Case Study Kapoors Buy a Car

Case Overview

The Kapoor family is looking to purchase a new car. Here are the key facts:

Family Members:
- Mr. Arun Kapoor (49): Senior Manager at TCS in Mumbai
- Mrs. Alka Kapoor (44): School Teacher
- Rohan (21): Son, a first-year degree student at MIBI College
- Arati (18): Daughter, a first-year junior college student at St. Xavier's, Mumbai

Current Car: The family owns an old Humberland model that they have been using for the past eight years.

Decision-Making Process: The family has shortlisted three mid-sized cars for consideration:
1. Humberland's Compare
2. Milton's Crusader
3. Amandas Falcon

4.5.2 Analyzing Family Dynamics in Consumer Decision-Making: The Kapoor Family Case Study

Key Factors Affecting the Decision

The Kapoor family consists of members from different demographic segments, which include:

Geographic: All family members are from Mumbai, which doesn’t influence the decision in this case as they are all from the same geographic location.

Demographic: The family members vary in age, gender, income, educational background, and occupation. This introduces diversity in their preferences and needs.
- Arun Kapoor (Father, 49): Senior Manager at TCS, socio-economic classification A.
- Alka Kapoor (Mother, 44): School Teacher, socio-economic classification A.
- Rohan Kapoor (Son, 21): First-year degree student, socio-economic classification A.
- Arati Kapoor (Daughter, 18): First-year junior college student, socio-economic classification A.

Psychographic: The family members exhibit different lifestyles, personalities, and interests, all of which influence the decision-making process:
- Arun Kapoor: Risk-averse, organized, cost-conscious, brand-loyal.
- Alka Kapoor: Rational, cost-conscious, passive in the decision-making process.
- Rohan Kapoor: Extroverted, innovative, image-conscious, persuasive.
- Arati Kapoor: Focused on aesthetics and social approval, emotionally driven in her preferences.

Each family member, due to their distinct psychographic traits, represents a different consumer segment with unique preferences. The father's priorities might center on function and cost-efficiency, while the son might be more concerned with the brand image and modern features.

Target Segments in the Decision-Making Process

1. Father (Arun Kapoor):

Personality & Characteristics: Organized, risk-averse, cost-conscious, brand-loyal.

Need Recognition: The old car needs a replacement due to age, and the focus is on functional and economic value.

Pre-Purchase Information Search: Looks for reliable information on the car's functionality, cost-effectiveness, and the overall brand.

Evaluation Criteria: Prioritizes reliability, cost, and reputation of the car brand.

2. Mother (Alka Kapoor):

Personality & Characteristics: Rational, cost-conscious, passive in the decision-making process.

Need Recognition: The mother does not have a strong reason for purchasing the car but is open to contributing her opinions and listening to the rest of the family.

Pre-Purchase Information Search: She listens to others, considers practicality, and assesses cost-effectiveness.

Evaluation Criteria: Focuses on value and practicality but is not as actively involved in the decision-making.

3. Son (Rohan Kapoor):

Personality & Characteristics: Extroverted, innovative, brand-image-conscious, persuasive.

Need Recognition: He wants something new, innovative, and with the latest features. He is more self-expressive in his needs and wants to stand out.

Pre-Purchase Information Search: Actively seeks information through reviews, customer feedback, and comparisons of different models.

Evaluation Criteria: Focuses on the latest technologies, style, and image-conscious aspects, like the brand’s prestige.

4. Daughter (Arati Kapoor):

Personality & Characteristics: Emotionally driven, concerned with looks and social approval.

Need Recognition: Her desire for a new car is motivated by emotional benefits and the need for social acceptance from her peers.

Pre-Purchase Information Search: Looks for something that will make her peers admire her, focusing on the car’s aesthetics and status.

Evaluation Criteria: Focuses on design, looks, and social validation rather than functional or economic concerns.

Need Recognition Drivers

Each family member has different reasons for the car replacement:

Father (Arun Kapoor): The car is old and needs replacing. His need is driven by functional value (the car must serve the family's practical needs) and economic value (affordability).

Mother (Alka Kapoor): There is no urgent need for a new car, but she is happy to be involved in the decision-making process.

Son (Rohan Kapoor): Seeks something innovative, driven by self-expression and cognitive decision-making.

Daughter (Arati Kapoor): Wants a car that will impress her friends, motivated by emotional needs and social validation.

Pre-Purchase Information Search

Information Requirements

Each family member seeks different information during the pre-purchase phase:

Father: Mileage, cost, space, reliability, dealer network, and brand reputation.

Mother: Cost, ease of use, and comfort, but she does not actively search for information.

Son: Style, performance, technology, brand image, and customer feedback.

Daughter: Looks, social acceptance, and opinions of friends.

Sources of Information

The family gathers information from multiple sources:

Public Sources: Websites, TV, radio, magazines.

Personal Sources: Friends, family, co-workers, celebrity endorsements.

Experience: Past experiences and test drives.

Factors Affecting Information Search

Product Characteristics: Expensive, complex, and requiring careful consideration.

Market Characteristics: Multiple alternatives available, creating a need for more research.

Customer Characteristics: Different consumer segments (father, mother, son, daughter) looking for different types of information based on their personalities, preferences, and level of involvement.

Evaluation of Alternatives

The evaluation process involves compensatory decision-making, where the family members weigh different car attributes against each other. However, each member prioritizes different factors:

Father: Focuses on cost, reliability, and functionality.

Mother: Evaluates based on practicality and overall family comfort.

Son: Prioritizes the car's image, technology, and features.

Daughter: Evaluates based on looks, social acceptance, and the opinions of friends.

Creating a Comparison Matrix

To better understand the different preferences, create a comparison matrix. List each family member's criteria across the top and match it with the cars' attributes. This will help identify which family member values which aspects of the car the most and whether their preferences align or differ.

Conclusion

This case provides valuable insights into group purchase behavior, where each family member has different motivations, priorities, and decision-making processes. It highlights how demographic, psychographic, and behavioral factors play a crucial role in shaping the family's decision. By analyzing each member's characteristics and the factors influencing their decisions, we can better understand how marketers can tailor strategies to appeal to different segments within a family or group.

4.5.3 Understanding Individual Contributions in Family Purchase Decisions

In this case, we analyze the consumer decision-making process of the Kapoor family while purchasing a new car. We explore the stages of decision-making and identify how different family members contribute to the purchase decision. The case reveals the family’s buying behavior, highlighting factors that influenced their choices, and provides insights into strategic implications for brands such as Melton Crusader, Amanda Falcon, and Humberland Compare.

Purchase Decision

The Kapoor family eventually chose the Melton's Crusader. Key influencing factors were:

Test Drive: The family had the chance to test the car, and the driving experience played a significant role in their decision.

Salesmanship: The persuasive sales pitch, which emphasized the car's benefits, could have influenced their choice.

Financing

The Kapoor family took a loan to purchase the car, which highlights the financial commitment they were willing to make for this purchase.

Post-Purchase Evaluation

Although it is too early to fully evaluate the car post-purchase, the family is generally happy with their choice. They are pleased with:

Better looks than their previous car

Increased boot space

Higher speed

Enhanced driving experience

However, the mother still has concerns about whether the car is worth the money in the long run, particularly with regard to maintenance costs and value for money.

Roles in the Decision-Making Process

In this family, various members assume different roles in the decision-making process:

Initiator: The son started the conversation about purchasing a new car.

Influencer: Both the son and daughter were key influencers, providing opinions and information.

Decision Maker: The father, Arun Kapoor, made the final decision, as he was the one funding the purchase.

Purchaser: The father, Arun, is also the purchaser.

User: The entire family will use the car, but primarily the father.

Positioning of Melton Crusader

Point of Parity and Point of Difference

Point of Parity: Melton Crusader must offer similar functional features to its competitors, such as good mileage, space, and comfort.

Point of Difference: The unique features or advantages that Melton Crusader had over the competition played a significant role in the Kapoor family’s decision. These could include aspects like superior handling, smoother ride, or other attributes that were better than those of competitors like Amanda Falcon and Humberland Compare.

Influence of the Son

The son was the key influencer who persuaded the rest of the family to choose Melton Crusader. He researched and gathered information about various cars, becoming a brand advocate for the Crusader. This is similar to the concept of influencer marketing, where the son acted as an influencer within the family.

Strategic Implications for Brands

Amanda Falcon could have done more to engage the daughter, who was interested but did not have sufficient information or passion to advocate for the brand. The lack of enthusiasm and detailed information from the daughter contributed to Amanda Falcon’s failure to influence the family’s decision.

Humberland Compare had a loyal user in the father, who had been using their car for years. However, Humberland Compare failed to convince him to buy another model. Despite his brand loyalty, factors like new features or emotional appeal from competitors like Melton Crusader ultimately swayed the decision.

What Could Humberland Compare Have Done Differently?

Targeting the Father’s Loyalty: Humberland Compare could have leveraged the father’s loyalty to the brand. They might have highlighted improvements in their newer models or offered incentives such as trade-in options or discounts for loyal customers.

Emotional Appeal: They could have focused on appealing to the family’s emotional needs, showcasing how their model would better fit their lifestyle and needs (e.g., family trips, safety features).

Family Engagement: Similar to how the Melton Crusader engaged the son, Humberland Compare could have worked to engage all family members in the decision-making process, addressing their specific needs.

Consumer Decision-Making Process: Linking Theory with Practice

The decision-making process followed various stages, with each family member's involvement varying:

Need Recognition

Father: Recognized the need for a new car because his old car was aging and required replacement.

Mother: Did not have a personal need for the new car but played a passive role in providing rational opinions.

Son: Driven by a desire for something innovative and self-expressive, representing a cognitive consumer.

Daughter: Focused on looks and what her friends would approve of, representing an emotional consumer.

Pre-Purchase Information Search

Each family member looked for different types of information:

Father: Focused on functional aspects such as cost, mileage, and reliability.

Mother: Sought rational information but did not feel a strong need for the new car.

Son: Engaged in active information search, looking for the latest features, reviews, and technical specifications.

Daughter: Focused on aesthetic qualities, such as looks and brand image.

Evaluation of Alternatives

Each member used different criteria to evaluate the alternatives:

Father: Likely evaluated based on cost, functionality, and brand reputation.

Mother: Evaluated based on practical considerations like cost and long-term value.

Son: Considered the image of the car and how it would reflect his style and status.

Daughter: Focused on how the car would look and whether it would be admired by her peers.

Purchase and Post-Purchase Evaluation

After purchasing, the family felt satisfied with the choice of Melton Crusader, but the mother still had some lingering concerns about its overall value.

Key Takeaways:

Targeting Influencers: The son played a significant role in influencing the family's decision, showcasing the power of influencer marketing.

Understanding Consumer Roles: By understanding the roles of each family member (initiator, influencer, decision-maker, purchaser), brands can tailor their marketing strategies more effectively.

Customization of Communication: Different family members have different needs and concerns. Marketers must cater to each group’s unique preferences, whether they are economic consumers, emotional consumers, or cognitive consumers.

By linking the theories of consumer behavior with the case facts, we can understand how different stages of the buying process unfold in a family decision-making scenario. This can help in developing effective marketing strategies based on these insights.