. The test showed a positive relationship between respondents who value innovation and intent to purchase Apple products (β= .18, p<.001). Thus, H2 was not supported.

H3 proposed students who have Apple products affected by the battery crisis will show more negative attitudes toward Apple. An ANOVA test was run to test this relationship. As expected, participants with an iphone affected by the battery crisis had a less favorable view of Apple (M=2.31, SD=.69) that those not affected (M=2.44,SD=.60). The difference was statistically significant (f(1,483)=4.019, p<0.05), thus H3 was supported.

H4 proposed students who have Apple products affected by the battery crisis will be less likely to purchase Apple products. An ANOVA test was run to test this relationship. We found that this relationship was not supported (f(1,483)=32.779, p<.001). Thus, our hypotheses could not be supported.

H5 proposes students with iPhones who are more aware of the battery crisis will show more negative attitudes towards apple. A regression test was conducted to test the relationship between awareness and attitudes towards Apple. The results were statistically insignificant (P>0.05). Thus, our H5 was not supported.

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E. Conclusion

1. Summary

On Dec. 16, 2017, Primate Labs posted data that showed iPhone 7 and older models were slowing down. Customers claimed Apple was slowing down the phones to encourage them to buy new models of the iPhone. Over 30 lawsuits were filed against Apple. Apple responded with a statement explaining that they slowed down iPhones to prevent unexpected shutdowns. They also reduced the price to replace iPhone batteries and released an update to opt out of the slow down. Despite Apple’s response, this crisis influenced the perception, attitudes and trust from their customers. This study focuses on millenials, students at JMU, many of which own Apple products. This study examines the relationship between Apple’s slow down crisis and their customer’s awareness, perceptions and attitudes toward the technology company. These findings can be used for future implications, such as suggested actions and campaigns.

The results of this study shows that out of 487 participants, the majority of participants were female (N=304, 62.4%) and the most common ethnicity was Caucasian (N=399, 81.9%). The researchers tested a multiple variables and relationships among six research questions and five hypotheses. Research questions include: (1) what is the current awareness of Apple’s PR crisis among its customers, (2) how familiar are Apple customers with the steps Apple has taken to resolve the battery issue, (3) what are the customers perceived severity of the incident, (4) what are Apple’s customers awareness of Apple’s major methods of communication, (5) what were Apple’s customer perceptions of Apple reputation and what are Apple customers current perceived reputation of Apple and (6) what are the motivational factors for students to buy products from Apple? Hypotheses include: (1) JMU students who value high end products are more likely to purchase Apple products, (2) JMU students who value innovation are less likely to purchase Apple products, (3) JMU students who have Apple products that have been affected by the battery crisis will show more negative attitudes toward Apple, (4) JMU students who have Apple products that have been affected by the battery crisis will be less likely to purchase products from Apple in the future and (5) JMU students who are more aware of Apple’s battery crisis will show more negative attitudes toward Apple.

Out of these experiments, the following statements were reported in regards to the millennial generation: (1) participants were somewhat aware of the Apple iPhone battery slowdown, (2) Participants were somewhat aware of Apple’s communication efforts, (3) participants perceived the iPhone battery slow down as a severe problem, (4) participants were slightly familiar with Apple’s major communication channels but were most familiar with Instagram and Twitter as means of communication channels, (5) participants had a neutral perception of Apple reputation in both the corporate ability and social responsibility dimensions, (6) certain motivational factors were moderately important when purchasing Apple products with product quality, speed and price being the key factors, (7) participants who value a high end products are more likely to purchase Apple products and (8) participants who have Apple products affected by the battery crisis show more negative attitudes toward Apple.

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Although these findings are limited to the millennial generation, specifically college students, the findings could gauge Apple’s relationship with the public. These findings could be used to aid Apple to communicate with customers through channels, develop campaigns targeted at customers and maintain a positive image.

2. Theoretical implications

The findings of this study indicate how powerful product loyalty is. These findings show that customers are loyal to Apple products but do not show favorable attitudes towards Apple itself. Therefore, JMU students do not trust Apple but continue to purchase its products. We proved H3 to be correct when saying students who have an iPhone will show less favorable attitudes towards Apple. However, we also found that students with iPhones still have a strong intent to purchase products from Apple in the future. Our findings contradicts research previous done. For example Chaudhuri and Holbrook found that customers who trust a company will remain loyal to it and therefore pay high prices and buy newly released products (2001). This means that people who find a company favorable are willing to spend lots of money on that company's product.

Another study based on brand loyalty says that brands with less expensive products tend to have higher loyalty (Laurent and Rungie, 2012). However, our results differed because JMU students did not mention price to be a motivating factor. iPhones can reach up to $1,000, compared to a Samsung Galaxy S9 which costs $700 dollars (Samsung, 2018; Apple, 2018). JMU students have the option to choose a cheaper phone, but they remain loyal to the Apple products. We can not say whether Samsung has the same loyalty as Apple. However, we can correlate that students are loyal to Apple products regardless of cost.

Loyalty to tech companies is a seemingly new problem. Current studies do not investigate the relationship between favoring a brand and product loyalty. However, Robert Lustig believes that technology has the same "reward value" that is found in drugs (2018). Lustig continues to say adolescents are extremely susceptible because their brains are not done developing. It is important to remember that young adults and adolescents are the sample in this study. Therefore, JMU students may simply be addicted to their iPhones.

In conclusion, although our findings are not supported by previous research, we believe our results are correct when saying it is possible to purchase Apple products and not have favorable attitudes towards Apple itself due to the seemingly addictive features within Apple products.

3. Practical implications

The findings from this study suggest the following actions can be taken by Apple. First, our findings indicate that respondents were most familiar with Apple’s website, as well as the company’s Instagram, Twitter and Facebook accounts. When responding to the battery crisis, Apple only issued their apology on their website. To reach more customers during a crisis, all of these popular communication channels should be utilized. Since respondents were only “slightly aware” of Apple’s crisis communication efforts, Posting the apology statement on Apple’s

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Twitter, Facebook or Instagram accounts would have increased awareness. Additionally, this would have shown that Apple is willing to have open and honest communication with their clients.

Second, although Apple’s website, Instagram, Twitter and Facebook accounts were the most familiar to respondents, our results show that respondents were only “somewhat familiar” with all of these communication channels. To increase familiarity of these channels, Apple should actually post content and share information on their Twitter and Facebook accounts. Currently, these accounts exist but have little to no activity. Apple should drive more traffic to their social media accounts and then use these accounts to interact with their customers in order to increase positive attitudes toward Apple.

Third, respondents are motivated to purchase Apple products because of their quality, speed and price. Apple can use this information to their advantage and launch a campaign that highlight these factors. Knowing that students 18-24 value these factors, Apple can share the campaigns messages on Twitter, Instagram and Facebook. These are the channels the target audience is already aware of.

4. Limitations & future study

This research has its limitations. One major limitation is that the simple sampling was used and thus was limited to only JMU undergraduate college students. Also, there was a lack of racial diversity within the participants of the survey. It would be better to broaden the sample used to include other universities as to get a better representation of the college age demographic. At the beginning of the questionnaire there was a filtering question that caused 113 participants responses (out of 600) to be filtered out of the survey. This caused the sample number to be shrunken down to 487 respondents. In addition, our data could be slightly misrepresentative as a majority of our population took the survey on SONA (which is mainly completed by freshman students) and caused our average participants age to be 18 which is not necessarily representative of the college population as a whole. There was also a limitation of only being able to use bulk email and the SONA system as a means to get participants for the study and there were no focus groups or follow-up questionnaires. Overall the questions had good reliability (as reflected by high Cronbach alpha scores) but had limited validity as the researchers created the survey and had not created one before, however they have face validity as the questions were then revised by an expert in the field.

Future research should be conducted to help Apple plan their crisis communication. Researchers should consider adding follow-up questions to surveys further exploring why people think so positively of Apple as a company and where the high brand loyalty comes from. In addition, researchers should further investigate how Apple utilizes social media as communication channels.

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Overall Apple should be able to utilize these findings to better help them prepare for crises in the future. The research finds that the iPhone battery slowdown crisis was handled relatively well but there was room for improvement.

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Samsung. (2018). Galaxy S9 and S9+. Retrieved from https://www.samsung.com/us/smartphones/galaxy-s9/buy/s/Device/

Sanicola, Laura. (2018, March 13). iPhone battery troubles? 3 easy fixes. Retrieved from http://money.cnn.com/2018/03/13/technology/iphone-battery-replacement-how-to/index.html

Smith, Jeri (2017, December 6). Opinion. Steve Jobs’ Advertising Strategy is why Apple still top the market. Retrieved from http://observer.com/2017/12/steve-jobs-advertising-strategy-is-why-apple-still-tops-the-market/

Statt, Nick. (2017, August 3). Tech. Why Apple and other tech companies are fighting to keep devices hard to repair. Retrieved from https://www.theverge.com/2017/8/3/16087628/apple-e-waste-environmental-standards-ieee-right-to-repair

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Sydell, Laura. (2017). Has apple lost its innovation mojo. National Public Radio. Retrieved from https://www.npr.org/sections/alltechconsidered/2017/04/10/523035456/has-apple-lost-its-innovation-mojo Toh, M., Geier, B., & Kottasova, I. (2018, February 1). Global backlash spreads over Apple slowing down iPhones. CNN Money. Retrieved from http://money.cnn.com/2018/01/12/technology/apple-iphone-slow-battery-lawsuit/index.html

Tucker, Laura & Melwar, TC. (2015, January 01). Corporate Reputation and Crisis Management: The Threat and Manageability of Anti-corporatism. Corporate Reputation Review. Retreived from https://link.springer.com/article/10.1057/palgrave.crr.1540233

Brodie, Roderick & Cretu, Anca. (2007, February). The influence of brand image and company reputation where manufacturers market to small firms: A customer value perspective. Industrial Marketing Management. Retrieved from https://www.sciencedirect.com/science/article/pii/S0019850105001331

Vagias, Wade M. (2006). Likert-type scale response anchors. Clemson International Institute for Tourism & Research Development, Department of Parks, Recreation and Tourism Management. Clemson University. Vincent, James. (2018, March 1). I got my iPhone's battery replaced, and I'm anger Apple didn't tell me sooner. Retrieved from https://www.theverge.com/2018/3/1/17066242/iphone-battery-replacement-slowing-old-phones-waste-repair

Warren, T. (2017). Samsung returns to mock iPhone X buyers in latest commercial. Retrieved from https://www.theverge.com/2017/11/6/16611758/samsung-mocks-iphone-x-commercial Weiss, Martin. (2018, February 8). Ok. That strategy by Apple to slow down my iPhone in order to make me buy a new phone totally worked. Happy owner of an Android phone now. Bye. Retrieved from https://twitter.com/martinoweiss/status/959396206832246784 Yarow, Jay. (2015). Why apple wants you to believe it is a luxury-goods company. Business Insider. Retrieved from http://www.businessinsider.com/why-apple-wants-you-to-believe-it-is-a-luxury-goods-company-2015-3 Zenisek, Jeff. (2017, December 20). Since Apple admits they slow down old iPhones I’ll admit I probably won’t buy a new iPhone. Retrieved from https://twitter.com/jeffzenisek/status/94366113470765056 #batterygate. (2018). Tweet Reach. Retrieved from https://tweetreach.com/reports/21083699

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VI. Appendices A. Final Questionnaire

1-1. Awareness of Crisis: Please state how familiar you are with the following statements? Please circle the number which best represents your opinion.

1 2 3 4 5 Not at all aware Slightly aware Somewhat aware Moderately aware Very well aware

The Apple battery crisis is something I am aware of. Not at all aware 1 ––– 2 ––– 3 ––– 4 ––– 5 Very well aware Apple did not tell its customers about an update that would slow down iPhones.

Not at all aware 1 ––– 2 ––– 3 ––– 4 ––– 5 Very well aware Updates have slowed down older iPhones to encourage customers to purchase new phones.

Not at all aware 1 ––– 2 ––– 3 ––– 4 ––– 5 Very well aware Apple created updates that slowed down older iPhones to protect against sudden shutdowns.

Not at all aware 1 ––– 2 ––– 3 ––– 4 ––– 5 Very well aware Apple is facing lawsuits from customers because of the crisis.

Not at all aware 1 ––– 2 ––– 3 ––– 4 ––– 5 Very well aware

1-2. Awareness of crisis communication efforts: Please state how aware you are of the following

actions taken by Apple to manage the battery crisis. Please circle the number which best represents your opinion.

1 2 3 4 5 Not at all aware Slightly aware Somewhat aware Moderately aware Very well aware

Apple’s statement explaining the crisis Not at all aware 1 ––– 2 ––– 3 ––– 4 ––– 5 Very well aware Apple reducing the price for replacement batteries Not at all aware 1 ––– 2 ––– 3 ––– 4 ––– 5 Very well aware Apple’s promise of an update that allows customers to opt out of the slow down Not at all aware 1 ––– 2 ––– 3 ––– 4 ––– 5 Very well aware 1-3. Awareness of Communication:How familiar are you with the following communication channels

Apple uses to communicate with its customers? 1 2 3 4 5

Not at all Familiar Slightly familiar Somewhat familiar

Moderately familiar

Very familiar

Apple Website

Not at all familiar 1 ––– 2 ––– 3 ––– 4 ––– 5 Very familiar Facebook

Not at all familiar 1 ––– 2 ––– 3 ––– 4 ––– 5 Very familiar

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Twitter Not at all familiar 1 ––– 2 ––– 3 ––– 4 ––– 5 Very familiar

Instagram Not at all familiar 1 ––– 2 ––– 3 ––– 4 ––– 5 Very familiar

Digital Newsroom Not at all familiar 1 ––– 2 ––– 3 ––– 4 ––– 5 Very familiar

Traditional Media Not at all familiar 1 ––– 2 ––– 3 ––– 4 ––– 5 Very familiar

Other (Please specify) :_______________4-1 Not at all familiar 1 ––– 2 ––– 3 ––– 4 ––– 5 Very familiar

2-1. Perception of Severity of Crisis:Please state how strongly you agree or disagree with the following statements.

1 2 3 4 5 Strongly Disagree Disagree Neutral Agree Strongly Agree

Apple’s battery crisis should be treated seriously.

Strongly Disagree 1 - 2 - 3 - 4 - 5 Strongly Agree Apple’s battery crisis is a severe problem.

Strongly Disagree 1 - 2 - 3 - 4 - 5 Strongly Agree Apple’s battery crisis poses a serious threat to the public’s trust in Apple.

Strongly Disagree 1 - 2 - 3 - 4 - 5 Strongly Agree 2-2. How do you feel about Apple?

Bad: 1 – 2 – 3 – 4 – 5 Good Unpleasant: 1 – 2 – 3 – 4 – 5 Pleasant Unfavorable: 1 – 2 – 3 – 4 – 5 Favorable

2-3.How important are the following factors when you purchase a cell phone? Speed Not at all important 1 - 2 - 3 - 4 - 5 - 6- 7 – Extremely important Advanced Features Not at all important 1 - 2 - 3 - 4 - 5 - 6- 7 – Extremely important Price Not at all important 1 - 2 - 3 - 4 - 5 - 6- 7 – Extremely important Popularity Not at all important 1 - 2 - 3 - 4 - 5 - 6- 7 – Extremely important Product Quality Not at all important 1 - 2 - 3 - 4 - 5 - 6- 7 – Extremely important Brand loyalty Not at all important 1 - 2 - 3 - 4 - 5 - 6- 7 – Extremely important Innovation Not at all important 1 - 2 - 3 - 4 - 5 - 6- 7 – Extremely important Luxury/High End Not at all important 1 - 2 - 3 - 4 - 5 - 6- 7 – Extremely important 3-1. Intent to Purchase: How likely are you to buy a product from Apple?

Never 1--------2--------3--------4--------5 definitely Definitely do not intend to buy 1--------2--------3--------4--------5 definitely intend

Definitely not buy it 1--------2--------3--------4--------5 definitely buy it Probably not 1--------2--------3--------4--------5 probably buy it

3-2. Do you have an iPhone 7 or older model?

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Yes No

4-1 Please rate how strongly you agree or disagree with the following statements

1 2 3 4 5 Strongly Disagree Disagree Neutral Agree Strongly Agree

Apple’s products are generally more advanced than any other competitors.

Strongly disagree 1-2-3-4-5 Strongly agree Apple’s products are sophisticated.

Strongly disagree 1-2-3-4-5 Strongly agree Apple’s products are of good quality.

Strongly disagree 1-2-3-4-5 Strongly agree Apple’s products are innovative.

Strongly disagree 1-2-3-4-5 Strongly agree Apple’s products are worth the investment.

Strongly disagree 1-2-3-4-5 Strongly agree 4-2 Please rate how strongly you agree or disagree with the following statements

1 2 3 4 5 Strongly Disagree Disagree Neutral Agree Strongly Agree

Apple is socially responsible

Strongly disagree 1-2-3-4-5 Strongly agree Apple cares about their employees

Strongly disagree 1-2-3-4-5 Strongly agree Apple cares about the environment

Strongly disagree 1-2-3-4-5 Strongly agree Apple care about sustainability

Strongly disagree 1-2-3-4-5 Strongly agree Apple tries to be a good corporate citizen

Strongly disagree 1-2-3-4-5 Strongly agree Apple cares about society’s welfare more than other companies

Strongly disagree 1-2-3-4-5 Strongly agree 5-1. What is your gender?

____ Male ____ Female ___Choose not to say 5-2. What is your age?

____ years old 5-3. What is your race?

___ Hispanic or Latino ___ American Indian or Alaska native ___ Black or African American ___Native Hawaiian or Other Pacific Islander

___ Caucasian or White ___Asian ___Other

B. Approved IRB form & Informed consent

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James Madison University Human Research Review Request

FOR IRB USE ONLY: Exempt: ☐ Protocol Number: 1st Review:       Reviewer:                      Expedited: ☐ IRB:                 2nd Review:       Reviewer:                      Full Board: ☐ Received:            3rd Review:      

Project Title: College Students’ Perception of Apple’s Battery Crisis     Project Dates: From: 03/01/18   To:  02/28/19  (Not to exceed 1 year minus 1 day) MM/DD/YY MM/DD/YY

Responsible Researcher(s): Danielle Cote, Christina Gillespie, Jenna Scull, Julia Smith, Dara Stevens     

E-mail Address: coteds@dukes.jmu.edu, gillescd@dukes.jmu.edu, scull2jk@dukes.jmu.edu Stevendb@dukes.jmu.edu, smit28jm@dukes.jmu.edu     

Telephone: 540-568-6228 Department: School of Communication      Address (MSC): 2106 Please Select: ☐ Faculty X Undergraduate Student

☐ Administrator/Staff Member ☐ Graduate Student (if Applicable): Research Advisor: Yeonsoo Kim      E-mail Address: kim28yx@jmu.edu     Telephone: 568-2396      Department: School of Communication   Address (MSC): 2106    

Minimum # of Participants:  100   

Maximum # of Participants:  600    

Funding: External Funding: Yes: ☐ No: X If yes, Sponsor:      

Internal Funding: Yes: ☐ No: X If yes, Sponsor:      

Independently: Yes: ☐ No: X

Incentives: Will monetary incentives be offered? Yes: ☐ No: X

If yes: How much per recipient?       In what form?       Must follow JMU Financial Policy: http://www.jmu.edu/financemanual/procedures/4205.shtml#.394IRBApprovedResearchSubjects

Institutional Biosafety Committee Review/Approval:

Use of recombinant DNA and synthetic nucleic acid molecule research:

☐ Yes X No

If “Yes,” approval received: ☐ Yes ☐ No ☐ Pending IBC Protocol Number(s):       Biosafety Level(s):      

Will research be conducted outside of the United States?

☐ Yes X No

If “Yes,” please complete and submit the International Research Form along with this review application: http://www.jmu.edu/researchintegrity/irb/forms/irbinternationalresearch.docx.

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Certain vulnerable populations are afforded additional protections under the federal regulations. Do human participants who are involved in the proposed study include any of the following special populations?

☐ Minors

☐ Pregnant women (Do not check unless you are specifically recruiting)

☐ Prisoners

☐ Fetuses

X My research does not involve any of these populations

Some populations may be vulnerable to coercion or undue influence. Does your research involve any of the following populations?

☐ Elderly

☐ Diminished capacity/Impaired decision-making ability

☐ Economically disadvantaged

☐ Other protected or potentially vulnerable population (e.g. homeless, HIV-positive participants, terminally or seriously ill, etc.)

X My research does not involve any of these populations

Investigator: Please respond to the questions below. The IRB will utilize your responses to evaluate your protocol submission.

1. X YES ☐☐ NO Does the James Madison University Institutional Review Board define the project

as research? The James Madison University IRB defines "research" as a "systematic investigation designed to develop or contribute to generalizable knowledge.” All research involving human participants conducted by James Madison University faculty and staff and students is subject to IRB review.

2. X YES ☐☐ NO Are the human participants in your study living individuals? “Individuals whose physiologic or behavioral characteristics and responses are the object of study in a research project. Under the federal regulations, human subjects are defined as: living individual(s) about whom an investigator conducting research obtains: (1) data through intervention or interaction with the individual; or (2) identifiable private information.”

3. X YES ☐☐ NO Will you obtain data through intervention or interaction with these individuals?

“Intervention” includes both physical procedures by which data are gathered (e.g., measurement of heart rate or venipuncture) and manipulations of the participant or the participant's environment that are performed for research purposes. “Interaction” includes communication or interpersonal contact between the investigator and participant (e.g., surveying or interviewing).

4. ☐☐ YES X NO Will you obtain identifiable private information about these individuals?

"Private information" includes information about behavior that occurs in a context in which an individual can reasonably expect that no observation or recording is taking place, or information provided for specific purposes which the individual can reasonably expect will not be made public (e.g., a medical record or student record). "Identifiable" means that the identity of the participant may be ascertained by the investigator or associated with the information (e.g., by name, code number, pattern of answers, etc.).

5. ☐☐ YES X NO Does the study present more than minimal risk to the participants? "Minimal risk" means that the risks of harm or discomfort anticipated in the proposed research are not greater, considering probability and magnitude, than those ordinarily encountered in daily life or during performance of routine physical or psychological examinations or tests. Note that the concept of risk goes beyond physical risk and includes psychological, emotional, or behavioral risk as well as risks to employability, economic well being, social standing, and risks of civil and criminal liability.

CERTIFICATIONS:

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For James Madison University to obtain a Federal Wide Assurance (FWA) with the Office of Human Research Protection (OHRP), U.S. Department of Health & Human Services, all research staff working with human participants must sign this form and receive training in ethical guidelines and regulations. "Research staff" is defined as persons who have direct and substantive involvement in proposing, performing, reviewing, or reporting research and includes students fulfilling these roles as well as their faculty advisors. The Office of Research Integrity maintains a roster of all researchers who have completed training within the past three years.

Test module at ORI website http://www.jmu.edu/researchintegrity/irb/irbtraining.shtml

Name of Researcher(s) and Research Advisor Training Completion Date

Danielle Cote 1/30/2018

Yeonsoo Kim 10/11/2017

Christina Gillespie 01/30/2018

Jenna Scull 10/4/2017

Dara Stevens 1/29/2018

Julia Smith 1/29/2018

For additional training interests, or to access a Spanish version, visit the National Institutes of Health Protecting Human Research Participants (PHRP) Course at: http://phrp.nihtraining.com/users/login.php. By signing below, the Responsible Researcher(s), and the Faculty Advisor (if applicable), certifies that he/she is familiar with the ethical guidelines and regulations regarding the protection of human research participants from research risks. In addition, he/she agrees to abide by all sponsor and university policies and procedures in conducting the research. He/she further certifies that he/she has completed training regarding human participant research ethics within the last three years.

Danielle Cote 02/21/18

Principal Investigator Signature Date

Jenna Scull 02/21/18

Principal Investigator Signature Date

Dara Stevens 2/21/18

Principal Investigator Signature Date

Julia Smith 02/21/18

Principal Investigator Signature Date

Christina D. Gillespie 2/21/18

Principal Investigator Signature Date

Yeonsoo Kim 2/21/18

Faculty Advisor Signature Date

Submit an electronic version (in a Word document) of your ENTIRE protocol to researchintegrity@jmu.edu. Provide a SIGNED hard copy of the Research Review Request Form to:

Office of Research Integrity, MSC 5738, 820 Madison Drive, Burruss Hall, First Floor, Room # 109

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Following are the components for a complete research protocol. Please use this template to complete your protocol for submission. Each category must be addressed in order to provide the IRB sufficient information to approve the research activity. Please use as much space as you need, but adhere to the overall 10-page limitation.

For additional detail on each category, see: http://www.jmu.edu/researchintegrity/irb/irbsubmit.shtml

Purpose and Objectives Please provide a lay summary of the study. Include the purpose, research questions, and hypotheses to be evaluated. (Limit to one page)

In early December, analysts and customers reported a significant slow down in the operation of the older iPhone models. The slow down came with the 10.2.1 update. Customers speculated that Apple was slowing down iPhones to encourage them to buy the newer versions. Consumer groups and governments around the world “have filed complaints, opened investigations and sued Apple” (Toh, 2018). The focus of this project is to look in-depth at the problem Apple faced at the end of 2017, how people responded to the problem and how Apple repaired their image. Research Questions:

1. What is the current awareness of Apple’s PR crisis among its customers? 2. How familiar are Apple customers with the steps Apple has taken to resolve the battery

issue (Crisis responses)? 3. What are the customers perceived severity of the incident? 4. What are Apple’s customers awareness of Apple’s major methods of communication? 5. What were Apple’s customer perceptions of Apple reputation? What are Apple

customers current perceived reputation of Apple? 6. What are the motivational factors for students to buy products from Apple?

Hypotheses:

1. JMU students who value high end products are more likely to purchase Apple products. 2. JMU students who value innovation are less likely to purchase Apple products. 3. JMU students who have Apple products that have been affected by the battery crisis will

show more negative attitudes toward Apple. 4. JMU students who have Apple products that have been affected by the battery crisis will

be less likely to purchase products from Apple in the future 5. JMU students who are more aware of the Apple’s battery crisis will show more negative

attitudes toward Apple.

Procedures/Research Design/Methodology/Time frame

Describe your participants. From where and how will potential participants be identified (e.g. class list, JMU bulk email request, etc.)?

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Participants will be all JMU undergraduate students. They will be pulled from the SCOM Sona system and they will be identified through a JMU bulk email request. All participants will be at least 18 years of age.

How will subjects be recruited once they are identified (e.g., mail, phone, classroom presentation)? Include copies of recruitment letters, flyers, or advertisements. The data will be collected using Qualtrics, a secure, online survey system that electronically administers surveys to participants. The researcher will let the SONA system advisor know when the study is approved so he/she can post the study link on the SONA system. Interested students can access to survey through a link in Sona. The link will bring students to the posted cover letter. Once the student agrees to participate, the student will be prompted with the questionnaire. Describe the design and methodology, including all statistics, IN DETAIL. What exactly will be done to the subjects? If applicable, please describe what will happen if a subject declines to be audio or video-taped. The subjects will be asked to complete a brief survey about Apple’s battery crisis. SPSS will then be used to check for statistical significance in the respondents answers to the questionnaire. No audio or video recording will be used. Emphasize possible risks and protection of subjects. The investigator does not perceive more than minimal risks for subjects’ involvement in this study. There are no risks beyond the risks of everyday life. What are the potential benefits to participation and the research as a whole? No direct benefits are anticipated. Where will research be conducted? (Be specific; if research is being conducted off of JMU’s campus a site letter of permission will be needed) Research will be conducted online via Qualtrics. Will deception be used? If yes, provide the rationale for the deception. Also, please provide an explanation of how you plan to debrief the subjects regarding the deception at the end of the study. The investigator will not use deception. What is the time frame of the study? (List the dates you plan on collecting data. This cannot be more than a year, and you cannot start conducting research until you get IRB approval) The investigator will start conducting research contingent on IRB approval. Once the investigator has approval, research will begin. Data collection will last two weeks.

Data Analysis For more information on data security, please see: http://www.jmu.edu/researchintegrity/irb/irbdatasecurity.shtml.

How will data be analyzed? Data will be analyzed through SPSS.

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How will you capture or create data? Physical (ex: paper or tape recording)? Electronic (ex: computer, mobile device, digital recording)? Data will be capture online through Qualtrics.

Do you anticipate transferring your data from a physical/analog format to a digital format? If so, how? (e.g. paper that is scanned, data inputted into the computer from paper, digital photos of physical/analog data, digitizing audio or video recording?) No, the investigator does not anticipate transferring data from a physical format to a digital format. How and where will data be secured/stored? (e.g. a single computer or laptop; across multiple computers; or computing devices of JMU faculty, staff or students; across multiple computers both at JMU and outside of JMU?) If subjects are being audio and/or video-taped, file encryption is highly recommended. If signed consent forms will be obtained, please describe how these forms will be stored separately and securely from study data. Data will be stored on a password-protected computer in a password-protected file. Qualtrics requires a password to access the survey and data as well. Who will have access to data? (e.g. just me; me and other JMU researchers (faculty, staff, or students); or me and other non-JMU researchers?) Only the researchers and advisor, Dr. Yeonsoo Kim, will have access to the data collected. If others will have access to data, how will data be securely shared? No one else will have access to the data. Will you keep data after the project ends? (i.e. yes, all data; yes, but only de-identified data; or no) If data is being destroyed, when will it be destroyed, and how? Who will destroy the data? The data will be destroyed at the end of the semester. The researchers will delete all files with data.

Reporting Procedures Who is the audience to be reached in the report of the study? JMU students How will you present the results of the research? (If submitting as exempt, research cannot be published or publicly presented outside of the classroom. Also, the researcher cannot collect any identifiable information from the subjects to qualify as exempt.) The results of the research will be presented through a research paper and a class presentation. The finding will not be published or shared outside of class.

How will feedback be provided to subjects? Subjects interested in feedback can contact any research or the advisor for the findings of the study. The researcher will send out feedback to subjects on request.

Experience of the Researcher (and advisor, if student):

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Please provide a paragraph describing the prior relevant experience of the researcher, advisor (if applicable), and/or consultants. If you are a student researcher, please state if this is your first study. Also, please confirm that your research advisor will be guiding you through this study. Our advisor, Dr. Kim, has actively produced scholarly works (IRB-approved research projects) since 2007. Her scholarly works have been published in top communications journals, including the Journal of Public Relations Research, Public Relations Reviews, Journal of Business Ethics and Journalism Studies. She has also presented 28 conference papers over the past few years. Of these, six earned best paper awards,including best paper awards from the International Communication Association and the Association for Education in Journalism and Mass Communication. Her research interests include corporate social responsibility, reputation management, strategic communications from a public relations perspective, and health promotion campaigns. As student researchers, this is our first human research study. Dr. Kim will be guiding us throughout the course of the study.

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*Please “insert” page break here and then Insert Consent form or Cover letter here!

“Web” / “Email” Consent to Participate in Research (confidential research)

Identification of Investigators & Purpose of Study You are being asked to participate in a research study conducted by Danielle Cote, Christina Gillespie, Jenna Scull, Julia Smith and Dara Stevens from James Madison University. The purpose of this study is to study how effective Apple’s response was to their battery crisis. This study will contribute to the student’s completion of their research project.

Research Procedures This study consists of an online survey that will be administered to individual participants through Qualtrics (an online survey tool). You will be asked to provide answers to a series of questions related to your opinions of Apple. Should you decide to participate in this confidential research you may access the anonymous survey by following the web link located under the “Giving of Consent” section.

Time Required Participation in this study will require no more than 10 minutes of your time.

Risks The investigator does not perceive more than minimal risks from your involvement in this study (that is, no risks beyond the risks associated with everyday life).

Benefits There are no direct benefits from participation in this study.

Confidentiality The results of this research will be presented in the classroom. While individual responses are anonymously obtained and recorded online through Qualtrics, data is kept in the strictest confidence. Responding participant’s email addresses will be tracked using Qualtrics for follow-up notices, but names and email addresses are not associated with individual survey responses. The researchers will know if a participant has submitted a survey, but will not be able to identify individual responses, therefore maintaining anonymity for the survey. The results of this project will be coded in such a way that the respondent’s identity will not be attached to the final form of this study. Aggregate data will be presented representing averages or generalizations about the responses as a whole. All data will be stored in a secure location accessible only to the researcher. Upon completion of the study, all information will be destroyed. Final aggregate results will be made available to participants upon request.

Participation & Withdrawal Your participation is entirely voluntary. You are free to choose not to participate. Should you choose to participate, you can withdraw at any time without consequences of any kind.

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Questions about the Study If you have questions or concerns during the time of your participation in this study, or after its completion or you would like to receive a copy of the final aggregate results of this study, please contact:

Danielle Cote Yeonsoo Kim SCOM SCOM James Madison University James Madison University coteds@dukes.jmu.edu Telephone: (540)568-2396

kim28yx@jmu.edu

Questions about Your Rights as a Research Subject Dr. David Cockley Chair, Institutional Review Board James Madison University (540) 568-2834 cocklede@jmu.edu

Giving of Consent I have read this consent form and I understand what is being requested of me as a participant in this study. I freely consent to participate. The investigator provided me with a copy of this form through email. I certify that I am at least 18 years of age. By clicking on the link below, and completing and submitting this confidential online survey, I am consenting to participate in this research.

http://jmu.co1.qualtrics.com/jfe/form/SV_aVMoguUnh0HSZox.

______________________________________ ______________ Name of Researcher (Printed) Date

This study has been approved by the IRB, protocol No. 18-0419 .

C. Data analysis outputs.

D. Focus Group Proposal

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Focus Group Preparation

Background At the end of 2017, Apple received backlash for slowing down older iPhone models

without notifying customers. The slow down came with the 10.2.1 update. Customers speculated that Apple was slowing down iPhones to encourage them to buy the newer versions. Apple stated that they slowed down older model iPhones to protect against unexpected shutdowns. The Banana Group is studying the iPhone slow down crisis, how people responded to the problem and how Apple repaired their image. Objectives

In the focus group, we will ask a series of questions that will give us insights on how people respond to the iPhone slow down crisis. We hope to understand why people buy Apple products, how they perceive Apple’s reputation, their familiarity with the slow down crisis and their familiarity with Apple’s attempts to fix the issue. We also look to understand people’s intents to purchase Apple products. Participants’ responses will inform Apple about customer’s perceptions of the crisis and the effectiveness of their response strategies.

Methodology We will have six traditional focus groups. Each focus group will consist of 10 participants with 60 participants in total. Our population consists of people who own smartphones. From the population, we will sample JMU students enrolled in the Spring 2018 Semester. Three focus groups will consist of students who have iPhones. Three focus groups will consist of students who have other types of phones. By segmenting these groups, we will be able to differentiate between the attitudes, perceptions and intentions of iPhone users and non-iPhone users more easily. Logistics

Focus groups will take place around 11:00 AM during April in the Student Success Center on JMU’s campus. Participants will be recruited through JMU mass informational email and SONA system. Focus groups sessions will be staffed by a moderator, assistant and stenographer. We will set up a microphone in the room to record the conversation. Participants will be provided lunch as an incentive, including pizza and soda beverages. Introductory Statement (length of group, confidentiality, openness to all opinions, ground rules)

Good morning and welcome to this focus group session. Thank you for taking the time out of your schedule to discuss the Apple iPhone slow down crisis. Today, we will will discuss

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awareness, perception and intentions surrounding the crisis. My name is Julia Smith; I am a junior communication, public relations student at James Madison University. Here with me today is my assistant, Jenna Scull, and note taker, Danielle Cote. Both of them are also communication, public relations students at JMU.

This study hopes to understand why people buy Apple products, how they perceive Apple’s reputation, their familiarity with the slow down crisis and their familiarity with Apple’s attempts to fix the issue. We also look to understand people’s initial response to the news of the slow down and their purchasing intentions.

This focus group should take no more than two hours. All answers given today will be kept completely confidential. There are not wrong answers and we are open to any and all opinions. Everyone will have different points of view, so it is important to respect other participant’s opinions. We should all have a mutual respect for each other. Everyone has the freedom to not speak or not get involved as they prefer, but we encourage involvement. Sometimes there is a tendency for some people to talk a lot and form some to not, but it is highly important for us to hear what everyone has to say. If someone is sharing a lot of their thoughts, I may ask someone not participating to share as well. You have the option to decline. Also, please respect other participant’s privacy. What is said here will stay here. The information said during this time will stay between me, the note-taker and the assistant. All information will be kept on a private computer.Are there any other ground rules anyone would like to add? If not, we will move forward.

My role as the moderator is to ask questions and listen. I will not be participating in the conversation and I will not be providing my opinion regarding anything said. My assistant will help me facilitate the conversation and will not be providing her opinion either. The note-taker’s role is to record everything being said in order to adequately take down what everyone is saying during conversation. I will ask about 10 questions and will move the discussion from one questions to the next. We have placed name cards in front of each you in order to help everyone remember names. If there are any initial questions, I will answer them now. If not, then we will begin the session. Focus Group Questionnaire (opening, introductory, transition, key/up to 10, probe/follow up, ending, final) Opening: Let’s start with initial introductions. First, tell everyone in the group your name what year you are at JMU, your major and a fun fact. Introduction: Do you own an iPhone?

Follow-Up: What model of iPhone do you have? What about the iPhone made you buy it over other types of phones?

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What about your type of phone made you buy it over the iPhone? Why do you think other people own iPhones?

Key: What are your purchasing habits for Apple products?

Follow-Up: Do you buy the latest model of iPhone? Why or why not? If not, how long will it take for you to purchase a newer model?

Key: Write down three words that you think describe Apple products.

Follow-Up: Why do you feel that way? What characteristics do Apple products have that make people want to buy them? What characteristics do Apple products not have that make people want to buy other smartphones?

Transition: Now that we’ve heard about your thoughts on Apple and their iPhone products, we’re going to move into a discussion of a crisis they experienced at the end of 2017. Key: Are you aware that Apple slowed down iPhone 7 and older models?

Follow-Up: If you have an iPhone, do you feel you experienced a slow down? What do you know about Apple slowing down iPhones?

Key: How did you feel about the news of the slow down when you first heard about it?

Follow-Up: Why did you feel this way?

Key: How severe do you think the slow down is?

Follow-Up: How do you think this crisis has affected customer perception of Apple? How do you think the crisis will or has impacted Apple?

Transition: All great answers. Now I’d like to know about your thoughts of Apple’s response to the crisis. Key: Are you aware of the steps Apple has taken to respond to the slow down crisis?

Follow-Up: What has Apple done to respond to the crisis? What was their reason for slow down iPhones?

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What has Apple done to improve their position in the crisis? Key: What do you think about Apple’s response?

Follow-Up: Do you think it was an adequate response? Why or why not? Did it impact your attitudes of Apple? Do you think you will take advantage of these responses?

Key: Where did you hear about the crisis?

Follow-Up: Where did you hear about Apple’s response to the crisis?

Key: Will you purchase an Apple product in the future?

Follow-Up: Will you purchase another iPhone in the future? If you do not own an iPhone, would you consider buying an Apple product?

Key: Does the slow down crisis affect your decision to purchase an Apple product?

Follow-Up: Why does the crisis affect your decision to purchase?

Ending: Overall, does the slow down crisis affect your perception of Apple and their products? Final: Is there anything we did not talk about that we should have? Is there anything you’d like to add?

Conclusion

The themes I expect to come out of this focus group will be the discussion of iPhone slow down and how it has affected people’s decision to purchase Apple products. People’s perception of the severity of the crisis will be a large influence on their perception of Apple. Our client should consider doing a focus group because they are fairly quick and inexpensive. Focus groups allow us to take an in-depth and complete look at participants awareness, perceptions and intentions surrounding the crisis.

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E. Team member approval sheet

Campaign Research Methods SCOM 388-001

Dr. Yeonsoo Kim The Banana Group

Danielle Cote, Christina Gillespie, Jenna Scull, Julia Smith, Dara Stevens

The following submission is made with the approval of the Banana Group, project team. Name Danielle Cote Signature______________________ Date ________ Name Christina Gillespie Signature______________________ Date________ Name Jenna Scull Signature______________________ Date ________ Name Julia Smith Signature______________________ Date ________ Name Dara Stevens Signature______________________ Date ________