Consumer Behaviour: Analysis of Vehicle Purchase Decisions Report

This report provides an analysis of consumer behavior related to vehicle purchase decisions, based on survey responses from three different respondents representing diverse income levels. The study investigates the varying criteria consumers consider when selecting a vehicle, with price identified as a crucial factor for some, while brand and other features are prioritized by others. The analysis delves into how demographic factors, such as income and family size, influence these choices, and recommends marketing strategies tailored to different consumer segments. The report also examines the characteristics of the likeliest customers for different vehicle types and explores effective approaches to attract them, ultimately highlighting the multifaceted nature of consumer behavior in the automotive market.

Running head: CONSUMER BEHAVIOUR
Consumer Behaviour
Name of the Student
Name of the University
Author Notes:

1CONSUMER BEHAVIOUR
Executive summary
It is known that the behaviour of the companies have to be catered to by companies in order to
identify the strategies that they have to carry out in order to tap the consumers. For this purpose,
the study was conducted with the help of three respondent who belonged from different income
groups. The responses of the latter differed. It was found out that the criteria that is considered
by the different consumers differ. The most crucial factors that determines the ultimate purchase
decision is the price of the vehicle. The consumer were presented with questionnaires that they
filled and the analysis has been based on the same.

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Table of Contents
Introduction......................................................................................................................................3
Analysis of behaviour......................................................................................................................3
Difference in the evaluation criteria............................................................................................3
Reason behind the difference in the choice.................................................................................4
Analysis based on demographic theories.........................................................................................4
Reason behind evaluation............................................................................................................4
Difference in choice of vehicle....................................................................................................5
Recommendation.............................................................................................................................6
Characteristics of the likeliest customers....................................................................................6
Attracting the customers..............................................................................................................7
Conclusion.......................................................................................................................................7
REFERENCES................................................................................................................................8

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Introduction
The behaviour that people exude is different and there are many factors that contribute to
the difference in the opinions of the people. The topic of consumer behaviour and individual
personality and behaviour based on the demographic belonging are criteria that are considered
when an individual makes a purchase related decision (Foxall, 2014). The following paper aims
to critically evaluate the behaviour of four different respondents on the criteria based on what the
questionnaires were filled by the respondents who belonged from different occupations and
demographic groups. The reasons that went behind the decisions have been adjudged in the
following section. The respondents who have been chosen are, respondent 1, respondent 2 and
respondent 4.
Analysis of behaviour
Difference in the evaluation criteria
From the questionnaires that have been filled by the different respondents, three have
been selected. It was found out that the behaviour of all the three respondents differ. It can be
opined that the difference in the opinion of the people differ based on various considerations
(Hansson et al., 2013). The respondents were given five choices of vehicles that they had to fill
the questionnaires were filled. The Mitsubishi Lancer, Ford Territory, the Holden Colorado,
Audi Q5 and the Volkswagen Golf are the cars that were given to the respondent as the choices.
The behaviour of people while choosing cars differ considering the prices of the vehicle differ
based on the pricing of the vehicle, the brand, the body and colour and the kilometres and the
fuel economy of the cars (Axsen, Orlebar & Skippon, 2013). It was found that there were certain

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aspects of the vehicle that were rated higher than the other based on various factors. It was found
that the price at which the cars were offered was some of the most important criteria that
determine the responses of one of the three respondents (Diallo et al., 2013). While the two other
respondents rated the brand value and the cars that derived everything as the top priorities in
their responses. It was found that the income of the respondents determined the nature of their
response.
Reason behind the difference in the choice
The respondent who had the lowest income that is respondent 1, rated the price factor as
the top deciding factor over others. Respondent 4, who had the highest income preferred to place
their priorities based on the brand of the car rather than other factors. Income is one of the most
important factors that determine the factors that affect the ultimate purchase decision of the
consumers in the market (Fletcher & Wolfe, 2016). Thus, the consumers who are sensitive to the
price of the product that they are purchasing consider the price of the products. Income elasticity
is one of the most important criterions that determine the effectives of the consumers in arriving
at the point of purchase (Doucouliagos, Stanley & Viscusi, 2014). Furthermore, it has been
recognised that different aspects of the vehicle are valued differently by different people. Other
factors that influence the decision of the people determine the difference in the decision that have
been made by the different people (Pabst, Brand & Wolf, 2013). The size of the family and the
actual needs for the vehicle also determines the purchase decisions (Doucouliagos, Stanley &
Viscusi, 2014).

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Analysis based on demographic theories
Reason behind evaluation
People belonging to different demographic groups behave differently (Liebman &
Luttmer, 2015). The choices and the needs of elderly people would be different than that of the
people who are middle aged. A person who is married has different consumption functions than
that of people who are single (Hosseinkhanzadeh & Taher, 2013). Females might want different
features in their cars and the males might something different in their cars (Andreassen et al.,
2013). The decision-making mechanism depends on the prime earner of the families of people
(Glimcher & Fehr, 2013). One of the three chosen respondents was a female and even if it was
the level of income of the latter was similar to that of her husband the ultimate purchase decision
regarding purchase of the motor vehicle was made by her husband. Two of the other selected
respondents (respondent 2 and 4) were males out of them one of them was divorced and one was
married. It can be assumed that the former had lesser amount of obligations with higher income,
which ultimately determined the responses in the questionnaire.
Difference in choice of vehicle
The three respondents who were subject to the interviews were presented with the option
to prioritise the vehicles based on the choices that they made. Mitsubishi Lancer was the choice
of the respondent 1 who was a female. Furthermore, the respondent mentioned that the price of
the vehicle is one of the most important factors that they would consider while making the
decision of purchase. The car that was chosen was adequate for the respondent as it fulfilled all
the requirements. The Audi Q5 was chosen by the respondent 2, who had the second highest
income among the all the three respondents. According to the respondent, the brand of the car
that they would purchase was one of the biggest deciding factors that would influence the latter

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in formulating the ultimate purchase decision. The latter was found to be the most price
insensitive among the chosen respondents. Furthermore, it has been assumed that the respondent
has highest amount information of vehicles. All the components of the car including the price,
colour, millage of the vehicle and other factors contributed to the final decision that was made by
the respondent. The respondent who ranked the brand value as one of the most important criteria
that goes into the formulation of the ultimate decision of purchase (Malik et al., 2013). Thus, it
can be said that depending on the demographics, the decision is made from the part of the
consumers.
Recommendation
Characteristics of the likeliest customers
The five cars that have been presented in the questionnaire have different utility to
different people. There are certain criteria, that determine, the utility that the consumers derive
from the vehicles that they choose. Some prefer the cars that provide better value for money,
while some prefer that the vehicle that they choose the vehicles that have the highest brand value
associated with the car. Thus, the likeliest customers are spread into two groups. The consumers
who are prepared to pay the lowest possible price for the highest possible value that they derive
from purchasing the vehicle and the consumers who do not mind the price at which the vehicle is
offered in the market. The only criterions that is considered by the latter the quality of the
product. The pricing strategy that can be by the company for the case of the former is assumed to
be similar to the nature of penetration pricing that is needed to be carried out by the company.
Penetration pricing is a tactic that is used by companies to focus on products that are considered
to be effective for the masses (Sije & Oloko, 2013). The price at which the product will be
offered in the company is needed to be effectively communicated to the consumers who are

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likely to spend on the products. Thus, the main aspect that would needed to be catered to buy the
respective companies is the price at which the product will be offered by the company. For the
consumers who are willing to pay high amounts for the sense of brand that they derive from the
products, the type of marketing that needs to be carried out is niche pricing (Kesieme et al.,
2013). The prestige that will be associated with the product will determine the utility that the
consumers will demine from the products that will be offered by the company.
Attracting the customers
Attracting the customers to the vehicle to be offered by the company determine the main
ground behind the productivity of the respective companies. The companies who are offering the
most favourable vehicles would need to study the consumption patterns of the consumers
through which they will be able to identify the behaviour and consideration that goes in from the
part of the companies before they cater to the needs of the consumers that are being offered with
the product in the form of vehicles.
Conclusion
On a concluding note it can be said that there are various factors that contribute to the
ultimate purchase decision of the consumers. The study was conducted in order to prove the
viability of the same. The three respondents that were chosen from the study belonged from
different income and demographic groups. Hence, the responses of the latter differed. It was
found out that the criteria that is considered by the different consumers differ. The most crucial
factors that determines the ultimate purchase decision is the price of the vehicle. The three factor
include the value that they are deriving from the product.

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