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Globalization and the auto industry
Globalization and the auto industry
Competition in the Global Automobile Industry
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Consumer Behaviour When consumers decide to buy a car, there are many factors which influence their decisions. The customers follows following generic model while deciding which car to buy. Need recognition: The need might arise due to internal or external stimulus. Internal stimulus for buying a car would be when a consumer need arise out of a need for safety. External stimulus can arise when a person looks at a friends car and would want to buy a similar one. The size of the car is influenced by the family size, income, social status, safety, convenience. In the recent times, car is just not luxury but has become more of a need for safety and convenience. Owning a car now is a matter of social status. People pay high premium to brands when buying a car just for the sake of maintaining their status symbol and as luxury. …show more content…
Consumers are influenced the most by personal and experiential experience and has the greatest impact on the decision. Public and commercial sources just adds to the information but does not have an impact to the extent of decision making. Consumers start partitioning the market and then start eliminating from the total set. A hierarchy of characteristics of the cars is formed and which guides the consumers on their selection from the total set available. Consumers used to be brand dominant years ago. They might prefer General Motors and then look at the different styles this company offer. Now the consumers are becoming nation dominant. They look for cars which are known to originate from a country. They might want to buy a German car and then look at different companies which are German origin and then decide on the brand that they want to buy. Consumers can be type/price/brand dominant. By type, we can look at sports, passenger cars etc. Consumers might be directed because of the price of the
These data affect the consumer decision-making process through alternative evaluation, the consumer compares the different choices to best meet their individuals need. The consumer decides the criteria for judging the alternative products or services by evaluative criteria. Consumers use tangible and intangible criteria, and when evaluating alternatives, determine qualities that are important and evaluate the alternatives.
All of these factors are important to monitor as this will directly affect the decision making process. Bike size and price range will help to determine the size of the market as far as existing competitors and estimate the base price in each market segment. Product dimension sensitivity and preference indicates the expectation of the products from our consumer’s viewpoint. It is important to interpret the market segment reports and to analyze how the segments are influenced by advertisement such as televisions, magazines and internet. It is important to invest money in advertisement media to attract consumer in each market segment without over spending or under spending. The media viewing habits help to determine the best way to reach the customer for each segment.
... of consumer behaviour, lays emphasis on the objectivity of science and the consumer as a reasonable and sensible decision maker. While, the interpretive point of view is in contrast to that of the positivist, in that it emphasises on the importance of the subjective meaning of the consumers individual experience, hence, it suggest that whichever behaviour a consumer performs is subject to diverse interpretations to a certain extent than just a single explanation to it.
There are many different automobile companies providing buyers with many styles of cars, trucks, SUVs, and motorcycles. Toronto Star January 14, 2005 present ways to approach the automotive buying process. There are many different surveys, crash reports, and rating systems comparing different companies and their vehicles. Things you should look for when reading these published articles are who conducted the study? Who paid for it? Who gains from it? Who loses? These are all things to keep eye on as some automotive companies will run their own surveys making their products seem overpowering against the competition. Some prove their products are safer then the competition where the competition has been proven time and time again to make that survey seem inaccurate.
We all know buying a car is stressful and time consuming. So much is at stake: Pay too much and you feel ripped off and embarrassed. Plus, we do not want to admit to our friends and family that we got a bad deal. And buying a car is a huge waste
It does involve grouping of people (customers) into segments that do share common needs or will give a common reaction to a marketing event by the business. Toyota’s third generation Prius has created a new segment for hybrid cars along with its competitors. This segment caters to the need of the environmentally conscious buyer. This has opened up a whole new ...
Conclusion Companies are better able to market their products to consumers if they have a good Understanding of the consumers and the basic purchase decision process. By understanding the consumer and the type of purchasing behavior associated with different products, marketers are more likely to create a marketing campaign that positively impacts the consumer’s purchasing decision.
Once segments of customers have been defined, marketers need to select and evaluate which segments will be worth targeting. Cui and Choudhury (2003) define market targeting as marketing a product to a segment of customers due to the magnetism, for example size or growth, of the group. Marketers are able to select segments using undifferentiated, differentiated and concentrated marketing. By ignoring segment differences ...
a. Marketers analyze consumer lifestyles by looking at a range of characteristics (known as psychographic variables).
We all dream in the day we get to purchase our first vehicle. The day we stop asking our parents to take us here and there. Some may say buying a vehicle is a pain in the you know what. It can seem like a stressful situation if you're not familiar with the process. However, working in the car industry has taught me valuable tips and tricks that will help me teach you to save money when car buying.
A vehicle is one of the biggest purchases a person will ever make. Over the years, the prices of an automobile have increased due to the rise of inflation. Due to a price index, the price of an automobile changes over a certain period of time. Economists compare averages of automobiles to calculate the cost of each vehicle that presents itself on a car lot. When all of the above is calculated within the purchase of an automobile, it affects every area of making the automobile to selling the automobile. All of these factors are impacted together for the automobile industry as a whole.
There are four main factors influence the demand of cars. Firstly, the price of cars will affect the demand of cars. Secondly, the citizens’ income has the effect for the demand of cars. Thirdly, the government’s macroeconomic control policies will also effect the demand. Finally, the price of gasoline will affect the demand.
Today 's consumers be judged by society on the type of car that they drive like minivans are for mothers and Consumers feel better when they are driving a nice or new cars if makes them feel better about themselves .
While researchers can determine consumer behavior quite easily, it is almost impossible to get accurate and reliable data on why people buy what they do. How in the world can we figure out why consumers make the decisions in purchases they make, when we can only predict motives? Well, everything tends to be linked to a psychological trait that can help define the behavior of consumers.
Several factors affect consumers’ attitudes, actions and decisions. Public catch information from social networks, which is an important source of getting information and this, is also a very suitable source of information. People talk about their experiences with each other regarding a product or brand. This is how people get different kind of information about different brands and products. In marketing we call this thing electronic word of mouth. Word-of-mouth is evaluating or sharing experiences...