Consumer Behavior and Insight: Volkswagen ZX4 Model Report Analysis

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Added on  2023/01/18

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This report delves into consumer behavior and insights, using the Volkswagen ZX4 model as a case study. It examines the stages of consumer decision-making, from pre-purchase research to post-purchase evaluation, highlighting the psychological and economic factors influencing customer choices. The report analyzes the importance of mapping the path to purchase and understanding consumer decision-making, emphasizing the role of marketers in providing relevant information and influencing purchasing decisions. It further compares B2B and B2C approaches, discussing how Volkswagen utilizes B2C strategies to reach its target market. The report explores various factors that impact consumer choices, including economic, personal, and social influences, along with the impact of technology and marketing mix elements on purchasing decisions. The report concludes by providing a comprehensive overview of consumer behavior, decision-making, and marketing strategies within the context of the automotive industry.
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Consumer Behaviour
and Insight
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Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
......................................................................................................................................................3
Task 2...............................................................................................................................................5
......................................................................................................................................................6
Task 3...............................................................................................................................................8
......................................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCE.................................................................................................................................10
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INTRODUCTION
The consumer behaviour and its inside is a general related term used by human behaviour
for creating an increase and providing effectiveness of the products and all their services
provided. Generally it helps in increasing the amount of sale of business in organisation by
particularly setting some goals and objectives. The sale of organisation generally depends on all
the buying decisions which are related to the products as well as the services. Then usually such
promotional activities are used for development and customer expectations are wet through
creating such substructures (Bian and et.al., 2016).
For understanding this consumer decision making better Volkswagen has been chosen as
one of the biggest automobile industries which is manufacturing different cars with different
styles and models. There are many topics which are discussed below in this report which
includes several stages of consumer decision making which is related to Volkswagen and the
many importance of the map which in order to purchase search and consumer decision making
power which is connected to B2B and B2C.
Task 1
P1 Stages of consumer decision making for a product and services
The decision making power in consumer is generally used by them for identifying their
own desire and needs. Also gather information and evaluate any other substitute which can be e
part of the decision making and purchase decision. There are several psychological and many
economical factors that can also influenza customer. This will directly attempt over the people
who are manufacturing such kinds of products and which will attract them in making the perfect
buying decision (Rana and Paul, 2017).
Volkswagen is a very big multinational automobile industry which has been dealing with
different models and seven cars which are launched each year to be sold to public. The company
has decided to launch several new models in which one of them is Volkswagen ZX 4 this model
is very attractive and has been in the buying decisions of several customers. This model will
increase the market price of company and launch it to a different level. The target customers
generally for this model are usually in a successful market of competition.
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This model is one of the most strongest an influential cars designed by the company and it has
many different elements which makes it into the list of several customers as their buying
decision. Some of these elements are mentioned below:
Pre-purchase: this is the basic first step which every person makes and things before that
is how much of this product is in their need. Generally this is always identified by doing a
proper research in market and collecting data about several different products there
substitutions and their moderate availability in the market. After all this research is
completed a proper alternative is provided to them with bifurcating all these brands by
their features and price. Once all this is done the colours the size the offers all these will
be e analyse properly by the customer and then only they will make a purchasing
decision. Volkswagen has several different features and has always been updated in their
key technologies and promotional activities. They have always provide it good
supporting cars which have been long lasting for several years and this has maintained a
really good image of them in the market (Liobikienė, Mandravickaitė and Bernatonienė,
2016).
Purchase: this is the most crucial step where a consumer has to take proper decision of
recognising what is the basic need of them through which they will be making such
buying decision. It’s very important to complete all the names of the customer and in
addition give them a proper purchase product price which they can analyse and take out
information which will help then making the best selection choice. Looking at all these
things one can make a final budget of purchase and if this budget is as per the
Volkswagen ZX4, then it is purchased and a maximum level of satisfaction is received.
Receive: this step comes after the purchasing of the customer has received the product
which is been satisfying his need to the most maximum. All this includes the delivery of
the product is made the general requirement of payment to make them happy customers.
The target always is to satisfy the customer at each step which includes the delivery the
payment and post delivery feedbacks (Venkatraman and et.al., 2015).
Post purchase: this is the final step which is taken by the customer in making a buying
decision and this includes their experience and their capability of purchasing. This is
generally helpful for the company as well when a good feedback is received from
customer. This helps in increasing the profits and share price in market. the stakeholders
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are impressed by all these things. In case a customer has received this Volkswagen model
and provide them with the very good feedback then they shall increase market price and
make it more important in nature.
Therefore if any customer is buying or making an effective decision this will directly attract
them in their purchasing power and product plus identifying all their needs which will help them
in analysing their purchase product.
Some factors which are directly associated of making decision levels of customers are explained
below:
Extensive problem solving: this problem arises if the customer does not know so many
branch for the attributes of any general product then this problem will make them take a
decision of having a properly maintained high class model car which is actually
Volkswagen ZX 4.
Limited problem solving: this is the case scenario where a customer shall get familiar
with the product brand and this will always help them in their purchase product. There
are mainly day to day used product like several clothing cosmetics which can help them
making a correct decision. the purchasing product goods are generally involved in a
moderate period which involves proper maintenance of class brand and alternative
product.
Routine response behaviour: this is generally considered as a situation used by the
consumers for having a proper purchasing power at a very low price this is generally
known as the response behaviour. Search customers can have a proper fast decision
making and this will also make the price.
P2 Importance for marketer in order to map a path to purchase and understand consumer
decision making
The path map is actually a journey map which is usually used by all the customers for
making a correct decision in the mapping considering the fact that such products attracts a
customer. This part generally starts from customers making research about the product, then it is
the responsibilities of the marketers to give the correct and healthy information which will
influence them in making a stronger purchasing decision towards the product of company. There
are several factors which are involved in understanding this decision making of customers since
the requirement which are generalized have to be satisfying in nature (Ghose and Todri, 2015).
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For example if the target market which is set by Volkswagen in the purchasing decision to
purchase this model then they have to increase the proper living standard and the satisfaction
level. Just as a case scenario if the marketer is going to provide the basic necessary information
such as the colour, technology, features, capacity, price and all the features which will help a
customer in making the correct decision of purchasing car.
There are some particular factors which influence the decision making and some of them are
mentioned below:
Economic factor: this is the foundational factor which always influences any customer in making
a purchasing decision. This is involved in in people who cannot afford the car or do not belong to
search starters that they would think of purchasing this model. It is very crucial for the marketers
for giving a set of rangers in price as well so that customers can easily afford these cars. The
marketers of Volkswagen should always set a very affordable price of ZX 4 so that the customers
can get attracted towards purchasing it.
Personal factor: this generally is related to the income source, lifestyle maintained, age,
profession belonging from, needs required by the products and many other features which are
related to the decision making power. this also can become one of the most biggest factor for or
influencing the customer.
Social factor: this factor is generally related to the people the customers are referred to which can
be their friends, their group of social media networking, their family or any other person who are
related to their lifestyle. Volkswagen has really use targets and standards maintained which
always portrays it as a high class purchasing brand and influences many type of people with
different set of behaviour.
There are some very important factors which directly influence the decision making some of
them are mentioned below:
Technology: generally this is considered as a very risky + attractive factors which influences a
person to purchase a product or service. It’s important for marketers to give the correct
information which is related to the actual reality of the product and how does it function and its
several facilities which are advanced technologies and how such technologies are helping
customers in their day to day life. this is how one can convert technological used in to making
them think as per their needs of their lifestyle. This generally also helps and creases the customer
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cost and social media influence. Plus the information which will help in making the customer
purchase the product.
Marketing mix: these factors have always influenced and are one of the basic elements of
purchasing decision of any customer. This includes the product, price, please, promotion. The
marketers had Volkswagen have to give property details of all these elements which directly help
them influencing many customers.
Task 2
In order to attract more customers towards products and services an organisation is using
effective marketing methods. In this aspect, marketers plays a crucial role as they are liable for
evaluating the demand and needs of the people and operate their activities accordingly in terms
to attain their higher satisfaction. In the business environment, two types of business processes
are available which helps the business organisation in achieving higher sales and profitability.
First B2B, which stands for business to business transactions other B2C in which a firm is
offering their products and services to the customers (Zeugner-Roth Žabkar and
Diamantopoulos, 2015). As Folks wagon company is a multinational organisation which is
leading their business in auto mobile sector by manufacturing luxury and sports car. They are
taking their decision on the concept of B2C as they are direct dealing with customers. If this
company will utilise the B2B approach then they have to make transactions with other
organisations to enhance the sales of its branded products. For example, Folks wagon seeks to
increase their sales percentage by 10% within 2020 by offering luxury and sports cars. This
formation will helps the business organisation in completing their target in short duration of
time. Hence, these both business process have huge significance for the organisation to make
effective decisions and earn higher profitability and sustainability. Here are defining some points
of B2B and B2C comparison:
Basis B2B B2C
Meaning B2B process give focus on making
transactions among two business
entities.
In this process, products and
services are direct deliver to the
customers.
Customer The customers for them are other Customers are generally end user
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organisations or businesses. or consumers.
Focus It give their focus on maintaining
relationship between two
organisations.
The main focus of them on selling
products to customers.
Relationship Provider – Manufacturer
Manufacturer – Wholesaler
Wholesaler – retailer
Distributor – Consumer
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Creation of Brand
value
An appropriate and mutual
relationship helps in creating
effective brand image.
Herein, advertisement and
promotion method is taken into
consideration for enhancing brand
value.
P4 Evaluation of different approaches to market research and method of research used for
decision making process
Researching the market is a very essential element which shall be done by all business
organisation, this generally helps in taking out the needs and desires of target market and can
help in introducing the product as according to their needs (Shavitt and Cho 2016). This can be
generally considered after the target market and the customers are organised properly. B2B e
research generally stands for correctly analysing the perfect needs required in the business which
will be helpful for getting information and introducing the product. B2c is a general research
which is done for acquiring the needs of customers and making them satisfied while properly
selling the product in a qualitative way. These both researches generally involve the following:
Qualitative approach: this is a method which is generally understood by all the human
beings and it is influenced by the social behaviour of making a particular decision. This
approach is used in B2B for making the correct marketing research relevant to all the
gathered information of the right decision making theory. Qualitative approach is actually
involving many kinds of observations and collecting data through service in the context
of Volkswagen. After such approaches used does ZX 4 model can be launched in the
market as a good thought of information will be collected and after this proper research
many threads which might hinder the company in getting success shall be removed
previously only (Daugherty Hoffman and Kennedy, 2016).
Quantitative approach: this general information is used as a numerical form of collecting
data this has a b2c market research influencing through the service, samples, question is,
many observations which are answering the right decision making power. Volkswagen
can get there are interested customers through collecting the starter and all the marketing
team can set a different approach of launching the product.
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sssFor conducting correctly B2B and b2c there is a proper research approach which is
provided by Pareto and set many principal related to it. The effectiveness of this principle can
cover of several concepts which are mentioned below:
Set skills: this is generally done to properly conduct B2B and b2c, research is where this skill is
needed the most which is to collect the correct information. Volkswagen can always use such
kind of proper coordinated and communicated skill as several questions which are related to the
brand of target customers can be recognised through this only (Kowal and Roztocki, 2015).
Research methodology: there are several sample surveys and many particular question is which
are actually methods of collecting proper information and launching any product of a company
properly.
Sample size: this generally involves B2B and has a higher level of research for collecting certain
kind of information which is generally related to the challenges which could be faced by the
product.
All these factors are very important for making customer to properly choose and make the
correct purchasing decision.
Task 3
P5 Marketer can influence the different stages of decision making process of B2B and B2c
In any business environment the marketers have to visit the market personally and
analyse general needs which are required by the business and what the customers actually
require. Volkswagen has a very influential market and have always influence the decision
making of B2B and b2c since they have always applied a behavioural and a particular the theory
which is known as cognitive learning theory which is given below:
Behavioural learning: this theory is generally very much objectifying in nature and has
many activities involved in it. This basically States classic condition which will have to
understand the decision making power of any customer. This can be understood by a
simple example, Volkswagen is very big manufacturing company of cars which has
always consistently provided a good technological support in maintaining a Goodwill in
market. Having this factor has not made it lose trend in the market or not be a fashionable
product. They have always maintained a very positive image towards the product and
then only they can influence people to actually purchase it (Drever and et.al., 2015).
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Cognitive learning: this learning is basically the theory which explains proper acquiring
knowledge related to the company. This has been done by encoding, storing and
transferring all the mind-set related to business for creating the correct decision. All the
information collected over here is as per the needs of customers and then only such kind
of product is launched in market so it looks exactly fulfilling the needs of customer. This
has helped Volkswagen sell products and there will be no as such issues in launching this
new model as well (Lantos, 2015).
CONCLUSION
From the report which is mentioned above it can be summarised that consumers have
always preferred the organisation which has created a decision making information in market.
Any organisation gets attracted by launching a new product giving out a new service, making
customers analysing and identifying their needs and collect information. This will be directly
new in unless and until the correct products purchased with the proper satisfying and experience
level. this is to make all the technological changes and the marketing mix will help the marketers
for making the customers take the decision. B2B and b2c will properly influence the decision
making procedure.
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