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Impact of Sustainability on Consumers: Auto Buying Decision

Impact of Sustainability on Consumers: Auto Buying Decision. Team 3: S. Gunderson - S. Manghi - E. Mark – J. Rodriguez . Agenda. Elaine –Assumptions Shawn –Demographics Jose – Car Options Elaine – Sustainability Steve – Analytics and Wrap up Q&A. Consumer Assumptions.

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Impact of Sustainability on Consumers: Auto Buying Decision

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  1. Impact of Sustainability on Consumers: Auto Buying Decision Team 3: S. Gunderson - S. Manghi - E. Mark – J. Rodriguez

  2. Agenda • Elaine –Assumptions • Shawn –Demographics • Jose – Car Options • Elaine – Sustainability • Steve – Analytics and Wrap up • Q&A

  3. Consumer Assumptions • Couple with combined income of 200K after taxes • Jobs in downtown Bellevue and downtown Seattle • 1 child, approximately 6 years old • Considering having one more child • Saving for private school • Currently own 2 Subaru Outback cars with100K miles on each • Seeking new commuter car under $45K at $766 payment per month • Daily roundtrip approximately 25 miles

  4. FAMILY PSYCHOGRAPHIC CARS ARE AN EXTENSION OF ONESELF • Psychographics concentrates on a person's psychological makeup and how it differentiates their actions to people in other groups, in this case in respect to their buying habits .

  5. PSYCHOGRAPHIC SOCIALLY CONSCIOUS TYPE A: • Not concerned with the world of achievement or community, rather what effects their actions have on society on a whole. They want to make the world a better place. SC TYPE A BUYING PATTERNS • Product is made by someone they trust they will probably buy it, even if it is more expensive. • Very important to fulfill obligations to family, community and country. • Very important to take social responsibility for the well-being of society.

  6. OUR NEIGHBORHOOD The Boomburbs • Younger families with busy, upscale lifestyle. • Median home value is $275,000 (and growing), • Two workers • Two vehicles. Focus attention on: • Upgrades, furnishing and landscaping. • Family, leisure, and other outdoor activities.

  7. FRAMING THE DECISION Our family is highly educated and able to do research: • They will see through fake environmentalism & social consciousness • Being cynical they will not believe car companies that tout environmentally friendliness w/o proof • They will stay away from cars that blatantly harm the environment • Our family will easily connect the dots from sustainability to vehicle options.

  8. Website Help • Tesla Roadster

  9. Scion xD They’re everywhere Toyota Matrix • Honda Fit • Nissan Versa

  10. Cadillac Escalade Hybrid Full Size Vehicles BMW X6 Hybrid VW TDI Wagon

  11. Sustainability Factors Considered • Carbon Emissions • Heavy Metals • Toxins from Plastics • Disposal Waste and Landfill

  12. End of Life Vehicle (ELV) Directive • The ELV directive came into effect in 2000 in the EU • Requires manufacturers to be responsible for reuse, recycling, recovery and treatment of their products in an environmentally sound manner

  13. ELV Solutions in the U.S. • Programs to collect and recycle Mercury switches from end of life vehicles • ELVS provides education, collection materials, transportation and record-keeping • Participating Members: • BMW, DaimlerChrysler, Ford, General Motors, International Truck & Engine, Mack Trucks, Mitsubishi, Nissan, Porsche, Subaru, Toyota, Volkswagen, and Volvo Trucks

  14. Operational Definitions

  15. Relative Importance of Attributes

  16. Alternative Evaluation - Preference Relative to Attribute Ranking Percentage Weighting

  17. Winner • Lexus RX-400 Hybrid • 5 star safety rating • $43,480 msrp • 208/165 HP gas/elec. • 26 hwy/ 24 city

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