Analysis of Consumer Decision Process in Buying an SUV

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This report provides an in-depth analysis of the consumer decision process specifically within the context of purchasing Sports Utility Vehicles (SUVs). It begins with an executive summary outlining the key areas of focus, including the consumer's buying behavior, evaluation of alternatives, and the ultimate purchase decision. The report delves into the consumer decision process, exploring how factors such as internal traits (attitude, lifestyle) and external vehicle characteristics (price, design, off-road capability) influence consumer choices. It examines the impact of pricing on marketing strategies and consumer perceptions, discussing how economic conditions, government policies, and lifestyle factors affect SUV popularity and sales. The report also considers the role of advertising and the perception of safety in shaping consumer preferences. It concludes with an overview of the current market trends and provides references to support the analysis.
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Consumer Decision Process in Buying SUV 0
Title: Consumer Decision Process in Buying SUV
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Consumer Decision Process in Buying SUV 1
Executive Summary
The report summarizes an introduction to the purchasing or buying behavior of Consumers of
SUV. A brief overview has been provided on the consumer decision process and evaluation of
alternatives and purchase decision of the buyer. An explanation has been provided on how
pricing affects the marketing strategy and this is followed by a conclusion.
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Consumer Decision Process in Buying SUV 2
Contents
Consumer Decision Process............................................................................................................3
1. Evaluation of Alternatives................................................................................................................3
2. Purchase..........................................................................................................................................4
How Price will affect the Marketing Strategy?...............................................................................6
References........................................................................................................................................8
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Consumer Decision Process in Buying SUV 3
Consumer Decision Process
In a country like the USA, Sports Utility Vehicle (SUV) is a growing market in the
automotive sector. This is mainly due to the change in consumer perceptions towards buying
four wheelers. This is a growing market, Company A has launched its SUV brand and that will
perform well in the urban USA.
1. Evaluation of Alternatives
The USA economy is growing at a fast pace. USA has a rapid automotive sector where
the launch of the SUV is growing. This is an evolving market, where Company A launches its
compact SUV brand and the price is approximately about Rs.8 to 10 lakhs. Brand X will become
the number one SUV for 80 percent of sales that are taking place in the USA. The main variables
which are influencing the customer buying behavior of SUV have been given as follows-These
are divided into vehicle and buyer factors. Internal factors are traits of buyers such as attitude
and lifestyle; these persuade a buyer to buy the SUV (Culiberg & Bajde, 2013). External or
vehicle factors are features and properties of an SUV, which can drive the consumer purchase
decision. Price of an SUV, space, design as well as off-road capability is regarded as external
factors.
The attitude of a buyer plays a major role in influencing the purchase decision for buying
an SUV. For instance, there are people who love traveling and likely to purchase sedans or SUV.
People who commute on a daily basis will love small sedan or car (Koklic & Vida, 2011). People
who are having the freedom to travel with an unlimited budget can choose to purchase the SUV
or luxury cars or sports car. There are people who will be showing concern over environmental
pollution. This is a sign of well-being and the percentage of household expenditures for a vehicle
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Consumer Decision Process in Buying SUV 4
purchase along with fuel cost is always constant. This was true in the 1990s. This is true from the
perception of safety and vehicle size with its greater visibility. The average U.S. citizen has been
considered as more mobile as SUV combines the towing power and seating capacity of minivans
(Zuschke, 2019). These people may not prefer the SUV as they demand space and because of
traffic jams. These require more fuel (Guliyev, 2017).
Personality factors can influence car buying behavior. A study has been conducted on
different personalities that can support the claim. Aggressive seekers or adventure seekers will
love to drive the SUV. Loners or calm people will prefer small cars or minivans. There are few
people who believe that the SUV will project them as confident when compared with peer
groups. There are high chances that a person will opt for the SUV. The lifestyle is also an
important factor which is as follows-Workaholic, status seekers, family oriented and frustrated.
Status seekers will show-off to society. These people are unique and different. These people have
a belief that luxury cars or SUV are regarded as status symbols and likely to drive an SUV.
There are status seekers who already own a car, buy an SUV as the second car for projecting the
best image. Frustrated people will show less interest to drive the SUV and prefer smaller cars
(Chatzidakis & Mitussis, 2007).
2. Purchase
SUVs are known for having a sturdy design and are suitable for off-road capabilities.
These are perfect cars for bad roads such as snow and hilly terrains. SUVs have been
equipped with engines of higher torque and power. Higher performance helps in increasing
vehicle performance. People have fun while driving the SUV and get a better experience.
SUVs come with safety features. Tall seating and sturdy design make people feel safe while
driving. SUVs can be more spacious when compared with different forms of car. This is true
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Consumer Decision Process in Buying SUV 5
with luggage space and seating as they can hold more luggage and have more carrying
capacity (Dos Santos, 2012).
SUVs come with various seat configurations and provide a wide number of options to the
customers. This is mainly due to heavy designs and larger engine capacities. SUVs will be less
fuel effective when compared with sedan cars. These are bulky and require more parking spaces.
These can result in traffic jams and this is because of the bigger size. SUVs are considered as
expensive as they are big and have a heavier design with more number of capabilities. Price is
one of the primary factors when purchasing the SUV. However, government policies will also
have an effect on the price. For instance-SUVs that are more than 4 meters in length and have an
engine capacity of more than 1500 cc and ground clearance of 170 mm are imposed with an
additional excise duty of 30 percent. This increases the on-road price and shifts the burden over
customers (Stankevich, 2017). Purchasing a luxury car or SUV is a characteristic indication of
high lifestyles and income. Individuals with high incomes are likely to select luxury cars and
SUVs. The people select SUV for specific occasions like weekend drive. Income shows a
positive association with the buying behavior of luxury cars as well as SUVs. Moreover, marital
status and occupation play a bigger role in the decision making of a luxury or SUV car. It is also
the lifestyle or need which counts for more than occupation and this also drives the customer's
behavior. There are few occupation cases like politicians prefer SUV and family size is also an
important influence. Children are also known to influence the parents' choice when purchasing
the SUV as these are more spacious and have a glass area through which surroundings can be
enjoyed while traveling (Chhabra, 2018). When the economy takes the downswing, there will be
a substantial rise in the fuel price structure. Sales will begin to stabilize or decline. The huge
popularity of SUVs is not based on the fuel economy or vehicle price, but on the rugged image
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Consumer Decision Process in Buying SUV 6
and sporty image of the vehicle and perception of safety which is encased within the sturdy
frame. These are some of the reasons while purchasing an SUV will not change. SUV popularity
will certainly continue at the forecast rate.
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Consumer Decision Process in Buying SUV 7
How Price will affect the Marketing Strategy?
The sale of SUVs is increasing dramatically, especially in the past 10 years. Most of the
people are referring to an increase in the sale of the SUV as a fad. This is based on purchaser
perceptions which are fashionable and make the statement about high-income or active lifestyle.
Purchase costs can vary widely through the economy versions to luxury models and also the
longevity of SUV popularity. The popularity of SUVs is encouraged with a relatively lower fuel
price and fuel availability in the USA. This is due to the absence of community pressure for
conserving energy and controlling pollution (Murali, 2015). United States economy is very
strong and people have lots of money to spend on luxury items. However, the SUV market is
very good and every manufacturer provides one SUV option. The luxurious sport utility has hit
the market and sticker prices, which are above than 45000 dollars.
Advertising is known to play a huge role in influencing purchase decisions. Ford Motor
Company has started the new ad campaign and large emphasis over outdoor adventures. The
implication is an individual can go anywhere in an SUV. However, the image plays a greater role
when making the vehicle purchase. Market survey shows visibility through the driver seat and
vehicle performance and internal comfort are some of the attributes that drive performance and
attributes which buyer seek. SUV owners feel protected and control of safety while in traffic and
encased within the SUV. These are some of the perceptions (Kanagal, 2016). The Public has a
whole belief that SUV is safer when compared with cars as these are generally larger, given the
weight advantage, especially when compared with vehicles.
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Consumer Decision Process in Buying SUV 8
References
Chatzidakis, A., & Mitussis, D. (2007). Computer ethics and consumer ethics: the impact of the
internet on consumers' ethical decision-making process. Journal Of Consumer
Behaviour, 6(5), 305-320.
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Consumer Decision Process in Buying SUV 9
Chhabra, D. (2018). Factors Affecting Consumer Buying Behaviour and Decision Making
Process towards FMCG Products. Journal Of Advances And Scholarly Researches In
Allied Education, 15(6), 131-139.
Culiberg, B., & Bajde, D. (2013). Consumer recycling: An ethical decision-making
process. Journal Of Consumer Behaviour, 12(6), 449-459.
Dos Santos, M. (2012). Investigating consumer knowledge of global warming based on Rogers'
knowledge stage of the innovation decision process. International Journal Of Consumer
Studies, 36(4), 385-393.
Guliyev, S. (2017). Impact of a Brand on Consumer Decision Making Process. SSRN Electronic
Journal.
Kanagal, N. (2016). An Extended Model of Behavioural Process in Consumer Decision
Making. International Journal Of Marketing Studies, 8(4), 87.
Koklic, M., & Vida, I. (2011). Consumer strategic decision making and choice process:
prefabricated house purchase. International Journal Of Consumer Studies, 35(6), 634-
643.
Murali, M. (2015). Split Brain Theory and the Relevance of Consumer Decision Making
Process. SSRN Electronic Journal.
Stankevich, A. (2017). Explaining the Consumer Decision-Making Process: Critical Literature
Review. Journal Of International Business Research And Marketing, 2(6), 7-14.
Zuschke, N. (2019). An analysis of process-tracing research on consumer decision-
making. Journal Of Business Research.
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