Toyota Camry Hybrid Price Sensitivity Analysis
Market context analysis:
1. Ad of a product priced high in its category: Toyota Camry Hybrid
2. Category: Family/mid-sized cars.
3. Prices:
2007 Toyota Camry Hybrid: $26,200
Toyota Camry (non-hybrid): $18,270 - $27,820 avg: $23,045
4. Main competition in US (according to Wikipedia.com, prices according to Edmunds.com):
Hyundai Sonata: $17,195 - $18,445 avg: $17,820
Mazda 6: $18,930 - $27,800 avg: $23,365
Saturn Aura: $19,945 - $23,945 avg: $21,945
Nissan Altima: $17,950 - $28,400 avg: $23,175
Ford Fusion: $17,295 - $22,730 avg: $20,012.5
Chevy Malibu: $17,155 - $23,410 avg: $20,282.5
Mitsubishi Galant: $19,899 - $26,999 avg: $23,449
Total average for the category: $21,636
Price sensitivity factors analysis
1. Unique value effect
There main value emphasized throughout this ad is the fact that it's a hybrid car, with all advantages thereof: cleaner exhaust, contributing to personal (though not stated clearly) and national economy. Although Toyota is not the only hybrid car manufactured (there are others by Honda and Ford), this ad doesn't mention it and presents it as a unique value inherent to Toyota Camry. The fact that a hybrid car is not a widespread phenomenon boosts the influence of this factor. We rank its influence as high (decreasing PS).
2. Substitute awareness effect
It's difficult to compare car prices and benefits just when reading this add, though most of the information is readily available for those interested, on the internet, for example. Because of this we rank the influence as low (increasing PS).
3. Difficult comparison effect
Although it might seem otherwise, comparing value for money of different cars is not trivial at best. Although there are several major factors used in comparison (such as engine capacity, horsepower, physical size), there are plenty of secondary characteristics (ranging from turning circle and engine torque to the model of the internal GPS device and
1. Ad of a product priced high in its category: Toyota Camry Hybrid
2. Category: Family/mid-sized cars.
3. Prices:
2007 Toyota Camry Hybrid: $26,200
Toyota Camry (non-hybrid): $18,270 - $27,820 avg: $23,045
4. Main competition in US (according to Wikipedia.com, prices according to Edmunds.com):
Hyundai Sonata: $17,195 - $18,445 avg: $17,820
Mazda 6: $18,930 - $27,800 avg: $23,365
Saturn Aura: $19,945 - $23,945 avg: $21,945
Nissan Altima: $17,950 - $28,400 avg: $23,175
Ford Fusion: $17,295 - $22,730 avg: $20,012.5
Chevy Malibu: $17,155 - $23,410 avg: $20,282.5
Mitsubishi Galant: $19,899 - $26,999 avg: $23,449
Total average for the category: $21,636
Price sensitivity factors analysis
1. Unique value effect
There main value emphasized throughout this ad is the fact that it's a hybrid car, with all advantages thereof: cleaner exhaust, contributing to personal (though not stated clearly) and national economy. Although Toyota is not the only hybrid car manufactured (there are others by Honda and Ford), this ad doesn't mention it and presents it as a unique value inherent to Toyota Camry. The fact that a hybrid car is not a widespread phenomenon boosts the influence of this factor. We rank its influence as high (decreasing PS).
2. Substitute awareness effect
It's difficult to compare car prices and benefits just when reading this add, though most of the information is readily available for those interested, on the internet, for example. Because of this we rank the influence as low (increasing PS).
3. Difficult comparison effect
Although it might seem otherwise, comparing value for money of different cars is not trivial at best. Although there are several major factors used in comparison (such as engine capacity, horsepower, physical size), there are plenty of secondary characteristics (ranging from turning circle and engine torque to the model of the internal GPS device and