DEAR DIARY: MY HEART IS RACING TO BUY A

CAR

Presented by- GROUP 1 ASAHIL WADHWASIMARNEET KAUR WAHIHIMALAYA TARANI

Question 1: Describe Jaime’s dilemma in

this case

TWO OPTIONS AVAILABLEH

ON

DA C

RV • SUV• Navy blue• All wheel drive• $5,9999• Large trunk space• Plenty of seats

FORD

MU

STAN

G • Convertible• Red• 2 wheel drive• $5,9999• Small trunk space• Cramped back

seat

Honda CRV Ford Mustang

Stylish car

Good driving experience

Sense of confidence

Personal Choice

Road trips with family

Help in Office work

All wheel drive, helpful in season of snow

Convenience & functionality

DILEMMA

• Ford Mustang • Heart• He felt in love with it as soon as

he saw it• Personal needs

Affective decision

• CRV• Brain• Suitable for both his work and

family• Professional needs

Cognitive decision

• Looking for inner peace• Helps in relieving emotional tension• Makes them feel happy

What makes you write a diary?

Question 2: What steps are required for

Jaime to make his final decision? How does the

author balance hisutilitarian needs against his hedonic needs? What are

his alternatives?

DECISION MODEL Pre purchase Search

Evaluation Of Alternatives

Need Recognition

• Desired State Consumer• Large trunk space• Large car, plenty of seats• Price range(5000-6000)• Insurance Premium• AWD- All wheel drive• Safety and Security needs(CRV)• Inward Egoistic needs and need for

achievement(Mustang)

Pre Purchase Search

• External sources since no prior experience

• High risk situation so complex and extensive information search

Sources of pre purchase information

Personal• Friends• Coworkers• Family• Manager• Salesperson

Impersonal• Information from

product advertisements• Car magazines• Online websites

Evaluation of alternatives

Buy Honda CRV• Will be a cognitive decision• Satisfies all his functional needs• Safety and security needsBuy Ford Mustang• Will be a affective decision• Satisfies his personal needs• Inward Egoistic needs and need for

achievement

• Buying the Honda CRV would satisfy the Physiological and Social needs of Jamie.

• Buying the Ford Mustang would satisfy the Self Esteem needs of Jamie.

MASLOW HIERARCHY OF NEEDS

As per Maslow , • One must satisfy lower level basic

needs before progressing on to meet higher level growth needs.

• Once these needs have been reasonably satisfied, one may be able to reach the highest level called self-actualization.

Therefore, going by this theory Jamie should buy a Honda CRV.

Hedonic Needs:• The need to achieve pleasure from a product; most likely

associated with emotions or fantasies derived from consuming a product.

• The Sense of power and confidence that rises within you comes into picture.

Utilitarian needs:• Utilitarian means relating to practical purposes, or relating

to the idea that usefulness is more important than beauty. • The utility and convenience comes into picture where price ,

mileage , insurance and functionality comes into picture.

HEDONIC VS UTILITARIAN NEEDS

For Jamie, Ford Mustang satisfied is hedonic need.Jamie loved how the car gave him a raised level of confidence. How the car felt , how its steering felt. How the sound of its engine felt. It was his dream car ever since he was in middle school.

Honda CRV satisfied Jamie’s utilitarian needs. He needed a large trunk and plenty of seats and a all heel drive as per the level of snowy it gets in Wyoming.

• Price range 5000-6000• Mustang 6500, CRV 5999• Don agrees to knock down price of Honda

Price

• There was a difference in insurance premium

• Convinced himself that there is not much difference.

Insurance premium

• Honda’s mileage was better• Convinced himself that the difference was

marginal.Mileage

CREATING A BALANCE

If Ford Mustang could even marginally solve his need of bigger trunk and more seats, Jamie would straight away choose Ford Mustang.

It was pretty clear by Jamie’s thinking process that his Heart was overruling his mind . When he set out his search, he wanted a car that was going to be functional and convenient. Ford Mustang was neither of the two, yet it caused him so much dilemma. He was just trying to balance out his needs.

•Jamie can wait and collect more money so that he can buy a car that satisfies both his hedonic and utilitarian needs.

•Jamie can buy a cheaper variant like a van that can strictly satisfy his functional needs(bigger trunk and more seats) and therefore save money and add on to it in order to buy a Ford Mustang soon.

OTHER ALTERNATIVES