Table of Contents

Introduction.........................................................................................................................3
Brand Overview..................................................................................................................3
Consumer Behavior Theories...........................................................................................4
Brand Personality................................................................................................................4
5s Brand Personality..........................................................................................................4
Consumer Self-Concept......................................................................................................6
Self and Self-image.............................................................................................................6
Maslow’s Hierarchy of Needs............................................................................................7
Social Needs..........................................................................................................................8
Ego Needs..............................................................................................................................9
Conclusion...........................................................................................................................10
Appendix…............................................................................................................................11
Appendix One.....................................................................................................................11
Five dimensions of Brand Personality Trait................................................................11
Appendix Two.....................................................................................................................11
Maslow’s Hierarchy of Needs...........................................................................................11
Appendix Three...................................................................................................................12
Mercedes-Benz Advertisement........................................................................................12
Appendix Four.....................................................................................................................13
Advertisement of Mercedes-Benz F Cell Eco Friendly Car..........................................13
Reference List......................................................................................................................14
Introduction

The analysis of consumer behavior is now a well-established discipline with its own
journals and learned societies; furthermore consumer research also incorporates perspectives
from a spectrum of long-established sciences such as, psychology, economic, and sociology
(Wells, Foxall, 2012). By analyzing consumer behaviors, organizations will be able to predict
what are the needs and wants of the customers. The main objective of this research paper is to
carefully analysis the brand’s current marketing commutation. Furthermore, the application of
three consumer behaviors theories or concepts to the firm’s marketing strategy in the attempt
to influence, modify, or impact the consumer’s behaviors will be discussed in this paper. To
add on, the support of scholarly articles will explain and critique the theories that are being
used within the brand information.

Brand Overview

Benz & Cie was founded by Karl Benz in 1871 and it is a multinational division of
the German manufacturer, Daimler AG. In 1907, Benz & Cie and DMG, another German car
company, was rivals. Due to economic crisis that happened after World War I, they both
decided on a mutual agreement that allows them to both sell their products under their
original name. After the merger, the name Mercedes-Benz was established. Because of its
eponymous tie to the original founder Karl Benz, Mercedes-Benz was then applied to the new
care models developed in the company. Moreover, as part of the new merger, a new logo was
developed that includes a symbol for each company and also integrate the names of the two
former rival companies. In 1998, Daimler-Benz and Chrysler decided that a combine business
of the two will benefit them. This merger was known to be the “Merger of equals”. However,
in 2007, the two companies decided to go their separate ways. This move allows Daimler’s
car brand, Mercedes-Benz, to have freedom to do what it wants without any distractions from
any other combined companies. Today, Mercedes-Benz is also known to be part of the
“Germany Big Three”, which consist of Audi, BMW, and Mercedes-Benz as the three leaders
in manufacturing of luxury automobiles. To add on, Mercedes-Benz may be known for its
luxury cars, but they also produce buses, coaches, and even trucks. Furthermore, Mercedes-
Benz is also named the world’s oldest continuously produced automobiles line and has
factories in about twenty-four countries all over the world. However, their main headquarter
is located in Stuttgart, Germany. The reason why Mercedes-Benz has such a good reputation
in the luxury automobile company business is because they have managed to maintain a

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reputation for giving excellent quality and long-lasting durability in their cars. Mercedes-
Benz even received a Platinum Plant Quality Award for one of its car models.

Consumer Behavior Theory

Brand Personality

Brand personality can be discussed as the connection of the character traits controlled
by the brand and it can be seen the brand as a person, a brand could be perceived as gender,
age, socio-economic class, psychographic and emotional characteristics (Parameswaran,
2008). Furthermore, according to Schiffman et al. (2011), brand personality can also be
concluded by logo or brand name, style of advertising and price. Brand personality has
provided individuality for a product and to inspire purchasers to react with sentiments and
feelings towards the product or brand. In case of Mercedes Benz, this company should create
a unique advertisement, strong brand, and price to encourage customers to purchase their
brand or personal users.

According to Anatasi (2005), people are buying luxury car like Mercedes Benz
basically is for they own use and the reason for purchasing is to drive the car and receive
attention of other people by looking at the driver and car. Besides that, Mercedes Benz is not
only a minor car with a lively and consideration snatching configuration, it is also an
environmentally friendly car (Samper, 2005) and they sell it to young people who have a
young spirit. In this case, it can be shown that why young people want to buy a Mercedes
Benz. Samper (2005) mentioned it again; Mercedes also invented a sport car to encourage
young man, because being a small car is safer rather than big car and besides that, customers
from thirty to forty years old have their own reason of buying a luxury car like Mercedes
Benz, they think these type of car is more convenient to drive, comfortable for the seats, safer
and classy.

5s Brand Personality Traits

To discuss further, based on Franzen & Moriarty (2009) research, the characteristic
concept approach was talked about in the first segment premise of most personality theory
research. It was additionally the purpose of flight for comparable identification of the Big
Five brand personalities, was created in 1997 by Jennifer Aaker. She was the first to improve
a theoretical structure that gives understanding into the emotional personality of brands in

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USA. She did examination dependent upon the huge five personality traits and the brand
personality also led that brand personality traits also consist of five dimensions, which are
Sincerity, Excitement, Competence, Sophistication and Ruggedness (Appendix One), each
dimension have some several factors.

First, Sincerity is discussed as domestic and cheerful. Second, Excitement is

explained as daring and spirited by the customers. Thirdly, Competence is more discuss about
the reliable of the brand, intelligent and successful of one brand. Sophistication is fourth part,
which is argued about upper class and charming in one brand. The last trait is explained
about outdoorsy, tough and strong which are Ruggedness (Schiffman et al, 2011). In case of
Mercedes Benz, the third and fourth personality trait theories, which are Competence and
Sophistication, can be applied.

Competence theory can be applied in case of Mercedes Benz due to the car being
more luxury and deluxe. The imperative quality of extravagance car is to be the way that it
performs. The capability and the effectiveness of the various cars are known to be one of the
prized qualities for luxury car manufacture. However, when people heard about luxury car,
they will think about Mercedes Benz and how reliable it is as a luxury car, which mean the
product is efficient, trustworthy to customers and it also dependable. Therefore, customers
choose to purchase this type of expensive car (Franzen & Moriarty, 2009). Moreover,
Mercedes Benz is obviously a successful brand that is known worldwide, and this company is
confident that their brand is better than others brands. Hence, only rich people with higher
income are willing to buy this kind of car.

Furthermore, the second theory to support the Mercedes Benz case is Sophistication,
which is the service for customers are perceive as charming, romantic and glamorous
(Schiffman et al, 2011). However, according to Franzen & Moriarty (2009), charming is
defined as smooth and sexy. It can be seen that almost Mercedes sport car can be categorized
as a sexy and smooth car and can also get a lot of attention in public. Besides that, glamorous
can be defined as upper-class, good-looking and distinction. Mercedes Benz can be
categorized into this theory because Mercedes Benz is indeed as good-looking and upper-
class car.

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CONSUMER SELF CONCEPT
Self-concept is the totality of an individual's mind and feelings as objects in reference
to themselves (Schiffman et al., 2011). More simply, self-concept is a view of themselves.
Self-concept will show the subjective thoughts and views about the self than an objective
evaluation of the person (Metha 1999). In this case, self-concept is a unique attitude. Unlike
other attitude of an external object is perceptually products, self-concept is an idea that is
determined by each individual's own.

Self-concept consists of a multidimensional characteristics and also physical and

psychologies attributes and how to interact with a variety of roles that a person should
understand (Metha 1999). Generally, self-concept is defined as concept of a multidimensional
perspective (Burns 1979; Rosenberg 1979 cited in Sirgy 1982). Actual self is how the
individual see himself; ideal self-similar to how someone want to look at himself, and social
self-similar to how someone show himself to others.

Globally, self-attitude such as self-esteem or self-satisfaction has been regarded as a

judgment about the relationship of the real self to be an ideal or social self (Burns 1979;
Rogers 1951 cited in Sirgy 1982). In addition, according to Sirgy (1982) products, suppliers,
and services are assumed to have an image determined not only by the physical
characteristics of the object alone, but by a host of other factors, such as packaging,
advertising, and price.

Self and self-images

Consumer psychologists agree that the most important thing how people define themselves is
based on product and brand (Metha 1999). According to Tucker (1957) individual personality
can be seen through the products used ‘there has long been an implicit concept that
consumers can be defined in terms of either the products the acquire or use, or in terms of the
meanings products have for them or their attitudes towards products’. The brand and goods
have symbolic meanings and certain images. In buying a car would be determined on peer’s
opinion, or the image the consumer hopes to attain in peer’s eyes, usually determines what
brand is actually bought, rather the attributes of the car itself (Benetton et al., 1997).
In this case Mercedes Benz is focused to offer the benefits of security, comfort, and reliability
of the products they sold (Benetton et al., 1997). Mercedes Benz has a luxury image with

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itself will define luxury standards. To add on, image of Mercedes Benz as a luxury car driven
by wealthy and culturally elite until today, and become benefit for Mercedes Benz.

In addition, buying a car with a high price can also serve as a manifestation of wealth.
Wealth and power are interdependent (Haralombus & Holborn, 2000). Buying a luxury car
can be attributed to the need to exercise power and control over others. This may also be
motivated by the desire to achieve and be successful achievements. Almost similar to
Maslow's model, an attitude which affiliate is based on the desire for friendship, acceptance
and belonging (Schiffman & Kanuk, 2004). Owner of Mercedes Benz also can be defined as
such an aspirational group (Benetton et al., 1997).

Factors such as the price and security will also be considered by consumers when
buying a car. Mercedes Benz shows the values of the excess through the attributes of their
products, in this case responsibility. Mercedes Benz will get the full advantage from these
and other things from their advertising. For example is price, this is a criteria which often
symbolizes the quality of goods sold. Besides that, consumer may also consider evaluative
criteria more hedonic in nature, such as the feelings that come after buy the product such as
prestige and status, and excitement when driving (Benetton et al., 1997). Other example of
how Mercedes Benz uses cultural values is through the support of celebrities such as Lewis
Hamilton who is a formula 1 driver. This shows the image of glamor and exciting motor
sport, the aim is to show the similarities between the characteristics of the image of Hamilton
and Mercedes Benz so that consumers will be interested to buy the car (McCracken 1989).
Mercedes Benz may have benefit from affective responses induced by advertisements.

Moreover, according to Bournes (cited in Benetton et al., 1997) Product Brand

Taxonomy, ‘the purchasing of luxury products that portray highly visible brand names, often
reflect a high level of personal influence, predominantly in the forms of reference groups and
normative influence’. Consumers, particularly those conscious of their self-image, rely
heavily upon reference groups.

Maslow’s hierarchy of needs

Maslow’s hierarchy of needs is believed to be the strongest theory which shown the
needs of one individual to survive in their life in a good or even better way (Poston, 2009).
There are 5 needs which build the Maslow’s hierarchy of needs (refer to Appendix Two). The
first level is Physiological needs which consist of food; water; air; shelter; clothing and sex,

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the second level is Safety and security needs which includes protection; order ; and stability,
the middle level is classified as Social needs, affection, friendship and belonging are what
this third level are made of. To add on, there is also Ego need in the fourth level which
consists of prestige, status and self-respect, followed by the last level which is Self-
actualization. In case of Mercedes Benz, they are perceived as a company in which trying or
have been fulfilling the third and fourth level of Maslow’s hierarchy of needs which are Ego
needs and Social Needs (Schiffman et al. , 2011).

Social Needs

Social needs is classified as the third level of Maslow’s hierarchy which includes
factors like love, affection, belonging, and acceptance (Schiffman et al. , 2011).. Mercedes
Benz has been analyzed to be the company which fulfills this need. According to Ashby
(2013), some people do admit that they are seeking out for Mercedes in order to be socially
accepted in the societies. This fact seems to be hard to believe, however, based on survey
conducted by Daimler (2011), 5 out of 10 people are buying Mercedez’ just to be perceived
as a class of people who are able to purchase such class of cars, while another 5 are appeared
to be purchasing Mercedes for its performance and other factors. Hence, in this case the
sense of belonging which includes in the Social needs level of Maslow’s hierarchy of needs
is involved in terms of the consumer behavior towards Mercedes’ products. Furthermore,
based on the following advertisement (Appendix Three), it can be shown that with the tagline
“Imagine the car you have to drive, is the car you want to drive”. This tagline does show that
by purchasing Mercedes’ product, people are fulfilling their imagination and dreams, in
which of course, without no doubt, will increase their sense of belonging and they will feel
like they are a part of in a line of people who has fulfilled their dreams. Furthermore, in
another advertisement, Mercedes Benz has shown that they are willing to target people who
are against pollution and got more attention to the condition of the earth itself. Referring to
appendix four, it is shown that Mercedes Benz’s F- cell is a car which is made to be eco-
friendly and will not contribute into the worsen condition of earth’s pollution. Hence, it
relates with people who want to be a part of the go-green experience. This type of people
will fulfill their needs of belonging to be in a go-green community by purchasing Mercedes’
respective series of go-green car.

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Ego Needs

Ego needs is defined as needs which could take both an inward and an outward
orientation. Inwardly directed ego needs are the needs to show our need for self-acceptance,
self-esteem, independence, success, and personal satisfaction of what we have achieved in
our life. While outwardly directed ego needs, reflects human’s needs for prestige, reputation,
status and recognition of themselves in the societies, so that they will stand out among all the
individuals in the respected societies (Schiffman et al., 2011). In case of Mercedes Benz, the
intention of people fulfilling their ego needs by purchasing Mercedes Benz’s product is
without no doubt, fairly high. It can be agreed so, as many of their advertisement message
and tagline is showing that by having Mercedes’ product in people’s garages, they will have
more self-esteem and prestige, and they will stand out against those who do not have
Mercedes’ in their list of rides. One instances in which that message is shown, is in the
following advertisement (Appendix 3). In this advertisement, it is shown that Mercedes Benz
is a pure attraction, reflected by women gathering and taking pictures of the car itself.
Furthermore, it can be interpreted that having and driving Mercedes’ cars in their life, they
will attract more people. This of course leads directly into fulfilling people’s ego needs, as by
doing efforts in order to be attractive has far been agreed to be classified as ego needs.
However, according to Van Wagner (2009), it can be agreed that there is nothing wrong with
people trying to fulfill or reach out their own maximum potential in self-esteem, as for some
people; in some point in their life they will need a high level of self-esteem to reach the best
out of them. For instance, the level of one individual’s self-esteem could affect their
presentation skill in some point. Hence, having a good self-esteem is needed, and Mercedes
Benz has done a great job in making their perceived value as a company which could offer a
product that could increase and fulfill one’s need of self-esteem and prestige. Moreover, by
using such needs targeted to be fulfilled by Mercedes Benz, this has also reach a different
market targeting compare to any other brands. It is believed that Mercedes Benz is targeting
only middle to high income people, as they perceived that only individuals with middle to
high income are willing or looking to achieve the state of having a high prestige, standing out
among in the societies in terms of status, and having a high self-esteem (Daimler, 2011).

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Conclusion

This research paper has clearly evaluated the theories that Mercedes-Benz used to
influence, modify, or impact the customer’s behavior. In conclusion, with the right theories
and method being applied into the research of consumer behavior, companies such as
Mercedes-Benz will be able to realize what are the needs and wants of the consumer. Even
though Mercedes-Benz is a famous luxury automobile company, some parts of the world may
look at Mercedes-Benz as a “low-class” type of automobile. For instance, today in Singapore,
Mercedes-Benz is also purchased by the older generation due to the fact that some taxis in
Singapore are Mercedes-Benz. Therefore, the younger generation does not want to get
embarrassed by their friends. As the paper mention, ego needs is one of the factors that has to
be considered. However, in parts of Europe, having a Mercedes-Benz will give consumers
the stereotype that he or she is rich. Hence, Mercedes-Benz need to understand the
consumer’s behavior in different markets around the world in order to successfully sell their
luxury automobile.

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Appendix One

Five dimension of brand personality Traits

Appendix Two

Maslow’s Hierarchy of Needs

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Appendix Three

Mercedes-Benz Advertisement

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Appendix Four

Advertisement of Mercedes-Benz F-Cell Eco Friendly Car

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Franzen, G. & Moriarty, S. (2009). The Science and Art of Branding. Library of Congress
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