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A global recall of fire-prone Galaxy Note 7 smartphones did
not appear to hurt U.S. consumers' willingness to buy Samsung Electronics
(005930.KS) phones. Here's why we say so.
Despite all the explosion reports that rocked the arrival of the Galaxy Note 7 that was released some time ago, A Reuters/Ipsos opinion poll released on Sunday still showed that U.S. consumers still remain loyal to the brand.
The survey conducted Oct. 26 to Nov. 9 found that current
Samsung smartphone users were as loyal to their brand as Apple Inc (Reuters AAPL.O)
iPhone customers. It also found that people who knew about the recall were as
interested in Samsung phones as those who did not.
Samsung was plunged into a global scandal after Note 7
phones caught fire this year, prompting a worldwide recall. Some customers
reported fixed phones overheated, leading Samsung to take back replacements as
well. Investors expected Samsung customers would turn to alternatives, chiefly
Apple's iPhone 7.
Among those aware of the recall, 27 percent would first
consider a Samsung smartphone if they were to shop for a phone, the poll
showed. Among those who did not know about the recall, 25 percent would look
first at a Samsung device.
The poll found that Samsung's customers were fiercely loyal
to their brand. Some 91 percent of current Samsung users would likely purchase
another Samsung smartphone, and 92 percent of current users would probably buy
another Samsung product in general.
That was similar to the brand loyalty among current iPhone
owners: 92 percent would likely buy another iPhone and 89 percent would likely
buy another Apple product.
To be sure, it was unclear how much the Samsung recall
weighed on the minds of consumers. The Reuters/Ipsos poll measured how
interested people were in buying Samsung phones, not how much the recall
directly influenced their decisions.
Jan Dawson of Jackdaw Research said the recall was mostly
limited to early adopters rather than the majority of Samsung's customer base,
which limited negative user experiences.
"Your own personal experience trumps what you read and
what people tell you," Dawson said.
Samsung has said that customers chose another Samsung model
as a replacement for the Note 7 in a majority of instances, without giving more
detail.
It has said nearly 85 percent of the recalled Note 7 devices had been
replaced or returned through its refund and exchange program as of Nov. 4.
In a statement it said it was now focused on "ensuring
customer safety and understanding the root cause of the issue."
The Reuters/Ipsos poll was conducted online in English in
all 50 states. It included 2,375 people who own Samsung phones and 3,158 people
who own iPhones.
The poll has a credibility interval, a measure of accuracy, of
2 percentage points.
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