Singapore Institute of Management
Buyer
Behaviour
MKTG 1052
Chan Xue Mei, Evelyn S3188738
Ng Zixuan S3171540
Wong Li Yan, Virginia S3140178
Chua Sheena S3179333
Yeo Dawn S3171479
Chen Ying Rui, Evon S3150848
MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
Table of Contents
Executive Summary ........................................................................................................................ 5
Introduction ..................................................................................................................................... 7
1. Market ......................................................................................................................................... 8
1.1 Size of market ....................................................................................................................... 8
1.2 Market share.......................................................................................................................... 8
1.3 Market position ..................................................................................................................... 8
1.4 Company‟s principal product in terms of features and benefits ........................................... 8
1.5 Positioning of the product ..................................................................................................... 9
1.6 Product life cycle stage ......................................................................................................... 9
2. Competitors ............................................................................................................................... 10
3. Identification of Target Market ................................................................................................. 11
3.1 Primary Target Segment ..................................................................................................... 11
3.2 Potential Market Segments ................................................................................................. 16
Selected Target Segment............................................................................................................... 17
4. External Influences ................................................................................................................... 17
4.1 Culture and Subculture ....................................................................................................... 17
4.2 Demographics ..................................................................................................................... 18
4.3 Group Influence .................................................................................................................. 18
5. Internal Influence ...................................................................................................................... 20
5.1 Needs and Motives .............................................................................................................. 20
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
5.2 Perception ........................................................................................................................... 20
5.3 Learning .............................................................................................................................. 22
5.4 Lifestyle .............................................................................................................................. 22
6. Consumer decision making processes ...................................................................................... 24
6.1 Information Search.............................................................................................................. 24
6.1.1 Level of involvement and decision making ................................................................. 24
6.1.2 Internal Search ............................................................................................................. 24
6.1.3 External Search ............................................................................................................ 24
6.1.4 Awareness Set .............................................................................................................. 24
6.2 Evaluation and Selection..................................................................................................... 25
6.2.1 Evaluation Criteria ....................................................................................................... 25
6.2.2 Decision rules............................................................................................................... 26
6.3 Store choice and purchase ................................................................................................... 27
6.4. Post-purchase process ........................................................................................................ 27
6.5. Disposal.............................................................................................................................. 28
6.6 Brand Loyalty ..................................................................................................................... 28
7. Marketing strategy .................................................................................................................... 30
7.1 Marketing Mix .................................................................................................................... 30
7.1.1 Product ......................................................................................................................... 30
7.1.2 Price ............................................................................................................................. 31
7.1.3 Promotion..................................................................................................................... 31
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
7.1.4 Place ............................................................................................................................. 32
8. Evaluations and Recommendations .......................................................................................... 33
8.1 Evaluations of Advertising Campaign ............................................................................ 33
8.2 Future Recommendations ............................................................................................... 34
8.2.1 On Product Enhancements ............................................................................................... 34
8.2.2 Improved Marketing Communications ............................................................................ 35
8.2.3 Improved Purchase Experience........................................................................................ 35
8.2.4 Enhancing Customer Satisfaction .................................................................................... 36
8.2.5 Identifying Potential New Customers .......................................................................... 36
9. Conclusion ................................................................................................................................ 37
Reference List ............................................................................................................................... 38
Appendix ....................................................................................................................................... 40
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
Executive Summary
For any retailer or businesses, the key to a successful strategy is based on the understanding of
consumer behaviour. In our report, we will examine each marketer‟s comprehension of consumer
behaviour to influences in marketing campaigns and advertisements. We will be comparing with
Kia Cerato Forte against Toyota Corolla Altis.
Kia has a potential growing market and positions itself as a value for money vehicle for what it
can offer. In this case, Kia Cerato Forte is offering their products at a more affordable range, thus
they also have more equipment and features such as having a classy interior ambience. Whereas,
Toyota Corolla Altis had positioned themselves at low cost and tinged with some sporty feel due
to the sleek body and sporty features. Other direct competitors also include Honda Civic and
Hyundai Avante. The indirect competitors are Nissan Sunny and Chevrolet Cruze.
In the external influences, three main aspects that are looked into are: culture and subculture,
demographics and group influences. Culture influences on the norms that set on certain
behaviours deemed appropriate for all people in a social context. In Singapore, having a car is
seen to a social desire and people see it as possessing a higher status or even a better life.
Subcultures within the group like car forums would also participate in providing information and
feedback to influence potential buyer group. Genders also play a role in buying decision of Forte
because since the main target market is the young families that do not have necessary income to
purchase a car of a higher price range, therefore, women plays a very important role in
influencing their husbands‟ buying decision. Group influences such as knowledgeable car buyers
who acts like opinion leaders and enjoy exchanging information in the internet, colleagues and
peers will have a role in influencing the buyers.
The internal influences describe the means by which consumers‟ process information while they
are being influenced by a variety of groups, situations and marketing efforts. In this section, the
four main aspects that are explored are needs and motives, perception, learning and lifestyles.
Forte can fulfills needs by providing convenience on basic transportation as well as enhancing
the need for stable self-esteem. In order to create awareness in consumers‟ frame of mind, the
frequency of advertisements should be increased. Advertisement should also capture attention of
potential buyers and thus interpretation of these advertisements should be focused on Forte‟s
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
target buyer segmentation. Operant conditioning is used in to aid learning because we feel that
the most important part of the car‟s buying process is the test drive of the car itself before
making a decision. Finally, lifestyle are enhanced with Forte with „something better‟, „look at
me‟ and conventional family life.
Subsequently, we examined the consumer decision making process to find out how consumers
make decision on purchasing cars and where should marketers should place their information
and provide value-added services to retain and attract consumers. With a high involvement
product like Forte, consumers engaged in extended decision making. In which, they will assess
the internal and external information. The main evaluation criteria used for purchasing a car are
price, design and performance. Forte‟s consumers will be looking into certain aspect such as
affordability. Therefore, rank brands on evaluation importance such as lexicographic and
elimination by aspects will be possibility used. In order to build brand‟s loyalty, relationship
marketing can be used as an approach.
Lastly, marketing strategy in term of 4P‟s (Product, Price, Promotion and Place) of both Forte
and Altis are scrutinized to reach a conclusion on their application of knowledge in
understanding the consumer‟s behaviour and recommendations will be proposed for further
enhancement.
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
Introduction
In this report, we will be exploring the impact of buyer behaviour on marketing strategy. We had
chosen an automobile industry. We will be using Kia Cerato as our main product and Corolla
Altis as our competing product. In our findings, they are both high-involvement products with
similar price ranges and primary target segmentations. However, no two products are identical;
they have different outlooks, different marketing strategy employed by two different company
and thus some functional differences. Here, we shall scrutinize in the each marketer‟s
application knowledge of consumer behaviour theory and principles, in order to reach a
conclusion of which is more successful. Finally, recommendations will also be made for further
improvement.
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
1. Market
1.1 Size of market
The total car population in August 2009 is 570440.
In the month of August 2009, car‟s market size make up of 62.34% of the total motor vehicle
population. (Appendix A1)
1.2 Market share
In the month of August 2009, Kia‟s market share is 0.082% of the total car market size.
(Appendix A2)
1.3 Market position
Kia motors positions itself in the market as one of the world's fastest growing auto brands and
also as the world consumers‟ exceptional vehicle at an unbeatable value. It does so by pricing
their products at a more affordable range as compared to its rival the Toyota Corolla Altis.
1.4 Company’s principal product in terms of features and benefits
Designed by Peter Schreyer, the new Kia Cerato Forte exudes a more aggressive presence with
its gaping black grille and strong creases that compliments the car‟s overall shape. The Cerato
Forte is one of the most powerful in its 1.6-litre unit segment being bettered only by the 125bhp
1.6-litre power plant found in the Honda Civic. Its maximum torque of 156Nm is also class-
leading, beating the Japanese engine by 5Nm. In addition, the 2.0-litre Cerato Forte also leads
the pack for power.
As for the size wise, it is 30mm longer, 40mm wider and 10mm lower than the previous Cerato
with changes made in the interior come in the form of new better quality buttons and a newly
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
designed centre console. The instrument cluster, like the exterior is clean and is easily readable.
On top of that, there are some eye-openers equipment which includes a trip computer, six-CD
changer, tilting and telescoping steering wheel, automatic climate control, parking assist and
electronic stability control that will make the Cerato Forte stand apart from its rivals, since
features like these are usually found in cars priced $10,000 to $20,000 more (Lee 2009).
1.5 Positioning of the product
The Kia Cerato Forte position itself as a tremendous value for money vehicle. It does so by
having more equipment and features such as having a classy interior ambience and the driving
position is extremely adjustable thanks to height adjustment for the seat and a tilt and telescopic
steering column which is a rarity in the price segment than any of its competitors.
1.6 Product life cycle stage
Product life cycle (PLC) has to do with the life of a product in the market with respect to
business costs and sales measures. A product has a life cycle is to assert four things: 1) that
products have a limited life, 2) product sales pass through distinct stages, each posing different
challenges, opportunities, and problems to the seller, 3) profits rise and fall at different stages of
product life cycle, and 4) products require different marketing, financial, manufacturing,
purchasing, and human resource strategies in each life cycle stage. (Levitt 1965)
With regards to Forte, it is in the growth stage of the PLC as it can be seen by the increasing
public awareness, price decreases due to the increasing competition and the rising sales volume.
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
2. Competitors
The direct competitors of Kia Cerato Forte are namely Toyota Corolla Altis, Honda Civic,
Hyundai Avante and their indirect competitors are Nissan Sunny and Chevrolet Cruze.
Toyota Corolla Altis is Singapore‟s top selling car (wilbursuen.com 2009), positioning
themselves at a low cost with differentiation of a sporty feel due to the sleek body kits and sporty
features. They are also positioned in consumers‟ minds as reliable work horses.
The Honda civic positioned itself in the upper-market in term of price; however they differentiate
themselves by their sophisticated sporty design, especially the two-tier dashboard interior that
was found in high end sport cars.
Hyundai has portrayed itself to be efficiently equipped with low cost productions and the
reputation of a car valued for money. Although the Avante has a low cost position, they did not
differentiate themselves well enough to their competitors.
While Chevrolet Cruze tries to differentiate themselves as a family car, its‟ limited boot space
will struggle with a full weekly shop and a baby‟s pram. Its design appeal and quality focus to
Singapore's value segment as a budgeted car enables Cruze to have low cost position.
Last but not least, Nissan Sunny has a niche market with a dedicated group of fans who likes the
old car mechanism for example hydraulic steering wheel as compared to the automatic ones.
Refer to Appendix B1 for detailed specifications of each car.
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
3. Identification of Target Market
3.1 Primary Target Segment
Kia Cerato Forte Target
Segment 1
Income Group $2,000 - $4,000
Family Life Newly-wed Family (with young children)
Cycle
Dual Income Family
Demographics
Population Size 4.8 million
Target Age 25years – 34 years
Structure
Population: 553,000
Personalities Budget-conscious
Altruistic
Outdoor and adventurous
Lifestyles Budget-constrained
Hectic schedules
Trendy lifestyles with frequent entertainments and
functions to attend.
Psychographics
Activities, Car club outings and networking with friends of the same
interests and interests in forums.
opinions
Interest in car tuning, constantly upgrading car parts with
the latest technology.
Road adventurous
Stronger opinions on value-for-money cars
Prioritize convenience
Usage Heavy usage of car as a means of transport
Deal Proneness Attracted to promotional packages
Behavioural
Benefits Fuel efficient
Safety features
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
Kia Cerato Forte Target Segment 2
Monthly Income $3,500 - $5,500
Group
Family Life Cycle Married Family with children in their teenage years
Demographics Single Income Family
Population Size 4.8 million
Target Age Structure 35years – 44 years
Population: 625,000
Psychographics Personalities Family-oriented
Practicality
Easy going
Lifestyles Laid-back
A bigger-sized family with children and elderly
members.
Activities, interests Prioritize other family members‟ needs above own
and opinions interests.
Frequent family outings.
Behavioural Usage Heavy usage of car for transport.
Deal Proneness Attracted to promotional packages
Benefits Fuel efficient
Safety features
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
Toyota Corolla Altis
Target Segment 1
Demographics Income Group $2,500 - $4,500
Family Life Cycle Married Family for at least 10 years
Average Income Family
Population Size 4.8 million
Target Age 25years – 34years
Structure
Population: 553,000
Personalities Family-oriented
Psychographics Egoistic
Urbanistic
Lifestyles Average spending power
Laid-back
Activities, Road accessible get-away during the
interests and weekends.
opinions
Business trips by car to nearby countries.
Ferry the children to and fro from schools
Stronger opinions on branding
Behavioural Usage Heavy usage of cars as a means of transport.
Deal Proneness A small extend of attraction with promotional
packages
Benefits Fuel efficient
Brand loyalty
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
Toyota Corolla Altis
Target Segment 2
Monthly Income $3,500 - $5,500
Demographics
Group
Family Life Cycle Married Family with children in their teenage
years
Single Income Family
Population Size 4.8 million
Target Age 35years – 44years
Structure
Population: 625,000
Psychographics Personalities Family-oriented
Practicality
Lifestyles Laid-back
Emphasis on the comfort of daily lifestyle
Activities, Stronger opinions on branding.
interests and
opinions Transport used to ferry the children and elderly
members.
Behavioural Usage Heavy usage of cars for transport.
Deal Proneness Brand loyalty
Benefits Fuel efficient
Brand loyalty and its years of reputation in the
industry.
With the age group 25 – 34years old, this group of people has an average monthly income of $2,000 to
$4,500, these consumers are brand loyal and seeks a value for money means of transport meant for
heavy usage, therefore values fuel efficiency.
With the age group 35 – 44 years old, this group of people is earning a monthly income of $3,500 to
$5,500. This will be a matured family where priorities for children and the elderly members are ranked
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
above their own interests. They lead a laid back and down-to-earth lifestyle with the convenience of the
car as mainly for transportation needs. However, there is a substantial degree of brand loyalty for the
purchase of a car corresponding to the years of its brand reputations in the industry. The benefits of the
car features and performance levels are also important factors for purchase.
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
3.2 Potential Market Segments
Potential Market
Segment
Monthly Income $3,500 - $5,500
Demographics
Group
Family Life Cycle Single status personal
Means for social status upgrading
Population Size 4.8 million
Target Age 20years – 25years
Structure
Population: 625,000
Psychographics Personalities Work-oriented
Emphasis more on the outlook of the car
Lifestyles Active and adventurous
Enthusiastic about their work
Activities, Stronger opinions on outlook.
interests and
opinions Means of transport
Young entrepreneurs
Behavioural Usage Heavy usage of cars for transport.
Car as a status symbol
Deal Proneness Affordable with sporty outlook that the
younger generations will take a liking for
Benefits Nicer outlook
Have the sporty feel with a hint of classiness
Priced under the affordable range whereby the
young entrepreneurs are able to purchase it
The potential new target segment is between the age of 20 to 25 years old. With the active and
adventurous lifestyle they are leading, the classy yet sporty outlook of Forte will be able to suit
their needs and satisfy their urge for a symbol of status. Furthermore with its price at an
affordable range, we will be able to target successfully this group of people.
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
Selected Target Segment
We will refer to Kia Cerato Forte‟s primary target segment 1 stated above for sections 4-6 below.
4. External Influences
4.1 Culture and Subculture
There are several values in the society consistent with the consumption of the product. Firstly, it
is socially desirable to own a car, and people will work towards higher status and a better living
standard. Consumers believe that even though Japanese cars may be better than Korean cars in
terms of reliability, Korean cars offer the best value for money for the product they offer. It is
widely believed that the cost of owning a car in Singapore is very high, and this includes the
price of the car, the Certificate of Entitlement (COE), road tax, insurance, as well as fuel costs.
This target group is also concerned with saving up for a house and for future children, thus the
want to spend less on cars. Subculture groups such as those in the Cerato Forte Club Singapore
(ceratoforte.sg 2009), or car forum groups such as Singapore Cars Forum
(singaporecarsforum.com 2009) would also play a part in providing information and feedback
influencing potential buyer group.
The product might appeal most to the early adopters as they are well educated and relatively
successful in their careers and are willing to take calculated risk in innovation like the Forte
instead of just settling for the safer choices. They also use many information sources to aid their
decision making. They dislike failure therefore any problems they have from the Forte would set
them back.
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
4.2 Demographics
As previously mentioned, demographics plays a big role in describing the population‟s behaviour
in consumption. The age group of 25-35 is the main target group of the Cerato Forte. This is
because the Forte is targeted at young families that do not have the necessary income to afford a
car of a higher price range (for example the 70-80 thousand price range) and yet needs a
“workhorse” car to satisfy the basic needs of the family including space, comfort and have a low
maintenance cost.
Gender also plays a part in the buying decision of Forte. Although the Forte is targeted more for
young family man due to its size and design characteristics, modern day women plays a very
important role in influencing the decision of their husbands as they also have a share in driving
the family car. Thus it is important for the Forte to have features that attracts the female gender
into buying one.
Lastly, socioeconomic influences play a major role in influencing consumption. The main factor
is the income group of the target segment as the rising costs of owning a car in Singapore (rising
fuel price, insurance, road tax, Certificate of Entitlement and Electronic Road Pricing) forces
consumers to think twice about spending more money on the car itself as they may not be able to
upkeep the car.
4.3 Group Influence
Consumers in the car industry are highly susceptible to reference group influence elements. The
target group of Forte is affected by all three types of reference-group influence and they are the
normative, informational and identification influence.
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
Informational influence is especially strong in the case of knowledgeable car buyers as they
enjoy exchanging information with knowledgeable peers especially in the target age group where
they frequently search for online information on the Forte as well as share information in special
interest groups such as the Forte Club forums or any other online car forums. It is a common
belief that Korean cars do not have the quality to compete with Japanese cars such as the Toyota
Corolla Altis and feedback from previous generation Korean cars owners give them that bad
reputation and this information may be spread around.
Normative influence may come from the buyer‟s peers, colleagues or even close family members
as they would mock other buyers who had bought a KIA Korean car or even those who rushed to
buy the Forte. This would set the buyers back as they do not want the same situation to happen to
them when they decide to buy one.
Identification influence is present when buyers in the target group see executive dressed, people
in the television advertisement of Forte designing the car with Peter Schreyer, an ex Audi
designer heading the team. They will then feel that the car is designed and used by executives
and want to buy one. Buyers will also be influenced when they see people around them rushed to
book a Forte when it was launched and decides that is it a good car and decides to buy it.
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
5. Internal Influence
5.1 Needs and Motives
Maslow's hierarchy of needs is predetermined in order of importance. It is often depicted as a
pyramid (Appendix C1) consisting of five levels: the lowest level is associated with
physiological needs, while the uppermost level is associated with self-actualization needs,
particularly those related to identity and purpose.
With the Cerato Forte positioned itself at a more affordable price range with a list of equipments
that is rarely seen in the price segment, the esteem needs of many can be fulfilled especially
those in the target age group. Most people have a need for a stable self-esteem which includes
need for the respect of others, the need for status, recognition, fame, prestige, and attention.
Deprivation of these needs can lead to an inferiority complex. In addition, the classy interior
ambience that is incorporated in the Forte makes the car looks prestige as a result it helps in
fulfilling the need for status and prestige.
Furthermore, getting a vehicle is most likely to be one of the motive in most people at the target
age group of 25 to 35 years old thus with the Forte‟s affordable price range they will be able to
attain it. In this way, the esteem level in the Maslow's hierarchy of needs will be satisfied.
5.2 Perception
Perception is an important part of consumer information processing. It involves four stages
including exposure, attention, interpretation and memory. The first stage of exposure means that
we should expose buyers to the advertisements by increasing the frequency, the media and the
location of the advertisements. This can be done by having very large posters on a building,
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
having road shows in prominent places such as along Orchard road or Shenton way, constantly
exposing buyers to online website, magazine, newspaper, television and radio advertisements.
After potential target buyers have been exposed to these promotional efforts, they must be able to
draw the attention of the buyers. Print advertisements such as those found in posters, magazines,
newspapers and online websites must capture the attention of potential buyers but using large
advertisements that are striking in colour drawing their attention to the style and design of the
Kia Cerato Forte using contrasting colours as well as using eye catching headliners such as
„Style, we are there‟. The quantity of information in these advertisements should not overload
and should only contain information such as the brand and name, the car focused on in the case
the Forte, the price of the car, how to contact us and if space allow, the features included.
Television advertisements should portray an image of a very stylish and nice ride through a long
stretch of road with beautiful scenery show casing the interior as well as the exterior of the car,
with music to match, enticing buyers to come down to the show room to have a look.
Lastly, we must influence the interpretation of these advertisements focused on our target buyer
group. This means that we cannot have advertisements that offend the female gender but
something that appeals to both genders as buying a car in this target segment is a family decision.
The message we are trying to convey is that you can have a car as good as, if not better than a
Japanese car such as the Corolla Altis at a fraction of the price with many more family orientated
feature to add value for money. This must not be misinterpreted to be a cheapskate choice. Thus,
it is important to keep the information straightforward and simple.
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
5.3 Learning
The theory most applicable to the car industry and especially for Forte‟s target segment is the
operant conditioning theory of learning. This is mainly because buying a car is a huge investment
and it is not something you can liquidate easily. That is why the final and most important part of
the car‟s buying process is the test drive of the car itself before making a decision. The positive
reinforcement received such as the ride comfort, power, the interior and exterior design, the
additional features (global positioning system, reverse sensor and auto climatic air conditioning)
and the build quality plays a big role in shaping consumers for the purchase. Negative
consequences such as vehicle breakdown or functions failing will act as punishment and have the
opposite effect. This is why product quality and customer satisfaction is so important.
Therefore, the first step of this learning process and the responsibility of us marketers is to use
advertisements such as newspaper advertisements and road-shows to attract consumers to come
down to the car showroom to test drive the car. In order to appeal to the targeted buyer segment,
we need to emphasize the nice styling of the car and the design in order to mask the not so
plausible image of Kia. The pricing must also be very visible in the advertisements as it plays
one of the most crucial roles in reinforcing buyers to make the purchase.
5.4 Lifestyle
The types of lifestyle segment identified that is related to Kia Cerato Forte are something better,
look at me and conventional family life.
With the Kia Cerato Forte priced at an affordable range, those under „something better‟ lifestyle
segment will be able to purchase it fulfilling their desire in terms of improved status with car
ownership. They would stretch their budget by taking a car loan in order to achieve this.
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Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
The „look at me‟ segment would spend all the money they earn and are self-centered and peer
driven who are highly conscious of image and fashion. This segment would be concerned when
their peers who own cars and them not having one affecting their ego. These people also focus
on the stylish aspect of the Forte where looks take the priority when making a decision.
Lastly, the „conventional family life‟ segment may be the major lifestyle segment Forte is
targeting. This segment consists of younger families whose life centre around marriage and
raising a family and strives to improve family‟s standard of living and enjoy spending time with
friends and family. This can be achieved by improving standard by owning a car that is
affordable and allows them to reduce the trouble and time spent on travelling using public
transport. Forte is also a mid-size sedan suitable for small families such as these big enough for
the children.
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Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
6. Consumer decision making processes
Consumer decision making processes include problem recognition, information search,
evaluation and selection, store choice, purchase and post purchase processes (Appendix D1).
6.1 Information Search
6.1.1 Level of involvement and decision making
Consumers are generally more involved in the decision-making process for product if they feel
risky in some way. The perceived risk in purchasing a car is high because it requires high
commitment, thus financial risk will occur if the product does not perform to its expectation. As
a result, in purchasing a complex and expensive product like car, consumers will engage in
extended decision-making and high level of involvement.
6.1.2 Internal Search
It comprises of past searches, personal experience and low involvement learning. Memories of
past experiences by checking on websites, friends‟ opinions on the cars‟ models, seeing different
cars on the road everyday will exert some influence on the consumers‟ purchasing decision.
6.1.3 External Search
It includes usage of internet in gaining more information such as accessing the car website,
comparing the cars‟ specifications and price, checking out in the forums on other consumers‟
experiences, opinions and attitudes about Kia Cerato. Consumers will also visit the car centre for
a test drive, thus having direct experience with the products.
6.1.4 Awareness Set
The table below shows the differences within each subset.
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Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
Awareness Set Definition
Evoked Set Brands the consumer is willing to consider for the solution of a
particular consumption problem.
Inert set Brand which the consumer is aware but towards which he/she is
indifferent.
Inept sets Brands which the consumers actively dislike and find it completely
unworthy for purchasing.
(Quester et al. 2007, pp. 95 – 96)
It will depend on whether the consumer is a potential target segment of Kia, in order to
determine which subset Kia will categorize in. For instance, if a budget consumer will classify
Kia as an evoked set whereas a wealthy consumer will not consider, and hence Kia becomes the
inept set. As for the budgeted consumers that feel indifferent about Kia, may categorize it as the
inert set.
6.2 Evaluation and Selection
6.2.1 Evaluation Criteria
The main evaluation criteria used for purchasing a car are price, design and performance. For
Kia, price is the foremost important factor because it is targeted at the budget buyers. Others
criteria may includes features, country-of-origins and the technology.
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Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
6.2.2 Decision rules
The table below illustrated the five decision rules that the consumers may utilize for
comparisons.
Decision rule Definition
Conjunctive Brands that meet a minimum level on each evaluative criterion
Disjunctive Brands that meet a satisfactory level on any relevant evaluative criteria
Elimination by aspects Rank brands on evaluative criteria in terms of importance and
establish satisfactory levels for each. Start with the most important
attribute and eliminate all brands that do not meet the satisfactory
level. Continue through the attributes in order of importance until only
one brand is left.
Lexicographic Rank brands on evaluative criteria importance and select the one that
is highest on most important criteria
Compensatory Select brand that has the highest score over all the relevant evaluative
criteria
(Quester et al. 2007, pp. 139)
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Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
For purchasing car, consumers may be looking into certain aspects such as affordability.
Therefore, rank brands on evaluation importance will be possibility used. In this case, the two
decision rules that can be applied are lexicographic and elimination by aspects.
6.3 Store choice and purchase
In purchasing a car, the brand should be first considered before the selection of outlet. The
consumers have in mind the brand that he/she wants to purchase. Thus, the authorized dealer for
Kia is Cycle and Carriage and therefore consumers will purchase from them.
6.4. Post-purchase process
After purchasing Kia Cerato, the consumers will make an evaluation on the choice he/she had
made. It is common for consumers to experience doubt and anxiety, after committing into a
difficult, relatively permanent decision and giving up others attractive options. This type of
reaction is known as dissonance. Therefore not all the consumers will be satisfied with their
purchases.
Even so, marketers can reduce dissonance by increasing the desirability of the brand purchased
which can be done by providing excellent after-sales services to match consumers‟ expectation.
Marketers also can decrease the desirability of the rejected alternatives by engaging in
comparative advertising and positions Forte‟s strength against other potential competitors‟
weakness. In addition, marketers can design advertisement catered for recent purchasers, supply
positive information through the internet such as showing high satisfaction level in post-purchase
survey.
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
6.5. Disposal
There are two main ways to dispose a car- (i) to resell it at a lower value; or scrap it; (ii)receive
some money from the scrap-value and paper value consisting of the Certificate of Entitlement
(COE) and Preferential Additional Registration Fee (Parf) (OneMotoring.com.sg 2009). Through
the newspaper and the internet, it is relatively convenient to dispose the product. Therefore it
does not pose a problem to the consumers. However, consumers may take into consideration the
lower resale value of Korean cars as compared to Japanese cars when making a decision.
When the car is scrapped, it does not pose problem affecting the environment as the scrap
material will be used for recycles purpose. For example, some will end up in scrap yards where
some people will find the parts for their ride.
6.6 Brand Loyalty
In term of loyalty, Kia Cerato Forte‟s potential target segments are very different. For generation
X, they had been conditioned to expect affordable quality and expect value in order to stay loyal.
In contrast, generation Y tend to be not as brand-loyal as generation X and they are constantly on
a look-out for novel and innovative product.
Brand loyalty purchases are encouraged as Kia car owners might decide to turn to Kia again for
future purchases or even spread a good word to their peers by word of mouth, if they are happy
with their current car or when encouraged to do so. Utilising relationship marketing as an
approach, Kia can build loyalty with its customers by ongoing, expanding relationship with
company‟s current customers. Besides, providing excellent customer support services, Kia can
also design customer loyalty programs such as allowing owners of Kia cars to trade in cars at a
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Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
higher value when they buy another car from Kia so that consumers will consider staying on with
the brand.
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Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
7. Marketing strategy
7.1 Marketing Mix
7.1.1 Product
The inclusion of a trip computer, six-CD changer, tilting and telescoping steering wheel,
automatic climate control, parking assist and electronic stability control appeals to how the
Cerato Forte position itself, since features like these are usually found in cars priced $10,000 to
$20,000 more. (Car Singapore 2009) Thus it provides innovation at an affordable price.
The degree of innovation is considered continuous for the Forte as it offers minor innovation for
the mid size sedan class of cars. The characteristic that will most impede innovation for Forte are
type of decision and perceived risk. As car buying usually does not just involve the individual
but also the family members and their decisions are also being influence by peers. Furthermore
cars manufactured in Korea such as the Forte are being perceived by Singaporeans consumers to
have higher risk of failing. Thus, more quality endorsements are needed such as Kia showing the
Car Maker of the Year in United Kingdom award in advertisements to assure the Forte buyers.
Toyota Corolla Altis also offers similar features with an addition of a racing body kit but with
the interior colour limited only to beige (Toyota 2009) while the Forte offers three choices of
colours namely grey, black and brown. The characteristic that will most impede innovation for
Altis is relative advantage because it is priced at a higher value as compared to some of its
competitors that offers similar features.
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Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
7.1.2 Price
The important criterion for the Kia Cerato Forte is its price, as the primary target segment has
limited financial capabilities. Also since Kia cars are being manufactured in Korea which is
perceived by Singaporean consumers that they are of a lower quality to Japanese manufactured
cars, consumers are less willing to buy it at a higher price. Another surrogate indicator for the
Forte is that when consumers attribute the price of the car to its resale value in the second hand
market.
As for Toyota Corolla Altis, price is also an important factor. However consumers getting the
Altis are willing to fork out more since they are known for their well established reputation of
having both reliability and quality. This is due to the surrogate indicator which attributed a price
premium to the reliability and quality of the car.
7.1.3 Promotion
Value for money as it is packed with features that are available in the higher priced cars, class
leading engine performance, stylish and continental looking are the values that are important to
the Kia Cerato Forte that can be used in the communication strategy. Toyota Corolla Altis on the
other hand, emphasizes on the sporty looked coupled with quality assurance and reliability that
comes with Toyota reputation trusted and proven. These are the values important to the Altis that
can be used in the communication strategy.
The media use for advertising for both the Forte and Altis are newspaper article, national
television, car magazine reviews such as torque, their individual official website and also car
websites such as sgcarmart.com.
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Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
The communication strategy of trying to change buyers‟ perception of the previous generation
Kia cars being ugly and cheap looking into a new stylish and continental designed car. This is
especially successful when they launched the Forte with the “Guess What Car” campaign where
they masked the Kia logo and placed the car for viewing pleasure at numerous places such as
The Heeren, Vivocity and Chevron House (GuessWhatCar.sg 2009). They then revealed the car
to be the Kia Cerato Forte which surprising of the general public allowing them to reposition
their image.
The communication strategy of trying to change buyers‟ perception of the image of Toyota
Corolla Altis appealing only to the older crowd to a sportier image by fitting the car with a new
racing kit and associating it with the Formula One event proved to be effective. In addition, they
also advertised it through the various media and road shows. This is further substantiated by their
claim of Altis being Singapore‟s top selling car in its class.
7.1.4 Place
Both Kia Cerato Forte and Toyota Corolla Altis sell through agent, in this instance Forte‟s is
Cycle and Carriage and Altis‟s is Borneo Motors. They are located at Ubi which is in the east
side of Singapore and Leng Kee in the west, where most car dealer brands are situated. The type
of lifestyle is consistent with the distribution system requirements as the car showrooms are
clustered together at the above locations. Thus, it is convenient for car buyers of any lifestyle to
take a test drive of their different choices and make a decision.
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MKTG 1052: Buyer Behaviour: Kia Cerato Vs. Corolla Altis
Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
8. Evaluations and Recommendations
8.1 Evaluations of Advertising Campaign
Kia makes use of isolation by using a striking blue car and an almost all black background to
draw attention to the car. The colours used on the Forte were mostly grayscale, monochrome and
de-saturated. Only the Forte itself was in a striking blue colour. This immediately draws the
attention of readers to the car. Because of the lack of colour and abundance of details on the
other parts of the advertisements, it will take readers a little bit longer to decipher the rest of the
details. However, upon a closer look the advertisement shows more information and detail of the
interior, specifications and features of the car. The advertisement also features a free Forte body
kit with purchase. The cool colours use exhibits a sense of the Forte‟s elegance and power. The
list price is also clearly shown below the car as price is a major factor while advertising the Forte
Toyota chose a bright, warm and intense scheme which immediately sets the tone and mood for
the advertisement. The advertisement was half a page and is of a significant size that would
definitely attract readers and make up for not being placed on the front page. Toyota associated
them with the upcoming F1 event by placing F1 drivers aside their cars. The strong bold colours
give off a vivid imagery of substantial power and speed. Toyota also attempts to further entice
readers to head down to their showroom by giving free F1 tickets. They use a simple and
straightforward message conveying the major current promotions to entice readers to the
showrooms to view the racing editions of Corolla Altis.
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Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
8.2 Future Recommendations
By increasing promotions, Forte would garner a better position in the market and convert more
individuals to be a forte user. This would enhance its product positioning in consumer‟s minds
and create awareness. Consumers, who want a vehicle which is value for money, would take the
Forte into consideration.
Kia should position itself to offer stylish and features packed cars that are affordable and value
for money offering quality comparable to Japanese cars.
8.2.1 On Product Enhancements
Extend its current product line and come out with other designs. For example Kia could come
out with a 2 door Forte coupe or a Forte with a moon roof to further attract younger customers
that might be attracted to these sporty features.
Kia could allow their customers to design, personalize and customize their car.
An option to make the car look different from other cars will appeal to customers who want to
stand out from the crowd. It will further reiterate the stylishness of the Forte.
Kia could tie up with dominating car accessories leaders and give customers an option of a trade
up of stock accessories.
This will allow customers to trade up stock accessories for branded accessories at a lower retail
price. For example, instead of purchasing yokohama tyres from dealers at $800. Customers can
do so through Kia for $600.
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8.2.2 Improved Marketing Communications
Instead to name Cerato Forte, use Forte instead to get rid of previous Cerato image.
This will help Kia to build a new and ultimately more stylish and desirable image for the Forte.
i) Advertising on public transport areas to reach potential customer groups.
By advertising at bus stops and in taxis, Kia would be able to reach out to people who presently
do not own a car but have the intention to get one. This would be even more effective when the
effect of the advertisement dwells on them when they are going through the agony of taking
public transport.
ii) Advertising in Car websites, magazines and reviews.
A car is a high value purchase thus reduces the level of impulse purchase. Interested customers
would always look for available information before making a decision on whether to get a car.
iii) Sponsor the president star charity with Fortes. All stars will be chauffeured in the Kia
Forte.
The president star charity is a large scale charity event that is held in extremely high regard. By
sponsoring such an event, Kia will be able to create more awareness for their brand. They will
also build their image in the aspect of corporate socially responsible.
8.2.3 Improved Purchase Experience
A way to improve the purchase experience is to provide customers with information using other
forms of mass communications. This will allow customers to make fewer trips to the showroom
and save them time.
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Group Assignment: Impact of Buyer Behaviour on Marketing Strategy
8.2.4 Enhancing Customer Satisfaction
Kia could improve on their after sales service.
For example, they can work on a shorter waiting time for customer, a lounge to keep customers
entertained whilst waiting. The lounge could include computers, free wifi, snacks and
refreshments.
8.2.5 Identifying Potential New Customers
A viable potential customer group is the corporate clients.
Often when companies buy cars for their staff, they look for a brand image and fuel efficiency.
The Forte satisfies these two points and thus would make a great company car.
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9. Conclusion
Kia has effectively managed to market the Forte to their target market thus far. However, it is
essential that Kia recognizes that the Forte is still far from realizing its potential to the fullest and
can still be further marketed to the targeted market segments to enjoy a growth in sales as well as
market share. Kia should also identify other possible market groups by implementing some of
the many marketing strategies recommended. Sustaining their current achievement and
continuing to progress further will definitely facilitate Kia in altering the consumer behaviour
towards the Forte in the most positive light.
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Reference List
Borneo Motor, 2009, Borneo Motor Singapore, Borneo Motor, viewed 1 September 2009, .
Car Singapore 2009, Kia launches the new Cerato Forte for the Singaporean market!, Car
Singapore, viewed 20 September 2009, .
Forte Owners Group Singapore 2009, Forte Owners Group Singapore Forum, Cerato Forte,
viewed 20 September 2009,
Guesswhatcar.com 2009, Presenting the all new Kia Cerato Forte, Guesswhatcar.com, viewed
19 September 2009, .
Lee, J. 2009, Loud and proud: the Kia Cerato Forte arrives : Kia’s brand new version of its
small sedan promises greatness, Carbuyer, viewed 20 September 2009,
.
Levitt, T. 1965, Exploit the product life cycle, Harvard Business Review, vol. 43 no. 6, pp. 81–
94.
Land Transport and Authority 2009, New Registration of Cars by Make: Monthly Vehicle
Statistics, viewed 20 September 2009,
Land Transport and Authority 2009, Motor vehicle population by types of vehicles: Monthly
Vehicle Statistics, viewed 20 September 2009,
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One motoring 2009, Parf/COE rebates, Land Transport and Authority, viewed 20 September
2009,
Solomon, MR. 2007, Consumer Behavior: Buying, Having and Being, 7th edn, Pearson Prentice
Hal, New Jersey
SingaporeCarsForum.com 2009, Singapore Cars Forum, Anderson Internet Advertising Pte Ltd,
viewed 20 September 2009,
Quester, P, Neal, C, Pettigrew, S, Grimmer, M, Davis, T & Hawkins, DL. 2007, Consumer
Behaviour: Implications for marketing Strategy, 5th edn, McGraw-Hill Irwin, Australia
Wilbursuen.com 2009, Corolla is top car in Singapore, The Business Times, viewed 20
September 2009
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Appendix
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