Consumer motivations regarding non-ownership decisions in the automotive industry
- Social approval.
In the analysis of non-ownership decisions in the automotive industry ?non-ownership? must first be defined. Non- ownership is simply referring to a leasing type of contract, this type of a contract allows for consumption without ownership. Traditional purchase, cash or financing, the consumer holds the title to the vehicle, while in a leasing contract the automobile manufacturer holds the title. Therefore the leasing contract is ?non-ownership?; this comes with many benefits that motivate customers to make this decision; but not all customers are motivated by the same reason. The two general types of motivations are utilitarian, tangible or financial motives, and hedonic, the pleasure motives, (Trocchia, Beatty, and Hill 2006 p306). Based on these types of motivations customers choose their contract type and the responsibilities that surround it.
[...] The Cadillac had an increase of in purchase and lease. The Lincoln a increase in purchase and a increase in lease. All vehicles in this study had a higher increase in purchase due to the rebate, but the margin between lease and purchase was the lowest in these two brands, because of their projected maintenance costs. While examining a vehicle known for reliability, Toyota Avalon, this vehicle showed the least amount of leasing increase with a .9% and a in purchase increase, this was the lowest margin of all vehicles examined (Dasgupta, Siddartha, and Silva-Risso 2007 p498). [...]
[...] Segmentation Consumers were broken into five clusters based on responses to various questions regarding motivations, during and after the purchase process; these are based on the five broad desires outlined in the deconstruction. (1)?desire for simplified maintenance? ?desire for variety? desire for gratification from physical comfort? ?desire for gratification from driving excitement? and ?desire for social approval? (Trocchia, Beatty, and Hill 2006 p307). The five clusters were characterized into these groups for easier visualization. First, the ?Budget Gourmets? consisting of younger, lower income individuals who enjoy variety, gratification from driving excitement and desire for simplified maintenance in their vehicles? (Trocchia, Beatty, and Hill 2006 p310). [...]
[...] Conclusion Upon analysis of consumer motivations in relation to leasing, we have identified segments of consumers who have the same motivations to choose one type of contract over another. Demographics alone were not enough to draw any conclusions on tendencies of consumer buying behaviors, the two single best predictors of non-ownership consumption are desire for variety and desire for simplified maintenance (Trocchia and Beatty 2003). The desire for variety is very closely related to the desire for social approval, in that constantly having a new vehicle will improve your social status on the basis of keeping up with the newest trends and your peers. [...]