Key theory identification
Discuss About The Implications For Marketing Theory Practice.
Tesla is one of the leading automobile brands in Australia of which Tesla Model 3 is an electric car and it is founded in many countries around the world. It is an eco-friendly car which acquires accelerates at a speed of 60mph in just 5.1sec.
The paper will discuss the three theories of consumer behavior which includes problem recognition, information search, and purchase behavior.
According to the Darwinian evolutionary theory behavioral tendency will changes for the survival of a species. Thus the consumer also faces some problem on their actual needs and want and for this motivational theory is selected which identify the actual motive of the consumer in a particular way (Agag and El-Masry, 2016). The Maslow’s Need Hierarchy theory and the McGuire’s theory are the two theories related the motivational theory of the consumer needs in Tesla Model 3.
Abraham Maslow (1965) suggested that the needs for the hierarchical structure should be maintained so that they fulfill the needs of the consumer. Actually, the theory of the Maslow models explains the hierarchy of needs that can help us to know the basis of consumer motivation (Amaro and Duarte, 2015). The hierarchy of the motivational needs accounting to Maslow are divided as- Physiological needs that includes the basic desires like air, water, food, comfort, sleep etc. and if this is not satisfied to the people then it causes sickness, pain, discomfort etc. and another need which is the safety as well a security of the consumer, and the last needs is the growth needs that includes cognitive, self-actualization etc. If all the needs of the consumer are fulfilled then they are motivated to buy the product. Since Tesla Model 3 in an electric car and also it is considered as one of the best electric car models in the world (Ayeh, 2015). The company makes this car as an eco-friendly vehicle that runs through electric and thus reduces the global warming. Due to this process, it motivated the customer to use this car. Actually, the company recognized the problem of the customer and made the car according to their needs.
Another theory that motivated the consumer behavior is the McGuire’s theory of motives. According to the author the theory is based on psychological motives of the consumer and are divided into the following division: needs for consistency that includes the choice and taste of the consumer, another one is needs of categories that includes the object that is desired by the consumer and the other categories are cognitive growth and preservation motives and affective growth and preservation motives (Banerjee, 2017). According to the theory, the category of the product mainly influences the consumer. Hence the consumer is motivated by the innovation of the electric car by Tesla as it does not cause any pollution in the environment and hence are more attracted to the consumer.
Motivation explaining Problem recognition
The consumer main motive is to purchase the latest product from the market which fulfills their needs. Thus the consumer behavior mainly depends on the selection process of what they are choosing and which fulfill their wants and needs. According to Biswas and Roy, (2015), the psychogenic needs of the consumer divided into the primary and secondary needs. The primary needs include the basic requirement of the consumer which are air, food, water, sleep etc. if these needs are not fulfilled then a person becomes irritated and thud it affects their psychology also. Although the biological needs are quite different from the primary needs it also motivates the consumer behavior of adapting the services without any issues. As per Caruana et al., (2016) the psychogenic needs of every individual are different and that recognizes the individual power, achievement, and attraction towards the needs. Apart from this the theory also suggested that this psychological motives also influence the customer of buying a product that helps them to fulfill their needs in the life. Actually, the psychogenic needs theory of Murry suggested that the consumer motivation on the problem recognition stage will help them to make a decision on the product on which they want to buy. As the brand, Tesla is an international brand and it main motives are to fulfill the needs of the customer and thus they make the new Tesla model 3 which help them to fulfill the needs of the customer as well as they get huge profit on the product (Chen and Tung, 2014). Furthermore, depending on the motive of the consumer the Tesla Company has made this car because nowadays global warming causes a huge damage to the nation and this new model of the electric car reduces this problem. As this car run through the electric process so it helps the people to use this car in the present day.
The attitude of the consumer can give information about the product idea either in a positive or in a negative manner. The attitudes of the consumer depend on three facts namely customer belief, feelings and behavioral opinion towards the object that consisting of both brand and on store also. A consumer can have both a positive and negative belief on a certain object. On the basis of a consumer opinion, an object can make a huge growth in the industry but if some negative comments occur then the product will also get a huge loss in their market (Cohen et al., 2014). As the resources of fuel are limited to the present day so the Tesla Company has discovered a new and innovative model of the electric car named as Tesla Model 3. The Tesla Model 3 is an eco-friendly car so the consumer belief that in buying this it does not affect the environment and hence the global warming will decrease. This positive belief of the customer makes the brand as one of the leading international brands in the market. Another important factor that related to attitude is the consumer feelings towards the product. This is very important because it totally depends on customer beliefs.
Linking theory- Psychogenic needs
The other factor that is related to the attitude is the consumer behavior against the product. Since the brand makes an electric car which reduces the pollution level so the brand gets a positive behavior from their consumer (Dahl, 2017). Due to all this factor the brand holds a luxurious position in the market which signifies that this brand have a good control over the consumer of buying their product for the better growth of the environment. As the environment are so much polluted on using the fuel cars so the company has made such kind of car that reduces the global warming process. Due to this positive attitude the brand is successful on making the electric car in the market (Domegan et al., 2015). Apart from this many case studies has revealed that consumer mainly purchases the car not only for their needs but also for reducing the fuel cost that has been increasing day by day. So thus the brand gets a huge demand in the market for both the peoples who loves to travel and also for the people who wants to reduce the fuel cost. Hence the Tesla Model 3 is most successful electric car in Australia because the consumers gives positive attitude on buying this car.
The marketers should understand the consumer social behavior that influences the quality and types of the products in the market. Consumers has various roles on purchasing a product which influences the behavior of the buyer. Social class includes the external environment that affects the behavior of a consumer. According to Frow et al., (2014) the social class include a group of people including in their education, offices and also in wealth. Thus the social class gives an intense effect on the consumer attitudes of which the main effect is on the income level of each social classes. On the basis of the discrimination of the social class the rich people have a tendency to buy goods having higher quality while the poor people have the ability to buy goods according to their needs. Hence this causes a huge attitudinal differences between the both classes (Zinas et al., 2017). All of this factors suggested that the purchasing behavior of the upper class society people will be more than the lower ones. Thus the purchasing of the Tesla Model 3 product by the upper class people are more considered to the lower class. Due to this problem the Tesla Company makes this innovative car in the market at a low price than any other electric car in the marketing and thus it helps the company to sell their car at a huge amount in the whole market of Australia. This social changes has influences the consumer to buy the car from this company which increases the marketing procedure of the company (Gummesson et al., 2016). According to the company head of Tesla due to this social change they wants to sell the car at a cheapest rate so that the attitude of consumer on buying the cars cannot change as well as the company should stand a leading position in the market.
Attitudes explaining information search
The purchase behavior of the consumers is of great importance as it helps in evaluating their desired needs. The reference groups play an important role that helps the consumer for taking good decisions on purchasing the car Tesla Model 3. According to Huang et al., (2017) the reference group must have either formal or informal and it will with the consumer purchasing procedure directly and indirectly. If a reference group agrees to buy the product then the person will purchase the product but if there are any negative comments arises regarding this product then by the influencing of the reference group the person does not buy the product (Luca et al., 2016). Through literature review it is seen that the reference groups are divided into three classes namely associative where the group individual mainly belongs and get influenced by the opinions of the member present in the group, another class that belong to this reference group is aspirational where the individual belongs to a particular group but they only aspired by their thoughts and not surely implement this on their task and the last one includes dissociative groups where the individuals mainly avoid the people belonging to this classes. As per Neghina et al., (2015) in case of buying a car an individual is influenced by the reference groups in terms of information, by seeing another individual buying the same product and also by the beliefs on another opinion about the product. This thought has been involved because buying a car comprises a huge amount of money and the customer motive is to be benefited from buying the product.
Thus the consumer of Tesla Model 3 has very much influenced by the reference group. As the product includes a high cost so before buying this product the individual should consult with the group member so that it does not give him any issue in the future for buying this car. Since this Tesla Model 3 car is an eco-friendly vehicle that reduces the pollution level from the environment so it has many benefits towards the customer on using this car (Parker, 2014). Apart from this the car run through electric so the cost of maintaining a fuel car will reduce and due to this positive benefits of the car Model 3 becomes a leading brand in Australia as well as it influences the industry in the market level also.
Linking theory-Influence of Social Class
The opinion of the leader influences the purchasing behavior of the consumer. The leader will be one who has the vast knowledge about the product that the customer wants to purchase. For this purposes, the consumer main motive is to discuss with one to get a vast idea about the product so that it does not cause any difficulties in the future. Apart from this, the opinion leader has a great influence on marketing procedure (Rani, 2014). If a customer identifies an individual who has the proper knowledge about the product then the customer mainly listen to that person before purchasing a product from the company. Since Tesla Model 3 is one of the leading brands but the consumer has some quarries about the product for this they make an opinion from an individual who has a vast knowledge about the product (Previte et al., 2015). For diminishing such quarries between the consumers, the Tesla Company has appointed some sales person who can decrease the issue of the customer and influences them to buy the product from the market. Due to this reason the brand achieve a good position in the market and makes international business in many countries. Apart from this according to the customer opinion this car has many flaws so that’s why the purchasing of the car has decreased in the present market nowadays. In contrast to this problem, the Tesla wanted to make another electric car model that can fulfill all the needs of the customer (Wang et al., 2015). As Tesla is an international brand and its product gives positive results towards the consumer so they wanted to make a better quality product with the opinion of their leader so that it fulfills all the needs of the customer.
Recommendation 1-Enhancing the market competitiveness through product enhancement
The Model 3 as developed by Tesla has been found to have few of the crucial attributes which need to be rectified as per the satisfaction level of the customers. It has been seen that the stopping distance of the car of 152feet coming from a speed of 60miles per hour was found to be slower than as compared with its competitors which includes Ford F-150 which provides a full-size pickup. Moreover, in order to get the desired competitive advantage throughout the covered market segments, it becomes important for the firm to offer more features as well as reliability with the product experience as this will help in evaluating the desired productivity as well as the profitability of the fir throughout the competitive market areas. On the other hand, there was positive feedback regarding the Model 3’s agile handling as well as the range of battery provided and thus, the firm needs to improve few of the areas in order to provide better user experience to the concerned customers.
Recommendation 2-Getting right messages to customers and targeting customer needs
One of the vital recommendations is to work as per the satisfaction level of the customers. Communicating the exact and the right messages to the customers are considered as to be the vital factor as it helps in bringing the desired success for the firm. Moreover, Tesla needs to communicate their actual message behind the development of this product so that it can attract a large number of customers towards the purchase of the car. The change in the perception and demands of the customers generate great impact on the business processes, thus, Tesla should investigate the wishes of the customers so that the products are offered as per their requirement.
Recommendation 3- Increasing the retail outlets and promotion techniques
In order to achieve the desired success for the firm, it is important for Tesla to develop latest promotional techniques that can be expected with the help of the social media websites as large number of the users have been seen to use it. Renovations throughout the existing outlets and an opening of new outlets as well as joining venture with few other companies’ will help in increasing the selling of the cars for the firm.
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