Middlesex University Research Repository An open access repository of Middlesex University research http://eprints.mdx.ac.uk Anurit, Jakrapan (2002) An investigation into consumer behaviour towards the purchase of new luxury cars in two culturally distinct countries: the UK and Thailand. PhD thesis, Middlesex University. [Thesis] This version is available at: https://eprints.mdx.ac.uk/8096/ Copyright: Middlesex University Research Repository makes the University’s research available electronically. Copyright and moral rights to this work are retained by the author and/or other copyright owners unless otherwise stated. The work is supplied on the understanding that any use for commercial gain is strictly forbidden. A copy may be downloaded for personal, non-commercial, research or study without prior permission and without charge. Works, including theses and research projects, may not be reproduced in any format or medium, or extensive quotations taken from them, or their content changed in any way, without first obtaining permission in writing from the copyright holder(s). They may not be sold or exploited commercially in any format or medium without the prior written permission of the copyright holder(s). Full bibliographic details must be given when referring to, or quoting from full items including the author’s name, the title of the work, publication details where relevant (place, publisher, date), pag- ination, and for theses or dissertations the awarding institution, the degree type awarded, and the date of the award. If you believe that any material held in the repository infringes copyright law, please contact the Repository Team at Middlesex University via the following email address: [email protected] The item will be removed from the repository while any claim is being investigated. See also repository copyright: re-use policy: http://eprints.mdx.ac.uk/policies.html#copy An Investigation into Consumer Behaviour towards the Purchase of New Luxury Cars in Two Culturally Distinct Countries: the UK and Thailand JAKRAPAN ANURIT Thesis submitted in part fulfillment of the Degree of Doctor of Philosophy Middlesex University Business School January 2002 ABSTRACT The thesis aimed to answer two questions. (1) What distinguishes a luxury car? It has been shown that this is a complex issue - involving a multifaceted - subjective and objective factors approach. Hence, there is a need to develop (a) a clarification and définition of luxury cars, and (b) a luxury car price concept/range, to identify customers' profile, and to explore influences on consumer purchase décisions. (2) How do cultural différences between the UK and Thailand explain the différence in purchasing patterns of BMW and Mercedes and provide insights for brand marketing of the two luxury car marques? The research design was based upon a review and synthesis of the académie literature and car data, which helped identify (1) theoretical concepts and hypothèses appropriate for this study, and which also developed (2) a working définition of luxury cars for the sélection of samples and research methodology for this study. Methods of qualitative data collection included observation, focus groups, and face-to-face interviews, which was content analysed. The quantitative data collection was by questionnaire survey in the UK and Thailand, which, afler elementary statistical analysis, was factor, and discriminant analysed. However, the UK data did not lend ifself to principal component or discriminant analysis, since the questionnaire was modified to facilitate co-operation of British respondents. For the UK, simple statistical analysis and a test of signiflcance for différences in percentage of respondents selecting the key attributes of their own marque were conducted. The findings yielded a comparative study of similarities and différences between UK and Thai customer perceptions of BMW and Mercedes, and insights into brand marketing of their cars in the two countries. The outeomes yielded include: • a detailed profile of BMW and Mercedes buyers in the UK and Thailand; • the technical and non-technical attributes of BMW and Mercedes cars as well as dealer and customer perceptions of the two marques in the UK and Thailand; • commonalities between marques and différences in buyer attitude and behaviour in the UK and Thailand; • a consumer décision model that détermines the choice of a new BMW or Mercedes car in Thailand, and criteria that détermine the choice of a new BMW or Mercedes car in the UK; • identification of significant cultural déterminants of new luxury car purchasing patterns in the UK and Thailand applicable to countries with simiîar cultural characteristics and socio-economic structures; • marketing implications on customer acquisition and rétention as well as upward brand stretching of both marques in both countries. Thèse findings enable this thesis to conclude that buyer perceptions of new BMW and Mercedes cars in the two countries are différent. This thesis proposes a strategy of upward BMW and Mercedes brand stretching for both customer acquisition and rétention by both marques and provides guidelines for local and global marketing of BMW and Mercedes luxury cars. The limitations of this thesis are outlined in the conclusion and also avenues for future research were provided. i ACKNOWLEDGEMENTS My greatest thanks go to my supervisors, Professor Karin Newman and Dr. Bal Chansarkar. Their profound knowledge and extensive research experience proved invaluable in providing me with guidance throughout the duration of the research, for which I am most grateful. They were both willing to read and comment extensively on my many drafts. I owe an enormous depth of gratitude to them for their continuous encouragement and dedicated time. I am also extremely grateful to Khun Bantom Thamtaawom at Yontrakit Service Limited, Khun Wuit Kitcumhan at BMC YMC Ltd, Khun Chat Panjasap at Benz Thonburi in Bangkok for assisting me with the interviews and focus groups, and providing me with countless amount of information and data over the last four years. I also owe much gratitude to Mr. Jason Coppin at L&C Auto Services (Croydon) Ltd, Mr. Warren Brearley and his staff at BMW Sytner, Mr. Ian Donald and his colleagues at Huge of Beaconsfield, Mr. Paul Bates and his staff at Prophets (Gerrards Cross) Ltd, and BMW (GB) Limited for assisting me with series of interviews and additional enquiries in London. I hope my research can be used by them as a means of repaying them for all their help. The PhD programme at the Middlesex University Business School is a hugely supportive environment. Through it I have made lots of friends who have been kind and constructive in their advice. My peers have read drafts of my work and helped sort through research issues as they arose. The university's research methodology sessions showed me the ropes, what to avoid, what to value. I wish to thank the registration panel-Professor Paul Dunne and Paul Merricks, and upgrading panel-Dr. Ross Brennan and Professor Philip James, who gave me advice on the development of the thesis. I also owe my thanks to the staff at the Middlesex University Business School, in particular Claire Dutton, Frida Attrams, Maria Lane, and Martin Kender who provided an efficient support structure throughout the duration of this research. Finally, my being able to undertake doctoral studies successfully has been the emotional support and encouragement of my mother Phanphilai Anurit, and financial support of Khun Thitikom Leenutaphong. Now that it is all done, I hope they enjoy the sense of completion as much as me. ii CONTENTS Abstract i Acknowledgements ii Contents iii List of Tables vii List of Figures ix List of Appendices xi Chapter 1 : Introduction 1 1.1. Objectives of the Study 2 1.2. Principal Contribution 5 1.3. Theoretical Contribution 6 1.4. Methodological Contribution 8 1.5. Marketing Contribution 8 1.6. Thesis Outline 9 1.6.1. Overview of Chapters 10 Chapter 2 : The Significance of New Luxury Cars' Production, Consumption and Trade in the Global Economy 2.1. Introduction 16 2.2. The Significance of New Passenger Cars in the Global Economy 16 2.3. The Significance of Production, Consumption, and Trade of New 18 Passenger Cars in the Global Economy 2.4. Parameters or Characteristics of Luxury Cars 21 2.4.1. Priées and Standard Spécifications of Luxury Cars 24 2.5. The Significance of New Luxury Cars in the Global Motor Industry 31 2.6. UK and Thailand as part of the Global Luxury Car Market 34 2.6.1. The Importance of the UK Luxury Car Market 35 2.6.2. The Importance of the Thai Luxury Car Market 37 2.7. Summary 39 Chapter 3 : The Psychological Perspectives of Consumer Behaviour of New Luxury Cars 3.1. Introduction 40 3.2. Consumer Behaviour Perspectives 41 3.2.1. Cognitive Perspective 42 3.2.2. Behavioural Perspective 43 3.2.3. Trait Perspective 45 3.2.3a. Self-Concept Théories 45 3.2.3b. Object-Signification Approach 46 3.3. Review of Car Consumer Behaviour Research 47 3.4. Structural Relationship of Luxury Car Consumer Behaviour Constructs 49 3.5. Summary 52 ni Chapter 4 : Cultural Influences on Consumer Behaviour 4.1. Introduction 53 4.2. Overview of Cultural Influences on Consumer Behaviour 53 4.3. Whatis Culture? 55 4.4. The Relationship between Individual and Society 57 4.5. Self-Concept 58 4.5.1. Self-Concept and Product Symbolism 59 4.5.2. Self-Concept and Product Image Congruence 59 4.6. Cultural Différences and Consumer Behaviour: the UK and Thailand 60 4.6.1. Maslow's Hierarchy ofNeeds and the Asian Equivalent 62 4.6.2. Stratégie Brand Concept-Image Management 64 4.6.3. Hofstede's Dimensions of Culture 65 4.6.3a. Hofstede's Individualism V.S. Collectivism 65 4.6.3b. Hofstede's Uncertainty Avoidance 67 4.7. Summary 72 Chapter 5 : Brand Marketing and Globalisation 5.1.