Innovations in Automotive Industry and Consumer Behavior Analysis

This report, a business and management dissertation, investigates the influence of innovations on consumer behavior within the automotive industry. It begins with an introduction outlining the research topic, the importance of the problem, and the research aim, specifically focusing on Land Rover. The report establishes research objectives and questions, followed by an extensive literature review that covers the concept of innovation, its impact on consumer behavior, and its importance within the automotive sector. The methodology section details the research design, approach, and type. The report also discusses access to data and research ethics, as well as limitations. The literature review explores key concepts such as digitalization and its impact on the automotive industry, highlighting the importance of innovation for market share, customer attraction, and business durability. The study aims to analyze the effects of innovation on consumer behavior, including changes in customer perception and purchasing decisions, and the role of marketing tactics. The report concludes by emphasizing the importance of innovation for an organization's success in attracting customers and retaining a strong market position.

Business And Management
Dissertation
(Innovations In Automotive Industry
And Its Influence On Consumer
Behaviour)

Table of Contents
TITLE .............................................................................................................................................3
1.0 Introduction ...............................................................................................................................3
1.1 Identify a specific researchable topic area............................................................................3
1.2 Establish the importance of the problem...............................................................................4
1.3 Aim of the research project...................................................................................................4
2.0 Research Objectives and Research Question ............................................................................4
3.0 Literature Review ......................................................................................................................5
4.0 Methodology .............................................................................................................................7
4.1 Research Design, Research approach and Research Type....................................................8
4.2 Rationale...............................................................................................................................9
5.0 Access to Data and Research Ethics .......................................................................................10
6.0 Limitations ..............................................................................................................................10
REFERENCES .............................................................................................................................11

TITLE
“To investigate to analyse the influence of Innovations upon consumer behaviour”. A
case on automotive industry.
1.0 Introduction
Innovation introduces as an effective process of translating an invention or idea into a
product or service that create value or for which clients will pay. In simple word, innovation is
the development of a new service, product or process that gives values for customers and many
other stakeholders. Thus, it is essential process for each organisation to enhance their
productivity and image in marketplace. For this project , Automotive industry is selected which
have 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 largest
economic industry by revenue in all over the world. They does not include sectors dedicated to
the repair of automobiles following delivering to the last consumers, such as motor fuel filling
stations and automobile maintenance shops. Land Rover is chosen automotive company which
mainly specialise in selling of luxury car brand in four-wheel-drive vehicles. It was introduced in
1948 by Janguar Land Rover. There are mainly four trends driving automotive industry
innovation such as: internet of thinks sparks innovation, cloud technology speed growth,
advanced analytics will inform products and artificial intelligence shifts to a higher gear. All
these are main innovation in automotive industry that highly influence on consumer behaviour.
Thus, innovation is a marketing strategy used by company to change consumer behaviour
towards products and services. It will help an enterprise to retain long term and strong position in
marketplace.
1.1 Identify a specific researchable topic area
In order to identify impact of innovation on consumer's behaviour, an organisation can
conduct a research which will help it by increasing customer base and retaining strong position
in market. In automotive industry, innovation play as a role of marketing which will also assist
them 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 or
topic is to change customer's behaviour, perception and habit towards products and services.
This topic help an investigator in personal as well as professional manner. In personal way, with

the help of this study, they can easily enhance its literature review, data analysis and data
interpretation 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 and
performance within automotive sector. In automotive industry, innovation is important but some
time it create difficulties for company such as require maximum cost for hiring knowledge
people, cost for training etc.
1.2 Establish the importance of the problem
Innovation is important and essential for an organisation because with the help of this
they can easily attract large number of customer and retain strong position in market. In
automotive industry, innovation play effective role as a marketing which will help them in
introducing 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 that
marketers can influence consumer behaviour and maximise their probability of purchase. These
features or dimensions that the companies acquire from the innovation strategy are the most
essential once for the favourable impacts on consumer behaviour and for economic growth of
organisation.
1.3 Aim of the research project
The aim of research process is to produce unique knowledge and deepen understanding
of a issue or topic (Eastman and et. al., 2014). Along with this, entire activities of study is mainly
depend on research aim. Main aim of this research is:
“To analyse the influences of innovations on consumer behaviour. A study on
automotive industry.
2.0 Research Objectives and Research Question
Research Objectives:
Research objective is main and essential part of study which is based on two variables
such as dependent and independent (Evanschitzky and et. al., 2015). According to the topic,
customer's behaviour is independent variable which is dependent on innovation within
automotive industry. Thus, as per this, some important and valuable research objectives are
frame 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 or
study. It mainly focuses the field of study, determines the research methodology and lead entire
phases of inquiry, evaluation and reporting (Erevelles, Fukawa and Swayne, 2016). Therefore,
research question is important part for completion of research activities in systematic and
effective manner. Some important and valuable research questions are describe as below:
 What are the basic concept of innovation?
 What are the importance of innovation in Automotive industry?
 What are 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 a
research topic. It is a systematic, reproducible and explicit method for exploring, analysing and
synthesizing 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 of
literature review is to identify inconstancies i.e. conflict in previous studies and gapes in
research. Thus, it is important part of research which will help a researcher to address all
research question in well defined manner.
Concept of innovation in Automotive industry
According to the Stefan Lindegaard, (2019), the term innovation refers to the activities
and task which are performed in a new way is known as Innovation. Thus, innovation arises from
creativity or think out of the box to create any change or enhancement in the old mechanism. At
that stage of environment where globalization is increasing and technology is getting advance
more and more as a result disruptions in the economy occurs like increasing of competition,
Demands of customers changing etc. So, it is necessary to adapt innovation for better
opportunities, economic growth, survival and for the success of the company. In the same
manner, the automotive industry has huge amount of innovation in its production and this a
fundamental approach for an automotive industry to get success in this competitive environment
because the industry is facing technological as well as social changes so, having an accurate

image of state of innovation this industry assess and introduce new innovation for product
strategy and long term business growth.
According to the Eastman and et. al., (2014), innovation take place in the automotive
industry by the perspective of new market and opportunities which provide valuable benefits to
the customers. The term innovation more include in the automotive industry when digitalization
positioned itself globally which enhances the knowledge, information and attitude level of an
individual. The innovation in automotive industry will result in transformation of economy,
creation of employment, change in the supply chain management of the industry, Revenue
generation to the industry, creation of strong research and development departments of the
industry.
Impact of innovation on consumer behaviour within automotive industry.
According to the simantel, (2016), in the automotive industry, innovation has been grown
on larger basis along with raising its benefits for longer during or period time. Innovation such as
usage of advance or artificial technology in car based structure which involves advance seats, has
led customer response in most attractive and also resulted in time and cost saving for longer
duration. Innovation has change customer perception or attitude on larger basis and led an
initiative to save their high prices or money. Impact is overall positive or responsive to
increasing demand of Automotive sector and also brought positive delivery to customer needs or
wants in pin-point of their price or money which they would be liable to pay for automotive
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 continue on time to time basis and attracts maximum customer to fulfil their
need or wants from automotive industry. Basically, in car, innovation has raised at the longer
duration and it has pin point a customer actual desires to fulfil them in given point of time. It was
noticed that automotive industry has been transformed on growth based scenario along with
reaching to customer priority in given point of time to increase sales in the higher ratio.
According to the Ferreira, da Rocha and da Silva, (2014), In response, customer point of
view has been changed and its forces to generate sales for an automotive industry has also grown
over 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 behaviour

who are looking to buy automotive sector. In a reality, customer perception has become positive
for automotive sector with increase customer durability for customer perception or long lasting
sales.
The importance of innovation in Automotive industry.
According to Smriti Chand, 2019, innovation is an effective process of developing and
implementing an innovative idea. In addition, it is the process of taking valuable ideas and
converting them into valuable products, process, services or methods of operation within
automotive industry. These useful thought are the output of creativeness, which is the
prerequisite for innovation. It is essential for company by providing new ideas for quality
enhancement in enterprise. In addition, it is one of the most significant concern of each
automobile enterprise and its role in the coordination and development of market is inalienable.
With the help of innovation, an automotive industry can easily innovate their products which will
further help them by increasing customer base and increasing market share.
According to the Evanschitzky and et. al., (2015), one of the most interesting field of
innovation in the automotive sector can be summed up with the keyword “digitalization”. Large
amount of innovation in the automotive sector that will occurrence our everyday lives. They
span, for instance, from networking technologies to complete the investigation for parking spaces
and therefore reduce emissions, entire the way to electric vehicles. Thus, innovation in
automotive industry is more essential and important to accomplish long term goals and
objectives within predetermined time duration. It will also help them in increasing customer base
and retaining strong position in same sector.
According to Carraher, (2014), innovation has positive relationship with consumer
behaviour within automotive industry. In automotive sector, innovation is more essential because
it will help an organisation to produce their products and attract customers in large way. One of
the best example of innovation in automotive industry is digitalisation which will help an
enterprise to produce quality products to customers in quick manner. Therefore, innovation play
vital role in changing behaviour, buying habits and enhancing living standard of customers. For
example: effective innovation in products and services of an organisation will help them in
changing consumer behaviours towards products. Apart from this, digitalisation innovation in
products, services, methods and process will be also effective for automotive industry to increase
their market share and retain long lasting position in auto-mobile industry.

4.0 Methodology
It refers to specific plans, techniques or procedures use to analyse information about a
certain problem. It is considered as a blueprint of the report answering the questions like what,
why, when, who and many other questions. In this section of report, it can be ascertained that
whether the information is reliable or not. This information can be derived from various sources
like questionnaire, surveys, interviews or any other source depending upon the historical as well
as present information (Hussain and Rashidi, 2017). To identify the right measures of a report
Research onion is considered as the ideal framework. The different part of this report framework
is:
4.1 Research Design, Research approach and Research Type
Research Approach: It is based on the areas at which research problem is being referred
to. It includes different types of plans and that involves series of assumptions based on the
methods like, data collection, assessment and interpretation (Weeger, Wang and Gewald, 2016).
Different types of research approach involves inductive and deductive approach. In this research,
researcher will use deductive approach as it assists the researcher in grouping the relevant
information in the report.
Research paradigm: The very first layer of this research study consist of research
philosophy. There are various types of philosophies but the main philosophies considered are
positivism and Interpretivisim. Both the philosophies are considered useful,where, Interpretivism
philosophy states the difference between human factors and social factors, Positivism philosophy
states about the quantitative aspects (Liao and Cheng, 2014). Researcher will use Interpretivism
philosophy at the course of this research because it will organise data in more accurate form.
Research Design: A Research design is a arrangement of various plans, procedures or
methods helps in collecting and analysing various variables in a specific research problem
(Nørskov, Chrysochou and Milenkova, 2015). There are three types of research design, namely,
experimental, descriptive and exploratory. These all are very crucial for the research and hence,
will be used thoroughly in the report while deriving the conclusion of the report. Along with this
descriptive design is used in this project because it will help a researcher in driving valid
conclusion for study.
Research type: It refers to the choice made by the researcher that whether researcher
needs the report in number or in words. There are two types of Research Choice Qualitative and

Quantitative. Quantitative includes the quantitative data which is in form of numbers,whereas,
qualitative research consist of information that are published previously (Poncin and Mimoun,
2014). In the formation of report, both the type of research is important but researcher will use
qualitative research because it provide quality data about the topic.
Data collection: For collecting accurate data about the impact of innovation on consumer
behaviour, there are basically two form of data collection which name is primary and secondary.
Under primary source, questionnaire will be applied to gather reliable and proper information
about the topic. In case of secondary data, Books, journals, publication research, articles and
many other relevant sources are used to accumulate in-depth information about the research
(Stock, von Hippel and Gillert, 2016). According to the topic, secondary research will be applied
because it will help a researcher to gather in-depth and detail information about the influence of
innovation on consumer behaviour within automotive industry.
Data Analysis: The data analysis in secondary research will be completed with the
assistance of thematic analysis. It is consider one of the essential and effective method and in
which, different number of themes are made on each questions which will assist in carrying out
research effectively (Thakur and Srivastava, 2015). It will also support an investigator in
minutely analyzing response from respondents about the impact on innovation on their
behaviour.
4.2 Rationale
Main reason behind choosing all research method is to collect accurate and reliable data
about the topic. In order to address all research questions and objectives, there are different
research methods such as qualitative and quantitative research, primary and secondary research,
research approach, research design, sampling and many other relevant equipments are used by
researcher. Thus, all these are essential and significance for investigator to accumulate accurate
and valid data about the study (Wu and Chen, 2014). Therefore, with the help of these methods
researcher is able to collect data from respondents about the influence of innovation on customer
behaviour in automotive industry. Therefore, descriptive design, qualitative research and
secondary research are essential for researcher to achieve research aim by collecting accurate
data about the study. For this researcher alternative research method is case study which will
provide accurate and in-depth data about the field of study.

5.0 Access to Data and Research Ethics
In order to access data, there are mainly two types of data sources which name is primary
and secondary. According to the topic, secondary research is used to access data about the topic.
Research ethics incudes three main principles such as informed consent, anonymity and
confidentiality. All these principles should be follow by researcher because without this they can
not complete each activities of study in accurate and systematic manner (Evanschitzky and et.
al., 2015). Thus, it will help an investigator to achieve better results within predetermined time
duration. Therefore, ethics in research is most useful and valuable for investigator to do all
activities of tasks in appropriate way. In order to implicate ethics in work is more essential and
important for researcher to complete research in effective manner.
6.0 Limitations
Qualitative and quantitative are identify as an effective research strategy used by
researcher to gather information in form of quality, numbers and facts. Qualitative research will
be more suitable for given topic, but there is some limitation such as time, Formulation of
research aims and objectives, Implementation of data collection method, Sample size, Lack of
previous studies in the research area and Scope of discussions. Thus, all these are major
limitation which highly impact on researcher while completing each activities of research in
systematic and effective manner (Ferreira, da Rocha and da Silva, 2014). in order to manage all
limitation, researcher or organisation should use proper communication channels, time strategies
etc. All these techniques will help them in overcoming all issues in effective manner.

REFERENCES
Books and Journals
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De Medeiros, J. F., Ribeiro, J. L. D. and Cortimiglia, M. N., 2014. Success factors for
environmentally sustainable product innovation: a systematic literature review. Journal
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Eastman, J. K and et. al., 2014. The role of involvement on millennials' mobile technology
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transformation of marketing. Journal of Business Research. 69(2). pp.897-904.
Evanschitzky, H and et. al., 2015. Consumer trial, continuous use, and economic benefits of a
retail service innovation: The case of the personal shopping assistant. Journal of
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