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▫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

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 .

PSYCHOGRAPHICSOCIALLY 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.

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.

FRAMING THE DECISIONOur 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.

Website Help• Tesla Roadster

They’re everywhereToyota Matrix Scion xD

•Honda Fit •Nissan Versa

Full Size VehiclesBMW X6 Hybrid Cadillac Escalade Hybrid

VW TDI Wagon

Sustainability Factors Considered

▫Carbon Emissions▫Heavy Metals▫Toxins from Plastics▫Disposal Waste and Landfill

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

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

Operational Definitions

Safety Versatility

Fuel Economy Performance

Reliability Sustainability

Capacity Price

Comfort Import

Features Resale

Design

Relative Importance of Attributes

SafetyFuel Economy

Reliability CapacityComfortFeatures

DesignVersatility

PerformanceSustainability

PriceImportResale

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

17.9%13.6%

11.1%9.9%

8.7%8.7%

6.5%6.4%

4.8%4.8%

3.6%3.1%

0.7%

Percentage Weighting

Alternative Evaluation - Preference Relative to Attribute Ranking

Hyundai Sonata

Toyota Matrix

Honda Fit

Scion XD

Lexus RX-400 Hybrid

Nissan Versa

VW TDI Wagon

Honda Civic HybridToyota Highlander

HybridToyota Camry Hybrid

Honda Accord

Audi A5

Toyota 4Runner

Toyota Prius

Volkswagon GTI

Chevy Volt

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

87.5

86.6

85.2

83.7

82.7

78.0

75.8

75.7

72.4

66.4

58.5

51.9

47.8

47.1

42.1

39.7

Percentage Weighting

Winner

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