Luxury Automobile Data Memorandum

MCS*3030 (02)

Will Sanderson – 0929390

November 27, 2017

Luxury Automobile Data Memorandum

Introduction

When an individual is considering purchasing a luxury automobile there are many factors that can influence someone to do so. Typically, there is a common misconception that a lot of people only purchase luxury automobiles to improve their status and to receive attention from others. Owning a high-end luxury car is something that is unique, meaning not everyone has one, which may be the reason that people associate owning a luxury car with status and attention. However, I believe that there are other factors that might influence someone to purchase a luxury automobile. If you are able to afford a luxury car, there are many benefits that come with it, opposed to purchasing an average priced car like a Honda or Toyota. When purchasing a luxury automobile, one could expect its performance abilities to be elite, its styling to be sleek and attractive and for it to have long lasting durability. When people buy expensive cars, it has a lot to do with wanting a car that is worth its price and goes above and beyond the capabilities of an average priced car.

Hypothesis

Through detailed consideration and some external research, it seems as if an individual would be influenced by factors such as power, styling and durability when purchasing a luxury automobile. The overall power of a luxury automobile is an important factor when an individual is choosing to purchase a car or not. If someone prioritizes power in a car and is looking for a car that can out perform other cars on the road, a luxury car is typically where someone could look. Styling is another important influencer when purchasing a luxury automobile as most look expensive, sleek and tend to have more features then the average person would need. Finally, it is expected that when you purchase an expensive car, it is going to be durable and perform its required function over a long period of time. When people want to buy a car that lasts a long time, they might look at a luxury automobile.

Analysis

The first thing analyzed was the means, the Descriptives section produced by SPSS gives us some valuable information about mean differences before determining a conclusion. For power and durability, American luxury automobiles have the highest means, this means that those two factors have the most influence for those who choose to buy an American car. Whereas, power and durability have less influencing power on those who are buying European or Japanese. For styling, European cars have the highest mean which could be interpreted as styling having more influence on people who choose to purchase a European car opposed to American and Japanese. Next, the sig. value was analyzed to determine whether a condition mean is relatively the same or if they are different. For both power and durability, the sig. value is greater than 0.05 which allows us to conclude that there is no statistically significant difference between the conditions. It could be assumed that the difference in means for durability and power is likely due to chance. For styling, the sig. value is less than 0.05 which tells us that there is a statistically significant difference between the mean number of people who were influenced by styling for all of the conditions. The mean differences in this case are likely not due to chance and are more likely to have a significant influence.