Consumer Loyalty in an Age of Choice

Apple customers keep coming back for more

Apple has presented two major products this year in a blaze of publicity – the innovative iPad was brought to consumers in spring and last week they unveiled the next generation iPhone.

It’s no secret that I’m a bit of an Apple fan – I‘d be lost without my iPhone.

I was annoyed when iPad prices in the UK came in dearer than the US – but not so angry I considered jumping ship.

Brand loyalty in an age when we have so much choice still seems strong – and Apple certainly commands that loyalty.

I guess I’m a sucker for the brand, the image and the packaging – even if cheaper brands can do the job, I’m loyal to what I know.

I’m old enough to remember when Pepsi tried to cut Coca-Cola’s market, yet people refused to switch despite overwhelmingly preferring Pepsi in the famous blind taste test.

Coca-Cola still outsells its rival all over the world.

Although the new iPhone looks great, are Apple products really the best out there or are we simply slaves to company loyalty?

The new device certainly has limitations compared to rival models in the market.

Andy Gordon – gadget guru and founder of www.advancedMP3players.co.uk – advised me that the video-calling function of the new iPhone which is heralded as a big breakthrough – can be only used with wireless internet and is only compatible with other new iPhones.

Applications like Skype have been running a similar feature for years but theirs works with just about any smartphone.

The new iPhone’s super high definition screen is still inferior to AMOLED display technology which the Samsung Wave uses and it’s a far cheaper mobile than the iPhone.

Some mobiles now come with a whopping 12 megapixel camera making the iPhone look lightweight with just a 5 megapixels.

Similarly with the iPod, Geeks rates it behind other MP3 players but we understand the device is heavily marketed as a chic, must-have product.

The iPod was a sensation when it came out and iTunes has changed the way we listen to and buy music – but industry experts believe its limitations outweigh the benefits.

The iPod dominates over 80 percent of the UK market share but the Cowon MP3 player has substantially better sound, a great design and is bigger than Apple in Korea.

Andy Gordon told me that despite Cowon’s superior quality and smaller price tag, his sales of the device match the paltry 1 percent market share the company holds in Britain.

Brits seem to want to offer their loyalty, even in the wake of the recession when funds are tighter.

Knowingly or not, we add a certain value to the product’s image – like we’re paying to be in an exclusive club.

Most of us have a favourite supermarket, maybe because of location, price or quality and like Apple, supermarkets work hard to encourage loyalty which the market seems to want to give.

Some of us like Starbucks coffee, others opt for Costa, yet a 2008 Which? Magazine survey reported independent UK chain Caffe Nero made the best brew and Starbucks the poorest – yet they’re still the leading coffee chain.

Apple were the underdogs as they battled IBM and Microsoft through the 1980’s and 90s but today they’re setting the pace and command customer loyalty through their innovative, well-marketed products.

It’s a strange time for retailers with a lot of shops losing customers, momentum and their identity during the recession.

Although the jury’s still out on the iPad, it still sells 2 million units a month – that’s consumer loyalty and Apple has it down to a T.