Consumer made various decision in their daily life from basic needs to the luxury needs. Their needs include basic physical needs food, clothing, warmth, and safety, social needs for belonging and affection and individual needs for knowledge and self- expression, they are a basic part of human make up. Nowadays, consumers demand for better quality and product knowledge on products of services. The consumer expectations and values are considered in various factors such as benefit and advantage of the products or services before making the buying decisions. The product and service offered from car industry must be fulfill customer‘s demand. The car industry should create various plan and delivering relevant services. Besides that, the car industry should study the customer needs and wants and provide different product to different consumer that will satisfy their need. This research is attempted to identify and analyze the factors that affecting the customer buying decision on car and to know what factors may influence their buying decision.
1.1 Local Car Company
Perusahaan Otomobil Kedua Sdn Bhd (PERDUA), Established in 1993, is a joint venture company between Malaysian and Japanese Partners. The shareholders of Perodua are UMW cooperation Sdn. Bhd with 38% stake, Daihatsu Motor co. Ltd (20%) MBM resources Bhd (20%) PNB Equity Resources Corporation Sdn Bhd (10%) , Mitsui &(7%) and Daihatsu ( Malaysia) Sdn Bhd ( 5%). The company started operations in 1994 and the ever so popular Perodua Kancil was introduced to the Malaysian market in August the same year.to date the following vehicles have rolled out of the Perodua plant:
• The Perodua Rusa – March 1996
•The Perodua Kembara – August 1998
• The Perodua Kenari – June 2000
•The Perodua Myvi – May 2005
•The Perodua Viva – May 2007
•The Perodua Nautica 4 WD – May 2008
•The Perodua Alza- November 2009
As of May 2008, Perodua has sold some 1.4 million units of vehicles of various models Perodua Headquarters is located on an 81 Hectare site in Sungai Choh, Rawang, Selangor Darul Ehsan. It houses among others Perodua Corporate building , R&D testing laboratories and styling studio, vehicle test track , manufacturing plant, engine plant, pre-delivery inspection area, vehicle distribution stockyard and parts ware house. Perodua Auto Corporation Sdn Bhd (PCSB) was established in the final quarter of 2001.Besides Perodua , the two other joint venture partners of PCSB are Daihatsu Motor Co.Ltd and Mitsui & Co.Ltd both Japan. The manufacturing operations of the Perodua Group are being managed by PCSB. The Three active within the group are.
Perodua sales Sdn Bhd (PSSB) is responsible for the sales, Marketing and distribution of all Perodua vehicles as well as after sales services and spare parts operations. Perodua Manufacturing Sdn Bhd (PMSB) is the company responsible for the manufacturing of Perodua Vehicles. Perodua Engine Manufacturing Sdn Bhd (PEMSB) undertakes the assembly of vehicle engines and also manufacturing of selected engine component parts operations. Workforce
The total Number of manpower of Perodua was over 10,000 staff as of May 2011 Production capacity
The plant currently has the capacity to produce 250000 units per annum, on 2 shift cycle.
Sales and service Network
To the date ,PSSB has 39 sales branches and 140 sales dealers nationwide to serve its customers efficiently .It also has 41 service branches and 120 services outlets throughout Malaysia for customers Convenience.
Perodua vehicles are sold in countries such as the UK,Singapore ,Brunei,Fiji,Nepal and Sri Lanka.
1.2 Research Problem
Transportation nowadays can say as a needs for today’s society .The consumer nowadays have different request for their car. The goals for the most Perodua car are to sustain competitive advantages and become or maintain as the market leader. However question as to how one can achieve this still remain despite studies and recommendations are carried out in order to understand consumer buying behavior and ways to improve marketing strategies to move more effectively reach to consumer. Therefore, this research would attempt to identify the factors that influence consumer buying behavior and to understand whether pricing, quality, design, interest rate and the service after sales have significant contribution to consumer buying decision and the importance of their role affecting the buying behavior. Some people are buying Perodua car and some of them are buying imported car. This study is to find out why people are buying Perodua car and the factors that can influence them to buy Perodua car.
1.3 Objective of the study
The objective of this research is to examine several factors that influencing the consumer buying decision on local car as follow. • To find out whether price influence consumer buying behavior towards Perodua car. •To find out whether design of the car will influence consumer buying behavior. •To find out whether interest rate of the Perodua car influence consumer buying behavior •To find out whether quality of the Perodua car will influence consumer buying behavior •To find out whether service after sales will influence consumer buying behavior towards Perodua.
1.4 Scope of the study
This study cover how consumer perceive and deciding on purchase their car. The factors and criteria that the consumer will take into considerations when purchasing a car. This study conducted to provide a cleared picture on factors that possible on affecting consumer consumption decision and to find out the least importance factors at consumer in purchasing car. This research suggest that consumer buying behavior can be caused by factors such as price , design of the car, interest rate , Quality and also sales after service. Questionnaire will be conducted and distributed to local car users. Questionnaire will be developed based on the dependent and independent variable which will then be distributed to despondence ( Uses of local car) Questionnaire will be collected for analysis using SPSS to obtain findings. This will be follow by discussion and recommendation relevant to objectives of this study.
1.5 Significance of the study
Transportation nowadays has become a need for today’s society . This study will help the Perodua car industry understand how to consumer think, feel , needs and many variable of the purchase decision process. In additional , This paper would consider on the ways that marketers can adapt and improve their marketing strategies to reach the consumer buying behavior to know the relatively factor that may effect consumer purchasing decision on Perodua car.
1.6 Definition of terms
In this study, the factors influencing consumer behavior towards Perodua car such as price, design, quality, interest rate and service after sales. The definition of terms fully understands the topic of discussion in this study of research.
Consumer is broad label that refers to any individuals or households that use goods Services generated within the economy .The concept of a consumer is used in different context, so that the usage and significance of the term may vary . (From Wikipedia). 1.6.2 Consumer Buying behavior process and physical activity Consumer buying is defined as “decision making process and physical activity whereby individuals engage in when evaluating, acquiring, using or disposing of goods and service”. ( Sternbock, 2013). It is a subset of human behavior on how they use their resource on consumption related items.
The study of consumer behavior allow marketers to understand and predict how consumer are likely to react to various information and environmental cues and able to shape their marketing strategies accordingly. (Leon G. Schiffman & Leslie Lazar Kanuk, Consumer Behavior 2013).It is also concerned with the question of what, why, when, where, how and how often they buy it, 1.6.3. Car
An automobile or motor car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor. Most Definitions of the term specify that automobiles are designed to run primarily on roads, to have seating for one to eight people, to typically have four wheels, and to be constructed principally for the transport of people rather than goods.
Price in economics and business is the result of an exchange and from that trade we assign a numerical monetary value to a good, service or asset. Price is only part of the information we get from observing and exchange. The other part is the volume of the goods traded per unit time, called the rate of purchase or sale. From this additional information we understand the extend of the market and the elasticity of the demand and supply. In general terms price is the result of an exchange or transaction that takes place between two parties and refers to what must be given up by one party in order to obtain something offered by another party.
1.6.5 Product design
Product design can be defined as the idea generation, concept development, testing and manufacturing or implementation of a physical object or service. Product Designers conceptualize and evaluate ideas, making then tangible through products in more systematic approach. The role of a product designer encompasses many characteristics of the marketing manager, product manager, industrial designer and design engineer.
1.6.6 Interest rate
A rate which is charged or paid for the use of money. An interest rate is often expressed as an annual percentage of the principal. It is calculated by dividing the amount of interest by the amount of principal. Interest rates often change as a result of inflation and Federal Reserve policies.
Quality is the standard of something when it is compared to other things such as how good and how the something is. If a product fulfils the customer’s expectations, the customer will be pleased and consider that the product is of acceptable or even high quality. If his or her expectations are not fulfilled, the customer will consider that the product is of low quality this means that the quality of a product may be defined as its ability to fulfil the customer’s needs and expectations. Quality needs to be defined firstly in terms of parameters or characteristics, which vary from product to product.
1.6.8 After sales service
Service, which is addressed here, should be an integral part of any company’s export strategy from the start. Properly handled, service can be a foundation for growth. Service is the prompt delivery of the product. It is courteous sales personnel. It is a user or service manual modified to meet your customer’s needs. It is ready access to a service facility. It is knowledgeable, cost – effective maintenance, repair or replacement.
This report is presented in five chapters. Each chapter is connected to the other and is systematically structured to ensure easier understanding of the research. The first chapter is the introduction of the consumer buying behavior on Perodua car. It include the research problem and the objective and definition of terms are also include to allow better understanding of objectives of the research and terms used in this research .Chapter two is the literature reviews where other literature source are extracted to address the topic of consumer buying behavior on Perodua Car. Chapter three is the discussion of theoretical framework used in this research.
This chapter also involved the method of used for collection data and statistical method used to analyze the data. Chapter four is the discussion of the data gathered in this research .this discussions involved in this chapter include the hypotheses testing and evaluation of finding in the research area. Chapter five is the discussion of findings together with the conclusion of this research. This chapter also covers the recommendations of factors that have significant impact and influence the most consumer purchase decision.