Understanding Consumer Behaviour

This report aims to understand consumer behaviour and its impact on the market. It includes a critical analysis of Toyota Corolla Car's consumer behaviour and provides strategic recommendations to improve services. The report also discusses the factors affecting consumer behaviour and offers insights into marketing mix and strategic tools.

Consumer Behavior

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Executive Summary
The main aim of this report is to understand the concept of consumer behaviour. Consumer
behaviour is the essential element in the market that encourages the companies to improve the
quality of product. In this report, Toyota Corolla Car has been taken into consideration to
understand the concept of consumer behaviour. The critical analysis has been done on the
consumer behaviour of Toyota Corolla Car as per the survey result of assessment 1. It is
recommended that the company has to implement the marketing mix and strategic tool to
improve the services. It is concluded that the organisation can make the new records in best-
selling by improving its services.

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Contents
Introduction................................................................................................................................3
Overview of Toyota Corolla Cars..............................................................................................3
Critical Analysis.........................................................................................................................4
Strategic Recommendations.......................................................................................................7
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
Consumer Behaviour is the study of an individual customer, groups, or organisations in terms
of selection, buying of goods. It helps to evaluate the stage of an individual where their get
the higher level of satisfaction. In this report, the discussion is made on the concept of
consumer behaviour. This report is the continuation of assessment 1 in which the information
is gathered about the consumers buying behaviour towards the Toyota Corolla Cars. In this
report, the critical analysis will be done on the concept of consumer behaviour. At the end of
this report, the strategies will be recommended in order to improve the services to satisfy
needs and wants of consumers.
Overview of Toyota Corolla Cars
Toyota Corolla is the line of subcompact and compact cars which is manufactured by Toyota.
The car was introduced in the year 1966 by the name of Toyota Corolla Car. It made the
records in best-selling car in the world by 1974 and has been one of the best experiencing and
selling cars in the world since then. Around 40 million Corollas sold by the company in the
world by 2013. Corolla was considered as the exclusive car in Japan. The models of car have
been manufactured with the improvement in order to satisfy the wants and desire consumers.
Early models were mostly rear-wheel drive while the next model has been front wheel drive.
About the features, the Toyota Corolla has 1 Petrol Engine with the 1794 cc. The petrol
engine of the car is available with the transmission. Corolla has the mileage of 11.3 to 13.4
kmpl which is total relies on the type of fuel. The car has 9.8 Kmpl city mileages with the
power 125 @6000 (PS@rpm) that is attractive part for the consumers. There are 5 numbers
of seats in the car which is major factor that the consumer evaluates in the first preference.
The length of car is 4530 mm, width of 1705 mm and the last wheelbase of 2600 mm. The

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car also has the other features which attract the consumers such as power windows front,
power steering, anti-lock braking system, power adjustable exterior rear view mirror, wheel
covers, air conditioner and driver airbag (Normreeves Toyota san diego, 2018).
Critical Analysis
Consumer Behaviour is the study of an individual in terms of consumer purchasing
behaviour. As per the role theory, it states that the consumer plays the various roles in the
marketplace. The consumer decision is matter in the whole process from awareness about the
product to paying for purchasing the product. The role of consumer behaviour is varies on the
nature of an individual. The whole buying process is depends on the consumer decision
towards the product. Consumer buying decision is the essential component for the companies
as the sale of organisation is depend on the consumer. Different authors give the different
definition as per their point of view. According to De Mooij (2019), consumer behaviour
defines the physiological process that lead to a consumer’s decision to buy a product or
services offering. It refers that the consumer decision can be fluctuated as it is a
psychological process. The consumers demand will fluctuate towards the product as they are
attracted towards the product with the help of different techniques and strategies which is
used by the companies to influences the consumers. Attractive packaging, promotion of
product, large number of feature is the techniques that are used by the companies to attract
the consumers towards the product. It means that the decision taken by the consumers can
easily change and fluctuated as consumers influence towards the product. The attitude of
consumers of Toyota Corolla Car is positive as they are highly attracted towards its design
and features. As per the survey, the 64.29% of people are satisfied with the design of Car.
According to Zhang, and Benyoucef, (2016), Consumer behaviour is the branch which deals
with the various stages from which the consumer goes through before purchasing the product

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or services. As per author, the consumer takes the decision on the basis of three areas such as
need, social status, and gifting purpose. It is observed that the consumer decision is the
process that is fluctuated with the strategies and techniques of companies. The companies
provide the discount to consumers on product and also offer the free facilities in order to
attract them that influence the decision of consumers. The consumer always checks the
product before purchasing it from quality to facilities with the product. There are many things
that the consumer analysed before purchasing the product. The organisation has to analyse
the things and put small effort to gain the success (Hofacker, Malthouse, and Sultan, 2016).
The company analysed the social, economic, and environmental factor while launching the
Toyota Corolla Car in the market.
Theories of consumer behaviour
There are many theories that state the behaviour of consumer to purchase the products and
services such as Motivation-need theory, and Engel, Kollet, Blackwell (EKB) Model.
Motivational-need theory defines the five components in which the consumers demand and
wants is satisfied and these are love, safety, esteem, self-actualisation and physiological
(McConnell, and Rydell, 2019). The company has to use this theory in order to influence the
decision of consumer towards the goods and services. As per the assessment 1 survey, it has
been evaluated that the demand of consumer of Toyota is constant as the quality and features
of Car is excellent that attract them. By gathering the data, it is observed that 35.71% of
people prefer to purchase the car just because of its high quality and features.
Engel, Kollet, Blackwell (EKB) Model defines the five step process that the consumer use
when they take any decision to purchase the product. The first process is to analyse the
review from marketing material such as television, newspapers or online. After gathering the
information and analysing the data, the consumer moves into the comparison from the past

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experiences of the product. After that the consumer evaluates the internal and external
environment that affects the demand of product. The consumer purchases the product in the
fifth step when he is fully satisfied with the needs and wants. As per the survey, it is
evaluated that the majority of people are satisfied with the services of the company. The
survey depicts that 50% of people are satisfied with the services provided by the company
and 35.71% of people are highly satisfied with the features of car. As the consumers are
highly satisfied with the car services then it can be said that the Toyota take care about the
desire and wants of consumers. It manufactures the car as per the requirement of consumers
related to car that is why; it made the new record in best-selling the product. Toyota Corolla
Car is considered as the best-selling product in the market. The marketing review of the
consumers are also good due to which the new consumers can easily attracted towards it as
they check the online instrument while purchasing the product (Festa, Cuomo, Metallo, and
Festa, 2016). The company fulfil the demand of consumers as per the theory.
Factor affecting consumer behaviour
Culture Factors
It has been evaluated that the consumer behaviour is vary due to different culture. Religion,
racial groups, and geographical regions are the culture factor that affects the consumer
behaviour in taking the decision. The people have different taste, and fashion as per their
culture due to which their decisions are also affected. Toyota Corolla Car consumers demand
is fluctuated due to design as the people choices are different in selecting designs (Article
Library, 2018).
Social Factors

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Social factors defines that the consumer behaviour is fluctuated with the trends and fashion.
Nowadays, people follow the trends and fashion as they wants to update them. It has been
seen that the changing trend also change the decision of consumer towards the product. As
per the analysis of survey, it is observed that the people have different perception towards the
Toyota Corolla Car while purchasing it. Some of the consumers are highly satisfied with its
design but some of them are only satisfied and rest of them are not satisfied with the design
of car. But most of the people are satisfied with the Toyota Corolla Car as it provides the
brilliant services to consumer with their requirement and highly designs (Morris, Baldeon,
and Scheuneman, 2015).
Personal Factors
The personal factors also affect the behaviour of consumer towards the Toyota Corolla Car
such as age, occupations, economic circumstances, life style, personality, and self-concept. It
has been evaluated that the old age of people does not attracted towards the Toyota Corolla
Car as they are not too much interested. The income and economic circumstances of
consumers can also affect the Toyota Corolla Car as it is an expensive car. In Japan, Toyota
Corolla Car is considered as the most expensive car that is why; it can be said that the
personal factors affects the demand of consumer (Haugtvedt, Herr, and Kardes, 2018).
Recommendations
Marketing Mix
As per the analysis, it has been founded that the consumer contain the information through
various tool such as newspaper, television, and online. The consumer gathered information
through reviews with the help of online tool such as social media (Stephen, 2016). It has been
also analysed that the consumer’s decision is fluctuated with the different culture and region.

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It is required for the organisation to take care about the demand of consumers as per the
culture and religion. That is why; it has been recommended that the organisation has to
implement the process of marketing mix at the workplace in order to aware the consumers
towards the product or to improve the services (Qehaja, Kutllovci, and Pula, 2017) Strategic.
Marketing Mix process contain the four elements such as product, place, price and
promotion. These four elements help the organisation to improve the selling process of
Toyota Corolla Car and also help to improve the quality of product (Datta, Ailawadi, and van
Heerde, 2017).
Strategic Tools
As per the analysis, it has been founded that the consumers demand is fluctuated with the
external factors such as social, economic, technological and many others. It is a major part for
the company to analyse the external factors that can affects the demand of consumers so that
they can easily attracted towards the Toyota Corolla Car. Before manufacturing the Toyota
Corolla Car, it is essential for the organisation to analyse the external factors in order to
overcome the issues that can affect the demand of consumer (Boush, Friestad, and Wright,
2015).
It is essential for the organisation to analyse the business environment such as internal and
external. It is recommended that the organisation has to analyse the environment with the
help of strategic tools such as PESTLE Analysis, SWOT Analysis, Porter’s Five Forces
Framework, and many others. These strategic tools also help the organisation to gain the
competitive advantage in the industry.
Research and development

CONSUMER BEHAVIOUR 9
It is recommended that the company has to invest in the research and development
department in order to analyse the needs and demands of consumer towards the product. It is
essential to identify the external and internal factor that affects the consumer behaviour
towards the product. By analysing the market and consumer demands, the company can attain
the high success in the market by attracting the large number of consumers towards it.
Conclusion
From the above analysis, it has been concluded that the Toyota Corolla Car attain the success
in the near future. It has been founded that the consumer behaviour is fluctuated to external
and internal factors. Consumer is the essential part for the organisation that is why; it is
recommended that the organisation has to implement the marketing mix and analyse the
environment with the strategic tools.

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References
Article Library. (2018)Factors Affecting Consumer Behaviour (With Diagram). [online]
Available from: http://www.yourarticlelibrary.com/marketing/consumer-behavior/factors-
affecting-consumer-behaviour-with-diagram/48599 [Accessed 21/6/19].
Boush, D.M., Friestad, M. and Wright, P. (2015) Deception in the marketplace: The
psychology of deceptive persuasion and consumer self-protection. Routledge.
Datta, H., Ailawadi, K.L. and van Heerde, H.J. (2017) How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing, 81(3), pp.1-20.
De Mooij, M. (2019) Consumer behavior and culture: Consequences for global marketing
and advertising. SAGE Publications Limited.
Festa, G., Cuomo, M.T., Metallo, G. and Festa, A. (2016) The (r) evolution of wine
marketing mix: From the 4Ps to the 4Es. Journal of Business Research, 69(5), pp.1550-1555.
Haugtvedt, C. P., Herr, P. M., & Kardes, F. R. (2018) Handbook of consumer psychology.
Routledge.
Hofacker, C.F., Malthouse, E.C. and Sultan, F. (2016) Big data and consumer behavior:
Imminent opportunities. Journal of Consumer Marketing, 33(2), pp.89-97.
McConnell, A.R. and Rydell, R.J. (2019) Implications for Understanding Consumer
Behavior. Handbook of Research Methods in Consumer Psychology, p.143.
Morris, M.L., Baldeon, M. and Scheuneman, D. (2015) Developing and sustaining an
inclusive dance program: Strategic tools and methods. Journal of Dance Education, 15(3),
pp.122-129.
Murphy, M.C. and Dweck, C.S. (2016) Mindsets shape consumer behavior. Journal of
Consumer Psychology, 26(1), pp.127-136.

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Normreeves Toyota san diego. (2018) Toyota Technology Features. [online] Available from:
https://www.normreevestoyotasandiego.com/research/technology-features/ [Accessed
21/6/19].
Qehaja, A.B., Kutllovci, E. and Pula, J.S. (2017) Strategic management tools and techniques
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Stephen, A.T. (2016) The role of digital and social media marketing in consumer behavior.
Current Opinion in Psychology, 10, pp.17-21.
Zhang, K.Z. and Benyoucef, M. (2016) Consumer behavior in social commerce: A literature
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