What Are The Variables And Variables Of The Decisions Of Per Capita Purchases For Adults? Considering Automobile Acquisitions

The lease versus buy decision is usually tough for many managers since these two options are profitable for the company and bear advantages. Understanding the impact of the decision to buy or lease a vehicle is quite tough for the managers. However, by applying economic reasoning which takes into consideration the qualitative and quantitative influences of each of the alternatives, it is possible to make the decision making process much easier. Leasing provides the advantage of paying only the depreciation costs for the vehicle in addition to taxes and other fees while purchase requires the buyer to pay the full value of the vehicle in addition to taxes and other fees. The typical values for purchase finance repayments and lease monthly payments show that lessees pay much less than the purchasers. The economic analysis presented shows that the lease is a more advantageous option than the purchase option when taken for a longer period of time as a result of having a shorter breakeven point for the company or organization.

In addition to their green initiatives, Ford is looking at other trends regarding consumer elasticity and behavior towards the automobile market. In addition to dealing with the shift in consumer short-term behavior (going from “I really want” to “I do not really need”), the automotive industry, along with all others are wondering what the long-term change will be in consumer behavior due to the recent recession. According to Barkley US, there will be significant long-term changes in consumer behavior. Most notably, the changes will be the consumer going back to a basics mentality, the use of technology and green strategy, and women influencing more purchase decisions. The biggest changes will take place in America and parts of Europe, where housing and stock market bubbles have imploded and unemployment has soared. Companies will also need to show they empathize with consumers’ new concerns. “There will need to be a move from passion to compassion in

· The standardization of industry product: Vehicles products are standardized even though we still can find some differentiation between auto companies. For the consumers who feel they can find the equivalent vehicles between companies, they will compare them. However, since there are brand loyalty among the consumers in choosing a vehicle related to its differentiation, the switching costs for consumers may be high. Thus, the bargaining power of buyers seems to be moderate.

With a wide variety of vehicles and manufacturers due to low switching costs, the bargaining power of customers is very high in the automobile industry. Also foreign brands are selling vehicles in the Indian markets, adding to the bargaining power of customers in this industry. Thus the value created by the firm lies in adding differentiating features by innovating and increasing the customer’s willingness to pay while reducing the supplier’s opportunity cost.

Whether to lease/finance a new/used luxury/economy car is a question that looms in the minds of many. The answer simply depends upon the current market conditions and the needs of the consumer. Financing can be prudent for some, while others may benefit from a leasing situation. Automobile market prices may still be out of reach for many who prefer luxury to an economy car. Additionally, factors and costs must be considered, such as return of investment, return on investment, interest rates, price to rent ratio, pros and cons of leasing, pros and cons of financing, insurance, gas consumption, and depreciation. In the end, car decisions have much to do with one's own interests and personality. The answer is rather relative as oppose to an absolute or universal decision. Hence, a strategy to lease/finance a new/used luxury/economy car for one person may not be a prudent strategy for another.

Ideas introduced in the article assist in understanding Ford’s current situation. Ford reported sharp falls in U.S. auto sales in May 2008. Sales of its most profitable pickups and SUVs suffered the most (“US Auto Sales Slide”). Some of the main

For our initial strategy we wanted to choose a product line that would be most intriguing to customers in this poor economy. To initiate this we focused our products around better gas mileage, safety, and quality. In order to do this we needed to evaluate consumers’ needs and desires when making a high involvement purchase such as a car. We believe the best target market for this type of car would be a middle class family that does not have as much disposable income due to the recession in our economy.

The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed.

The Global Purchasing and Supply Chain division was responsible for streamlining the supply chain and the year 2013 was a good one for the U.S. automotive market as sales rose 7.6 percent to 15.6 million vehicles. This is a substantial comeback from the levels of 2009-2010 when severe recession forced the bankruptcy of General Motors and other automobile companies and caused many other automakers to lose revenue and profits hence reducing labor and operation costs by massive worker layoffs and downsizing by closing manufacturing plants.

Vehicles are a part of a person’s everyday life these days. You see them everywhere, no matter if it’s a big city, or a little country town. People use cars to travel to all sorts of places, whether it is a school or work. We push our vehicles to the maximum so they seem to wear out really fast. It seems like every five to six years you have to purchase a new one. People have so many causes to by a new car these days but owning a car also comes with a lot of effects. New cars come with a lot of benefits like reliability and warranties. The biggest downfall with buying that brand-new car is the car payment and that expensive car insurance. A new car might look good, and you might get more attention, but you pay for that attention. You must ask yourself is the cost worth the award?

We will start the external analysis with the PESTEL analysis of the automotive sector followed by the Porter’s five forces analysis and we will end by having a look at the key competitors and competitor pricing.

2) There are significant differences between the traditional Porsche customer and Cayenne and Panamera customers. The traditional Porsche customer is interested in exclusivity, in having a niche car, different than others. The Cayenne and Panamera customers are also interested in the utility of the car. In other words, they are interested in the storage capacity of the car and in the power of its engine. There are also financial differences between these types of customers. The traditional Porsche buyers have greater financial power in comparison with other buyers. This means that the Cayenne and Panamera customers' purchasing decision process is also based on the price of the car. Therefore,

As it relates to the competitive structure, or the number and size distribution of companies within an industry, the automobile industry is considered a consolidated industry, where a small number of large companies dominate and are able to set prices. Traditionally, in America, these companies were called “The Big Three,” Chrysler, Ford, and GM, but Toyota, was also a major rival during the recession. “In consolidated industries, companies are interdependent, because one company’s competitive actions or moves (with regard to price, quality, and so on) directly affect the market share of its rivals, and thus their profitability” (Hill & Jones, 2012, p. 62). The relative power of consolidation on the automobile industry was high.

The buyer decision process of a typical Porsche customer focuses on selecting cars that reflect their high social status, their financial power, and their preference for exclusive products. They are not interested in the utility or price of the cars in comparison with other customers that are interested in how much the car costs, its size, or its fuel economy performance. Porsche buyers also take into consideration the car's performance, but they focus on the sensations they have when driving such a car.

Unexpected Failure – Ford Edsel – market segmentation by income groups – lifestyles – Mustang