The Factors Affecting Consumer Purchasing Decisions in the US Automotive Market

Abstract

Based on the overall discussion, it is apparent that there are different factors, which influence consumer purchase decisions in the US automobile market. These can be classified broadly into: (1) economic factors such as price, good re-sale value, fuel economy, mode of payment and financing arrangements; (2) performance factors such as comfort while driving, quick acceleration and higher engine power, which are linked to factors such as availability of spare parts, good after-sales service and effective integration of technology to achieve consistency in the quality of performance; (3) safety factors can be further divided into personal safety such as having quality tyres or general safety of the environment such as using electric cars and business ethics and ethical standards; finally (4) personal factors include diverse aspects such as experiential benefits and attractiveness, availability of new models and varieties along with social status and brand image or brand reputation, which are influenced by online reviews and word of mouth and in turn affect loyalty and trust. Ranking these vehicle-specific factors in terms of importance is a complex undertaking as each of them is related to other factors described in the model (see Figure 2.3) which are also influenced by each other- thus price is an economic factor but moderated by social factors such as socio-economic grouping and cultural attitudes as well as the individual attitudes of the consumer.