INTERNAL AND EXTERNAL FACTORS AFFECTING CHOICE OF MOTOR VEHICLE MODELS: A CASE STUDY OF TOYOTA KENYA
Paskweline Wanjiku Maingi - Executive Masters, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Understanding the behavioral responses of customers to the actions of a company is an on-going need of companies and organizations providing goods and services within a competitive environment. This study set to establish the factors that influence the choice of products by customers. The study was guided by the following specific research objectives: examining how the vehicle attributes affect the consumers’ choice of the motor vehicle model; examining how road terrain influence the choices of motor vehicle models; investigate how price influence the choice of motor vehicle model; and examine how awareness created advertising influences the consumer choice of the motor vehicle model. The study employed descriptive research design where the respondents were required to describe the decision process in the car model purchase. The study population comprised of all 1,129 customers classified into five categories: private companies, government, Non Governmental organization individuals and parastatals. The study used stratified sampling to select 113 respondents. Primary data was collected by the use of a questionnaire while secondary data was collected using desk research from the company records. The study concludes that both internal and external factors had influenced consumer choice of the motor vehicle they bought from Toyota Kenya. The significant factors that greatly influenced consumer choice and decision regarding purchase of motor vehicles model included terrain, product attributes, product price and awareness through advertisement. The study recommends that companies should take advantage of internal and external factors such as attractive payment arrangement, variety of vehicles to choose, popularity of the vehicles, heavy advertising from the company, family size; rough roads in rural areas and security purposes to influence consumers’ choice of buying motor vehicles from their company; companies should take note of price they set on their products and gasoline consumption of the car as they determine consumer product choice such as Toyota Motor vehicle models; motor vehicle manufacturers should consider terrain before making the motor vehicle model and motor vehicle manufacturers should come up with high quality vehicles and enhance products attributes of vehicles by adding new features. Companies should invest heavily on vehicle advertisements because it influences consumer product choice and advertising of a vehicle should be very effective especially if there is demonstration on how it works.