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MM6052 ConsumerBehavior

PROFILINGBUYERUSER POTENTIALBUYEROF ATMOTORCYCLE

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

1. INTRODUCTION There are 1,931,677 units of motorcycle sold from the first quarter of 2012 (AISI). Mark Plus research also found that 79,6%. Indonesian have motorcycle dominated by the middle class As the economy grows and as more opportunities appear on the horizon, this group is expected to see rising incomes accompanied by increased consumer spending, driving more economic growth. Honda and Yamaha, therefore, extend theirs product variants along with innovation and latest technology adoption. Table 1. Motorcycle Unit Sales January to March 2012

Source: AISI

In West Java, Yamaha had significant sales performance during 2012, especially its automatic transmission motorcycle (AT Motorcycle) i.e. Mio. This AT motorcycle type is becoming the latest trend in motorcycle industry. Honda and Yamaha are dominating market share. In the past, motorcycle is identical with male, now it becomes universal. Moreover many female are becoming its priority targeted especially in the big cities by offering its latest technology and user friendly. Bandung, the third biggest city after Jakarta and Surabaya, its heterogeneous society signifies many different lifestyle and behavior as well as different patterns of technology adoption. The readiness of consumers to the technology is important information, because companies can find out which are most potential future customers to be marketed in the early stages of these high-tech products. The success of the company lies in understanding the customer preferences and tastes and anticipating the changes required in existing or new products being offered. Moreover many merchants offer easier way for people to purchase through credit and loan deals.

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

2. ANALYSIS 2.1 Macro economy According to Steven Koeberle (World Bank, 2012), Indonesia has one of the fastest growing middle classes among its emerging peers; expanding a rate up to 7 million people a year. It is getting bigger especially in urban area. Indonesian GDP, per capita income and purchasing power have enjoyed solid growth in real terms over the past decade, and consumer confidence has increased on the back of these gains, evidenced by concurrent increases in per capita consumer expenditure. In 2011, GDP reached IDR 7,427 trillion, up from IDR 6,977 trillion in 2010 and IDR 6,570 trillion in 2009. Thus showed higher GDP means higher buyer power. Much of this growth was driven by strong increases in consumer expenditure despite consumers wrestling with inflation, the lingering effects of the global financial crisis and the impact of the recently slumping exports market. The strength of the growing economy has been reflected by rises in consumers` income and spending. Strong economic growth increased government spending and rises in per capita disposable income has all boosted consumer confidence in Indonesia. Figure 2.1 GDP growths in Asian 6, China and India (%)

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

2.2 Micro economy (Demographics) Data on AT motorcycle consumption patterns, the impact of demographic characteristics and attitudes towards AT motorcycle were collected by email and individual interviews in March 2013. These surveys were carried out among the SBM ITB students (undergraduate, post graduate and alumni) and random people who mainly use AT motorcycle. A structured questionnaire was the main tool used to collect the data, and in addition, informal interviews were used to obtain detailed information from consumers. The questionnaire was developed, informed from literature, pretested and then piloted. It was translated into Bahasa to be administered and then back into English for analysis. The structured questionnaire included questions about the socio-economic characteristics of consumers, consumption habits and buying behavior. Informal interviews were conducted after the questionnaire had been completed. A short interview (510 min) was conducted to minimize the disturbance to consumers and to gather information on history, consumption patterns and so on. The target population of the study comprised costumers aged over 21 years, with a sample of 45 respondents randomly filled the questionnaire and selected for the interviewed. Demographic details of the sample are shown in Table 2.1. Table 2.1 The sample profile (N=45) N Gender Male Female Age 21-30 y.o 31- 40 y.o Occupation Student Employee Self-Employee Others Marriage Status Single Married Expenses per Month <IDR 1 Million IDR 1 2 Million IDR 2 4 Million > IDR 4 Million 2 27 8 7 16 29 6 15 8 16 4 80 18 16 36 62 13 33 18 36 33 12 33 12 37 8 82 18 %

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

The table above showed that 82% the AT motorcycle user are male, young and have occupation. Thus the Authors assumed that people are using motorcycle despite of their difference of needs and motivation behind it. Figure 2.1 AT Motorcycle users by Age and Gender

Generally, motorcycle users are male, while female customers are those who ride AT motorcycle. However, the finding stated that more than 70% AT motorcycle customers are male. For the brand, AT Yamaha preferred by those who are 21-30 years old, while AT Honda preferred by 31-40 years old. Figure 2.2 showed the perception that Yamaha although not the true pioneer, perceived by the majority of respondents as the pioneering brand in the automatic transmission motorcycle Figure 2.2 Pioneer on AT motorcycle

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

Figure 2.3 AT Motorcycle users by Expenses

Figure above explained that AT motorcycle users are dominated by those who their expenses in range IDR 1-2 million and IDR 2-4 million (51%). AT Yamaha owners are having expenses relatively low, compare with the owners of AT Honda. In addition, those who are married and employee preferred AT Honda, while AT Yamaha chosen by single, student, and self-employee. Figure 2.4 AT Motorcycle users by Marital Status and Occupation

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

Figure 2.5 Consumer preferences when purchasing AT motorcycle

Figure 2.6 showed that 73% prefer to buy new one, while the rest prefer used (male, student). In addition 57% respondents observe before buying and male dominates those who prefer not. Easy maintenance, flexible caring goods, and engine performance are becoming top three important reasons to buy for male customers (figure 2.5). It is interesting that 100% male chose easy maintenance, as it might perceived that having AT motorcycle has to be less maintenance (modern and advanced technology). Compare with female customers who their important reasons are reputation, fuel consumption and design. Design is about packaging. Logically is that a good design is a good business. It attracts people more. Price sensitivity is still becoming a preference for both of male and female customers. However it is not becoming their top priority. In fact, many people perceived that price is never lie in regards to quality and performance in transportation industry. Figure 2.6 Condition of purchasing AT motorcycle

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

Figure 2.7Observation before purchase AT motorcycle

Solomon et al. (2002:6) stated that consumer behavior is the study of the processes involved when individuals or groups select, purchase use or dispose of products, services, ideas, or experiences to satisfy needs and desires. Thus it is important to have customer consideration in mind in order to fulfill their needs in motorcycle. In addition, the respondents also tend to have the right motorcycle instead of the best motorcycle in the market. In other words, respondents are willing to choose the product that fit to their personality. Therefore, the type of motorcycle is very important along with its specification (80% range 8-10) (figure 2.8). Those preferences are becoming customer`s value. Figure 2.8 The importance of specification AT Motorcycle by Gender and Expenses

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

3. CULTURE People have different perception of riding or using motorcycle, especially for Indonesians who have strong linked with culture and history. Schiffman and Kanuk (2000:146) stated that perception is process by which an individual selects, organizers, and interprets stimuli into a meaningful and coherent picture of the world. Table 3 below listed some myths, beliefs and behavior in order to find out people perception about motorcycle in general. Table 3. Myth, belief and behavior in society Myth Riding Motorcycle Female is Belief Behavior

strongly It is believed that riding Motorcycle users like to

encouraged not to ride motorcycle is for people hang out in a group such motorcycle because the who do not care about as touring. Their behavior possibility virginity. loosing This its safety. The level of identically accidents there with However, myth security is low as many brotherhood. motorcycle.

coming from people in death the villages long time with

dealing for some reasons many of In users prefer to make a is strong and loud noise the machine. It which shows masculinity and

ago. The reason is that addition as riding horse. However, as regarding this.

riding motorcycle same perception of brand such from Yamaha,

there is no real evidence strongly related with a power. Thus they love to gangster and robber. In replace its original part 1990s, many of those with modified one. using Yamaha on their activities because of its speed. AT Motorcycle N/A AT motorcycle is for N/A

female customers because of its easy to use (user friendly). However, many male customers prefer AT motorcycle nowadays.

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

4. DIMENSION OF PERSONAL CULTURE With Hofstede, cross-cultural differences in consumer attitudes and behavior can be predicted. It is based on the nation score cross-cultural consumer behavior. The Hofstede model distinguishes cultures according to five dimensions. The model provides scales from 0 to 100 for 76 countries for each dimension, and each country has a position on each scale or index, relative to other countries. (De Mooij, Hofstede, 2010). Sometimes, nation-level might not fully represent the diversity in the cultural orientations of the citizens of a country as national cultural characteristics. Figure 4. Indonesian Dimension of Personal Culture by Hofstede

Source: http://geert-hofstede.com/indonesia.html 4.1 Indonesian Dimension of Personal Culture by Hofstede Exploring Indonesian culture through the lens of the 5-D Model, we would get a good overview of the deep drivers of Indonesian culture relative to other world cultures. 1. Power Distance Index (PDI)

This dimension deals with the fact that all individuals in societies are not equal. It expresses the attitude of the culture towards these inequalities amongst us. Indonesia scores 78. High score on this dimension characterizes the Indonesian style: being dependent on hierarchy, unequal rights between power holders and non-power holders, superiors in-accessible, leaders are directive, management controls and delegates. In addition, high power distance also means that Indonesian co-workers would expect to be clearly directed by the boss or

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

manager. Westerners may be considerably surprised with the visible, socially acceptable, wide and unequal disparity between the rich and poor. 2. Individualism-Collectivism (IDV)

Indonesia is a Collectivist Ssociety with a low score of (14). Means there is a high preference for a strongly defined social framework in which individuals are expected to conform to the ideals of the society and the in-groups to which they belong. 3. Masculinity/ Feminity (MAS)

Indonesia scores (46) on this dimension and is thus considered low Masculine. Indonesia is less masculine than some other Asian countries like Japan, China and India. A low score (feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A feminine society is one where quality of life is the sign of success and standing out from the crowd is not admirable. In feminine countries the focus is on working in order to live, managers strive for consensus, people value equality, solidarity and quality in their working lives. In Indonesia status and visible symbols of success are important but it is not always material gain that brings motivation. Often it is the position that a person holds which is more important to them because of an Indonesian concept called gengsi loosely translated to be, outward appearances. 4. Uncertainty Avoidance Index (UAI)

The dimension Uncertainty Avoidance deals with the fact that the future unknown. Indonesia scores (48) on this dimension and thus has a medium low preference for avoiding uncertainty. The main manifestation of Indonesias uncertainty avoidance is to maintain the appearance of harmony in the workplace; an intermediary removes the uncertainty associated with a confrontation. Weak uncertainty avoidance cultures accept this uncertainty and tend to take each days as it comes, taking risk rather easily, and being more tolerance of behavior and opinion different from their owns because they do not feel threatened by them. 5. Long Term Orientation (LTO)

The long-term orientation dimension is closely related to the teachings of Confucius and can be interpreted as dealing with societys search for virtue. Long term orientation accepts change, thrift, and pursuit of peace of mind. While short term orientation considers spending

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

now is more important than saving for tomorrow. Theres no score available for Indonesia on this dimension. Means Indonesians are no risk takers.

4.2 Motorcycle sales in Asia The number of motor vehicles in the world since 1986 continues to grow. Ward Auto 2011 stated that the number of motor vehicles in the world has reached 1.015 billion units by 2010. An increasing number of motor vehicles also occurred in Indonesia. Data from the Indonesian National Police Office showed the number of two-wheeled motor vehicle population in Indonesia by 2011 are 68,839,341 units (http://www.bps.go.id/). Based on study, the number of vehicles in Indonesia in recent years continued to grow 10-15 per cent (Aditya, 2013). The increase in sales also occurred in the types of motorcycles. Indonesian Automotive Industry Association (Gaikindo) stated that the number of vehicles in Indonesia ranks first in Southeast Asia and rank third in the world (figure 4.2). Figure 4.2 Motorcycle Sales 2011

Source: Gaikindo (2011) From the table above, it can be assumed that mostly family in Indonesia has one motorcycle. Thus brands are made into personalities. As Indonesia is more collectivism, the influence of family and environment are important for purchasing decision-making. Indonesians love to hang out in-group. Using motorcycle is one of the ways. In addition, the design, color and advertising are being made to match with Indonesian culture (low masculinity). In addition, their short-term orientation made Indonesians spend more instead of saving. Therefore, many

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

service being offered to make people easy to buy the latest model through credit. They might not care about the technology advance, as long as they gain status in their group or society. 4.3 Convergence/ Divergence in Consumer Behavior There is a patterns of convergence/divergence in consumer behavior. An analysis of time series data on consumption and ownership of various product categories showed various degrees of convergence and divergence in the various regions. For some products, differences between countries worldwide can be explained by differences in national income or by culture. For durable products, in particular those related to income such as passenger cars, television sets and computers, initially countries converge with increased wealth, but in the developed world, at a certain level of wealth, convergence reaches a ceiling after which there is no further convergence and differences remain stable or increase. With converging wealth, convergence of consumption turns into divergence (dD Mooij, 2001). In underdeveloped countries , low uncertainty avoidance, a measures of innovativeness tend to explain variance of penetration of new technology products. Countries score low UAI were the first to embrace the internet and still are leading with respect usage it. While countries with high UAI (ex italy, french, Germany) have been lagging. Internet using relate to low masculinity and Individuallity. In Feminine culture, people use technology for increasing quality of life more than productivity. Collectivist prefer person to person contact and have been late adopting the internet for personal communication. To conclude, when countries have converged with respect to national wealth, cultural variables start to explain more of the differences in country-level consumer behavior.

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

5. SOCIAL, FAMILY and REFERENCE GROUP INLFUENCE A reference group includes friendship groups, shopping groups, work groups, virtual groups or communities, and consumer-action groups. Three types of reference group are informational, normative (utilitarian) and value-expressive. From this study, group involvements and membership influence our action as consumers such as decision making, shopping activities, and actual consumption. From personal experience, influential people in our lives shape our buying decision, especially cars and electronics products that we used daily. Often we felt that our choice affected by other people. However, we are not always conscious of the social influences that affect our purchase decisions. For many consumers, their family is their primary reference group for many attitudes and behaviors (Schiffman, Kanuk, 2007). Figure 5.1 Influence on purchase decision-making

The figure above showed that people feel fairly influential on buying AT motorcycle with recommend from someone else whether it is spouse, family, friends, or expert. But not everyone follow their friend or family reference. They felt that group reference influence is less important because they usually already have product knowledge of AT motorcycle. In this case, sales persons have informational influence that someone uses the opinions of others (sales person or mechanic) as useful information. Informational influence is desiring to make informed decisions, from expertise or those viewed as credible. This type of influence occurs when an individual uses the behaviors and opinions of others (experts) as useful information. He/ she perceives the opinions and choices as being based on superior knowledge or experience.

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

6. PREDICTED PERSONALITY Predicted personality refers to an individuals consistent response tendencies across situations and over time to see general trends. We have to understand the individual in the context of the whole to approach the personality of individual. We also allow predicting what a person will do in a particular situation. It is important to understand personality traits to see the consistent tendencies to respond to a given situation in certain ways. From the interview results, all of respondent (100%) purchase motor automatic as needed (not only follow the trends or influence of other people). While 53% said that their motorcycle should fulfill their needs such as large space baggage, economize, and easy to ride. 53% have particular preference in choosing a motorcycle design. 31% of respondents dare to try new variant of Mio J. 84% of respondents prefer to buy new motorcycle than used one. General personality traits are one that invariably affects an individual across a range of situation, both those that are consumption related and those that are not.

Figure 6.1 General Personality Traits General Personality Traits Self Esteem Response Tendency Feel positive (high) or negative (low) about themselves Attention to Social Comparison Optimum Stimulation Level Connectedness variety in products Perceive themselves as highly connected with others Compare oneself with others Appropriate message Seek more info about and Product with different messages or theme ads Ads that reflecting relationship and togetherness promotional Marketing Implication Self-help book (low)

By looking at the marketing implication above, it concluded that consumers are smart. They choose wisely and gather information about product they want to buy. As we live in social community, most of the respondents therefore feel connected with others. The brand of AT

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motorcycle that can reflect the personality of the owner is preferable to some of the respondents. Consumption specific personality traits affects the consumer only in situations related to the consumption and does not extend its influence into non-consumption situations.

Figure 6.2 Consumption Specific Personality Traits Consumption- Specific Personality Traits Opinion Leadership Acquire, store, & communicate product information to others Product-specific Self Confidence Deal proneness Make decision about the product without doubting its decision Seek the best bargain possible in shopping situation Coupon & discount as primary method if it is a sizable segment Specialty stores Educate on new products Response Tendency Marketing Implication

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Profiling Buyer, User and Potential 14% Buyer [6] of AT Motorcycle

Used

7.

New PREDICTED

86%

LIFESTYLE

Lifestyle is a persons pattern of living as expressed in his psychographics. Based on the observation that has already been done, most of the respondents are graduate students (mostly young, active, up-to-date about everything and a smart shopper). They seem to fit in the trendy type in urban psychographic segment. For them, own AT motorcycle is simpler their life because AT motorcycle easy to ride, and accompany them in doing most of their travelling activities especially go to the school or office.

Their preference of AT motorcycle is depend on their needs and not really influenced by others (they just use it as added information as long as useful or similar with their needs). Consumers also do some observation before they purchase (69%). These types of consumers are looking for design and comfort. Also, they prefer to buy new AT motorcycle rather than used one. 60% of the respondents dare to try new brands. Most of the respondents have at least changed their automatic motorcycle once. The reason why they change their AT motorcycle is mostly because of the performance of their old motorcycle is not great anymore. These statements are based on the chart below.

Figure 7.1 Condition of purchasing AT Motorcycle

Figure 7.2 AT Motorcycle replacement frequencies

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Figure 7.3 AT Motorcycle reason to replace

One well-known segmentation system is The Values and Lifestyles System or VALS, developed at SRI International in California. The original VALS were based on how consumers agreed or disagreed with various social issues such as gay or lesbian marriage. After about 10 years, SRI discovered that the social issues it used to categorize consumers were not as predictive of consumer behavior as they once had been. SRI searched for a more powerful way to segment consumers, and the company discovered that certain lifestyle indicators such as "I like a lot of excitement in my life" were better predictors of purchase behavior than the degree to which a person agreed or disagreed with a social value. The current VALS system uses a battery of 39 items (35 psychological and 4 demographic) to divide U.S. adults into groups, each with distinctive characteristics. As VALS system largely based on US, therefore it may not really suitable to be used in Asia culture especially Indonesia.

Based on VALS system consumers are inspired by one of three primary motivations: ideals, achievement, and self-expression. Consumers who are primarily motivated by ideals are guided by knowledge and principles. Consumers who are primarily motivated by achievement look for products and services that

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demonstrate success to their peers. Consumers who are primarily motivated by self-expression desire social or physical activity, variety, and risk. If we see our correspondent with VALS perspective, they can categorize into Experiencers type. The reason is because they are avid consumers who spend a comparatively high proportion of their income on fashion, entertainment, and socializing. As we can see that they almost buy a new motorcycle when the new type of is being launched. Their purchases reflect the emphasis that they place on looking good and having "cool" stuff. Thus with this pattern behavior, they are particularly emphasis on new products and services.

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8. PREDICTED VALUE and MOTIVATION Value is an enduring belief that a specific mode of conduct or and-state of existence is personally or socially preferable to an opposite or converse mode of conducts or end state of existence (Rokeach, 2007). Figure 8.1 Purpose of using AT motorcycle

Based on the questionnaire and interview, respondents mostly use the automatic motorcycle go to their office, school, or shop (62%). The use of AT motorcycle is very helpful for them to travel and every day use. Then it followed by going with partner (11%), touring events (4%) and with friends (2%). The instrumental value helps the customers to travel and the terminal value gives freedom for the customers to go everywhere.

Figure 8.2 The importance of AT motorcycle specification

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

Behavior Based onPrivateSelfImage the questionnaire and interview, mostly respondents are very care with AT Behavior motorcycle specification before they buy (33%). The ranges from 7 to 10 are 93%. The

motives buying AT motorcycle are divided into two, known and freely admitted, and either unknown or reluctant to admit or reveal them. Known and freely admitted are easy to ride (user friendly) that comforts them, high quality AT motorcycle that performs well, space to carry goods. Either unknown are pictured the user as a Motor GP rider and powerful, good design of AT motorcycle that make it unique. Self Ima ge 9. PREDICTED SELF

BrandUserImage

Ads

Ads

Self is the true center of the personality and is midway between the opposing forces. Individuation process does not eliminate the ego but unites it to the self (Jung).

Behavior

Brand Image is the overall vision or position of a brand in the mind of the consumer. It is a combination of both tangible and intangible attributes. The type of consumer benefits they

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

deliver such as utilitarian or functional, experiential or aesthetic, and value-expressive classifies the attributes. Figure 9.1 Satisfaction of chosen brand

Brand becomes a consideration in choosing products. Based on the questionnaire and interview, mostly respondents are very satisfied their chosen brand of AT motorcycle i.e. ranges 9-10 (36%), while passive customers are fairly satisfied with 49% (ranges 7-8)

Figure 9.2 Willingness to repurchase their chosen brand

If customers satisfied with the product, they will remember and possible to repurchase the brand. Based on the questionnaire and interview, mostly respondents give their loyalty to a brand of AT motorcycle (16%) when they satisfied. Net promoter score for AT motorcycle with their choose brand are 25% (24%+16 (2%+9%+4%)).

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

10. PREDICTED NEED and DORMANT NEEDS

Based on Maslow Theory, people are driven by particular need at particular times. Presents a hierarchy of needs model which can be divided into needs growth aesthetics actualization). basic (e.g. needs and One (or deficiency) physiological, (cognitive, selfmust

safety, love, and esteem) and

satisfy lower level basic needs before progressing on to meet higher level growth needs. Once these needs have been reasonably satisfied, one may be able to reach the highest-level called self-actualization. Based on interview with correspondent they bought AT motorcycle because their need not just following other (80% they are still on the basic needs of Maslow hierarchy). They need to use automatic motorcycle for their activities and the easy-to-use that automatic motorcycle has. This happened because our correspondent mainly college student and employee. In addition, they are also very mobile. In addition, almost their whole day travelling from one place to another. 20% answered that they bought AT motorcycle because all of the family who are using the brand i.e. Yamaha (belongingness). Their need about AT motorcycle is very conscious. However their needs about Mio J actually can be predicted, as their automatic motorcycle become obsolete they eventually will buy a new one, and sell the old.

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

11. PRIOR KNOWLEDGE, CATEGORIZATION and CONSUMER COMPREHENSION Prior Knowledge is used for

understanding and comprehending new information. Knowledge and understanding are one of the psychological cores in consumers mind. Knowledge formed by social class and household influence, values, personality, lifestyle, social influence and consumer diversity. Consumers differ in their knowledge in part because of different cultural systems and in part because some consumers are simply more informed than other. To gain their knowledge about automatic motorcycle that they want to purchase, consumers used to find their information by browsing in the internet, using the recommendation from other people (social influence), and come to the store asking to the customer service. Figure 11.1. Criteria Choosing AT Motorcycle

Based on the chart above, 24 out of 45 respondents agreed that comfort and easy to ride is the major component that they tend to notice when they want to buy a new automatic

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

motorcycle. Other related components are design (color and graphic), price, economized in gasoline consumption, and performance; because consumers use their prior knowledge to label, classify, and identify the products. Some of the brands should be taken to consideration of the consumers if they already have past experience or information about those brands. For instance, Toyota in Indonesia is already known as a reliable car, using high technological engine, low fuel consumption, great looking design, and etc. When the consumers do this, the categorization is occurring. Marketing or elements such as price and advertising can a play a powerful role in influencing what the consumers think they know.

In this case, knowledge content reflects the information most of the consumers have already learned about the brands of the automatic motorcycle before they buy or use it. They tend they judge the products by the brand, performance, specifications and prices.

Base on the observation, most of the respondents have already known about Mio J but still do not want to buy yet, because they already use Mio the old one, or they already have a motorcycle. In fact, all of the respondents prefer to sell their old automatic motorcycle after replacing them with a new one. This fact and information is learned by the consumers from their past or perhaps base from real facts and situations that we collect from the observations below.

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Figure 11.2 Knowledge Structure: AT Motorcycle

11.1

Means-End Conceptualization of the Components of Advertising Strategy

(MECCAS) A means-end chain links attributes of products (the means), consequences of these attributes to the consumer, and the personal values (the ends) that the consequences reinforce (Gutman, 1982). It is being use to develop an advertising strategy to effectively target specific consumer attributes, consequences, and overall values or end-states that the consumer is driving for (figure 11.3). It represents a perceptual orientation of decision criteria. In fact, many advertising practitioners tend to reject the notion that theoretical models of information processing can improve the message development process. Consumers perceive the personal relevance and desirability of product attributes in terms of their association with personal consequences of product usage. Similarly, the relevance and desirability of personal consequences are derived from their association with a consumer's personal values. Thus the strength of association between means-end information communicated by an ad will contribute to the explanation of brand persuasion.

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

Figure 11.3 Hierarchical value map

Figure 11.4 Meccas

Not only does means end research offer great potential to explore customers experience with MIO J, but more importantly it helps to understand what makes the product personally to them.

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12. PERCEPTION

Perception is the process by which an individual selects, organizes, and interprets the information he or she receives from the environment. Figure 12.1 Logic vs Feeling in choosing AT motorcycle

Base on the observation, most of the respondents think logic and use feelings to buy AT motorcycle. However, using logic (56%) is preferred than feeling (47%). The observation also found that most of the respondents are willing to try Mio J. The willingness of customers is the advantage of the company. Offered test ride, customers will have experience and excitement. Thus customers will have different perception before and after test ride in order to influence their purchase. From the interviewed, test ride influence their purchasing because: 1. Individual response factors such as interest, involvement, needs, values, and cognitive set. 2. Stimulus factors such as color, size, intensity, position, repeated exposure. 3. Quality of goods such as ease of use, versatility, durability, serviceability, performance, prestige 4. Sensory such as governed by five senses

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

Figure 12.2 Customer experience riding Mio J

Figure 12.3 Riding Mio J

Base on the observation, most of the respondents feel comfort and average riding Mio J (8%). Besides customers will recommend Mio J to their community (2%).

12.1 Customers Experience Customers are aware that YAMAHA as a company who produce Mio J. In addition it is also perceived as the pioneer in AT motorcycle, although not the true pioneers. The brand Awareness of YAMAHA based on the respondents is 81.6%. Moreover, customers also prefer to find the information details of the product after they know the brand (76.32%).

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Customer expectations of YAMAHAs product are: 1. Price and fuel consumption (26%) 2. New variants, type and easy maintenance (19%) 3. Color and graphic design (30%)

Figure 12.4 Customer satisfaction with Yamaha

Figure 12.4 showed that the customer satisfaction levels of Yamaha are 38% (range 9-10), while customer who agree that the brand deserved loyalty are 36%. Figure 12.5 Yamaha deserves a loyalty

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12.2 Net promotor score NPS captures two key behaviors: buyer economics (the value of the customer) and referral economics (their potential value through referral). The rst deals with an individual`s own choices and the second with how those choices inuence others. The difference, the net, is the metric of interest. Figure 12.6 Willingness to continue buy new variants of Mio J

The figure above showed the percentage of how likely is customer would like to purchase new variants of Mio J. Ranges 9-10 are promoters who are really loyal with the brand, while range 1-6 are detractors who are having more negative comments or low rates loyalty purchase. Ranges 7-8 are those who are passive buyer. The calculations of NPS are: % Promoters (range 9-10) - % detractors (range 1-6) (26% + 15%) (12%+7% 41%-19% 22% (Low medium NPS) Having 25% NPS, Mio J still need to improve its strategy in order to maintain the current customer and get the new customer. In addition NPS also reects the reality of word of mouth since promoters provide positive word of mouth, and detractors engage in negative word of mouth about the company and its products or services. Successful Net Promoter programs are not traditional customer satisfaction programs with the Recommend question added for convenience.

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

13. DECISION JOURNEY and PROCESS It is highly important to find out the decision journey and process of customers for any company. By knowing and understanding which factor that most influence would help company to emphasize their strategy by targeting the emotional aspects. It starts from before, during and after services in order to create the experience that would bring loyalty. Marketers need to study the decision journey for their products and use their insights to revise strategy and advertising budget. Table 13. Consumer decision journey and process Factors Store/Agent Interaction Consumer Driven Marketing Past Experience Company Driven Marketing Direct Marketing Traditional Advertising Sponsorship In Store Product Experience Sales person Contact Touch Point 1* 12% WOM Online Research Off ine/Print Review 21% 28% 37% 10% 31% 5% 2* 26% 3* 43%

39%

26%

22%

Note: 1. Initial consideration 2. Active evaluation 3. Moment of purchase

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Profiling Buyer, User and Potential Buyer of AT Motorcycle

Based on research conducted on German, Japanese, and US consumers in following sectors: for initial considerationautos, auto insurance, telecom handsets and carriers; for active evaluationauto insurance, telecom handsets; for closureautos, auto insurance, skin care, and TVs; figures may not sum to 100%, because of rounding

The process of buying a motorcycle: 1. In initial consideration, consumers gather information (from internet, dealer, showroom) and listen to familys references of the product, how, and where to buy it. 2. In active evaluation, consumers visit the stores/ dealer to collect the information about the price and benefit of the product from the sales person from each store and examine the physical condition of the product by self-inspection and test-driving to see the performance of the product. 3. If the price, physical condition, and performance is fit with the consumers expectation then the consumers will buy it. Typically, there are 3-4 brands consumers consider in initial step. While in evaluation step, there are at least 2-3 brands consumers consider. According to Mckinsey with its research of automobile shoppers, customer added 2.2 brands to their initial-consideration set of 3.8. This change in behavior creates opportunities for marketers by adding touch points when brands can make an impact. Brands already under consideration can no longer take that status for granted (Court et al, 2009).

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Great Marketers Syndicate X46

Profiling Buyer, User and Potential Buyer of AT Motorcycle

14. CONCLUSIONS Number ofusers ofAT motorcycleinIndonesiais increasing fromyear to year.In additionto the more practical considerations, the AT motorcycle is also more comfortable to use for short distance or long distance travelling. At first, AT motorcycle identical to female and gasoline wasteful, but with a variety of embedded technology makes the need for gasoline in AT motorcycle almost equal to the manual motorcycl along with male customer increment. The rising of midlle class also effect to the sales of AT motorcycle. Gultiman and Gordon (2001) stated that consumer purchase decision making will be influence from technology, culture and economic condition. The term consumer behavior is defined as the behavior that cosumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs (Kanuk, 2007). It focuses on decision making on consumptionrelated items. So, this knowledge includes what they buy, when and where they buy it, how often they buy or use or dispose it, and the impact of evaluation on future purchases. The term ddispose here includes the packaging. In AT motorcycle context, dispose can be defined as reselling. In this case, we need to analyze how much its reselling price. From the quesionaires, observations, and interviews; It concluded that the consumers tend to gather the information about what kind of AT motorcycle which fit with their personality, need, and want (price, specification, design, brand, and etc.). Some of them also have certain brands into their consideration. It depends on how the brands are able to engage and influence the consumers knowledge. Most of the respondents got information before buying. In initial consideration step, company driven marketing (such as traditional advertising, in store product experience, direct marketing) is the most touch points to purchase decision, followed by consumer driven marketing and past experiences. While in evaluation step, store/ agent interaction is the most touch points to purchase decision, followed by consumer driven marketing (such as WOM, Online research, print review) and company driven marketing.

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Great Marketers Syndicate X46

Profiling Buyer, User and Potential Buyer of AT Motorcycle

15. REFERENCES De Mooij, Marieke and Hofstede, Geert (2010) The Hofstede Model Applications to global branding and advertising strategy and research, International Journal of Advertising. (online journal) Accessed on March 15th 2013 De Mooij, Marieke (2001) Convergence and Divergence in Consumer Behavior. [Online ] available at: <http://www.mariekedemooij.com/articles/demooij_2001_admap.pdf> [Accessed 16 April 2013] Court, David. Elzinga, Dave, Mulder, Susan, and Vetvik, Ole Jrgen (2009) The consumer Decision April 2013] Gutman (1982) A means-end chain model based on consumer categorization processes. Journal of marketing. p. 60-72. Guiltinan, Joseph P and Paul, Gordon W (2001) Marketing Strategy and Program Hoyer, Wayne D and Maclnnis, Deborah J (2007) Consumer Behaviour, 4th Ed, Hughton Mifflin Company Kotler, Philip (2000) Marketing Management: Analysis, Planning, Implementation and Control, 9th Ed, Prentice Hall, Inc, Upper Saddle River, New Jersey Kotler, Philip, Amstrong, Garry (1996), Principle of Marketing, 9th Ed, Prentice Hall, Inc Upper Saddle River, New Jersey Schiffman, Leon and Kanuk, Lazar (2007) Consumer Behavior, 9th Ed, New Jersey: Pearson Prentice Hall. Solomon, Michael R, Bamossy and Elnora W, Askrgaard (2002) Marketing Real People Real Choice, 2nd Edi, Prentice Hall Inc, Upper Saddle River, New Jersey Yoo, Boonghee, Donthu, Naveen and Lenartowicz, Tomasz (2011) Measuring Hofstedes Five Dimensions of Cultural Vales at the Individual Level: Development and Validation of CVSCALE, Journal of International Marketing, 23:3-4, 193-210. [ebook] available at: <http://people.hofstra.edu/Boonghee_Yoo/cvscale.pdf> [Accessed March 9th 2013 Journey, McKinsey Quarterly article [online] available [Accessed at: 17 <www.mckinseyquarterly.com/The_consumer_decision_journey.>

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