Impact of Price Changes on the Brand Equity of Toyota in Saudi Arabia - Essay Example

Since price movement can affect consumers’ purchasing behavior, a majority of marketing managers are concerned with analyzing the impact of price changes on brand equity and consumer behavior. Most of the available research studies are focused on examining the impact of marketing mix on brand equity (Buil et al., 2011; Chattopadhyay, Shivani, and Krishnan, 2009; Villarejo-Ramos and Sanchez-Franco, 2005; Yoo, Donthu and Lee, 2000). Specifically, the study of Valette-Florence, Guizani, and Merunka (2009) examined consumers’ opinions with regards to the impact of sales promotion intensity and brand personality in the development of brand equity.

Indrayani, Siringoringo, and Saptariani (2008) analyzed the impact of price changes on customers’ brand loyalty sensitivity whereas Villarejo-Ramos and Sanchez-Franco (2005) tested the impact of price promotion and marketing communications on several dimensions of brand equity such as brand awareness, brand image, brand loyalty, and perceived quality. Even though there are quite a lot of existing research studies that aim to examine the impact of price changes on consumers’ purchasing behavior and the company’s brand equity (Buil et al.

, 2011; Chattopadhyay, Shivani, and Krishnan, 2009; Villarejo-Ramos and Sanchez-Franco, 2005; Yoo, Donthu and Lee, 2000), most of these studies were examining non-durable products or fast-moving consumer items like household cleaning products, food, and beverages, clothing and textile, or footwear. Since the cost of fast-moving items is relatively cheaper as compared to durable items, the research findings presented in these studies may not be applicable in the case of Toyota in Saudi Arabia. In relation to the impact of price changes on the purchasing habit of consumers, this study will seek to determine how consumers would respond to a sudden price adjustment in Toyota vehicles in Saudi Arabia.

Throughout the course of this study, the readers are expected to gain a better understanding of how consumers would behave in response to incremental price changes in selected models of Toyota.