MKT351: Maya and her New car It is time to Decide on a new Car Maya has been Preparing for the Moment: Consumer Behaviour Case Study, SUSS, Singapore

Case study

Maya and her new car It is time to decide on a new car. Maya has been preparing for the moment when she will finally buy her own car for the first time in her life, but she has waited to break the news to her family until closer to graduation. She now feels that she has done her homework and is ready to discuss her choices with her family before making the purchase.

It all started about a year ago when she was in the last year of medical school. Maya had been thinking about her residency in a city hospital- one that is well-known for her specialty i.e. neuroradiology. Along with moving away from home and fitting into the hospital culture, Maya would have to buy a car. Until now, she has been driving an older model Prius that was given to her by her dad, who bought it new. She likes the car, but she wants to upgrade to a new car when she starts her residency. She has never had a new car and believes that the changes that will take place in her life over the next year will warrant one.

She feels confident in her ability to select a suitable new car. Having grown up in a family that subscribed consumer reports ever since she can remember, she seems well-informed about products, including automobiles. Her parents have always been careful shoppers. They taught her and her older brother how to save money, spend less, and not give in to impulses. Moreover, her dad and her brother are knowledgeable about cars. Her brother, who has just started his private practice, will be of tremendous help in the process. With his extensive toy car collection from childhood, he has been a car enthusiast and is highly knowledgeable about automobiles.

However, her plan has been to go through the car-buying process with as minimal outside help as possible. Maya has done some serious research on the cars she is considering. She has a set of basic criteria, such as mile per gallon of 40 or more, interior (leather only), body type (4-door), no built-in GPS, smartphone connectivity, ample trunk space, low maintenance, minimum 4-star safety rating, ABS system, electronic dashboard displays, smooth handling, manual transmission and so on. Because she is likely to move to a northern city, having heated seats are preferable but not compulsory. She has also heard of other features such as independent suspension, and all-wheel-drive options, but is not quite sure how they would benefit her. At the same time, there are options and features that Maya does not care for: acceleration/ performance, V-6 engine, off-road ability, extended warranty, towing capacity, sunroof, and so on. She realizes that she will never find her ideal car and that she will have to compromise on a few items.

Even though the price is not likely to be a major factor in her decision, she has an upper limit of $35,000 for her car. Maya is not very familiar with the financing options available to her and since she is leaving the nest for the very first time, she is aware that she will have to buy her own car insurance. Despite her accident-free record, she was concerned about her premiums. Because financing and insurance are two areas that Maya is not familiar with, she knows she will need to rely on her family to explain them to her.

Maya is anxious about starting out on her own in a new city, yet with regard to buying her own car for the very first time, she feels confident. She has had the luxury of time since she has delayed buying the car until after her graduation but before leaving for the residency. She has gathered most of her information from magazines and various websites. She has watched a very little TV and thus paid scant attention to the car ads. She is more interested in non-biased sources of car information. Even though she has steered family conversations to include cars, she has not informed them of her intent to buy a new car before her residency begins. She has also brought up the topic subtly with her friends, who have given her a variety of opinions on various makes and models. Her plan has been to first gather information from trustworthy sources, mull over it, and possibly narrow down her options before seeking some assistance from her family.

She has positive impressions of the Prius she has been driving, and she knows she wants an environmentally friendly vehicle. Given the number of cars that fit the description, she knows she has a long road ahead. But her informal discussions with family and friends have helped.

Maya considers herself to be a very logical person and thus is more interested in the functional aspects of the car. The look and feel of the car are important to her, but they are secondary in nature. Her color choices are basic: black and silver. Yet, one aspect of research she has avoided up to this point is visiting local dealerships. Having gone car shopping with her family in the past, she is realistic about her own experience. For instance, she is not comfortable negotiating prices or making instant decisions about certain aspects of the purchase. She plans to take her dad or brother along when visiting car dealers.

Now that she has had a chance to review the information she has gathered, she feels confident about four specific models: Toyota Prius V, Hyundai Sonata Hybrid, Ford Fiesta Hybrid, Volkswagen TDI Diesel. Brands she has rejected for one reason or the other include Chevy Volt, Nissan Leaf, Toyota Camry Hybrid, and Honda Civic Hybrid. Having been involved in her family’s car-buying decision in the past, she knows that she has to also order Consumer Reports’ new car pricing reports before visiting car dealers. Also, given how selective her dad and brother can be about cars, she wants to narrow down her choices before seeking specific brand advice from them. She is sure that they will approve her initial choices.

It’s now a few days after the graduation ceremony. Maya and her family are preparing for her move to New York-Presbyterian Hospital for residency. It is finally time to decide and buy that new car.

Question.1

1A Briefly explain what is meant by a surrogate indicator. Give an example from the car industry.

Question 1B Briefly explain how stimulus factors could be used in marketing cars. Give 2 examples.

Question 1C Create a brief advertising copy to target consumers like Maya. In your idea, use the operant conditioning principle.

Question 1D Based on the case study information, what do you think are the latent motives of Maya to buy a car? Explain why?

Question 1E: Adding new beliefs is one way to change the cognitive component of attitudes. Giving an example, explain how this could be applied to cars.

Question.2

Gender is a powerful demographic variable. Using gender as a strategic tool is common in market segmentation (e.g., Diet Coke for females and Coke Zero for males). Marketers generally develop strategies in terms of product offerings, marketing communications, and retail stores in using gender strategies. Explain how car marketers could capitalize on possible gender strategies in Singapore. Elaborate your answer with examples.

Question.3

You have been hired as a marketing consultant by a car dealership named “Handy Honda” in Maya’s township. Write a report to convince your CEO to discuss how reference group influences could be used to develop marketing strategies for cars to target consumers like Maya.

Question.4

Assume you have been recently appointed as the Regional Marketing Manager for Jeep (or another brand of your choice) in Singapore. What would you do to market it to a market segment consisting of consumers like Maya who tend to short-list Toyota, Hyundai, and Ford? In your answer, consider a range of consumer behavior theories, models, and concepts that you studied throughout the semester.

Question.5

Apply and describe the stages of the consumer decision-making process to Maya’s actions as a consumer.