🚀 ProPicks AI Hits +34.9% Return!Read Now

Galaxy Note 7 recall did not damage Samsung brand in U.S. - Reuters/Ipsos

Published 20/11/2016, 23:36
© Reuters. Exchanged Samsung Electronics' Galaxy Note 7 is seen at company's headquarters in Seoul
AAPL
-
0593xq
-
005930
-

By Deborah M. Todd

SAN FRANCISCO (Reuters) - A global recall of fire-prone Galaxy Note 7 smartphones did not appear to hurt U.S. consumers' willingness to buy Samsung (LON:0593xq) Electronics (KS:005930) phones, a Reuters/Ipsos opinion poll released on Sunday showed.

The survey conducted Oct. 26 to Nov. 9 found that current Samsung smartphone users were as loyal to their brand as Apple Inc (O:AAPL) 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 programme as of Nov. 4.

In a statement it said it was now focussed on "ensuring customer safety and understanding the root cause of the issue."

© Reuters. Exchanged Samsung Electronics' Galaxy Note 7 is seen at company's headquarters in Seoul

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.