Environmental Factors
When it comes to the decision to purchase a Tesla, a large sports car that can cost anywhere in the range of $79,000-$102,000 USD for a new model, there are two major environmental factors at stake. First, anyone who is considering the purchase of a Tesla is likely doing so for the extreme prestige of this car. Not only is the general public aware that these cars are quite expensive, but the Tesla is a novelty item on the automotive market. Thus, any consumer who is spotted driving a Tesla will not only be perceived to be high-status, but they will also be seen as “cutting-edge” and “hip.” Another environmental factor influencing the purchasing decision is the fact that the Tesla is a fully electronic vehicle, and is thus perceived to be “environmentally friendly” (Lowry, 2014). If a consumer feels guilty about spending so much for a luxury car, they can assure themselves that they are doing something that is good for the planet (Cavalcanti et al, 2013).
Consumer Factors
There are three major consumer factors at stake in the decision to purchase a Tesla. First, the potential Tesla customer is looking for a car that is not only functional, but is a status symbol. Secondly, the Tesla is widely perceived as not only luxurious, but as a car that is capable of driving at high speeds (Lowry, 2014). The potential Tesla customer is not only seeking a status symbol, but a car that is “fun.” As the typical consumer who can afford the high sticker price for this car is most likely middle-aged or older, this “sporty” aspect of the Tesla is perhaps is strongest selling point. Further, the Tesla is associated with Elon Musk, who has a reputation for being avant-garde, ahead of the times, and extraordinarily successful and it is the association with Musk that provides the Tesla with much of its marketing power.
Role of Involvement in Consumer Buying Behavior
Unless the potential customer for a new Tesla is a billionaire and has money to burn, the exceptionally high price of the car will be a high-involvement decision. Not only is the Tesla expensive, but it is relatively new to the automotive market, and as such is not yet a proven quantity. Because of the cost and risk involved in the purchase of a Tesla, the buyer decision-making process falls within the category of complex buying behavior.
Consumer decision-making process
The problem recognition in this instance would not only be the consumer’s decision that he or she needs a car, but a car that also denotes high status, and the Tesla fills this need perfectly. When the customer engages in an information search, Tesla has seen to it that there is an abundance of good reviews regarding the car on the Internet. As far as the evaluation of alternatives, there are no other cars like a Tesla on the market at this point, and so Tesla has put itself in a position where there are no viable alternatives if a consumer is looking for a fast, high-prestige, and environmentally-friendly car. When a customer is engaged in a purchase decision, Tesla Motors likely uses the fact that the company has an excellent reputation for service, manufacturing, and standing behind its brand to its advantage. When the customer is at a Tesla dealership, and is actually making the purchase of the car, the floor salesmen should take pains to reinforce the high quality of the car and the strong service reputation of the company. In this manner, the customer will feel assured that they are getting their money’s worth for the car. During the post-purchase evaluation, Tesla Motors representatives should contact the customer within a month of their purchase and ask them how everything is going with their new car.