A study on the purchase decision to buy Toyota fusion cars and Nissan fusion cars among Malaysian consumers

in Petaling Jaya, Malaysia

CHAPTER 1 Introduction 1.0 Introduction This is study on the choice of purchasing a car between Japanese fusion cars and Malaysian customers in Petaling Jaya, Malaysia. Chapter 1 narrates an overview of the automotive market worldwide and nationally. This chapter also contain research purpose, research questions, objectives and research plan. 1.1 Background of Automotive Global Market Rarely has an industry confronted the magnitude of multi-dimensional change the automotive industry faces today. Credited for providing the foundation for economic transformation of the developed world a century ago, and well under way to bringing mobility and prosperity to the developing world today, the industry finds itself simultaneously coveted for the employment and investment it attracts and disparaged for its perceived lack of environmental responsibility. As it races toward future , the industry must learn to effectively manage the global resources it has put in place, respond to increasing demands for environmental accountability and use the technology at its disposal to transform the way it develops products and goes to market. Indeed, the underlying and surrounding ecosystem of the industry is in a state of flux. Automakers, along with their partners, must respond to the changing dynamics of how automobiles will be manufactured, purchased, distributed and serviced. Consumers are becoming more empowered and sophisticated. Their wants and needs are evolving at an exponential pace. Basic transportation will no longer suffice, as consumers look to a comprehensive mobility experience. Enlightened consumers will expect their vehicles to provide information, entertainment, safety and convenience. They will demand economy, environmental responsibility and sustainability. To meet these demands, vehicles will become more intelligent, offer greener operation and be customizable to greater self-expression by buyers. As worldwide oil prices

continue to surge, alternative powertrains will dominate new production. Even the notion of buying as we know it today is expected to change. The concept of personal mobility will prompt consumers to purchase transportation services in place of personal vehicles for multiple uses. The worldwide labour force will change and, by 2020, become radically different in terms of age, location and the way people work. Cultural awareness, diversity and adaptation will be the norm. This global workforce, with a geographically dispersed footprint for manufacturing and product development, will sustain and support the industry in 2020. The current investments in globalization will be established and a global infrastructure will essentially be in place. Evolving economies and markets will fuel new products, services and business models.

1.1 Malaysia Automotive Market Technological progress ,the development of products and services that perform better, last longer, offer more convenience, safety, entertainment and economy will continue to lead the list of industry priorities in 2020. Beyond that, however, industry leaders see a major shift (see Figure 1.1). Sustainability is already an issue of importance and is likely to remain so for an indefinite time. It will drive investments, product categories, and performance and convenience packaging decisions well into the next decades. Overall, the anticipated shift in priorities reflects a move away from historic factors that have preoccupied the industry, globalization and governmental influences amongst them. Corporate social responsibility will take on additional importance and impact organizational strategy in as yet unforeseen ways.

Figure 1.1 : Anticipated change in external forces impacting the industry, 2008- 2020.

In order to lessen the harmful impacts of human activities, several incentives for the automotive business were introduced such the overview of environmental friendly vehicles which are electric and hybrid cars. For the novel hybrid cars which are below 2, 000cc in engine capacity, the government executed full exemption for import and remove duties to encourage the assembly of fuel efficiency vehicles (StarBizWeek, 2011). According to Ministry of Energy, Green Technology and Water, the Ministry of Transport is cooperating with the green technology sector to create an infrastructure roadmap for the usage of electric vehicles in Malaysia.

1.2 Why There is a Need for Further Investigation? There is a rich body of marketing literature on consumer decision making process, for example, by renowned writers such as Kotler (2001), Schiffman and Kanuk (2004), Peter and Olson (2003), Solomon (1996), Hawkins (1998), as well as marketing of green automotive or hybrid cars, for instance, Jacobs (2009), Ahman and Max (2001), Barnitt and Chandler (2006),

Kromer and Heywood (2007). There are few researches studying in Malaysia specifically in the area of interests to the present researcher. This research study focuses on the choice to buy two Japanese brands of hybrid cars. This investigation can provide insight and future criteria for selection purpose in which will be very useful for the marketers. 1.3 The Research Questions for this project are: (a) What are the methods do the consumers use to obtain info on Toyota and Nissan fusion cars? (b) What are the factors that considered by Malaysian consumers in making the final decision on whether purchasing Toyota or Nissan fusion cars? (c) What is the time taken on deciding purchase between two Japanese brands Nissan) of fusion cars by Malaysian consumers? 1.4 Research Objectives for this project are: (a) To study the methods of consumers search for information about Japanese brands (Toyota and Nissan) of fusion cars. (b) To find out the causes that influence Malaysian consumers in making the final purchase decision on two Japanese brands of fusion cars. (c) To recognize the time duration for making the final acquisition decision for two Japanese brand of fusion cars by Malaysian consumers. (Toyota and

1.5 Research Outline Chapter 1 : Introduction Provides brief overview of general areas of study that covers both research questions and objectives and problem statement. Chapter 2: Literature Review Provides further details on the background information where the research studies were supported by different theoretical framework and model. Chapter 3: Methodology Provides details of research design and methods used in the research while providing the analysis of the findings. Chapter 4: Discussion Provides the interrelation between the purpose and objectives of the research and the findings that have been obtained while summarizing the main research findings. Chapter 5: Conclusion Provides the final summary of the research and also future works that are recommended.