MBA404 Consumer Behavior and Market Psychology: Toyota Corolla Report

This report examines the market performance of the Toyota Corolla, focusing on consumer behavior and marketing psychology. It analyzes the current marketing communication mix, considering consumer attitudes, group influences, culture, social class, and consumer learning processes. The report critically evaluates the communication strategies used by Toyota for the Corolla, offering strategic recommendations to enhance the product's market position. The analysis covers the competitive landscape, including the impact of globalization and evolving consumer preferences. Recommendations include offering attractive promotions and partnerships with tourism organizations to boost sales and brand value. The report emphasizes the importance of adapting to changing consumer needs, especially among younger demographics, to maintain a competitive edge in the automotive market. The report concludes by highlighting the need for innovative designs and strategic steps to achieve a sustainable competitive advantage.

Running head: CONSUMER BEHAVIOUR AND MARKET PSYCHOLOGY
CONSUMER BEHAVIOUR AND MARKET PSYCHOLOGY
Name of the Student
Name of the University
Author Note

1CONSUMER BEHAVIOUR AND MARKET PSYCHOLOGY
Executive Summary
The main purpose of this paper will be to discuss about the product Toyota Corolla and the
market performance of the product. Apart from this, the present marketing communication mix,
where the attitudes of the consumers, influences on the group, culture, social class, learning
processes of the consumers and their personal decision-making processes in the context of
buying of a particular product or service will be critically examined. Critical analysis will also be
done on whether the communication mix followed by Toyota on the selected product which has
been used in the previous assignments of 1 and 2. Three to four strategic recommendations will
also be provided which will help to empower the strategic position of the organization in the
context of this product. Manufacturing or operational improvements will not be included in the
recommended strategies that need to be followed by the management of Toyota.

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Table of Contents
Introduction......................................................................................................................................3
Communication Mix........................................................................................................................4
Critical Analysis..............................................................................................................................6
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

3CONSUMER BEHAVIOUR AND MARKET PSYCHOLOGY
Introduction
The main aim or objective of this report will be to discuss about the product Toyota
Corolla and the market performance of the product. Apart from this, the current marketing
communication mix, where the attitudes of the consumers, influences on the group, culture,
social class, learning processes of the consumers along with personal decision-making processes
will be critically examined. Critical analysis will also be done on whether the communication
mix followed by Toyota on the selected product which has been used in the previous
assignments of 1 and 2. Three to four strategic recommendations will also be provided which
will help to empower the strategic position of the organization in the context of this product.
Manufacturing or operational improvements will not be included in the recommended strategies
that need to be followed by the management of Toyota. Toyota Corolla, in this context, can be
termed as a line of compact as well as subcompact cars which is manufactured by Toyota Motor
corporation, an automotive manufacturing organization based in Japan. The first model was
introduced way back in the year of 1966, it became the best-selling car within 1974. Not only
this, the model went to become one of the best-selling car models across the world, surpassing
many other models including Volkswagen Beetle. In the year 2016, the organization, which
started its journey in the year of 1937, reached the milestone of selling this particular model,
which was 44 million worldwide. The model successfully sold this model over 12 generations,
while undergoing numerous major redesigns which helped to reach this magic figure. It can be
stated in this context that the earlier models were mostly rear-wheel drive in nature, whereas the
models manufactured later were transformed into front-wheel drive (Toyota.com 2020).
The major competitor of this model in previous years was Nissan Sunny, and Mitsubishi
Lancer and Honda Civic became the major competitors later. The designation code of Toyota

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Corolla is E. The model was subcompact in nature when it was first manufactured, and it hold
this nature till the year 1991, from where the model became compact in nature. The model is
manufactured and produced in many regions of the world, which include India, Canada, South
Africa, Brazil, China, Pakistan, Venezuela, Thailand, Taiwan and Turkey. The model in the
market place of Japan has been exclusive in nature to the retail sales chain, which is known as
Toyota Corolla Store. Several models were manufactured and produced across the world
successfully. The very first model that was manufactured under this brand was named as E10. At
present, the models that are produced include E210, EA10 and EH10. The name of the variation
of the models produced are Hatchback, Station Wagon and Sedan. At present, Toyota Corolla
received superb fuel economy, though reviews have been collected regarding the engine, which
has been recognized as bland in nature. Apart from this, the powertrain is not very engaging. But
keeping all this aside, it can be said that the model of Toyota Corolla has successfully provided a
stable handling and comfortable ride to the passengers or the owners of this car (Ito 2019).
Communication Mix
It can be stated in this context that advancement in the area of technology has changed
the overall buying behaviour of the customers. The management of the organization of Toyota
also uses various kinds of promotional strategies in order to increase the sales of this particular
model of Toyota Corolla. Different media channels are used by the management of Toyota,
which involves newspapers, yellow pages, radio, billboards, television, flyers, brochures, word
of mouth and most importantly – social media. The needs and wants of the people can be
identified through different social media platforms and models can be altered according to the
requirements of the people. One of the most important factors in the communication mix that is
performed is the public relations, which is regarded as one of the most important department in

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the multinational business organizations like Toyota. It helps to maintain the brand image as well
as the reputation of the company in the global automotive market place. Position of an
organization in terms of the brand image and identity of the products or services sold by the
management of that organization depends on the reputation that is possessed by that business
house. Like in this case, Toyota holds a leading position in terms of the brand image and identity
of their model Toyota Corolla to become one of the leading business entities in the global
automotive market place. It can be said in this context that efficient integrated marketing
communication strategies are designed and implemented by the management of Toyota for their
model Toyota Corolla in modern competitive market place. Automotive sector is regarded as one
of the most competitive business sectors in the world and modern as well as innovative ways
need to be used by the organizations to attract the people towards them and buy different models
of car manufactured and produced by them (Khuong and Chau 2017).
The management of Toyota uses various strategies and tools within the market place of a
particular place, for example Australia. It can be said that different social media platforms have
helped to interact with the people. The attitudes of the consumes can be identified through these
social media platforms, where it has been seen that more luxurious and customized vehicles are
demanded by them, and due to all these requirements, the management of Toyota has redesigned
the models of Toyota Corolla and presented them to the global market place according to the
requirements of the people. The young generation of customers, or the millennials are one of the
major targeted customer segments that possess the power to enjoy the advantages of this
particular model of Toyota Corolla. But the communication mix that is followed by the
management of Toyota also possess some negative sides also when identification of the attitudes
of the consumers are taken into account. The communication mix is used and approached only to

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a particular targeted segment, which comprises of people who possess healthy lifestyle and are
highly educated and possess a family where there is more than 2-3 members. It has been
identified by researchers that millennials or the Generation Y are equally important to be taken
into account, and the youngest car-buying demographic across the whole world ((Kesavan,
Bernacchi and Mascarenhas 2013). It has been also found that the needs, requirements, tastes
and preferences of this particular segment also changes at a rapid pace, and they may get shifted
to another brand of the same organization of Toyota, or to a completely different new business
house. Still, the management of Toyota need to find some innovative ways which need to be
followed in order to target this particular target segment and hold them towards the model of
Toyota Corolla.
Critical Analysis
It can be stated in this context that the global automotive market place is highly
competitive. The management of Toyota faces stiff competition from other automotive
manufacturers that are present in the markets where the organization operates and sale their
model of Toyota Corolla. Though it can be stated that the economy around the world continues
to recover from the various issues gradually, competition in this sector has further increased or
escalated among difficult market situations on overall basis (Brown 2016). Apart from this,
competition is likely to increase more than before mainly due to the continuous globalization in
this automotive sector globally, which is resulting in added sector reorganization across the
whole region. The culture along with the social class of the people who are already using this
particular model also influences others. For example, a particular segment who are already using
the different models of Toyota Corolla may provide positive feedbacks to other persons
regarding the usage and value of the car, which is popularly known as word-of-mouth publicity.

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Increased competition, in this context, may lead in decreasing the unit sales of Toyota Corolla,
which may result in a further deep in price pressure along with adversely affecting the financial
condition as well as results of operations of the organization of Toyota (Parente and
Strausbaugh-Hutchinson 2014). The capability of this business house in the context of this
particular model of Toyota Corolla to adequately respond to the current rapid alterations in the
automotive market place and to maintain the competitiveness to gain the competitive advantage
will be essential to the future success of the organization regarding the model of Toyota Corolla
in present and fresh market places along with maintaining the market share for this model
(Moravcikova and Kliestikova 2017).
Thus, it can be said that Toyota Corolla need to follow certain strategic steps which need
to be implemented in the global business environment where the business entity sale this model.
This will help to gain the competitive advantage over the rival institutions along with boosting
the inner work culture that is performed within the company of Toyota. Old and innovative
designs need to be used by the management while manufacturing and producing the model of
Toyota Corolla in the global business environment. It can be said that the model need to be
designed and offered in such a way that it is critically acclaimed, which will help to perform a
sustainable competitive advantage in the global market place.
Recommendations
From the above discussion, it can be stated that there are necessities for strategic
recommendations which will further strengthen the alignment process of this particular product.
This will also help the management of Toyota to gain the competitive advantage over other
business houses. Following are the strategic recommended steps which are designed in the
context of increasing the sales of this particular model of Toyota:

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The first and foremost strategic step that need to be taken is to provide the model of
Toyota Corolla in various attractive and unique offers, so that it will help to attract more people
towards this particular model and ignite the interest level of the targeted segment. This will help
to increase the customer base for the organization, which is one of the toughest factors in the
global competitive market.
Another step that need to be followed by the management of Toyota is to tie-up with the
local reputed tourism organizations, where the model of Toyota Corolla can be used for tourists
to travel from one place to the other. This will totally depend on the overall package of that
particular group of persons, but it can be recommended so that the tourists who will avail this car
can buy it for their personal uses after enjoying the benefits of Toyota Corolla while spending the
time on vacation. This will also increase the value of this model along with increasing the
earning for the organization of Toyota, where this extra earned amount can be re-utilized in
altering the design of Toyota Corolla and make it more attractive and unique in terms of looks
and features and offer it to the global customers.
Another important strategic recommendation that can be followed by the management of
Toyota is to identify new market places, where different models of Toyota Corolla can be
launched and the sales of this particular model can be increased. Identification of new market
places will both increase the overall market share of this particular model along with the
customer base of Toyota, who will buy this particular model and will add value to it.
Conclusion
From the above discussion, it can be concluded that Toyota Corolla Model, being one of
the oldest model of Toyota and serving the customers for a long period of time, possess a brand
image as well as brand loyalty among the customers who are present globally. Though the

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management faces fierce competition from many other automotive organizations like Nissan,
Ford and others in the global automotive market, Toyota Corolla possess the strengths to
overcome the weaknesses. The recommended steps need to be followed by the management of
Toyota in order to capitalize the opportunities that are available in this automotive market place
by eliminating or overcoming the threats that will come in the way of operating their global
business environment.

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References
2020 Toyota Corolla Compact Car | Greater than ever. (2020). Retrieved 8 February 2020, from
https://www.toyota.com/corolla/
Brown, M., 2016. SC2020: Toyota Production System & Supply Chain (Doctoral dissertation).
Ito, H., 2019. Analyzing Toyota City’s eco-policy through strategic marketing tools. Asian
Social Science, 15(4), pp.23-36.
Kesavan, R., Bernacchi, M.D. and Mascarenhas, O.A., 2013. Word of mouse: CSR
communication and the social media. International Management Review, 9(1), pp.58-66.
Khuong, M.N. and Chau, N.T.K., 2017. Factors of Event Sponsorship Affecting Customer’s
Brand Trust and Word of Mouth: A Case of Toyota, Vietnam. Journal of Economic, Business
and Management, 5(2), pp.88-94.
Moravcikova, D. and Kliestikova, J., 2017. Brand building with using phygital marketing
communication. Journal of Economics, Business and Management, 5(3), pp.148-153.
New Cars, Trucks, SUVs & Hybrids | Toyota Official Site. (2020). Retrieved 8 February 2020,
from https://www.toyota.com/
Parente, D. and Strausbaugh-Hutchinson, K., 2014. Advertising campaign strategy: A guide to
marketing communication plans. Cengage Learning.