This is a presentation of a recent Journal submission regarding the iPhone.

1. Research Presentation: iPhone Day2Mark M. Lennon, Ph.D.December13th, 2010

2. Research Philosophy 2

3. Research Philosophy 3

4. Qualitative Research “A Process of Inquiry…… and a Product of that Inquiry.” (Eisenhardt, 1990) 4

5. Case Study Research “A research strategy which focuses on understanding the dynamics present within single settings, of either single or multiple organizations.” (Yin, 1984; Eisenhardt, 1989) 5

6. Monetizing Mobile Factors Influencing Development of Mobile Commerce Korea, China, Japan 6

7. The iPhone 7

8. How iPhone Innovators Changed Consumption Patterns in iDay2: Hedonic versus Utilitarian Mark M. Lennon, Ph.D. and Emilio Arruda, Ph.D. under Second Round Review at Elsevier’s International Journal of Information Management 8

9. iDay2(noun)the day iPhone 4 was released as dubbed by “Apple Acolytes” Hedonic(adjective)pleasure Utilitarian (adjective)useful 9

10. 10

12. Did consumers become more utilitarian with successive iPhone releases?

13. Were changes in consumer preferences due to lack of new features?11

14. Research Methodology: Nethnography From R V. Kozinets (1997) “X-Philes”: “A branch of ethnography that analyses the free behavior of individuals on the internet.” “Can be faster, simpler, and less expensive than ethnography, and more naturalistic and unobtrusive than focus groups or interviews.” 12

15. Data Source: Everythingicafe.com 13

16. Research Design 14

17. A Typical Satisfaction Post “ I thought I wanted the BlackBerry Storm, but my boss got one and she couldn't even find where to check her text messages ……I loved my iPhone just a little bit more after that.” P2, L45-48 (from transcript coding) 15

18. Qualitative Data Coding 16

19. iDay1: iPhone v1June 29th, 2007 17

21. 2.0 Mega pixel Camera (no video)

22. Text Messaging (+$20 unlimited) ( no MMS)

23. Triangulation Via Cell Towers (No GPS)

24. 8 GB Black model $399 w/ ATT 2 Year Contract

25. 16 GB Black or White model $599 w/Contract

26. Battery Life of 10 Hours

27. iPhone OS 1.0

28. iTunes & App Store (approx. 500 programs)18

29. Hedonic Preferences “well im a gadget guy so ill buy the new iphone when it comes out regardless. surely it cant be worse than what we have now” P12, L63-65. (from transcript coding) 19

30. Hedonic Preferences “…to those who say they are gonna wait don’t you all feel like me and want that phone so bad? I think we are all denying the fact that we want one and are trying to convince ourselves otherwise, lol”. P15, L51-54 20

31. User Positioning “Guys love to hack and jailbreak, so almost all of the iPhone owners I know are men”P2, L25-26 21

32. iPhone 3GJuly 11th, 2008 22

34. 2.0 Mega pixel Camera (still no video)

35. GPSwith Google Maps

36. Text Messaging (still no MMS)

37. 8 GB Black model $199 w/ ATT 2 Year Contract

38. 16 GB Black or White $299 w/ 2 Year Contract

39. Ten Hour Battery (5 Hours with GPS)

40. iPhone OS 2.0

41. iTunes & App Store (approx. 3,000 programs)23

42. Frustration “I am returning my upgrade today! The battery does not hold a charge and I have to charge it at least twice a day! Not worth it!” P7, L40-41 24

43. Disappointment “How come there is no frickin video on this thing yet? Blackberry’s got it, and higher megapixel camera too….. when is Apple gonna gain a clue???” P9, L27-32 25

44. Price Concerns “so I just need to know is there any way I can get it at a cheaper price? …if I break my contract, I’ll have to work all summer just to pay for a phone! “ P14, L15-18 26

45. iPhone 3GSJune 25th, 2009 27

47. 3.0 Mega pixel Camera with Video

48. GPSwith Google Maps

49. Instant Messaging (yet still no MMS)

50. 8 GB Black model $199 w/ 2 Yr ATT Contract

51. 16 GB Black or White $299 w/ 2 YrContract

52. 10 Hour Battery (same GPS drain)

53. iPhone OS 3.0

54. iTunes & App Store(approx. 85,000 programs)28

55. Waiting For Real Benefits “I think you should wait till 2011 for the 4G phones to come out.......nobody know if the 3GS is faster, they don’t have it yet.........id say wait till at least next year” P14, L21-25 29

56. Carrier Concerns “wait till next year, when there's a chance of 4G, a chance of it being on Verizon's network, a chance of a redesign...maybe even get MMS” P14, L52-L53 30

57. In Contrast: Apple Acolytes “Crazy how much of an obsession something like this can be Wonder how many people will be up all night watching the UPS tracking site..” P15, L57-59 31

58. In Contrast: Apple Acolytes “I consider myself hooked on music and love iTunes with my iPhone…but when will they increase storage so I can ditch my iPod?” P16, L2-4 32

59. Research Findings Were iPhone consumers during the first release purely pleasure seeking, hedonistic users? Yes. Nearly 75% of Postings on iDay1 expressed hedonistic reasons for purchase, disregarding issues of price and function. 33

60. Research Findings Did consumers become more utilitarian with successive iPhone releases? Yes. Over 80% of the successive iDay2 and iDay3 posts expressed utilitarian purchasing decision points such as costs, desire for greater functionality, and willingness to wait for later models. 34

61. Research Findings Were changes in consumer preferences due to lack of new features? Yes. Nearly 65% of Postings on iDay2 and iDay3 made reference to a disappointment with lack of new, sophisticated features (e.g. video) and disappointment with performance (e.g. battery life). 35

62. Hedonic versus Utilitarian 36

63. Future Research: Asia 37

64. Future Research: Asia 38

65. Future Research: Finance Does the announcement of new iPhone products impact Apple’s (AAPL) share price? 39

66. Wharton’s Eventus 40

67. Thank you! Questions? 41