Automobile choices within e-commerce, technology innovation and current financial environments

Alan D. Smith

International Journal of Services and Operations Management, 2010, vol. 7, issue 2, 143-176

Abstract: In today's market, automobile manufacturers must have a significant market presence to compete and, in many cases, just to survive in a marketplace where several of the major automobile manufacturers must find emerging markets and innovations within existing markets. While the prevailing opinion on the reason for the current auto industry crisis centres around the economic downturn and decreased consumer spending on major items such as automobiles, there is evidence that consumers have cut back on automobile purchases for a series of additional reasons. A sample of semiprofessional and professional working professionals, representing a number of service-related firms in the Pittsburgh metropolitan area, were surveyed and, based on a sample size of 200, four hypotheses were tested using multiple linear regression techniques. The fuel efficiency of new automobiles has not improved significantly enough to induce customers to purchase new automobiles on fuel savings considerations. Customers may fear that because of accelerated technology progress, a new automobile will become obsolete rapidly and so they are resistant to making the investment. The latest technological advances such as in-built Geographical Positioning System (GPS) systems can be easily purchased separately and do not require purchase of the automobile. In general, new automobiles are not viewed as significantly superior to older automobiles.

Keywords: automobile industry; customer behaviour; customer relationship management; CRM; financial crisis; technological innovation; e-commerce; electronic commerce; market presence; emerging markets; economic downturn; consumer spending; working professionals; service industry; Pittsburgh; USA; United States; linear regression; fuel efficiency; accelerated technology progress; obsolescence; GPS; global positioning systems; automotive purchasing; strategic planning. (search for similar items in EconPapers)
Date: 2010
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