Abstract
Customers nowadays consider the driver's seat, specifically its comfort and aesthetic form, during the automobile purchase decision. As a result, much research has been recently conducted into seat comfort and the influence of the visual appearance of the seat on the perception of comfort. However, the cost of the seat remains an important contributor to overall vehicle cost, and the visual appearance of a seat may influence a customer's willingness to pay. We conducted an experiment measuring this tradeoff using hierarchical Bayesian conjoint analysis, a marketing method that elicits customer preferences and willingness-to-pay at the individual customer level. Utility models are statistically inferred for three brand segmentations using a dataset obtained through an online interactive web application. Results indicate that in a heterogeneous market, willingness-to-pay is affected by seat form and comfort rating, with particularly significant tradeoffs for the luxury automotive brand segment.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
