Market Research
In today’s landscape, market research plays a vital role at the onset of any manufacturing or business endeavor, particularly within the automotive sector and its related industries. This is because acquiring long-lasting goods, such as vehicles, involves a two-fold process that encompasses both situational and psychological factors, influencing the consumer’s purchasing decision through these two sets of factors.
The factors affecting car buyers’ choices and the process of buying cars are complex and encompass both situational and psychological aspects. Situational factors refer to variables that are present at a particular time and location. These variables consist of economic conditions, regulations and laws established by the government, the functionality and use of a vehicle, and the supporting infrastructure such as fuel sources and roads. Alongside measurable factors, some individual thoughts and emotions have a significant influence. These factors encompass aspects like the owner’s attitude towards their vehicle, their lifestyle choices, personality traits, and self-perception. Psychological factors represent variables connected to individuals’ perceptions, feelings, beliefs, and the value they place on a product or service.
According to Kotler, 2006, the decision-making process for purchasing a product involves several stages for customers. Furthermore, Kotler explains that customers will experience five stages:
1.Problem recognition: According to Kotler (2006), the moment you recognize that you have a problem or a need is when you begin considering a purchase. This indicates that the buyer understands the difference between their current situation and their desired situation.
2.Information Search: When you are making a high-involvement purchase, such as a vehicle or car, it is essential to gather a significant amount of information. This process requires careful thought and planning. You should review various sources to learn about the product, and take the time to examine all available resources to help you make an informed purchasing decision.
3.Alternative Evaluation: Consumer decision-making for high-involvement purchases, such as vehicles, involves a thoughtful process where individuals carefully evaluate different options with varying degrees of accuracy, considering both advantages and disadvantages. When someone is deciding to buy something significant, like a car, it’s essential to understand all relevant aspects of each choice. This includes factors such as build quality, cost, and availability of other alternatives.
4.Purchase Decision: According to Kotler (2006), after comparing various vehicle features, customers make a decision on what they want to buy, which leads to their final purchase decision.
5.Post-purchase behavior: After making a purchase, a customer will either feel satisfied or disappointed, which leads to certain behaviors. Many marketing experts, including Kotler, have noted that a customer’s level of satisfaction or disappointment hinges on their expectations and the product’s performance. If the product fulfills the customer’s expectations, they will feel satisfied. Conversely, if the product falls short of their expectations, they will experience disappointment.
Market research: A scientific, accurate, and principled evaluation of these five stages can only be achieved through market research. Market research is conducted in two ways: quantitative and qualitative. Qualitative research relies on observation, conversation, and face-to-face interviews, utilizing tools such as focus groups, in-depth interviews, and specialized clinics.
In quantitative research, the foundation of the study is a survey conducted using a questionnaire. This questionnaire includes the key research questions and can be administered through various methods such as telephone interviews, web surveys, or by distributing the questionnaire to customers or target audiences in specific locations, such as sales showrooms, after-sales service centers, or during specialized automobile exhibitions.
In comprehensive market research, we utilize both qualitative and quantitative methods. This approach allows us to obtain more defensible and well-reasoned answers to our questions while better validating the research results.
In today’s market research, two primary methods are utilized: Stated Preferences (SP) and Revealed Preferences (RP). The SP method involves respondents who have not had direct experience with the product or service in question. In contrast, the RP method engages respondents who have used the product or service for some time and thus possess relevant experience. Each method has its advantages and disadvantages. However, conducting both methods and comparing the results can yield valuable insights into customer expectations and their actual perceptions.
DANA DASTVARD BAZAR Company, using modern market research methods, we are equipped to conduct qualitative, quantitative, or mixed-methods market research projects on a wide array of topics. These topics include entering the automotive and related industries, introducing new automotive brands, rebranding, launching new products, selecting product specifications and features, determining pricing strategies, positioning products in the target market, and more.
In market research projects, we typically seek answers to the following questions and topics:
- What are the characteristics of potential buyers for our product in the Iranian market? What are their wants and needs?
- How do our customers differ from those of our competitors?
- What motivates our customers to choose or not choose our product?
- What is the price elasticity of our product?
- How do customers perceive the product’s price level?
- How can we estimate sales targets based on the considered price levels?
- What are the needs and demands of consumers regarding after-sales services?
- What feedback do we receive on the marketing and branding activities that have been carried out?