Factors Influencing Car Buying

Factors affecting car buying decision of customers in USA

1.0 Introduction

This research proposal covers the critical along with the intriguing topic concerning the factors affecting the final car buying decision in USA which is well supported with the form of well-defined discussions. The research is also stretched out in a broad manner with the application of literature review as well as research methodology. In addition to information derived from different journals and magazines the research is broadened with explanations geared to facilitate the reader to grasp what is the research is all about which makes the research goes in tune with the readers’ expectations.

1.1 Research Background

Research can be interpreted as a search for knowledge

In the course of costumer decision making, social group makes up the influence which is the complex of people. There are probability of cases whereby customers are inclined to believe and embrace the advice by various social groups. This happens practically those who suggest the person are expert in their domain. (Armstrong, 2010)

Consumer decision making may also be influenced by the presence of family members, friends and popular people. So this indicates that this social factors shape up the decision making of a person. According to a study carried out in Los Angeles in 2012 among the owners of premium cars, 75 % respondents said their car buying decision were influenced by social class and well-known people while 13 % respondents bought a premium car because of the social role they held, 12 % of them purchased a car to imitate their friends. (Economist, 2012)

Similarly, the most influential factor for American vehicle buyer is a salesperson at the dealership. According to an annual study conducted by St. Louis-based marketing research firm Maritz Research, about 29% of car buyers in 2011 said that a salesperson had the biggest impact on their purchase or lease while around 19% buyers were influenced by family members and friends. (LaReau, 2012)

3.4

These companies, according to news reporter, have instilled superior brand awareness through premium quality. A prosperous brand image enhances the values of the product allowing a customer to instill favorable mindset and trust towards a brand of the product making the brand recognizable and perceivable through word-of-mouth. Thereby, having a recognized car brand helps the product to be the first choice of customers. (Zhang,