1.0        Executive Summary

Consumer behaviour entails studying when, why, where, what and how consumers buy or do not buy a particular product or use a service. It mixes aspects from sociology, psychology, marketing as well as economics. The study of consumer behaviour tries to comprehend the consumer decision making processes as a personal consumer as well as an organizational consumer. It involves analyzing characters of individual consumers like demographics and behavioural variables in attempting to comprehend the needs and wants of consumers.  At the same time, it attempts to examine the influences that consumers’ gets from other groups such as family, relatives, friends and the society as a whole. Relationship marketing is a very important asset when it comes for consumer behaviour assessment since it has a great interest in re-examining the correct meaning of marketing by re-affirming the significance of consumer. A high importance is as well put in customer attraction and retention, management of customer relationship, personalisation of services and goods, customization as well as personal marketing. Consumer behaviour is the process as well as the activities that people are engaged in when they are looking, evaluating, selecting, buying, using, assessing, and disposing of good as well as services so that they satisfy their needs and desires. This paper will try to examine the consumer’s behaviour, thoughts, feelings, experience and expectation in determining of buying a new car. For companies that would like to retain or increase their sales, understanding consumer behaviour is the fundamental aspect. Therefore, after analysing consumer behaviour of a new car buyer, this paper will makes some recommendation for the new car dealer in order to be more sustainable and able to meet consumer’s need, expectation and desires in future.

2.0        Background Information

I drove an Isuzu Trooper since 1989 after my returned from Kuala Lumpur. I married in 1993 and my wife is full time housewife. Due to the nature of my job as Marketing Manager, I need to travel frequently to other towns of Sabah such as Sandakan, Lahad Datu and Tawau. As the body of my car is rusted out badly and the performance of the engine is deteriorating, this car is no longer suitable for long distance travel. Therefore, a new car is absolutely necessary and I decided to buy a new car for myself.

3.0        Distinct Roles of Consumer in Purchase Decision Making

Consumer behaviour is concerning with consumer buying behaviour, whereby the consumer play three main functions as consumer, buyer and payer.

(1) Consumer. Consumer is the actual person that uses the product who could be an individual or a group. For automotive consumer, the final users could be an individual or whole member of the company. After they consume the product, they would give a response or experience of that goods and this can fit into post-purchase behavior.

(2) Buyer. Some authors defined buyer as the person who actually purchase the product or service (1). Basically, buying a car is complex activities, which needs to compare the store one by one, especially, at most of time the buyers will try to drive the car in order to examine whether it is favourable and meet their requirements. To complete this process, the person must hold extensive knowledge, interest, and experience of driving.

(3) Payer. Payer refers to the person who pays for the purchase (2). In my case, although sometimes my wife manages the items of payout, however, I am the only one who earns money for my family. Thus, undoubtedly, the actual payer in the purchasing process is myself rather than my wife.

4.0        Consumer Decision Making Process

There are five phases involved in the consumer decision making process. Those phases involved are listed as below:

1. Problem Recognition

2. Information Search

3. Evaluation of alternatives

4. Purchase decision and purchase act

5. Post Purchase behaviour

Some purchases with high levels of social or economic consequences are highly involved, known as high involvement purchases, such as buying a new car or a new house. In high involvement purchase, consumer will spend a lot of time seeking information, evaluating and making decision. Low level purchases or also known as low-involvement purchases, involve routine purchases such as buying a pair of shoes or a cup of coffee. Irregardless the level of involvement of the purchase, high or low, an individual still goes through the steps of the consumer decision process. However, not all decision processes lead to a purchase. The individual consumer may terminate the process during any stage. Below outlines these steps and how they related to my recent car buying experience.

The first step in the decision making process is when the consumer becomes aware of a significant discrepancy between an existing situation and a desired situation (3). The discrepancy between the existing situation and the desired situation tends to create emerging needs, which may trigger the ideas of purchase. According to Kassarjian and Robertson, the person who suggests the idea of purchase is initiator (4). For example, perhaps a girl realizes that she needs a dress for her party next week; she then would begin to prepare for a possible solution, such as a trip to the shopping mall and buy a dress for herself. In this case, the girl is initiator. She came out idea of purchase a dress. Sometimes, the problem can be more specific such as the girl has her dress but does not have a pair of shoes to match the colour of the dress.  This problem requires a solution as well.  I was presented with a problem of having an old car for long distance travel. A new car will bring me to my destination comfortably, safely, reliably and economically. I realized that I need a new car which meets the features stated.

Faced with this problem, I began the next step of the consumer decision process by searching for my new car. During this step, a search is begun by gathering information about the purchase.  The search entailed internal and external sources of information. An internal search for information could be carried out based on recall of memory, past experiences or generic perceptions of a particular product or service (5). This search is performed first. If the information is not sufficient, then an external search will begin. An external search is the search process which is focused on external stimuli relevant to solving the problem (5). Generally, external information included:

1. Opinions, attitudes, behaviours and feelings of friends, neighbours and relatives. A valuable source of information is through peoples that the consumers interact with everyday. Through general conversations, consumers are able to pick up insights and information on a variety of things which may help in making their purchase.

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2. Professional information provided in brochures, articles, books, magazines and personal contacts. Reading a brochure or catalog on the products or services may provide consumers with information that they wouldn’t known previously.

3. Direct experience with product through inspection or trial.

4. Market generated information presented in advertisements, displays and by sales personnel. For example, at Honda or Toyota dealership, the sales consultant may provide consumers with sufficient information for purchase consideration.

According to Neal C (6), the third method of information search is exploratory search. An exploratory search is not common amongst most purchases as it ...

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