An Important Factors for Living Essay Example
An Important Factors for Living Essay Example

An Important Factors for Living Essay Example

Available Only on StudyHippo
  • Pages: 15 (3999 words)
  • Published: September 23, 2017
  • Type: Research Paper
View Entire Sample
Text preview


Bangkok relies heavily on automobiles, which serve both as convenient transportation and a symbol of social status. Although public transportation is insufficient and limited in coverage, the city center has seen improvements with the introduction of sky trains and metros. Consequently, there has been a growing demand for personal cars in Bangkok, resulting in a significant increase in car sales and production. In 1961, pickup trucks dominated the car market with approximately 50% share and were popular among families due to their affordability. However, the emergence of budget cars priced at 400,000 tical has led some pickup truck users to switch to these alternatives instead. As a result, this specific segment - especially in Bangkok and other major cities - has witnessed an expansion in its customer base.

Alongside the overall industry growth, the luxury car segment in Bangkok has also expanded due


to increased demand for imported and luxury vehicles. Capgemini's automotive survey has been conducting detailed analysis over several years to study consumer purchasing behavior, identify new trends, and understand customer loyalty. In their 2007/2008 study, Cars Online included environmental issues and findings on fuel-efficient and alternative-fuel vehicles. Consumers have started using online research before making a purchase. As consumer behavior continues to change, businesses need to closely engage with consumers in order to quickly address their demands.

Car industry in Thailand

A hundred years ago, the first car entered Thailand and was considered an extraordinary sight on the road. Cars have now become an essential mode of transportation alongside four other vital elements of life.

The car industry in Thailand has experienced a rise in popularity and demand. Aliens are importing cars from Europe and North

View entire sample
Join StudyHippo to see entire essay

America to sell within the country, leading to the sector becoming the third largest in Thailand. Moreover, during the 1997 economic crisis, the car industry played a crucial role in driving Thailand's recovery. Consequently, Thailand is now recognized as ASEAN's largest market and assembly center for cars, as well as the second largest market for pick-up trucks.

Thailand has emerged as the primary hub for car exports in Southeast Asia, attracting investments from global car manufacturers (Danish Trade Council, 2006). Despite the economic downturn and ongoing political challenges in Thailand, the automotive sector in the country is flourishing. Although a majority of vehicles manufactured in Thailand are affordable or budget-friendly, there is also a market demand for imported high-end or luxury cars. The thirtieth Bangkok Motor Show held in 2009 recorded sales of more than 15,000 vehicles, nearly equaling the previous year's figures.

The government recently announced that the car exercise tax will not be reduced. This news prompted the customers to make their purchase without hesitation, as they did not have to wait for the tax decrease. Simultaneously, the car dealers introduced various campaigns and promotions to stimulate sales, as the automotive market was quite slow at the beginning of the year (source: However, in order to fully boost sales and cater to the customer's needs, it is not only about money. Several factors are required to excite sales. Businesses need to develop multiple marketing strategies and understand these factors in order to approach customers correctly. Marketing research plays a crucial role in determining and acting as a tool to assist businesses in this process.

Types of imported car trader in Thailand

Authorized trader.
The main car company

has authorized these traders to sell their vehicles in Thailand. Each trader is only allowed to sell a specific brand and model. Most of the vehicles sold by authorized traders are standardized, with any additional options added after purchase at an extra cost.

Grey market trader.
These traders import vehicles independently. They can import vehicles of any brand and model based on customer demand. Often, these vehicles are customized with specific options based on either the trader's sales projections or direct customer orders.

Anticipating Consumer Changes

"Research workers viewed consumers as rational people who used extended decision-making procedures in buying merchandises. 'Consumer Behavior' incorporates more recent findings which illustrate the impact of emotions and feelings, not merely for mundane consumers but for industrial consumers as well." An apprehension of consumer behaviour is important as it is the only way for the makers or retail merchants to understand the needs and wants of the clients. Therefore, in this paper the writer will give the findings and analysis of consumer purchasing behaviour of imported autos in Thailand to have an idea about the trends and forecast the products that importers would import in the future. According to Kotler & Armstrong (2001), marketing research is a way that is designed to collect, analyze, and report the data on the specific area of research to the organization, and in this research, it's the consumer purchasing behaviour on the imported autos in Bangkok, Thailand. Solomon (2006) has said that consumer behaviour is the study of the way people make the decision to choose, purchase, or use the certain product which is being influenced by several factors.

The purpose of this study is to identify the

factors that affect customers' purchasing decisions on imported autos in Bangkok, Thailand. By understanding consumer behavior, sellers can predict future trends and adapt to changing attitudes. The research focuses specifically on luxury autos in the grey market and aims to understand customer concerns, preferences, and satisfaction with provided services during the purchasing process. The findings and predictions from this research will help sellers select products that meet customer needs. This chapter includes a review of related literature and studies, examining theories related to the dependent and independent variables of this study. These theories are used to develop a conceptual framework for the research, focusing on factors that influence consumer purchasing behavior.

Related Literatures

Consumer behaviour
According to Foxall (2007, pp. 3), consumer behaviour is a crucial aspect of academic marketing as it encompasses multiple disciplines such as economics and psychology. It encompasses attitudes, methodologies, theories, and techniques. The decision-making process of household consumers involves the assessment, purchase, consumption, and disposal of products in the future. When purchasing a car, customers take into account factors such as price, additional costs, and basic needs. However, they also consider other factors including the brand name, car models available, payment methods offered, designs available with various options.

The general model of consumer decision making, which includes need acknowledgment, information search, evaluation of options, purchase decision, and post-purchase behavior, can be applied to the case of purchasing a car.

  • Need acknowledgment
  • Information search
  • Evaluation of options
  • Purchase decision
  • Post-purchase behavior

In the case of buying an imported car, the requirements go beyond basic needs as a simple and cheap domestically made car could fulfill them. An imported car is

considered a luxury item that caters more to wants, desires, style or trends. People initially buy a car because they need it but then choose the brand and model based on various factors.

However, researchers are not primarily interested in analyzing the appropriateness of this model but rather in understanding the factors that influence this generic model.

Influences on Decision-making:

External factors:

  • Group such as culture, family, friends, and referrals
  • Environmental factors such as time and temperature etc.

Internal factors:
decision-making process,
motivation etc.

The concept of consumer decision making follows a standard pattern when it comes to buying products like cars. This pattern comprises acknowledging needs first followed by conducting an information search and evaluating available options before making a purchase decision. Lastly, post-purchase behavior plays its role.

When it comes to purchasing an imported car specifically though, the criteria for selection go beyond fulfilling basic needs since even a simple domestic vehicle could serve that purpose inexpensively. Imported cars are viewed more as luxury items chosen based on individual wants including desires, style, and trends. The initial need for a car leads to the consideration of various factors when selecting a brand and model.

However, researchers are not primarily focused on assessing the suitability of this consumer decision-making model. Instead, they aim to comprehend the influences that shape this general pattern.

Influences on decision-making can be classified into external and internal factors. External factors include groups such as culture, family, friends, and referrals along with environmental aspects like time and temperature. On the other hand, internal factors involve lifestyle choices, personality traits, decision-making processes, motivation levels etc.

Word of mouth marketing is a potent strategy that many companies promote through referrals

(Buttle, 1998; Danaher and Rust, 1996, as cited in East et al., 2008). However, it is unclear whether recipients would change their decision when they know the referrers' motives.

Demographic factors, including gender, age, income, education level, and family size, are internal variables that impact customer purchasing decisions (Kotler, 1997).

According to Kotler (2000), the market is categorized into various demographics, including age, gender, income, occupation, education, household size, religion, race, generation, nationality and social class. These demographic factors are crucial for identifying customer groups as their desires, preferences and behaviors often align with them.


Age is commonly used as a demographic variable in market segmentation. It enables marketers to understand and adapt to the changing life stages of each generation (Dibb et al., 2006). Flynn (1995) emphasizes that age significantly influences purchasing decisions due to its inherent nature and broad application in social science theories. Furthermore, Kotler (2000) notes that different age groups have distinct needs and desires.

Peoples of different age have different demands and wants and purchase different goods and services over their life clip.

Gender Mentioned by Dibb et Al. ( 2006 ) , gender is another common factor that 's being used to distinguish the markets, whether is apparels, intoxicant, magazines or cars. However, there are still several merchandises that are purchased by either work forces or adult females merely.

Education degree Skinner ( 1994 ) has mentioned that educated clients tend to happen more information on the merchandise they are buying and demand better quality merchandises and so education becomes one of the factors that influences the determination devising procedure.

Solomon (2006) suggests that education level is correlated with income and occupation, as different levels of

education are associated with specific social classes. Education also serves as a determinant of social class within a particular area. According to Dunne and Lusch (1999), success in the field of education is a reliable predictor of an individual's income potential, attitudes, and spending habits. For instance, graduate students exhibit distinct purchasing behaviors compared to undergraduate students who fall within the same age group; they prioritize factors such as quality, price, and service.


Kotler and Armstrong (2001) assert that one's occupation influences their purchasing decisions. Identifying occupational groups based on their product interests holds significance for marketers because it allows companies to target specific customers or specialize in products that cater to their customers' needs.

Hawkynss, Best and Coney (2001) examined how various occupational groups differ in their consumption patterns, whether it is in traditional food markets or electronic products. These variances encompass not only the items consumed but also media preferences and shopping habits.


Statt (1997) states that income plays a crucial role in determining an individual's social status. It is considered as one of the most significant socio-economic variables due to its quantifiability and influence on accessing specific markets. Peter and Oslon (1996) suggest that disparities in income affect values, behaviors, and lifestyles.

According to Solomon (1999), the purchasing power and market potency are also determined by an individual's income. This is because people need money to obtain goods and services of their choice. According to Solomon (2006), culture refers to the character of a society, including both theoretical ideas such as values and ethics, and physical matters and services like cars, clothes, food, sports, etc. Culture is learned and has a long-lasting effect on individual behavior.

Social class can be defined by factors such as income, family background, and occupation.

"Social category is not just about one's status or possessions, but also about their actions and role in society," as highlighted by Phile (Solomon, 2006). According to a wealthy woman's perspective on defining social class, she mentioned that it encompasses factors such as education, intelligence, residence, and choices regarding children's education.

The snowmobile is less important to you compared to your hobbies, such as skiing. Its value cannot be solely determined by money because that is uncertain.


"Lifestyle refers to how a person lives, as shown by their psychographics."

According to Kotler and Armstrong (2001), lifestyle refers to a person's activities, interests, and opinions in various areas such as work, hobbies, shopping, sports, and social events. It also encompasses preferences in food, fashion, family, and recreation. Lifestyle is not solely influenced by social class or personality but rather represents the entirety of an individual's life. Even individuals within the same family, social class, or income level can have different lifestyles.

According to Kotler and Armstrong (2001), the purchasing process varies for different products or services such as shampoo, a tennis racket, a expensive mobile phone or computer, and a new car. The complexity of the decision usually corresponds to the cost of the product, requiring more people and time to consider before making the decision.

Purchase decision process

According to East (et.

According to Al. (2008), the purchase decision process is the main approach to solving problems related to consumer behavior. However, Ehrenberg (1988, cited in East et al., 2008) has found that there is less enthusiasm for these models as they are difficult to test due to

the difficulty in finding satisfactory measures for the components.

According to East (et al., 2008), it is widely accepted that most repeat purchases are made out of habit. The level of engagement in decision-making often transitions from rational to automatic, depending on factors such as the value of the decision or the novelty of the product. When the decision carries high value or is new to them, individuals are more likely to become involved and think more. There are three models of consumer decision-making that explain the process in detail:

  1. Cognitive - this model explains purchase decisions as a result of rational decision-making processes.
  2. Reinforcement - this model explains purchase decisions as a response to the opportunities, rewards, and costs present in the consumer's environment.
  3. Habit - this model explains purchase decisions as learned behavior triggered by specific incentives in the consumer's environment.

Previous Research

A study conducted in Baltimore, MD in 2005 found that consumers decide to buy a new car simply because they want to.

The Vertis Customer Focus (R) 2005 report highlights the various factors that impact adults' decision to purchase new automobiles. These factors include: 8% experiencing issues with their current car, 11% needing a new car for work, 4% having a new driver in the household, 3% desiring a better car due to affordability, and 5% being motivated by lower prices, interest rates, or incentives (Business wire, May 2, 2005).

The economic crisis has affected the automotive market in Thailand during the first half of 2009. However, according to the Thai

Farmer Bank Research Center, the Thai economy appears to be recovering alongside other countries (Smartfund, 2009). The Bank of Thailand has lowered loan interest rates to stimulate the country's economy. Consequently, the decline in car sales has prompted finance companies to become more lenient with buyers by offering lower interest rates, ultimately influencing customer purchasing behavior towards cars.Despite the obstacles presented by the increasing fuel prices, which unfortunately impacts customers' decision to purchase new vehicles and reconsider the model and size they intend to buy, Smartfund (2009) acknowledges the existence of positive factors.

(Smartfund, 2009) The study findings from in 2005 also indicate that 20% of women consider fuel efficiency to be one of the most important factors when purchasing a car. (PRNewswire, November 15, 2005) Communication research also reveals that online car sales in the U.S. are increasing. The Economist Intelligence Unit (cited in NUA, 2000b) suggests that using the internet as a sales channel for cars is unlikely, while Mintel (2000b) states that only 5% of adults would buy cars online (Molesworth and Suortti, 2001). However, many people find the internet useful for learning about products in the early stages and discovering the offers and advantages they would receive. But in the later stages, they prefer to return to traditional methods of purchasing and test driving during the evaluation phase (Molesworth and Suortti, 2001).

Resale values of vehicles are a significant factor influencing people's decision to purchase a new vehicle. Bill Drew, the president of Drew Auto Center in La Mesa, reported that he made 25 sales on the first day he offered trade-in cars. G. Edwards (2008), the president of Strategic Vision's car

division, stated that customers now prioritize the quality and long-term value of the products they buy, even when it comes to luxury vehicles, while still seeking the best price.

She emphasized the importance for manufacturers to focus on improving product quality during favorable economic conditions.


The purpose of this chapter is to describe the research methodology and steps taken in this study. The author collected data for this research from 86 questionnaires distributed to both existing and new clients of company A. The objective was to understand the factors that influence customer purchasing behavior, such as lifestyle, personality, mobility, budget, etc. The methodology includes information on data collection techniques, methods, sampling design, and sample size. This section explains the research design, sampling process, and other techniques used to collect data, followed by data processing and analysis.

Research method

The study is primarily based on primary data, collected through surveys/questionnaires. This research technique involved gathering information from a group of people.

Zixmund (1997) states that the information in this research is collected by communicating with a representative group of the target respondent. The author chose to use this method because it is the most suitable method in this particular context. It is quick, affordable, and efficient, and allows for direct collection of data from the target group. The purpose of the questionnaire is to understand the relationships between variables, and the data collected will be used for analysis in this research study.

The questionnaire is divided into two parts. The first part gathers demographic information, while the second part collects the opinions of consumers regarding the various factors that influence their

car purchasing decisions. The author utilized a Likert scale with five points, ranging from strongly disagree to strongly agree, in the second part of the questionnaire (Saunders et al., 2007). The responses received are related to the statements about the factors that affect the buying behavior of luxury car customers in Bangkok, Thailand. These statements were based on a literature review and expert opinions. However, in this research, the scale is arranged so that respondents can rank the importance of their opinions.

The information collected is being analyzed using the SPSS package. Factor analysis was used as the statistical analysis method. The target population for this research includes males and females of different age groups, education levels, occupations, and income levels who purchased imported cars from a gray market trader in Bangkok, Thailand. The questionnaires were distributed by the sales representative of the gray market trader to both existing and new clients in Bangkok. The target population for this research is individuals, therefore the sampling unit is the same as the population.

The company A distributed questionnaires to 100 clients from different countries in Bangkok. Out of these, 86 questionnaires were completed correctly and can be used in this research. The sampling design refers to the procedure of using a small number of points or parts from a larger population to make decisions about the entire population (Zikmund, 1997). The sampling design can be categorized into chance and non-probability sampling design. Zikmund (1997) also mentioned that non-probability sampling is a technique where the selection of sample units is based on personal judgement or convenience, and the probability of a specific member being chosen is unknown. In this

research, a non-probability design was used by using convenience sampling, where the data was obtained from people who were easily accessible.

The writer has chosen a subset of the population, specifically the clients who have bought or are interested in purchasing imported autos from the gray market trader. This approach saves time and money as it represents the larger population. According to Saunders (et. al, 2007), increasing the sample's size reduces the risk of error. However, in this case, the focus is on the high-end market of imported cars, which is relatively small.

As the questionnaires are being distributed by the gross revenues individual of company A in Bangkok, research instruments are being utilized. The writer opted for questionnaires design to collect information on consumer purchasing behavior of imported autos in Bangkok. Various research strategies and methods, such as personal interviews, telephone interviews, observation, and questionnaires, can be used for this research. Nevertheless, the writer selected the questionnaire method for this study. According to Saunders et al.

(2008), a questionnaire is a data collection technique where people respond to a set of questions. Dutka (1993) considers the questionnaire to be a crucial research tool, as it allows for the quantification of customer awareness and behavior. Therefore, the questionnaire is an essential component of this research project. Specifically, a self-administered questionnaire was employed, meaning that respondents completed the questionnaires themselves.

The author conducted a survey by distributing questionnaires to clients and individuals both online and through direct contact with a sales representative from Company A (Saunder et al., 2008). According to Saunder et al. (2008), there were various factors that influenced the selection of the questionnaire, including the specific group

of respondents being targeted. This research focused on individuals who own at least one car and drive themselves or their family members. The questionnaires were distributed to people in the Bangkok area, as the author chose this geographical region as the focus of the research.

The mean to acquire to the respondents is an important factor in this situation. In order to administer the questionnaires to the clients, the writer sought help from the sales individual of company A. The sales individual carried the questionnaires and asked the clients to fill them in and return them immediately. Additionally, the writer also sent out the questionnaire via email to acquaintances who own a car. The questionnaire for this research is divided into 2 main parts.

The first portion of the questionnaire gathers information regarding the demographic factors of the clients, including gender, age, position, education level, income level, and occupation. The second portion collects data on the factors that influenced the respondents when purchasing a new car. Additionally, there are questions regarding the time taken to make the decision and the time spent consulting and viewing products before making the purchase.

Data Collection

The researcher utilizes both primary and secondary information for the research. The primary data is collected through surveys using questionnaires distributed to a sample of 100 respondents living in Bangkok who own at least one car in their household. The questionnaires were completed correctly by 86 respondents.

The researcher collected secondary information from various sources such as text editions, articles, diaries, newspapers, old studies, and data from the Thai Custom Department on the number of cars imported into Thailand. However, the questionnaire was selected as the best method

to gather the most current perspectives of customers. The data from the secondary source will then be compared to the results of the questionnaire regarding the most popular car brand among Thai people.

Statistical analysis of the collected data from respondents through questionnaires is conducted using the SPSS program. The necessary information from the questionnaires is summarized using SPSS.The 150 questionnaires are being entered into the SPSS software for analysis. The demographic profile is being described using statistical measures such as frequency distribution, percentage, mean, and standard deviation. The analysis techniques being utilized include reliability analysis, factor analysis, one sample t-test, independent sample t-test, one-way ANOVA, and chi-square test of independence. The Pearson Correlation Coefficient is also used to examine the relationship between two variables, known as simple correlation. According to Zikmund (2000), simple correlation measures the covariance or association between two variables.

The correlation coefficient is the measure of the relationship between two variables X and Y. It ranges from +1.0 to -1.0.

Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds