Study Of Lexus

Solution to the Lexus case study
Decision problem: What should be done to stop the falling sales of Lexus cars?

Research problem: Are Lexus cars perceived by customers as luxury cars?

Graphicalmodel depicting buyer behavior in luxury car market

Financial means

Unsatisfied needs
Antecedents of purchase process

Controllable factors:

Decision to shop for a luxury car External factors:Marketing strategies, brand image and awareness of competitors’ offerings

- Product features
- Promotional strategy - Distribution system - Pricing policy Initial analysis of available options andshort-listing of the most attractive car makes and models

Brand image and awareness

Detailed comparison of short-listed options

Final purchase decision

Research questions and hypotheses:

RQ 1: Are Lexuscars perceived as equally luxurious as the competitive European makes? H 1.1: Lexus brand is not perceived as equally luxurious as the European makes.

RQ 2: Is the look and feel of dealerships andthe way the sales process is conducted strengthening the positioning of Lexus as a luxury brand H 2.1: The sales process is perceived by majority of customers as exceptional and pleasurable experience.H 2.2: The dealerships are viewed by most customers as exclusive and luxurious.

RQ 3: Are the prices of Lexus cars consistent with the luxurious character of the brand? H 3.1: The prices of Lexusautos are considered by most customers as adequate to the offered value. H 3.2: The prices of Lexus autos are associated by majority of customers with a luxury car image.

RQ 4: Is the currentpromotional policy strengthening the image of Lexus as a luxury car? H 4.1: The current advertisements focusing on engineering quality of Lexus are effectively building the image of a luxurious car as comparedto alternative more emotional promotional measures. H 4.2: The intensity of promotional campaign is sufficient for potential customers to be able to familiarize themselves with Lexus offer. H 4.3:...