The Role of Identity on Consumer Behaviour

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1 The Role of Identity on Consumer Behaviour Student name Professor name Course code Institute Date

2 Table of Contents Introduction ................................................................................................................................ 3 Consumer Identity: A Theoretical Perspective ........................................................................... 3 An Overview of Apple/iPhone ................................................................................................... 6 Identity and Apple: Real-world Practices .................................................................................. 8 Analysis and Evaluation ............................................................................................................. 9 Implications for Business Strategy ........................................................................................... 12 Reflection on Personal Consumption Behaviour ..................................................................... 13 Conclusion ................................................................................................................................ 14 References ................................................................................................................................ 15 Appendix .................................................................................................................................. 18

3 Introduction Consumer behavior encompasses the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. It delves into the reasons behind consumers' choices and decisions regarding the marketplace, brands, and products (Ratra, 2023). Within the realm of consumer behavior, identity plays a crucial role, acting as a strong force that deeply affects and shapes people's decisions in the marketplace. This sense of identity, firmly anchored in cultural, societal, and personal characteristics, often leads customers to gravitate toward companies and products that resonate with their core values, aspirations, or lifestyles (Vishwakarma & Mohapatra, 2023). In this context, Apple Inc. and its flagship product, the iPhone, provide a compelling case study to explore the intricate relationship between consumer identity and behavior. Apple, as a brand, has successfully tapped into the consumer's sense of identity, making the iPhone more than just a technological device (Kemp et al., 2023). For many around the globe, owning an iPhone transcends simple utility; it becomes a statement, a representation of one's position, goals, and sense of belonging to an affluent community (Sharma, 2023). This transformation of a product into a symbol of modern identity highlights the profound impact that a brand’s identity can have on consumer preferences and behavior. This essay aims to delve deeper into this complex interaction between consumer identity and behavior, using Apple and the iPhone as a case study. It will explore how Apple’s brand identity influences consumer preferences and how this, in turn, shapes their behavior in the marketplace. The discussion will be supported by existing literature and real-world examples, providing a comprehensive understanding of the role of identity in consumer behavior and its implications for branding and marketing strategies.

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4 Consumer Identity: A Theoretical Perspective Social Identity Theory, proposed by Tajfel and Turner (2001), provides a pertinent framework to understand and analyze Apple’s brand identity and consumer loyalty. Apple users often perceive themselves as part of an exclusive community, differentiating themselves from users of other brands. This sense of belonging and identification with the Apple brand contributes significantly to the brand’s strong customer loyalty, as users are not just purchasing a product, but are also buying into a community and a lifestyle. Individual tastes and decisions within the dynamic marketplace are greatly influenced by the complex idea of consumer identity. The main focus is on how people view themselves in relation to the goods and brands they interact with. This identity is dynamic; as a result of societal pressures, cultural expectations, and individual experiences, it changes with time. Personal identification, including one's self-concept and self-awareness, is at the center of consumer identity. It consists of the distinctive qualities, traits, and life experiences that distinguish one person from another. For instance, a person's preferences for particular goods or brands might be greatly influenced by their personal experiences, such as visiting a distant country or learning a new skill. Consumers are more likely to be drawn to firms that resonate with their sense of self, according to research done by Reed et al. (2012), underlining the significant importance of personal identity on buying behavior. Consumer decisions are significantly influenced by social identity in along with personal identity. A person's perception of belonging to different social groups, which may be based on elements like race, gender, occupation, or other distinguishing qualities, is referred to as social identity. The urge to blend in and be accepted by others has an impact on this type of identity. People might choose a specific brand of technology or apparel, for instance, because it fits with the tastes of their peer group. According to Tajfel and Turner's Social Identity Theory (2001), belonging to a group has a big impact on how people behave, including how they make purchases.

5 Another aspect of consumer identification is cultural identity, which results from a person's membership in a particular ethnic or cultural group. Cultural norms, conventions, values, and beliefs influence this type of identity. Cultural identity can have an impact on consumer preferences across a range of spheres, including culinary preferences, apparel preferences, and even musical preferences. In studies looking at the complex interactions between cultural identity and consumer decisions, the importance of cultural values in directing consumer behavior is highlighted (Shavitt & Cho, 2016; Volkova et al., 2021). Personal, interpersonal, and cultural identities interact to produce a complex web that profoundly affects consumer preferences and decisions. Recognizing the significance of identity in consumer behavior, companies and advertising agencies frequently adjust their approaches in order to connect with the identities of their target audience. For instance, in order to promote a sense of belonging and affiliation with the company, commercials may highlight cultural traditions or target particular social groups (Wang, 2017). Figure 1 provides further clarification of this complex relationship between identity strength as well as the desire to identify oneself online. Figure 1: Identity's Function in Digital Consumer Behaviors: A Conceptual Model (Rogova & Matta, 2023).

6 The conceptual model emphasizes the spectrum of digital actions associated to identities. The connection between identity strength and the need to express one's identity is highlighted. According to the model, people who have strong identities are more likely to express and define their identities, especially in respect to particular social groupings. Their preference for identity-relevant products and greater willingness to participate in offline as well as online identity signaling are clear indications of this. The model further illustrates that public posting on social media platforms, such as Facebook and YouTube, serves as a more potent signal of identity compared to private posting. This is because public posting communicates one's identity not only to oneself but also to a broader audience (Rogova & Matta, 2023) . Furthermore, the theoretical discourse on consumer identity extends to the realm of brand loyalty. A brand's ability to resonate with the multifaceted identities of its consumers can significantly bolster its loyalty metrics. According to a study on the impact of social identity on brand loyalty, brands that successfully foster a sense of belonging and community among their consumers witness enhanced loyalty development (Dehdashti Shahrokh et al., 2012). This sense of belonging, often termed as 'brand community', is a manifestation of consumers' social identity, where they feel a kinship with other consumers of the same brand. Moreover, the emotional resonance of a brand with its consumers, stemming from their personal and cultural identities, can lead to what marketers’ term as 'brand love'. This emotional bond, characterized by affection, passion, and connection, can significantly elevate brand loyalty (Le, 2021). Brands that can evoke strong emotional responses, be it through nostalgia, cultural relevance, or personal resonance, often enjoy a loyal consumer base that transcends transactional relationships. In the broader spectrum of consumer behavior theory, identity and its various facets serve as pivotal touchpoints. They not only influence immediate purchasing decisions but also shape long-term relationships between consumers and brands. As the market becomes increasingly saturated, understanding and leveraging

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7 these identity-driven nuances can be the differentiating factor for brands aiming for sustained success. An Overview of Apple/iPhone Apple's brand positioning strategy stands as a testament to the power of a well- executed brand and marketing mix. Over the years, Apple has not only produced exceptional products but has also delivered remarkable services and advertising campaigns. Every facet of Apple's brand positioning underscores the company's core values, its distinctive market advantages, and its pioneering spirit. The meticulous design of Apple products addresses significant market needs, continually setting the brand apart from its rivals. This dedication to excellence has propelled Apple to become one of the world's most recognized providers of personal computers and technological systems. Between 2004 and 2020, Apple's revenue skyrocketed from $8 billion to over $2,200 billion, a testament to its unparalleled marketing strategies and brand image (Hodgson, 2023) . Apple's brand positioning is unique in that it presents itself not merely as a technological trailblazer but also as a lifestyle brand. While innovation is at the heart of Apple's identity, the company is equally committed to prioritizing its customers' needs. Apple's brand positioning reflects its adaptability to the ever-evolving tech industry. In today's fast-paced digital transformation era, being innovative is no longer sufficient. Brands like Apple must position themselves as advocates for their distinct target audience. Apple's brand positioning predominantly portrays it as a premium brand, appealing to tech-savvy and image-conscious individuals globally. The company strives to foster an emotional bond with its audience, emphasizing selling "experiences" rather than just products. Through in-depth research into its customers' core values and challenges, Apple has sculpted a nimble, continually evolving enterprise that prioritizes the customer experience (Hodgson, 2023).

8 One of Apple's defining characteristics is its commitment to producing the market's most potent new products. This commitment is backed by consistent investments in research and development. Moreover, Apple's brand promise, mission, and vision are driven by meticulously crafted mission statements, visions, and values. The company's dual-promise ensures the development of products that, via innovation, may inspire and empower its customers while also revolutionizing the globe. One of the main components of Apple's positioning strategy is its target market. Even though Apple's products have a high price, the business is working to improve accessibility. According to demographic data, people between the ages of 18 and 45 from a variety of backgrounds make up the bulk of Apple's customer base. It's interesting to note that 66% of Apple customers are women. The brand's marketing strategy and positioning campaigns make it especially appealing to millennials, Gen Z, and other younger demographics (Hodgson, 2023). Identity and Apple: Real-world Practices The technology behemoth Apple continually exhibits a strong awareness of the complex interplay between brand loyalty and consumer identity. The company's marketing campaigns, adverts, and activities are meticulously crafted to appeal to various facets of consumer identity, ensuring that their products are not just seen as mere gadgets but extensions of one's self. One of the most iconic campaigns that exemplifies this approach is the "Shot On iPhone" initiative as shown in Figure 2. What began as a user-generated content campaign has evolved into a hallmark of quality and authenticity. The "Shot On iPhone" challenge invited iPhone users to share their best photographs on social platforms like Instagram and Twitter. A panel of judges would then review these submissions, and select images would be featured on billboards, Apple retail stores, and online platforms. As of now, the hashtag #ShotOniPhone boasts over 15 million posts on Instagram, making it one of the

9 most successful user-generated content campaigns to date ( Content Marketing Strategy , 2022). Figure 2: Shot on iPhone Campaign (Sunam, 2020). Apple's marketing brilliance also extends to fostering aspirational lifestyles. Their products, ranging from the MacBook to the AirPods, are presented as symbols of a particular lifestyle, one that is sophisticated, innovative, and just a little opulent in addition to being technological marvels. This resonates to consumers' cultural along with social identities since possessing an Apple product is viewed as a status symbol that shows one's goals and accomplishments. For example, the addition of new colors in their line of iPhones wasn't merely a design decision; it was also a calculated effort to appeal to the personalities of their target market, personalizing and reflecting individual identities in the user interface of smartphones (Kantar, 2023). Additionally, Apple's engagement initiatives show that the company places a high priority on forging genuine ties with its customers. This is demonstrated by their user-generated content-filled Instagram feed. Instead of merely showing the product, it's important to share the moments, events, and stories that are significant to the people. This tactic appeals to consumers' cultural and personal identities, giving them a sense of being heard, observed, and valued (Holt, 2016). Apple's marketing tactics are essentially a masterclass in recognizing and utilizing user identity. Apple creates a

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10 deeply ingrained brand devotion that transcends the capabilities of the product by fusing their brand concept with the social, emotional, and cultural identities of their customers. Apple's new emphasis on privacy is yet another indication that they comprehend user identity. Apple's dedication to user privacy connects with consumers' sense of self in an age where data breaches are frequent, assuring them that their private histories, events, and personal information are theirs and theirs alone (Leprince-Ringuet, 2021). Analysis and Evaluation Apple has long been an innovator in incorporating consumer identity ideas into their marketing plans. An in-depth knowledge of the psychological as well as sociological forces that influence customer behavior is revealed via a critical review of Apple's marketing tactics. For instance, Apple frequently emphasizes individuality, creativity, and a sense of belonging in its product launches as well as advertisements, which is consistent with Tajfel's Social Identity Theory, which contends that people categorize themselves into different social groups and construct self-esteem from their group membership (Mcleod, 2022). Digital marketing, in particular, has revolutionized the way brands, including Apple, engage with their consumers. Effective utilization of digital marketing techniques can significantly enhance brand engagement and influence consumer behavior (Mahesh Bechanram Gupta, 2023). Apple's digital campaigns often resonate with the consumers' self-concept and aspirations. For instance, the "Shot on iPhone" campaign not only showcased the iPhone's camera quality but also celebrated individual creativity and expression, reinforcing consumers' identification with the brand. Moreover, the real-world impact of Apple's strategies can be observed in its consistent brand loyalty. Despite the emergence of competitive products, Apple users often display a strong allegiance to the brand. This loyalty can be attributed to Apple's ability to tap into consumers' self-concept and the value they derive from being associated with the brand (Z.

11 Liu et al., 2022). In the fourth quarter of 2018, Apple sold 46.89 million iPhones worldwide, slightly surpassing its sales from the corresponding quarter of 2017. Throughout 2018, a total of 217.72 million iPhones was shipped worldwide. This data underscores the brand's immense global reach and its consistent ability to engage and retain its consumer base. The iPhone's popularity is evident not just in its domestic market, where over 45 percent of U.S. smartphone users are iPhone users, but also on a global scale. Despite facing stiff competition from established technology firms like Samsung, Huawei, and OPPO, the iPhone has consistently ranked among the most popular devices worldwide since its initial release in June 2007 as shown in Figure 3. Another study focusing on the impact of brand marketing strategies on consumer behavior highlighted the importance of brand awareness and loyalty in influencing consumer choices (Supriono & Sudarmiatin, 2023). Furthermore, in the era of omnichannel shopping, brands are innovating their strategies to ensure consistent engagement across both online and offline platforms. The phenomenon of "webrooming," where consumers search online but purchase offline, has gained traction. Brands like Apple leverage this by ensuring a seamless integration between their online presence and physical stores. Such strategies not only enhance the shopping experience but also reinforce brand loyalty (Yaqub et al., 2022).

12 Figure 3: Global Apple iPhone Sales (2007-2018) (Statista, 2023). Apple's marketing tactics have continually shown that the dynamics of consumer identification are something the company deeply understands. The brand's capacity to connect with the complex identities of its consumers is what makes it so successful at creating loyalty and engagement. Task- and interaction-oriented postings on Instagram garnered higher engagement than self-oriented ones, according to a study by Liu and Suh (2017) on branding tactics there. This is consistent with Apple's strategy, which places a strong emphasis on customer interactions and experiences during their marketing efforts. Additionally, Kim et al. (2020) emphasized the value of anthropomorphized companies in interacting with customers on social media sites like Twitter. An anthropomorphized voice assistant created by Apple called Siri acts as a link between the company and its users, encouraging a sense of connection and personalization. Joo and Richards (2013) have highlighted the significance of brand distinctiveness and customer experience in creating a powerful brand. Apple stands out in a crowded market thanks to its distinctive design aesthetics and focus on the user experience, reiterating its status as a premium brand. Apple creates a deeply ingrained brand devotion that transcends the capabilities of the product by

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13 fusing their brand narrative with the social, emotional, and cultural identities of their customers. Implications for Business Strategy Businesses looking to develop effective strategies in today's competitive market environment must first understand consumer identity trends. Businesses can adjust their offers to meet the changing demands, interests, and values of their target market by recognizing the varied identities of their customers. The importance of ethical marketing in promoting sustainable customer-brand connections and value-adding product sustainability was highlighted in a study by Tanveer et al. (2021). Businesses can increase brand loyalty by implementing ethical marketing strategies because customers increasingly prefer brands that share their moral principles and personal values. For instance, Apple is a prime example of the value of comprehending consumer identity in establishing corporate strategies. According to a study by Demar et al. (2022), buyers of Apple products identify the brand with effectiveness, unique qualities, and the entire user experience. Apple can create marketing efforts that focus on user experiences and interactions thanks to such insights into consumer views, thus strengthening its brand loyalty. Additionally, brand identification based on consumer perceived value is very important in the luxury market. We buy what we want to be is a concept that was emphasized by Xi et al. (2022), who also stressed the significance of comprehending how brand identity is influenced by consumer perceived value. Luxury brands may develop a distinctive brand narrative that sets them apart in a crowded market by understanding and connecting with the aspirational identities of their customers. For businesses, adopting a customer-focused strategy is not just a trend—it's essential. Businesses may develop stronger relationships, increase brand loyalty, and promote sustainable growth by putting customers at the center of their initiatives. Businesses must maintain seamless integration between their online and

14 offline touchpoints in order to improve the entire customer experience. This is demonstrated by the practice of "webrooming," when customers research online but make purchases offline (Whittingham et al., 2021). Reflection on Personal Consumption Behaviour Personal identity is crucial in influencing our buying habits in the area of consumer behavior. When I think about my own purchasing habits, I can clearly see how much my personal identity shapes the brands and goods I favor. Our decisions, which are frequently unconscious, are intricately linked to our self-perception, values, and the persona we want to present to the world. The complex relationship between self-brand connection and the choice to buy premium brands—both authentic and knockoffs—is explored in a study by Pacho (2023). This study confirms my personal experiences, in which the brands I favor frequently reinforce my identity and boost my sense of self-worth and social position. A fundamental change in consumption attitudes has also occurred in the modern age, with a greater focus on ethical and ecological options. Mishra et al.'s interesting study from 2023 examines the rationale behind "deconsumption," the deliberate choice to curtail consumption in order to alleviate harm and resource use. This is in line with my own journey toward thoughtful consumption, in which I prioritize goods that share my values of sustainability as well as ethical production more and more. A further indication of the dynamic interaction between personal identity and consumerism is the formation of different consumer subcultures, including the metrosexuals among millennial men in South-East Europe (Magklaras et al., 2023). These subcultures question conventional ideas of masculinity and femininity, which changes how people consume things. Reflecting on this, I realize that my brand choices are not just influenced by personal identity but also by societal norms, peer influence, and cultural shifts.

15 Conclusion In the ever-evolving landscape of consumer behavior, understanding the intricate relationship between personal identity and consumption patterns is paramount. This analysis has underscored the pivotal role of consumer identity theories in shaping Apple's marketing strategies, emphasizing individuality, innovation, and a sense of belonging. Digital marketing, with its vast reach, has transformed brand engagement, with campaigns like "Shot on iPhone" resonating deeply with consumers' self-concept. The consistent brand loyalty Apple enjoys is testament to its adeptness at tapping into consumers' self-worth and societal affiliations. In conclusion, for brands to thrive in today's competitive market, recognizing and leveraging the nuances of consumer identity is not just beneficial—it's essential.

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18 Whittingham, M., Crapnell, R., Rothwell, E., Hurst, N., & Banks, C. (2021). Additive manufacturing for electrochemical labs: An overview and tutorial note on the production of cells, electrodes and accessories. Talanta Open , 4 , 100051. https://doi.org/10.1016/j.talo.2021.100051 Xi, X., Yang, J., Jiao, K., Wang, S., & Lu, T. (2022). “We buy what we wanna be”: Understanding the effect of brand identity driven by consumer perceived value in the luxury sector. Frontiers in Psychology , 13 . https://www.frontiersin.org/articles/10.3389/fpsyg.2022.1002275 Yaqub, R. M. S., Gillani, S. F., Murad, M., & Ali, N. S. (2022). Search Online and Purchase Offline: The Role of Instagram Marketing, Consumer Behavior and Webrooming in Building Brand Loyalty. Review of Applied Management and Social Sciences , 5 (3), Article 3. https://doi.org/10.47067/ramss.v5i3.241

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19 Appendix iPod Silhouette Ads Apple's "Privacy. That's iPhone" Advert

20 Apple's Annual Revenue Growth

The Role of Identity on Consumer Behaviour

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