The objective is to determine the proper combination of a limited number of attributes which influences consumer's mind the most and affects the buying behavior. Conjoint Analysis is done by showing the respondents a controlled set of potential products and analyze how the consumers made their preferences or how they rank the different attributes and then marketing researchers may be able to determine the values of each attributes. The values can be used by the company to develop new products, Improve old ones and generate revenue.
In his study, he stated that Filipino Passenger car owners consider attributes when deciding upon a passenger car. According to him, Flossing put more importance on price than on any other attribute. In his journal, Doctor Marvin Cruz considered interaction effect as a predictive technique in marketing research. An interaction effect is a respondent's choice between two or more attributes in which interactions influence respondent's choices. In his Journal, he discussed about two automobile passenger car namely: Toyota 1. 3- liter Bios and Honda 1 . 3-liter City. He cited that some consumer s may prefer to buy Toyota 1 . -liter Bios for no more than PH 539,000. 00 but some respondents may prefer to buy the Honda 1 . -liter City at a higher price than PHI,OHO. O because they view It as a more prestigious car than Toyota. The choices according to Doctor Cruz, Is Influenced by Interaction between two attributes namely price and brand. Not all attributes were considered In his study because of technical restrictions In the statistical methods used. Therefore, the study chose to determine qualitatively the attributes that may be considered important by the consumers. Data were collected from a sample of 300 randomly selected respondents.
The first 100 respondents were college students (18-24 y/o) from Atone De Dave University, UP Mindanao, University of Mindanao, Holy Cross of Dave College and Berkshire College. The next 100 respondents consisted of junior professionals (25-39 y/o) while the last remaining 100 respondents were senior professionals (40-64 y/o). In his Findings, Doctor Cruz concluded that all six attributes namely brand, price, style, feature and financing scheme contribute to the total worth or utility assigned by the mall groups of respondents. He also concluded that price significantly affects the total worth of the passenger car.
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The total worth or utility of either brand (Toyota/ and) decreases as price increases. The 3 main segments ( college students. Junior 1. 3- liter Bios and Honda 1 . 3-liter City. And Lastly, that Toyota is the more preferred brand of both senior professionals and Junior professionals. On the other hand, Honda is the more preferred brand of the college students. Additional findings: There are six consumer segments that prefer Toyota than Honda while there are only three consumer segments that prefer Honda. In terms of size Toyota is preferred by around 63% of all respondents while Honda is preferred by 37% of all respondents.
In terms of sex, grouping and age, Toyota is more preferred by male college students from the University of Mindanao who are about 20 y/o, male Junior professionals around 32 y/o , male senior professionals who are about 45 y/o, male senior professionals around 46 y/o and female Junior professionals who are about 31 y/o. On the other hand Honda, is more preferred by female Junior professionals who are about 31 years old, female college students who are about 20 years old and female senior professionals who are about 43 y/o.
Thru the finding and conclusions of the study it is safe to say that consumers vary according to their value, preferences and range of other characteristics (Elli, Kettle and Sahara Moorish 1992). Not only do consumer exhibit differences from each other, but this also illustrates that if a specific marketing decision may suit a consumer it may not work out for the other. Consumer preferences are based mainly on their belief about how objects perform on their key attributes. Consumer also choose product attributes base don which would give then the best value and benefit sought.
Consumer's preferences may also vary because of their particular experience ND the way they gather and process information. Consumers also consider price as a sacrifice. The Utilities assigned to a passenger car diminishes as price increases. Consumer are price-sensitive buyers which means they are divided by two kinds consumers who are willing to pay for the brand they like and consumer's that will not sacrifice price for the brand they like. Dave Consumers, based on the study, are those consumers who are not willing to pay price premium for a brand they like.
Given this findings, good pricing can play a big role in maximizing number of consumers to pay for the brand they like. Honda and Toyota may have to check their pricing strategy to be able to understand the price sensitivity of their consumers and the possible trade -offs consumers are willing to make between price and product characteristics. The study also showed that passenger cars may be produced with different features that will suit each market segments (students, Junior professional and senior professionals ).
Doctor Crud's recommendation is that using segmenting strategy for a car dealership in Dave City treat the different segments of consumers as different in their preferences for new 1 . -liter car passenger cars. He also cited that each of the brand Toyota and Honda should study further the market segment in which they cannot penetrate well and also monitor possible changes or shifts in the preferences of the penetrated market. First of all, since price is an issue raised in this Journal, I would like to raise the difference between Quality and Value(Price).
Quality and Value(Price) are attributes the company. Quality creates value for the product in the eyes of the consumers. Surprisingly, consumers are the ones who defines the value of a product as a reference by analyzing the performance of the product relative to its cost. The company now will be the one to ensure the quality of the product that will provide the consumer the performance it is looking for. Quality is important but consumers purchase a product not because it has quality but they will not buy it in the absence of quality.
My first concern for this Journal is Doctor Marvin Cruz failed to raise that quality is still an attribute that is very much considered by Filipinos/ Davison especially Private buyers. A great number of consumer in the Dave City market if to from experience, searches the web, asks friends, acquaintances and relatives which brand is more durable and which brand has a higher quality. If quality was included in the survey questionnaires I think results will be different.
Another thing to be considered which is a very integral part in choosing a car is the safety, Doctor Cruz failed to address the issue of safety in his Journal, low price without safety of the passengers inside the car is useless. For one, According to the Wall Street Journal, Toyota has an issue of recalling 6. 39 million vehicles from across the globe. Toyota found defects with seat rails, cables connected to air bags, engine starters, steering column brackets and windshield-wiper motors.
These defects are directly connected to the safety of the passengers inside the car. In March, Toyota agreed to pay a $1. 2 billion criminal penalty in a settlement with the U. S. Justice Department, after the company acknowledged having misled consumers about safety problems related to unintended acceleration of a number of its vehicles. Problems related to sudden acceleration resulted in the recall of millions of vehicles from 2009 through 2011.
However, it was on 2009 that Toyota started recalling its vehicles, noting that this journal is made on 2003 1 . 3-liter passenger cars. On the other hand Honda cars had some share of mishaps in its vehicles, according to Handsomeness. Com, transmission failure and premature brake wear among the top list when it comes to safety concerns. Lastly, in the Journal Doctor Cruz failed to raise the maintenance of both brands. The price may be cheap but you will be surprised at how much you have spent on the car's maintenance.
I agree when Doctor Cruz raised the issue that ACH of the brands-- Honda and Toyota should have a more thorough study in relation to the market segments in which they are not penetrating well, I think the reason why Honda has a much lower amount of respondents is the fact that Honda lacks marketing research and strategy. Toyota on the other hand has been in partnership with various Banks in providing in house financing for individuals and companies. Also, a reason why Toyota is winning in the market is its parts and accessories are easily accessible to Davison and is cheaper compare to Honda.
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