The aim of this research to investigate the influence of advertising on the consumer buying behaviour in a foreign market-Mercedes Benz Motors in Chinese market
International market is very diverse and there are lots of different aspects within the international business environment that could generate both positive and negative opportunities for the companies (Schultz, Tannenbaum and Allison, 1996). In order to avoiding the negative aspects and getting the privilege of positive factors there is huge requirement of focusing upon such strategies that can help in increasing the familiarity of international customers towards the brand. For the same purpose the advertising could be used as main promotional tool that not only creates the brand value but also helps on the ground of generating the interest of international customers towards the product. The companies are required to focus on this aspect at very large scale (Yelkur and Herbig, 1996). The three principles of advertising could be helpful immensely in affecting the consumer buying behaviour. These fundamentals are based on three major I’s, innovative, informative and interesting. The effectiveness of advertising is huge in the international market.
Here in this study the consumer buying behaviour is the main focus area of the study and changes in the consumer buying behaviour will be measured with respect to the advertising strategy. The region for the study is China and most importantly the industry or sector where the study will be conducted is the automobile industry. Due to the stagnant market in the US and Europe, global automotive attention has got diverted into the Chinese market. The country has vast potential in import and exports and boasts about the fastest growing economy (Oliver et al., 2009). Thus this report is helpful immensely on the ground of covering the one field of marketing management in most powerful Asian country. With the help of current report the attitude of local people towards the Ad campaigns could be identified and the demand fluctuation (due to advertising strategy) of luxurious automobile brand could also come into existence. Here in this report the Mercedes Benz is the luxurious automobile brand that will be undertaken into study. Mercedes Benz was established in 2001 in China and currently headquartered in Beijing (Mercedes-benz.com.cn, 2015). The company is known for their brand image and quality due to the country of origin, Germany. They consider trust and spotless reputation as their main currency. The relationship between advertisement and consumer buying behaviour could be identified easily.
The aim of this research to investigate the influence of advertising on the consumer buying behaviour in a foreign market-Mercedes Benz Motors in Chinese market
- To study the different types of advertising strategies available to companies for promoting their products and services
- To examine the concept of consumer behaviour and consumer buying process.
- To critically analyze the current advertising strategies used by Mercedes Benz in China
- To investigate the influence of advertising on the consumer buying behaviour
- To propose recommendations to the Mercedes Benz Company based on the findings of the research
- What is the importance of advertising and promotion for automobile companies?
- What are the different types of advertising strategies available to companies for promoting their products and services?
- What is consumer buying behaviour?
- What are the advertising strategies currently being used by Mercedes Benz?
- What are the influences of advertising on the consumer buying behaviour?
Here in current scenario the nature of the product is luxurious and it is quiet natural that in case of luxurious products the advertising strategy can never be this much of fruitful. Thus it could be stated proper that there is no direct link between the consumer buying behavior and advertisement campaigns. But at the same juncture there is huge requirement of assessing the target market which is going to be affected. Whenever any company launch the advertisement campaign they always focus on the target market but it affects two categories of people one who have capacity to buy the product and other one who admire or desire the product. Thus here the economical aspect comes into existence (Vieceli And Valos, 2000). It is psychological fact that the rich section of the society never takes their buying decision for the luxurious brand and that to for luxurious car. In case of highly rich people main reason behind the buying of such cars is the influence of society in which they spend their time or the direct marketing. Due to the niche marketing the luxurious automobile brands generate huge sales ratio for them. The impact of advertising is negligible on the rich section of society (Sharp, 1991).
Advertisement campaigns just put its huge impact at the mindset of people. As mentioned above that company may aim to attract their target market but there is one more section that dreamt of such kind of brands and set their goals to get access to certain brands. In such cases the chances of long term sales could be increased. The sales or buying decision for luxurious automobile brands mainly depends upon the emotional as well as psychological aspects. The decision making is mainly affected by the emotional aspects related to the luxurious cars. Thus it could be said that in long run the strategy of advertisement could be effective at very large scale. They could be connected to the people who think emotional for the brand and their loyalty could be maintained. It’s an indirect benefit for the company (Hamilton and Webster, 2012). It could be said that the company is preparing the future market and strengthening the fact related to sustainability. Most of management experts have categorized the market and segmentation has been done as per the income. The rich people take their decision as they have relationship with the sales person of any brand or their early experience, influence of any personality or recommendation of any other fiend or peer. Thus it is a part of publicity and direct marketing. Here in such cases the need of influencing the customers is very high and advertisement particularly lacks this feature especially in case of luxurious brand where huge investment is involved. Therefore the change in the consumer buying behavior of rich section could not be experienced by luxurious automobile brands (Wang and Tang, 2003). On the contrary the medium or lower section people who have interest into such brands and they saw big dreams they could definitely become attractive towards such brands and their buying behavior could be changed. But this kind of positive impact at the mindset of potential customer is not beneficial in short period of time.
Another theory is related to the segregation of advertisement strategies. It has been seen that here broadcasting advertisement is not highly effective as compare to print media or online platform. Through e-mail marketing the customers could be attracted easily and print media has become quite useful source of promoting the luxurious brands (Miller, 2012). But here also the people belongs middle rich section of the society could show their interest into the luxurious car brand. The ultra rich section still demands status quo and personal relationship. In China the middle rich section has been increased tremendously in recent past and the sales of luxurious car brands has been increased tremendously. Thus the possibility of affecting the consumer buying behavior positively through online or print media advertising is immense in Chinese market (Goessl, 2010).
Below the description of various selected research philosophies have been explained:
In order to restrict the level of knowledge the research philosophy could be used by the researcher. The researcher need to focus upon the either interpretive or positivism research philosophy. Both the research philosophies have huge expediency on the ground of dealing with the various dimensions of knowledge. Positivism research philosophy only deals with the universal facts and figures and most importantly it has huge level of relevancy with one mindset and opinion. On the contrary the interpretive research philosophy tends to focus upon the subject matter through dimensions and gather the information from different perspectives. It accepts the change on the regular basis whereas the positivism research philosophy denies the change. Here in this scenario the interpretive research philosophy will be taken into special consideration (Merriam, 2009). It is clear that with the help of such philosophy it could become easier to understand the impact of advertisement on consumer buying behavior and various other marketing and people’s attitude situations could be measured effectively.
It is another style of research strategy which has relevancy with the approach of a researcher in order to conduct the study. It also falls into two categories one is inductive approach and deductive approach. In inductive approach the researcher has huge consideration upon the observation about the statement or of any situation then the stage of conformation comes into existence whereas in deductive approach the conclusion is already ready in front of researcher and he just required assessing the truthfulness or reliability of that statement. It is one of the major factors that help on the ground of conducting the study as per the subject matter. Here the impact of advertisement is about to be investigated so inductive approach will be more suitable as it will allow to analyze various situations and impacts could also be identified easily (Muijis, 2010). It starts from very wide perspective and then narrow at the end of research process thus the suitability of inductive approach is more in current scenario.
It includes the quality or nature of data and information that has been used into the study. Based on the subject or objective information the researcher can rely upon the selection of either qualitative or quantitative research type. Both the techniques have huge level of relevancy on the ground of improving the quality of research. The qualitative kind of research is mainly based upon the subjective information and doesn’t include any kind of numerical information. On the contrary the quantitative research is completely objective in nature and has huge level of relevancy with the application of complex statistical tools and techniques. The main characteristics of qualitative nature of study are that it is lengthier whereas the quantitative study is complex in nature (Jonas, 2007). Other than this the mix research type is also considerable but it could be applied when the information is both subjective and objective. Here the qualitative research type has been applied as the consumer buying behavior could never be measured in terms of number. Further the variable here supports the qualitative study only.
It could be segregated into three categories; exploratory research design, descriptive and casual research design. The exploratory research design includes the detailed analysis of the study and it elaborates the subject matter in elucidating manner. Here the exploratory research design will be suitable as it has more compatibility with the research strategies that has been selected in above scenario. With the help of exploratory research design it could become easier to explore the content from various dimensions and the research outcomes could be proposed in reliable mannern (Hjørland, 2005).
Two kinds of data collection techniques could be adopted by the researcher. One is secondary sources and other one is primary sources of data collection. The primary sources of data collection are questionnaire, interview process, survey technique and most importantly the observation pattern. The secondary sources of data collection are online sources, books and previous journal articles. Here in this study both primary and secondary sources of data collection will be utilized into the study. The primary data will be collected from questionnaire technique. Relevant questions will be put into the questionnaire that could help on the ground of getting the reliable information and data (Hoy, 2009).
In order to focus on gather the information the sampling process must be effective and efficient. It could be of two types’ probabilistic sampling and non probabilistic sampling process. With the help of probabilistic sampling technique the researcher could focus on including the respondents randomly. On the contrary the non probabilistic sampling size is something in which the respondents are selected as per the willing of researcher only. Here the sample size will be of 30 respondents. Out of them 20 respondents belongs to upper section of society who has high income range and 10 are middle age income group people.
Data analysis is the basis of study as it provide platform to accomplish the research objective by examining the information through various research tools. The data will be analyzed with the help of thematic analysis. The report is qualitative in nature and the information subjective so it is completely suitable to use thematic analysis within the study (Muijis, 2010). With the help of thematic analysis the themes could be constructed and most importantly the significant outcomes could be provided with the help of study.
Reliability and validity of report:
With respect to maintain the reliability and validity of the report the researcher has focused hugely upon the selection of proper sampling that can definitely provide clear scenario about the subject matter. Here the sampling will be done through upper section of the society and those people who understands the market of luxurious brands. Thus the consumer behavior could be identified easily. Further in order to manage the reliability and validity of the report the researcher will tend to focus on proper data analysis (Hjørland, 2005). If the data has not been collected in an appropriate manner then it definitely affects the reliability and validity of the report. Thus the activities related to the data collection, sampling and data analysis will be undertaken in painstaking manner.
The role of ethical issues is very huge with respect to improving the genuineness and authenticity of the research report. The most considered ethical issues are the non manipulation in the research information and avoiding the activities related to the plagiarism. If the ethical issues are properly aligned then the reliability and validity of the report could be maintained. Further the researcher will focus on gathering the data in proper and ethical manner. The legal aspects will be considered properly along with ensuring the confidentiality of respondents. Thus these aspects will be considered at very large scale.
Limitations of the study:
The major limitation of the study is related to the management of time so that the data could be gathered in stipulated period of time. Another limitation is related to the lack of experience in constructing the research. But these aspects could be handled in proper manner with the help of hard work and learning attitude.
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