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MBA404 Consumer Behaviour and Marketing Psychology - Kaplan Business School

Question:

Choose "CAR" as a product

Critically analyse and understand the driving forces of perception, attitudes, motivation, group and individual differences, culture, family and lifestyle that influence consumer behaviour and consequently consumers' purchasing decisions.

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Solution:

A Report on "Car Purchasing Behaviour"

Purpose

"Car Purchasing Behaviour"
Purchase behaviour of any consumers varies from one another and is dependent on varied factors that are majorly associated with the surroundings, perceptions, as well as experiences that have been gained by the consumers over the year. It is of high importance for the consumers to have appropriate knowledge regarding their own needs and requirements prior to making any kind of purchase associated with the product (Khanand Rahman, 2014; Klöckner, Nayum and Mehmetoglu, 2013). There are several processes that are associated with the decision making processes of an individual that results in the final purchase of the item that is being considered by the consumer. The various stages that are associated with the purchase of any product encompass, need recognition, information search, evaluation of alternatives, purchase and post purchase evaluation. These are fundamental stages that are required to be followed by any consumer prior to making their purchases (Dumitru, 2015; Rani, 2014). This is applicable for all kinds of products, including cars.

The purchase of the cars is associated with varied intentions and interests of the consumers. It is important to keep under consideration that there are varied features and associated aspects that are considered by the consumers while making their decision for purchasing the car. It is important to understand these aspects that motivate the consumers in making purchase of the car so as to determine their purchase behaviour. The current study has been conducted by keeping under consideration these aspects, so as to determine the actual motivating factors that encourage the consumers to purchase the car of their choice. For achieving the desired results, a survey was conducted with the questionnaire that comprised of the questions that ranged from open ended questions to close ended questions, as well as questions with Likert scale response. These questions have been developed such that the fundamentalaspects that encourage or influence the decision-making process of purchase of cars can be determined.

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Administration Process

The survey for the current study has been conducted between the time period of 5th May 2019 till 15th May 2019. The development of the survey was achieved with the help of the application of Survey Monkey that simplified the process of conducting the survey with the help of simple tools.

For achieving the desired results to initiate the survey, firstly, an account was required to be created in the Survey Monkey app using an existing email address. Upon creation of the account and its activation, simultaneously, a questionnaire was developed with specific sets of questions that are in coherence with the identification of the purchase behaviour of the cars. These questions were then added to the survey page of the Survey Monkey to create the survey and its survey link. This survey link was then sent to the target populations via two methods. One of the methods were to send the invitation to their email address. The other method was to send the invitation through the social media channels and platforms so as to ensure that the same gets dispersed amongst diverse range of consumers who have the required consumer preferences. However, it was ensured that the Australian consumers are only able to participate in the survey, through selective survey participation processes. A total of 15 individuals had participated in the survey and the average time that was taken by the respondents have been estimated to be about 3 minutes.

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Development of the Survey Instrument

The survey instrument, that is the questionnaire of the survey was developed such that the participants are able to answer questions of varied kinds as the questions belonged to open ended questions, Likert scale response questions and close ended questions with singular or multiple responses.

The first question that was developed in the survey questionnaire was a basic demographic question in which the respondents had to indicate the age group to which they belonged to. This ensured that the participants are above the age of 18 years and hence can participate in the survey. Furthermore, the division of the age group also allowed in the determination of the suitability and appropriability of the responses that are provided by them. The question was fundamentally based on qualitative data collection intention and hence was numeric in nature. The first question was "Q1. To which age group do you belong?"

The second question of the survey question was another demographic based question that was aimed towards determination of the gender of the participants. The intention of adding the question was to determine the extent to which the different genders are inclined or interested in making purchase of a car. This question was a quantitative based question as the number of individuals participated in the survey, belonging to different gender can be quantified. The second question of the survey was "Q2. What is your gender?".

The third question was more specific towards the main aim of the study, that is, determination of the consumer behavior regarding the purchase of cars. The question was aimed towards determining the type of the existing care that is owned by the participant and the responses ranged from first hand new cars, preowned cars or the car being their first cars. This would aid in determining the kind of car that the consumers prefer to purchase, thereby aiding in the determination of the type of cars that are mostly preferred by the consumers. This question was also aimed towards acquisition of quantitative data. The third question was "Q3. Which type of car have you been using before?".

The fourth question was developed such that the participants are able to present their opinion based on the responses that coincide with the Likert scale. The regular Likert scale has been used as the tool for obtaining the quantitative data. The fourth question was aimed towards acquisition of information associated with the important features that must be possessed by a car to be eligible for being selected and the selected aspects include comfort, performance, brand name, price, fuel economy, and safety. The current question was functionally, aimed towards determining the major factors that make a car more attractive and suitable for making the final purchase. The question was "Q4.Rate the importance of the following car features as per your requirements (1= least important, 5= most important)" and the aspects that are required to be considered prior to making purchase of any car includes "Performance, Comfort, Fuel Economy, Brand name, and Safety, Price). This was a quantitative based question as well.

The fifth question that has been developed was focused towards determining the options that are considered by the consumers prior to making purchase of the car, which facilitated them in making the decision for purchasing the car. The question was based on collection of quantitative data and therefore, responses have been developed in the similar manner. The question was "Q5. Which of the following options do you refer to before deciding for purchasing a particular car model?" and the options that have been considered for the current study are based on Likert scale and these options included "Word of mouth, Opinion of family, Industry reports, blog of car review experts, and showroom representative suggestions)".

The sixth question has been developed so as to determine if online media is one of the significant modes for the determining the reviews that are associated with the purchase decision making process of the question is aimed towards the fulfillment of a serious question or matter of the modeof individual the question was "Q6. Do you consult for car reviews over online media?". The question is aimed towards collection of the quantitative data.

The seventh question was aimed towards determination of the significance of test drives as an important factor that is to be considered prior to making purchase of any car or it is important while purchasing any car. The question would aid in the collection of the quantitative data and the question is "Q7. How far do you consider for taking test drive of vehicles before settling for a purchase?".

The eight question has been developed such that it would aid the researchers to as to determine if the after sales services are an essential criterion that should be considered by the consumers prior to making purchase of their cars. The question would yield in data that is quantitative in nature and the question is as follows "Q8. How much do consider that after sales service is very much essential to be aware of before buying a particular car brand?"

The ninth question aims towards determining the extent to which the consumer makes purchase of a car with respect to gaining a status of identification on the society and thereby the same being an influential factor in the determination process associated with the sales of the cars. The question would yield quantitative data from its responses and the question is "Q9. How far do you agree to the statement that cars represent the taste and status of their owners?".

The tenth question is an important question as it is an open ended question that would aid in gaining qualitative data that is also important for the current study. The tenth question is, "Q10. What are the other factors, according to you, that you will evaluate for deciding a particular car model?".

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Data Analysis

Car Purchasing Behaviour
Based on the survey that has been conducted, it can be determined that majority of the participants of the survey had belonged to the age group of 20 - 30 years, with 33.33 per cent responding to it, and this was followed by the age groups less than 20 years and 30 - 45 years, with their population being 26.67 per cent each. This implies that the participants have the required knowledge regarding the process of purchase of cars as well as the various factors that are required to be considered while making the purchase.

It can also be determined from the survey results that majority of the participants have been male, with their population being 46.67 per cent, followed by female that occupied 33.33 per cent of the population. As there is very little difference in the population of the male and female population of participants, it is evident that consumers from both the gender are equally interested in making purchase of a car.

It can be determined from the survey results that majority of the participants own first hand car, with their population being 40 per cent, followed by individual who have purchased their cars for the first time and they occupy 33.33 per cent of the population. The individuals who have purchased preowned cars include only 26.67 per cent of the entire participating population. This implies that majority of the population is more inclined towards purchasing a first hand car rather than a second hand car. For another major part, their cars have been their first car that has been purchased and that is an important factor to them, rather that the number of ownerships of the car.

As per the results that have been obtained from the survey, it can be determined that majority of the participants agree that safety features are the most significant features of requirements that are considered by an individual while making purchase of a car and they occupy 46.67 per cent of the total population. The other significant features have been identified to be fuel economy and the comfort and luxury of the consumers as the participants accepting and agreeing to the same include 66.67 per cent and 53.33 per cent, respectively. Fuel economy is indeed a very important factor that should be considered as if the same is not satisfactory, then other options should be considered for making purchase of the car. Furthermore, comfort and luxury that is offered by a car is of significance as well, as this ensures that the consumer is comfortable while using the car and therefore, be satisfied with their purchase. The other significant aspect is the price range of the car and the same has been agreed upon by 40 per cent of the participating population. The other factors that are somewhat significant and considered by the consumers, include the brand name and performance and power, with their presence being 40 per cent and 46.67 per cent, respectively. This implies that these features are important but not that significant as compared with safety features, comfort and luxury and fuel economy.

With respect to the options that are considered by the consumers as reference for making decision for purchasing any particular car, the most preferred mode has been determined to be showroom representative suggestion, with their presence being 86.67 per cent. This was followed by the mode of word of mouth which occupies nearly 66.67 per cent of the participating population and the same indicates thatthe information that they gain from other consumers is significant as well in influencing the car purchase behaviour. This is followed by the factor "opinion of the family members"that occupied 53.33 per cent of the total population, and the aspects "blog of car review experts" and industry reviews hold the least significance of 46.67 per cent as being a deciding factor for the purchase of a car.

It can also be determined from the results that majority of the participants consult the online reviews that are posted regarding any car of the social media platform, with their presence being 73.33 per cent of the overall participant's population and this indicates that the social media is a significant platform that facilitates the decision making process of individuals.

From the results, it can be determined that test drive of an automobile prior to making their purchase is extremely important as the same has been agreed upon by 46.67 per cent of the total participants. Furthermore, 60 per cent of the participants have agreed that after sales service is highly essential and consumers should have the awareness of the same prior to making purchase of any car brand. Moreover, 60 per cent of the participants have agreed to the statement that the cars represent taste and status of their owners, thereby indicating that it is a determining factor of the purchase of a car.

Several other factors have been highlighted by the participants to be the potential cause that encourage them to make purchase of a car or any brand and the most common factors include colour options, seating capacity, shorter delivery waiting time, and spare parts availability.

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Key Findings
From the analysis of the results that have been obtained through the survey, the key findings are as follows:
• Car purchase is preferred by both the genders in an equal manner to a large extent
• That majority of the population is more inclined towards purchasing a first hand car rather than a second hand car
• Safety features are the most significant features of requirements that are considered by an individual while making purchase of a car
• Other significant features have been identified to be fuel economy and the comfort and luxury of the consumers
• The options that are considered by the consumers as reference for making decision for purchasing any particular car, the most preferred mode has been determined to be showroom representative suggestion
• The information that individual gain from other consumers through the social media platform is significant as well in influencing the car purchase behaviour
• The social media is a significant platform that facilitates the decision making process of individuals
• Test drive of an automobile prior to making their purchase is extremely important
• After sales service is highly essential and consumers should have the awareness of the same prior to making purchase of any car brand
• The cars represent taste and status of their owners, thereby indicating that it is a determining factor of the purchase of a car.

Conclusion

From the discussion that has been presented above, it is evident that there are various factors that have the capacity of influencing the purchase decision of a consumer regarding the purchase intention of a car. There are varied aspects that must be followed and considered by the consumers prior to making decision for the purchase of a car as it is very significant investment that is made to be able to enjoy the comfort and fun of their ownership.

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