Consumer buying behavior in the automobile industry

Buying Behavior

The purpose of the project plan is to identify the behavior of consumers in relation to not only income but also pricing and a number of other factors in relation to the car industry. Effort will also be taken to find the buyers' economy as well as their purchase preferences to the car industry.

Consumer behavior: the Automobile Industry

It is important to note that today, the automobile marketplace is increasingly becoming competitive and in such a competitive environment; only those automobile firms that are able to understand consumer demand as well as shopping patterns and trends are most likely to maintain their profitability. Hence in that regard, the analysis of consumer behavior in relation to a number of variables including but not limited to income and pricing is not only relevant but also timely.

Consumer Behavior in Relation to Pricing

According to Hoyer and Macinnis (2009), a product's price can largely influence a number of decisions a consumer makes in regard to a product's acquisition, usage as well as disposition. It can be noted that the decisions car buyers make in relation to pricing are impacted by a number of things including but not in any way limited to the motivation of the consumer and his or her ability. In regard to motivation, consumers will tend to weigh the price of a car in relation to the savings to be made in the long-term. For instance, Hoyer and Macinnis (2009) note that Toyota presents one of its models, Prius, as a brand that is consistent with the customers need to save money on gas in the long run. Hence regardless of the price of the car, consumers will still view the same in terms of the savings they are bound to make in future (i.e. In terms of fuel). In regard to ability, the decisions consumers make are influenced by the knowledge as well as experience they posses, their style of cognition, information complexity, age and education and finally; their budget.

Consumer Behavior in Relation to Group Influences

Essentially, individuals have variously been described as social animals. It therefore follows that in the course of daily life, decisions people make are as a result of consultations with what is referred to as a reference group. Hence in that regard, a car an individual buys could largely be in reference to this group.

Consumer Behavior in Relation to Information

The information customers possess in regard to a given car brand could go a long way to influence their purchase decision. Here, relevant information includes data in regard to functionality, performance as well as efficiency and cost effectiveness. Information sources in this case include personal experience, commercial sources or inferences from friends and relatives.

Economy and Purchase Preferences to the Car Industry

Every individual consumer possesses preferences for given products availed for sale in the marketplace. This is the case for consumers in the automobile industry. Consumers in this case are relatively informed on the maximum utility possible in reference to the brand under consideration. However, for every individual, the amount of total utility possible will significantly be distinct from that of the next person as a result of the differing tastes and preferences such an individual posses.

Conclusion

In conclusion, it is important to note that an understanding of consumer behavior is increasingly becoming critical for businesses keen to remain relevant in an increasingly competitive marketplace. Based on the competitive nature of the automobile industry, the survival as well as relevance of vehicle manufacturers in this case is largely hinged on not only the information they possess on the behavior of buyers but also on how they utilize such information to position their brands.