Honda : the Significance of Consumer Behaviour

According to the authors of Consumer Behaviour: Building Market Strategy, Consumer Behaviour can be defined as 'the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society'. [Hawkins, D Mothersbaugh, D & Best, R (2007)]

Consumer behaviour is important to businesses as it includes acquisition of information to stimulate purchase by consumers. Business organizations keep in mind that by understanding the thoughts, feelings, actions of consumers, they can positively attract new customers and retain current ones. Organizations can not only benefit from understanding consumer problems but also establish a competitive advantage.

Honda a multinational corporation headquartered in Japan, is the sixth largest automobile manufacturer in the world. Honda produces automobiles, motorcycles, and power products. The company also develop innovating technologies to meet the demands of the future. Honda emphasizes on establishing customer relationships through its products and services by confronting key issues and providing solutions.

Hence, Honda's necessitate to research closely on consumer behaviour before their product is launched into the market. Honda wants their customers to always enjoy the crucial satisfaction of mobility. They are determined to remain ahead of their competitors, while being valued for their activities by society and customers worldwide. Honda researches closely on the market and the society in order to create quality performance position within the market. By considering certain factors in a consumer's life, preference, ideas, likes and dislikes, Honda ensures their products and services are met accordingly. Before launching a product, Honda's team of researchers launch into an array of studies on consumer behaviour to meet the particular needs of customers in different regions around the world. Honda has been known as a quality brand offering the style and performance for their enthusiasm in improving their automobiles. With competitors gaining entrance to the already competitive market, Honda has a need to research the consumers. Competitors aim to capture the attention of the market by creating value for money offerings and enhancing brand position through other ranges.

In today's world of evolving technology, consumer tastes are categorized by fast changes. To survive in the market, Honda has to be constantly innovating and understand the latest consumer trends and tastes.
Consumer behaviour provides important clues and strategy to marketers on how to explore and conquer the market. By understanding the four applications to effectively understanding consumer behaviour, Honda will effectively satisfy consumer wants and demands.

Marketing strategy is the effective use of a business plan which combines product development, promotion, distribution, and pricing approaches. It is also used to identify a firm's marketing goals and explains how it will be achieved within a stated timeframe. Marketing strategy determines the choice of target market segment, positioning, marketing mix, and allocation of resources. By conducting research on consumer behaviour, Honda would be able to develop their product according to consumer's preferences. With effective use of promoting tools and efficient distributing services, Honda can gain competitive advantage. Honda can use the analysis of their research to target their preferred consumers and position their product.

Honda must research closely on consumer behaviour in order to effectively ascertain regulatory policy through marketing activities such as safety and privacy protection. Regulatory policies are made in order to protect and aid consumers, which is why Honda maintains a commitment to preserving consumers' privacy. By letting consumers know their information is safe, consumers will definitely keep Honda's image as a reputable and trustworthy automobile company. Research on consumer's behaviour and their environment is crucial to ascertain the organizations products not only meet the demands and satisfaction of its customers but also to the consent of the respective governments while promoting for a better environment. (http://www.ohio.honda.com/CompanyInfo/privacy.cfm)

Social marketing is the application of marketing strategies and tactics in which Honda can use to alter and create behaviours to have a positive effect on their target market and the society as a whole. Honda can use social marketing as an advantage to their campaign when targeting on different segments through personalized promotions, advertisements and societies.

In an online article titled "Honda Civic Tour Delves Into Social Media", the band Fall Out Boy fans of the Honda Civic Hybrid, agreed to a sponsorship of their tour and appear in promotional videos on their tour site, actively recommending the car for its environment friendly aspects. (Aun, 2007)

Studying consumer behaviour make us better consumers. Honda believes in studying the consumer's behaviour in order to gain insight on a consumer's environment to enhance Honda's brand position by understanding the environment it is in. Informed individuals are to strengthen the consumers' ability to make choices according to characteristics and values of a product. Honda aims at accomplishing this goal by implementing certain types of promotion, advertising, sales pitch etc to influence the consumers buying decisions. This is important to an organization like Honda as the attitudes and behaviours of the consumer is affected by these informed individuals. In order to gain acceptable reviews, Honda must research closely on consumer behaviour.

The efforts done by Honda can decrease the chances of failing in the automotive industry. To succeed, Honda has to understand what makes potential customers behave the way they do. Honda's goal is to get enough relevant market information to develop accurate profiles of buyers that is basically to find the general ground and symbols for communication. The primary mission of advertising is to reach prospective customers and influence their awareness, attitudes and buying behaviour.