Consumer decision making on car purchases in Kedah

• Main Author: Ahmad Radhi, Nungsari
• Format: Monograph
• Language: English
• Published: Universiti Utara Malaysia 1991
• Subjects: HG Finance
• Online Access: http://repo.uum.edu.my/3488/1/NUNGSARI_AHMAD_RADHI_-_Consumer_Decision_Making_On_Car_Purchases_In_Kedah_%281990%29.pdf; http://repo.uum.edu.my/3488/; http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo=0000164973

The research seeks to examine the factors involved in consumer decision making on car purchases in Kedah. Data were obtained through a household survey throughout Kedah, carried out in March, 1989. The model proposed for the research hypothesized that consumers' purchase decision are made by maximising their total utility subject to the constraint of income, the approach of consumer behavior in microeconomics. The total utility are derived from utilities from the attributes; economic, physical, convenience and aesthetics, of a car which are, in turn, dependent on consumers' perceptions on the attributes. These perceptions are different for different types of consumer characteristics, making purchase decisions to be finally dependent on consumer characteristics. The three main objectives of the research correspond to the three stages described above- perceptions on attributes, influence of consumer characteristics on perceptions, and roles of consumer characteristics in purchase decisions. It was found that consumers do not intend to exhaust the consumption of car purchased. Apart from fulfilling immediate needs, the consumer is also fulfilling some aesthetic wants. Price is not significant since consumer seeks the car they can afford. Income level is the most influential determinant of patterns of perceptions and purchase decisions. Consumers, however, tend to base their decision on gross income rather than net income which suggests a heavy reliance on credit. This was found to be more pronounced among public sector employees. The racial background of a consumer was, surprisingly, found to be insignificant in influencing patterns of perceptions, and therefore purchase decisions. Rural and urban consumers also exhibit different patterns of perceptions and purchase considerations. Urban consumers are more "trendy" which makes them somewhat irrational in their purchase behavior. It was also found that, in general, high income consumers are more rational in their behavior compared to low income consumers. The high relative price of durables with respect to non-durables suggests that consumers derived a much higher marginal utility from durables than from non-durables which include basic necessities.