Automobile (Toyota in Saudi Arabia) customer reponces to price changes Essay

Automobile (Toyota in Saudi Arabia) customer reponces to price changes according to cusomer segmentation - Essay Example .......................................... 4 1.2 Problem Statement ........................................................................................ 8 1.3 Aims or Purpose of this Study....................................................................... 9 1.4 Research Objectives ....................................................................................... 9 1.5 Research Questions ........................................................................................ 10 1.6 Significance of the Study ............................................................................... 10 1.7 Rationale for Choosing the Research Topic.................................................. 10 1.8 Research Procedure...................................................................................... 12 1.9 Scope and Limitations .................................................................................... 13 1.10 Chapter Summary ............................................. ............................................. 14 2. Literature Review ...................................................................................................... 14 2.1 Conceptual Framework and Research Hypothesis ............................................. 15 2.1.1 Conceptual Framework ........................................................................ 15 2.1.2 Research Hypothesis for Further Verification ..................................... ... .............. 31 2.2.3 Brand Association ................................................................................ 34 2.2.4 Perceived Brand Quality ...................................................................... 39 2.3 Importance of Effective Pricing Strategy ........................................................... 41 2.4 Significance of Pricing over the Development of Brand Equity †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.... 46 2.5 Significance of Price Changes on Consumer Behavior ...................................... 50 2.6 Chapter Summary................................................................................................ 54 2.7 References............................................................................................................57 Chapter 1 – Introduction In order for marketing managers to develop and implement effective marketing strategies, it is necessary to understand the impact that price changes have on consumers’ purc hasing behavior and purchasing decisions. In particular, the market price of automobiles is one of the most significant factors that can influence consumers’ purchasing behavior and purchasing decisions. Since price movement can affect consumers’ purchasing behavior, a majority of marketing managers are concerned with analyzing the impact of price changes on brand equity and consumer behavior (Yoon and Tran, 2011). Most of the available research studies are focused on examining the impact of marketing mix on brand equity (Buil et al., 2011; Chattopadhyay, Shivani and Krishnan, 2009; Villarejo-Ramos and Sanchez-Franco, 2005; Yoo, Donthu and Lee, 2000). Specifically the study of Valette-Florence, Guizani and Merunka (2009) examined consumers’ opinion with regards to the impact of sales promotion intensity and