Car Brands as Perceived in the UK and Worldwide Essay

Introduction

When one is planning to purchase a car, one of the primary considerations is the perception of a car brand. All cars perform the primary function of facilitating the movement of persons and goods from one physical location to another. However, some car brands have gained popularity as being superior at performing these tasks to others. Jobber and Ellis-Chadwick (2020) explain that factors such as safety, performance, convenience, design, quality, value, environmental friendliness, style, and innovativeness are some of the factors that define one’s perception. The decision-making process of a car buyer is often defined by the above factors. An individual would want to purchase a reliable car that does not easily break down, is easy to repair and maintain, and offer the best safety standards when in use.

Perception in this context refers to how a given thing is regarded, interpreted, or understood by a specific audience. Perception is one of the most defining factors when one is purchasing a car. A car brand such as Toyota is associated with low-maintenance costs and efficiency. Mercedes Benz, Porsche, and Audi are associated with comfort and safety. Then there are the luxury car brands such as Lexus, Lamborghini, Ferrari, Bentley, Rolls-Royce, and Jaguar, among others (Xu and Fan, 2019). The perception that people have towards these cars is developed over a long period. This perception is defined by the actual value that these brands offer, how the brands are positioned in the market and the emerging trends in the industry. For instance, Tesla is gaining massive popularity in the market not only because of its unique design, high speed, and safety standards but mainly because it is an electric car, which does not emit carbon to the environment (Penmetsa et al., 2019). It is perceived as a futuristic car, making it carve a niche in the highly competitive market.

The perception of car brands in the United Kingdom market defines the purchasing pattern of consumers, just like it is the case in other markets around the world. A survey conducted by Armstrong (2018) identified the 10 most important considerations when one is buying a car in the United Kingdom. In order of priority, they included price, fuel economy, performance, safety, manufacturer, engine size, size, quality, design, and color. Consumers take into consideration these factors when planning to purchase a car. The car manufacturer (brand) is a critical factor that consumers take into consideration. Fill and Turnbull (2019) explain that specific brands are associated with unique quality specifications based on the perception that has been developed in the market.

Problem Statement

The car industry has been growing rapidly and individual car manufacturers are keen on not only expanding their market share but also protecting the current share of the market that they control. The problem is that sometimes it may not be easy to change the perception of consumers. Masterson, Phillips, and Pickton (2021) explain that it is easier to convince consumers that a once valued brand has become less valuable than it is to convince them that a less valuable brand is now of great value. For instance, Fiat and Nissan are some of the least desirable car brands in the UK (Nunan, Birks, and Malhotra, 2020). Nissan has been keen on developing some unique cars whose performance and reliability match those of top brands in the market. However, changing the perception of customers in this market remains a major challenge.

Building a desirable perception for a car brand takes time and resources. Paul (2018) explains that spending time on research and developing a unique product in the market is not enough. One will still require to spend a significant amount of money on promotional campaigns to influence the perception of customers. Having a negative perception of a car brand may be influenced by factors such as poor braking system, susceptibility to fire outbreaks, and inability to adjust to changing trends in the market. A report by (Herrmann, 2018) shows that Toyota was forced to recall more than 2 million Prius and Auris cars from the UK and around the world because of a stalling problem, even when the car was at high speed. Although the company failed to release the record about the number of accidents caused by the problem, it admitted that such a fault could cause a major accident if it happens when one is driving at a higher speed. The recall and revelation of the problem had a major negative perception of the company’s image in the hybrid car market.

When such a negative perception is created, it becomes a major challenge for the car to be trusted. Jobber and Ellis-Chadwick (2020) observe that although such recalls often demonstrate a firm’s commitment to the quality and wellbeing of customers as opposed to profits, it also creates doubt about the quality of the product. Some clients would just switch to alternative products known to offer the best value. Such trends are not unique to the United Kingdom as other markets around the world also respond similarly. These car manufacturers need to make deliberate efforts to influence the perception that their customers have towards their brand as it significantly influences their buying decisions.

When defining the perception of customers towards a car brand, one of the factors that car manufacturers would consider is the purchasing power of customers. This is still a major factor that these firms have to put into consideration (Masterson, Phillips, and Pickton, 2021). For instance, a consumer in the lower middle class who has limited resources to spend on a car would prioritize the cost of buying a car, the cost of running and maintaining it, and reliability. These are the factors that would define their perception of the car brand. The upper middle class will take into consideration the comfort, safety, and maintenance cost of the car when defining their perception of the car. On the other end, the rich consider the class of the car, in addition to all other basic factors discussed above. They want a car that can reflect their status in society even if it means paying more for it (Armstrong, 2018). As such, leading car manufacturers must understand their target customers before trying to influence their perceptions. Using theoretical models such as Maslow’s hierarchy of needs, discussed in detail in the literature review, can help in developing such target market strategies.

Significance of the Study

The United Kingdom is one of the leading car markets in the world. It is also home to some of the leading car manufacturers around the world. The target market for these cars varies depending on various factors. In Europe and North America, including the United Kingdom, comfort, safety, reliability, and environmental friendliness of the car are some of the most critical factors that define the perception of customers. On the other hand, most African markets still value cost and reliability as the main factors that define their purchasing decisions. In the United Arab Emirates, Oman, Saudi Arabia, and Qatar among other countries in the region, a segment of the customers, the very rich, has class as their top priority when purchasing a car.

This paper is vital to car manufacturers in the United Kingdom and around the world. It explains specific factors that directly influence the demand for these products in the market. According to Morganti and Browne (2018), companies spend millions of pounds promoting their product locally and internationally. However, sometimes such heavy expenditure on promotion fails to translate into increased sales. One reason for such failures is the inability of a firm to understand the specific needs of customers. Hackley and Hackley (2021) explain that a can has become a basic necessity in the developed world irrespective of one’s financial status. One needs to have means of moving from one location to another, especially in rural areas where public transport may not be reliable (Liu, Nikitas, and Parkinson, 2020). It means that people will find cars that meet their budget, for the middle-lower class, or demonstrates their status in the society, for the rich.

The perception that one has towards a product is directly influenced by their social status. While the rich will be influenced by factors such as comfort and class of the car, the lower-middle-income earners are primarily focused on the cost and convenience of the car, as depicted above. It means that marketers have the responsibility of segmenting their customers by class and country. In the UK for instance, even the lower middle class is concerned about the environment. It means that after factoring in the cost and reliability of the car, the client will focus on how the car affects the environment. Similarly, the rich will also consider the impact of the product on the environment when class needs have been met.

This study explains how these factors can be identified and then used to define product proposition in the market. Chaffey and Ellis-Chadwick (2019) warn that it is dangerous for a brand to promise something that it cannot deliver. This is so because once the promise is made, it defines the expectation of clients. Once the product is delivered and consumed by a client, they will classify it as one that failed to meet their needs, one that met their needs, or one that exceeded their expectations. When expectations are not met, a client would be dissatisfied, and their perception of the product would be negative. However, a product that exceeds the expectations of customers tends to earn a favorable perception with clients.

This study is important to car manufacturers, especially the sales and marketing team when making decisions relating to customer management. When discussing the perception of car brands, Santos and Davies (2020) explain that it is not just about the perception that one individual has. Instead, it refers to the perception that has developed among a significant section of the market. When an individual is planning to buy a car, irrespective of their social status, it is likely that they will consult widely with friends and family. Although they may have their personal opinion of what is available in the market, they will still make these consultations. They do so to reaffirm their perception and to ensure that they do not regret their decisions (Nunan, Birks, and Malhotra, 2020). As such, when there is a generally negative perception of a car brand among a significant segment of the market, such consultations may reaffirm the decision of a buyer to avoid a specific brand. It means that these car manufacturers have a critical role in influencing the perception that customers have about their car brands to enable them to achieve sustainable growth in this highly competitive market.

Aim and Objectives

When conducting research, it is important to define the aim and objectives of the study to define the path that should be taken when collecting primary data. The primary aim of this research is to investigate perceptions of car brands in the United Kingdom and compare them with perceptions internationally. It is known that these perceptions often define the decision-making process of buyers. The study will investigate factors that define this perception locally and compare them with those in the international market. As such, car manufacturers will be in a position to define their strategies when positioning their products. The following are the specific objectives the researcher seeks to achieve:

1. To determine factors that define perceptions of car brands in the United Kingdom’s market.
2. To determine factors that define perceptions of car brands in the global market.
3. To investigate the impact of customers’ perceptions on their buying decision in the car industry.
4. To explore ways in which companies can influence customers’ perception as a way of promoting their brand in the market.

Research Questions

The researcher will collect data from both primary and secondary sources. As such, it is essential to have specific questions that will guide the process of collecting and processing data (Tan, 2018). Research questions help in defining specific information that one needs to collect to help achieve the aim and objectives of the study. The following are the specific questions that will guide the process of collecting data from the participants.

1. What are the factors that define perceptions of car brands in the United Kingdom’s market?
2. What are the factors that define perceptions of car brands in the global market?
3. How does the perception of car brands in the UK compare to that of the international market?
4. What is the impact of customers’ perception on their buying decision in the car industry?
5. How can companies influence customers’ perceptions as a way of promoting their brand in the market?

Dissertation Structure

This dissertation has five chapters addressing specific aspects of the study. Chapter one is the introduction, which provides a detailed background of the research, problem statement, and significance of the study. The chapter also states the aim and objectives of the study and the research questions that guided the process of data collection. The second chapter provides a review of the literature to understand what other scholars have found out. It discusses relevant theories that can help in understanding how consumers develop a perception of a given product.

Chapter three is a detailed discussion of the method that was used to collect data. Research philosophy, research approach, research design, method of data collection, and analysis of primary data are explained in this chapter. It also discusses the structure of the instrument used to collect data and ethical considerations observed in this study. Chapter 4 presents findings made from the analysis of primary data and a discussion of data from both primary and secondary sources. The final chapter summarizes findings made in the study and provides recommendations that should be taken into consideration by relevant stakeholders. A list of all the secondary materials used in this study is provided on the reference page of the document.

Literature Review

The previous chapter provided the background information on this topic, explaining the aim and objectives that had to be achieved. In this chapter, the focus is to review the existing literature that is related to the topic. According to Aityan (2022), when one sets to conduct research, it is important to appreciate the work that other scholars have done in the same field. One needs to review their work to understand their findings. The literature review helps in eliminating duplication of already existing knowledge in a particular field. When reviewing the literature, a researcher will be able to identify existing knowledge gaps. The focus of the study will then be to address the existing gaps. The process also helps to identify contradicting information in the field. By collecting primary data, it becomes possible to explain the inconsistencies and to put into perspective the realities that exist. The chapter also reviews relevant theories that can help in explaining the process that people used to make purchasing decisions based on different factors.

The Growth of the Car Industry

The car industry has gone through major changes as the tastes and preferences of customers continue to change. According to Lucendo (2019), when Karl Benz introduced the first car in 1886 in Germany, it was seen as a dangerous locomotive and it received resistance from large railway companies that viewed it as a threat. The report showed that the car was simple and it was meant to facilitate movement from one location to another conveniently and in a way that could not be done using the established railway systems. Its price tag meant that it could only be afforded by the very rich members of the society. Figure 2.1 below shows the first car that was introduced in Germany.

The industry has experienced massive growth over the years and the design of cars has also changed depending on the changing tastes and preferences of customers. According to Lucendo (2019), Mercedes Benz remains one of the most valued car brands in the international market. New segments have been emerging to meet customers’ needs in different social classes. Toyota has gained a reputation as an affordable yet reliable car brand that meets the need of low-income earners. On the other hand, Bugatti and Ferrari are some of the brands popular among the rich (Gonsalves, 2016). Figure 2.2 below is a Bugatti, which is one of the fastest and most expensive cars in the world.

As the design and engine type and capacity continue to improve, the demand for cars has also been increasing in the global market over the years. As shown in figure 2.3 below, the number of cars in the global market was significantly few from 1900 to 1920. It took about 60 years (1900-1960) for the number of vehicles to 100 million globally. From 1960 to 1990, there was a rapid growth in the number of cars used around the world, reaching 600 million in the mid-1990s. The number of global cars currently in use has more than doubled since then. The industry has embraced emerging technologies to develop new models of cars to meet a wide range of customer segments.

Growing Competition and Significance of Branding in the Industry

Nicholas-Joseph Cugnot is considered to be the first person to have built a steamer, a three wheeled car meant to facilitate the movement of French army’s artillery. However, Ackermann (2021) explains that the steamer was slow, just like that which was built by Oliver Evans in 1805m for the Department of Health in City of Philadelphia. It was Karl Benz model that is largely considered the genesis of the modern car. However, these early inventors did not focus on commercialization of their products, and as such, there was no competition until mass production of cars started in the United States in 1896 (Liu, Nikitas, and Parkinson, 2020). Ransom E. Olds started his company, the Olds Motor Vehicle Company (Oldsmobile) that started the mass production of cars. The company was soon joined by Thomas B. Jeffrey Company that produced a car model they referred to as Rambler (Doner, Noble, and Ravenhill, 2021). The two firms started competing for the local market in the United States.

Henry Ford revolutionized the production and commercialization of cars globally. His introduction of the moving assembly lines drastically lowered the unit cost of production and minimized the time it took to make available various products (Liu, Nikitas, and Parkinson, 2020). In Europe, Mercedes Benz embraced the new system of production and started spreading rapidly to the European market. World War I and II created a massive market and growth opportunities for the industry as their products became vital during the war. The US automobile companies such as General Motors Corporation, Ford, and Chrysler emerged as some of the dominant players in the industry. In Europe, brands such as Volkswagen and Mercedes Benz of Germany, Peugeot, Renault, and Citroën of France, and Rolls-Royce Motor Cars Limited, Aston Martin, Jaguar, Bentley are some of the firms that emerged as dominant players (Korstanje, 2021). In Asia, Japan’s Toyota Motors and Nissan Motor Co. emerged as dominant players. The competition has been getting increasingly stiff over the years. Figure 2.4 below shows the current dominant brands in the industry.

The Impact of COVID-19 on the Car Industry

The outbreak of the COVID-19 pandemic in early 2020 had a major impact on the global economy, and the car industry particularly. The industry had made a full recovery from the 2008 global recession. However, the pandemic reversed most of the gains. Some of the most attractive car markets in the world, especially Europe, the United States, and China were the worst affected regions by the pandemic. Bridge (2020) explains that most companies that required physical interaction of employees had to be temporarily closed as a means of managing the spread of the virus. The purchasing power of consumers all over the world also dropped significantly as many firms were forced to lay off their employees or put them on half their salary.

Figure 2.5 above shows how different markets reacted to the outbreak of the pandemic. China mainland was the first global market to report a major drop in the early months of 2020. However, it was able to make a recovery by the end of March. The demand for cars then started to increase in April. In the UK, the impact of the pandemic on the car industry was felt from February when there was a sharp drop in the sales of vehicles. It continued until the end of March when recovery was repotted. The same trend was felt in the United States although the drop in sales was not as bad as it was in the UK. The European market, just like the others around the world, experienced a similar drop.

The drop in car sales was caused by other factors beyond the drop in the purchasing power of consumers. According to Korstanje (2021), governments around the world, including the United Kingdom, issued travel bans as a means of slowing down the spread of the virus. It meant that the number of people moving into and out of a country significantly reduced. Those traveling from one part of the country to the next also dropped significantly. The situation was made worse by the introduction of lockdown in different parts of the world. For several months, people were forced to stay at home because of the fear of the rapid spread of the virus (Doner, Noble, and Ravenhill, 2021). In other places, governments introduced curfews or other movement restrictions. The effect of these new policies was a massive drop in the sale of cars. People could no longer travel freely as was the case before, which meant that they did not find any justification in buying a car.

During the pandemic, the concept of working from home gained massive popularity. Ackermann (2021) explains that many companies and government entities realized that people could work just as effectively from home as they would when they work in the office. Some firms even realized that their employees could work better from home because they no longer wasted time traveling to and from work. They were also willing to work for longer because they were at the comfort of their homes. Working from home also meant that firms no longer had to incur the high cost of renting an office space or paying for the utilities needed in such offices. The concept of working from home became common in the United Kingdom and other parts of the world. The more people considered working from home, the less it became relevant for them to purchase cars (Gawrysiak et al., 2020). Despite these challenges, the demand for cars has been growing over the recent past following the introduction of vaccines for the disease.

Factors That Influence Perceptions of Car Brands

The perception of car brands is an important issue that every car manufacturer should take into consideration when developing promotional campaigns. Hackley and Hackley (2021) explain that a firm must understand specific factors that define perception. Safety remains one of the most important factors that define consumers’ perceptions. When one is purchasing a car, they always want an assurance that their safety will not be compromised. As such, they want cars that are stable on the road even at high speeds. In case of an accident, they want an assurance that they will remain protected inside the car. Properly positioned airbags, effective seatbelts, and the structural integrity of the car are essential as they all define how safe the occupants will be in such unfortunate incidents. Car brands such as Mercedes Benz, Chrysler, and Lexus are known for their safety standards.

Reliability is another critical factor that defines consumers’ perception of a car brand. When purchasing a car, one would want to be assured that it will function properly and as per the expectations of the user (Fill and Turnbull, 2019). Customers prefer cars that do not break down often and without a warning or a proper justification. If it is purchased to help in carrying light loads, as is always the car with double-cabin pickups, the vehicle is expected to perform such a function effectively. According to Ackermann (2021), the Toyota brand has gained a reputation in both developing and developed economies as a highly reliable car brand.

Design of the car remains to be another important factor, especially among young customers and the very rich. Consumers want a car that has an attractive shape that meets their desires. Different consumers prefer different designs for cars based on their needs (Xu and Fan, 2019). Some people want spacious cars that can accommodate entire family members, while others prefer smaller cars that look sleek. Car manufacturers have to segment the market based on these specific needs, determine the size of the market in each category, and find the best way of meeting these unique needs.

The speed of the car has become a major factor when defining the perception that consumers have towards a given brand. There has been a growing competition about having cars that can move from zero to 60 miles per hour within the shortest time possible (Scott, 2017). Although such a huge engine capacity is meant for the thrill when one is driving, it also helps in ensuring that one can overtake a car in front of them within the shortest period possible and get back to their lane to avoid collision with an on-coming car. Besides the unique designs and comfort that they offer, supercars such as Bugatti and Ferrari outshine their competitors in the market because of their high speeds.

Fuel economy is emerging as a factor to consider when one is planning to purchase a car. According to Ackermann (2021), the cost of fuel in the international market has been fluctuating in an unpredictable manner. During the peak of the COVID-19 pandemic, the price of this product was at its lowest. However, the price of fuel is currently at historic highs, primarily because of the Russia’s invasion of Ukraine. Motorists currently consider the fuel consumption of their cars because of the associated cost (Doner, Noble, & Ravenhill, 2021). The middle class are more sensitive about the consumption of their cars than the rich. It means that segmentation is a critical factor that car manufacturers have to consider.

Fuel consumption is also related to the new concept in the industry that focuses on environmental friendliness of cars. There has been a growing concern about the impact of greenhouse gases on the environment (Mason, 2016). Studies have shown that climate change and global warming are all linked to the emission of greenhouse gases. The car industry is considered one of the leading emitters of the greenhouse gases. As such, there has been an effort by the industry players to introduce cars that do not emit these dangerous gases. Tesla has taken the lead in the manufacturing of electric cars. Consumers value car brands that are believed to be friendly to the environment. They believe that by using these cars, they are playing a role in protecting the environment (Korstanje, 2021). Many other car brands around the world are focusing on the production of fully electric cars or hybrid versions to protect their market share.

The price of the product is an important factor that defines the perception of customers towards a given brand. Nunan, Birks, and Malhotra (2020) talk about the pricing paradox that is often associated with pricing of products in the market. When a product is given a high price, it creates a perception that it offers a higher value that that of rival products with low prices. The problem is that although it will be perceived as being of high value, only a small fraction of the rich could afford to buy it. On the other hand, when the product is given a price that it lower than the market average, it creates the perception that it is of a lower value compared with its rivals in the market (Gawrysiak et al., 2020). Although the majority may afford to purchase such a product, the perception that it is of low value can hurt its image in the market. This challenge has forced car manufacturers to start by defining their target market, then price and position their brand and products based on the targeted market.

The cost of maintenance is a major factor that defines the perception that customers have towards a given car brand. According to Ackermann (2021), irrespective of one’s social status, there is always a general concern about the ease with which one can maintain their cars. They prefer cars that have parts for repair locally available and at affordable cost. They also want cars that can be repaired locally, which means that local mechanics should have an understanding of its system. For a brand to achieve a positive perception in the market, a firm should ensure that each of these factors is taken into consideration at the time of manufacturing and when promoting the brand.

How Perceptions of Car Brands in the UK Compare with the Global Market

The perception of car brands in the UK compares differently to various parts of the world. According to Lucendo (2019), factors such as the purchasing power, road infrastructure, and the social class of a person directly influence their perception of a given product. When a rich person is purchasing a car, one of their primary goals is to demonstrate their social class. On the other hand, the limited budget of the middle class forces them to purchase a product that offers basic needs (Fill and Turnbull, 2019). As such, the perception of car brands differ from one country to another depending on the level of development of a nation.

The perception of car brands in the United Kingdom, which is a developed country, is similar to that of the United States, Germany, Spain, England, and France among other developed economies. According to Fill and Turnbull (2019), when defining the national perception of a car brand, factors that one has to consider include the road infrastructure, purchasing power of citizens, and tastes and preferences among other issues. Western European countries are generally developed and they have a relatively common socio-cultural practices. They car culture in these countries can be compared with the developed economies in North America, especially the United States and Canada. It means that perception of car brands in these countries compare closely (Korstanje, 2021). What customers in the United States value is the same as what those in the United Kingdom need.

The observation made above means that the perception of car brands in the UK differs from that in developing economies of Africa and Asia because of various reasons. In developing countries, there is a poor road infrastructure that can only accommodate specific cars (Mason, 2016). Although one may admire a Lamborghini, it is not possible to use such a supercar in Uganda because of the poor road network and the low ground clearance of the car. Another factor is the purchasing power of customers in a given market. In Bangladesh, it is possible that there are a few superrich individuals who can afford to buy a Ferrari. However, their number is so negligible that they cannot represent the entire population (Fill and Turnbull, 2019). Most of the people in this country can only afford Toyota, Nissan, and similar brands which are relatively cheap. The kind of comfort that the majority of people in the UK admire is different from what consumers in Nigeria needs. A Nigerian would be looking for a means of transport that is as cheap as possible, always willing to compromise on comfort. On the other hand, consumers in the UK highly value comfort, which means that they have to use cars that provide the same. These factors make perception of car brands in the UK different from that of many developing nations.

Theoretical Background

When investigating the perception of car brands around the world and how it affects consumers’ buying decisions, it is important to use some theoretical concepts. Using specific theories will help in understanding why customers make specific decisions based on several factors. In this part, the researcher will focus on three major theories that define the decisions that consumers make.

Maslow’s Hierarchy of Needs

One of the most common theories that help in explaining the purchasing decisions of consumers is Maslow’s hierarchy of needs. As the name suggests, the theory holds that consumers’ needs can be ranked based on one’s social class. It starts with the lowest level possible, where one only needs the basics, also known as physiological needs (Carducci et al., 2020). They include water, food, warmth, and rest, without which one cannot live. At this level are the poorest members of the society who are only focused on surviving. Once the physiological needs are met, the safety needs set in. An individual who has had something to eat will then start focusing on their safety and security needs. They will try to avoid anything that can expose them to danger. It is important to note that those who are at this stage are less likely to purchase an automobile. In case they have to do so, their focus will be on the safety and security of the item that they purchase (Maslow, 2019). They only need a car that can take them from one place to the other without exposing them to unnecessary dangers.

The next level is psychological needs that define the decisions of consumers. It starts with the need for love and belonging, which include friendships and intimate relationships. Such individuals are focused on expanding their circle of friends and are committed to pleasing those who are around them. They want to be accepted in specific social circles and will do everything within their powers to achieve the goal (Maslow, 2019). When it comes to purchasing a car, they will go for a brand that is identified with the class they desire to belong to. They will focus on the reviews made by their peers who already own similar cars. The only challenge that these people face is that their financial capacity is limited, and as such, cannot afford to purchase some of the best brands in the market.

Esteem needs for prestige and a feeling of accomplishment are considered higher psychological needs. At this level, one considers self as being successful in achieving specific goals in life. They view themselves as having made major milestones in life and realized most of their life goals (Carducci et al., 2020). They want to be admired by the society for accomplishments they have made. They may not be the richest members of society but they have the financial muscle to purchase some of the best brands in the market. When these individuals are purchasing a car, prestige is always at the top of their priority. They would want to purchase a car that demonstrates their class. They will prioritize factors such as comfort, safety, speed, and luxury associated with the specific brand of the car. These consumers are sensitive about what others think about products and brands that they use. As such, they are more likely to purchase specific brands primarily to earn the admiration of others.

At the apex of the pyramid are self-fulfillment needs of self-actualization. Individuals at this level believe that they have achieved their full potential, which includes creative activities (Carducci et al., 2020). Individuals who reach this level are often few in society, and the majority tend to be elderly people who have achieved success at every stage of their lives. In many cases, they have the financial muscle to purchase the best brands in the market because of their success in life. However, unlike those with esteem needs who purchase items to please others, these individuals make their purchases to please themselves. They are always willing to pay extra as long as they are offered the best value (Maslow, 2019). When buying a car, these consumers prioritize brand over every other factor. They know car brands and types that offer safety, security, comfort, reliability, and luxury that they feel they deserve based on their social class. Figure 2.6 below identified the hierarchy of needs as Maslow identified them.

Self-Perception Theory

Self-perception theory is another concept that can help explain the decision-making process of a consumer. According to Naik (2021), self-perception refers to conclusions that individuals make about their feelings and attitude toward something based on their behavior, especially when the same did not exist before because of limited experience. An individual would monitor their behavior towards something and conclude whether they like it or not. Sometimes one’s subconscious actions and decisions may be used to determine their perception of a given product. It helps them to determine how well they will be satisfied with a given product when they purchase it.

Self-perception theory focuses on one’s personal feelings, as opposed to what the society feels is appropriate. When one decides to purchase a given product, they always take into consideration several factors. Kassin et al. (2020) explain that besides trying to go for a brand that society believes is the best, there is always the need for one to settle on that which they believe meets their needs in the best way possible. Self-perception theory helps in explaining how consumers deal with post-purchase dissonance. If they only focus on the perception of others, then they are likely to buy a product that does not meet their personal needs. They will not be satisfied with such a car because they believe it does not reflect their expectations. Some individuals would completely ignore what others view as the superior brand and settle for a product that they feel personally appealing to them. It means that in some cases, the popular perception of a brand of a car may fail to influence the decision of a buyer.

The perception that one develops toward a given product or brand may be influenced by different factors. One of these factors is the price of the product or service (Kassin et al., 2020). A particular brand of a car may be popular in the market, but its price may be out of rich to a section of customers. In such a case, these customers will avoid that brand primarily because of its high price (Naik, 2021). Another factor that will influence the decision of a buyer is the functionality of the vehicle. There is a general global perception that Bugatti is a supercar that is admired by an overwhelming majority of car owners. In the United Kingdom and other developed countries, one can purchase a car because the road infrastructure can facilitate its usage. However, that is not the case in developing countries of Africa and parts of Asia where one cannot drive such a car with very low ground clearance on dilapidated roads. It means that even if a consumer has the desire and ability to purchase a product, the infrastructure makes it impossible for them to do so.

Cognitive Dissonance Theory

The consumer decision-making process can also be defined using cognitive dissonance theory. The theory, according to Morvan and O’Connor (2019, p. 11), postulates that “psychological tension is developed when one’s behavior is not consistent with their thoughts and beliefs.” It is important to note that one’s behavior can be influenced by various societal forces. One can be influenced by popular culture. As such, they may be forced to behave in a specific way primarily to please peers and members of society. Such forced behavior may be inconsistent with their beliefs and thoughts. They feel that they have to act in that manner to ensure that they get accepted in society. Every time they act in a way that is contrary to their thoughts and beliefs, there will be psychological tension created.

When one is planning to purchase a car, numerous factors often have to be taken into consideration. An individual would likely consult with others when they are buying their first car (Mattia et al., 2021). It is at this stage that they are likely to behave in a way that is contrary to their beliefs or thoughts. They will purchase a car that others feel is most appropriate. As they continue to use the product, they would find some aspects of the car as being contrary to what they expected. The cognitive dissonance sets in when they realize that the product that they purchased does not meet their quality standards. The post-purchase dissonance will define their future behavior when buying a car in the future. To avoid the underlying tension created by the inconsistency of behavior and belief, such an individual will most likely make some changes. It is always easier for one to change their behavior to match their beliefs than it is to change a belief to match the behavior. Such a consumer will, in the future, purchase a car based on their belief about the superiority of the car in the market.

Methodology

The previous chapter has discussed literature related to the topic of the study. In this chapter, the researcher seeks to explain the method used to collect and process data to help answer the research question. It explains the underpinning philosophy and reaches approach that was used in the study. The chapter explains the design for the research and the method used to collect data. The chapter then explains the instrument used to collect data, the data analysis method, and ethical concerns that had to be considered when conducting the study.

Research Philosophy

One of the factors that a researcher needs to define in clear terms is research philosophy. It refers to the belief that a researcher embraces to guide the process of collecting, analyzing, and presenting data about a given phenomenon (Tan, 2018). It provides a guideline that a researcher should follow to answer specific research questions. As shown in the research onion in figure 3.1 below, one can choose any of the four philosophies to guide the process of data collection and analysis. Positivism holds the belief that trustworthy and factual knowledge can only be gained through observation and analyzed statistically using an appropriate instrument (Wang, 2019). It emphasizes the use of statistical methods to analyze and present data. Interpretivism is a philosophy that holds the belief that reality can only be accessed through social construction and that a researcher should closely interact with respondents. It is commonly used when a researcher is conducting a qualitative study. Realism as a research philosophy holds the belief that reality is independent of the human mind, and that truth can only be determined through scientific tests and experiments.

The researcher considered pragmatism as the most appropriate research philosophy for the study. According to Aityan (2022, p. 42), pragmatism holds the view that “there are many different ways of interpreting the world and undertaking research, that no single point of view can ever give the entire picture and that there may be multiple realities.” It criticizes both interpretivisms for insisting on only qualitative research, and positivism for emphasizing the use of quantitative research. Pragmatists argue that it is possible to use both qualitative and quantitative data analysis approaches to have a comprehensive understanding of a given phenomenon. It allows a researcher the freedom to choose the most appropriate method that would yield the most accurate result in the study. The philosophy was chosen because it is not restrictive and allows for a comprehensive analysis of data.

Research Approach

When the research philosophy has been selected, the next phase is to identify the appropriate research approach. Tan (2018) explains that it is essential to select a research approach that is in line with the principles and beliefs of the chosen philosophy. A researcher can use deductive, inductive, or abductive research approaches to achieve the goals of the research. The deductive research process insists on developing a hypothesis based on a specific theory, then conducting a test that will reject or confirm the theory (Dawson, 2020). On the other hand, the inductive approach focuses on making observations which then leads to patterns that can be used to develop a theory. The Abductive approach combines both inductive and deductive research approaches.

In this study, the inductive research method was considered the most appropriate tool for collecting data from the participants. Several theories were discussed in the literature review section and some concepts were developed. They had to be confirmed or rejected using data obtained from primary sources. The deductive research approach emphasizes the need to use statistical analysis of data to achieve the intended goal (Deplano and Tsagourias, 2021). It seeks to confirm popular concepts by gathering information from primary sources. In this study, this approach was appropriate in establishing the relationship between the perception of car brands and consumer decision-making processes. It would help to determine if the perception of customers would define the brand of car that they purchase. Figure 3.2 below shows the pattern that the deductive approach of research takes.

Research Design

When the research approach relevant to the study has been defined, the next step is to choose an appropriate research design. A researcher can use qualitative, quantitative, or mixed research design. The choice of the design is often based on the research philosophy and research approach selected, and the aim a researcher seeks to achieve in the study (Deplano and Tsagourias, 2021). Qualitative research design focuses on analyzing a specific phenomenon in great depth beyond statistics. When using this design, the focus of the researcher is to explain the reasons why an event happened in a given way, its impact within an organization or in a country, and how to mitigate its undesirable effects in the future. Although it is an effective method of processing primary data, it was not used in this study.

Quantitative research design, on the other hand, uses statistical data to explain a given event. It is an effective tool when a researcher is investigating the relationship between various independent variables and a dependent variable (Dawson, 2020). In this study, the researcher seeks to investigate the perception of car brands in the UK market and compare it with the perception in the international market. The study will investigate the impact of the perception on the decision-making process of the buyer in the market. Quantitative research design is always effective when one seeks to investigate such relationships between variables. This research design was considered effective in achieving the aim of the research. A mixed-method research design integrates both qualitative and quantitative research design.

Sampling and Sample Size

When investigating the perception of car brands in the United Kingdom, it is important to understand that data can be collected from a large population. Some reports indicate that the country has more than 25.7 million car owners (Scott, 2017). The remaining population of adults without cars also have a perception about car brands, which can influence their decision in case they decide to own a car. It is not possible to collect data from an entire population of more than 30 million people in this academic research. As such, it was necessary to identify a manageable sample size from which data could be collected based on the limited time and financial constraints that the researcher faced.

It was necessary to define inclusion/exclusion criteria when selecting the participants for the study. For one to be considered appropriate for the study, they had to be adults who are currently owning a car or one who has owned a car before. They had to be individuals who understand the functionality and quality of different car brands available in the local market. The researcher decided to include only those who are aged above 18 years. This is considered the age of consent, and it constitutes the highest number of car owners in the country. Visitors who are temporarily in the country and those aged below 18 years were disqualified from the study.

The researcher used a simple random sampling method to select participants. This method was chosen because it gave everyone who qualified for the study an equal opportunity to take part in the study. The method also eliminates personal biases when selecting participants, as Hennink, Hutter, and Bailey (2020) explain. A sample size of 100 individuals was considered adequate to represent the entire population. The sample size was reasonable to collect data from, given the time within which the research had to be completed. Most of these participants were identified from various Facebook pages of car owners and other online forums in the country.

Method of Data Collection

Data used in this research was collected from two different sources. The first source was secondary data, which was obtained from books, journal articles, and reliable online sources. The second source was primary data obtained by interviewing a sample of participants. As mentioned above, the researcher started the process of primary data collection by sampling respondents for the study. After identifying specific individuals who met the set criteria, the researcher directly contacted them through their phone numbers of social media addresses that were available. Wang (2019) advises that it is always essential to get the consent of the employer before contacting their employees for research. However, it was not necessary to get consent in this study because data were obtained from individuals as opposed to companies because of the need to get unbiased information. As such, participants were interviewed by the virtue of their experience owning a car of a given brand.

The researcher made the contact and explained to each participant the significance of this study and the role that they were to play in it. They were informed that the project was purely academic and that their identity will not be revealed to anyone. The researcher guided them on how to answer each question in the questionnaire. As explained in the ethical concerns section, their participation was voluntary. Those who agreed to be part of the study received the questionnaire through their email, WhatsApp, or Facebook addresses. They were given 7 days to answer the questions and email back the filled questionnaire. The researcher made sure that those who failed to email back the questionnaire in time were replaced to ensure that at least 100 participants were included in the study. The next section explains the structure of the instrument that was used to collect data.

Instrument of Data Collection

The researcher developed a questionnaire to help in the process of collecting data. According to Tan (2018), it is always advisable to develop an instrument of data collection before going to the field to engage participants. Having the instrument helps in ensuring that there is harmony in data collection. It guarantees that all participants will be asked similar questions. The questionnaire was developed after conducting a preliminary literature review when developing the research proposal. The questionnaire was divided into three sections, as follows. The first section of the document captured the demographical data of the participants. It included the age of the respondents, gender, and nationality of the respondents. The section was essential in ensuring that any biases associated with age or gender are accurately captured in the study. It also helped in ensuring that only those who met the inclusion criteria are included as participants in the research.

The second part of the instrument focused on the experience customers have had using a specific car brand and their social status. The perception that an individual has about a given product is often influenced by the experience they have had. As such, it was necessary to determine how long an individual had owned a specific brand of a car. Those who have had a long period of using different brands have a better experience to conduct comparison and state the one that they consider most appropriate based on factors such as their price, reliability, speed, comfort, security, and other relevant parameters. The social status was also necessary because, as discussed in the literature review, people of different classes tend to be motivated by different factors when they make their purchases. Any form of bias that could be associated with one’s social class could easily be captured.

The last section of the questionnaire focused on the perception of car brands in the UK market and how they possibly compare with that in the international market. Respondents were asked a series of questions that were meant to help in defining their perceptions about different car brands in the country. The researcher made an effort to determine if their perception had any impact on their decision-making process when planning to purchase a car or when advising a friend about a product that they need to purchase. All the questions used were closed-structured because the research design chosen was quantitative analysis. Closed ended-questions made it possible to cluster responses and code them into values that can be analyzed statistically.

Data Analysis

When data has been collected from the respondents, the next step is to conduct an analysis. The researcher conducted a statistical analysis to respond to the research questions and to achieve the aim of the study. This method is considered effective when processing data that seeks to establish the relationship that exists between variables. In this case, it was useful in determining how customers’ perceptions are developed, and how such a perception influences buyers’ decision-making process. Data obtained from the participants were coded and entered into an Excel spreadsheet. The information was then processed statistically based on the specific question that needed to be answered. The output of the analysis was presented in the form of graphs and charts for ease of understanding. The outcome was used to form the basis of the discussion in the next chapter of the report.

Ethical Considerations

When conducting research, one is expected to take into consideration ethical issues at every stage of the project. According to Saunders, Lewis, and Thornhill (2011), when data is collected from primary sources, one of the ethical issues to be observed is the need to protect the identity of the participants. Views of an individual may be different from that of the majority of those who are in positions of power. If the issue is emotive, one can be victimized or even attacked by those who have a contrary opinion on the issue. The issue of the perception of car brands is not an emotive topic. However, it was still important to ensure that all the participants remained anonymous. Instead of using their actual names, the researcher used codes (Participant 1, Participant 2, Participant 3, and so forth) to identify the participants. It made it impossible for the readers of the report to trace the identity of the participants.

Participation in the data collection process in this study was voluntary. The researcher informed those identified to take part in the data collection about the voluntary nature of the process and the fact that they were at liberty to withdraw from it at any time when they considered it inevitable to do so. The primary goal of the study was explained to these participants, including the role that they were expected to play, as Hennink, Hutter, and Bailey (2020) advise. Only those who agreed to be part of the study were included in the sample. All questions that they had were answered before the commencement of the study.

As an academic research paper, it was necessary to take into consideration the rules and requirements of the school. One of them was to ensure that all forms of plagiarism or academic malpractice were avoided. The paper was written from scratch and information obtained from secondary sources was correctly cited using American Psychological Association (APA 7) referencing style. Data obtained from primary sources was analyzed and presented in the next chapter of the report. It was also a requirement that the report had to be handed in within the time stipulated by the school following all the guidelines provided. These requirements were met to avoid any inconveniences or unintended consequences.

The United Kingdom, and the global community at large, has been successful in managing the spread of the COVID-19 virus and fatalities through vaccination and medical regimen. However, society is still sensitive about the possible spread of the virus. The elderly and those with underlying conditions are specifically concerned about the possibility of contracting an aggressive variant of the disease. It was the responsibility of the researcher to ensure that these vulnerable groups are not subjected to the risk of contracting the disease in the process of data collection. As such, the researcher opted to conduct an online survey to eliminate the possibility of interacting with respondents.

Analysis and Discussion

The previous chapter focused on explaining how primary data was collected and analyzed. In this chapter, the aim is to present the analysis of primary data and to discuss the same. The review of the literature indicated a strong relationship between the perception of car brands and the consumer decision-making process. It was evident that the perception of customers is defined by the experience that they have when consuming a product. The perception can also be influenced by information that is available in the public domain or advice from friends and family. The review of the literature also indicated that one’s perception may not be easily changed once it is formed and that it is likely to influence one’s decisions for a long time. The researcher seeks to confirm or reject these findings based on data from primary sources.

Data Analysis

The next step after the collection of primary data from the sampled respondents was the analysis. As explained in the previous chapter, the researcher used quantitative analysis to process the data from primary sources. A statistical analysis of data was considered effective in achieving the goals and objectives of the study. The analysis involved responding to each of the questions, stated in chapter 1, through statistical methods.

What are the factors that define perceptions of car brands in the United Kingdom’s market?

The first question focused on identifying factors that define the perception of car brands in the United Kingdom’s market. Respondents were asked to mention only one factor that they consider to be the most important in defining the perception that they have of a given brand. Figure 4.1 below shows the output of the analysis of the response obtained from these participants. Price is one of the most defining factors when it comes to consumers’ perception of a brand. The respondents noted that there is a general belief that expensive cars offer superior value to those that have low price tags. Even in cases where one has not tried using a specific brand, they will tend to associate its superiority with the price.

Fuel economy was another factor that emerged as being important when one is defining the perception that they have towards a car brand. In the United Kingdom, there is an increasing concern about the impact of greenhouse gases on the environment. As such, consumers currently value hybrid and electric cars over gasoline cars because of the desire to protect the environment. Consumers are also sensitive about the expenditure on gasoline, which makes them prefer cars that use little fuel (Lucendo, 2019). The report also shows that reliability is another critical factor in defining the perception and preferences of customers. Consumers value cars that do not easily break down when in use. They need assurance that their car will not break down without proper cause and warning.

Safety emerged as another major concern that consumers consider when making their buying decisions. Consumers prefer cars that are stable on the road even when they are driven at high speeds. Sometimes a driver cannot avoid an accident, especially when it is caused by the recklessness of another driver or natural phenomena. Consumers prefer a car that has effective safety mechanisms for occupants. They include properly functioning airbags that offer full security in case of an accident, seatbelts, and interior design meant to reduce the magnitude of such impacts as much as possible. The respondents also noted that they consider maintenance costs when developing a perception of a car brand. They prefer a car that is less costly to maintain even if it is a high-performance car. They want a vehicle that would not require foreign mechanics to help in servicing it regularly.

The design remains an important factor that buyers consider when defining their perception of a given brand. The shape of the car and its aesthetics matter when one is purchasing a car. Although the tastes and preferences of consumers vary when it comes to design, there are conventional factors that the majority of consumers consider. Size, shape, and color remain some of the critical factors that a consumer would consider. Black, silver, and white remain some of the most preferred colors among car buyers (Scott, 2017). In developed countries, consumers tend to prefer heavy cars with low ground clearance as it enhances their stability and performance. Speed is the other factor that consumers noted that they will consider when purchasing a car. Some of the most expensive cars in the market also have the highest speeds. Fill and Turnbull (2019) argue that consumers value high-powered cars like Ferrari and Bugatti because of their speed and stability.

The outcome of the analysis above shows that consumers consider various factors when defining their perception of a specific car brand in the market. It is not about one specific feature in a car that makes it superior to others on the road. The car has to be affordable to the target consumers and with low maintenance cost. It should be friendly to the environment by consuming as low amounts of fuel as possible. It should be a reliable car that does not easily break down without any proper justification. Consumers value a vehicle that offers the maximum safety possible in cases of accidents or incidents on the road. The design of the product in terms of size, shape, color, and space for the occupants, is also taken into consideration. The analysis shows that speed is another factor that should not be ignored by the manufacturers because it also defines their perception of a car’s brand.

What are the factors that define perceptions of car brands in the global market?

The study aimed to investigate the perception of car brands in the UK market and to compare them with perceptions in the international market. The goal was to determine if the local perception in the UK is similar to those in various countries around the world. Achieving this goal will help car manufacturers to position their products accordingly both in the local and foreign markets, especially the car manufacturers that have their production plants in the country. It is important to reiterate that data was only collected from individuals who are currently living in the United Kingdom. The researcher could not easily reach respondents in the international markets. The majority of the respondents noted that they have used cars in places out of the country. When asked the same question regarding foreign markets, they noted that the above factors, identified in figure 4.1, also have a direct impact on the perception of consumers in the international market. As such, price, maintenance cost, fuel economy, reliability, safety, design, and speed are the primary factors that define the perception of car brands in the global market.

How does the perception of car brands in the UK compare to that of the international market?

The researcher was interested in conducting a comparative analysis to determine similarities and differences in the perception of car brands in the UK and that of the global market. When reviewing the literature, it emerged that the perception of car brands in developed countries tends to be similar. However, there was a variation when the comparison is between a developed economy and one that is developing. Masterson, Phillips, and Pickton (2021) explained that such variations are caused by the difference in road infrastructure, the purchasing power of consumers, and the purchase for which a car is purchased. For instance, a Bugatti is a superior car to most, and it is admired by an overwhelming majority of car buyers around the world. However, the poor road infrastructure in some of the developing countries in Africa and Asia makes it impossible to use it there. As such, its superiority becomes of little value if one cannot use it. The researcher decided to conduct a comparison of the local market with that of a developed country and that of a developing nation to determine the relationship.

In the first comparative analysis, the researcher focused on two developed economies. Respondents were asked to state whether they believe the perception of car brands in the UK is similar to that of the US. The purchasing power of consumers in these countries is relatively the same, and so is the nature of the road infrastructure. Figure 4.2 below shows the outcome of the quantitative analysis conducted. The outcome of the analysis shows that 46% of the respondents strongly agree with the statement that the perception of car brands in the UK is similar to that in the US. Another 33% of the respondents agree with the same statement. It means that an overwhelming majority of the respondents, at 79%, believe that the two countries are similar when it comes to the perception of car brands. 12% of the participants noted that they are not sure about the relationship. Less than 10% of the respondents had a contrary opinion to that of the majority, with 7% disagreeing with the statement, while another 2% strongly disagreed.

The outcome of the analysis shows that the two markets share the perception of car brands. It means that factors that would influence a car buyer in the United Kingdom are the same as what will influence consumers in the United States. Scott (2017) attributes the similarity to factors such as purchasing power of consumers, infrastructure, and preferences of consumers among others. It means that a car manufacturer in the UK can position its products in these two countries in a similar way.

The review of the literature indicated that the perception may vary when comparing one developed country with a developing nation. As such, the researcher decided to compare the United Kingdom with India to determine if the perception of car brands in the same or otherwise. Figure 4.3 below shows the outcome of the analysis of data obtained from the participants. The data shows that only 1% of the participants strongly believe that the perception is the same, while another 5% agree with the statement. It means that only 6% of those who took part in the study believe that there is a similarity. Another 7% of the participants noted that they were not sure about the relationship. 52% of the participants disagreed with the statement that the perception is the same, while another 35% strongly disagreed with the statement. It means that a vast majority of those who took part in the study, 87%, believe that the perception of car brands in the UK is not similar to that in India.

Although India’s economy is considered larger than that of the UK, which is primarily attributed to India’s population that is more than 20 times larger than that of the UK, it is still regarded as a developing economy when GDP per capita is taken into consideration. The majority of Indians who own cars consider the functionality of the vehicle as opposed to aesthetic value. They need a vehicle that can facilitate their movement and transportation of their goods from one location to the next. Factors such as comfort are not valued by the majority as it is in the UK. It is important to note that the analysis focused on the market in general. The UK has car buyers who are financially constrained and their goal may be similar to that of the majority of car owners in India. On the same note, some consumers in India are rich enough to purchase some of the best car brands in the market.

What is the impact of customers’ perception on their buying decision in the car industry?

Car manufacturers are keen on influencing the perception of customers towards their cars. According to Scott (2017), promotional campaigns are often meant to ensure that the target audience’s perception is influenced in a given way. The researcher asked respondents if they believe consumers’ perception of a car’s brand influences their buying decisions. Data obtained from the participants was analyzed statistically using Excel and the outcome of the analysis is presented in a chart shown in figure 4.4 below.

The data shows that 78% of the participants strongly believe that consumers’ perception of the brand of a car influences their buying decision. Another 18% agreed with the statement, which means that there was a near-unanimous agreement, at 96%, among the respondents that consumers’ perception directly influences the buying decision. Of those interviewed, 2% noted that they were not sure about the relationship between the two variables. There were only 2% of those who had a contrary opinion to that of the majority, with 1% disagreeing and another 1% strongly disagreeing with the statement.

The analysis shows a correlation between consumers’ perception and their buying decisions when they intend to purchase a car. It shows that when consumers have a positive perception of a brand, then they are likely to purchase its cars. They embrace the belief that the brand will offer them the value that they desire. Dawson (2020) notes that because of the cost associated with cars, it is likely that one may make consultation before making their purchases even in cases where they have their personal opinion. It is common in cases where one’s is unable to decide between two brands that they consider superior. In such a case, an opinion of a friend or a relative may be the factor that decides the car that they purchase. As such, car companies must ensure that they influence the perception of the general population as much as possible.

How can companies influence customers’ perceptions as a way of promoting their brand in the market?

The analysis of primary data has reaffirmed the importance of the perception of car brands in the buyer decision-making process. Car manufacturers are now aware that decisions that their customers make are significantly influenced by their (buyers’) perception. The research needed to provide information about ways in which a company in this industry can influence customers’ perceptions of their brands. Respondents were asked to state one way in which they believe these companies can improve customers’ perception of their brand. Figure 4.5 below shows the outcome of the analysis of primary data.

A significant number of the respondents noted that offering superior value to customers is the best way of enhancing the perception. In many cases, consumers’ perception is often influenced by the experience that they have when using a given product. When they are thrilled with the value offered, their perception will improve even if they doubted the value of the product before. As such, car manufacturers that are keen on influencing the perception of customers should start by offering them a superior value.

The use of emerging technologies to improve the product was identified as a major factor that can help improve customers’ perception. In the United Kingdom, the United States, and many other developed nations, customers are moving towards electric and hybrid cars (Bridge, 2020). They feel the need to be environmentally responsible when buying and using cars. As such, when presented with two equally good car brands, they are likely to choose an electric car or a hybrid over that which purely uses gasoline. These companies should use emerging technologies to improve the efficiency of their cars as well.

The advertisement was identified as another major factor that can help influence customers’ perceptions. Having a superior car in the market is not enough when a firm is operating in a highly competitive market. The advertisement makes it possible to inform customers of the existence of a given brand and its products, its proposition in the market, and the reasons why it is superior to other brands. Advertising has always been used as a means of promoting a firm’s brand. However, Lucendo (2019) warns that when using this powerful tool to promote a brand, care should be taken to avoid making promises that a firm cannot deliver. When customers are offered a value that is below what the firm promised, then there is a risk of dissatisfaction, which will negatively influence the brand image. Respondents also identified communication as an important factor, especially when addressing major controversies and issues with customers and members of the public. A firm needs an interactive form of communication that allows them to get information from customers and respond accordingly.

Pricing remains a major factor when seeking to define the perception of customers in the market, as shown in the figure below. According to Lucendo (2019), when a product is given a higher price, there is an overall perception that it offers a higher value. On the other hand, when the product’s price is low, consumers will believe that it is inferior. It is the responsibility of the firm to ensure that its products are priced based on the value that they offer. Factors such as car variety and designs of the car should also be taken into consideration when a firm seeks to influence the perception of customers in the market.

Discussion

The United Kingdom’s car industry, just like that of the global market, has experienced a massive growth over the years. As the market size continue to grow, segmentation and targeting have become critical for the manufacturers keen on expanding their market share. The perception of customers towards specific products generally depends on the segment in which they belong, as explained in Maslow’s hierarchy of needs (Fill and Turnbull, 2019). However, the perception can also be influenced by other factors which are unique to each country. Primary data analyzed above and information obtained from primary sources reviewed in chapter 2 of this report show that perception of car brands in the United Kingdom is defined by various factors. These factors include the price of the product, its reliability, design of the car, fuel consumption, its friendliness to the environment, performance, and speed.

The study revealed that the perception of car brands in the UK market is similar to those in equally developed nations of the United States, Canada, France, and Germany among others. These advanced economies share a number of factors, which directly influence the perception of customers. There is the road network that can sustain the use of supercars, something that is not common in the developing economies (Lucendo, 2019). The data analyzed also show that the purchasing power of people in these developed economies is relatively the same, and significantly higher than that of emerging economies. Tastes and preferences of people in the UK is also similar to those in these developed nations. As such, it is likely that the perception that customers have towards car brands is generally the same.

When comparing the perception of car brands in the UK market with that of the developing nations, the study found a significant different. Lucendo (2019) explains that the purchasing power of customers in the third world countries is significantly lower than that of the UK. As such, a customer in a country such as Bangladesh or Rwanda will focus on a basic car that can facilitate their movement from one place to the other without taking into consideration factors such as comfort. Road infrastructure in these third world countries are also so deplorable that it is impossible to use car brands such as Lamborghini, Ferrari, or Bugatti. Although these consumers know that these are supercars, they are indifferent towards them because they cannot only afford them, but they also lack proper roads on which they can be used. Tastes and preferences of these consumers are different from that of the developed economies. These consumers are willing to compromise on quality as long as they are assured of a lower price, something that is uncommon in the UK.

Impact of Consumers’ Perception of a Car Brand on Their Buying Decision

Car manufactures should understand how consumers’ perception of their brand affects their buying decisions. According to Fill and Turnbull (2019), when there is a stiff competition in the market, customers’ decisions are often influenced by minor issues. Sometimes when a consumer has only two brands to choose from and they cannot settle on the one that offers the best value, they will rely on a friend or a family member who they believe have experience or knowledge about the two competing products. It means that their final decision will depend on the perception of the friend or family.

The perception that an individual has is often influenced by various factors, one of which is the information that is available in the public domain. When there is a constant debate on online platforms and other social settings that a given brand offers substandard services, people will believe it even if they have not use the service (Scott, 2017). They trust that those who have the opinion used the product and got disappointed in the process. In such cases, they will avoid purchasing the product or advice others against it primarily because of information obtained in public discourse. They may not even bother to try the product and confirm those claims.

The perception of a customer can also be influenced by the actual usage of the product. When purchasing a car, there is always the expectation that one has. When the expectation is met, they will be satisfied with the product and its brand. When it is exceeded, they will be thrilled, and they can become evangelists for the product (Lucendo, 2019). When the expectation is not met, they will be dissatisfied, and can spread a negative message about the brand. Segmentation and target marketing becomes critical at this stage because it helps in ensuring that a firm only focuses on a specific segment of the market whose needs it can meet in the best way possible. It helps in eliminating cases of dissatisfaction caused by targeting a market whose needs cannot be met by a firm’s current products.

Once the perception of an individual has been made, it may not be easy to change it. When one was thrilled with a given brand of a car, they will remain loyal to it, and are likely to purchase the same brand in the future. They will also spread positive information about the brand based on their experience. On the other hand, when they were disappointed by the product, the negative experience can last long. Effort by a firm to change the perception through strategies such as promotional campaigns may not yield expected results, as Morganti and Browne (2018) observe. It is, therefore, important for a firm to ensure that it defines the perception that customers have of their product. Any issue that may result into a negative perception towards their brand or any of their products should be addressed swiftly and effectively.

How to Influence Customers’ Perception

The outcome of the analysis of primary data and information gathered from participants strongly suggests that customers’ perception of a brand significantly influences their buying decision. It also defines how such individuals influence others’ perception in case their opinion is sought. As such, it is essential for car manufacturers in the United Kingdom and around the world to find ways of influencing customers’ perception in a way that would favor them. A firm can use several strategies to ensure that they influence customers’ perception. This section will discuss some of the effective strategies of influencing how people feel about a given product.

One of the best ways of influencing customers’ perception is through a continuous delivery of high quality products. A significant number of those who develop a perception towards a given brand often base it on their experience. As discussed above, their experience will be positive or negative depending on how well their expectations were met (Scott, 2017). A firm that maintains a high quality in its production of cars will earn a positive reputation in the market. Factors such as engine capacity and reliability, a car’s design based on customers’ needs, and comfort will all influence how customers feel about it.

Customers’ needs and expectations in the market continue to evolve based on emerging trends and practices. It means that a firm must find a way of continuously adjusting its products to meet these new needs. Emerging technologies can help a firm to maintain continuous improvement of its products. Successful companies such as Mercedes Benz have embraced innovation as a way of keeping up with technology. Once it has introduced a new revolutionary product in the market, it will focus on the development of another product (Morganti and Browne, 2018). At the firm, there is a constant pressure to deliver to the market something that will thrill customers. Although some of their products are expensive, they have successfully created a unique niche for its customers because of its ability to meet unique needs.

Promotion remains an effective tool of promoting the image of a brand or a product in the market, especially when the level of competition is stiff. It acts as a reminder that a firm has a product that meets expectation of customers. Sometimes it also reminds customers of a new variety of product that a company offers that is not already available in the market. Mercedes Benz has taken the lead in the production of executive saloon cars meant for the rich (Mitrache, 2015). However, it also has SUV models, such as the G-Wagon, shown in figure 4.6 below, that can be used in different terrain. The advert is meant to remind consumers of the product of the company and how superior it is to the existing brand. As mentioned above, the promotional message should be directed to a specific segment of the market.

Managing public image is another factor that has to be considered when trying to manage the perception of customers in the market. As Mitrache (2015) observes, it is common for issues to emerge when operating in any market. In the car industry, issues such as faulty break system, leakages in the engine, a problem with a car’s computer, or a possible fire threat have been reported in the past. In such cases, it forces the company to recall all the products with such faults and to compensate customers or dealers as may be appropriate (Ackermann, 2021). Besides taking such corrective measures, the management should communicate to the public, explaining the cause of the problem and how it will be addressed. The company should also reassure customers that existing products do not have similar problems. Effective and timely communication helps to avoid rumors and miscommunication that may hurt the brand image in the market.

Conclusion

The car industry has achieved massive growth over the years. The report shows that although the COVID-19 pandemic had a crippling effect on the sector, it has successfully made a recovery and is likely to experience further growth. In the United Kingdom, there is massive competition among local and foreign car manufacturers. As such, there is a need for each company to ensure that they define the perception of their customers towards their brand. Findings made from both primary and secondary sources show that there is a direct relationship between customers’ perception and their buying decisions. When they have a favorable perception of a given brand, they are more likely to purchase it.

The researcher was interested in comparing the perception that UK customers have towards car brands and that of international customers. The analysis of data and the review of the literature revealed that the perception of customers depends on the economy of the country. In developed economies such as the United Kingdom and the United States, the perception of customers toward car brands is the same. These customers have the same purchasing power, tastes and preferences, and road infrastructure that will support the usage of these cars. However, the same is not true when one compares a developed economy with a developing economy. In developing countries such as India, the majority of customers are sensitive about the price. As such, they are often willing to overlook factors such as comfort and the unique design of the car they purchase as long as they get the product at affordable prices.

The leading manufacturers of cars in the United Kingdom should understand the significance of customers’ perception of their brand when they (customers) are making their buying decisions. They need to find ways to create a favorable perception of their product to ensure that they are prioritized when customers are making the decision. The respondents identified different ways in which a firm can protect its image in the market despite the stiff competition that exists in the market. The paper also outlines the importance of segmenting the car market based on the targeted consumers and the country that is targeted.

Recommendations for Practice

The perception of car brands in the United Kingdom and other markets around the world is defined by several factors. It is the responsibility of individual car manufacturers to understand and act in a way that will ensure that it gets a favorable perception among customers. In a market that is as highly competitive as that of the car industry, companies should focus on strengthening their position in the market. The following recommendations can help strengthen the perception of a car brand in the local and international markets:

• A firm should segment the market and identify customers’ needs in that specific segment. This strategy will help eliminate dissatisfaction that may be caused by trying to serve customers whose expectations are too high to be met by a firm’s products;
• A firm should develop products that address the specific needs of customers in the selected segment. Once the segment has been identified, it is the responsibility of the production department to develop customer-specific products;
• A brand and its products should be positioned in a way that reflects its value and the needs of customers. The promotional message should reflect both the needs of customers in the market and quality that the product offers;
• It is necessary to embrace emerging technologies and improve the product in line with the changing tastes and preferences of customers. Emerging technologies will help a firm to adjust its products based on the emerging needs and expectations of customers;
• The need to protect the environment is becoming increasingly important in the local and global market. As electric and hybrid cars gain popularity, it is necessary for the local manufacturers to redefine their products to ensure that they are in line with the emerging environmental needs.

Recommendations for Further Studies

The car market is growing rapidly and it has attracted the attention of scholars who have been interested in addressing specific issues. In this study, the researcher sought to investigate the perceptions of car brands in the UK market and to compare them with perception internationally. The focus of the study was narrow enough to facilitate detailed investigation that can help local players to enhance their competitiveness both in the local and international markets. However, there is a need to conduct a further investigation to address issues that were beyond the scope of this study. The following recommendations should be considered by scholars in this field:

• It is important to investigate difference in perception of car brands between the United Kingdom’s market and that of the other developed economies in North America. The investigation should focus on determining whether there are specific cultural differences in Europe and North America that makes consumers’ perception to vary;
• Further studies are needed to determine the role of the government in defining the perception of customers within a given country. The impact of government policies may help in explaining differences in customers’ perception between the UK and any other developed nation in Europe.
• Scholars should conduct further studies to determine if the COVID-19 pandemic has had a lasting impact on the perception of car brands in the UK and the international markets. The focus should be on determining how the new trend of working from home has changed consumers’ perception towards specific car brands.

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