understanding vietnamese consumer behavior for toyota yaris and recommendation for promotion activities of toyota motor vietnam

NATIONAL ECONOMICS UNIVERSITY
BUSINESS SCHOOL

DANG THI VINH HA
UNDERSTANDING VIETNAMESE CONSUMER
BEHAVIOR FOR TOYOTA YARIS AND
RECOMMENDATION FOR PROMOTION ACTIVITIES OF
TOYOTA MOTOR VIETNAM
MASTER OF BUSINESS ADMINISTRATION THESIS
SUPERVISOR: Dr. LE THI MY LINH
HANOI-2013
TABLE OF CONTENT
TABLE OF CONTENT i
LIST OF TABLES v
LIST OF FIGURES vi
vi
LIST OF CHARTS vii
ACKNOWLEDGEMENT 1
ABBREVIATIONS 2
EXECUTIVE SUMMARY 3
CHAPTER 1 INTRODUCTION 6
1.1.Background 6
1.2. Rational 7
1.3. Research objective 8
1.3.1 Overall objectives: 8
1.3.2. Specific objectives: 8
1.4. Research questions: 8
1.5. Research methodology 9
1.5.1. Research process 9
1.5.2. Research approach 9
1.5.3. Data resources 10

1.5.4. Data processing: 14
1.5.5. Research scope 14
CHAPTER 2 THEORETICAL BACKGROUND ON CONSUMER
BEHAVIOR 15
2.1. Definition of consumer behavior 15
2.2. The importance of study consumer behavior 16
2.3. Model of consumer behavior 17
2.4. Factors influencing consumer behavior 19
i
2.4.1. External influences 19
2.4.2. Internal factors 23
2.5. Consumer buying process 27
2.5.1. Problem recognition 28
2.5.2. Information search 29
2.5.3. Evaluation of alternatives 30
2.5.4. Product choice 30
2.5.5. Post purchase 32
2.6. Promotion mix 32
2.6.1. Advertising 33
2.6.2. Personal Selling 34
2.6.3. Sales Promotion 34
2.6.4. Public Relations 35
2.6.5. Choice of promotion mix 35
CHAPTER 3 OVERVIEW OF VIETNAM AUTOMOTIVE MARKET AND
YARIS MARKET 37
3.1 Overview of Vietnamese automobile market 37
3.2. Competitive environment 40
3.3. External environment analysis 42
3.2.1. Economic environment 42
3.2.2. Demographic environment 42

3.2.3. Social and cultural environment 43
3.2.4. Political and legal environment 43
3.3. TMV overview 44
3.3.1 TMV development history 44
3.3.2. TMV outstanding achievements 46
3.3.3. TMV-SWOT analysis 49
3.4. Toyota Yaris market in Vietnam 52
3.4.1. Overview of Small- car market in Vietnam 52
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3.4.2 Development history of Yaris in Vietnam market 53
3.4.2. Competitors of Yaris in Vietnam market 54
CHAPTER 4 FINDINGS ON YARIS CONSUMER BEHAVIOR AND
CURRENT MARKETING MIX 57
4.1. Characters of respondents 57
4.1.1. Demographics 57
4.1.2. Life style and media habit 59
4.2. Car ownership 61
4.3. Problem recognition 62
4.4 Information searching and importance of Car Purchase Decision 64
4.4.1. Information searching 64
4.4.2. Importance of Car purchase decision 66
4.4.3. Role of making buying decision 68
4.5. Alternatives evaluation 69
4.5.1. Other alternative cars 69
4.5.2. Evaluation criteria for car purchase 70
4.6. Consumer choice 72
4.6.1. Reasons for consumers to buy Yaris 72
4.6.2. Reasons to choose dealer to buy Yaris 74
4.6.3. Factors affecting consumers’ final decision 75
4.7. Consumer post purchase 76

4.8. Summary of the findings on Yaris consumer behavior 78
4.8.1. Consumer profile 78
4.8.2. Need recognition 79
4.8.3. Information search 80
4.8.4. Alternative evaluation 82
4.8.5. Consumers’ Yaris evaluation 83
4.9. Findings on current marketing activities for Toyota Yaris 84
4.9.1 Product 84
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4.9.2. Price 85
4.9.3. Promotion 86
4.9.4. Distribution 87
4.10. The gaps between current marketing mix and Yaris consumers’
expectation 88
4.10.1. Product 88
4.10.2. Price 88
4.10.3. Promotion 88
4.10.4. Distribution 90
CHAPTER 5 RECOMMMENDATIONS FOR TMV PROMOTION
ACTIVITIES 91
5.1. Defining target market 91
5.2. Setting the promotional objectives 92
5.3. Improving promotion activities 92
5.3.1. Clear message conveying 92
5.3.2. Means of promotion mix 92
5.4. Improving other marketing mix 96
5.4.1. Product 97
5.4.2. Price 99
CONCLUSION 100
REFERENCES 101

APPENDIX 1 TOYOTA YARIS CONSUMERS’S SURVEY 103
APPENDIX 2 GUIDANCE FOR SALE MANAGER IN_DEPTH
INTERVIEW 112
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LIST OF TABLES
Table 3.1: Sales volumes of Vietnamese hatchback segment 55
Table 4.1: Demographic information of the respondents 57
Table 4.2: Table of average monthly income of the respondents 58
Table 4.3: Table of education and Career information of the respondents 58
Table 4.4: Table of household size type of the respondents 59
Table 4.5: The respondents’ habit 60
Table 4.6: Main users of the vehicles 61
Table 4.7: The usage of your current car 64
Table 4.8: the Length of time from initial Decision to buy to placing order 66
Table 4.9: The importance of car purchasing decision 67
Table 4.10: The participation of each activity 68
Table 4.11: Importance of car purchase criteria 70
Table 4.12: Satisfaction about Yaris’s features 77
Table 4.13: Difference between TMV Yaris and PI Yaris 84
Table 4.14: Core contents for Yaris advertisement 85
Table 4.15: Yaris TMV price quotation basing on Yaris imported from overseas 86
Table 4.16: TMV marketing schedule for Yaris 89
Table 5.1: Consumer expectation for some option upgrade 99
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LIST OF FIGURES
Figure 1.1 Research process 9
Figure 2.1: model of consumer decision making 17
25
Figure 2.2: Maslow’s hierarchy of needs 25
Figure 2.3: Flowchart of the consumer decision process 28

Figure 2.4: Factors break buying decisions 31
Figure 2.5: when elements of promotion are most useful 36
Figure 3.1: The stages of automotive and auto parts industry in the world 37
Figure 3.2: TMV dealer system 46
Figure 3.3: TMV Production line 48
Figure 4.1: Consumer profiles 79
Figure 4.2: Motivations to buy 80
Figure 4.3: The information sources 82
Figure 4.4: Image of Yaris advertisement 89
Figure 5.1: Upgrading features in new Yaris 98
Figure 5.2: Positioning Yaris price 100

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LIST OF CHARTS
Chart 3.1: Vehicle distribution/1000 people 39
Chart 3.2: Vietnam automotive market from 2006-2012 39
Chart 3.3.: TMV market share in 2010 41
44
Chart 3.4: Hatchback market share 44
Chart 3.5: TMV performance from 2007 to 2012 47
Chart 3.6: Market shares in hatchback segment 55
Chart 3.7: Yaris market share in Medium compact segment 56
Chart 4.1: Types of car purchase 62
63
Chart 4.2: Motivations of car purchase 63
Chart 4.3: Information sources 65
Chart 4.4: Relationship between the importance of the decision and the length of
time 67
Chart 4.5: Competitors 69
Chart 4.6: Car purchase criteria 71

Chart 4.7: Reason to choose Yaris 73
Chart 4.8: Reasons to choose the dealer 74
Chart 4.9: Overall satisfaction about your current car 76
Chart 4.10: Respondents’ satisfactions about Yaris’s features 78
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ACKNOWLEDGEMENT
This report is the result of my master thesis at Business School of National
Economics Universtiy with name “Understanding Vietnamese consumer behavior
for Toyota Yaris and recommendations for promotion activities of Toyota Motor
Vietnam”, implemented with a great deal of support from teachers and consumers
and sale persons, sales managers in some Toyota dealers in Hanoi. I am grateful to a
number of people who have helped me in the Writing of this research.
Firstly, I would like to express my gratitude to Dr Le Thi My Linh, who
guided me all her heart during the process I wrote the assignment. It can be sure that
without her help, this thesis hardly has this shape and content. Furthermore, I would
also like to thank the lecturers who taught me others subjects in BSNEU and created
good conditions for me to study and write this assignment.
Secondly, I would like to thank all consumers, sales persons and sales
managers in Toyota Lang Ha Limited and some other Toyota dealers in Hanoi who
helped me to answer the survey, the interviews and collect information about
Toyota Yaris in particular and Vietnamese automotive market in general during the
whole process of my study.
Last is my special thanks given to my big family, who have shared all with me
and help me to overcome many difficulties in study and in ordinary life to
successfully complete this thesis.
With high appreciation
Dang Thi Vinh Ha
EMBA 9A
1
ABBREVIATIONS

ASEAN: Association of Southest Asian Nations
CBU: Completed Built Unit
CEO: Chief Executive Officer
CKD: Completely Knocked Down
CV: Commercial Vehicle
EMS: Express Mail Service
FDI: Foreign Direct Investment
GDP: Gross Domestic Profit
MPV: Multi-purpose Vehicle
SCT: Special Consumption Tax
SUV: Sport Utility Vehicle
PC: Passenger Car
PI: Parallel Importer
PR: Public Relations
HCM: Ho Chi Minh City
TMC: Toyota Motor Corporation of Japan
TMV: Toyota Motor Vietnam Company Limited
VAMA: Vietnam Automobile Manufacturers Association
VAT: Value Added Tax
VEAM: Vietnam Engine and Agriculture Machinery Corporation
VMC: Vietnam Motor Corporation
WTO: World Trade Organization
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EXECUTIVE SUMMARY
With the dramatic development of Vietnam economy in recent years, the
automobile industry has seen significant increase in terms of market size, number of
manufactures as well as revenues. Toyota Motor Vietnam Co., Ltd (TMV) is an
automobile Join Venture founded on September 1995. Being the first FDI
automaker in Vietnam since 1995, TMV has developed with impressive business
achievements during 16 years. In 1999, Toyota launched Yaris, a global strategic

vehicle based on the concept of the car that creates a new sense of values to the
compact car. Appeared in Vietnam firstly as an imported model in 2007, Yaris has
immediately become a very favorite model of young and successful people with the
accumulated sales of more than 6,000 units (as of 2010). When the competitiveness
in the market is becoming more severe, there should be a focus on studying
consumer’s behavior to prepare for the development of new CKD Yaris in the near
future. With this issue, it is crucial that TMV develop the right marketing strategies
that suit with consumes’ behavior and needs to expand Yaris market share in the
next period. Therefore, in the study, I hoped to analyze Yaris consumer’s behavior
to identify factors affecting their buying decision. Then some recommendations
were given to help TMV improve their promotion activities to better approach Yaris
target consumers.
To achieve the research objectives, the author had combined both qualitative
and quantitative methods. In the quantitative methods, questionnaire survey was
conducted with 180 consumers who bought Yaris within the year of 2011 & 2012.
Through the survey, consumers’ attitudes, perception and expectations toward Yaris
of TMV were identified. In the qualitative method, in-depth interviews were
conducted with 5 sales managers in 5 Toyota dealers in Hanoi. Through the
interviews, their opinions and perceptions about Yaris consumers and TMV
marketing policy as well were explained.
3
After collecting and analyzing data, the main findings were figured out as
following:
Consumers used Yaris as transportation mean to serve basic needs such as
safety, convenience, avoiding bad influence of environment and weather. Apart
from that, using the car also helped consumers to reflect their belonging to social
upper class.
Car purchasing decision was an important decision for most of Yaris
consumers. Consumers got information from different channels, car sales staff,
internet, family/friend (word of mouth), car shows etc, but with the rapid

development of internet, such a lot of consumers start to use internet to get car
information that internet has become the second wisely used channel to get
information in my study.
Yaris consumers took “Durability” as the most important characteristic and
took “Safety” as the second most important and “price” as the third important
characteristic as purchasing a car. The consumers did not pay much attention to
“riding comfort” or “power” because they might either not have much knowledge or
they were driven by other features. The consumers also considered “exterior” more
important than “interior”. It indicated that they were status-seeking and they
preferred to choose a car with a good appearance to show their good social status
and want to get respects from others.
Consumers chose to buy Yaris because of its traditional features like all other
Toyota models such as brand name, fuel efficiency, and durability. Besides, Yaris
also could create unique features itself. They were overall design and “easy to
drive” which were very preferred by women.
However, most of consumers evaluated that current Yaris still had many specs
under their expectations or weak competiveness in comparison with its rivals,
especially with Ford Fiesta with many modern and high-tech options.
4
Through in-depth interview with several sales managers, current marketing
activities for Yaris by TMV were figured out to have some weakness such as
competitive weakness of product with other competitors, long time of delivery, not
comprehensive advertisement activities or promotion. Thus Yaris has not showed
its unique features besides of its Toyota traditional ones.
Basing on the findings, the author proposed some recommendations for TMV
when introducing the new CKD Yaris as follows: (1) Implementing advertisement
and media activities to focus directly on the target consumers. (2) Improving
knowledge of Yaris specifications and accessories in order to persuade consumers
in comparison with other rivals. (3) Building up Yaris image of a feminine and
family car through PR activities such as Yaris Festivals, Car care clinics, etc. (4)

Applying some sales promotion activities such as engine oil changing free coupon,
spa and massage coupons, service discount coupons, etc. (5) Beside of promotion
activities TMV could improve some other marketing activities to be successful in
hatchback segment like: Remaining the price in order to remain Yaris in the high
class segment; Equipping some more options so that the discrepancy between Yaris
values and pricing compared to other competitors can be balanced; Decreasing the
waiting time to receive vehicles.
The author really hopes that this research can bring some valuable things to TMV
and positive results can be obtained by applying implications given in this thesis.
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CHAPTER 1
INTRODUCTION
1.1.Background
Vietnam is a developing country with a population of about 88.78 million as
the end of 2012, an increase of 1.06 percent over last year, reported by the Vietnam
General Statistics Office in 2012. Vietnam is an attractive market in the ASEAN
region. Vietnam has a thousand year history, with an originally traditional culture
variety of relics. The culture, society, politics are always stable. In recent years,
along with the development of economy, the incomes of Vietnamese people are
increasing day by day. According to World Bank report, between 1990 and 2010,
Vietnam’s economy has grown at an annual average rate of 7.3 percent, and the per
capita income almost quintupled.
Accompanied with the rapid expansion of the economy, the automobile
industry has seen significant increase in terms of market size, number of
manufactures as well as revenues. Since the first beginning in 1991 with two FDI
companies- Mekong Auto and Vietnam Motors Corporation (VMC), now Vietnam
automobile industry has total of 100 enterprises, including 17 assemblers and nearly
80 suppliers with 112,224 units sold in 2012.
The rapid development of the economy has helped to change Vietnamese
people’s lifestyle and purchasing attitudes strongly. With the rate of car ownership

was 10.5 cars per 1,000 population, ranking 50th among 52 car manufacturing
countries. Vietnam will be one of the potential markets for auto investors and
Toyota as well. It is expected that Vietnam will see a boom in car use by 2020 as
forecasted at a seminar held by the Heavy Industry Department of the ministry of
Industry and Trade. The seminar held that 2020 will begin a booming period for the
country’s car demand with a rate of 38 cars per 1,000 populations that will increase
to over 50 cars per 1,000 populations by 2025.
6
TMV is an automobile Joint Venture founded on September 1995. Being the
first FDI automaker in Vietnam since 1995, TMV has developed with impressive
business achievements during 16 years. In 1999, Toyota launched Yaris, a global
strategic vehicle based on the concept of the car that creates a new sense of values
to the compact car. Appeared in Vietnam firstly as an imported model in 2007,
Yaris has immediately become a very favorite model of young and successful
people with the accumulated sales of more than 6,000 units (as of 2010). Since the
government changed Special Consumption Tax (SCT) from April 2009, passenger
car (PC) sales volume increases considerably from 2009. On the basis of this
opportunity, TMV has considered to expand their PC segment. Yaris hatch belongs
to this segment and thus is considered one of their projects. In Mar 2011, TMV
officially introduced Yaris imported from Thai land in Viet Nam. It can be seen as a
trial of TMV for a completely new market segment- hatchback before officially
assembling Yaris in Viet Nam.
1.2. Rational
In general, for most Vietnamese people, purchasing a car is the second most
important and expensive investment, next to purchase of a house. Thus, it requests
consumers to highly involve in purchase process.
Like all automotive consumers, Yaris consumers undertake complex buying
behavior when they are highly involved in a purchase and perceive significant
differences among brands. They will pass through a learning process, first developing
beliefs about the product, then attitudes, and then making a thoughtful purchase

choice. Because Yaris was first time officially introduced in Vietnam market, there
are not so many studies regarding Yaris purchasing behavior which have been done
so far. Therefore, in order to develop Yaris share successfully in Vietnam market,
TMV must understand the information-gathering and evaluation behavior of Yaris
consumers so that we can have suitable marketing activities. Marketing is such a
“wide knowledge” term that it is very hard to mention within the scope of this study.
So in my study, I limited my recommendations mainly to promotion activities.
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Besides, I proposed some supporting marketing activities in order to more effectively
attract the target consumers. That is the reason why I chose the subject for my thesis:
“Understanding Vietnamese consumer behavior for Toyota Yaris and
recommendation for promotion activities of Toyota Motor Vietnam”
1.3. Research objective
1.3.1 Overall objectives:
The aim of this research is to analyze the consumer behavior to identify
factors affect consumer decision process in buying Yaris. The finding can help
TMV to improve effective marketing activities to better reach to their target
consumers in this market segment.
1.3.2. Specific objectives:
In order to solve the research problem, the thesis focused on some specific
objectives as followings:
- To understand decision making process of the Toyota Yaris consumers
- To analysis factors influencing buying behavior of Toyota Yaris consumers
in Viet Nam
- To suggest some recommendations for Toyota Motor Viet Nam to develop
its promotion activities to more effectively reach the Yaris consumers.
1.4. Research questions:
In order to achieve the above objectives, the following questions need to be
answered:
- What is the buying decision making process when Vietnamese consumer

buys a Toyota Yaris?
- What are characteristics of Toyota Yaris consumers in Vietnam? (Their
habit, their purchase decision, their approach way…)
- What are the most important criteria considered when Vietnamese consumers
purchase a Toyota Yaris.
- What are the factors influencing Yaris consumers’ buying process?
- Who involves in the decision making stages of the Yaris consumers?
- How does the current TMV marketing match with consumption patterns and
consumers’ characteristics in Yaris segment?
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- What are recommendations for TMV in Toyota Yaris promotion activities?
1.5. Research methodology
1.5.1. Research process
In my study, I started with searching the consumer behavior theories related to
the subject, and then I designed a survey questionnaire and an in-depth interview for
collecting data to analyze and interpret them. At last, a conclusion was given out to
recommend effective promotion activities for TMV on the basis of the analysis.
Figure 1.1 Research process
Source: Designed by author
1.5.2. Research approach
9
There are two main research approaches in business research, quantitative
and qualitative. Quantitative researchers are more concerned about issues of design,
measurement, and sampling because their deductive approach emphasized detailed
planning prior to date collection and analysis. Qualitative researchers are more
concerned about issues of the richness, texture and feeling of raw data because their
inductive approach emphasize developing insights and generalizations out of the
data collected (W.lawrence et al (2000), p122).
In my study, both qualitative and quantitative approaches were used.
I used questionnaire for Yaris consumers to make generalization about Yaris

consumers’ buying behavior characteristics. That is the quantitative approach.
The qualitative approach was used by designing in-depth interview for
Toyota dealer leaders in order to generalize about the performance of current
Toyota Viet Nam’s marketing activities.
Once data is obtained, and then it will be analyzed, it becomes the basis for
conclusions and decision-making for marketers.
1.5.3. Data resources
In order to achieve the objectives of the research, data was collected from
both secondary and primary sources.
1.5.3.1. Secondary data
Firstly, the author reviewed the academic theory about consumer behavior to
find out theoretical background for the research questions. The secondary data was
mainly collected by reading books, academic literature, journals and searching
online by using searching engine like Google scholar. I used keyword such as
consumer behavior, car purchase, Vietnam automotive market.
Secondary data was necessary and applied right from the beginning and
during the research implementation. In secondary data collection, information was
collected through synthesizing and reviewing secondary data, included (but not
10
limited) theories on consumer behavior and secondary data on Vietnam automobile
market in general and TMV’s market share in particular. In this step, content of
survey tools for next stage was designed based on collected information.
In this research, secondary data was collected from published sources:
Annually performance report of TMV, annually market share of VAMA, reports on
consumers’ features so that I could learn about the business situation of TMV.
1.5.3.2. Primary data
The primary data was collected both through qualitative method (in-depth
interview) and quantitative method (consumer survey) about the practical
performance of TMV’s marketing activities and its consumers in Yaris segment.
For consumer survey, questionnaires were designed and distributed to respondents

mainly through emails and mails as well. For in-depth interview, face to face or on-
phone talks were organized.
1.5.3.2.1. Consumer survey
Questionnaire design
When designing the questionnaire, I started to find out questions related to
my purpose of study such as possible factors that could influence car purchase
behavior, then after evaluating I chose the most relevant ones to form my
questionnaire.
The questionnaire comprised of two parts
The first part was the main part of the questionnaire. It included 21
questions; it aimed to find out the respondents’ opinions and decisions of car
purchasing and factors which affect their purchasing decisions. Most of the
questions were multiple-choice questions because they were easy to answer, took
less time to answer, had less potential to error, and made comparison, tabulation and
analysis easier. (Aaker,D.A. et al. (2004),p 316-317). I used 5-point Likert scaled
questions on which the respondents were asked to measure their satisfaction
towards current cars and the importance of each factor in their car purchasing. The
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scale used in our research is that “1” means “very dissatisfied” and “5” means “very
satisfied” and “1” means “very unimportant” and 5 means “very important”. Liker-
type scale statements were chosen to evaluate consumers’ attitude in our study
because the Likert-type scale had been used by persuasion researchers for over three
decades greatly. The original scale of this type was developed by Rensis Likert and
was explained in his article, “A technique for the Measurement of Attitudes, “in
Achieves of Psychology (1932). He reported very satisfactory reliability data for the
scales developed with his procedure.
The second part was the demographic part, by which the author asked the
respondents about gender, age, income, household size, education level, occupation
and habit.
Sampling methods:

For the data collection, I mainly collected the primary data by sending
questionnaires through EMS. There were some ways of collecting data for research
such as: through mail, email, face to face meeting, handing questionnaire in public
places, etc. However, I chosen sending EMS mail method because of the following
reasons:
1) It saves time because the questionnaire can easily be sent to respondents
in different places and I don’t have to meet them face to face.
2) It is convenient for respondents because sending mail is still one of the
most popular information transfers in Viet Nam. Respondent will feed more relax
and easier to answer sincerely when they write down on paper.
However, mailing method also has one disadvantage. That was it had no
instant feedback from respondents. The address may be not correct and
questionnaires may not reach to the right respondents. In case, respondents do not
want to answer the survey or give us lack information, I cannot know even until I
finished the survey already. In other words, I did not have feedback for each case of
respondents quickly. I could not control and follow up the response rates as in
emailing method.
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Sample size
I sent total of 200 questionnaires to our Yaris consumers who bought Yaris
within the year of 2011 & 2012 and received 190 questionnaires back. Of which, I
got 5 incomplete questionnaires and 5 wrong address. As I mentioned in the
disadvantages of this method in the above part, I could not follow up the incomplete
questionnaires to get the missing answers back. In the end, I got only 180 valid
questionnaires.
The survey can be summarized as below:
Sample size
Data collection
method
Tool

Type of
information
180 consumers who bought
Yaris within the year of 2011
& 2012
Quantitative
method
Questionnaire Consumer
buying behavior
information
1.5.3.2.1. In-depth interview of some Toyota Sales Managers.
The interview was to find out current Toyota marketing activities for Yaris
product and their influence to consumption under the assessment of each manager.
This was the base for finding out the gaps between TMV marketing performance
and consumer expectation. Respondents also helped to explain more detail for some
answers of the questionnaire survey.
Sample size:
Total of interviewees conducted for data collection were 5 dealer managers.
Data collection method:
Due to time and budget limitation of the research, phone or face- to- face
interviews conducted in interviewees ‘offices were carried out.
The interview data collection was described as below:
Sample size Data collection Instrument Type of information
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method
05 managers
of Toyota
dealers.
Qualitative In-depth
interview

Accessing on TMV current
marketing activities and their
influence on consumers’ buying
decision. Suggestion for TMV
marketing activities under
interviewees’ opinion
1.5.4. Data processing:
I used Microsoft Excel to design the questionnaire, and then I used Excel to analyze
the data. I mainly use descriptive statistics to identify the main factors affecting the
consumer behavior.
1.5.5. Research scope
1.5.5.1. Content
At the moment, TMV are supplying several Toyota car models in Viet Nam
market. However, I chose to study Yaris consumer behavior in particular.
1.5.5.2. Location:
- Survey was carried out in the North of Viet Nam.
- 05 Toyota dealer sale managers in Hanoi.
1.5.5.3. Time:
- Secondary data: including data, figures, reports, articles, etc. about Vietnam
automobile market and TMV’s market share within 05 years (from 2007 to 2012)
- Primary data: was collected via questionnaires for consumers who bought
Yaris within 2011 and 2012 and in-depth interviews from May to June 2012
for 5 Sales managers.
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CHAPTER 2
THEORETICAL BACKGROUND ON CONSUMER
BEHAVIOR
2.1. Definition of consumer behavior
An important part of the marketing process is to understand why a consumer
or buyer makes a purchase. Without such an understanding, businesses find it hard

to respond to the consumer's needs and want to offer the right product to the right
consumer. Understanding consumer behavior plays an importance role for the
company’s business strategy.
According to the point of view of John C. Movenand Micheal Minor
“Consumer behavior is defined as the study of buying units and the exchange
processes involved in acquiring, consuming and disposing of goods, service,
experiences, and ideas” (John C. Mowen and Micheal Minor (1998), pp7).
Consumer behavior is the study “of the processes involved when individuals
or groups select, purchase, use, or dispose of products, services, ideas, or experiences
to satisfy needs and desires” (Micheal Solomon 1995, 7). In the marketing context,
the term “consumer refers not only to the act of purchase itself, but also to patterns of
aggregate buying which include pre-purchase and post-purchase activities. Pre-
purchase activity might consist of the growing awareness of a need or want, and a
search for and evaluation of information about the products and brands that might
satisfy it. Post-purchase activities include the evaluation of the purchased item in use
and the reduction of any anxiety which accompanies the purchase of expensive and
infrequently- booth items. Each of these has implications for purchase and repurchase
and they are amenable in differing degrees to marketer influence.
Consumer is on the one end of the exchange process in which resources are
transfer between two parties. This process focuses on analyzing consumer buying
behavior only. Organizations buying behaviors will not be discussed within this study.
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According to Kotler (1994), consumer behavior is the study of how people
buy, what they buy, when they buy and why they buy. It is a subcategory of
marketing that blends elements from psychology, sociology, socio psychology,
anthropology and economics. It attempts to understand the buyer decision making
process, both individually and in groups. It studies characteristics of individual
consumers such as demographics, psychographics, and behavioral variables in an
attempt to understand people needs. It also tries to assess influences on the
consumer from group such as family friends, reference groups, and society in

general. Every family member doesn’t have the same opinion to buy the same
product; different family members have different choice to buy the product. So, in
one family consumer behavior is different.
Researching consumer behavior helps researcher to understand clearly the
following matters:
Who is the consumer? The answer for this question describes the profile of
the consumer including: age, gender, residence, profession…
Why does the consumer want to buy? Consumers concern the benefits of the
products that company offers. They want to have the gets (Quality, satisfaction,
specific benefits).
What does the consumer want to buy? Consumers will select the products the
best meet their requirement and expectation.
How do consumers buy? The question relates to the way consumers decide
to buy products: place of buying, time of buying, influential factors of buying, etc.
Which kinds of features make consumers satisfied or dissatisfied with
products? Understanding consumer means that company should know that
consumer satisfied and what consumer dissatisfied.
2.2. The importance of study consumer behavior
The product purchase decision is not always done by the user. The buyer
necessarily purchases the product. Marketers must decide at whom to direct their
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promotional efforts, the buyer or the user. They must identify the person who is
most likely to influence the decision. If the marketers understand consumer
behavior, they are able to predict how consumers are likely to react to various
informational and environmental cues, and are able to shape their marketing
strategies accordingly (Kotler, 1994).
Therefore, consumer behavior research that is looking for answers to
question “how do consumers respond to the marketing effort the company might
use?” From that we can understand consumer deeply to attract consumers and create
products satisfying them best.

2.3. Model of consumer behavior
Figure 2.1: model of consumer decision making
Source: Del I.Hawkins- Roger J.Best- Kenneth A.coney (2004), p3,
The above model gives us a general view on structure of consumer behavior.
Each of us has a different characteristics, opinion and life-style with others. The
reason is that our self-concept and lifestyle are affected distinguish by internal
factors such as perception, learning, memory, personality and by external factors
such as culture, age, family, career… Self-concept and life-style of each person will
have great influence on his/her daily needs and demands. Her decision making
process obviously originates from this lifestyle, needs and demands.
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