MBA 404 - Assessment 1 B - Andito Ramadhan 1812380
MBA 404 - Assessment 1 B - Andito Ramadhan 1812380
MBA 404 - Assessment 1 B - Andito Ramadhan 1812380
The study of consumer behavior is a significant area for marketers, but it is also essential for
consumers to know how consumer behavior works. In the current era, where access to almost
every kind of information is just a click away, many consumers still make purchase decisions
that result in regret later on (Layne, 2018). Therefore, consumers should know how their
decision-making process works to make an informed decision with enough information available
that minimizes cognitive dissonance.
1. Need Recognition:
Recently, I had to purchase a vehicle to make my commute to work more accessible and more
comfortable. I live in the Melbourne CBD but work in Richmond, almost 6 kilometers apart.
This distance might appear very small, but with the tram filled with the public traveling to their
workplaces and back home in the day and evening, this 6 km distance takes almost 50 minutes to
reach my workplace by tram. Commuting daily by tram makes my 2 hours of the day spent
hustling through the crowds, disturbing my physical health and making me mentally tired. Thus,
this longer commute stimulated me to consider purchasing a car that will not only reduce my
commute on one side to 15 minutes but also keep me at peace with a fresh mind upon reaching
my workplace. Needing a car for my commute was mainly a utilitarian need because I focused
on satisfying myself with the tangible attributes of a car that would help me reduce my commute
time almost three times. According to Basso et al. (2019), utilitarian needs require a longer time
to make a purchase decision which sometimes results in delay when there is an overload of
choices.
Similarly, my decision to purchase a car was also extensive. I had to consider many alternatives
by collecting information from different sources, and it took considerable time to reach my final
purchase decision. It took almost three and a half months from considering a car to purchasing a
car, as my involvement in collecting information to ensure that I made a good decision was very
high.
From the eye of Maslow’s Hierarchy of needs, I found that I would satisfy several needs with
this car. For example, when I save some time while commuting, I will save some extra time for
my rest, enhancing the satisfaction of my Physiological need. Furthermore, although my main
concern with purchasing a car is to reduce commute time, this purchase will indirectly satisfy my
needs of love, belongingness, and esteem as I will have improved acceptance and affiliation from
my social groups, boosting my self-esteem ultimately. Once I had ensured that the car had
become my need and not just being impulsive or motivated by false stimuli, I moved towards the
information search step.
2. Information Search:
For information search, my first source was to go to Google and search for the cars I have heard
of from my friends or have seen on roads that people usually use for their daily tasks, including
commuting to the workplace. I spent almost a week searching for different cars available from
popular companies. However, after that, I sought related information from my friends and
colleagues who already owned cars and used them for the same purpose. These peer groups
suggested some cars I already had googled. However, the information I got directly from them
was more convincing about the options I had already narrowed down.
Moreover, as this is a digital era and social media platforms are inter-connected, I also got some
advertisements of cars similar to my search on my Facebook feed, through which I further
explored information. Interestingly, many Facebook groups are specifically made for the users of
different kinds of cars through which they share their experiences and seek help and guidance
from other users. Initially, I was interested in buying Mazda CX-3, but after talking to peer
groups, I started considering many other alternatives. Moreover, my knowledge of electric
vehicles helped me analyze the different attributes of the variants more critically (Giansoldati et
al., 2020). Furthermore, once I had enough information about the alternatives available, I moved
to compare those alternatives according to my needs.
3. Evaluation of Alternatives:
To evaluate alternatives, I had to have information about all the alternatives available to me that I
would like to consider for purchasing. The four alternatives I narrowed down included Mazda
CX-3, MG ZS, Honda HR-V, and Toyota Yaris Cross. The specifications of these alternatives
helped me in choosing these four. My primary concern was to have a car that could make my
commute shorter. Thus, going for high-end specifications was not my concern. Also, I had a
limited budget of $30,000. The only option I added out of my budget was Honda HR-V which I
planned to get if its features amazed me more than the others. For the remaining amount, I would
have opted to get a loan. To look deeper, I compared these four alternatives as a table (Drive,
2023). The table is attached as Appendix 1. After complete analysis, I discovered that all of my
needs could be fulfilled by MG ZS, which also has good reviews. I will also not have to get an
extra loan and will save some amount for any future purchase.
4. Purchase:
Finally, once I decided to buy MG ZS, I had to choose the payment options. The MG Port
Melburne showroom salesperson offered three payment methods: cash, loan, and novated lease.
Unfortunately, I was not eligible for the last one because my company did not have that offer in
my contract. I could have secured a loan from a bank with my current salary, but I wanted to pay
less in the form of trust as interest rates in Australia for car financing are very high. Also, the
insecurity of not owning the car to myself wholly was another reason not to get a loan.
Furthermore, since all other options got erased, and I had enough savings in the form of cash
which I did not need for any other big purchase soon, I opted to make payment for the car by
cash. This way, I owned the car entirely as soon as I drove it from the showroom.
5. Post-Purchase Behaviour:
Some of my cognitive dissonances were reduced when I started driving MG-ZS for my daily
commute. My commute time was reduced significantly, and I started to have mental satisfaction
while reaching the workplace as I had to travel while enjoying music in my car rather than
hustling through a tram full of the public with the crowded place and disturbing noises. It has
been observed that people traveling by tram have been increasing rapidly, making commutes
difficult for travelers (Jacks, 2018). Moreover, it also had good space and ample boot room,
which further reduced cognitive dissonance. However, as a few weeks passed, and I started
testing the car with different scenarios, such as needing high acceleration and flooring the pedal
to complete, I discovered new cognitive dissonances that I did not consider during my decision-
making process. The car's engine does not respond in time when I floor the gas pedal, resulting
in late acceleration. It initiated my further research I found out that users have been experiencing
this problem for a while now. A user named Chris asked in a Facebook group from other users
whether they were also experiencing the problem of delay in acceleration in MG-ZS or not
(Aylward, 2022). It also has a noticeable body roll when it turns, making me nervous about the
possibility of the car rolling over. Therefore, I have to drive carefully with this car, whereas I
could do it more comfortably with my previous vehicle back in my home country. As I had
comfort in this area with my previous vehicle, I did not consider it while comparing alternatives
because I was not expecting this problem in a car.
However, my cognitive dissonance was mitigated to some extent as MG-ZS had a guarantee of 7
years from the company, which gave me mental peace that I would be getting things repaired or
replaced if any part of the vehicle got faulty. Also, the company has been focusing on building
customer relationships through relationship marketing, such as I was offered free car services for
a few months in the first year. In addition, as I experienced the service centers of MG, I found
out that they do the services and checkups with high standard quality that no customer goes
home without being satisfied.
Appendix:
Company MG-ZS Mazda CX-3 Toyota Yaris Cross Honda HR-V
Transmission 4 Speed Automatic 6 Speed Sports Automatic 10 Speed Constantly 1 Speed Constantly
Variable Transmission Variable Transmission
Doors 5 5 5 5
Seats 5 5 5 4
Fuel Efficiency 7.1L / 100km 6.3L / 100km 5.4L / 100km 5.8L / 100km
Number of Gears 4 6 10 1
Transmission Type Automatic Sports Automatic Constantly Variable Constantly Variable
Transmission Transmission
Audio - Aux Input USB Audio - Aux Input Socket Audio - Aux Input USB Audio - Aux Input USB
Socket (MP3/CD/Cassette) Socket Socket
Bluetooth System Audio - Aux Input USB Socket Bluetooth System Bluetooth System
Multi-function Control Audio - Input for iPod Multi-function Control GPS (Satellite Navigation)
Screen - Colour Screen - Colour
Smart Device App Bluetooth System Radio - Digital (DAB+) Multi-function Control
Display/Control Screen - Colour
Smart Device Integration Multi-function Control Screen Smart Device App Radio - Digital (DAB+)
- Apple CarPlay - Colour Display/Control
Speed Dependant Radio - Digital (DAB+) Smart Device Integration - Smart Device App
Volume Stereo Android Auto Display/Control
Comfort Adjustable Steering Col. - Adjustable Steering Col. - Tilt Adjustable Steering Col. - Adjustable Steering Col. -
Tilt only & Reach Tilt & Reach Tilt & Reach
Air Conditioning Air Conditioning Air Cond. - Climate Control Air Cond. - Climate
Control
Air Conditioning - Pollen Armrest - Front Centre Cruise Control - with Brake Armrest - Rear Centre
Filter (Shared) Function (limiter) (Shared)
Multi-function Steering Multi-function Steering Wheel Power Door Mirrors - Multi-function Steering
Wheel Folding Wheel
Power Door Mirrors Power Door Mirrors - Folding Power Windows - Front & Power Door Mirrors -
Rear Folding
Power Windows - Front Power Windows - Front & Starter Button - Key/Fob Power Windows - Front &
& Rear Rear Proximity Rear
Seat - Height Adjustable Remote Fuel Lid Release Voice Recognition Seat - Height Adjustable
Driver Driver
Starter Button
References:
Drive 2023, Compare Price & Specs, Drive, retrieved 24 April 2023,
<https://www.drive.com.au/compare-specs/#compare=f3bf46f0ccf2436a>.
Jacks, T 2018. Tram patronage booming, including on weekends, new data reveals. The
Age, retrieved 24 April 2023, <https://www.theage.com.au/national/victoria/tram-
patronage-booming-including-on-weekends-new-data-reveals-20180914-p503ui.html.>.
Layne, R 2018, Why Do Consumers Make Bad Decisions?, Forbes, retrieved 24 April
2023, <https://www.forbes.com/sites/hbsworkingknowledge/2018/04/19/why-do-
consumers-make-bad-decisions/?sh=1b1aec872f8c>.