Jong Hoon Lee
Marketing
Dr. Asuquo Onda
November 20, 2014
Case Study 4

1. Discuss environmental factors related to population that are changing the way certain people approach car buying and are thus creating new market segments.

Consumers expect businesses to address environmental influence on how products and services are delivered, and to work with the natural environment instead of slowly destroying it. Also people Consumer behavior is deeply influenced by factors, such as buyer’s culture, subculture and social class and age. Each generation will search for, select and purchase a product or service for use and disposal based on personal wants and needs. Each of these groups is a different segment of the market. For example a business wants to cater to those between the ages of 17-30 they do market research to find what type of vehicle appeals to this particular group.

2. Describe the values held by this emerging group of drivers that incline them toward car sharing programs.

The drivers who use the car sharing are attracted to the program because of it is affordable. The program can offer access to a car without the stress of car ownership hassles such as routine maintenance and auto insurance, nor will they risk losing their car if they cannot afford to pay it. It is also convenient for low-income households as it enables us they money they would usually use for a car payment toward other household or personal expenses. Â Car-sharing services also cater to certain demographics because they provide the practical aspects of car ownership. The increasing business of car-sharing has already begun to encroach on the market for rental cars, and companies such as Hertz and Enterprise have developed their own car-sharing programs to supplement their rental businesses.

3. How are automakers using car-sharing programs to cater to customers’ component lifestyles?

Automakers are using car-sharing programs to simply offer a stress free alternative to car ownership. They enable drivers to use a car without the financial burdens. They also provide flexibility to the customer based the client’s need at the time. For those who cannot afford an automobile, Car-sharing service can offer flexibility of usage and also allows opportunities for customers to avoid late return fees by extending reservations, as when the driver might be stuck in a traffic jam and not be able to get the vehicle back on time. Unlike carpooling, car sharing gives me the independence to drive wherever and whenever I want, at a tiny fraction of the cost of owning a car. However like any other program car-sharing have disadvantages. The program is an affordable and reliable service, but that is part of the reason why it has many disadvantages such as the dealership running out of stock and competition from other companies who have initiated the program. The lower cost of the service could cause people to stop using their own vehicles and use car sharing instead. The car share companies are not growing fast enough to accommodate the sudden interest in the service could also prove to be a disadvantage. This options also allow clients to reserve vehicles unfortunately some people reserve them knowing they may not need it. This means that vehicles remain locked to people who genuinely need the services.