Consumer Behavior Analysis: Automobile Purchase Decisions Report

This report provides an analysis of consumer behavior in the context of automobile purchases, focusing on three respondents and their preferences. The study examines how consumers evaluate different car features, such as engine type, seating capacity, and technological aspects, influencing their purchase decisions. It applies the compensatory decision rule to understand how consumers balance various criteria. The report highlights that the Toyota Camry Ascent Sport is a popular choice among the respondents, while also noting the importance of cost-effectiveness, flexible financing options, and advanced technological features for different consumer segments. Recommendations are made for marketers to tailor their strategies based on consumer preferences, geographic locations, and economic conditions, with the aim of enhancing customer satisfaction and sales. The report concludes that understanding consumer behavior is crucial for effective marketing in the automobile industry.

Running head: CONSUMER BEHAVIOR
Consumer Behavior
Name of the Student
Name of the University
Author Note

1CONSUMER BEHAVIOR
Executive Summary
The study of individuals, groups, or organizations based on which a marketer develop a product
or service is designed in known as consumer behavior. Another speculation that is applicable in
this report illustrates that when a consumer agrees to pay more capital resources for the products
or services that satisfy all their requirements and preferences, it refers to the theory of
compensatory decision rule. In this report, the three response based on a questionnaire is
considered and their choice of buying an automobile is assessed. It is found that Italian
customers, who are only earning person, prefer a car that is pocket friendly; on the other hand
Chinese people are more focused towards the modern technology and hence do not hesitate to
spend more financial resources if they find a car technologically rich in nature.

2CONSUMER BEHAVIOR
Table of Contents
1.0 Analysis of the three out of five questionnaire response.................................................................3
2.0 Analysis of the behavior of the chosen respondents........................................................................3
2.1 Respondent- 1..............................................................................................................................3
2.2 Respondent- 2..............................................................................................................................4
2.3 Respondent- 3..............................................................................................................................5
3.0 Recommendation to the marketer....................................................................................................6
4.0 Conclusion.......................................................................................................................................7
5.0 Reference List..................................................................................................................................8

3CONSUMER BEHAVIOR
1.0 Analysis of the three out of five questionnaire response
The response for the survey of the first, second and third research respondents have been
considered for the assessment. There are total 13 research questions present in the questionnaire
in which the first question is regarding the important aspect that a consumer considered while
taking the decision of purchasing an automobile. The second question highlights the rating of the
motor vehicle features that the consumer sees while making automobile purchasing decisions.
This question comprised of seven ordinal questions. The third research question allows the
consumer to rank all the six cars according to their preferences. Research question 4 to 12 are all
nominal question and cam be answered in on word. The last research question is also an ordinal
question which identifies the nature of the consumer.
2.0 Analysis of the behavior of the chosen respondents
Gowrisankaran and Rysman (2012) stated that according to the compensatory decision
rule, a person evaluates the products and the services alternatives for finding one with
exceptional characteristics. Guajardo, Cohen and Netessine (2015) furthermore stated that in
such cases, consumer sometimes agrees to pay more capital resources for the products or
services that satisfy all their requirements and preferences.
2.1 Respondent- 1
The evaluation criteria for the research respondent 1 are focused more on number of seats
available and smart start and entry system followed by choice of petrol/diesel/hybrid engine,
multiple systems and storage inside the car. Moreover, when the respondent asked for rating each
motor vehicle option against evaluative criteria, the rating was given as ‘very good’ to Toyota

4CONSUMER BEHAVIOR
Camry Ascent Sport for the choice of petrol/diesel/hybrid engine. However, the preferable
evaluation criteria for the respondent 1 is number of seats available, in which the respondent rate
‘very good’ to Kluger AWD GXL and give a ‘good’ rating to Toyota Prius vi-Tech, Camry
Ascent Sport, C-HR AWD and Yaris ZR. Moreover, for the feature of multiple systems to alert
driver, the response is ‘very good’ for Toyota C-HR AWD only. Moreover, for the preferable
evaluation criteria of smart start and entry system, the respondent gave ‘very good’ rating to
Toyota Camry Ascent Sport and Kluger AWD GXL. Furthermore, for the Engine capacity and
size of touch screen display, the respondent gave high rating to Toyota Hilux SR 4x2 Hi-Rider
Extra-Cab Pick-Up and Camry Ascent Sport respectively. Lastly, for boot storage, the
respondents gave high rating to Toyota C-HR AWD followed by Toyota Hilux SR 4x2 Hi-Rider
Extra-Cab Pick-Up, Prius vi-Tech, Camry Ascent Sport and Kluger AWD GXL. Thus, the most
of the feature that is liked by the respondent is for Toyota Camry Ascent Sport and thus it can be
stated that the probability for the concerned person to buy Camry Ascent Sport is high. This
likelihood is also proved through the next research question, where the respondent ranked this
model as number-1. Moreover, the occupation of this respondent is ‘teacher’ and takes the
decision on the own. Thus, the profession of the respondent allows the respondent to follow the
logic behind their action. The annual pretax income of respondent 1 is $85,000 and thus the
person can afford the amount of $33,588 for a car that fulfils all her criteria.
2.2 Respondent- 2
The second respondents emphasizes more on the technical and safety features while
making a purchasing decision for automobile and hence gives a score of 50 for the evaluation
criteria of multiple systems to alert driver like lane departure alert, pre-collision safety system
and automatic high beam. According to the response on the given research question, it can be

5CONSUMER BEHAVIOR
found that for the choice of petrol/diesel/hybrid engine, number of seats available, smart start and
entry system, engine capacity and storage inside the car, the respondent rated Toyota Camry
Ascent Sport as good for two features and very good in three features out of the seven features.
Thus, from this matrix, it can be easily drawn that respondent 2 is more likely to choose Toyota
Camry Ascent Sport but when asked one option as her choice of motor vehicle, the respondent
choose Toyota Yaris ZR. Thus, the likelihood of the response does not matched with the
automobile of her choice. This difference occurred since she is a single person and working as a
nurse, so financial stability is required to purchase a high end car. The family’s household pretax
income last year and own pretax income last year is same that is $50,000, which shows that the
respondent is only earning person in the family. Moreover, it can also be said that in this case
compensatory decision rule is not followed.
2.3 Respondent- 3
The respondent 3 emphasizes on the evaluation criteria of petrol/diesel/hybrid engine,
multiple systems of alert and storage inside the car mainly for choosing a car to buy. The
response matrix also shows that this respondent give ‘very good’ rating for the choice of
petrol/diesel/hybrid engine to both the Toyota Prius vi-Tech and Toyota Camry Ascent Sport.
However, for the number of seats available the respondent Prius vi-Tech prefer more than Camry
Ascent Sport and also chosen Toyota Kluger AWD GXL. Furthermore, when considered the
main feature of multiple systems to alert driver that is preferable by the respondent, he gave
‘average’ rating to Prius vi-Tech and Camry Ascent Sport and gave ‘very good rating’ to Toyota
C-HR AWD and Toyota Yaris ZR. The engine capacity of any of the car cannot impress this
respondent rank ‘very good’ for Smart start and entry system to Camry Ascent Sport and Kluger
AWD GXL and Size of touchscreen display to Hilux SR 4x2 Hi-Rider Extra-Cab Pick-Up and

6CONSUMER BEHAVIOR
Camry Ascent Sport. Another feature that is preferred by the respondent for effective evaluation
criteria is boot space in which he gave ‘very good’ rating to Camry Ascent Sport and ‘good’ to
Prius vi-Tech and C-HR AWD. The matrix show that according the preference of the evaluation
criteria of the car, he is more likely to purchase Camry Ascent Sport followed by Prius vi-Tech.
However, when the respondent ask for the choosing an automobile that he want to purchase, he
went for Prius vi-Tech followed by Camry Ascent Sport. Thus, the difference in this decision
occurred due to the reason that the person is wealthy and focuses more on the technology.
Toyota Prius vi-Tech has many new technologies like automatic high beam lights, SUNA traffic
channel, panoramic roof, pre-collision safety system, heated front seats, intelligent park assist,
active cruise control, reversing camera, lane departure alert, automatic air conditioning, smart
start, driver's knee airbag including 7 SRS airbags. Prius also offer 8 year/160,000km hybrid
battery warranty and have sitting accommodation for 7 people. As the person is married a family
person, he followed compensatory decision rule and make a purchase decision for a car that
meets maximum of the technological aspects.
3.0 Recommendation to the marketer
The Toyota Automobile that is most preferred by all the considered respondents is
Toyota Camry Ascent Sport and has effective.
Cost effective automobile version: In case of Respondent 2, the person like the model Camry
Ascent Sport for all the evaluative criteria but chosen Yaris ZR just for the low cost. Thus, the
marketer needs to formulate another version for Italian customers that focus more on the multiple
systems to alert driver in an affordable cost.
Develop efficient EMI option: The marketer should attract their valuable customers through
flexible EMI options so that single earning person can also afford their preferable automobile.

7CONSUMER BEHAVIOR
Inclusion of technological features: Toyota Camry Ascent Sport has effective features like
availability of hybrid and petrol engine, Smart start and entry system, 7" colour Multi-
information display and storage inside the car but lacks many technological aspects. This is the
reason that the third respondent did choose Prius vi-Tech over Camry Ascent Sport. Thus, in
order to attract their Chinese customers, who are more focused towards technology, Toyota can
include heated front seats, active cruise control, reversing camera and pre-collision safety
system. This will help the Toyota marketer to develop the desired car model according to the
preference of the customers depending on their geographic locations and economic condition.
4.0 Conclusion
Thus, it can be concluded that there are total 13 research questions present in the
questionnaire. The survey of the first, second and third research respondents have been
considered for the assessment. It is also found that the probability for the concerned person to
buy Camry Ascent Sport is high; whereas, from the response matrix, it can be easily drawn that
respondent 2 is more likely to choose Toyota Camry Ascent Sport. However, respondent 3 is
more likely to purchase Camry Ascent Sport followed by Prius vi-Tech. In the first case, the
likelihood of the preferred car is matched with the choice but the compensatory decision rule is
not followed in case of second respondent. The reason is due to her financial stability and she is
the only earning person in the family. The compensatory decision rule is followed in the third
respondent’s case where the respondent likely to make a purchase decision with higher cost than
expected if the cars features meets maximum of the preferred aspects. Lastly, the
recommendations to the marketer made for Toyota Camry Ascent Sport are cost effective
automobile version, develop efficient EMI option and inclusion of technological features.

8CONSUMER BEHAVIOR
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9CONSUMER BEHAVIOR
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