Are Subaru’s customers price sensitive?
I am in agreement with Joshua’s on whether the Outback’s customers are price sensitive. As he mentioned Subaru customers are not as picky as owners of other automobile makers. The target customer profile for the Outback or Subaru in general are financially stable and upscale buyers that were not impacted by the recession. However, as Joshua indicated they are in fact a frugal bunch who seeks less car than they can afford. Price sensitivity is considered to be very minimal when it comes to the Outback’s target customers. Factors leading to less price sensitivity in regards to the Outback include no substitutions (Kotler, Keller 2012 p. 390). There are no outdoor rugged all-wheel-drive wagons out on the automobile market. Sure there are tons of automobiles out there and tough competition but this is what makes the Subaru Outback distinctive therefore creating less price conscious customers.
Another factor is that they are slow to change their buying habits (Kotler, Keller 2012 p. 391). Subaru’s current customers love their vehicles and therefore are repeat buyers of the brand. Subaru’s marketing campaign has helped tremendously change the price sensitivity and emotions in customers. They have been focusing on what creates love between the owner and the automobile, they play up fun, the adventure you can have in a Subaru (Green, Ohnsman 2010). Current customers are hooked and part of the Subaru family and are very loyal to the brand, therefore, price is not considered a factor when purchasing a car that they love. As Joshua indicated Subaru customers are not purchasing things but experiences. “Loyalty can help you do that, and Subaru has leveraged its existing customers, who identify more with their cars than perhaps is healthy (Saporito, 2009).” Subaru customers are more likely to recommend the brand than any