Toyota Lexus in Singapore: A Report on Consumer Behavior & Marketing

This report provides a detailed analysis of consumer behavior in the context of Toyota Lexus in Singapore. It begins with a situation analysis of Toyota Motors Manufacturing Company, including its background, vision, mission, market share, and marketing strategies. The report then delves into the factors influencing consumer behavior, such as personal, psychological, and social influences, illustrating these with examples related to Toyota Lexus. The consumer decision-making process is elaborated, and the report incorporates SWOT and PESTEL analyses to evaluate the market situation. Finally, the report recommends effective marketing strategies based on the 4P's to positively influence consumer behavior and achieve a strong competitive advantage for Toyota Lexus in the Singaporean market. Desklib provides access to this and other solved assignments for students.

Running head: Marketing Consumer Behavior 1
Marketing Consumer Behavior
Student’s Name
University
Course
Date

Marketing Consumer Behavior 2
Executive Summary
This a report describing more about the consumer behavior in the marketplace. This document
will outline the consumer behavior based on the Toyota Lexus in Singapore as the brand under
consideration. The background of the organizations is discussed including the vision and
mission, market share and market strategies in place. The influence of consumer behavior is
explained in details, these factors include Personal, Psychological and Social factors. These are
the main influence of consumer decision making towards all product. Consumer decision making
is well elaborated using the viable example of Toyota Lexus. Finally, the organization is
recommended to use effective marketing 4P's to influence positively the consumer behavior and
also, have a strong competitive advantage in the marketplace.

Marketing Consumer Behavior 3
Table of Contents
Table of Contents.......................................................................................................................................3
Introduction...............................................................................................................................................3
Situation Analysis of the Company..........................................................................................................4
Company Background..........................................................................................................................5
Vision Statement....................................................................................................................................5
Mission Statement.................................................................................................................................5
Market Situation....................................................................................................................................6
SWOT Analysis......................................................................................................................................6
PESTEL Analysis..................................................................................................................................8
Target Market Description.......................................................................................................................9
Target Market Decision Making Process.................................................................................................9
Social Influence on Buying Behavior.....................................................................................................10
Psychological Influence on Buying Behavior.........................................................................................10
Personal factors influence Buying Behavior..........................................................................................11
Marketing Strategy Recommendation...................................................................................................11
Conclusion................................................................................................................................................12
References................................................................................................................................................13

Marketing Consumer Behavior 4
Introduction
Consumer behavior is a very important factor which every organization should analyze in the
marketplace. Analyzing and examining consumer behavior will add and improve marketing
advantage of the organization towards the business decisions, therefore, meaning this is a very
vital concept to put under the study on marketing trends. However, consumer behavior can be
described as, the purchasing decision which is made by individual, group or organization
towards purchasing a service or product in the market (Hartmann, Apaolaza, & D’Souza, 2018).
All these decisions are towards to fulfill the desired needs and wants of the product and service
from a certain organization. Studying consumer behavior is very important for an organization
since it will help the organization to identify new and potential opportunities in the marketplace
which have not utilized. Also, this study of the consumer behavior will help the business to have
a clear knowledge on how the potential consumer will behavior when new product or service is
introduced in the market.
For the organization to understand consumer behavior full, it should be able ready to identify and
analyses the factors which affects the organization. These factors include personal, psychological
and social factors. Consumer behavior model also is used to help the organization to achieve
these objectives in the marketplace.
This report will discuss more on consumer behavior towards a certain product in the market.
Toyota Lexus is the product to be discussed in details using SWOT and PESTEL analysis in the
consumer behavior. All this will be based in Singapore (Kamiura, 2018). Toyota Motors
Manufacturing Company is the Business organization to be under consideration since is the main
producer of Toyota Lexus in Singapore.

Marketing Consumer Behavior 5
Situation Analysis of the Company
This is the analysis which helps the organization to understand the consumer and the market in
more details including their available products for the customer. Situation analysis in this report
will provide company background information, mission and vision statement of the company and
the market state inform of market share.
Company Background
Toyota Motors Company limited is the manufacturer of automobile products over the world. Is
amongst the leading Companies in this industry of automobile manufacturer, therefore, having a
large market share (Suga & Miyata, 2018). The company initially was founded in Japan in the
year 1937 before it starts opening branches all over the world. The company's products are
always superior in the market since the company is used to produce are well-designed vehicles
with long-lasting engines. This factor makes the company to have a large and competitive share
in the market. The second largest branch after Japan Toyota is located in the United Kingdom, all
these branches of Toyota Company produces products for their own country and export the rest
outside the country (Lee, Cartabiano, Hatake & Hokao, 2018). The company produces many
brands which are trending in the market, including Toyota Lexus in Singapore.
Vision Statement
This is the statement which declares the organization's objectives and goals aiming to achieve
and offer guidance towards the organization decision making. This statement displays a clear
information of the organization inspiration to the short-term and long-term objectives which the
organization desired to achieve (Bowen, 2018). The vision statement of Toyota Company is
based from the origin country which is America, but later on the company expanded globally
where the same vision is being used. The statement state that, "To be the most successful and

Marketing Consumer Behavior 6
respected car company in America”. Finally, the company is the success and respected globally
including Asia, Singapore.
Mission Statement
A mission statement is a statement which provides a short-term goal of the organization. This
statement describes the general purpose of the organization through the identification of goals
and operations of the organization (Engel, 2018). Other fundamental matters are discussed by
this statement is the primary product, service, and customer of the organization, including the
market share. Toyota mission statement states, “To attract and attain customers with high-valued
products and services and the most satisfying ownership experience in America”. Customer in
Singapore enjoys the same advantage as the company as stated in the mission statement, high-
valued and satisfying products.
Market Situation
This is how the market environment have impacts on the Company performance. The company
have a strong influence on the market since in its industry of automobile, is amongst the
companies which own largest market share. This is enough evidence that the company has strong
marketing strategies for the product and the market. The company's strategy is, to produce
quality brands like Lexus which are satisfying the customer needs. This strategy is achieved by
the company by producing high architect and innovative product with a unique strong engine in
the market (Visser, Schoormans & Vogtländer, 2018). Toyota Lexus is not the only brand in the
market concern car vehicles, many are existing from other companies like Daimler-Benz. Toyota
Lexus from Toyota faces stiff competition in the market but finally, it remains more competitive
because of its quality.

Marketing Consumer Behavior 7
The market situation is analyzed and evaluated successfully using SWOT and PESTEL Analysis
tools.
SWOT Analysis
The SWOT analysis helps to identify and understand the organization product’s Strength and
Weakness in the market, and Opportunity and Threat behind it in the marketplace performance.
SWOT analysis affects the internal performance of the organization. The following points are
SWOT analysis details of Toyota Lexus brand in Singapore as product and as the whole
organization (Groening, Sarkis & Zhu, 2018).
Strengths
- Toyota Lexus is a strong brand in the market, therefore, improving the image of the
organization.
- The local and global chain of supply is strong. This improves the availability of the
product in the market.
- This brand displays strong innovation ability of the organization in the market.
These strengths of the Toyota Lexus enhances it to have a strong competitive advantage in the
market locally Singapore and globally.
Weakness
- The brand only is focused on one category of the vehicle, which is cars.
- The organization culture and structure is weak in the market.
- The brand is only focused on the high economic class customers.

Marketing Consumer Behavior 8
The weakness of the brand should be minimized and maximize the strengths since this will
enable the brand to penetrate in the market and win large market share.
Opportunities
Both opportunities and threats are focused on the external trends of the product in the market.
The opportunities include:
- Toyota Lexus is growing as the way the market opportunities grows.
- Fuel efficient for an automobile is increasing demand towards the brand.
- Increasing vehicle interest in electronics which are advanced in technology.
Threats
The main threat of the brand is from competitors. These threats include:
- Low-cost competitors which are progressively growing in the market.
- Competitors are innovative and creative in the market.
This tool of SWOT analysis it will make the management of Toyota Lexus being able to make
flexible decisions making toward solving a problem.
PESTEL Analysis
PESTEL is another tool of analysis which is used by Toyota to analyze the market. These are
political, economic, social, technological and legal factors influencing the market (Moses &
Ambrose, 2018).
Political factors. These are factors which affect the product due to the political condition of the
country. Toyota Lexus is favorably influenced since is the treading car in the country.

Marketing Consumer Behavior 9
Economic factors. These are factors like the exchange rate of currency, inflation, economic
factor in the industry like tax rates.
Social factors. The consumer influence of the brand is increasing in the industry since the target
customer is experiencing positive altitudes and believes towards the brand.
Technological factors. The brand is highly affected by the current creativity and innovation in
the market. The brands are highly designed and developed according to the new technology.
Environmental factors. These are natural environmental catalyst surrounding the consumer. For
example, environment pollution and droughts affects consumer behavior in the market. These
factors always affects the consumer decision, for example, if the geographical landscape is not
good to enhance smooth movement of the Toyota Lexus in the area, the buyer will not buy the
brand.
Legal factors. The government regulation and policies influence the brand in the market. The
industry standards are cumulative and favorable in the market of Toyota Lexus.
Target Market Description
This is the market segment which the brand is aiming to capture in the market. Target market
helps the product in the market to trend since is the specific section held in the market about the
product (Cavusgil, Deligonul, Kardes & Cavusgil, 2018). The brands have influenced all
categories of individuals in the market regardless of the following factors: demographic,
Behavior, Psychological and geographic. Considering all these factors in the market, Toyota
Lexus is a successful brand to achieve all the target market.

Marketing Consumer Behavior 10
Demographic factors
This includes factors like age, sex, income and education of the consumer. The customers having
age 25 years and above is a grown up and can purchase anything including Toyota Lexus only if
is able. The price of Toyota Lexus is influenced by the customer’s income level, who belong in
the range of $5,000 and above are able to purchase, since the brand is somehow expensive. Male
is the favorable gender by the brand design, therefore, decision making of purchasing this brand
is based specifically on men only. All this is based on the Singapore population.
Psychographic factors
These are factors which segmented the market using customer’s life style, personality and any
other related factors. Consumer with high class economy and the personality traits are of good
perception of the brands always purchase the brand in Singapore. This brand is focusing people
with stable life style in Singapore.
Behavioral factor
This factor targets the consumer behavior of purchasing power. The brands targets the customer
who are loyal in buying other types of vehicle brands in Singapore. These are people who have a
strong purchasing decision when it comes to the expensive products in the market.
Geographic factor
The target consumers of Toyota Lexus was based on the geographic location. Is important to
consider this when launching a new product in the market. In Singapore Toyota Lexus aims the
consumers who used to live in towns and other urban areas and not in the rural areas.

Marketing Consumer Behavior 11
Target Market Decision Making Process
Toyota Lexus is highly affected by the decision and behavior of customers in the market. The
following are decision making processes towards the brand in the market (Smith, 2018). Steps
include:
1. Need for recognition. Need is the factor which first triggers the consumer buying
decision. What is the need for purchasing this Toyota Lexus brand?
2. Gather of information. This step helps the individual to gather information related and
required to buy the brand of Toyota Lexus. This information can be found from personal,
commercial and public sources.
3. Evaluate and analyze collected information. This helps the potential customer to have
several alternatives towards the brand. This enabled the customer to have several tastes,
needs, and pocket.
4. Purchase the product. After the customer is contented with alternative choice finally,
the customer purchases the brand (Toyota Lexus).
5. Post-purchase evaluation. This occurs after the product is purchased. This enables the
customer to evaluate whether the brand is useful and it fulfills the customer’s needs. Is
the customer comfortable in using this Toyota Lexus in his life?
Social Influence on Buying Behavior
Social factors like family decisions always affect the buying behavior of the potential customer.
Family decision. For example, once an individual is deciding to buy a Toyota Lexus for family
usage, he/she must involve all family member in this decision. Due to the different decision idea
from each individual, finally, the family can agree to purchase or not because of their reasons
(Zahid, Ali, Ahmad & Amin, 2018).

Marketing Consumer Behavior 12
Social class has affected consumer behavior. If the product negatively affects the individual
social culture, the means decision making towards buying the product will be hard (Motyka &
Andrzejewski, 2018).
Psychological Influence on Buying Behavior
Perception. This is an external feel of the consumer towards a certain brand. If the consumer has
a bad perception of the product obviously he will not buy it and vice versa. This aspect affects
more decision making toward purchasing the product (Puccinelli, Grewal & Avnet, 2018).
Motivation. Is the customer has been motivated by the brand in one or the other? If the brand
motivates the customer to buy it aiming to fulfill the need, this will be a good motivation.
Therefore, this will encourage the consumer to make a strong decision towards purchasing that
product (Principato, 2018).
Personal factors influence Buying Behavior
Personality. This is the internal influence of an individual towards the interest of the product.
The trait of each customer is different from the other, therefore, affecting the buying behavior. If
the personal characters of the individual like the product automatically, this improve the
decision-making process in purchasing the product (Trotta, 2018).
Age. This is a very crucial aspect influencing the consumer behavior. Age bracket limits the
decision making of the individuals towards certain products. For example, a child of age 5 to 10
is not able to buy Toyota Lexus using his own money even if he likes the brand.