The first step to consumer decision making is problem recognition. The root cause to making a decision starts with recognizing a particular problem by a consumer. The consumer has a need or a want that should be satisfied. A consumer can recognize that his current car is not of the new standards and thus he/she is compelled to consider buying a new one.
The second step to consumer decision making process is information search. This involves the consumer looking for a product or services that effectively satisfies his/her wants. Most of the information received by the consumer is however through ...view middle of the document...
The last step to the consumer decision making process is evaluating his overall decision referred to as the post-purchase stage. The consumer analyses if the product or service has indeed satisfied his/her need (Peter, 2005).
The assignment focuses on the assessment of consumer behavior on choice of an automotive. The assignment analyses the marketing strategies used by automotive companies such as segmentation, targeting and positioning. Automotive are categorized under high involvement products. A high involvement product is defined as a good with high capital value and is only purchased after very serious assessments and considerations.
Market segmentation can be defined as an approach that involves the division of the target market into different consumer segments. There are various methods that are available for segmenting the target groups. They include geographical, demographical, psychographic and behavioral segmentation.
Psychographic segmentation stems from motivational research of consumers. This segmentation aims at relating the personality, character and buying behaviors of consumers. Psychographic segmentation analyses factors such as the opinions, activities, values and lifestyles of consumers in order to create various segments related to these factors.
Behavioral segmentation divides consumers according to researched factors such as their level of information about the product, their attitude towards the product and also their usage rate and response to the product.
Segmentation is important because it allows the marketer to sell to a specific group or otherwise referred to as a target audience. One of these target processes is referred to as differentiated target process. Differentiated strategy is selling your product or service to one or more market segments. This method allows the company to increase its customer base, sales and overall revenue. The advantage to this technique is that it helps expand the company’s sales reach (Levi, 2007).
Positioning is defined as implementation of the target strategy. A company can position itself as an operational excellent firm, a customer intimate firm or a technological effective firm. An operational excellent firm boasts strong competitive advantage in efficiency. The company is able to provide reliable services to its customers at more affordable costs than the competition. Customer intimate firms excel in service delivery. They are able to satisfy the customers’ needs exceptionally. Technological excellent companies on the other hand are able to provide products in the market that make use the best and latest technology.
Maslow (1943) in his study of motivation reiterated that individuals are motivated by the desire to achieve various needs. When a person has achieved a particular need, he/she seeks to achieve the next need. Maslow identified five important motivational needs that are...