Question

CASE STUDY:

"BMW is the ultimate driving machine. Manufactured by the German company Bayerische Motoren Werke AG, BMW stands for both performance and luxury. The company was founded in 1916 as an aircraft-engine manufacturer and produced engines during World Wars I and II. It evolved into a motorcycle and automobile maker by the mid-20th century, and today it is an internationally respected company and brand with $106 billion in sales in 2012. BMW’s logo is one of the most distinctive and globally recognised symbols ever created. The signature BMW roundel looks like a spinning propeller blade set against a blue sky background—originally thought to be a tribute to the company’s founding days as an aircraft-engine manufacturer. Recently, however, a New York Times reporter revealed that the logo, which features the letters BMW at the top of the outer ring and blue-and-white checkered design in the inner ring, was trademarked in 1917 and meant to show the colors of the Free State of Bavaria, where the company is headquartered. BMW’s growth exploded in the 1980s and 1990s, when it successfully targeted the growing market of baby boomers and professional yuppies who put work first and wanted a car that spoke of their success. BMW gave them sporty sedans with exceptional performance and a brand that stood for prestige and achievement. The cars, which came in a 3, 5, or 7 Series, were basically the same design in three sizes. It was at this time that yuppies made Beemer and Bimmer the slang terms for BMW’s cars and motorcycles, popular names still used today. At the turn of the century, consumers’ attitudes toward cars changed. Research showed that they cared less about the bragging rights of the BMW brand and instead desired a variety of design, size, price, and style choices. As a result, the company took several steps to grow its product line by targeting specific market segments. This resulted in unique premium-priced cars such as SUVs, convertibles, and roadsters, as well as less expensive compact cars like the 1 Series. In addition, BMW redesigned its 3, 5, and 7 Series cars, making them unique in appearance yet maintaining their exceptional performance. BMW’s full range of cars now includes the 1 Series, 3 Series, 5 Series, 6 Series, 7 Series, X Series, Z4 Roadster, M Series, Hybrids, and BMWi. BMW created the lower-priced 1 Series and X1 SUV to target the “modern mainstream,” a group who are also family-focused and active but had previously avoided BMWs because of their premium cost. The company nurtures these loyal consumers and continues to research, innovate, and reach out to specific segment groups year after year."

QUESTION:

Basic psychological processes play an important role in understanding how consumers make decisions. Marketers must therefore understand the different facets of consumer behaviour. With regards to the above statement use the five stage model to explain the consumer buying process.

Answer 1

Consumer behaviour is, for the most part, a psychological preocess and the psychology of buying behavior is deeply related to the emotions that the consumer goes through.

First, the consumer will begin by recognizing the fact that they are in need of the product. They will then find some way to solve their needs.

The typical buying process involves five stages the consumer passes through described as under:

• PROBLEM IDENTIFICATION
• INFORMATION SEARCH
• EVALUATION OF ALTERNATIVES
• PURCHASE DECISION
• POST-PURCHASE DECISIONS.

1) PROBLEM IDENTIFICATION - If someone seriously want to buy BMW , they may have accumulated too much cash to buy a new car.And this may be why a consumer want to buy the best class of German manufacturers. If your credit score is sufficient for the purchase then financing issue is over.

2) INFORMATION SEARCH - While comparing luxurious car's BMW has its own name .it is the most powerful automobile from the leading manufacturers.The Bavarian Motor Works is the most reowned automobile brand in the entire globe.After searching such valuable informations , customer will try to compare with other brands.

3) EVALUATION OF ALTERNATIVES - This is a stage of the buyer decision process in where a consumer uses the information gathered in the information search to evaluate alternative brandsin the product category.After analysing, he will start evaluating.First of all will try to know the history of the car,it's design,quality,performance,fine torque,resale value.As his queries meets with BMW,he will make 65% of his mind to stick with the decision.

4) PURCHASE DECISION - This stage is purely based on the evaluation.This will be based on few factors:

a) Engine

b) checking the warranty

c)free maintenance package

d)checking the classified for the pricing

e) visit the showrrom to learn about the pricing

f) the cost of the ownership

g) resale value

5) POST-PURCHASE DECISION - This is the final stage in the consumer decision process when the customer assesses whether he is satisfied or dissatisfied with the purchase. A customer may also have a change of heart and decide that he no longer has a need for this particular product.