Why Chinese teenagers choose German auto car?

无标题

In China who driving luxury vehicles average age nearly younger 10 years old compared with other countries average age (Paul H, 2015), hence, German luxury car maker target younger in China. This article will research and analysis why Chinese teenagers preferred to choose German auto car.German traditional auto car’s brand including Audi, BMW and Mercedes-Benz, general called ABB. German auto car has made a huge market in China.

Consumer & Demand and Brand

202

Maslow’s hierarchy of needs chart shows that triangular distribution of different requirements. Bases on China national conditions, vehicles are not necessary requirements, especially the luxury vehicles; therefore, consumer who trends to purchase luxury vehicles is the target of German auto companies.

Teens wield significant purchasing power (Issie, 2014) hence; the German auto company tries to design younger and sport auto’s style to satisfy teenager’s demand in consumer per-purchase phase. In pre-purchase phase, consumer will recognize need.

German auto companies branding strategy in China has a high effective, German auto brand stand luxury, durable, even social status. Recently years, German auto companies manufacture different types sedan or SUV to China, such as Audi produced A1, A3 and Q3, BMW produced X1, 1 series, and 2 series, Benz produced A Class, B Class and CLA. Those vehicles price range from $20000 to $60000. Popular price combine with premium luxury brand made German auto companies got more consumer.

Consumer & Purchase Process

203

Consumer purchase process includes pre-purchase, purchase and post-purchase. Therefore, German auto companies used difference sales strategy at every phase because every effect factor can lend to consumer choose other brands. It includes German auto compete with each other inside.

In pro-purchase phase, consumer behaviors include try to know all brands and try to get more information form Internet and friends. Those behaviors mean consumers consider brand effect and self-budget to narrow brand down in this way. Hence, German auto have more advantage in pre-purchase phase. Such as Audi entered China in 1988, traditional German auto brands have more believable effects.

In purchase phase, consumer behaviors include narrow consideration set and decide on retail channel. Those behaviors mean consumers have decided made a final choose and decided to purchase. However, in this phase have a lot of different notices need to be considered. Due to luxury auto brand designed and produced younger auto type with popular price, more Chinese people preferred to choose German auto brand, especially young people. On the other hand, German auto companies produced a several of compact cars to developed their Chinese market, it means the upscale market’s brand begin to involve the middle-end market and made a huge successful in China auto middle-end market.

In post-purchase phase, consumer behaviors include determine satisfaction and after services. Generally, post-purchase phase decided consumer whether become brand’s loyal customer or not, and decide or effect next time’s choose. In China, Automotive average life expectancy is 10 years and had a policy that vehicles should be discard as useless over 10 years or 100000km (China Gov.). Hence, post-purchase phase decides next choose. On the other hand, auto companies will get huge profits in vehicle maintenance and repair. Luxury auto brand have enough ability to offer high-quality service to consumers.

Consumer & Evaluation

204

Consumer evaluation process shows that consumer purchase behavior depend on expectations and experience, German auto companies entity into China dominant upscale market from 1988, through excellent quality and service made a good impression in Chinese consumer. Hence, consumer’s evaluations will trend to choose those brands; consumers would consider and comparison quality, price, safety and comfort with other brands.

Conclusion

German auto made a huge successful market in China depends on coincidence Chinese consumer behaviors. Brand effects can attract more consumer attention, through advertise German auto’s brand, excellent quality and confortable drive experience can got more consumers attention in pre-purchase phase. On the other hand, German auto changes strategy and plan in China market and manufacture different types sedan or SUV with lower price, through price strategy effect consumers behavior. Teens would consider purchase luxury brand even not enough budget, different market consumer target design different type of car, different consumer budget have different recommend, traditional luxury German auto beginning to developed more huge middle-end market and designed younger and sport auto style to attract teens in China.

 

Published By XIAOPENG

xiaopeng@deakin.edu.au

 

 

 

 

 

Reference

Issie L 2015, “Why Teens Are the Most Elusive and Valuable Customers in Tech” [online] Available

http://www.inc.com/issie-lapowsky/inside-massive-tech-land-grab-teenagers.html

[Accessed July 31, 2016]

 

Poal H, 2015,“China’s new car market goes ex-growth as used car sales take off” [online] Available

http://blogs.ft.com/beyond-brics/2015/06/30/chinas-new-car-market-goes-ex-growth-as-used-car-sales-take-off/

[Accessed July 31, 2016]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s