EXERCISES
(1) Summarize and justify alternative scenarios (i.e., compelling stories about the future) ranging from pessimistic to optimistic with regard to market performance of hybrid cars.
- Electronic Fuel Injection: This scenario is an optimistic scenario for hybrid cars adoption. In this scenario 100% of the market will eventually adopt the hybrid car. This scenario predicts that the growth will start out slow, until there is a breakthrough in technologies that make the hybrid car even more efficient and affordable to the struggling class. When the breakthrough occurs there will be an accelerated growth and eventually the hybrid car will become the norm with 100% of the market will be adopting the car.
- Solar Energy:
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Inflation and rising prices across the United States will help grow the market, because consumers will try to lower their transportation cost to fund other parts of their expenditures.
- Market price of elasticity is set at the highest position of 0.5%. This is because of how price sensitive the automotive market is to begin with and combining it with consumers who are trying to save the most money possible when moving to more efficient modes of transportation. The high price of hybrid vehicles makes people less likely to buy them, and as the manufacturers and government agencies pass cost savings to consumers, there will be more penetration.
- The hybrid vehicle is not entirely new to the world, but it is also not entirely saturated either. We set the advertising coefficient at 1% to reflect an average amount of penetration through advertising. There is often limited stimuli for a consumer and the amount of advertisements by other manufactures are only increasing. Consumers might be overexposed to these car ads. We reflect an average amount of penetration through advertising through this coefficient.
- The price coefficient is set at the maximum 4% because of how price sensitive the automotive market is. Everyone bargains deals and takes advantage of special pricing and financing. Hybrid buyer market is no longer occupied by the same type of people; people are now chasing prices and maximizing the
2. Based on HEV sales to date, how would you describe U.S. buyers of electric passenger cars?
The world’s population is at a steady growth, and it’s not going to stop. More and more people are in need for transportation, and a majority of them choose private transportation over public transportation. The author of The Gas-Electric Hybrid Demystified, Sara R. Howerth, highlights the development of hybrid vehicles and their purpose in the world. Her article’s audience is pointed towards young adults, essentially students; reasons being they are the new generation, and a portion of them are entering post-secondary having to pay for school, transportation, residency, etc. The article presents a useful resource to young adults that explains the growth of an improved system of private transportation that applies to fuel efficient, cheaper, and less-polluting vehicles. The purpose of the article is to teach young adults about a product that can both help them and help the world around them.
In this article “Why the Gasoline Engine Isn’t Going Away Any Time Soon,” Joseph B. White states that alternative energy cars could be the start of a revolution in the automaker world, however, complications interfere with the outcome. Although the author suggests different ideas on alternative vehicles, he contradicts himself numerous times while also lacking credibility of any sources.
The target audience throughout the 129-year history of Popular Science magazine has traditionally been working age males. The advertisements within that magazine reflect the audience in whom they are attempting to reach. From new technological gadgets to old-fashioned tools, the advertisers know what will be attractive to the reader, and to the reader's wallet. Of these advertisers, the most popular by far have been those from the automotive industry. The Ford Motor Company has chosen to strategically advertise within the pages of this magazine on numerous occasions and with various ads that were meant to lure new customers into buying Ford vehicles. It is interesting to notice that the styles of these advertisements are schemed with just
2. Why do people buy SUVs? What benefits do SUVs deliver? Does the product make sense on a rational, economic basis?
In the automobile industry, there are factors that cause a shift in the supply and price elasticity of the supply and demand. These factors can cause the
CONSUMER TASTES | How many customers will sign on the line for a new car? Incentives from one dealership force the hand at others. Consumer taste affects which
This is a real life problem and as you research the vehicle you may discover that success is not a certainty. Apply marketing theory for grades!
Just about everyone wants a car but no one Wants to pay for gas well now thanks to technology we don’t have to yes thanks to the discovery of the electronic car people can travel solely on the power of electricity but most people say that Unless some new type of battery is invented these electronic Car are nothing more than a dream but these are far more than a dream and very much so a part of reality But what does the future hold for these cars
For instance, if the price of gasoline continue to increase, the hybrid car would be considered as price inelastic because although the price of the hybrid car may increase somewhat, the consumer will be able to save money on gas. On the other hand, if the prices of gas are stabilized, the hybrid car will be considered as price elastic because if the price of the hybrid cars are on the rise and a conventional car costs less, the consumer will go with the conventional car.
· The vehicles that are being sold are expensive so selling such products would have a good impact on the economy.
A number of hybrid vehicles have been built and tested since 1980. Some of these vehicles have impressed analysts with their performance and low levels of exhaust and petroleum consumption. Interest in hybrid vehicles jumped in late 1993 with the announcement of funding for
The curve at the bottom represents hybrid vehicles that cannot run on electric only mode. Six models are selected from four degrees of hybridization which are micro, mild, medium, and full. Staring from 0% at the bottom left, the curve goes up as the degree of hybridization goes up. The Vue, one micro hybrid car model, can reduce the petroleum usage by 18%, while the Toyota Prius, one of the best full hybrid models in the world, can reduce the petroleum usage over 40%. Even though the Toyota Prius can
Figures of different hybrid models will also be included as well as a table comparing the costs of various hybrids to traditionally fuelled cars. This will help the audience get a sense of the price ranges for hybrid vehicles before they go out and decide to buy one. Finally, a table dealing with the performance specs of hybrids will be added to emphasize certain limitations with these models.
Also, if Honda decides to make a big change to hybrid technology, they will see other companies dominate the petrol car industry and gain much more market share.