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 NEIGHBORHOODThe 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.

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

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

Operational DefinitionsSafety VersatilityFuel Economy PerformanceReliability SustainabilityCapacity PriceComfort ImportFeatures ResaleDesign

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 SonataToyota Matrix

Honda FitScion XD

Lexus RX-400 HybridNissan Versa

VW TDI WagonHonda Civic HybridToyota Highlander

HybridToyota Camry Hybrid

Honda AccordAudi A5

Toyota 4RunnerToyota Prius

Volkswagon GTIChevy Volt

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.087.5

86.685.2

83.782.7

78.075.875.7

72.466.4

58.551.9

47.847.1

42.139.7

Percentage Weighting

Winner•Lexus RX-400 Hybrid

▫ 5 star safety rating ▫ $43,480 msrp▫ 208/165 HP gas/elec.▫ 26 hwy/ 24 city