Luxury Automobile Industry - Cornell University · Luxury Automobile Industry Luka Jankovic, Alexa...
Transcript of Luxury Automobile Industry - Cornell University · Luxury Automobile Industry Luka Jankovic, Alexa...
Luxury Automobile Industry
Luka Jankovic, Alexa Davis, Laila Judeh Spring 2015 AEM 4160: Strategic Pricing
Executive SummaryINDUSTRY BACKGROUND
Value/Premium Pricing1st and 2nd Degree Price
DiscriminationSecondary Market Pricing
PRICING STRATEGIES
RAW DATA ANALYSIS
• The overall US automobile industry will see weakened growth throughout the rest of decade, but demand for luxury vehicles will be buoyed by an improving macro economy
• The average price of standard and luxury vehicles continues to rise• The luxury and sports car industry comprises of 17% of the market
• Luxury automobile manufacturers utilize several pricing strategies to extract the maximum surplus from consumers
• The secondary market pricing is heavily linked to high rates of depreciation
• Our analysis does not show any discernable relationship between the average price paid for a luxury automobile and median income, level of education, population, or geography
• There are several unobserved factors that may affect pricing strategies
Industry Background
Industry at a GlanceCar & Automobile Manufacturing in 2015
Revenue
Profit
Annual Growth 10-15Exports
Annual Growth 15-20Businesses
$107bn
$4.5bn
5.4%$57.3bn
2.5%203
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Consumer Confidence Index
Demand from new car dealers
World price of crude oil
World price of steel
Greater demand at the retail level, which is represented by car dealers, generates greater demand at the manufacturing level.
As gas prices decrease, consumers will be less sensitive to fuel-efficient vehicles, which are often from International brands.
Steel prices can be a major cost pressure, which can’t be passed onto customers. Prices are expected to decrease.
The 10-Year Treasury note is tied to interest rates. As interest rates rise, demand for cars rise due to lower financing costs.
Yield on 10-Year Treasury note
Spending behavior on large purchases, like automobiles, have a positive relationship with consumer confidence.
Auto industry is international so appreciation of USD lowers export rates and industry revenues.
Trade-weighted index
Key External DriversThe automobile industry is sensitive to macroeconomic pressures
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Supply ChainThe automobile industry is heavily dependent on its suppliers
The public or car rental leasing
companies
New car dealers
• Paint manufacturing• Steel manufacturing• Battery
manufacturing• Parts manufacturing
Automobile Wholesalers
Buying Industries
• Electronics manufacturing• Steering manufacturing• Brakes manufacturing• Interior
manufacturing
Selling Industries
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Cost StructureAuto manufacturers are cutting costs to bounce back from bankruptcy
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
4%5%
77%
3%3%2%6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Value
Industry Costs (2015)
Other
Rent & Utilities
Marketing
Depreciation
Purchases
Wages
Profit
‣ Largest percentage of costs are inputs, including engines, transmissions, etc.
‣ Wages falling, but still large due to labor contracts and inflated salaries
‣ Manufacturers that work with UAW Union will struggle to compete with mass-market, lower priced cars
‣ Renewed profitability due to:
‣ Lower labor expenses
‣ Improved retail sales
‣ Greater credit access
‣ Increasing consumer confidence
International TradeNAFTA inflated trade statistics between US, Mexico and Canada
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Exports ($57.3bn) Imports ($159.8bn)
Germany, 10%
Saudi Arabia, 7%
All Others, 43%
Canada, 25%
China, 15%
Germany15%
Mexico12%
Canada29%
Japan27%
All Others17%
‣ HIGH and INCREASING
‣ High rate of exports to Canada due to NAFTA restrictions and location of manufacturing plants near Great Lakes
‣ China’s growth as export market due to rising affluence and standard of living
‣ HIGH and INCREASING
‣ High rate of imports from Canada and Mexico due to NAFTA restrictions
‣ International automakers moving assembly plants to Mexico to lower labor costs
Products & Market SegmentationLuxury and sports cars only comprise 17% of the market
5%
12%
41%43%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Sports Cars Luxury Cars Compact andSubcompact
Cars
Midsize andFull-SizeSedans
Product Segmentation (2015)
11%
5%
54%
20%
12%
0%
10%
20%
30%
40%
50%
60%
RentalCompanies
Government Exports Dealers Wholesalers
Market Segmentation (2015)
17%
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Competitive Landscape
Luxury Car IndustryHighly fragmented industry driven by consumer spending and interest rates
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
‣ Industry is highly fragmented with independently owned dealerships
‣ Luxury car dealers sell new and used vehicles, provide routine maintenance, repair and warranty services
‣ Price is secondary to customer service, staff training programs, single-point service, low-pressure experiences
‣ Market split between large and small companies
‣ Large companies: offer greater vehicle variety and well-stocked lots
‣ Small companies: offer boutique experience and individualized customer service
‣ Product segments
‣ Price: lower, middle, upper
‣ Type: sedan, SUV, sport luxury, super luxury
Luxury car = vehicle costing over $30,000
Barriers to EntryThe automotive industry has high and steady barriers to entry
Competition
MEDIUM
Technology Change
HIGH
Regulation & Policy
MEDIUM
Industry Assistance
HIGH
Concentration
MEDIUM
Life Cycle Stage
MATURE
Capital Intensity
HIGH
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Internal Basis of CompetitionCompetition in automotive industry is medium and increasing
Price Fuel EconomyStyling Reliability
‣ Each car class (compact, mid-size, etc.) has range of prices
‣ Similar vehicles, which are marketed to different customers will be priced differently
‣ Price varies according to personalization and higher add-ons
‣ Automakers redesign vehicle’s styling every five years
‣ Recently redesigned cars sell in higher volumes than other cars
‣ Redesigning a vehicle is not always a profitable venture if customers prefer the outgoing model
‣ Reliability concerns are lesser since domestic auto makers caught up to international auto makers, like Toyota and Honda
‣ Quality control procedures and manufacturing equipment have improved among domestic companies
‣ Consumers have shifted away from cars with low fuel economy (SUVs & trucks) towards compact and mid-size cars
‣ Manufacturers offer environmentally friendly options, like hybrid-electric, electric & clean diesel engines
‣ Shift from naturally aspirated engines to forced-induction engines
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Leading Luxury Car BrandsIndustry is becoming dominated by Japanese and German brands
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
• German-owned, manufactures premium cars under BMW, MINI and Rolls-Royce names
• 17 global production facilities with external partners in emerging markets (e.g. India, Thailand)
• 2014 unit sales = 339,738; 9.8% annual change(50% revenue from Europe, 50% from US & China)
• Subsidiary of Volkswagen, manufactures premium automobiles and armor-plated security vehicles
• Entering small, high-powered motor industry to acquire Ducati and launching diesel technology in N.A.
• Financial services offers financing, Audi Visa Signature credit card, Liberty Mutual insurance
• 2014 unit sales 182,011; 15% annual change (75% revenue from Europe, 50% from US & China)
• Division of Japanese-based Toyota, manufactures passenger cars, utility vehicles and sports cars
• Distinguishes itself from competitors with early-adoption of hybrid technology, quality and reliability
• 2014 unit sales = 311,389; 13.7% annual change
• German company, which symbolizes status, success and good taste; celebrated by popular culture
• First mover in luxury autos in early 1900’s; differentiates with variety, luxury features & safety measures
• 2014 unit sales = 356,136; 6.5% annual change
• Launched during 1980’s under Japanese company Honda with only two models
• Differentiated with low ownership costs but struggled to expand product line and lacks niche market
• 2014 unit sales = 167,843; 1.5% annual change
Luxury Car Market ShareCar & Automobile Manufacturing in 2015
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
17.6
17.1
16.1
9.4
8.8
8.7
6.1
4.9
2.9
2.7
2.4
0.8
0.7
0.2
1.6
0. 2. 4. 6. 8. 10. 12. 14. 16. 18. 20.
BMW (BMW)
Mercedes-Benz* (Daimler)
Lexus (Toyota)
Audi (VW)
Cadillac (GM)
Acura (Honda)
Infiniti (Nissan)
Lincoln (Ford)
Volvo (Volvo)
Land Rover (Tata)
Porsche (VW)
Jaguar (Tata)
Maserati (Fiat)
Bentley (VW)
Other**
Luxury vehicles: United States premium vehicle market share 2014 U.S.
HHI =
1189
Pricing Strategies
Pricing StrategiesLuxury car manufacturers employ several pricing strategies
1 Value/Premium Pricing
3 2nd Degree Price Discrimination
1st Degree Price Discrimination2
• Options
• Leasing
• Secondary Market
• Inter-temporal
• Willingness to Pay
• Income
• Bargaining Skills
4 3rd Degree Price Discrimination
• Military Discounts
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Value/ Premium PricingPremium pricing is the primary strategy employed
Companies use value-based pricing to set prices on the customers’ perceived value instead of the cost or production or historical prices.
Only a small population can afford to purchase luxury automobiles, which furthers its perception of luxury and exclusivity.
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
$263,200Rolls Royce Ghost
$16,950Toyota Corolla
• Cost of manufacturing for luxury cars is not necessarily higher than economy vehicles
• Profit margins for luxury vehicles are significantly higher because of boosted revenues
• Advertising focuses on brand and image rather than cost savings and efficiency
Luxury Car ProfitsManufacturers with luxury cars have higher profits
0%
1%
2%
3%
4%
5%
6%
7%
8%
BMW Volkswagen Mercedes Honda Nissan GM Ford Chrysler
Pro
fit
Mar
gin
(%)
Predominantly EconomyLuxury or Major Luxury Lines
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Communications Manager James Warren
“Rolls Royce is the ultimate expression that you have made it.”
1st Degree Price DiscriminationLuxury car manufacturers attempt to gather all consumer surplus
Charging a different price to each consumer based on their perceived WTP
Elements
Income (Credit Check)
Willingness to Pay
Bargaining/Negotiation
2
3
1P
P’
P’’
A
B
C
Pricing down the demand
curve this captures all
CONSUMER SURPLUS
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
2nd Degree Price DiscriminationLuxury car manufacturers utilize several 2nd degree strategies
Designing a menu of alternatives to allow consumers to self-select based on different willingness to pay
1 Options
3 Secondary Market
Buying vs. Leasing2
4 Inter-temporal Pricing
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
OptionsLuxury features provide additional surplus extraction
Rear Wheel DriveAll Wheel DriveMSRP starting at
$54,275MSRP starting at
$56,775
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
+$5,640• Premium Package 1• Sport Package• Radio: Command w/
Navigation & Voice
+$9,305• Premium Package 1• Lighting Package• Sport Package
+$15,895• Redline Package• Premium 1 Package• Drive Assistance
Package
Mercedes e350 2015
$25,965 $24,565Toyota RAV4 2015
-
-==
$2,500$1,400
Difference
Mercedes e350 2015 Packages
Secondary Market PricingSecondary luxury vehicles sell for significantly less than new cars
FACTORS
Age
Mileage
Repairs
Information Asymmetry4
2
3
1
Quality Uncertainty5
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Vehicle DepreciationLuxury vehicles tend to depreciate more in value
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 2 4 6 8 10 12 14
Val
ue
of
Car
Le
ft
Years
Standard (15% per year) Luxury (20% per year)
Source: Based on data from Kelly Blue Book (Assumes 15% dep./yr and 20% dep./yr for standard and luxury automobiles, respectively
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
$0.00
$10,000.00
$20,000.00
$30,000.00
$40,000.00
$50,000.00
$60,000.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Cu
mu
lati
ve D
epre
ciat
ion
Years
Standard Luxury
Cumulative DepreciationCumulative depreciation losses from luxury cars are nearly double
Source: Based on data from Kelly Blue Book (Assumes 15% dep./yr and 20% dep./yr for standard and luxury automobiles, respectively
Avg Price: $55,763
Avg Price: $32,086
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
25%of all new car transactions are leases
Inter-temporal PricingThe innovation adoption lifecycle illustrates inter-temporal pricing
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
INNOVATORS EARLY ADOPTERS EARLY MAJORITY LATE MAJORITY LAGGARDS
Willingness to Pay Economies of ScalePatience
INNOVATION ADOPTION LIFECYCLE
3rd Degree Price DiscriminationAutomakers charge different prices to certain demographics
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Seller charges different prices to two or more different buying groups with different demand elasticities.
These groups can then be differentiated based on characteristics such as, age, location, or sex.
United Services Automobile Association (USAA)* Members Receive Up to $7,000 in Member Discounts
BMW ChevroletMercedes-Benz
*USAA is a member-owned Fortune 500 company that serves members of the military and their families with insurance, banking, investment and financial service products
Raw Data Analysis
Raw Data Component
GoalsWe intend to analyze several factors that may have an effect on the average price paid for a luxury vehicle.
Raw data analysis can provide insight into key pricing strategies
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
2 Education
4 Dealership Effects
Population3
5 Regional Differences
Analysis Points
Income1
Hypothesis
Higher education will lower price with better bargaining
More competition will lower price paid
Higher population lowers information asymmetry
Sparsely populated regions will have higher prices
Higher incomes will be more susceptible to premium
6 Extrema Comparison Price insensitivity with high income individuals
DataOur sources provide us with adequate tools for our analysis
BMW 5 Series StatisticsMedian $50,553.00Average $51,170.32Standard Deviation $1,559.02Maximum $54,161.00Minimum $48,843.00
Elements
50 random zip codes
Car prices from truecar.com
Consistent model (BMW 5 Series Base)
Demographic data from zipwho.com4
2
3
1
Dealership data from Kelly Blue Book5
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Median IncomeMedian income does not seem to have an effect on final price paid
y = -0.0203x + 52205R² = 0.0456
$48,000.00
$49,000.00
$50,000.00
$51,000.00
$52,000.00
$53,000.00
$54,000.00
$55,000.00
$0.00 $50,000.00 $100,000.00
Av
era
ge P
rice P
aid
Median Income
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Education
y = -437.38x + 51292R² = 0.0014
$48,000.00
$49,000.00
$50,000.00
$51,000.00
$52,000.00
$53,000.00
$54,000.00
$55,000.00
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Av
era
ge P
rice P
aid
College Degree (%)
Education does not seem to have an effect on final price paid
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
PopulationPopulation does not seem to have an effect on final price paid
y = 0.03x + 50173R² = 0.029
$48,000.00
$49,000.00
$50,000.00
$51,000.00
$52,000.00
$53,000.00
$54,000.00
$55,000.00
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000
Av
era
ge P
rice P
aid
Population
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
26%of surveyed luxury dealerships were BMW
Market Space: BMW, Mercedes, Audi, Acura, & Lexus
Luxury Dealership FrequencyHigher income areas tend to have more luxury dealerships
y = 1E-04x + 0.246R² = 0.2706
0
2
4
6
8
10
12
$20,000.00 $30,000.00 $40,000.00 $50,000.00 $60,000.00 $70,000.00 $80,000.00 $90,000.00
Lu
xu
ry D
eale
rsh
ips
Median Income
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
BMW DealershipsMore BMW dealerships in the area do not seem to alter the price
y = 37.808x + 50984R² = 0.0012
$48,000.00
$49,000.00
$50,000.00
$51,000.00
$52,000.00
$53,000.00
$54,000.00
$55,000.00
0 1 2 3 4 5 6 7 8
Av
era
ge P
rice P
aid
Number of BMW Dealerships
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
BMW Dealerships/CapitaBMW Dealership/Capita does not affect prices
y = 884929x + 50984R² = 0.0012
$48,000.00
$49,000.00
$50,000.00
$51,000.00
$52,000.00
$53,000.00
$54,000.00
$55,000.00
0 0.00005 0.0001 0.00015 0.0002 0.00025 0.0003 0.00035
Av
era
ge P
rice P
aid
Number of BMW Dealerships/Capita
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Luxury DealershipsMore luxury dealerships in the area does not seem to affect price
y = -22.726x + 51228R² = 0.0049
$48,000.00
$49,000.00
$50,000.00
$51,000.00
$52,000.00
$53,000.00
$54,000.00
$55,000.00
0 2 4 6 8 10 12 14 16 18 20
Av
era
ge P
rice P
aid
Number of Luxury Dealerships
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Luxury Dealerships/CapitaLuxury dealerships/capita does not seem to affect price
y = -531927x + 51228R² = 0.0049
$48,000.00
$49,000.00
$50,000.00
$51,000.00
$52,000.00
$53,000.00
$54,000.00
$55,000.00
0 0.0001 0.0002 0.0003 0.0004 0.0005 0.0006 0.0007 0.0008 0.0009
Av
era
ge P
rice P
aid
Number of Luxury Dealerships/Capita
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
GeographyGeography does not seem to have an effect on final price paid
$51,086.33
$50,980.00
$51,087.17
$51,729.63
WEST
MIDWEST
SOUTHEAST
NORTHEAST
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Significance TestThere are no statistically significant differences across regions
Statistic Value
n 50σ $1,559.02μ $51,170.32α 5.0%
Region Value Z-Score Probability Significant?Northeast $51,086.33 -0.38 35.2% No
Southeast $50,980.00 -0.86 19.4% NoMidwest $51,087.17 -0.38 35.3% No
West $51,729.63 2.54 99.4% No
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Average Price PaidLower income areas may pay more for luxury cars
$49,000.00
$50,000.00
$51,000.00
Mahopac, NY Beverly Hills, CA
Ave
rage
$49,000.00
$50,000.00
$51,000.00
Tacoma, WA Oakland, CA
Ave
rage
Top Two Income Bottom Two Income
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Price SpreadLower income areas experience greater price spreads
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
$0.00
$500.00
$1,000.00
$1,500.00
$2,000.00
$2,500.00
Mahopac, NY Beverly Hills, CA
Stan
dar
d D
evi
atio
n
$0.00
$500.00
$1,000.00
$1,500.00
$2,000.00
$2,500.00
Tacoma, WA Oakland, CA
Stan
dar
d D
evi
atio
n
Top Two Income Bottom Two Income
SkewHigh income areas have a lower price sensitivity
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
0
0.5
1
Mahopac, NY Beverly Hills, CA
Skew
0
0.5
1
Tacoma, WA Oakland, CA
Skew
Top Two Income Bottom Two Income
Unobserved FactorsDespite our results, pricing strategies could still be in play
Potential Unobserved Factors
Negotiating Ability: Individuals who understand the value of money may be better negotiators
Heterogeneous Demographics: Areas with a wide range of demographics can lead to higher spreads
Perceived Value of Money: Some individuals may more be frugal no matter income levels
Geography: Individuals may require different vehicles depending on the terrain/climate4
2
3
1
Information Asymmetry: Knowledge of automobiles is not homogenous among consumers5
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
Raw Data ConclusionsOur analyses do not seem to yield any distinguishable relationships
The data reveals that the initial hypotheses are not supported by the data.
Dealership frequency does not seem to impact luxury car prices
The correlation coefficients are not strong enough to support any relationship.
The differences in prices paid for a BMW 5 Series across geographic regions is not statistically significant.
| INDUSTRY BACKGROUND | | COMPETITIVE LANDSCAPE | | PRICING STRATEGIES | | RAW DATA ANALYSIS |
More granular data points and more accurate data is required to determine the actual relationships.
Questions/Comments?
Appendixhttp://www.goodcarbadcar.net/2015/01/usa-auto-sales-brand-sales-results-2014-year-end.html
http://www.edmunds.com/lexus/?mktcat=lexus-type&kw=new+lexus&mktid=ms17110224
http://www.edmunds.com/mercedes-benz/
http://clients1.ibisworld.com/reports/us/industry/default.aspx?entid=816,
https://johnson.library.cornell.edu/databases
http://subscriber.hoovers.com/H/industry360/overview.html?industryId=1910,
https://johnson.library.cornell.edu/databases
http://images.forbes.com/forbesinsights/StudyPDFs/automotive-outlook_report.pdf
http://www.statista.com/statistics/281574/size-of-the-luxury-car-market/
http://truecar.com/
http://kellybluebook.com/
http://zipwho.com/