Business and Management Dissertation: Automotive Innovation

This report, a business and management dissertation, investigates the influence of innovation on consumer behavior within the automotive industry, focusing on Land Rover. It begins with an introduction identifying the researchable topic and establishing its importance, followed by research objectives and questions. A comprehensive literature review explores the concept of innovation, its impact, and relevant studies. The methodology section details the research design, approach, and rationale. The report addresses access to data, research ethics, and limitations. It also includes findings/results, evaluation or analysis of results, and concludes with recommendations and references. The research aims to analyze how innovations, such as technological advancements and marketing strategies, affect consumer perceptions, choices, and purchasing behavior in the automotive sector, ultimately helping companies understand how to adapt and thrive in a competitive market.

Business and Management
Dissertation_Innovations in
Automotive Industry and its Influence
on Consumer Behaviour- SECOND
PART

Table of Contents
1.0 Introduction ...............................................................................................................................2
1.1 Identify a specific researchable topic area.............................................................................3
1.2 Establish the importance of the problem...............................................................................3
1.3 Aim of the research project....................................................................................................4
2.0 Research Objectives and Research Question ............................................................................4
3.0 Literature Review ......................................................................................................................5
4.0 Methodology ...........................................................................................................................10
4.1 Research Design, Research approach and Research Type...................................................10
4.2 Rationale..............................................................................................................................14
5.0 Access to Data and Research Ethics .......................................................................................14
6.0 Limitations ..............................................................................................................................14
Findings/ Results............................................................................................................................15
Evaluation or analysis of results....................................................................................................18
CONCLUSION-............................................................................................................................32
Recommendations-........................................................................................................................32
REFERENCES..............................................................................................................................33
Ethical 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 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 Jaguar 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.
Innovation is the modern method which is used by the company to maximize the profit
and 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 wide
range of customers. Even it is also realized that this method helps to raise the productivity level
of the firm and maximize the financial performance as well. Among all, digitalization is the
major trend of the industry that completely change the structure. In the continuation, The chosen
sector for this report is automotive industry which is consider one of the largest economic
revenue in the terms of revenue. Innovation in automotive sector will help to run the business
smoothly and meet the requirement of the firm as well. The chosen firm for this this report is
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Land Rover which is the luxury car brand and it is specializes in four wheel drive vehicles that is
owned by Jaguar Land Rover.
Therefore, through this report, researcher provide a clear understanding of innovation for
automotive industry and it also describe the importance such that it helps to reduce the cost
which helps to raise the financial performance of the firm. In this modern era, the demand of
customers is increases specially in comfort zone like they demand those vehicles which are good
in quality, reliability and safety, that is why, worldwide overcapacity also put the pressure on the
industry in order to maintain, reduce the vehicle price. Thus, large company also introduce the
same new products in order to meet the demand of their customers. As automotive industry is
highly influence on consumer behaviour and they want to introduce new innovation into the
work place to complete the work in defined work. Thus, present research report uses research
methodology in order to specify the methods that support researcher to attain the aim and
objectives in better manner. Apart from this, research also present primary as well as secondary
data collection to accomplish the aim.
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 helps 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
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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 described as below:
 What is the basic concept of innovation?
 What is the importance of innovation in Automotive industry?
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 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 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 disruption 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 includes 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.
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As per the view of Dogan (2019) innovation is the process or an application of better
solution in order to meet the new requirement. Using innovation, the business grows and also
improve their current process and increases its efficiency in order to improve the profitability. In
the context of automotive industry, which is also undergoes the massive technological and social
change. The author also states that majorly the automotive industry take three general approaches
that is bring new and advance technology into auto mobile, enhancing the manufacturing and
supply chain using different ideas and adopting new business model proactively. This
innovation also helps a business to raise their current performance and introduce new product
into 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 of
monetary or non- monetary form.
In this modern era, every large firm wants to introduce new innovation in their business
so that it will help them to raise their business efficiency and also increases sales as well. Thus,in
automotive industry, the innovation does not mean to creates any change or enhancement in old
mechanism but automotive manufacturers show their interest with regard to adopting new and
advance 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 onboard
technology that is increasingly turning them into computer on the wheels. Thus, it helps to
enhance the company efficiency and now a days different electric cars are also launches that
saves fuels and utilizes electricity. This is the live example of innovation by an automotive
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
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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 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.
As per the view of Borgstedt, Neyer and Schewe, (2017) innovation plays an important
role in order to raise the financial benefit of the firm. Such that recently the company adopted the
artificial intelligence as a innovation in car that includes advance seats and this lead to attract
wide 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, but
on the other side, it raise the cost of the products. The overall impact of the innovation on
consumer behaviour is positive because in this modern era, to attract customer, there is a need to
introduce new and innovative products into the workplace. Even the industry also introduce
online application in order to meet the requirement of the customer so that they can buy the
automotive product anywhere without losing time. On the other side, Bogers, Chesbrough and
Moedas (2018) critic that, from last many years, innovation only helps to raise the market share
and increases the financial performance but as the time passes, the industry uses innovation into
its daily life with different purpose. Apart from this, it is also realized that to attract wide range
of customers, there is a need to introduce new and innovative products.
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As per the view of Wiesenthal, Condeço-Melhorado and Leduc (2015) in automotive
industry, if innovation is done on regular basis then the company's financial performance is also
increases and this lead to sustain the brand image in market and that is why, an industry provide
fuel efficiency movement such that there is no need to use fuel and this car run with the single
charge only (Advancement of innovation in Automotive Industry. 2018). Apart from this, an
artificial intelligence and machine learning also creates the positive impact upon the automotive
industry such that vehicles are becoming IoT devices which are easily connect through the
smartphones and they can take voice commands and also helps to change the user interface.
Therefore, this all creates positive impact upon the customers as well as industry.
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 thoughts 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
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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.
According to Ruff (2015) innovation is growing so large and also provide different
benefits to the automotive industry from last many years. In the context of industry, it has been
realized that innovation means using advance technology in the working place such as
augmented reality which gain attention of wide range of customers. This technology has emerges
on the fringes of the automotive industry but many experts also realized that in coming years this
innovation technology assist the industry in further better way. Not only this, this technology
also provides the real time environment information which serve to highlight the object without
distracting the driver. This shows that in automotive industry, people uses their creative mind
and uses new ideas in order to provide best results with effective quality. On the other side, it is
also realized by Zailani and et.al., (2015) that innovation is the automotive sector which can be
summed up with digitalization. Moreover, large amount of innovation is done on the daily basis
in automotive industry so that the outcomes are easily identified. That is why, experts also uses
large networking technologies so that it will help to minimize the negative impact upon
environment or customers. By using innovation such as digitalization in the automotive industry,
the entire working style is change and even most of the people are also aware with such things
too. 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 Dodgson (2018) The biggest advantage of using innovation in the
automotive industry is to reduce the cost of overall product and minimize the expenses as well.
That is why, it is beneficial for the automotive industry to us innovation because it helps to attain
the long term goals as well as objectives within the defined time. Moreover, there is a positive
relationship with the customer within automotive industry and that is why there is a need to
produce the best and effective products to attract wide range of customers. In this modern era,
customer are change their beliefs and views towards another firm when they find new and better
products for their company, that is why, it is quite essential for the automotive industry to
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innovate new products which helps to attract wide range of customers towards it. The best
example of innovation in automotive industry is digitalization means that using best and
effective advance technology that helps to attract wide range of customers towards it. Thus, it
shows that innovation plays a crucial role in attracting customers, changes buying behaviour of
customers and even changes the standard of living as well. Therefore, from last many years the
adoption of advance technology into the working place of automotive industry is increases up to
25 percent and this further increase in coming years as well. Therefore, The technology has
emerges on the fringes of the automotive industry but many experts also realized that in coming
years this innovation technology assist the industry in further better way, this also help a firm to
attract wide range of customer towards it and then raise the company's actual performance.
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 involve 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.
It is the plan and a procedure that helps to identify the solution of the research problem
and it is the broad assumption of all the data collection, analysis nd interpretation (Sekaran and
Bougie, 2016). It is further divided into three types such as deductive approach which is used to
generate the true conclusion, inductive approach which is used to generate the untested
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conclusion and leads the research to specific to general, abductive approach in which the
researcher generate testable conclusion.
Among all, researcher chooses deductive research approach to attain the aim that is to
analyse the influence of innovation upon consumer behaviours and generate the true conclusion
as well.
Research paradigm: The very first layer of this research study consists of research
philosophy. There are various types of philosophies but the main philosophies considered are
positivism and Interpretivism. 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.
It is the first layer of the research which describe the notion about the way through which
researcher can generate and analysed that data which is collected (Cazeaux, 2017). Though there
are different types of philosophies but main philosophies are positivism which relies only on
factual knowledge that is collected through observation, but it is difficult to understand and next
is Interpretivism, that involves researcher to interpret the key aspect of the study and this is
mainly based upon the human interest into the study.
From the above, researcher chooses Interpretivism research philosophy because it helps
to access the reality and accomplish the aim that is to analyse the influence of innovation upon
consumer behaviours and also conduct the research in better mode with accurate data.
Research Design: A Research design is an 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.
It is the set of method that helps to collect the best variable which are specified in order
to address the problem. Thus, it helps a researcher to generate better outcome and also gain new
evidence in research process (Lindley 2015). Generally, there are two types of research design
that is exploratory, in which it explore the specific aspect of the research area but did not reach to
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