Analysing The Impact Of Consumer Behaviour On Mercedes Benz Products And Services

1. Motivation

Consumer behaviour consist the study of how the individual or group of individuals take decisions regarding purchase of goods and services in order to satisfy their needs Huber, (Herrmann & Braunstein, 2015). It also considers various socio-economic impacts that affect the decision making of consumers. Study of consumer behaviour considers all pre as well as post purchase aspects. There are various behavioral factors that lead in influencing the decision of client (Belk, 2014). Those are loyalty, usage rate, brand promotion etc. In this report will discuss about the consumer behaviour and how it affects the products and services of the Mercedes Benz. The respective organisation deals under the automotive industry and provides its services to worldwide. It was founded in 1926 and headquarter is located in Germany. Automobiles, Buses, trucks, luxury vehicles, internal combustion engines are its some of products and automobile repair are its services. Mercedes Benz has two divisions that are Mercedes-AMG, Mercedes-Maybech (About Mercedes- Benz, 2017).  Further the report will determine motivation, personality as well as consumer perceptions in regard of the respective automobile firm. Later will also analysis on how these factors influences the client’s decisions. At last the report will include various recommendations in order to prevent effect occur from those influences. More specifically report will include various motivational theories and consumer perception in relation to the luxury car products provided by the Mercedes -Benz.

While studying the consumer behavior the marketers are required to go through various motives that lead to affect its targeted markets. These further assist the marketers in analyzing various insights to generate different strategies in regard of its ranges of products and services (Baltas & Saridakis, 2013). In simple words it can be said that motivation is a response behind the consumer behaviour which helps in generating inner force of clients until and unless it is satisfied. Motive consist 3 elements that are generating the behaviour, second direction of the behaviour and third is its persistence until it has been achieved that satisfactory level. However, marketers are unable to see and that is the reason its existence is always inferred from the consumer behaviors.  

There are various motivational theories that help marketers in analyzing the demands and needs of the consumers.

1. First theory is of Maslow’s hierarchy of needs- Under this Maslow has categorized needs into 5 parts that are self-actualization, esteem, belongingness, safety as well as physiological. In this Maslow had stated that needs on basis of priority to be fulfilled one by one. That is, firstly physiological needs such as food shelter etc. are to be fulfilled after that safety in terms of physical, stability as well as family (Carlson & et.al., 2013). Thirdly, Maslow talks about the belongingness which includes love, affection, attention, appreciation etc. are to be fulfilled. Second last he has mentioned esteem that is self-respect prestige status etc. and at last self-actualization which consist the aspiration for self-fulfillment.
2. Second theory is of Alderfer’s ERG theory is again has been categorized into 3 parts which include growth needs, relatedness needs as well as existence needs. Growth needs leads towards the development of competencies and realizing the potentials. Second need of relatedness considers satisfactory relations and last but not the least existence needs includes physical well-being (De Campos Maciel & et.al., 2017). The theory is very much similar with the Maslow only the difference is it collapse in three tires and is bit more rational in nature.
3. Third motivational theory is of cognitive evaluation that states two different motivation systems of intrinsic as well as extrinsic. Where intrinsic motivators are what arrives out of actual performance of the task whereas, extrinsic includes feedbacks, promotion, pay, working environment etc (Dewenter & Heimeshoff, 2014).
4. Herzberg’s two factor theory which considers hygiene and motivators factors. Hygiene factors are not present in the motivators and its absence does not affect but are required to be considered in regard of maintaining the satisfaction level of consumers. Second factors are of motivators that lead to motivate consumers (Grenemark & Müller, 2016).
5. Another motivational theory is vrooms expectancy theory. This theory combines various aspects of other theories discussed above. It states a formula of M= E*I*V. where M stands for motivation, I for instrumentality and v for valence. Motivation describes the amount an individual will get motivation in a particular situation (Hoyer, MacInnis & Pieters, 2016). Expectancy leads towards the perception of an individual. Instrumentality helps in determining that the performance will be punished or rewarded (Dütschke & et.al., 2014). At last the valance helps in perceiving the strength of the reward or punishment derived out of the performance.

There are various factors those results in influencing the decision making process of the consumers:

1. Social factors- According to Green (2015), social factors plays a significant role in influencing consumer decision as every person have someone around him/her who influences in decision making. Social factors comprise family, reference groups, status, etc. Further the groups can be classified in to two is reference and another is membership group where an individual belongs to a group (Green, 2015). Whereas the reference group influences the self-image of consumers and their behaviour, status etc.  Every individual decision is affected by the people souring him/her they can be family members, friends, colleagues etc.
2. Personal factors- There are various factors such as age, life cycle, status, job, economic stability, personality etc. which influences the decision making of the individual. The influences occur due to brand personality in the minds of the consumers or various groups discussed above (Grenemark & Müller, 2016). Brad personality includes or can be characterize into various sections. Such as sincerity (honesty to clients), Excitement (up to date, daringness), Competence (reliable, successful), sophistication as well as ruggedness.
3. Psychological factors- As discussed earlier in Maslow’s theory, these factors leads towards influencing motivation, perception, attitude, believes of the consumer. It states that people have both biological as well as psychological need that is to be satisfied in order to improve motivation level (Hoyer, MacInnis & Pieters, 2016). Considering this Maslow had identified different needs at different levels as mentioned above.

Mercedeze-benz (MB) had always aimed to determine various influential factors that affects the purchasing behaviour of its target market and accordingly and emerged with new and innovative marketing strategies. Projective as well as netnography techniques used in motivation research by the marketers of MB in order to determine the purchase motives of its clients or targeted markets (Guérard, Bode & Gustafsson, 2013). In order to measure the various influential factors like attitude, believes, status etc. of the consumers the MB has conducted with projective techniques. In this marketers come across that there are two kinds of motives first one is manifest and the other one is latent. In manifest the consumer’s feels free to admit while in latent they reluctant to admit.

1.1 Theories of motivation

Mercedes Benz came across various manifest motives that drive its customers to buy its luxury cars. Is its high status value and good service after sales. The brand is well known for its class and high class status symbol and also it has maintained trustworthy relations with its existing clients. Luxury cars of Mercedes helps in generating reputation among the society and the customers feels valuable and respectful after he make purchase of particular car model (Huber, Herrmann & Braunstein, 2015). Also the brand is popular among the celebrities which again pull out the willingness of the customers to buy it. The target market of respective automobile company is celebrities, high income people who can afford the cost of these cars. So if the company has to consider Maslow theory than motives leads to self-actualization, esteem as well as belongingness of individual. When the friend, colleague or any other related person to individual is having a Mercedeze-benz car then it leads the motive or belonging level of individual to purchase the same or higher level car than that of its related one to create self-esteem and respect among its social group (Jayaram & Avittathur, 2015).

After going through various motive and its influences on consumer behaviour now the marketers of organisation are required to create marketing strategies. As per Jaffe & Nebenzahl, (2013) the Mercedes Benz after carrying on motivation research had come across the target marker and major consumers having manifest motives (Jaffe & Nebenzahl, 2013). Once the decisions is made regarding target market the another step is to generate proper marketing strategies including communication etc. in order to attract more and more number of consumers from  target markets. However according to Jayaram & Avittathur, (2015) the reputation of firm is already high and people have respectful image of the brand in their eyes. So in case attracting more number or adding more consumers in not difficult. It’s just that the company gas to think about more comfort level of the clients and to improve their satisfaction level from products as well as after sales services (Jayaram & Avittathur, 2015).

It has been emphasized that for manifest motives direct appeals proves more effective as they are open and willing to have face to face conversation in regard of their motives requirements. Whereas carrying appeal with the latent one is way difficult as they do not find comfortable to discuss about their motives and demands from the organisation. Accordingly the Mercedes Benz is required to prepare a communication strategy that goes with both latent as well as manifest motive customers (Kate & Handa, 2014). As the Mercedes-Benz is already a well-recognized brand so is not required to carry advertisement on a large scale. It can do advertisement regarding its new luxury car and about its features by casting a popular celebrity as a brand ambassador. Along with a message high class status etc. to attract the targets consumer market. Furthermore, the message should directly appeal to latent motives such as prestige, self-respect and superiority etc.

1.2 Factors influencing consumer decision making process

There is various personality theories that the marketers are require to consider while making the marketing strategies for the organisation.

1. Trait theory- this helps the marketer to understand various traits that make a personality of an individual and how it influences the consumer behaviour. According to Carl Jung traits can be further classified into two that is extrovert and introvert. Introvert personality is of a shy, person with self-confidence and with the focused inward attention (Winter & Heil, 2016). Extrovert is a bold and outgoing personality and is directed outward. However, Hans Eysenck has determined three fundamental factors of personality including introvert and extrovert. Also has extended the dimensions to emotional stable versus unstable and impulse control to psychotic. Raymong Cattell has also come out with big five factors such as openness, conscientiousness, agreeable, extraversion, neuroticism.
2. Psychodynamic theories- It involves of consciousness which is further divide into parts of unconscious, pre-conscious as well as conscious. According to Freud personality consist of various elements such as ego, Superego (Vishnu & et.al., 2016).
3. Humanistic-Under this focus is on the individual experiences, problem, ideas, views, potential etc. Also considers traits, human behaviour and qualities as well as its ability of making choices. Maslow’s hierarchy theory described above is the best way to understand the humanistic theory (Tilly, 2017).
4. Social-cognitive- According to Bandura’s it include self-system that is a set of cognitive processes in which individual leads to observe, regulate and evaluate its own behaviour. Also self-efficacy where individual judge effectiveness while dealing with a situation. However, Julian Rotter had made understood the theory from the locust of control. It can be external or internal (Steenkamp, 2017).
5. Behavioral personality theory-following theory states the interrelationship in between the environment and the individual. It assists the marketers in studying the theories related to measurable and observable behaviour (Rezvani, Jansson & Bodin, 2015).

Personality of individual plays an important role in influencing the decision making of the consumer. Such as perception of consumer in regard to the brand image of company is very important. Once the image is good the consumer will not switch to another but in case if the image is wrong then it takes a while to take decision by the costumer (Peters, 2014). Motivation is another factor that might affect the decisions. Factors can be internal as well as external, internal factors include personality, attitude, beliefs, feelings etc. and external factors include sub culture, locality, social class etc. learning is another factor that leads to affect the buying decision. In this customers enquire about the product details for new and existing products, goes through reviews to analyze the company’s image in the market (Peter & et.al., 2015). Is it trustworthy or not, further to process with the company or to switch to another options available in the markets. Next psychological variable is attitude of individual which plays a vital role in his/her decision making. Attitude of an individual towards the organisation can be either negative or positive depending on the products, features, events etc. According to Carl Jung, attitude is a readiness of the individual to react in a particular way. It is difficult to analyze as it is hypothetical in nature and is difficult to observe directly (McDermott, 2014). It can be examined by the marketers through facial expressions, body language etc. of an individual. Taking the case of Mercedes Benz lifestyle is an important feature as here people who want a high class lifestyle only goes for the luxury cars made by the company. And the major target of the company is high class people only. So it plays an important role in the marketing strategies as well as advertising the products. But it can also lead to influences the decision making of the consumer (McCulloch & et.al., 2013). As in this the buyer is concerned of its status more than of the comfort zone and other things. Here he/she is going to make purchase of MB cars to keep their status high or above their relative, friends and family or other social group.

Along with motivational research the marketers of Mercedes Benz are also required to conduct a personality research in order to analyze its consumer buying behaviour. In the research it has been various personality traits of consumers have been identified. Those were introvert, extrovert etc (Loisel, Pasaoglu & Thiel, 2014). As per Carl Jung extroversion, openness as well as conscientiousness.  In research the marketers have analyzed that these trait people are more source-full and consist all related information of the product before making a purchase. They consider information from various sources and also in share their experiences with their through internet or other ways (Kate & Handa, 2014). Another trait is openness which determines person as an imaginative, active, independent and sensitive as per the Raymong Cattell. These kinds of individual have been characterized into broad information seeking incidental information acquisition as well as critical information judgment (Jayaram & Avittathur, 2015). As per the recent carried studies it has been analyzed that customer with openness trait motivates themselves to make search about the products by using various approaches and external sources. These trait are somewhere related or similar withy the extrovert as it also leads towards emphasizing on external sources to carry research for product’s information (Jaffe & Nebenzahl, 2013). Customers with consciousness trait are generally involved with the internal search through various sources based on past and personal experiences to collect information in respect of the firm as well as its products. In case of Mercedes Benz marketers have to careful of sources like existing customers and their experiences with the organisation etc (Huber, Herrmann & Braunstein, 2015).

1.3 Application

These days it can be recognized that the marketers are using social media on a lrge scale for marketing their products and services in target market. As per Carlson & et.al. (2013) it has been analyzed that personality trait also affects the people with the use of social media. Carl Jung has mentioned in his research that the individual having extrovert personality traits are generally associated with Facebook (Jayaram & Avittathur, 2015). Further in the research it has been analyzed that social networking plays an important role in attracting customers by matching their personality traits. So, use of social media is recommended to Mercedes-Benz from promoting its luxury cars. It can create fan page on various social websites such as twitter, Facebook that are more reachable to the customers (Guérard, Bode & Gustafsson, 2013). It not only helps the clients to gather information regarding cars but also helps in exchanging the opinions as well as make comparison with other available options. Social media made it more convenient and time saving. As it has been recognized that individual personality trait influences on its purchase decision which might include factors relating to the packaging, advertising etc (Vishnu & et.al., 2016). The marketers of Mercedes Benz can go for high scale marketing along with the social media advertising. They can appoint a famous celebrity of the target market to build a brand image in the eyes of customers. This will helps in attracting more number of consumers towards the luxury cars of the respective automobile company (Carlson & et.al., 2013). As the organisation is already a well-known brand and has a reputed image in eyes of customers so here the company is only required to create a advertising regarding new product and its features with a symbol related to status.

Conclusion

Maslow’s hierarchy, Alderfer’s ERG, cognitive evaluation, Herzberg’s 2 factors and also the Vrooms expectancy are some of the motivational theories that has been determined and discussed in the report. Afterwards also mention various factors that influence the consumer decision making process. Which were social, personal, and psychological. After analyzing motivational theories also had gone through different personality theories including personality trait, humanistic, psychodynamic, social cognitive and attitude and lifestyle, motivation etc. are some factors that influences the personality on consumer decision making.

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Online

About Mercedes- Benz. 2017. [Online] Available Through <https://www.mercedes-benz.com/en/ > [Assessed on 17^th May].