An Analysis of Automobiles and How Their Value Is Perceived

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A more relevant study was conducted by Grosso, J.-L. E., Grosso, S. S., Smith, T. L., & Grosso, V. J. (2015). The authors studied how automobiles were portrayed in Soviet Russian movies, exposing the political and economical messages that were conceived. The article also shows how cultural ideas tend to change very slowly, and being aware of the speed of the change is of great importance to businesses marketing their product in modern Russia. This article showed how marketing strategies in Soviet Russia had multiple aspects in common with political propaganda. Once again the primary weakness of this article was that the setting of the study wasn't optimal for modern day analysis. Despite this, the article exposed a relatively popular method of modern marketing; vehicle endorsements in movies.

Success factors

A fundamental question to ask when analyzing luxury cars is the following : what are the features of a luxury car which differentiate it from regular cars, and which provoke customers to spend the extra money on it? This is no simple question to answer. Krebs (1999) conducted a weekend long test drive on the 2000 Mercedes S-class, in order to find out what makes this luxury vehicle so unique. The author evaluates multiple aspects of the driving experience, such a safety, driving performance, technological gadgetry as well as different options, in order to come to the conclusion that each of the aforementioned aspects is greatly improved when compared to a frugal class car. The extensive use of motion sensors throughout the car makes the driving experience much less challenging, and at the same time, much more safe. These aspects, among others, have pushed the S-class sales above that of the BMW 7 series and the Audi A8. The primary weakness of this article was that it was done in a car reviewer style, meaning it was designed to be informative for possible buyers.

A more generalized analysis of success factors for luxury brands was conducted by Nadine (2015). Instead of analyzing the features of a luxury car which contribute its success, this study looked at the features of an automotive brand which contribute to their success. The results of the study support a change in the understanding and usage of premium automobiles, as well as the endurance of automobiles as powerful symbols in the future. Through the use of expert interviews and focus groups, the results demonstrated that "quality, comfort, and environmentally friendliness have become major factors in the car purchase decision of younger generations today" (Nadine, 2015). Compared to the previous articles, the setting in which this research was conducted is much more relevant. Both articles coincide in a few success factors, such as quality and comfort. There have also been case studies which also support a change in marketing strategies for luxury brands. Environmentally friendliness is shown to be relevant again, "Being pressured by different stakeholders to become greener, luxury car manufacturers carry significant opportunities for environmental improvement given the nature of their manufacturing processes and products." (Nunes et al., 2016). A contradiction remains valid, as the leather used for luxury car seats is not qualified as environmentally friendly.

The Relation between Cars and Status

Cars have always been, to car enthusiasts, to a certain extent, representative of the owner's wealth. An individual who drives a luxury car made the decision to spend the great amount of money for specific reasons. Nadine Adams (2015) explored some of those reasons. One of the main findings of this research was " the car is increasingly becoming a lifestyle object, an image building factor, and a visible statement."(Nadine 2015). This indicates that not only do the brands create an image to appeal to potential buyers, but the owner's themselves use the luxury cars to create the same image of status for themselves.

Another interesting finding of this study, was on the topic of ownership. Nadine (2015) found that when the objective was generating a feeling of status, cars do not have to be the property of the driver. This signifies that ownership and the experience of status have become detached.

Furthermore, status has multiple implications in different situations. A study by Solomon, H., & Herman, L. (1977), demonstrated that pro-social behavior is more likely to occur when driving a luxury car. The author used a sample of 60 men and woman who were stranded by the side of the road asking for assistance. The results were very significant, showing that a high status victim received help 53% of the time, while the lower status counterpart only received aide 23% of the time. The findings of this study add to the one of Nadine (2015), demonstrating that being the driver of a high status car benefits not only the self-image of the driver, but also the chances of receiving road side assistance.

Summary

Considering success factors, the relationship between cars and status as well as marketing strategies, it is clear that the target audience is not only one that enjoys the appeal of high status, but it is also one that is evolving with time. The appeal stems from the image of wealth which is demonstrated by the purchase of a luxury vehicle. This appeal has been proven to have positive effects on the owner's personal satisfaction. It also demonstrates an increase in the likelihood of pro-social behavior. Considering all of the effects that arise from driving a luxury car, which is expensive, it is important to know whether a typical car observer can tell how expensive the given car actually is.

Bibliography

Doss, C. R., Deere, C. D., Oduro, A. D., & Swaminathan, H. (2014). The Gender Asset and Wealth Gaps. Development, 57(3/4), 400-409.

Grosso, J.-L. E., Grosso, S. S., Smith, T. L., & Grosso, V. J. (2015). Consumerism and the portrayal of cars in Russian media: marketing implications. International Journal of Business, Marketing, and Decision Sciences, 8(1), 32+.

Krebs, Michelle. "Mercedes S-class: lots of luxury, lots of great new gadgets." Medical Economics 12 July 1999: 172+.

Law, T. H., Hamid, H., & Goh, C. N. (2015). The motorcycle to passenger car ownership ratio and economic growth: A cross-country analysis. Journal Of Transport Geography, 46122-128.

Nunes, B., Bennett, D., & Shaw, D. (2016). Green operations strategy of a luxury car manufacturer. Technology Analysis & Strategic Management, 28(1), 24-39.

Okulicz-Kozaryn,