Galaxy Note 7 Did Not Damage Samsung Brand in US
This article dives into Samsung’s brand perception among US consumers following the catastrophic release of the Galaxy Note 7. Users reported overheating, which caused airlines to ban the device. Despite the global recall of the Note 7 and the perpetual news coverage and bad press, Samsung weathered through the storm. A Reuters/Ipsos survey conducted in the past month found that current Samsung users are as loyal to their brand as iPhone customers are. In fact, 91% of current Samsung users would purchase another Samsung smartphone. Out of the survey respondents who knew about the recall, 27% would consider a Samsung phone first. Out of the respondents who did not know about the recall, about 25% of them would consider a Samsung phone first. Experts claim the recall primarily influenced early adopters of Samsung smartphones.
Despite the bad press, Samsung still has a loyal customer base. It would appear the level of confidence in Samsung’s smartphones hasn’t dropped below its tipping point. If it had, the results from the poll would reflect decreasing consumer loyalty, and Samsung’s sales in other smartphones would have fallen drastically. Therefore, the current point where the price and number of users for all of Samsung’s smartphones intersects is between the two market equilibrium. Since this point has not yet fallen behind the lower equilibrium point or tipping point, Samsung’s consumer confidence hasn’t been hurt as badly as people think. Samsung can recover its brand image and sales with further actions to regain the trust of consumers without having to reestablish itself entirely in the marketplace.
http://www.businessinsider.com/r-galaxy-note-7-recall-did-not-damage-samsung-brand-in-us-reuters/ipsos-poll-2016-11