Nearly half of car buying decisions are based on emotive needs such as potency, prestige and status, says the findings of the 2004 four-wheeler brand health and need segmentation study, released today by TNS.
The study includes responses of about 2,000 new car buyers, with around 8,000 evaluations, from 13 cities, Ahmedabad, Bangalore, Chandigarh, Chennai, Kochi, New Delhi, Hyderabad, Kolkata, Lucknow, Ludhiana, Mumbai Pune, and Surat.
"Contrary to the belief that prestige and status needs are pre-dominantly among buyers of higher-end vehicles, the study clearly reveals that needs exist across vehicle segments," said Rajeev Lochan, general manager (Asia Pacific) of TNS Automotive.
"While prestige and potency related needs are the key motivators for entry luxury buyers, these needs exist across segments, including the cheaper small cars" he added.
According to the study, potency buyers are motivated by a trendy brand image and innovation, while utility buyers seek basic transportation and family care. The study further says that buyers who value prestige are least price sensitive.
"It is apparent from the need segment drivers that a majority of motives are about what a consumer desires to communicate to the outside world based on the car he or she uses," said Lochan.
"Therefore, it is vital to understand these underlying drivers for consumer behavior and position brands accordingly instead of solely focusing on rational elements of purchase such as fuel economy and engine power."
The study identifies six need segments in the automotive market. Potency buyers are motivated by a need to attract opposite sex and feel powerful; brand image of trendy and innovative appeals to this group.
Utility buyers seek a need for basic transportation and care for family; Value for money and cost of ownership are the benefits that these buyers associate with.