An Analysis Of Consumer Behavior In The Motor Vehicle Industry: Insights On Toyota Brands

Challenges in the Motor Vehicle Industry for Determining Consumer Behavior

Discuss about the Analysis of Toyota Consumer Behavior.

The current marketer is presented with a specific challenge, which is circumventing the various conflicting messages over the saturation of the marketing initiatives, the hesitation of consumers and the consumer’s guarded behavior to achieve the much-needed objectives of enhancement of brand loyalty and improved product purchase. 

The motor vehicle industry has faced a lot of challenges in determining the consumer behavior. The main reason for this is because of the numerous factors involved in the decision for the purchase of a motor vehicle. Because of that, most players within the industry have developed various aimed at luring clients to their brands. These features include but not limited to the engine capacity, fuel consumption, speed, performance, and comfort and security devices. These features have also contributed immensely to the prices of various motor vehicle brands.

Toyota is mainly recognized for their excellence, quality and personalized customer support, hence their large global customer base. The study focuses on three Toyota brands options through a survey performed on three of potential customers to determine the consumer behavior within its client base.  The study tries to understand the main factors that influence some of the effective sections of the customer’s attitude. After which some strategy recommendations were made to the company.

The table below forms the basis for which the compensatory decision calculations for the three respondents are arrived at.

Respondent 1:  An adult, divorced teacher by profession, and holder of a degree level education with annual pretax income of $ 85,000. Her first choice of car is Toyota Yaris ZR, followed by Toyota Hilux SR 4×2 Hi-Rider Extra-Cab Pick-Up, Toyota Kluger AWD GXL, Toyota C-HR AWD and lastly, Toyota Camry Ascent Sport. Her purchasing behavior seems to be primarily informed by price. Her first choice is the cheapest within the category.  McKechnie, S. (1992). Determines that a consumer’ disposable income play a very key role in determining what a consumer buys at any particular point in time. This, however, depends on the income elasticity. Her second choice is much more expensive than the third choice; meaning that if her financial situation changes then her buying behavior would also change. The respondent’s buying behavior clearly shows that she has applied the compensatory decision rule in her purchasing choices. Perhaps that is the reason for Toyota’s strategy; manufacturing various brands for different pockets.

Factors involved in Purchasing Decision for a Motor Vehicle

Respondent 1 is more concerned with number of seats and smart start, yet chooses to purchase a Toyota Yaris instead of a Toyota Primus which has more seats that all the rest. It can be assumed that she made her choice is not her best option but informed by price factors.

Respondent 2. A female, aged 21, a nurse by profession and a holder of bachelor’s degree with a pretax income of $ 50,000 annually. She is single and does not make personal buying decisions. She is also very careful and efficient. Her first choice is Toyota Hilux SR 4×2 Hi-Rider Extra-Cab Pick-Up, followed by Toyota Kluger AWD GXL, Toyota C-HR AWD, Toyota Camry Ascent Sport, and lastly Toyota Prius vi-Tech.  Her decision seems to be guided by the vehicle’s performance. There is somehow a clear indication that her choice is still governed by her father’s influence. Most people at her age would opt for sports utility cars.

It is important to note that parent plays a pivotal role in their children’s buying behavior especially when they are stills single. Therefore organizations such as Toyota need to develop methods of acquiring the status of their clients in marketing and guiding them through buying decision, making processes (Moschis, G.P., 1985). The other important factor to consider in this case is the fact that she is cautious also forms a critical part of her decision-making process. Her first choice car has the highest engine capacity and double options.

Safety scores highest in this respondent’s choices, her choice of a Hilux is her best option, because of the safety features of the car.

Respondent 3: A 70-year-old male, retired, with no formal education, married with a pretax income of $ 46,000 per annum. He doesn’t make a personal buying decision; he relies on his wife for that. He is also careful and efficient. His first preference is Toyota Hilux SR 4×2 Hi-Rider Extra-Cab Pick-Up, followed by Toyota Kluger AWD GXL, Toyota C-HR AWD, and Toyota Camry Ascent Sport and lastly Toyota Prius vi-Tech. His preference is shared among the people of his age. Even though he is not a sole buying decision maker, his case is critical to the development of motor vehicle markets for people of his generation.  His particular and efficient character makes this his best option.

According to (Wood 2004), age is one of the most critical factors in consumer purchasing behavior. Those between the ages of 18-30 have completely different features to consider from those of 30-70 years. Therefore companies must put in place different elements for different age groups; a factor which Toyota has fully exploited in its product development and marketing approaches.

Survey Analysis of Toyota Brands and its Customers

Alternative energy options scores highest in this respondent’s responses yet he opts for a Toyota hilux which has only one energy option; diesel. It can therefore be concluded that other factors such as the number of seats and use informed his decision.

It is therefore recommended that when developing products within the automobile industry, age, income levels, marital status and level of education are crucial factors to consider. In all the three surveys the results have proved that these factors cannot be overlooked. The married, single and divorced have shown that the buying trend is affected by their marital status. The income levels are also very key because those with lower earning and more responsibilities are known to make a decision based on the needs and the sophistication of a product. 

Based on the survey, the first preference has pointed out to the decision based on the customer’s immediate circumstances. However, the consequent choices have also shown that all those surveyed have desires for other brands which may be out of their reach for various reasons. Therefore companies such as Toyota should develop payment options to cater for the needs of such customers. The last recommendation would be for such companies to establish measures of ensuring that their customer’s decision is personal and not influenced by family members; this can be done through robust marketing and sensitization programs (Khan, 2007).

Conclusion

The automobile industry has faced a lot of challenges in determining the consumer behavior. The main reason for this is because of the numerous factors involved in the decision for the purchase of a motor vehicle. Because of that, most players within the industry have developed various aimed at luring clients to their brands. These features include but not limited to the engine capacity, fuel consumption, speed, performance, and comfort and security devices. These features have also contributed immensely to the prices of various motor vehicle brands.

Toyota is known for excellence, quality, and personalized customer support, hence their large global customer base. The study focuses on three Toyota brands options through a survey performed on three of potential customers to determine the consumer behavior within its client base.  The study tries to understand the main factors that influence some of the effective sections of the customer’s attitude. After which some strategy recommendations were made to the company. 

References

Khan, M.A., 2007. Consumer behavior and advertising management. New Age International.

McKechnie, S. (1992). Consumer buying behavior in financial services: an overview. International Journal of Bank Marketing, 10(5), 5-39.

Moschis, G.P., 1985. The role of family communication in consumer socialization of children and adolescents. Journal of consumer research, 11(4), pp.898-913.

Solomon, M., Russell-Bennett, R. and Previte, J., 2012. Consumer behavior. Pearson Higher Education AU.

Wood, L., 2004. Dimensions of brand purchasing behavior: Consumers in the 18–24 age group. Journal of Consumer Behaviour, 4(1), pp.9-24.