What brand of car you drive may influence the car choices of your kids too, says a study.
Children are 39 per cent more likely to buy a particular brand of automobile if their parents bought that brand, the findings showed. “In theory, these findings could change the way automakers price and market their cars,” said study co-author Soren Anderson from Michigan State University in the US.
If young buyers approach dealers with prior loyalty to a brand, thanks to their parents, manufacturers might consider upping prices of entry-level vehicles. Conversely, more incentives could be offered on sport utility vehicles and other high-end vehicles to snag older customers — and, eventually, their children.
The researchers studied auto ownership of more than 4,300 young adults matched to nearly 2,600 parents. Survey data from the families was collected every two years between 1999 and 2011. Preferences were broken down into auto brands including General Motors, Ford, Chrysler, Toyota and Honda.
Parents and children tend to share characteristics — such as making similar amounts of money and living in the same area — and this can influence what they buy, the researchers pointed out.
“Is this really about the cars or could it be other factors, such as parents and children tending to be more similar to each other than other people?” Anderson said.
“We’re pretty sure it has something to do with the cars themselves,” he stressed.
The study is forthcoming in the Journal of Industrial Economics.
Published in The Express Tribune, October 9th, 2014.
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