Marketing-I

Understanding Buyer’s
Behavior
Group Assignment

Group-2
Aboli Wanjari (2017PGP014)
Aditi Rao (2014IPM007)
Ninad Shinkar (2017PGP343)
Pranav Vasant Chaudhari (2017PGP258)
Vishnu Jith (2017PGP425)
The product under our consideration is ‘Car’ under automotive industry which is a durable and stable
product. We have studied purchase of first-hand car. We have interviewed 3 people between the age
group of 30-50 years who have bought a vehicle in the recent past. The interviews were based on open
ended unstructured questionnaire.

1.) What were the triggers of purchase?

The biggest trigger was the need of a new car because the existing car was getting uncomfortable
due to wear and tear. The existing car was a cause of physical discomfort for the driver. Apart
from that, want for an automatic transmission was another key factor for one customer. Further,
a new classy car was desirable. A need for latest technology driven, comfortable, stylish, quality
featured car were the main reasons for buying a new car. Another factor responsible for purchase
is the lifestyle pattern of the consumers. All the consumers have the purchasing power required
for purchasing a car. Moreover, a good car is also a means of representing consumer’s social
status.
2.) What were the stages in the purchase process?
Consumer 1

Trigger - A Financing Showroo Exchange

Budget Research Test Drive Delivery
better car Options m visit deal

Consumer 2 –

Require a Classification & Decision making Close the deal

Budget Categorisation (Research) Test Drive and Pay Delivery
new car

Consumer 3 –
Information Contacted Financing Exchange
Test Drive Delivery
Received the company Options Deal

3.) What inputs were sought in each of these stages?

At the trigger of purchase, main inputs were based on information about consumer’s own
financial state. At later stages, Research was mainly based on internet and advertisements. A
major part of judgement criteria was based on consumer reviews either available on the internet
or through acquaintances. Other sources such as newspapers, blogs, YouTube and magazines
were also found to be influencing customer’s buying decision.
Some factors such as showroom location and ease of after sale services also played a role.
Availability of more variants and extent of customization was an important factor for one
consumer. While buying in exchange for an old car, a substantial component was ease in
paperwork and accuracy in exchange of information with reference to company policies.
 One of the important input was the delivery time which, for each customer was a varied amount
of time ranging from 7 days to 6 months.
4.) Who played what kind of roles in each stage?
A major role is played by advertisements especially on the internet, TV and print media. The
internet plays a key role in the decision making process as potential buyers go through numerous
online reviews, comparisons and videos before reaching a decision. In general the consumers
adjusted their budgets according to the purchasing power aspects.
The online websites helped all two consumers classify the product, categorising the product based
on the information obtained from different websites. The other players in the decision making
process were the Online Car Service Predictors wherein the consumer could analyse the pros and
cons of the product (car), the various specifications –petrol/diesel, colour of the car, performance,
safety rating being the most important. Another major factor that influenced the purchase
decision is the test drive. The agent selling the car has also been identified as an influencer in the
decision making. The agent advertises the positive aspects of the product and emphasizes on
financial services the showroom can provide with respect to the car. Further, at the time of
finalizing the deal, simple financing service provided by the showroom through various
representatives creates an impact.
The customer’s attitude towards the purchase played an important role in the delivery stage. One
of the customers was ready to wait for 6 months for the particular car, while the other demanded
a faster delivery.
5.) Approximately, how much time was taken in each stage?
Consumer 1: 3 Months = 1 month for budgeting and research + waiting period of 2 months
Consumer 2: 8.5 months= 2 weeks for budgeting + 5 weeks of research and finalising the deal +
3 weeks till final payment + waiting period of 6 months
Consumer 3: 10 days=2 days processing (test drive + car purchase) + waiting period of 8 days.
6.) What were the parameters for your selection?
Consumer 1: Comfort level, ride quality was a major aspect while narrowing down the choice.
Consumer 2: The sense of luxury & ‘premium-ness’ was an alluring factor for choosing the car.
Consumer 3: The appeal for a longer car (Sedan) was seen as a desirable trait for selecting the
car category.
 Marketing Implications
Commonalities in the buyers’ behaviour:
 It was observed that the internet and print media like newspaper ads and magazines play a
major role in today’s world in shaping consumer choices. Extensive research is done using
various sources like internet, newspapers, magazines, blogs, video reviews etc.
 We can infer that focus on specific and targeted advertisement tailored for each customer
type is an important parameter in boosting sales of a brand
 All customers seemed to have one common reason for buying or looking for a new car. Car
being a durable product all three customers exhibited similar pattern for selection of cars. The
average cycle time for each customer to buy a new car or exchange the old car for a new
car is 8 years.
 It was observed that the social status associated with owning a premium hatchback or a luxury
sedan was of importance to the customer. Even though cars in similar price range are present
in the market, the customers seem to have an inclination towards certain cars just because they
were marketed as a premium car.
 Though safety was an important factor for all the customers, it was assumed to be an implicit
factor. The thought process was such that; a premium car will have safety features and that
these features need not be added as an add-on.

Differences in the buyers’ behaviour:

 One of the major differences that were observed was the variation in time taken to complete
the buying process. It also was dependent on the delivery time. Some consumers can be more
research focused while selecting, while others can be more spontaneous about buying the car.
In our research, the time variation varied from as low as 10 days to as high as 9 months.
 It was also observed that the starting point were distinct in all the customers and were
dependent on consumer requirement. For some consumers, the starting point can be the
financial state of the individual (consumer 1&2), while for others it can be as simple as a
Newspaper ad (consumer 3)
 It can be implied that more the financing options available in the dealership, the better the
consumer service. This is because it was observed that some consumers prefer full payments
in cash, some prefer down payments and a loan, while others might prefer down payment,
exchange offer and loan.
 There is a variance in requirements and as a result, there is a variance in parameters of
selection between the customers. For instance, in our study, the most important factors for the
three consumers were comfort, premium-ness and class respectively.