An exploration of factors influencing car purchasing decisions

Abstract

Purpose

The automobile industry is a key contributor to the GDP in most developed countries. Whilst studies have mainly focused on new car markets, this research aims to investigate how consumers' socio-demographic profile impacts on the decision to buy used or new cars across different automobile segments.

Design/methodology/approach

The study focuses on a major car market in Europe, France. The data were obtained from the French Institute of Statistics (INSEE), consisting of a representative sample of 1,967 French households who bought a new or used car within a year of this study. The paper is based on random utility theory and applies multinomial logit modeling.

Findings

The findings suggest that economic, individual, household characteristics impact on car segment choice, as well as the decision of whether to buy a new or a used car.

Originality/value

This is one of the few studies investigating the demand for new and used cars in conjunction across car segments in a European context. It provides important insights into consumer choice in a mature market.

Citation

Prieto, M. and Caemmerer, B. (2013), "An exploration of factors influencing car purchasing decisions", International Journal of Retail & Distribution Management, Vol. 41 No. 10, pp. 738-764. https://doi.org/10.1108/IJRDM-02-2012-0017