The weighty decision of purchasing such an item of great value like a car is not likely to be reached at a glance; instead, it is considered the extended problem solving decision, which includes high involvement, high financial cost, and perceived risk (Solomon 2009, 334). In fact, consumers are driven by various factors that lead to the final decision.
This paper aims at developing a logical knowledge structure for cars made in Germany, Japan, and USA, in order to investigate how consumers link certain attributes and features to a car and accordingly to examine whether the created ‘schema’ can be generalised and applied to other product categories. To reach the very final stage of car purchase, consumers are influenced by various factors, to name but a few, such as personal factors like age, sex, place of domicile, occupational and economic conditions, personality and self-concept (Horska and Sparke 2007).In this paper, the most common factors are considered and divided into two following groups: Internal factors These factors consist of motivation, involvement, responsibility, perception, positions, personality, skills and knowledge, lifestyle of consumers (Brown 2006 quoted from Stavkova 2008). It can be stated that many of us since childhood have developed own perceptions on cars through the very first times playing with car miniatures.Facing the intention of buying a car, consumers’ purchase decision is based on both emotional and rational aspects (Goyal & Sadasivam 2010).
To some degree, consumers may see their personality in the way they make consumptions, regardless of purchase frequency, value, feature etc. of the products and services. Car purchase is not an exception, which on the contrary could say something about the driver. In reality, the majority of consumers buying hybrid cars in the US upposed that the cars could reflect themselves (Thaler and Sunstein 2008); not to mention Cadillac is favoured because it can create social status together with other luxury goods (Broadbent 2007).
Car purchase biases also result from the behavioural theories of mental accounting regarding the way people value things does not remain consistent but changes over time (Thaler 1985). Based on the theory of loss aversion, consumers are more likely to respond to the situation that a German car might cost an extra $XX of petrol compared to the fuel efficiency of Japanese car, which could help them save $XX.Moreover, to simplify the car purchasing process consumers are likely to resort to heuristics, which in the case of a car purchase may demonstrate in the country-of-origin effect, market beliefs (Solomon 2009, 357), word-of-mouth, normally from family, friends and acquaintances. According to Story (2005) the association of a product with a particular country influences the evaluation process of consumers, i. e.
they are influenced by attitudes and beliefs about a certain country (Solomon 2011).Consumers associate certain characteristics as well as features with the countries in which the cars are manufactured. Thus, in consumers’ perception, cars of several country brands may be linked with good quality or energy efficiency, whereas others are considered to be pompous or highly fuel consumptive. In addition, it is of common sense that when considering the price of a car, consumers may compare it with the prices storing somewhere in their mind, such as that of the previous car, or the car of some relatives, sometimes it can be the recommend retail price in store. External factorsIn the context of car purchase, marketing stimuli are considered rational drivers such as unquantifiable attributes (brand, safety, comfort, after-sale maintenance etc. ) and quantifiable attributes (exterior design/size, advanced technology, engine size, CO2 emissions, fuel efficiency etc.
) of car. Besides, other irrational factors like advertisements, word-of-mouth, commercials, and intermediary such as salesperson, retail store decoration etc. are likely to have significant impact on consumers’ purchase decision.By focusing on rational and emotional factors of consumers, the salesperson may assist them in selecting he right car among various ones in their consideration set (Goyal & Sadasivam 2010). The Case study “Consumer Reports: Car Buying Guide” shows a rising trend of new car buyer’s reliance on other consumers’ reviews and comments. In the era of being socialized, consumers are putting more and more value on both objective and subjective opinion of the others (Consumer Reports: Car Buying Guide).
In this sense, a car brand choice may be significantly influenced by that of the neighbour’s newly-bought car. To some extent, this influence proved to be stronger than almost other factors (Bakken 2008).Demographic variables are viewed as the main determinant of consumers’ car choice, such as: gender, age, education, income, social class. A study of Choo and Makhtarian (2004) showed a result mentioning the effect of demographic variables on the choice of car size, specifically, better educated female consumers with lower incomes and at younger age are prone to choose small cars; while luxury car buyers are deeply uninterested in travelling.
Younger consumers, especially women, are more likely to attach great value to the fuel efficiency; while larger and less efficient cars tend to be chosen by people with higher financial capability.Cars made in Germany Fig. 1: BMW advertisement Germany is one of few countries where there is no specific limitation of car speed on highway. As a result, German cars in the reality are positioned with high speed capability.
From figure 1, it can be clearly seen that the high acceleration of the new BMW series is visually illustrated. Other German manufacturers also grasp this typical feature and promote their products accordingly. A recent breakdown statistic indicates that German cars are dominant in terms of reliability.According to the largest German automobile club, called ADAC (2010), German cars are listed among the most reliable ones in the world, while Japanese car manufacturers only hold average position (ADAC 2010).
Technology advantages can be the major reason that determines German automobile’s success, because the breakdown is mainly caused by technical problems with the vehicle’s electrical system or the engine management system (ADAC 2010). Whether it is BMW’s new Head-Up Display or Volkswagen’s parking assist system, German cars are metonymic with innovative strength.Audi with its over 100 years of doing business, provides a clear statement through the slogan ‘Vorsprung durch Technik’ – ‘Advantage through technology’. Not to mention, the good reputation of German car industry warranties that potential car-buyers nowadays would link highest quality standard as well as luxurious design with German cars.
On the global scale, Mercedes-Benz, BMW, and Porsche are among the top brands when it comes to luxury and high quality; however they are also of very high price. Cars made in Japan In the global marketplace, Japanese cars have long been known for their fuel-efficiency technology aspect (Omar 2008).With the increase of gasoline price, Japanese auto manufacturers are paying more attention to fuel-efficient technology. Figure 2 shows the way a new model of Toyota is promoted with a better fuel-efficiency.
In fact, innovation is essential for a motor company to survive in the competitive global arena (Choy and Prizzia 2010, 47). In addition, hybrid cars have become more popular to consumers as fuel cost can be saved significantly thanks to this innovation, which allows the electric motor to work independently when driving at low speed thus saving gas improving the air quality (Hick 2009).Toyota is seen as the leading brand in this area with Prius series (Figure 3); moreover, Honda also introduces its Insight hybrid and Civic hybrid. According to this, these hybrid series would be likely to be favoured by consumers with eco-friendly awareness. Fig.
2: Advertising in Pakistan Fig. 3: Toyota Leverages “Harmony” For Prius Cars made in the United States Fig. 4: Chevrolet advertisement Regarding cars made in the USA, attributes like big size, power, and status are likely to come in the first row. Figure 4 gives an example of Chevrolet considering itself an American revolution – powerful, large and independent.However due to their powerful engines, US cars are perceived to be highly gas consuming. According to Begley (n.
d. ) US cars tend to appear in bigger size, as well as large rear axles and wide tires, which make the cars stand out among the others (carsdirect. com n. d. ). Another outstanding feature of US cars is safety.
Data of the Insurance Institute for Highway Safety’s 2010 top safety picks showed that US made cars are the safest on the road (theautoinsurance. com 2010). Although Japanese cars have long been known for their economicality, the price of US cars is in general cheaper compared to other foreign cars (recomparison. om n. d. ).
Schema for cars made in Germany, Japan and US Cars made in Germany, Japan and US may be perceived to differ from each other in various attributes and features, which are summarised and illustrated in the following schema: As mentioned above, the knowledge structure of German cars may firstly relate to their particular innovation and high level of technology. Moreover, German cars also stand out for the reliability, quality and luxury. Not to mention, high speed capability in combination with excellent acceleration would appeal to consumers, who put value on fast cars.Japanese cars can be convincing with eco-friendly engines and fuel-saving hybrid technology, which turn them into the leader in terms of fuel-efficiency. Consumers attaching importance to the safety and status may find US cars appealing due to their large size and powerful appearance.
To sum up, all country-image cars listed above have both advantages and disadvantages; however, it can be stated that the consumers’ decision making process depends on their own needs and wants and other environmental factors. Other product category – UniversitiesIn this part, the schemas of car would be generalised to test whether it could work for other product category, namely university. When international students plan to study abroad, they would consider between certain features and attributes of university choices; in this case, three countries of origin would remain the same. Based on a study, US universities would attract much more overseas students than the German and Japanese ones (Verblk and Lasanowski 2007). The determinant feature for US universities may be referred from the car’s schema “stand out”, which means the flexibility in teaching and learning method.
In other words, a flexible learning environment could be is likely to bring about comfort and more opportunities to students during studying process. For instance, on its homepage, the Oregon State University (OSU) has created a friendly environment for students of different gender, including lesbian, gay, bisexual and transgender – LGBT). The OSU offers support for these communities, such as counselling and psychological services (“OSU receives top rank as gay-friendly campus” 2011). There are also further universities working on this campaign.
Another reason for US university choice is “status”, taken from the car schema. The 2011 Academic Ranking of World Universities has revealed 17 universities from the top 20 are all US one due to their high quality education. For instance, University of Chicago proudly describes itself as a university that changes the world, with the leading stance in law, economic and sciences. Technology would be one of the advantages of German universities.
Germany is famous for its outstanding mechanical engineering products, such as cars (Germany Inspires Innovation 2011).German universities also offer an efficient research environment with high technological base (Germany Inspires Innovation 2011). Quality is considered to be another feature (e. g. Fig. 5: Reach the top and Fig.
6: Land of Ideas) of German education with “twelve out of every 100 graduates go on to take a doctorate – this is world’s highest ratio” (Germany Inspires Innovation 2011). Besides, safety is a factor worth considering. The fact has showed that the living environment in Germany is much safer than that of the US.According to Germany Inspires Innovation (2011), German government would like to apply their high technology to fight “against terrorism, organize crime, natural disasters or large-scale accidents.
” Fig. 6: Land of Ideas Fig. 5: Reach the top Hori (1991) supposed that most of foreign students choosing Japanese universities are from other Asian countries, such as China. A lot of Asian countries share similar teaching and learning method. Therefore, it is easier for those students to adapt to the new study environment (Kanasuki, 1992).
As a sideline, Japanese universities are famous for their educational innovation (Kawai, 2005). As a result, Japan is more and more favoured among Asian students as a study destination. Conclusion After considering both schemas, it can be summarized that to some degree, the generalization of the schemas is possible based on the existing perceptions consumers have developed on each country-image. Looking in more detail, certain general attributes associated with the car schema may find the relevant application in the university schema.
