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Samsung Note 7 - An Unprecedented Recall That Created History: Exploding Phones Recovered – Exploded Trust?

Authors:
Muntazir Haider at Institute of Business Management
Muntazir Haider
Aamir Firoz Shamsi at Institute of Business Management
Aamir Firoz Shamsi
Salman Kazmi at Institute of Business Management
Salman Kazmi
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Abstract

This study aims at reviewing the literature to explore the reasons and rationale of buyer’s preference of one particular brand over the other one in high-tier smart phones industry. This shall be linked to the recent issues faced by Samsung concerning the Note 7 explosions, causing a great monetary and a greater non-monetary loss the global electronics giant. Studying and building Note 7 case adds more variables to the initially reviewed literature regarding brand preferences of consumers in high-tier smart phones industry. Determinants and drivers of decision-making and preferences were explored using the Systematic Literature Review approach. Thereafter, customer dissatisfaction variables from Note 7 incidents were explored and analysed. Two equations were added up to generate and extend f indings. Three major factors were identif ied including Quality, Consistency and Care for Customers. The concluded outcome of the study limited to be utilized primarily for studying high tier smart phone industry but a glimpse of it can also be shadowed upon high tier and niche market brands. This paper is the first of its kind case study on a first of its kind incident that happened with Note 7 – one of the most talked about cases of 2016 and can be used as stepping stone for further analysis into this or similar cases.
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Abstract
Purpose – The purpose of this paper is to review the literature in order to explore reasons and rationale
of buyers preferring one brand over the other in high-tier smart phones industry. This shall be linked to
the recent issues faced by Samsung with regards to the Note 7 explosions, causing a great monetary and
a greater non-monetary loss the global electronic giant. Studying and building Note 7 case will add more
variables to the initially reviewed literature regarding brand preferences of consumers in high-tier smart
phones industry.
Design / Methodology / Approach – Determinants and drivers of decision making and preferences are
explored using existing literature review. Thereafter, customer dissatisfaction variables from Note 7
incidents are explored and analyzed. Thereafter, the two equations are added up to generated and
extend findings in this case.
Findings – With a number of other variables that were discovered during the course of this research,
three major factors were identified i.e. Quality, Consistency and Care for Customers.
Research Limitations – The concluded outcome can be utilized primarily for studying high tier smart
phone industry but glimpse of it can also be shadowed upon high tier and niche market brands
Originality / Value – This paper is the first of its kind case study on a first of its kind incident that
happened with Note 7 – one of the most talked about cases of 2016 and can be used as stepping stone
for further analysis into this or similar cases.
Keywords – Consumer Behavior, Buyer Preferences, Mobile Phone Industry, High tier Mobiles, Niche
Markets, Customer Care, Quality, Case Study, Samsung Case, Note 7 Explosion
Paper type – Systematic Literature Review
... For instance, following Samsung Galaxy Note 7 smartphone failures, the company's refusal to compensate customers for their losses resulted in a massive backlash from the public, legal notices being served to the tech giant, and a $5.3 billion financial loss (Shamsi et al., 2017). Industries such as aviation, hospitality, health care, retail, and banking are highly susceptible to service failures due to the high level of customer-employee contact, as well as problems that arise from the general service characteristics of heterogeneity, inseparability, and perishability (Izogo & Jayawardhena, 2018;Koc, 2019;Lee, 2018). ...
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... For instance, following Samsung Galaxy Note 7 smartphone failures, the company's refusal to compensate customers for their losses resulted in a massive backlash from the public, legal notices being served to the tech giant, and a $5.3 billion financial loss (Shamsi et al., 2017). Industries such as aviation, hospitality, health care, retail, and banking are highly susceptible to service failures due to the high level of customer-employee contact, as well as problems that arise from the general service characteristics of heterogeneity, inseparability, and perishability (Izogo & Jayawardhena, 2018;Koc, 2019;Lee, 2018). ...
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