MKTG2204: Consumer Behaviour Assignment 1
Topic 1: How the Knowledge and Associations of a Brand Influences Decision-Making
The competition in today’s car environment is becoming increasingly intense, as car manufacturers search for any edge over competitors for securing a larger market share.
Car manufacturers are beginning to realise the importance of marketplace awareness of their brand within the minds of consumers, and how this recognition affects the decision making process. This paper will attempt to discuss how consumers research and purchase new cars, the importance of the purchase itself and how the knowledge and associations of a brand influence consumer ...view middle of the document...
The Škoda Fabia
The Škoda Fabia is a supermini produced by Czech automobile manufacturer Škoda Auto. The Fabia was available in hatchback, estate (Fabia Combi) and saloon (Fabia Sedan) body styles. The Fabia RS is a sporty, high performance car based off the rally car. The Fabia is marketed as a fun and light car, targeted to young, “up and coming” professionals. With the fun car image, Škoda aspires to widen its usual buyer market by appealing to the younger crowd.
According to Škoda, the target market for the Fabia RS is young people of age 18 to 35 who are into gadgets, consider having own individual style apart from trends, socially conscious, risk adverse, enjoy sporty performance and looking for value for money.
Current Awareness & Marketing Challenges
Based on our interview results, it is clear that there is definitely insufficient consumer awareness about the car model. There is moderate awareness of the brand Škoda but few were able to provide any extensive information about the brand. The Fabia RS is a relatively new model but compared to its counterparts from other brands such as the Suzuki Swift Sport, Audi A1 Sportback, Mini Cooper S and Volkswagen Polo GTI, it is overshadowed in the eyes of those we interviewed. Inferring from our interview responses, it is clear that the knowledge and associations of a brand do influence a consumer’s decision making. Most of the interviewees responded that they would not buy the Škoda Fabia as they are not familiar with the brand Škoda, or because they are loyal to other brands such as Honda and SAAB. This illustrates strong brand loyalty when it comes to car purchase and thus, it is important that Škoda emphasises more on marketing its brand and cars. One of the biggest marketing challenges for Škoda is that there is low awareness for its brand and products, and its inability to appear attractive to its target consumers. For example, many people thought that the Fabia was marketed towards older people.
Comparable with its industry rivals before mentioned, the Skoda Fabia RS’s performance according to review is comparable if not better in certain aspects. If performance is comparable across brand, consumers will tend to weight price heavily (Consumer Decision Making article), an area where Skoda fares well in. This is provided of course the brand and car itself are within...