I. Context and Problem/Opportunity (100 words) Buying a car is a high-involvement purchase as you can be faced was a large selection of choices. When figuring out which car to buy, consumers consult the advice of family and friends. However, according to a vehicle customer survey from Maritz Research, the most important information that is also the most influential in the buying decision tends to come from an individual that has a lot of knowledge on the product, such as a cars salesperson at the dealership. Considering the complex nature of this decision, reference groups play a large role. A reference group is ‘an actual or imaginary individual or group conceived of having significant relevance upon an individual or group’s aspirations …show more content…
When purchasing a car an individual can be influenced all three ways as they seek to make an informed decision, seek for approval and seek to conform to a significant group. There are also two types of social influences, normative and informative, that can affect a consumer’s purchase decision. A normative influence is the desire to conform to the expectations of another. An informative influence is to accept and trust information obtained as reality. (Bishop & Myers 1974). According to Lam & Meyers 1978, normative and informative influences are both relevant when purchasing a car as an individuals opinions can be influenced by group discussion. It is evident that normative social influences have a greater influence on groups as this is when an individual believes that conforming may have positive consequences and not conforming may have negative consequences. Whereas, informational social influences is often when we care about getting the right answer and trying to be rational. Both normative and informative influences affect the consumer purchase decision of purchasing a car. Purchasing a new car is considered a luxury purchase, making it a highly influenced decision by reference groups on the product choice and the brand selected. As purchasing a car is a high-involvement purchase, normative and informative influences
Group forces influence buying because there may be a complex set of smaller decisions made or influenced by several individuals. The degree of involvement of each member varies. Three questions are taken into consideration when a decision is being considered, which organizational members take part in the buying process, what is each member’s relative influence in the decision, and what criteria are important to each. All of the deciders from Gentech worked as a group on the purchasing decision each had an involvement and came to a decision as a group.
Such a bold position requires a new approach to marketing. The authors present a thesis of the Influence Mix, which introduces that there are three influences on consumer decision-making — the individual’s prior preferences, beliefs and experiences (P), other people and information services in the form of reviews and
For our initial strategy we wanted to choose a product line that would be most intriguing to customers in this poor economy. To initiate this we focused our products around better gas mileage, safety, and quality. In order to do this we needed to evaluate consumers’ needs and desires when making a high involvement purchase such as a car. We believe the best target market for this type of car would be a middle class family that does not have as much disposable income due to the recession in our economy.
Social Influence: Massine knew he was looking for a car in a certain price range with specific qualities. His roommate had just recently purchased a car, so Massine used her as part of his reference group. He also included his friend’s father who was savvy with vehicles to help him with his
For this discussion, I personally just wanted someone else point of view on a major purchase they have made so I asked my dad. He told me about his experience with buying the lately truck he owns. He stated that it was one of the best buying experience he has had. He gave me a detailed list of things that he did that definitely was helpful to him and can be to others. In a search for a truck that was a birthday gift to himself, he asked many questions. To his friends, he asked "What truck that thought was trendy and a great buy?" I have two uncles who are a car salesman and he asked them about their discount for family and friends. Once he had decided on a truck that he liked he went to a few dealerships based on the experience of family and
Reflecting on this week’s posts as I mentally reviewed my selections, I realized that with most items my purchases are based on need and practicality, trying to maximize the greatest and longest value possible. But this is not the case with cars. Kolter’s (2014, p.57) comments on emotional purchasing being not all cognitive and rational is very true in this case. It is the excitement, confidence and thrill of superior handling that I get from a well designed and fun
Shopping for the car is something everyone must learn because there are many factors that must be considered because beside purchasing a house purchasing a car is the second biggest purchase must people make and the purchase of the wrong car can affect you in so many ways.
The buyer decision process of a typical Porsche customer focuses on selecting cars that reflect their high social status, their financial power, and their preference for exclusive products. They are not interested in the utility or price of the cars in comparison with other customers that are interested in how much the car costs, its size, or its fuel economy performance. Porsche buyers also take into consideration the car's performance, but they focus on the sensations they have when driving such a car.
The last six variables are in the ‘subjective’ category. These different attitudes are directly related to different types of Chevrolet customers because cognition, feelings, and ‘response dispositions’ of customers are organized into a set of ‘patterned emotional reactions'. This may be due to differences described as demographic, geographic, psychographic, or lifestyle. Therefore, behavior moves from personal buyer to different buyers in a given society.Other luxury product like automobile marketers, manufacturers, companies, dealers also need to focus on ‘who buys’ or ‘type of customers’ to segment their cars. A discussion of the segmentation of the consumers and the luxury automobiles
There are various factors that plays role while buying cars that are the age of the customer, education level, geographical region of the customer, etc. As an example the people living in a mountain region will prefer high crash-safety rating car as compared to the people living in plain region.
• Purchase decision : The consumer purchase base on factors such as expected income, expected price, and expected product benefit. So the Porsche’s customer will be star to purchase without thinking because all of them are in the Porsche, because the car is the mirrors themselves-self and the benefit of Porsche is non-stop in the vehicle.
In a group, several individuals may interact to influence the purchase decision. The typical roles in such a group decision can be summarised as follows:
Purchaser choice making changes with the kind of purchasing choice. There are extraordinary contrasts between purchasing toothpaste, a tennis racket, a PC, and another auto. Perplexing and extravagant buys are prone to include more purchaser consideration and more members.
Before addressing the issue of understanding what is luxury automobile, it is a must to understand what is a luxury. Generally, consumers could provide the descriptions of what the luxury is and list what they consider to be luxury brands, such as Porsche, Gucci. However, the standard concept of luxury makes is hard to provide by scholars and practitioners (Doss et al., 2013; Roper et al., 2013; Schroeder et al., 2006, p.67). The reason of this phenomenon might be the criteria to judge luxury is different between people. In another word, luxury is relative. A luxury product for a person might just ordinary for another. Brun et al. (2013) argues that the definition of luxury contains several industries. The luxury industry contains a wide range of products including “watches, jewellery, cars, yachts, wines and spirits, clothing, leather goods, shoes,
This situation is reflected in the theory of reasoned action by Fishbein and Ajzen (1975). The theory highlights the importance of complying with social norms in determining the individual’s behavioural intentions. In fact in some occasions, the simple presence of others can influence behaviour. As Zajonc (1965) suggests, the mere presence of others may amplify the inner behavioural disposition of an individual, and use other people’s behaviour to justify and release their inhibition about buying.