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Values And The Automobile Market In The Term Paper

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Values and the Automobile Market In the last decade, the luxury car segment became one of the most competitive in the automobile market. Many American consumers who purchase luxury cars prefer imports from Germany and Japan.

A marketing vice president with General Motors once commented, "Import-committed buyers have been frustrating to us." This type of thinking has led industry analysts to argue that to successfully compete in the luxury car segment, U, S, carmakers need to develop better understanding of the consumers so that they can better segment the market and better position their products via more effective advertising. Insight into the foreign-domestic luxury car choice may result from examining owners' personal values in addition to their evaluations of car attributes, because luxury cars, like many other conspicuously consumed luxury products, may be purchased mainly for value-expressive reasons.

Industry analysts believe it would be important to assess whether personal values of consumers could be used to explain ownership of American, German, and Japanese luxury cars. Further, they believe they should also assess whether knowledge of owners' personal values provides any additional information useful in explaining ownership of American, German, and Japanese luxury cars beyond that obtained from their evaluations of the car's attributes.

Personal values are likely to provide insights into reasons for ownership of luxury cars for at least two reasons. First, Americans have always had a very personal relationship with their cars and have used them as symbols of their self-concept. For instance, people who value a sense of accomplishment are quite likely to desire a luxury car that they feel is an appropriate symbol of their achievement, whereas people who value fun, enjoyment, and excitement are likely to desire a luxury car that they perceive as fun and exciting to drive. An advertiser trying to persuade the former segment to purchase a luxury car should position the car as a status symbol that will help its owners demonstrate their accomplishments to others. Similarly, an advertiser trying to persuade the latter segment to purchase a luxury car should position the car as a fun and exciting car to drive. In other words, effective...

The list contained names of people who had purchased either a luxury American car (Cadillac or Lincoln Mercury), a luxury German car (Mercedes or BMW), or a luxury Japanese Car (Infiniti or Lexus) within the last year. A cover letter explained that the survey was part of an academic research project. People were asked to return the questionnaires anonymously to a university address (a postage-paid envelope was provided with each survey). Beyond an appeal to help the researchers, respondents were not offered any incentives to complete the surveys. Of the 498 surveys originally sent, 17 were returned by the post office as undeliverable. One hundred fifty-five completed surveys were receive, for a response rate of 32.2% [155/(498-17)].
The Survey Instrument

The survey included questions on (1) various issues that people consider when purchasing new cars, (2) importance of car attributes, (3) importance of different values, and (4) demographics (sex, age, education, and family income). Questions relating to the issues that people consider when purchasing new cars where developed through initial interviews with consumers and were measured with a 7-point Likert scale with end anchors of "strongly agree" and "strongly disagree." (See Case Exhibit 32.1.) A list of 12 car attributes was developed from the initial interviews with consumers and by consulting Consumer Reports. (See Case Exhibit 32.2.) The importance of each attribute was measured with a 7-point numerical scale with end points labeled "very important" and "very unimportant." For measuring the importance of values, the List of…

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