Assessing The Consumer Decision Process Models Commerce Essay

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Problem recognition is always beginning in the buying process. In this stage, consumers will understand their needs when they want to buy something. For examples, when a consumer needs a car and he or she will automatically concern of every brand of car or make some observation in the highway when the different car was pass by him or her. After their observation, he or she actually understands their needs in their mind is Honda City

Information search

In this stage, consumer understood their needs and starting to do information research in internal or external which is knowledge, experience and attitude toward the product and the external is friends, relatives, website and brochure. Consumer do information search from he or she friend is because they might experience or knowledge in the Honda City car.

Alternative evaluation

In this stage, consumer starting to compare those same range of car in the market. Therefore, consumer go to Honda showroom to have a test drive and know about the Honda City performance, quality and try Honda service ability.

Purchase decision

In this stage, after consumer had evaluate Honda cars and he or she might buy Honda City due to the performance, quality, save fuel, affordable price and paddle shift in Honda City and Honda get high quality service award. This is the final of decision for him or her.

Purchase

In this stage of purchase, consumers already go through all the process and make their decision to purchase Honda City. Therefore, Honda has many dealers in Malaysia. Consumers can find a Honda dealer easily to purchase their product. The purchase of terms involves the price and method of pay. For Honda City price is at RM 85,480 and RM 90,480. Interest rate for foreign car is around 2.7-3.2% and the first payment you need to pay for 10% of the car price. After the method of pay is settle, sales agent need some period to deal with bank with the consumer supporting document to loan with the bank and after the loan is settle sales agent will inform the customer of the car stock. Most probably is within 2 weeks after bank loan is settled customer can get the car.

Post-purchase

In this case, after-sales service is very important for customer to become repeat customer. Honda City is high involvement product. Therefore, Honda Malaysia offer customer who are purchase Honda City for 3 years warranty or 100,000km (whichever comes first) and 6 months free service or 10,000km (whichever comes first) and 2 years warranty or 40,000km (whichever comes first) for battery as well. It can satisfy customer for the service.

PSYCHOLOGICAL CORE

Perception

Exposure

Occurs when a stimulus comes within range of a person's sensory receptor nerves.

Attention

Occurs when the stimulus is "seen"

Interpretation

The assignment of meaning to the received sensations.

Memory

The short-term use of the meaning for immediate decision making or the longer-term retention of the meaning.

There will be Honda City ads for perception in appendix 1. In this ads, I will discuss the psychological core of perception.

What Honda use the slogan as in their perception is Honda is the power of dreams. Honda City is using there's more to the city than meets the eye. Other than slogan, Honda City perception in all the consumers mind is save fuel and paddle shift because Honda City is using save fuel with 5AT and paddle shift. Besides that, Honda City have competitor product which is Toyota Vios. These two cars are in same range. They are also in low fuel consumption car. Honda City using the paddle shift as their perception to attract customers. Paddle shift perception in the consumers is Formula 1 using paddle shift to shift gear.

Honda can use save fuel with 5AT and paddle shift as their product positioning to target customers. In all of the competitors, Honda City is one of the cheapest cars to have paddle shift in their performance and technology.

There are a few marketing strategy at bellowing.

Brand name and logo development

Brand name and logo are important in influences how consumers interpret product features. Honda come out a slogan which is "The power of dreams". According to (Honda website) , at Honda, everyone is encouraged to express and realize their dreams for the collective vision of creating a better and brighter future for our next generation. The meaning of this slogan can present their brand name and logo.

There are a ads for Honda logo at appendix 2.

Media strategy

Honda is stated in high involved with the product category. In this stage, consumer will go to considerable trouble to secure product-relevant information. Therefore, the marketers must find media that the target market is interested in and place the advertising message in those media.

Motivation

I will discuss about latent and manifest motives and mcguire's psychological motives and apply into Honda City ads.

The graph in above are shows that manifest and latent motives in a purchase decision.

Manifest motives- are like consumers actually know their needs and wants then they go to Honda show room to look for Honda City.

Latent motives- consumer are not really know what is their needs, but they only rely on their first feeling toward the car as you can see in the graph. It will demonstrate that I'm successful and it's a powerful, sexy car and it will help make me powerful and sexy. Is about the expression from themselves.

Mcguire's psychological motives

Nowadays, marketers like to use Mcguire's motives to show to consumers because of it can show different motives in an ads. There are an ads in appendix 3 and I will identify what type of mcquire's motives in the ads is showing.

Need for consistency

From the ads that we can see, Honda City with white color. Some Consumers are using Honda in previous car and now he will only stay on their belief and he would like the white color and won't change other color as well.

Need for identification

The Honda City inside the ads shown that who wanted to play in various roles. For examples, a supervisor who drive Proton before when he was a normal staff but now he get promote to supervisor and he want to change Honda City.

Need for expression

This motive is a motive that the consumer would like to show off through the world, to his friends. Honda City is high-involvement product so that some people will buy it and purposely show off to their friends. They just want to express to their friends how rich they is.

Need for ego defense

This motives is that consumer may rely on well-known brands instead of trying other brands. For examples, some consumers are too rely on Honda brand so they could purchase this after they see the ads.

Need for affiliation

This need are develop an relationship from a person to another person. For examples, son study in college but don't have car, after father saw this ads and he wanted to buy Honda City to his son to go study purpose. Some themes as "your kids will love you for it" in advertisements.

Learning

Reinforcement

It defined as positive reinforcement and negative reinforcement. For positive reinforcement, a consumer went to Honda show room to try their service and the car. Therefore, sales agent provide an best service to the consumers and the consumers feels the service are good and the quality of cars are good then he/she decided to purchase it and more likely to select Honda in the next time he/she would like to purchase it. For negative reinforcement, impolite service toward an consumers will make consumers will not repeated their brand in the future.

Repetition

Marketers create ads in commercial and repeat to shows it 4 in a weeks is more useful for customer to learn the advertising message. But if marketers create few ads at the same time in commercial and repeat to shows it 4 in a weeks is not that useful because of customer would confused the ads or feel annoying for the ads or customer will do zipping, zapping or mute for the television to skip the ads.

Importance

Importance - product information are always importance for customer to be learned. Marketers need to create information to expose the product meaning to convey to customer. According to (Hawkins Best Coney 2001) importance might be driven by inherent interest in the product or brand, or might be driven by the need to make a decision in the near future.

Other than that, memory are consist of two components which is short-term memory (STM) and long-term memory (LTM).

Short-term memory

Marketers create Honda advertisement in some magazine but just only for 1 week. Consumers see the ads are only in a week and there are not repeated. Therefore, it will only be stored in consumers mind for awhile after they see the ads it will get lost from their mind. Usually, short-term memory only store in mind 30-45 seconds.

Long-term memory

Marketers create advertisement in commercial have to keep on repeating the ads for many times in a week and not only in commercial, they need to put more in other way such as, magazine, road show to promote their products. If consumers keep on seeing the advertisement, it can store in their mind for life. Therefore, when they need the product they would automatically think about the product and make a decision to purchase of it.

Attitude

Attitude Component Consistency

Affective component

(feelings)

Behavioral component

(response tendencies)

Overall attitude

Cognitive component

(beliefs)

Attitude component

Attitude is feelings or emotional reactions to an object. In other word, attitude can cause positive response and negative response toward an ads that consumer see. For example, beliefs and feeling about Honda with the good impression and high quality service toward the Honda brand. That is positive response for consumers known about Honda but recently we can see the news about Honda recall Civic model from year 2003 and elements from 2003-2004 years for the ignition interlock mechanism problem. That could be negative response for consumers toward Honda brand. Feelings are often result consumers making a decision.

Behavioral component

Honda is recalling their products for repair with free of chargers. These behaviors can be reflect that they are trying to take responsibility of their product in develop their product to enhanced their reputation. Therefore, when consumers want to purchase Honda they might think that Honda have many problem but since Honda is recalling their products mean that Honda is trying to develop their product and enhance their safety oriental, so consumers can be no doubt to go for it.

Cognitive component

A consumer belief is a psychological association between a product or brand and an attribute or feature of that product or brand. Beliefs are cognitive. For examples, Honda get award of high quality service in Malaysia, it can be consumer belief toward their product. And Honda is recalling their product for repairs is their attribute to be consumer belief as well because they are taking responsibility to repair their product and trying to enhance their safety oriental at the future.

Rating for Honda with competitors

Service

Quality

Price

Safety

Overall

Honda

8

7

8

7

30

Toyota

8

7

7

7

29

Nissan

6

6

8

6

26

Mitsubishi

6

8

9

8

31

Kia

5

4

6

5

20

Proton

3

3

4

3

13

Peroduo

4

3

5

4

16

There are some factors may account for inconsistencies:

Lack of need

When consumers are lack of need for a car, they won't go for any information search or the ads of the car. Not only that, consumers may doing zipping, zapping or muting to skip the ads in commercial.

Lack of ability

As what I mentioned in above, Honda is in high-involvement products. Therefore, some consumers may not have the ability to purchase it.

Failure to consider interpersonal influence

Consumers are buying something that they are not likely with it because of influenced by their friends.

Failure to consider situational factors

Consumers are not even known about their finance situation to purchase anything that he wants to have it.

Marketers should think an basic marketing strategies used for altering the cognitive structure of a consumer's attitude.

Change beliefs- Honda is trying to change consumer's beliefs which are manufacture ego-friendly car such as Honda hybrid. It can for their customer to save fuel, to protect green and etc.

Shift importance- Honda are major in their innovative design. Now they come out a new design which is concept M is also called the new Modulo and they using new Mugen body kits for Honda Civic, Accord and Jazz. To make this attribute more importance to consumers.

Change ideal- The early cars in the world are all using petrol and diesel. Now Honda is trying to change the ideal. They are trying to manufacture more eco-friendly technology car to target customer such as Honda hybrid, (Honda jazz in hybrid, Honda city in hybrid ) this 2 hybrid will be coming soon.

Change the behavioral component

Honda now had some recalled problem which is ignition interlock mechanism problem and cause of they are taking their responsibility to repair their product recalled from customers to enhance their safety oriental. It could give consumers have a doubt to purchase Honda. But since Honda get high quality service award, they could pull back some confident from consumers. Other than that, Honda should give test drive for customer to feel the safety oriental and give some road show to promote to consumer. Marketers can give some free gift after consumers come and have a test drive in Honda show room to enhance consumer come and feel the safety oriental of Honda products.

Change the affective component

Marketers use 3 basic approaches to directly increase affect:

Classical conditioning

As we can know Honda is more in innovative design for their product of car. Honda is come out a new innovative design which is concept M to attract more consumers to like it.

Affect toward the ad

Marketers could look for celebrity in the ads to appeals increase affect toward the ads or Honda recruit some modeling for their Honda show car,

Mere exposure

Marketers should make repeated the ads in commercial to show to consumers. For examples, consumer only see the ads in commercial once he won't like it or take it as a memory but consumer can see the ads in commercial so often, he or she will take it as long-term memory and like it.

CONSUMER ENVIRONMENT

PEST

P- Political Factors

E- Economic Factors

S- Social Factors

T- Technology Factors

Political factors

In early of 1950 years, Honda vehicles was introduced to Malaysia by Tan Sri Loh Boon Siew. He is the one noticed the popularity of the Honda when he was in Japan in 1958 and he believed that Honda have a brighten future in Malaysia. Therefore he arranged to meet with Mr. Soichiro Honda. He is Honda founder in Japan. End up, he get the Honda subsidiary in Malaysia in 1958 onward. But due to the Malaysia Honda has overtaken by Toyota as the best-selling car and Boon Siew Sdn. Bhd. lost the distributorship to HICOM Malaysia. And Hicom Holdings (48%), Honda Motor Co. Ltd. Japan (30%), Boon Siew Sdn. Bhd. (19%) and Lembaga Tabung Haji (3%). As what we can see, Hicom had holding high share Honda in Malaysia. Therefore, Boon Siew Sdn. Bhd. had switched to the assembly and distribution of Hyundai cars from Korea.

Political factors include government regulations and legal issues. Every import car into Malaysia have to operate with government regulations. Some examples include:

tax policy

PASSENGER CARS (PETROL ENGINES)

Import Duty:-

   Up to 1799 cc

  140% of CIF (Cost, Insurance & Freight)

   1800 cc - 1999 cc

  170% of CIF

   2000 cc - 2499 cc

  200% of CIF

   2500 cc - 2999 cc

  250% of CIF

   3000 cc and above

  300% of CIF

Import Duty for passenger cars with diesel engines is set at a flat rate of 120% of CIF.

- Sales Tax is calculated based on 10% of (CIF + Import Duty charged)

There is a tax policy in Malaysia for import car at above.

Economic factors

Economic factors affect the purchasing power of customers and the firm's cost of capital. Some examples include:

economic growth

Income rising incomes means that consumer have purchasing power to spend. Honda City is consider as affordable price in the range of Japanese car in Malaysia.

inflation rate

cost of petrol keep on rising in Malaysia and Honda have had to accommodate for the market by introducing more economical cars such as save fuel Honda City and Honda hybrid.

Social factors

Social factors include the demographic and cultural aspects of the external microenvironment. These factors affect customer needs and the size of potential markets. Some social factors include:

Honda is a leading manufacturer of cars. Therefore they increased desirability of personalized cars for customer easily modified, stylistically.

Desire for city cars. Honda had created an sedan and economic cars such as Honda city.

Technological factors

Technological factors show how the trend helps the business

Clever cars have had to include Satelite Navigation systems etc as standard, Honda has had to catch this up in their newer models.

As you can see at economic factors at above, which is cost of petrol price keep on rising in Malaysia. Therefore, Honda has been engaged in eco-friendly technology for a better, more sustainable future. The result of the Civic Hybrid is combining fuel efficiency and eco-friendly technology with fun diving.

Culture

The definition of culture is highly misunderstood and misused, thus the need for an explanation. Now in Malaysia, everyone have their own car. You can see every family have car. Sometime 1 family has 4 persons they might be have more than 4 cars in their family. Therefore, Malaysia culture was like everyone needs the cars. Other than that, when Malaysian think about Honda, they will think that Honda is high involvement car and they major on innovative design to target customers.

Subculture

Honda in Malaysia have a long time history since 1958 years Tan Sri Loh Boon Siew bring into Malaysia. Nowadays, you can see Honda car in everywhere in Malaysia. More people purchase Honda car in Malaysia mean more Honda spare part in Malaysia and you can find Honda spare part in many repair shop. Besides that, more spare part mean Honda car value are high. Something very often can be heard in what Malaysian comment about cars which is Honda and Toyota car are good back up service, good spare part stock you can find in repair shop and good second hand value. So that, most of the Malaysian are strongly support either Honda or Toyota.

Social

In Malaysia, there are few Honda City club created by some Honda City user such as Honda City owners club, team city club and Honda club. The purpose of the club is for those people who own their Honda City or others Honda car to join the club and know more people to share their car performance, car modify and etc. What I see in their club is some member will organize a tea time as a meeting in somewhere to share their car story. Other than that, organizer will organize a trip for all the members to drive their Honda City travel from a place to a place and have their vacation.

Group

Honda comes out with those trendy sporty designs which target those people who are interesting in modified car. And using advertising strategies to attract more peoples to purchase it. Therefore, automatically peoples will use word of mouth to communicate with others to come and purchase it. After a gang of peoples to have their own Honda City, they might create a Honda City team and it only all the Honda City owner can be join the club.

Lifestyle

Nowadays in Malaysia, most of the people like to travel around by using car instead of using public transports. Other than that, people too depend on car because of they go everywhere by using car even they go out for a very short distance place. Therefore, Honda is categorized as a branded car which still cans affordable compare to NISSAN, BMW, MAZDA and etc. Honda City is the save fuel city car as well so Honda is targeting those medium income consumer.

Perceptual mapping for automobiles

Segmentation, Targeting and Positioning

Segmentation

Marketers are likely to use demographic to segment the market through the ageing for Honda. Honda is targeting the age around 25 and above, because for this range of age, they most like innovative design as only Honda will do and their income is around 3k and above in a month

Targeting

The proposed targeting people in the age group of 25 and above with a monthly income of RM 3,000 and above. Because of 25 age and above have the majority purchasing power. Honda city is a save fuel economic car and who have a paddle shift function for who more interest in Formula 1 and who are either officers, household, manager and those person who like to travel or any sales marketer.

Positioning

The image that Honda City creates in the mind of the customers is save fuel economic, affordable car and innovative design. Marketers will look at the perceptual mapping to enhance their product to target customers

Appendix

Appendix 1

Appendix 2

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