Consumer Behavior

Introduction As stated by Campbell (1999) consumers are the users who consume products for their need. Consumers consumer and use these products according to their buying capacity and their preference and needs. Consumers look into their needs, decide and go to fulfill their need. They plan and manage their finances. Consumers look into product packaging, check for information, ask question, take inspiration from ads and combine these things to purchase a product.

Murray (2002) mentions that before buying a product or service consumer goes through certain psychological and decision process this is called consumer behavior. Economical factor, Personal factor and social factor are important in deciding consumer behavior. Consumer behavior as defined by Lewin (2004) is the decision-making course and physical actions taken in assessing, obtaining and using of products or services. The purchase decision process is the steps a consumer goes before choosing which products and services to buy. According to Korman & Orland (2001) producers and marketers understand consumer behavior, how consumers think about their product and how to present the product to consumer. Based on their analysis, producers and marketers make their strategy for marketing. However the organisation purchase process is more official process and carried out as per pre-defined policy and norms.

In my understanding we all are consumers. We consume and use several things in our daily life. Before we purchase anything we think, decide and ask, this defines our behavior as consumer. All consumer decisions are based on their income, psychology and social and cultural background. Consumer behavior is very vital in planning the marketing strategy. A company must understand consumer behavior before making any marketing decision.

Objective The objective of this article is to understand the consumer behavior and motivation process. Also analysis of consumer behavior and sources of information for purchase of Water fueled car manufactured by Cosmos Motors. The Company Based in Germany, Cosmos Motors is fastest growing automobile manufacturing company. Established in 1990 company has made long journey for success. Cosmos Motors is known for unique design and concepts in its vehicles. Company had manufactured electric vehicle which was huge success. Companys research and development team strives for new concepts and inventions. As part of their new concept company designed a car that can run on water. A major breakthrough in automobile industry and a concept discussed and tried for long time. Newly designed car uses Hydrogen present in water (H2O) as energy source and runs the engine. Commercially company is successful in traditional cars. Company has its branches in Muscat, Salalah and Sohar. Companys strong marketing team has well planned marketing strategy in the market. Now the major challenge is ahead for launching of this new car running on water. Keeping in mind the new concept and prices of petrol and other things the marketing team has to come up with a plan for launch and sale of new car using water as fuel. What is consumer motivation process? Motivation is the drive or reason for people to go for things. It is a purpose why people take various actions. Motivation is stimulated out of a need personal or social.

Maslow (1965) defined consumer behavior as the psychological and physical actions performed by consumers to buy the products in order to fulfill their needs. He further cites that a need can be defined as a distress condition of human being. It can be causing uneasiness in a psychological or physical manner. Needs decide and motivate consumers to behave. Abraham Maslow (1965) continues to postulate that needs are hierarchically structured and that needs low in the hierarchy must be fulfilled before need higher in the hierarchy become salient. Basic needs are thought to be structured in such a way that the satisfaction or gratification of the lower order needs leads to the activation of the next higher-order need in the hierarchy.

As per Devan (2002) natural or primary needs are food, cloths, house and transport. Where acquired or secondary needs are other needs influenced by comfort, stress, relief, environment and culture or personal reasons. Following diagram explains consumer motivation process:

As

further

stated

by

Devan

(2002),

needs

drive

to

motivation,

which again guides to goal or intentions, finally this concludes to apparent consumer behavior. Subsequently after behavior, feedback has effects on decision and may result in varying consumers motivation. There are a variety of

aspects affecting the buying of consumer such as personal or psychological, cultural and social. Personal factors that affect consumer motivation are age, occupation and lifestyle. Age of consumer decides what motivates consumer to buy. Like married, unmarried, young and old have different motivation reasons. Occupation and income has significant impact on consumer motivation. Consumer having more income will go for more spending and high quality of products. Consumer lifestyle and interest also decide motivation process. Social factors include consumers family status his role and status in the society. While cultural factors are habits of people in country or religion to which a consumer belongs (Devan (2002)). According to Murray (2002), the level of motivation also affects the buying behavior of consumer. Customer holds individual and certain idea and approach regarding different products. Since such idea and approach structure brand image and affect consumer motivation as a result marketers are fascinated in them. Marketers can transform the idea and approach of consumer by introducing and doing special promotions and processes in this regard. In order to design consumer motivation proper research need to be carried on above discussed factors. The consumer motivation is successful if consumers can see a need which a companys product can solve. For a successful consumer motivation, the marketer must set focus on the brand image of the car and company in consumers mind.

The Product: Car Fueled by Water We have been using traditional fuel card that are running on petrol and diesel. Apart from this electric and electric and hybrid cars also have place in market. However a using water as fuel is a unique concept.

Water (H2O) has two molecules of Hydrogen and one molecule of Oxygen. Scientists have been trying to split this molecule in order to get separate Oxygen and Hydrogen from a cost effective source. Hydrogen is very combustible fuel and used in rockets. Cosmos motors R&D team has designed system to take out hydrogen from water and uses it as fuel in car. This car is eco friendly and widely appreciated by all people across the world. Cosmos motor has launched this car in Europe market and looking to launch the same in Oman. Oman is a oil rich Gulf country and there are several company successfully marketing and selling their cars here. Now company has a challenge to launch this vehicle and make consumers motivated towards purchasing this car. Research and Information Any market research involves knowing and having insight of the company, consumer, conditions and competitor. A research is carried on to offer greater customer service & value, which is the primary objective of the company.

In some cases motivational research is used to know unseen approaches, thoughts, discover attitude and feelings. On the basis of the answers received, alteration in the marketing strategy is made and advertising is also reorganized. Competition from other firms and environmental, political and economical conditions are also analysed.

We used primary and secondary research method to gather information and analyse the consumer behavior. We selected Major cities like Muscat, Sohar, Nizwa and Duqm. We gather data of Cosmos motors existing customers , we visited service centers to get data from engineers and mechanics. Also we visited colleges and businesses to cover large amount customer and get clear picture before launch.

During our research we found around 52% working Omani population, 10% Students and 10% businessmen, 2% others and 24% expats.

Working Omani Omani businessmen Students Expats

52% 12% 10% 24% 100%

We also prepared a questionnaire in order to understand & analyze customers. The information obtained was very interesting and was very helpful.

Questionnaire

Do you own a car?

Yes

No

If Yes, please answer the following questions.

Question

Yes

No

1 2 3

Do you have a car? Planning to buy a new car? Have you used alternate fuel cars like electric or hybrid?

Petrol / Diesel cars going to last forever

If there is a car that can run on water, would you Like to buy one?

Are you..? Omani

Employee

Expat Student

Other

Businessman

How long you have been using this car? ___________________.

Data
Question 1 2 3 4 5 Do you have a car? Planning to buy a new car? Have you used alternate fuel cars like electric or hybrid? Petrol / Diesel cars going to last forever If there is a car that can run on water, would you Like to buy one? Yes 7 6 3 4 9 No 3 4 7 6 1

Marketing and Launch of the vehicle Consumer communication and consumer affiliation or opinion is important in making any Marketing Strategy. The marketing strategy is successful if consumers can see a need which a companys product can solve and, offers the best solution to the problem. Advertising media plays very important role in motivating consumer about any product. It creates brand image and give much information to consumer creating

an urge for that product. Extensive and well designed media advertisement is very much require for launch. Before making advertisement strategy we should know

Where to advertise ? What media type to use ?

Roadside hording and shopping malls are best place to advertise for this new car. Also ads on television and launching show at any shopping mall or ground can give an added advantage. We can make use of news paper ads, TV and radio ads sending letters and emails to existing customers. Face-to-face or direct presentation of product is more effective in persuading people to buy any product. Consumers can feel and decide easily whether what someone is presenting has essence or not. Hence it is required to show the best and effective image of launching water fueled car in a proper fashion. We would like to conduct a launch show and test drive campaign at colleges, business and at shopping malls. A promotional offer can be rolled out to attract customers. Like offering lucky draw or some gifts on purchase of new vehicle.

Conclusion Consumers are the individual or a business which finds, purchases and uses the produce provided by a company. Consumer behavior is actions taken by consumers in order to decide, buy and use the products and services to fulfill their needs.

Needs motivate consumer to set goal and buy a product. Initially the consumer thinks and decides what products he would like to buy and consume, later he picks the products that assure better value and usefulness. After selecting the product, the consumer looks into to fianc and value for the product. Finally, he buys the product to fulfill his need. There are several factors affect the motivation and buying decisions of consumer such as personal, social and cultural. Cosmos Motors has come up with a new concept car using water as fuel. The company is successful in traditional petrol and diesel vehicles. Now challenge lies in launching water fuel car in Oman where petrol and diesel are much cheaper and easily available. A research on consumer behavior and motivation is carried and we have come up with a marketing and launching strategy. Extensive media advertisement and direct presenting the product to consumer is the best way to launch new car.

Reference

Campbell (1999), Fundamentals of Marketing, Prentice-Hall Inc: London Murray (2002), Consumer Preferences and Marketing Strategy, Winston Press: NY

Lewin (2004), Consumer Behavior, McGraw-Hill: Harvard Korman & Orland (2001), Principles of Marketing: Modern approach, World Publishing Company: Cleveland Maslow (1965), Theory of Human Motivation, World Publishing company: NY Devan (2002), Analysis of consumer behavior in Purchase Process, S. Chand Publications: Delhi