Consumer Behavior Analysis of Tesla Model 3 in Australia

tesla model 3, australia

Table of Contents
Section 1......................................................................................................................................................2
Brand overview.......................................................................................................................................2
Key theory identification.........................................................................................................................2
Section 2......................................................................................................................................................2
a) Motivation explaining Problem recognition........................................................................................2
b) Linking theory- Psychogenic needs.....................................................................................................3
Section 3......................................................................................................................................................4
a) Attitudes explaining information search..............................................................................................4
b) Linking theory-Influence of Social Class............................................................................................4
Section 4......................................................................................................................................................5
a) Influence of reference groups explaining purchase behavior...............................................................5
b) Linking theory-Leaders opinion..........................................................................................................6
Section 5......................................................................................................................................................7
Marketing strategy recommendations......................................................................................................7
References...................................................................................................................................................9
Appendix...................................................................................................................................................11
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Section 1
Brand overview
Tesla is one of the leading automobile brands in Australia of which Tesla Model 3 is an electric
car and it is founded in many countries around the world. It is an eco-friendly car which acquires
accelerates at a speed of 60mph in just 5.1sec.
Key theory identification
The paper will discuss the three theories of consumer behavior which includes problem
recognition, information search, and purchase behavior.
Section 2
a) Motivation explaining Problem recognition
According to the Darwinian evolutionary theory behavioral tendency will changes for the
survival of a species. Thus the consumer also faces some problem on their actual needs and want
and for this motivational theory is selected which identify the actual motive of the consumer in a
particular way (Agag and El-Masry, 2016). The Maslow’s Need Hierarchy theory and the
McGuire’s theory are the two theories related the motivational theory of the consumer needs in
Tesla Model 3.
Abraham Maslow (1965) suggested that the needs for the hierarchical structure should be
maintained so that they fulfill the needs of the consumer. Actually, the theory of the Maslow
models explains the hierarchy of needs that can help us to know the basis of consumer
motivation (Amaro and Duarte, 2015). The hierarchy of the motivational needs according to
Maslow are divided as- Physiological needs that includes the basic desires like air, water, food,
comfort, sleep etc. and if this is not satisfied to the people then it causes sickness, pain,
discomfort etc. and another need which is the safety as well a security of the consumer, and the
last needs is the growth needs that includes cognitive, self-actualization etc. If all the needs of the
consumer are fulfilled then they are motivated to buy the product. Since Tesla Model 3 in an
electric car and also it is considered as one of the best electric car models in the world (Ayeh,
2015). The company makes this car as an eco-friendly vehicle that runs through electric and thus
reduces the global warming. Due to this process, it motivated the customer to use this car.
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Actually, the company recognized the problem of the customer and made the car according to
their needs.
Another theory that motivated the consumer behavior is the McGuire’s theory of motives.
According to the author the theory is based on psychological motives of the consumer and are
divided into the following division: needs for consistency that includes the choice and taste of
the consumer, another one is needs of categories that includes the object that is desired by the
consumer and the other categories are cognitive growth and preservation motives and affective
growth and preservation motives (Banerjee, 2017). According to the theory, the category of the
product mainly influences the consumer. Hence the consumer is motivated by the innovation of
the electric car by Tesla as it does not cause any pollution in the environment and hence are more
attracted to the consumer.
b) Linking theory- Psychogenic needs
The consumer main motive is to purchase the latest product from the market which fulfills their
needs. Thus the consumer behavior mainly depends on the selection process of what they are
choosing and which fulfill their wants and needs. According to Biswas and Roy, (2015), the
psychogenic needs of the consumer divided into the primary and secondary needs. The primary
needs include the basic requirement of the consumer which are air, food, water, sleep etc. if these
needs are not fulfilled then a person becomes irritated and thud it affects their psychology also.
Although the biological needs are quite different from the primary needs it also motivates the
consumer behavior of adapting the services without any issues. As per Caruana et al., (2016) the
psychogenic needs of every individual are different and that recognizes the individual power,
achievement, and attraction towards the needs. Apart from this the theory also suggested that this
psychological motives also influence the customer of buying a product that helps them to fulfill
their needs in the life. Actually, the psychogenic needs theory of Murry suggested that the
consumer motivation on the problem recognition stage will help them to make a decision on the
product on which they want to buy. As the brand, Tesla is an international brand and it main
motives are to fulfill the needs of the customer and thus they make the new Tesla model 3 which
help them to fulfill the needs of the customer as well as they get huge profit on the product (Chen
and Tung, 2014). Furthermore, depending on the motive of the consumer the Tesla Company has
made this car because nowadays global warming causes a huge damage to the nation and this
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