Group Assignment 2: Consumer Decision Making
Name of Company: Toyota
Name of Product: Toyota Fortuner
Table of Contents
Topics
a)
b)
c)
d)
e)
Services offered by Company & Chosen product
Types of Customer Involvement
Target Audience
Consumer Buying Process
Influences affecting Consumer Behaviour
Page Number
2
2&3
3,4 & 5
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1. Services offered by Toyota:
Toyota is a Japanese automobile manufacturer, found on 28 August, 1937. Toyota is well-known
name in the field of automobiles. It manufactures superior quality and valued cars, vans and
trucks. Along with this, it also produces automobile related equipment such as car engines and
air-conditioning compressors. In addition to this, this company is also partner with Uber, GM with
Lyft-Fred Beans. Apart from being a well-known name in the car manufacturing companies, it is
also engaged in textile machinery and in this field, they produce spinning machinery and weaving
machinery.
2. Chosen Product:
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Toyota Fortuner is the chosen product for this assignment.
The reason we chose Toyota was because it is a famous brand name to customers with a wide
variety of products from economical price to quite premium price. Also, Toyota is well-perceived
to customers as “safety”.
Consumers identified Toyota Fortuner as one of the best luxury SUVs available in the
subcontinent when it was first introduced. There is no shift in the situation yet. Most of the sales
of SUVs in this sector and even Toyota's own vehicles in the distinct price range have been outsold.
With thousands of people still buying and drooling over this magnificent car, the Fortuner seems
to be one of the perfect SUVs for consumers in recent times.
Fortuner was chosen based on its typical features as below
Appearance and the standard of building go a long way:
Asians are fond of large vehicles. You've got to agree with that. And Toyota delivered just what
the Asians wanted-a big, luxurious and beautiful looking car that will definitely have an effect
once it enters a premise. It is one of Fortuner's big selling points.
A better combination of a powerful engine and decent fuel efficiency:
Under the hood, the Toyota Fortuner houses a powerful and massive engine. Consumers can
certainly understand the capacity of the engine with just one start of the engine, whether it be
the diesel version or petrol. Even over the trickiest surface you've ever been, both engines offer
incredibly moving efficiency.
Amazing Value for Resale:
They think of its resale value long before many individuals consider which car they should
purchase. But that was not the case with the lucky one. People knew at a glance that this car's
resale value was going to be simply incredible. And it's definitely been a long time now.
Undoubtedly, the Toyota Fortuner has been one of the best SUVs seen by the Asian people in
recent years. One thing that we be sure of is that we will be impressed with the output and
service Fortuner has in store for us in the coming years, whether it is a used version or a brand
new one.
3. Types of Customer Involvement:
Customers involvement of buying this kind of product is high because:
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It requires high contribution to the purchase
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Customer only buy if they have interest in it
In order to decide, it requires a lot of information research.
As the majority of customers of this product is family customers, thus, the decision making
involves the input of all family members. Let’s imagine that a family of 4 with husband, wife and
two little children aged above 6 years old is going to buy a car. The above reasons are proved
clearly:
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High contribution to the purchase: All family members will give input to the purchase. The
payer and decider are the wife and the husband but the children also affect on decision
making with their own opinions. The payer (husband and/or wife) need to consider several
factors like their affordability, the actual value of the car and so on.
Interest in it: A car cost a big amount of money. Thus, without the interest in the product,
the customers will not buy it.
Information research required: The family will research information related to the product
as much as possible to make sure the effectiveness of the investment and avoid any risks
that may occur due to information lack. For sure, the customer – even a person or a family –
will carefully search and check all information and even compare all features of the product
with similar product line: its functions, whether it is fuel economical or not, it depreciation,
whether to buy this product or try to pay more for a more premium car, or whether to choose
a cheaper car instead, and so on.
4. Target Audience for the Toyota Fortuner:
In order to choose the target audience for the Toyota Fortuner SUV in the current economy,
following factors are considered the pillars to define it in order to have a well-selected target
market.
Age:
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These are demographics of new car and truck buyers. This data was pulled from the automotive
mailing list database analysis of 170+ million vehicle owners, buyers of new 2018 and 2019 model
year vehicles.
Income:
The data shows that for new vehicle purchases two household income groups stand out the most:
Under $50,000 per year (mostly single-person households) and $100,000 per year and up (mostly
families).
Under $50,000
$50,000 to $74,999
$75,000 to $99,000
$100,000 and up
31%
19%
10%
40%
Gender:
The data shows this varies a lot when regarding gender. For example; the majority of new truck
buyers (86%) are males. However, SUV buyers are evenly distributed between males and females.
Female
Male
43%
57%
Environmental Aware:
Data shows that there is a recent emerging market segment that consists of consumers who take
into consideration environmental factors when deciding whether or not to purchase a vehicle.
Being concerned with the impact vehicles have on the environment, this segment might look at
this as a priority and have a preference of hybrid SUV’s.
Quality Matters:
Data shows this exclusive group of consumers will typically spend more when the time presents
to purchase a vehicle. Their priorities vary and they are mostly interested in buying quality
technically advanced vehicles; best updated tools and features available in today’s market as well
as high end quality finishes. This group interests are mostly directed to luxury.
Desired Target Audience:
Given the extensive research and data found, we conclude on the desired target audience for the
Toyota Fortuner are:
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People who are from 25–65+
Families of 3+ members
Most of the customers are male, but without taking importance on the female market.
Household Income starting on $40.000
Customers looking for advance features on the SUV’s
Hybrid model for environmental aware customers.
REFERENCE
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Webpage
NEW CAR BUYER DEMOGRAPHICS 2020 (UPDATED) (2019, January 7)
Retrieved from URL: https://hedgescompany.com/blog/2019/01/new-car-buyerdemographics-2019/
5. Consumer Buying Process:
In consumer buying process, they go through 5 phases to make their decision:
Recognition of the need: The consumer is driven to purchase the product, in this case the Toyota
Fortuner, by a need that they have or simply by taste, or by status.
Identification of alternatives: The consumer identifies alternative products, and is informed
about what they offer.
Evaluation of alternatives: The consumer evaluates the pros and cons found in the alternatives
sought, and reflects on them for decision making.
Decision making: In this phase the consumer decides whether to buy the product or not, in this
case the Toyota Fortuner, this decision occurs after having evaluated all the other alternatives
previously sought, pros and cons.
Post-purchase behavior: In this phase the consumer looks for a way to make sure that the
purchase or the choice he made was the correct one and to be fully convinced that his decision
was the correct one.
6. Identification and explanation of possible Cultural, Social, Individual, Psychological
influences might affect consumer behaviour for this type of product:
Firstly, culture is the set of values, norms, attitudes, and other meaningful symbols that shape
human behavior. It is the essential character of a society that distinguishes it from other cultural
groups. The base elements of every culture are the values, language, myths, customs, rituals, and
laws that shape the behavior of the people, as well as the material artifacts or products.
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Therefore, culture is dynamic. It adapts to changing needs and an evolving environment. The
Canadian culture is very family-friendly and friendly, so family trips or large groups of friends are
frequent. For this reason, we created the Toyota Fortuner, with features that will provide comfort,
space, security and confidence. Thus, satisfying the needs of our clients.
Clearly, in Canada a social aspect is handled, so there are several techniques to measure social
classes, it can be classified as upper, middle and lower classes. The price of Toyota Fortuner will
be high, it may be thought that only the upper class will have access to our product, this will not
be the case, as we will have sales strategies so that all our customers can purchase the product.
Besides, the Canadian population has prosperity and economic stability, obtaining high quality
and price products in the market, with this; it can be concluded, it will not have a problem to get
our product.
Moreover, a person's purchasing decisions are also influenced by personal characteristics that
are unique to each individual, such as gender, age, stage of the life cycle, personality, self-concept
and lifestyle. For Canadians it is very important to have a high lifestyle, so they will always look
for quality products, and that is what we offer.
Also, an individual’s buying decisions are further influenced by psychological factors: perception,
motivation, learning, beliefs and attitudes; but for this, we are implementing a market strategy
based on beliefs, feelings and emotions to provide the comfort required to our clients to make
the decision.
To conclude, our company offers an excellent product; it brings from the hand an excellent
market campaign to reach all buyers.
REFERENCE
Lam, C.W., Hair, J.F.Jr., McDaniel, C., Boivin, M. & Shearer, J. (2018). MKTG (4th Canadian Edition).
Toronto: Nelson Education Ltd., plus printed Access Card for MindTap.
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