Consumer Behavior: Mitsubishi Xpander In
Indonesia Automotive Market
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
Company Background
Mitsubishi was first established as a shipping company by Yataro Iwasaki (1834-1885) in 1870.
In 1873, its name was changed to Mitsubishi Shokai Mitsubishi's name consists of two parts:
'Mitsu' which means 'three' and 'hishi" (which being 'bishi which means under 'my title") and
therefore there are three rhombus, which are reflected in the famous company logo. This is also
interpreted as 'three diamonds. Mitsubishi as a broad-based company, plays an important role
in the modernization of Japanese industry. At first it was a brilliant idea that sparked from a
way of thinking brilliantly in taking advantage of opportunities. This opportunity arises in line
with government policies to finance investment, both foreign capital and domestic capital. On
May 19, 1973 PT. Mitsubishi Krama Yudha Motors and Manfacturing which has authorized
capital, and the capital is paid for § 42.866,250. Approval of a joint venture occurred on January
18, 1973 between PT. Krama Yudha (KY), Mitsubishi corporation (MC), and Mitsubishi
Motors and Manufacturing. PT. Mitsubishi Krama Yucha Motors and Manufacturing is a
company with foreign investment. (Mitsubishi, 2019).
Market Situation
Automotive industry
in Indonesia The automotive industry sector is predicted to still grow positively in 2019. The
stretch of road infrastructure development from west to east Indonesia is expected to become
one of the catalysts for the growth of the automotive industry next year with a target of
achieving 1.1 million units of new car sales. In addition, with the target of economic growth in
the range of 5.3%, it still gives entrepreneurs hope for improving economic conditions.
Especially with Indonesia's vehicle ownership ratio still low at around 87 vehicles per 1,000
populations, the potential for vehicle ownership is still large (Investments, 2019).
Competitors
The tight competition in the Low Multi-Purpose Vehicle (LMPV) segment has made producers
compete to be the best. But most recently, the competition converged to belong to the Toyota
Avanza and Mitsubishi Xpander as the two best-selling IMPVs. The IMPV class is a favorite
for consumers, because it can accommodate all family needs in activities. Therefore, other
manufacturers also do not want to miss enlivening, such as the Honda Mobilio and Suzuki
Ertiga. Nissan Livina and Chinese manufacturer Wuling with Confero.
Problem/Need Recoqnition
Market induced
Typically, the majority of Indonesian people is when a new product is launched, it did not take
long for them to think of having. Having a new car seems to elevate their status in the public
eye. Sometimes they do not see in terms of needs and only satisfy the appetite of consumers.
They easily get their vehicles by means of installments.
New Stage in life
A new stage in life raises new ways to meet needs. Before marriage, people will choose small
cars that can accommodate their mobility. There is no need to load many passengers but can be
reached by their financial condition. For those who live in urban areas, they may prefer to use
a motorbike because they can avoid severe congestion in Indonesia. But when people get
married they start glancing at IMPV or MPV to accommodate family members or be used to
support their business.
Information Search
Level of Risk
Before Mitsubishi manufacturers launched Xpander, the consumer stigma towards Mitsubishi
vehicles was quite risky. From maintenance costs, which are relatively expensive, compared to
competitors, the resale value has declined considerably. However, it seems that at this time
consumer perceptions of the Mitsubishi brand began to change. This was demonstrated by
consumer enthusiasm from when Xpander was launched. Xpander is considered to be a 'game
changer, so the stigma about risk that was previously understandable.
Level of Product Knowledge
Using the internet is the fastest and most accurate way to get product information. Another way
to go to automotive exhibitions is immediately see physical products. Alternatively, you can
also go to the dealer to test the drive product. Prospective buyers are now very critical and they
will compare all the advantages and disadvantages of the product with its competitors' products
3.3 Evaluation
List of evoked set and why
Customers evoked sets are the main competitors like Toyota, Honda, Suzuki and Nissan. This
is all because all Japanese manufacture provides vehicles for all needs. Consumers end up with
some evoked sets because many information channels can accessed as a comparison material,
this will help consumers when making a purchase decision.
Compensatory and non compensatory rules
Potential buyers in Indonesia mostly use compensation rules when buying vehicles. Example:
in addition to mobilizing activities, vehicles can converted to support business activities or
become online taxis. This can provide benefit and compensation for the owner.
Evaluation criteria
The evaluation criteria includes a dimension or the specific attributes that are used in assessing
alternative options, criteria alternative can appear in various forms, for example, in buying a
car a consumer may consider the criteria, safety, comfort, price, brand, country of origin of the
manufacturer and also the spec as prestige, happiness, pleasure and so on (Gerber & Bothma,
2008).
Purchase
Availability of products
The persistently high consumer interest in Xpander, of course, has an impact on the length of
the pivot period for consumers. The high demand for Xpanden and the length of the queue, has
made Mitsubishi increase its production capacity to 10,000 units per month by building new
factories in Indonesia. So that customers can enjoy this variant within 1 month of ordering
(Charm, 2019).
Retail factor
Mitsubishi's big name is certainly often heard, especially in the automotive world. Mitsubishi
often wins the world rally championship (WRC). Many models are a mainstay for the people
of Indonesia. However, actually Mitsubishi is more known as a manufacturer of powerful cars.
Some of the cars that are quite well known in the era are the Mitsubishi Lancer, Eterna, Galant,
and Pajero, which are quite popular models in Indonesia (Mitsubishi, 2019).
Post purchase evaluation
Post purchase feeling
The customer experience after having pader, most of them are very satisfied with the comfort
and features that Mitsubishi attaches. When compared with competitors in the segment,
Mitsubishi Xpander provides a very high standard and changed the game in low MPV segment.
Complacency certainly perceived by the customer, because according to the expectations of
what they expect (Gerber & Bothma, 2008).
Post Purchase Cognitive Dissonance.
When there are some people who feel that Xpander is not in line with expectations. He could
sell his car, because the used car market for Xpander demand is still very high and this variant
is still relatively new on the market (Gerber & Bothma, 2008).
Social Influence of buying behaviour
Family
The family is quite large influential factor in the purchase of vehicles, especially in the segment
LMPV. Because most of them have considerable financial condition. So that the vehicle
purchased must accommodate the needs of every member of the family, even for business.
When going to buy a car they will exchange ideas on the desired car (Ahmed, Ameen, Shaikh
& Memon, 2015).
Social class
Indonesians are greatly affected by the recognition of social status. They want to be seen by
their community for their achievements. Vehicles can be used as a benchmark for their status,
even if they get it in installments. But the car is their own pride (Shavitt, Jiang & Cho, 2016).
Psychological influences on Buying Behaviour
Motivation
Several aspects that motivate customers in choosing a vehicle are in terms of the delivery
process, delivery time, negotiation process, dealer facilities, document/administrative
handling. salespeople, and sales initiation. Mitsubishi in its press release said that since 2008,
they revitalized passenger vehicles by making improvements and improving overall quality in
all aspects starting from increasing product variants and quality, developing networks and
dealer facilities, and the main ones, of course, followed by an increase in mindset and human
resource capabilities. itself thoroughly (Durden, 2018).
Perception
Customer perceptions of the Mitsubishi Xpander that are considered important and in
accordance with customer expectations are robust engine performance, smooth car suspension,
using environmentally friendly engines, adequate safety features, high comfort features,
comfortable acceleration, versatile family car that meets the needs of its users, and customers
are satisfied with Mitsubishi Xpander products (Durden, 2018).
Personal factor influences on buying behavior
Personality
The characteristics of Avanza owners are definitely family-oriented people, because this variant
includes family cars. Then have a modern lifestyle, because of its futuristic design coupled with
features with the latest technology. Love the high engine performance, because Mitsubishi is
famous for its reliable engine power. The last is risk taking, negative stigma such as expensive
maintenance costs, low resale prices that are not a barrier for people to choose Mitsubishi
(Juneja, 2019).
Ages
The age range for this variant is in the age of 25-35 years. When someone starts a family and
starts doing business. Especially for those who live in urban areas. They need a means of
mobilization that suits their needs (Juneja, 2019).
Marketing Strategies Recommendations
Product
• Design is a very important factor, many prospective buyers choose Mitsubishi Xpander
because it has a dashing and futuristic exterior design. Unique dynamic Shield design with no
mainstream lighting layout. • Field Cabin: With the largest dimensions, the Expander has the
most spacious cabin, even the second row seats can be sliding sideways. • Ground Clearance
Height: Xpander is the highest in its class, which is 205 mm, moreover there is no axle bump
at the bottom, making its cruising better than Avanza.
By presenting quality products that are very good, indirectly is a means of promoting the
product itself. People are interested in buying Xpander because of the quality and performance
that it has on the product (Mitsubishi, 2019).
Price
The price of Mitsubishi Xpander cars is able to compete and is in accordance with the ability
of consumers to buy. Price conformity indicators with benefits according to consumers are
appropriate for Mitsubishi Xpander products, this is due to the many latest features that are
owned by Mitsubishi Xpander cars so consumers feel the price offered is in accordance with
the benefits felt by consumers (Gerber & Bothma, 2008).
Place
In total there are approximately 320 motorcycle dealerships scattered across Indonesia.
Prospective customers can easily visit Toyota showroom for purchase. Additionally Mitsubishi
is also actively participates in the exhibition event held yearly regular vehicles such as
Indonesian international motor show (Mitsubishi, 2019).
Promotion
The new campaign for Mitsubishi Xpander, starting with ad impressions on various national
television channels and witnessed on the official Mitsubishi Motors Indonesia YouTube
channel starting July 1, 2018. 'Roadshow tons of real happiness, is a form of unique and fun
promotion in the form of an amusement park carnival. To show Xpander as the only full-
featured Small MPV and a great power capable of bringing tons of happiness to Indonesian
families (Mitsubishi, 2019)-
Conclusions
The discussion above is a bit much gives an overview of consumer behavior in Indonesia
against the decision to buy a vehicle LMPV Mitsubishi Xpander. It also exposes the business
strategies undertaken by Mitsubishi automotive manufacturer to the automotive industry in
Indonesia. Proven Mitsubishi has managed to attract the attention of consumers, this is
indicated with a huge enthusiasm and the very high demand from variant Xpander. Where this
segment for more than 15 years ruled by the other Japanese manufacturers, namely Toyota.
Mitsubishi managed to map the needs and desires of consumers in Indonesia. Xpander be the
answer to the needs of the family, affordable transportation but has full features and exceptional
comfort. So that a high level of customer satisfaction that can be beneficial for Mitsubishi to
produce other new variants in the future.
