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Customer , Perception, Behaviour, Car Buying

A well known fact is that investment in a Car is the costliest investment made in a life time only next to construction of a house, for any human being. It is a common knowledge that all of us are attracted towards cars right from childhood and we have developed our own perceptions for cars. When we acquire the capacity to buy cars, our experience of buying, involves both emotional and rational aspects which lead to a purchase decision. Unlike other consumable durables, the decision to buy specific brand of Car is shaped over a long period of time. The period between recognition of need to buy a car and the actual purchase may run into many weeks or even months. Considerable research has focussed on conceptually and operationally defining various factors that lead to a purchase decision. However, because of the inherent difficulties in deciphering consumer behaviour coupled with exponential changes in consumer aspirations, there is a need to constantly re-define our perceptions about consumer behaviour. Revealed Preference Theory of Samuelson & Bounded rationality Theory of Herbert Simon and many others have provided a conceptual analysis of Consumer Behaviour from the perspective of economics, we have still not been able to pinpoint whether consumers are Rational or Emotional when it comes to buying Cars. “ According to some early economic theorists (e.g., Adam Smith, Jeremy Bentham, Alfred Marshall), man’s/woman’s desire for goods and services exceed his/her ability to pay. Therefore, buying decisions are made through a rational process during which we assign a value to each desired product or service offering based upon our assessment of the ability of that offering to satisfy our needs and desires. This want satisfying ability is termed “utility.” As different offerings possess different levels of utility, rational behavior dictates that one seek to maximize utility.