Ch. 6 - Consumer Decision Making

  For any company selling something for profit, it is important to know what the consumer wants, when they want it, and why they want it.  Cadillac, being targeted toward potential luxury car purchasers markets specifically for that target group.  But it would also make sense to produce vehicles that can be targeted at different groups other than the luxury car buyers.  Doing this would allow Cadillac to be marketed toward more consumers, increasing sales for the company by producing more vehicles that can be sold.

  Cadillac is most known for its high-end luxury cars, this puts Cadillac off the radar for most car buyers who can't afford a luxury vehicle.  In recent years Cadillac has produced models such as the CTS which are substantially cheaper than some of their other models.  While the CTS is still considered a luxury car, it is more affordable, and allows more models to be sold because of its price.  Cadillac has increased its sales year after year now that they produce different priced models.

Cadillac Ciel Concept at the Frankfurt Auto Show (Sept. 2011)


  Another example of Cadillac using consumer behavior to market to those groups better is the Cadillac Ciel concept car unveiled last week at the Frankfurt Auto Show.  The Cadillac Ciel is a powerful luxury car at 425 hp.  It has all the tweaks and perks of other Cadillac models, allowing it to be marketed toward all the current Cadillac consumers.  While this vehicle keeps all the classic features expected out of a Cadillac, including a powerful v6 engine, and a luxury interior, it was designed with a specific target group in mind.  It is a hybrid car, capable of driving fully off electricity for short distances, and then switching over to its v6 engine once the electricity runs out.  Currently, consumers have a very high interest in saving the environment, and the electric vehicle is one of the most convenient ways of doing so.  The Cadillac Ciel will be targeted toward this specific market, a market that previously couldn't be marketed to by Cadillac, due to its lack of environmentally friendly vehicle (other than the Cadillac Escalade Hybrid).

  Any company that wants to maintain profitability has to constantly be aware of consumer behavior in all of its aspects.  The marketers need to be aware of what the consumers want now, and what they will want in the future.  If a company fails to understand and heed consumer behavior it will be difficult to remain profitable for long.