Running Header: CONSUMER BEHAVIOR

CONSUMER BEHAVIOR

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The consumer behavior has been very dynamic in this information age where a lot of

transactions are executed online, and most of the interactions between the potential buyers and

brands are on the web. The internet has meant that consumers can have more awareness and are

endlessly calling for producer responsibility both in the way their production activities impact

climate change and the way they treat their workers etc. Most consumers are increasingly

moving online to make their purchases. Between 2013 and 2016, online purchases accounted for

6.5% of retail sales in Canada and due to the COVID-19 pandemic the number surged (Canada:

E-Commerce share of retail sales 2020, 2017). These changes are prompting companies to act

accordingly in order to respond appropriately to the consumer needs.

In the Canadian auto-industry we have seen the above mentioned being replicated

empirically with a number of car dealers making it possible for buyers to access their product

catalogue online, execute a purchase online and even do most of the paperwork that initially

required them to be at the dealers’ premise at the comfort of their condos. Dealers are utilizing

the exponentially growing video technology to make it possible to show buyers the cars through

video-walkarounds. While a significant number of car buyers are moving online to make the car

purchases, online purchases of such durables still remain a phenomenon that most people are yet

to fully adopt, a research that was done by Deloitte & Touché in Ontario got to reveal that 78%

of people who want to purchase cars still prefer to visit the dealerships to check and physically

test the car they want to purchase as part of the buying process (In 2020, the Canadian auto

industry has learned some important lessons, 2020). This shows the difference in the way

consumers learn and respond to stimuli.

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An apparent paradox is in the way consumers respond to pricing, while sentimentally

consumers are increasingly demanding sensitivity by car producers in regards to how the car they

make pollute the environment, a majority of them will regardless of the fuel efficiency of a car

buy the car with the best price and payment plan (In 2020, the Canadian auto industry has

learned some important lessons, 2020).

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References
Canada: E-Commerce share of retail sales 2020. (2017, January 26). Statista.
https://www.statista.com/statistics/379117/e-commerce-share-of-retail-sales-in-canada/

In 2020, the Canadian auto industry has learned some important lessons. (2020, December 31).
Thestar.com | The Star | Canada’s largest daily.
https://www.thestar.com/amp/autos/analysis/2020/12/31/in-2020-the-canadian-auto-industry-
has-learned-some-important-lessons.html