...Consumer Problem-solving activity: New car purchase Problem Recognition Problem recognition is comparing a person’s ideal situation against actual. Recently, my family has been considering whether our current car is meeting the needs of our family of 5. The kids are getting older and are involved in sports and music that require more transportation space for sports gear, musical instruments and the need for more “elbow” space. We would like to go on road trips for family vacations and visit family members who live hours away. Having an extra vehicle will certainly make it easier for both parents to take the kids to their activities especially when drop off and pick up time is the same for different kids. Keeping the current vehicle and purchasing a minivan will meet the family needs in different capacities. Information Search In recognizing this problem, I spoke with friends and relatives who already own a minivan. Some parents who I have met through sport teams have expressed what a great difference a minivan has made in their family lifestyle and comfort. They expressed that the space, safety and convenience in having a minivan is certainly worth it for any family. All expressed that “stow ‘n go” in their minivan has been of great convenience and offered to even demonstrate the features to my wife and I. My very close friend in Montreal uses his Dodge Grand Caravan for the same reason I would need a minivan and is thrilled that his family of six can go on long trips...
Words: 730 - Pages: 3
...Product Purchases and the Economy ECO/372 October 12, 2015 Product Purchases and the Economy A new car purchase is one that takes a large amount of consideration and budgeting. The most important economic indicators to consider when investing in an automobile purchase are unemployment rates and interest rates. These indicators will assist a person when deciding whether to purchase new or used. Is the right time now or later to purchase a truck? Economic Indicators The automotive sector is a cyclical business. Since it is a cyclical business, changes in the revenues and earnings of automotive companies are more likely due to the state of the economy and the strength of the consumer. Sales in the automotive sector are higher when economic activity is strong and people feel confident about their future economic prospects. In this environment, more people are likely to make an automobile purchase. Clearly, unemployment is a major factor in this environment. People do not feel optimistic about a major purchase when they are unemployed. People without jobs are less likely to have the means to afford a car. Someone with a job is not likely to make a major purchase if he is worried about losing his job. In 2009, the unemployment rate was between 8% and 10%, and auto sales were 9 million on an annualized basis. In March 2015, the unemployment rate was 5.5% and auto sales were 16 million. Interest rates affect the financing costs of purchasing...
Words: 1064 - Pages: 5
...Leasing vs. Buying a Vehicle The great debate to lease or buy a car? Which one of the two options is the smarter or he better choice? The answer to this question is both and neither are the best options. Confusing one may think so, however, the best way to get to the answer is to ask yourself what is important to you. Every person is different with different values and priorities that determine for them whether leasing or buying is the answer. There are people who desire to drive a new vehicle every few years with little or no maintenance costs. Some people have a strong desire to own the vehicle, as opposed to lower upfront costs with no ownership. One of the two of the biggest temptations for many people to lease verses buying are that the monthly costs to lease are cheaper than the monthly payments to buy a car. The other is that they are able to have a new car every 2-3 years, as opposed to the people who purchase. People who purchase generally hold on to the car for an additional 2 years after the last car payment. Let’s review the pros and cons of leasing. The advantages of leasing are it offers lower monthly payment and the ability to drive a new car with all the new bells and whistles every 2-3 years (ehow). There is a tax benefit of paying lower taxes since the individual is paying the taxes on the monthly payments verses the full value of the car. From the two examples so far it appears that leasing is a great situation, and everyone should lease; once...
Words: 1172 - Pages: 5
...influence the buying behavior could increase the sales volume. The consumer behavior is an important factor to indicate the decision making process in buying a car. The buying behavior would influenced by the marketers. The job of the marketers is to “think what customer want” and to guide the company into developing offers, which are meaningful and attractive to target customers and creating solutions that deliver satisfaction to the customers, make profits to customer and benefits to the stakeholders. 2.0 Consumer purchases decision process In the role of consumer, they constantly face choices like how much to spend, what product to acquire, and where to purchase the product. Marketer need to understanding of how these decisions are in order to develop appropriate marketing strategies. The consumer buying decision process comprises five stages: problem recognition, information search/ search for alternatives, evaluation of alternatives, purchase decision, and post-purchase evaluation. The buying decision process is influenced by psychological factors, situational factors, and also social factors. This consumer buying decision process mentions about whether to purchases, what to purchases, when to purchase, from whom to purchase, and how to pay for it. For example, a consumer names Ali decided whether to buy a car, what model to buy, when to buy, from whom to buy, which dealer, and how to pay for it. In the life reality,...
Words: 1938 - Pages: 8
...I have, in the past, found it necessary to purchase a car, and have purchased several over the years. My first car was an old Dodge Charger that I paid $300 for in 1989. It got me from A to B and back again, and that was all that mattered. As I grew older and became more financially stable I purchased my first new car, a Hyundai Elantra. It was brand new, with all the bells and whistles, and I still drive it today (it is covered in duct tape- eleven years later). I drive it because it still works and I am less a car payment. Whether a car is new, or used most people require a vehicle to get through their everyday tasks. Cars are a necessity in most areas of this county and around the world, making the car industry a global economic force. Possible causes for change in supply and demand for cars: Product recalls – several years ago the Toyota Company had major recalls of several models that caused major accidents and deaths. The demand for that specific manufacturer decreased and Toyota was forced to rethink how to market its vehicles to regain the trust of its consumers. Price of gas – the price of gasoline fluctuates and has risen over the last few years to all- time highs. The wars being fought in and around oil-rich nations doesn’t help. People will purchase more gas efficient vehicles when gas prices are high. Gas has low price-elasticity because we need it to run our cars, but we can choose different cars to counter act the blow of high gas prices....
Words: 745 - Pages: 3
...Choosing a Car Choosing a car to buy is one of many important choices in life. Most people are very picky when it comes to choosing a car. The three important factors when buying a car are the price, appearance, and the name brand. When buying a car, the price of the vehicle is important. If the customer is a wealthy individual, they would purchase a new car. When buying a new car the buyer is able to test drive the vehicle, and if the car and price meets their demand they are ready to buy the vehicle. If a customer is looking for a cheap car, they would purchase the vehicle from a used car lot or a car auction. At a used car lot you are able to test drive the vehicle and see how the brakes and other features work. In contrast, at a car auction the consumer is only allowed to see what the car looks like and listen to how the engine sounds on each vehicle that is being auctioned. Then, when they find the one that will best meet their demands, they will place a bid. Looks mean everything when it comes to choosing a car. When buying a car most people choose their car based on what color it is and the appearance of the car itself. Before picking a color for their vehicle, the customer looks the appearance of the car such as size of the vehicle and the interior of the vehicle. If the customer wants a large vehicle where they can haul heavy objects such as a trailer, they would purchase a heavy duty truck such as a Ford F150. If they are looking for a family vehicle they would...
Words: 536 - Pages: 3
...name, “Mercedes-Benz.” They are mainly luxury vehicles and they include: “Sedans, Coupes, SUVs & Wagons, Convertibles & Roadsters, Hybrid & Electric cars, trucks, coaches and buses”[1]. Mercedes-Benz has a strong presence in the motor industry based on its diversity of production. Its vehicles have state-of-the-art luxury gear with impeccable customer service. The targeted customer base for this brand includes the middle and the high class due to the vehicles’ luxurious nature. 1. Purchase Process: The following are the steps for purchasing a new Mercedes Benz type of vehicle a. Research on model Mercedes-Benz always encourages its customers to research about the car models before they make the purchase. This can be done in person, by visiting the car outlets or doing it online. In order to purchase a Mercedes-Benz car model, a customer is required to select the model of choice from a preferred dealer-outlet after agreeing on the qualities. Dealers are found in various collision centers that are certified by the brand. Alternatively, they can also be bought via the internet through their e-commerce websites. The brand uses two main websites. The first is Mbusa[2] and Mercedes-benz.com[3]. These two sites have the vehicle types. The models differ on price, gas mileage and internal features. Finally settle on the car model. b. Get pre-approved (online or offline) Customer is required to be pre-approved...
Words: 2683 - Pages: 11
...business customers go through? What are the factors affecting their behavior and in what ways the behavior of these two parties differ? Answers to all these questions raised will be examined through several examples to come up with the major differences between the individual consumer buying behavior and the business customer buying behavior. As individual consumers we make countless number of buying decisions throughout our lives. While some of our purchases are made unconsciously or requires low involvement, in some others we go through a long decision process. But in general, the individual consumer behavior is related to internal or external stimuli, shaped by consumer psychology and certain cultural, social or personal factors going through the buying process. The buying process starts with the recognition of a problem and followed by several stages like information search, evaluation of alternatives, purchase decision and postpurchase behavior. Personally, the purchase of my first car was one of the most important purchases of my life up till now....
Words: 1970 - Pages: 8
...investigation into the factors that influence the Glaswegian public’s choice of car. Student ID Number: 2059626 Date of Submission: November 29th, 2012 An investigation into the factors that influence the Glaswegian public’s choice of car. Rationale The number of automobiles had risen to over 1 billion vehicles all the world in 2010, which is 20 times more than this number in 1986(Sousanis, John,2011). Car plays a indispensable role in today's society, according to a survey from World Bank(2011), the number of ownership of motor vehicles per 1,000 people is more than 500 in most of developing countries, especially for Monaco, the number was 908(World Bank Data,2009). Although cars have become more and more commonplace, but the cars are still expensive commodity, also there is no doubt that the final decisions are usually made after careful consideration when people purchasing a car(Kathuria, Singla,2012). At the same time, as the vehicle types supplied to be chosen by consumers have become more and more various. When consumer facing with abundant of choices, they become more and more confused and irresolute. With the segmentation of automobile market, the factors that affect the public' car choices are more and more diversified. According to Couton et al.(2006), various studies have applied hedonic price modeling to show that price variation among new cars can be explained by differences in key product characteristics such as...
Words: 2889 - Pages: 12
...Introduction The competition in today’s car environment is becoming increasingly intense, as car manufacturers search for any edge over competitors for securing a larger market share. Car manufacturers are beginning to realise the importance of marketplace awareness of their brand within the minds of consumers, and how this recognition affects the decision making process. This paper will attempt to discuss how consumers research and purchase new cars, the importance of the purchase itself and how the knowledge and associations of a brand influence consumer decision-making. Lastly, it is then possible to offer response solutions for manufacturers in the marketplace, in order to adequately meet the weight of these consumer perceptions. The brand that will be examined for this purpose is the Czech automobile manufacturer Škoda Auto. Škoda Auto First looking at the SKODA car brand itself, we will examine the current brand strategy as well as the target market for the brand as a whole. The SKODA brand is known for its value, while still maintaining quality, safety and reliability. Its current positioning strategy is of an attractive, emotional automotive brand for the entire family. Brands like SKODA are more of a volume brand, priced near the market average and are not purchased for their status or exclusivity but for reasons such as value for money (Understanding brand-dealer retention article). Further research from Australia wide car dealerships found SKODA buyers to be highly...
Words: 1067 - Pages: 5
...influences the buying process, and how, when and where consumer buy (Marketing Teacher, 2014). The car market, in the same manner as other markets, has entered an aggressive period in which, despite the fact that volume sales have expanded, business sector qualities are declining as a consequence of high capacity, abnormal amounts of imports and business immersion. Ladies are still much more probable than men to live in family units with no car, despite the fact that the example is much more equivalent among more youthful men and ladies. Ladies' increased earning power and rising their financial, thus make them one of the developing significance in growing car producers' debilitated deals targets. (Kaplan, 2015) For Volvo company, they have done a research indicates that in the United states, women purchase about 65 percent of cars and influence 80 percent of all car sales (Walter, 2012). Therefore, Volvo find out the woman preferred car by forming a group of all female team project manager and automobile designer, thus they found out that female customer in the premium segment demand for everything that men wanted in term of the performance, prestige and style. (Carscoops, 2015) In my opinion, other research method that Volvo can use is the Online research methods. The Internet now reaches the great majority of households in the world, and thus, online research provides new opportunity and has increased in use. One of the benefit of online surveys is the use of conditional...
Words: 2666 - Pages: 11
...The BMW Group – one of Germany’s largest industrial companies – is one of the most successful car and motorcycle manufacturers in the world.With BMW, MINI and Rolls-Royce, the BMW Group owns three of the strongest premium brands in the automobile industry. The company formulated their Strategy Number ONE, which aligns the BMW Group with two targets: to be profitable and to enhance long-term value in times of change. And this applies to technological, structural as well as cultural aspects of our company. Since 2007, they have been implementing various initiatives in keeping with the strategy’s four pillars: Growth, Shaping the Future, Profitability and Access to Technologies and Customers. The four pillars of strategy number one: 1.Growth BMW adopted the view of “customers service=growth driver” as the underlying principle to grow its market. In 2008, the company had accumulated more than 14 million BMW automobiles on the road,which in recognized as 14 million potential service customers. For this reason,BMW launched global initiatives to systematically exploit to huge sales potential of the service and part business,enabling the organization to reach out entirely new group of customers. As result,customer focus became the heart of all of BMW’s sales and marketing activities. BMW focused on developing its growth market by continuously pursuing targeted regional expansion strategy particularly in parts of Asia. 2. Shaping the Future BMW’s future primarily...
Words: 1212 - Pages: 5
...Porsche: Guarding the Old While Brining in the New 1. Analyze the buyer decision process of a traditional Porsche customer. The buyer decision process of a traditional Porsche customer starts with the consumer’s recognition of a need for the product. In this case it is the need for a new car. The Porsche marketers look to those needs that consumers look for in a car and find out what brought previous customers to their product so they can satisfy the needs of the new customers searching for their next car. After deciding the need for a car the consumer will potentially indulge in further research towards the options available. This can include searching on the Porsche website, looking through ads of their products, or even going to the dealerships to gather more information on the car that they may want. After researching about the Porsche cars the consumer is interested in and then look at the competitors of Porsche such as the Toyota Supra, Nissan GT-R, BMW 6 series, Etc. The next step is for the Porsche consumer is to make the decision to buy their car. When the consumer decides on the Porsche then comes the post purchase behavior. The new Porsche owner will be zooming around the streets marketing Porsche without even having to say a word. This new owner can give feedback to the company where they can turn that feedback into a marketing technique for new customers to purchase their car. 2. Contrast the traditional Porsche customer decision process to the decision process...
Words: 793 - Pages: 4
...self-concept of its buyers? 7 Conclusion: 8 Question 1 : Analyze the buyer decision process of a traditional Porsche customer. What conclusion can you draw? Buying a product goes to 5 different stages, which are: 1. Need recognition. The profile of a Porsche car buyer is a financially successful person that loves a challenge. They’re hard working people and set high goals in everything they do and often have white collar jobs. These customers separate themselves from the mass and feel attracted to exclusive sophisticated things and expect the cars that they drive in to satisfy this feeling of exclusivity. 2. Information search In information search the consumer searches about the product which would satisfy the need which has been recognized by the consumer in the stage previous to this one. In this case the product that would satisfy the need of the consumer would be a sports car. 3. Evaluation of Alternatives As Porsche buyer sees a car as transportation vehicle that’s not only for transportation but also as a vehicle that must be fun to be driven and needs to be enjoyed. A normal car driver only...
Words: 1800 - Pages: 8
...1. Market 1. Market Size |‘000 |2006 |2007 |2008 |2009 |2010 |% Growth | |Babies/ Infants (0 – 2 years) |141 |144 |150 |152 |152 |7.6 | |Kids ( 3 – 8 years ) |333 |334 |343 |343 |335 |0.7 | |Teenagers (9 – 12 years) |252 |256 |259 |258 |257 |1.8 | |Teens (13 – 19 years) |436 |464 |486 |490 |492 |12.7 | |People in their twenties |592 |610 |654 |686 |700 |18.3 | |People in their thirties |737 |761 |794 |817 |833 |13.0 | |Middle-Aged Adults (40 – 64 years) |1,542 |1,628 |1,735 |1,799 |1,853 |20.1 | |Older Population |368 |391 |418 |443 |455 |23.9 | Table 1.1a Consumer Segmentation: 2006 - 2010 According to the Social National statistic Euromonitor International, Singaporeans...
Words: 6279 - Pages: 26
