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Managing Product Innovation in the Automotive Industry

   

Added on  2021-02-20

44 Pages11458 Words50 Views
Business and ManagementDissertation_Innovations inAutomotive Industry and its Influenceon Consumer Behaviour- SECONDPART

Table of Contents1.0 Introduction ...............................................................................................................................21.1 Identify a specific researchable topic area.............................................................................31.2 Establish the importance of the problem...............................................................................31.3 Aim of the research project....................................................................................................42.0 Research Objectives and Research Question ............................................................................43.0 Literature Review ......................................................................................................................54.0 Methodology ...........................................................................................................................104.1 Research Design, Research approach and Research Type...................................................104.2 Rationale..............................................................................................................................145.0 Access to Data and Research Ethics .......................................................................................146.0 Limitations ..............................................................................................................................14Findings/ Results............................................................................................................................15Evaluation or analysis of results....................................................................................................18CONCLUSION-............................................................................................................................32Recommendations-........................................................................................................................32REFERENCES..............................................................................................................................33Ethical form...................................................................................................................................38

Title: “ To Investigate to analyse the influence of innovation upon consumer behaviours: A case study on automotive industry”1.0 Introduction Innovation introduces as an effective process of translating an invention or idea into aproduct or service that create value or for which clients will pay. In simple word, innovation isthe development of a new service, product or process that gives values for customers and manyother stakeholders. Thus, it is essential process for each organisation to enhance theirproductivity and image in marketplace. For this project, Automotive industry is selected whichhave wide range of organisations and companies involved in the plan, development,manufacturing, selling and marketing of motor vehicles (Carraher, 2014). It is one of the largesteconomic industry by revenue in all over the world. They does not include sectors dedicated tothe repair of automobiles following delivering to the last consumers, such as motor fuel fillingstations and automobile maintenance shops. Land Rover is chosen automotive company whichmainly specialise in selling of luxury car brand in four-wheel-drive vehicles. It was introduced in1948 by Jaguar Land Rover. There are mainly four trends driving automotive industry innovationsuch as: internet of thinks sparks innovation, cloud technology speed growth, advanced analyticswill inform products and artificial intelligence shifts to a higher gear. All these are maininnovation in automotive industry that highly influence on consumer behaviour. Thus,innovation is a marketing strategy used by company to change consumer behaviour towardsproducts and services. It will help an enterprise to retain long term and strong position inmarketplace. Innovation is the modern method which is used by the company to maximize the profitand it is the collection of new ideas and thoughts to meet the requirement and articulated needs.In the same way, recently the large company uses best innovative things in order to attract widerange of customers. Even it is also realized that this method helps to raise the productivity levelof the firm and maximize the financial performance as well. Among all, digitalization is themajor trend of the industry that completely change the structure. In the continuation, The chosensector for this report is automotive industry which is consider one of the largest economicrevenue in the terms of revenue. Innovation in automotive sector will help to run the businesssmoothly and meet the requirement of the firm as well. The chosen firm for this this report is2

Land Rover which is the luxury car brand and it is specializes in four wheel drive vehicles that isowned by Jaguar Land Rover.Therefore, through this report, researcher provide a clear understanding of innovation forautomotive industry and it also describe the importance such that it helps to reduce the costwhich helps to raise the financial performance of the firm. In this modern era, the demand ofcustomers is increases specially in comfort zone like they demand those vehicles which are goodin quality, reliability and safety, that is why, worldwide overcapacity also put the pressure on theindustry in order to maintain, reduce the vehicle price. Thus, large company also introduce thesame new products in order to meet the demand of their customers. As automotive industry ishighly influence on consumer behaviour and they want to introduce new innovation into thework place to complete the work in defined work. Thus, present research report uses researchmethodology in order to specify the methods that support researcher to attain the aim andobjectives in better manner. Apart from this, research also present primary as well as secondarydata collection to accomplish the aim.1.1 Identify a specific researchable topic areaIn order to identify impact of innovation on consumer's behaviour, an organisation canconduct a research which will help it by increasing customer base and retaining strong positionin market. In automotive industry, innovation play as a role of marketing which will also assistthem in attracting large number of customer and also enhancing market share of business(Claudy, Garcia and O’Driscoll, 2015). Therefore, main reason behind doing this research ortopic is to change customer's behaviour, perception and habit towards products and services.This topic helps an investigator in personal as well as professional manner. In personal way, withthe help of this study, they can easily enhance its literature review, data analysis and datainterpretation skills. It will also help them in improving professional development and growth.Thus, innovation is important for company as well as people to increase their productivity andperformance within automotive sector. In automotive industry, innovation is important but sometime it create difficulties for company such as require maximum cost for hiring knowledgepeople, cost for training etc. 1.2 Establish the importance of the problemInnovation is important and essential for an organisation because with the help of thisthey can easily attract large number of customer and retain strong position in market. In3

automotive industry, innovation play effective role as a marketing which will help them inintroducing their new products and customers in market (De Medeiros, Ribeiro and Cortimiglia,2014). Along with this, there are different number of marketing tactics or strategies thatmarketers can influence consumer behaviour and maximise their probability of purchase. Thesefeatures or dimensions that the companies acquire from the innovation strategy are the mostessential once for the favourable impacts on consumer behaviour and for economic growth oforganisation. 1.3 Aim of the research projectThe aim of research process is to produce unique knowledge and deepen understandingof a issue or topic (Eastman and et. al., 2014). Along with this, entire activities of study is mainlydepend on research aim. Main aim of this research is:“To analyse the influences of innovations on consumer behaviour. A study onautomotive industry. 2.0 Research Objectives and Research Question Research Objectives: Research objective is main and essential part of study which is based on two variablessuch as dependent and independent (Evanschitzky and et. al., 2015). According to the topic,customer's behaviour is independent variable which is dependent on innovation withinautomotive industry. Thus, as per this, some important and valuable research objectives areframe which are determine as under: To understand the basic concept of innovation in automotive industry. To identify the importance of innovation in Automotive industry. To analyse the impact of innovation on consumer behaviour within automotive industry.Research Questions: A research question is the fundamental core of a research study, review of literature orstudy. It mainly focuses the field of study, determines the research methodology and lead entirephases of inquiry, evaluation and reporting (Erevelles, Fukawa and Swayne, 2016). Therefore,research question is important part for completion of research activities in systematic andeffective manner. Some important and valuable research questions are described as below: What is the basic concept of innovation? What is the importance of innovation in Automotive industry? 4

What is the impact of innovation on consumer behaviour within automotive industry? 3.0 Literature Review A literature review is the effective and essential evaluation of chosen document on aresearch topic. It is a systematic, reproducible and explicit method for exploring, analysing andsynthesizing the present body of accomplished and recorded work produced by practitioners,scholars and investigators (Ferreira, da Rocha and da Silva, 2014). Main purpose or aim ofliterature review is to identify inconstancies i.e. conflict in previous studies and gapes inresearch. Thus, it is important part of research which will help a researcher to address allresearch question in well-defined manner. Concept of innovation in Automotive industryAccording to the Stefan Lindegaard, (2019), the term innovation refers to the activitiesand task which are performed in a new way is known as Innovation. Thus, innovation arises fromcreativity or think out of the box to create any change or enhancement in the old mechanism. Atthat stage of environment where globalization is increasing and technology is getting advancemore and more as a result disruption in the economy occurs like increasing of competition,demands of customers changing etc. So, it is necessary to adapt innovation for betteropportunities, economic growth, survival and for the success of the company. In the samemanner, the automotive industry has huge amount of innovation in its production and this afundamental approach for an automotive industry to get success in this competitive environmentbecause the industry is facing technological as well as social changes so, having an accurateimage of state of innovation this industry assess and introduce new innovation for productstrategy and long-term business growth. According to the Eastman and et. al., (2014), innovation take place in the automotiveindustry by the perspective of new market and opportunities which provide valuable benefits tothe customers. The term innovation more includes in the automotive industry when digitalizationpositioned itself globally which enhances the knowledge, information and attitude level of anindividual. The innovation in automotive industry will result in transformation of economy,creation of employment, change in the supply chain management of the industry, Revenuegeneration to the industry, creation of strong research and development departments of theindustry. 5

As per the view of Dogan (2019) innovation is the process or an application of bettersolution in order to meet the new requirement. Using innovation, the business grows and alsoimprove their current process and increases its efficiency in order to improve the profitability. Inthe context of automotive industry, which is also undergoes the massive technological and socialchange. The author also states that majorly the automotive industry take three general approachesthat is bring new and advance technology into auto mobile, enhancing the manufacturing andsupply chain using different ideas and adopting new business model proactively. Thisinnovation also helps a business to raise their current performance and introduce new productinto market. On the other side, it is states by Potter and Graham (2019) that in this modern era,every company wants to establish its unit at global level by coping up with advance technology.Even when the innovation in automotive industry will provide different benefits in the term ofmonetary or non- monetary form. In this modern era, every large firm wants to introduce new innovation in their businessso that it will help them to raise their business efficiency and also increases sales as well. Thus,inautomotive industry, the innovation does not mean to creates any change or enhancement in oldmechanism but automotive manufacturers show their interest with regard to adopting new andadvance technology into the workplace. As per the view of Iskandar and Ariffin (2019)automotive industry is quite busy to innovate those vehicles which are sophisticated and onboardtechnology that is increasingly turning them into computer on the wheels. Thus, it helps toenhance the company efficiency and now a days different electric cars are also launches thatsaves fuels and utilizes electricity. This is the live example of innovation by an automotiveindustry.Impact of innovation on consumer behaviour within automotive industry.According to the Simantel, (2016), in the automotive industry, innovation has beengrown on larger basis along with raising its benefits for longer during or period time. Innovationsuch as usage of advance or artificial technology in car-based structure which involves advanceseats, has led customer response in most attractive and also resulted in time and cost saving forlonger duration. Innovation has change customer perception or attitude on larger basis and led aninitiative to save their high prices or money. Impact is overall positive or responsive toincreasing demand of Automotive sector and also brought positive delivery to customer needs orwants in pin-point of their price or money which they would be liable to pay for automotive6

products. According to the Erevelles, Fukawa and Swayne, (2016), from the last past time,innovation play effective role in automotive by increasing its market share and performance.Also, this has been continuing on time to time basis and attracts maximum customer to fulfiltheir need or wants from automotive industry. Basically, in car, innovation has raised at thelonger duration and it has pin point a customer actual desires to fulfil them in given point oftime. It was noticed that automotive industry has been transformed on growth-based scenarioalong with reaching to customer priority in given point of time to increase sales in the higherratio. According to the Ferreira, da Rocha and da Silva, (2014), In response, customer point ofview has been changed and its forces to generate sales for an automotive industry has also grownover time and business durability for automotive business. There are researches done in past,whose motive is of to find what makes point of innovation generally impacts customer behaviourwho are looking to buy automotive sector. In a reality, customer perception has become positivefor automotive sector with increase customer durability for customer perception or long-lastingsales. As per the view of Borgstedt, Neyer and Schewe, (2017) innovation plays an importantrole in order to raise the financial benefit of the firm. Such that recently the company adopted theartificial intelligence as a innovation in car that includes advance seats and this lead to attractwide range of customers. As a result, it also help to save time as well as cost of the long time.Therefore this shows that innovation also change the consumer perception as well as attitude, buton the other side, it raise the cost of the products. The overall impact of the innovation onconsumer behaviour is positive because in this modern era, to attract customer, there is a need tointroduce new and innovative products into the workplace. Even the industry also introduceonline application in order to meet the requirement of the customer so that they can buy theautomotive product anywhere without losing time. On the other side, Bogers, Chesbrough andMoedas (2018) critic that, from last many years, innovation only helps to raise the market shareand increases the financial performance but as the time passes, the industry uses innovation intoits daily life with different purpose. Apart from this, it is also realized that to attract wide rangeof customers, there is a need to introduce new and innovative products.7

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