Bx2081 Consumer Behaviour In Automobile Assessment Answers

Understanding the consumer decision process and key factors that influence consumer behaviour is critical lot the devetoprnent of a strategic marketing plan You are expected to identify a purchase situation and show the relevant consumer behavioural influences on that purchase situation. The exact nature of the purchase needs to be confirmed by your lecturer as to its suitability.

Introduction

Consumer behaviour is an approach that allows business organisations in understanding the consumer purchase patterns and the factors that influence their buying decision. Consumer behaviour is of utmost importance to the people dealing in the marketing industry because it helps them in gaining a better understanding of consumer needs and demands and working on those factors that govern the buying decision of the customers (Kardes, Cronley, & Cline, 2016). Having a better knowledge about the behaviour of the consumers can allow marketing managers to position and advertise their products in a way that they are able to create a demand and satisfy the needs of the consumers.

Product description  

Automobile is one of the largest industries throughout the world and experiences high demand from almost all sorts of people. The sales of passenger cars increased by 38% per annum during 2005-2006 and is still increasingly sharply (Monga, Chaudhary, & Tripathi, 2012). Automobile is also one of the toughest sector in terms of market competition and it is very hard for the marketing managers to understand the consumer buying behaviour. Consumers in the automobile industry make very careful decisions after taking into account a number of factors because the products are expensive and have to be used for a very long period of time. Further, the competition between companies is so high that they are continuously fighting a neck-to-neck competition to grab the market share using discounts and offers, which further influences the buying decision. Therefore, this report discusses the consumer buying behaviour for a medium level car i.e. ranging between $30,000 to $35,000.

The target audience for such a product is the customers above 30 years of age. The customers can be working in the corporate sector and also can be business owners. The product is a medium level luxury sedan car with some of the best features in the segment.

Consumer buying behaviour in automobile industry

The factors that influence the buying behaviour of a customer can vary from product to product. For example, a customer is less likely to get influenced by multiple factors when buying a pen or a chocolate, whereas a customer will take tens of factors into account before buying a car. The factors that will influence the buying behaviour of a customer while making a purchase decision for a car are discussed below:

Brand image à the first and the most important factor that influences the buying behaviour of a consumer in the car market is the brand image of the manufacturer. Consumers are more likely to make a purchase from a automobile company that has a firm market reputation.

Price of vehicle à the next factor that governs the consumer behaviour and buying decision in the car market is the price of the vehicle. It is obvious that car can vary in price i.e. a customer can buy a car from $5,000 to $5 million. Thus, the price of the car, along with the purchasing power, plays an important role in the customer buying behaviour (Nezakati, Kok, & Asgari, 2011).

Fuel economy à in certain markets, like India, customers are highly concerned about the fuel economy of their vehicles. So much so that certain brands advertise their cars on the basis of their fuel economies. Thus, fuel economy too plays a vital role in the consumer purchase decision.

Aftersales service and maintenance cost à A car is a machine and a machine has to be maintained on a regular basis. Making a purchase decision for a car is tough because purchasing a car means entering into a long term relation with the brand because the car has to be serviced and maintained in the future. The quality of customer care service, after sale services and the cost of maintenance of a car have a great influence on the purchase decision of a customer (CCPC, 2016).

There are some other important factors, such as offers, discounts, trade in value, etc. that can have an impact on the buying decision of the customers but the the important factor of all is:

Features and comfort à as the product is a luxury sedan car priced in the medium range, the features and the comfort that the car offers will have the maximum influence on the buying decision of a customer. The customers willing to purchase a luxury sedan car will obviously demand some best in class features and a comfort level that can offer them a great value for their money. Thus, the features and the comfort that a car offers to its owner will be the greatest influencing factor that will govern the buying decision of a customer.

Conclusion

The market for automobile industry is tough and highly competitive. For a medium level luxury sedan car, the target market is the upper middle class in general, which would be influenced more by factors like status symbol, after sales services, brand value, brand image, quality of vehicle, features, etc. as compare to factors like price or trade in value. Thus, the companies operating in the automobile sector and dealing in this segment should carefully analyse the buying behaviour of the customers and market their products accordingly so that they can create a demand for their products and can outperform their competitors.

Recommendations

For a company that wants to establish itself in the mid-level luxury sedan segment, it is imperative that it targets an important factor that influences the customer buying decision in that particular segment and the factor is comfort and features. Customers buying a luxury sedan will show more inclination towards the features and the level of comfort that the car has to offer and will base their buying decision on this factor. Thus, by offering more features and a greater comfort level, a company can definitely create a demand for its product in the market and can outperform the competitors.

Bibliography

Kardes, F., Cronley, M., & Cline, T. (2016). Consumer Behavior By Frank Kardes, Maria Cronley, Thomas Cline. Cengage Learning.

Monga, N., Chaudhary, D. B., & Tripathi, S. (2012). Car market and buying behavior- a study of consumer perception . international journal of research in management, economics and commerce, 2(2).

Nezakati, H., Kok, K. O., & Asgari, O. (2011). Do Consumer based-factors influence consumer buying behavior in automotive industry? (Malaysia Evidence). International Conference on Sociality and Economics Development, 10.

CCPC. (2016). Consumer Behaviour When Purchasing Cars. Retrieved May 22, 2017, from ccpc.ie: https://ccpc.ie/consumer-behaviour-when-purchasing-cars