1. Analyze the buyer decision process of a traditional Porsche customer. (5 marks)
There are 5 stages that consisted in the buyer decision process of a traditional Porsche customer such as need recognition, information search, evaluation of alternatives, purchase decision and postpurchase behavior.
i) Need recognition
Defined as the consumer recognizes a problem or need. In this case, Porsche customer are portrayed by their desire and affection for challenges but at the same time they are facing a financial advantage that they couldn’t enjoy the most. They tried to look for the differences in their aim included the car they purchase and drive every day. In the end, they make Porsche to be their ideal purchase.
ii) Information search
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In this case, why consumer chose Porsche among so many other brands? Porsche buyers not only treat their car as a transportation which convenient them, they also subsequently set criterion on their car while other car buyers evaluate alternatives based on specification which satisfy practical needs. For instance, saving petrol, eco-friendly, maintenance costs and others. To the buyers who want to purchase Porsche, they takes a gander at different thing such as the sound produced by the car, the speed, design, horse power and so on. They felt that car is something for them to be enjoyed and to be delighted with. The potential customer will look for options from other brands or different types or Porsche cars that are compatible to suit their taste, desires or …show more content…
Which concepts from the chapter explain why Porsche sold so many lower-priced models in the 1970s and 1980s? (5 marks)
i) Cultural factors – Social class
Porsche is always a want to consumers because they have the mind of concept that owning Porsche is meant for upper social class and it could bring them to a higher status as the value is high. Therefore, the Porsche 914 and 944 models were out in the market in 1970s and 1980s to attract consumers from different social classes who could not afford a traditional Porsche model. At that time, consumers bought the 914 and 944 models to satisfy their needs and wants because they wanted the image of the brand. It also boost their confidence and low self-esteem while being associated with upper social classes.
ii) Personal factors – Economic situation
Porsche came out with the models of 914 and 944 because they take the consumers with lower income into account during the recession of 1970s. They redesign, reposition and reprice the vehicles so that it is allow the consumers to purchase the product for the purpose of social class, family needs or status. With this, Porsche still able to create loyal customers even if the economic situation did affected their business when they have considered their customers’ personal income, savings and interest
I can recall when my older sister in the 70’s had purchased a shiny new Ford Pinto and pulled it into the driveway. She used at that time what she thought was her best judgment along with an economical price but only to be succumbed by our Dad when he realized what she purchased. Ford Motor Company in the late 60’s were being overtaken by other countries car manufactures in the subcompact market. The Volkswagen Beetle was still formidable, and the VW Rabbit was on the drawing board. Datsun and Toyota were readying new models. Honda was preparing to change the nature of the competition with its Civic. (Lee Iacocca 's Pinto: A Fiery Failure) It would be 10 years later that Henry Ford II, Ford Motor Co. Chairman would fire the person who ultimately
Vauxhall is owned by General Motors (GM), and is the second largest selling car brand in the UK. (MBASkool, 2008) The brand refers to ‘economy and functionality, cars for families and fleets’ (Rohrer, BBC, 2009). The main target group is the upper-middle and upper-class families in a mainly urban population. The main market segmentation is ‘families looking for affordable and reliable cars’. Vauxhall is a British heritage brand, but caters for the masses. The main competitors are Toyota, Nissan, Ford, Honda and Hyundai. (ibid).
A recent scandal involving up 500,000 Volkswagen cars comprising of 24 different model vehicles has dropped Volkswagen from their position as number one auto maker. The emissions of these cars were 40 times higher than the limits stated in United States emotions laws. One critical engineer James Robert Liang, has agreed to cooperate and pleaded guilty for cheating emotions testing with special software. This blunder has cost Volkswagen $15 billion, the jobs of those employees involved, and their reputation. Executives deny connections to the scandal and say lower level employees alone are to blame. Although this begs the question; what would an ethical engineer do in such a situation? Refusing to cooperate with his superiors, risks compromising his loyalty to the company and losing his job. However, if the scandal remains hidden, James has not only lied, but he has directly increased harmful emotions which harm the environment. He now faces 5 years in prison followed by deportation.
The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.
Many people seek to buy bigger, muscle-head vehicles and stride away from the weaker type vehicles based off of popularity. Weak vehicles are sluggish, cramped, and unflattering. Vehicles like this are given a representation of a dud or an embarrassment to drive. Hands-down people want to buy a nice car so that they have power and popularity. Many vehicles that you would never even guess are are just as good or better than bigger, muscle-head vehicles. You can't always judge a vehicle by its interior.The Toyota uses a trick to convince viewers that the ordinary,original, Prius is just as swift, and effective as a bigger,muscle-head vehicles. The commercial attempts to compare the new Toyota Prius has the leading, popular, voted car to have.
Imagine sitting at a stoplight in a Ford Focus and a Ferrari or a Lamborghini pulls up in the next lane. Does not one wonder how nice quality, and feel they have? With all the transmission problems and uncomfortable seats, one wonders why they are still driving an American car and not a Foreign one. Every brand has its own and unique car. While Foreign cars look dissimilar, they have that different and distinctive look, that makes them stand out and look exclusive and rare. Cars have been around since the late 1890’s, early 1900’s. The most popular car of old was the Ford Model T, it featured 20 horsepower, but only coming in the color black. Being the first high production car, it was widely requested all over the world. Soon after the Model T was shipped out and got looked at, Foreign countries started producing their own. These cars helped greatly, transporting troops and weapons long distances during the Second World War. Foreign cars are better than American cars due to their quality and efficiency. The car’s definition of what it means to be, their pros and cons, physical attributes, and American influence all contribute as well.
Among the customers who prefer Fiat Chrysler products includes middle-aged working women and young people, such as students who prefer smaller cars that are fuel efficient and cheaper to the pocket. Efficiency entices These groups of consumers. However, educational attainment does not play a significant part in the buying choices of Fiat consumers.
When Americans go to buy a new or used car, they look for great fuel economy, strong engine performance, safety features, and whatever else interests them. One thing is for certain, every consumer searches for the best they can afford. Over the decades, automobiles in general have become more efficient in every aspect because of technological advances in society. However, there are still some car brands that stand out over others. It is well known that a prestigious Mercedes-Benz is more reliable than a Jeep; the same can be said about foreign and domestic cars.
One of the differentiation strategies used by BMW is the creation of auto products that consumers can emotionally relate to. In building the BMW brand, the company has succeeded in positioning its products as prestigious or luxurious. Therefore, most consumers want to own a BMW car solely for the prestige it gives them. BMW products are not only purchased due to their usability or functionality but for the status they give the owner. Subsequently, when a person buys a BMW product, they are emotionally attached not just to the car but to the brand as a whole. This has created increased brand loyalty in BMW growing its customer base as more people search for the status associated with the company’s products.
The basic concept behind these theories and models are similar. Five steps describing the consumer purchase decision below followed by a brief description. 1. Problem Recognition 2. Information Search 3.
By the reading of it, Volkswagen management expressed what seemed like genuine shock when the EPA and California’s Air Resources Board revealed their joint findings regarding the automaker’s manipulation of US emissions testing for diesel cars outfitted with a particular 2.0-liter, four-cylinder engine.
One of the very first things a buyer should consider when looking for a car is what kind of car he/she wants. Many different factors can affect the car buying process. For one, the buyer must consider how big of a vehicle he/she wants and safety features like airbags, seatbelts, and working brakes. Itemizing a list of accessories can also help narrow down what kind of car to buy. While some people might prefer a Sedan with a large back seat and seat warmers, others may prefer an extreme luxury car with full stereo systems and miniature televisions. Every person has different tastes in accessories; luckily, there is a vehicle that can fit almost every personality. Most new models have the latest technology installed, although some of the “newer” used cars have the option of adding in those accessories. Once the...
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a competitive advantage over their competitors in the automotive industry. The market scope that Toyota uses is a broad one that encompasses nearly every type of customer that is in the market to purchase an automobile. Toyota is able to target such a large market because they have something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or those who live in areas that face severe weather conditions, hybrid models like the Prius for the eco-friendly customers that are interested in saving the environment, along with the standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges.
Perhaps the CAR could be initially launched in a small selected test market, stressing the dialogue with the customers about the value of the product and service. Afterwards, target pricing in pace with to the company’s strategic objective of a deft market penetration can beacon engineers to rebalance the technological features of the CAR. This also accommodates better for investors’ expectations of a fixed return. Moreover, it allows AUDI’s management to concert its pricing strategy and counteract unforeseen changes in the all too sensitive demand, as the link between customer value perception and product’s cost becomes alive. After all, relying solely on a forecast is not advised, as it cannot possibly capture all the dynamics of a fairly unknown market for a project which needs to age in the years to come.
Schmidt, J. (2010, September 29). Strategy and targets of mercedes-benz cars sales and marketing. Retrieved from http://www.daimler.com/Projects/c2c/channel/documents/1931898_Daimler_UBS_Paris_DJSchmidt_Handout.pdf