Consumer Decision-Making - Toyota Camry - Case Study Example

Executive Summary This paper evaluates the manner in which different internal factors has an impact on consumer behaviour and purchasing habit by analyzing the same for Toyota Camry. It is seen that different variables like need, perception, personality, level of involvement, motive of purchase and others have an impact on the overall demand for goods and services. Marketers while looking to develop strategies need to analyze those and based on it have to develop strategies so that customers can be attracted and retained. This will help to maximize their effort and increase the chances of the brand being successful. Table of Contents Executive Summary 1 Section I – Five steps in consumer decision making 3 Introduction 3 Problem Recognition 3 Information Search 3 Evaluation & Selection of Alternatives 3 Decision Implementation 4 Post Purchase Evaluation 4 Section II – Selection of Product, Segmentation & Positioning 4 Selection of Product 4 Highlights of level of involvement 4 Perceived Risk 5 Past Experience 5 Interest 5 Emotions 6 Present Situation 6 Market Segmentation 6 Target & Positioning 7 Section III – Relevance of internal factors & Maslow Hierarch of Needs 7 Maslow Hierarchy of Needs 7 Personality 8 Perception 8 Attitude 9 Conclusion 9 References 11 Section I – Five Steps in Consumer Decision Making Introduction Consumer behaviour has a role in determining the manner in which people are persuaded and guided towards purchasing a product or services. The behaviour of consumer gets influenced due to different internal and external factors as each factor has a role in determining and shaping the demand pattern. The customer buying process is thereby dependent of the different process which is as Problem Recognition This is a situation which highlights the imbalance which has been created between what the customer wants to purchase and what he actually has thereby creating a problem which exposes the different stimuli so that the different needs can be fulfilled Information Search When the problem is recognized customers started to search for relevant information pertaining to the product or services. The customer uses both internal and external sources to find out the required information. Evaluation & selection of alternatives The customer searches for different options and alternatives and evaluates all of them so that the best possible one can be taken. This helps to analyze the different options which are available before arriving at a decision Decision Implementation This is a phase where the final decision among the alternatives are made and the customer based on the different needs and requirements selects the options which he seems to be the best one. Post Purchase Decision The post purchase decision helps the customer to evaluate whether the decision was correct or not and looks at evaluating the options based on the fact that whether it resulted in low purchase involvement or high purchase involvement so that the future steps and directions can be developed accordingly. Section II – Selection of Product, Segmentation & Positioning Selection of Product The product which has been examined so that the role internal factors have on them can be identified is Toyota Camry. The need for car is usually dependent on the psychological need of the customer as having a car fulfils the utilitarian need of the customer. People looking to purchase Toyota Camry look at fulfilling their esteem needs as they have a special status in the society and look towards achieving the those needs (Kotler & Armstrong, 2006). Since Toyota Camry is aimed towards high end customers the same has been priced in that segment. Highlights of level of involvement The different factors highlighting the level of involvement with the product is Perceived Risk Toyota Camry through its different product attributes, marketing mechanism and design has looked at determining the manner in which the level of involvement is garnered. The process has become efficient for Toyota Camry because of the level of involvement of different people while looking to purchase the product has provided the room and scope through which better needs of customers are satisfied. Past Experiences This is in addition to the past behaviour and experience which guides people towards purchasing the different products so that customer buying behaviour gets influenced and a need or urge is created which will help to satisfy the different level needs of the customers. Learning also has a role in shaping the manner in which customer makes a decision regarding a product or services. A customer who has undergone good experience will be guided to purchase the same product again and again. This is in fact supported by recent experiences as customers’ recent experiences guides them more compared to past ones as the recent experiences are easily remembered and guides people (Hawkins, Best & Coney, 2006). Toyota Camry has looked at ensuring that the customers experience gets enhanced and has developed their marketing strategies accordingly. Toyota Camry apart from the product offering also looks at providing after sales service which has created a positive impact on customers and guides people. Interest Toyota Camry is purchased by customer based on the motive that it helps to meet the high end needs of the customers. The car has also been designed and developed in such a manner that it denotes the same features which customers are looking for. This has helped to develop a process where the motive of customers which is to purchase cars so that esteem needs are fulfilled needs to be understood (Mowen & Minor, 2009). Emotions A person who is emotionally attracted towards a particular brand will purchase the same product (Kotler, 2009). Toyota Camry which is aimed towards high end customers has been looking towards creating the same so that a positive attitude can be created. Toyota Camry has been able to work on the positive emotions and shape the customer behaviour so that positive signals can be generated through which the same products will be availed and customers’ retention becomes possible. Present Situation This is matched by the fact that life style of people also determines the purchasing habits of people. Customers who are richer and prefer a lavish lifestyle will look at purchasing products which are trendier and costly in compared to people who are not (Dadfar, 2009). Market Segmentation Toyota Camry has segmented their market based on the different needs and requirements of the customers are has looked at segmenting the customers based on price. This is supported by the fact that the entire mechanism which has been adopted looks at meeting the higher level needs and ensures that the customers belonging to the upper category are attracted so that the basic fundamentals which will shape the business performance can be ensured. Target & Positioning Toyota Camry has looked at positioning its product for the high end customers and has thereby designed and developed its product in such a manner that it meets the different high level needs. This has resulted in attracting people towards Toyota Camry based on the lifestyle that the customer demonstrates. This aspect has also helped them to decide their positioning strategy and has transformed and developed their business so that the different needs and requirements are easily met. The overall phenomenon has thereby resulted in brining a change in the attitude of people as customers based on their lifestyle determine the purchasing habits. Section III – Relevance of internal factors & Maslow Hierarch of Needs Internal factors shapes the purchasing habit by determining the manner in which customer decision making process is shaped so that the overall framework looks towards ensuring better customer satisfaction Maslow Hierarch of Needs Toyota Camry looks at meeting the higher level needs of customers as the targeting strategy and positioning strategy has been developed keeping the same in mind. Toyota Camry has looked at positioning its product for the high end customers and has thereby designed and developed its product in such a manner that it meets the different high level needs. This has resulted in attracting people towards Toyota Camry based on the lifestyle that the customer demonstrates. This thereby helps to fill the high level needs of the customers and brings about in satisfying the esteem needs as it provides the customer with an opportunity where they are able to live up to the expectation of social status which they demand thereby helping to fill the social esteem needs. Personality Another important internal factor having a role in customer behaviour is personality. Personality shapes the purchasing behaviour as it determines the manner in which people will purchase the product. A person who demonstrates introvert quality aims at purchasing products which are less risky while an extrovert person will look at being innovative and purchasing risky products so that the different high level needs can be achieved (Mousavi, 2009). Toyota Camry thereby looks at working on the same fundamental and has developed strategies which are aimed towards meeting the high end needs by highlighting the different product attributes, style, design and other features. The different features are matched with the personality attributes which the customer has and based on it the customer purchasing habit is determined. The product has thereby been able to appeal to people based on their personality and perception which has thereby enabled and provided the opportunity through which customers have been attracted towards the product. Perception Perception is another important factor which has a role in shaping consumer decisions as consumers prefer to purchase those products which is superior and provides higher value for the product when compared to the actual money which has been paid. Consumers look at purchasing those products which according to their perception provides something extra compared to others (Loudon & Della, 2002). Toyota Camry has been able to identify those and look towards developing their strategies based on the different perceptions of the people. This brings a change in the attitude of the people and creates the required opportunity through which the different needs are better satisfied. Toyota Camry through their product attributes and features have looked towards creating a positive perception on the minds of the consumer so that they can be guided towards purchasing the same product. Since, people perceive Toyota Camry as a superior product compared to other cars in the same segment it has thereby been able to create a positive impact on the customers and has guided them based on different dimensions thereby brining a change in the attitude of the people towards the product. Attitude This is matched by another important determinant which is the customer attitude towards the product as it shapes up their purchasing habits and determines the fundamentals based on which customer demand will be determined. Customers attitude towards Toyota Camry is determined by the product offering as the product is trendy, spacious, power and differentiates itself from others which has thereby helped them to ensure that the attitude of customers gets shaped towards the product. Toyota Camry has worked on different areas and aspect which has thereby shaped the overall demand for cars as it has brought about a change in the perception of the customers and determined the manner in which their purchasing habits will be shaped. This has impacted the purchasing decision making for customers and has created the required changes through which customers are being attracted towards purchasing Toyota Camry. Conclusion The different internal factors which have been highlighted shows the manner in which customers behaviour gets shaped while looking to purchase Toyota Camry. Each and every internal factor is equally important because of the fact that the impact which factor has on consumer demand is hard to find out. This thereby requires proper analysis of the different dimensions and marketers needs make continuous adjustments based on the different needs and requirements of customers so that the customer demands and expectations can be met. Having properly analyzed and understood the different internal factors which influences customer demand shapes the purchasing habits and ensures that the different efforts which the customers takes towards ensuring that more and more customers purchase their product is improved. This will thereby help to satisfy the different needs and demands of the customers and ensure better positioning so that the long term prospect of the business improves. References Dadfar, I. 2009. Identification and prioritization of the effective factors on buying decision of the cars . M.A thesis, Tehran University, Tehran Hawkins, D, Best, R, & Coney, K, 2006, Consumer behavior, compilation of the marketing strategy, Translated by Ahmad Roosta & Atiyeh Botahi, Sargol publication, Tehran. KhajehNasiri. E, 2008, What is the consumer behavior or customer behavior, Arak Islamic Azad University Publication. Arak. Kotler, P, Armstrong, G, 2006, Marketing principles, Translated by Bahman Frozandeh, Amokhteh Publication, 5th Publication, Esfahan. Kotler, P, 2009, Marketing management: analysis, planning, implementation and control, Translated by Bahman Frozandeh, Atropat Publication,1st Publication, Esfahan. Loudon, D, & Della, B, 2002, Consumer Behavior Concepts and Application, McGraw- Hill, New York. Mowen, JO & Minor, MI. 2009. Consumer behavior ,internal and external factors, translated by Abass Saleh ARdestani and Mohmmad Reza Sadi. Diba puplication, Tehran. Mousavi, N, 2009, „Investigation of the effective cultural factors on decision making for buying cars‟, M.A thesis, Shahid Beheshti University, Tehran. Read More