Decision Purchase Of Lorry
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1.0 Executive summary
Overall this report was about the researches on the high involvement purchases. The subject for this report was Mr. Goh Boon Sim who recently purchased a Daihatsu lorry due to some necessities. There are four types of influences that influenced Mr. Gohs decision and his behaviour when he decided to purchase a lorry. The four influences were external influences, which will be explained on the demographics, lifestyle, marketing activities that affect consumers perspective. As for the internal influence explains what are the consumers needs and motives, perception/learning, personality and attitudes before the purchase. Situational influences such as time, social, task antecedent to be explained on what situation that affect consumer to purchase this product and lastly the decision process decision that explain the questions on how, when, who and where the consumer purchased the lorry. Theories were included as well for each influence to explain thoroughly on what Mr. Goh thinks and do before he decided to purchase this lorry.
2.0 Introduction
The subject for this report was Mr. Goh who purchased a lorry this year (2005). Mr. Goh was a businessman for a pottery manufacture for almost 22 years since year 1983. He started his business with his partner in 1983 but after his partner left the business, Mr. Goh and his wife took over the whole factory and strived hard to achieve his goals. As times goes by, the business were improving each year. Mr. Goh not only sold local pots to customers but also imported pots and vases from Vietnam, China and more. His customers were not only in a small town named Kuching, but his business also known in Germany, Sweden, Australia, Brunei, Sabah, West Malaysia and more.
As the demands for pots increased, Mr. Goh had to increase his production and the imported goods. As the goods/ inventories increased, Mr. Goh needs to deliver the goods to customers as soon as possible to save up more spaces for new inventories.
Currently, Mr. Goh only own 2 medium sized of lorries but since Mr. Goh had increased the production to meet the demands, he needs to deliver the goods on time (The time that he had promised to the customers).The main reason was to create trust and building up good relationship between customers and suppliers, and of course to build good image for the companys name. And yet, he wanted to deliver the goods in larger quantities for each trip so that he can save up time and fuel consumption at the same time. That why, after two weeks time, he purchased a Daihatsu lorry which cost more than RM75, 000 and it can holds up to 5000kgs goods per trip.
External Influences
In understanding how Mr. Goh settles on the decision to buy the ultimate product, the following external influences should be studied as these avenues play an essential role in the decision-making process.
Figure 1: Lifestyle and consumption process (Quester, 2004)
In deciding to purchase the product, both formal and informal behavior for selection and decision making criteria has been utilized as Mr. Gohs company is privately owned. Consequently, these decisions were concluded as more informal although Mr. Goh did execute some form of formal decision making.
3.1 Demographics
Demographics can have a major impact on the way marketers identify, target and communicate with their target audiences (Quester, 2004). Changes in demographics are important considerations for marketers when developing effective marketing strategies in targeting their target segments needs, wants, consumption behaviors and other impacting attributes such as personal values, decision styles, perception and attitudes in acquiring products or services.
To further understand Mr. Gohs demographics category, the important elements is briefly summarized below.
Factors
Consumer Lifestyle
Age Structure
51 years. Mr. Goh was born in the baby boomers era, where majority are politically active and interested in social affairs, prefers to be informed than entertained and watches news, current affairs, documentary, lifestyle and quiz programs. Their newspaper reading is higher than average, and they are a key audience for, and are participants in, talkback radio.
Population
Distribution
Mr. Goh was born and raised in Kuching, Sarawak, and has adapted to the life, values and multi-cultured ethnicity within the geographic area, while being well established, settled and conformed to the behaviors and norms of the national group, the generalized Malaysian culture.
Income
RM 2,000 and above net salary.
Occupation
Manager of a pottery manufacturing plant. His main responsibilities are to oversee the manufacturing and management of the business.
Education
Highest level of education is Primary 4. However, he has vast experience of apprenticeship with his father and other pottery manufacturing plants.
Mrs. Goh is also part shareowner and decider of the companys financial matters, is involved in the decision making process. However, after probing during the interview, it was found that Mr. Goh quite often practices traditional lifestyle in gender roles.
3.2 The Household
As mentioned above, Mrs. Goh is also a major influence in the financial decision making process although their son plays a minor role even though he manages another establishment of the company. There are 5 distinct roles that lead to consumption and they are:
Information gatherer
Mr. Goh and son was the main information gatherer as they are more knowledgeable about the products offered.
Influencer
Mrs. Goh and son, and the need for transportation were the major influencers in evaluating alternatives, criteria and choice.
Decision maker
Mr. Goh was the final decider.
Purchaser
Mr. Goh negotiated and purchased the lorry.
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