BLOG POST #4
RESEARCH
How do consumers choose between different types of cars on the market with so many choices? The economic principal I am studying is “because of scarcity people choose, all choices have an opportunity cost”. When consumers decide to buy a new car, they have to choose between different types of cars, SUVs, sedans, or trucks. Because of scarcity, the majority of people who buy cars has to pick the one type that benefits them the most, and the opportunity cost of their choice is the other types of cars they were choosing between.
Edmunds, a leading automotive news outlet, explains that when consumers are choosing between different body styles there are alot of things to think about. First being if the consumer is looking for a “spirited drive on the weekends” or someone who wants a practical daily driver. After moving past that step you need to think whether you need a car that has to carry many passenger or require towing? If so an SUV or truck is the recommended option because of the vast versatility of those cars plus the benefit that most of them have all wheel drive. Other things that Edmunds recommends while choosing between body styles is safety features, the available garage size that the car would have to fit into.
Future research question: How do people choose between methods of purchasing their car?
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