CASE STUDY 2: MANAGEMENT DECISION (22 Marks) Smartphones, Seniors, and Purchase Decisions Picture this rather complex consumer purchase decision. An 82-year-old man (let's call him Jack) walks into a Verizon Wireless store looking for a smartphone. However, Jack already is having serious reservations about his purchase because (a) he currently does not own even a basic cell phone let alone a smartphone, (b) Up to now he's not been sure why he would need a smartphone, (c) he's really not interested in investing the time it will require to learn how to use the phone, which means (:1) he's not convinced he will ever use it, and (e) if he doesn*t think he will ever use it, then he's denitely not interested in being locked into the typical two-year contract required by most US. celluian'handphone providers. The only reason Jack is in the market for a smartphone is because he is of the age where his children want him to be easily accessible so they can make sure he is "okay" at' a moment's notice. Jack's mindset is that he knows the status of his own health at all times and figures that if his children want to know how he is, they can simply call his landline. The logic is that if he answers the landline, he's ok; if he doesn't answer the landline, he's well enough to be out of the house doing something else. So why all of the bother and fuss about buying a smartphone'? Like many seniors, Jack ultimately relents to the wishes of his chiidren and makes the trek (driving by himself, of course) to the 1Verizon Wireless store. Once inside, he immediately comes in contact t with a very enthusiastic 20-something salesperson (let's call her April) who is wielding a tablet-like device and talking nonstop about the latest gadgets and 4G service. After getting some basic infomiation from Jack such as what kind of smartphone and data plan he has now (he doesn't have either), why he wants a smartphone (he doesn't want one, but his kids want him to have it), how he sees himself using the smartphone (he's not convinced he will use it), and what kind of options he's looking for in a phone and data plan (he's clueless), April shows Jack several different phones with various options while explaining that some phones require a data plan (which necessitates even more explanation) and others do not. Eventually, Jack remembers, that his children have talked a lot about the Apple iPhone and wonders if that would be appropriate for him. After considerably more explanation from the sales representative, Jack wears down and commits to the iPhone 4 because it is only 99 cents with atwo-year contract. Feigning horror at Jack's choice, the sales representative immediately asks, "but what will your family and friends think if you are not using the newest phone (iPhone SS at the time) and technology on the market?" Aer Jack nally stopped laughing at this seemingly ridiculous question, he simply said, "I think they will understand\". The interactions described between the consumer (Jack), his children (inuencers), and the Verizon Wire- less salesperson, April, illustrate many aspects of the consumer decision-making process. Although Jack does not personally recognize a problem with not having a smartphone, his children have been successful in convincing him that a problem does exist and inuencing him to remedy the problem soon. Upon being convinced of the need for a smart phone, Jack (reluctantly) nds himself in information search mode when he enters the store and encounters the salesperson. There, he attempts to get his questions answered, but this is all so new to him that it is difcult to grasp many aspects of the information being provided. Nonetheless, he eventually is persuaded to make a decision about the type of phone and data plan he wants to purchase and a few minutes later he is walking out the door with his spiffy new phone activated for him to start using right away. Fast-forward to a couple of months later-despite o'ers to help and extreme urging to do so, Jack's kids nd that since he is not used to having a smartphone, he is still not in the routine of carrying it with him when he leaves the house. He also still has not set up his voiccmail function, nor is he checking-text messages. Frustrating as it is, this results in everyone reverting back to the old system of simply relying on the band line with Jack left holding the bag of paying for a two-year plan for a product that he uses minimally. Customer needs and wants? They've obviously been overlooked so far in this scenario. Whether his children are able to educate him about the phone's features and, more importantly, convince him to ever carry and use the phone remains to be seen. Answer ALL Questions. 4. After Jack purchases his phone and data plan, is it likely that he experienced cognitive dissonance with the purchase? What evidence make you answer the way you did? (6 marks) 5. What social andfor cultural factors played a role in this consumer purchasing the smartphone and data plan? Which ones do you think were most important and why? (6 marks) 6. The scenario described in the case is an illustration that not only do companies have to overcome the hurdle of getting someone to buy their product but also have to educate consumers on the proper use of the product after purchase. Otherwise, the consumer has a product hefshe may not properly use and thus achieves no value or satisfaction from the purchase! What steps could Verizon Wireless take in the post - purchase time frame to ensure that consumers get the maximum 1value and satisfaction out of their purchase and avoid outcomes such as Jack's