Re: Porsche 911 vs all the rest of the pretenders
This should be my last post in this thread. I feel that the argument has increasingly thrived on semantics and syntax, and has no bearing whatsoever on practicality.
Perhaps I will show you a research paper written on new and used car buyers:
http://www.martinparedes.org/jmp-gmparedes.pdf
This should be my last post in this thread. I feel that the argument has increasingly thrived on semantics and syntax, and has no bearing whatsoever on practicality.
I'd think we are just walking in circles. Like hcsiow, I have repeatedly said that most of us make our decisions based on a matrix in our mind, and that matrix varies from consumer to consumer. What is certain is that the matrix can never comprise of one or two variables. It will be more of the parameters if the item is considered a big ticket item. In other words, for a $100 tee shirt or a $4000 Vertu phone, yes, there could be only a single parameter on a consumer's mental matrix that says, "yes, I wanna buy this SOLELY to impress my friends. (I might not even like it, but they will think I am cool.)" My point is that for a big ticket item like cars (size connotation of BIG is relative, but in relation to disposable income probably the best comparison), there are no pure second handers. Pure second handers, in your definition, means consumers who thrive 100% on brand ostentation and ZERO product merit. In their matrix, there is only one variable - brand ostentation. This, I beg to differ.PerverTT said:kenntona – good to see that both you and centurion seem to agree on ‘second handers’ and what I would call ‘rationalists’ as pure types. I suspect most people on this forum (myself included) would fall somewhere in between. You’ve raised a good point that most car buyers base their decisions on multiple criteria. But I would have to disagree with your statement that a study of those who mainly buy to impress or to show off would be an exercise in statistical improbability. Vendors of luxury goods, BMW AG included, thrive on vanity!
It is very easy to rationalise why one has decided to buy an up-market car like a Porsche or a BMW. People will justify their purchase decisions by quoting reasons like excellent German engineering, better than any Japanese car, 0 – 100 in 4.8 seconds, etc etc. These are their ostensible reasons. What they are less likely to say are things like ‘I want to show people how successful I am.’ Or ‘This will look much better in the golf club car park.’ Or ‘I can’t stand the fact that my in-law has one and I don’t.’ Or ‘I want women / men to find me more attractive.’
The latter reasons are not usually mentioned because they are seen as less virtuous. But this does not mean that these reasons are any less valid. In fact, companies like BMW AG actively play on ‘second hander’ qualities like snobbishness. ‘Join us,’ is the invitational caption on a BMW marketing brochure that was left in my car after it was serviced at a dealer a few years ago.
Perhaps someone (not a technological Neanderthal like myself) could start a sticky one day asking forum members why they bought their BMWs. There should obviously be check boxes for things like ‘sheer driving pleasure’ or ‘ultimate driving machine.’ My perverse sense of humour hopes to also see check boxes for other things like ‘penis augmentation’ and ‘charisma transplant.’
Note: Apologies for going off-topic, but I figured that the preceding discussion had gone so far away from the relative merits of driving a Porkie that one more OT post wouldn’t matter.
Perhaps I will show you a research paper written on new and used car buyers:
http://www.martinparedes.org/jmp-gmparedes.pdf
The author's premise:
"First, cars are durable goods: you usually buy a car with the intention of keeping for a long period of time; further, you can buy a used or a new car, since it is an industry with a well-developed secondary market. But cars are also experience goods: you cannot ascertain every characteristic of the car before buying the car −as far as your utility function is concerned−. You can learn a lot about cars before buying them, but you still learn a lot after driving them; in particular, you learn whether they are a good match or a bad match for you."
This ties in with the multi-variable matrix model in the car consumer behaviour. Experience forms part of the utility derivative, and part of the purchasing matrix. Not just branding, or blind brand faith.
He further wrote:
"This paper proposes that, if we consider vehicles as experience goods, consumers may switch brands when the current product did not provide a good match. To ascertain whether experience has an effect on customer loyalty, I compare it with two indicators that measure consumers’ satisfaction with their new vehicles during the first three years after purchase.The Customer Satisfaction Index (CSI) evaluates satisfaction with dealer maintenance and repair services, while the Automotive Performance, Execution and Layout index (APEAL) quantifies owners’ satisfaction with the design, content, layout and performance of their new vehicles. Table 2 shows there is in fact a significant positive brand correlation between loyalty and both satisfaction indices. Simply put, the higher the satisfaction of a consumer with her car − which would reflect whether she has had a good experience with her previous car−, the larger the probability that the customer will repeat the purchase of the same brand."
This has practical bearing in all of us, perhaps more so on car enthusiasts than on car purists. Repetitive purchase of a brand is a function of experience (not a function of brand faith). It is the positive experience that reinforces such brand loyalty, and that experience is a composite of CSI and APEAL - a multi-variable matrix.
Okay, what about new car owners who has no experience?
To him: The effect of experience on the price of new cars is more complex, but we can identify three causes for the difference.............
(a) Shift of the marginal consumer. Since in the equilibrium with experience more consumers have access to a new car, the marginal consumer is lower
(b) Resale value effect. The presence of experience increases the resale value of the new car..... This in turn increases the willingness to pay of new car buyers.
(c) Choice effect...... In words, new car buyers also have the chance of switching brands after a bad experience, in a similar way than for used car buyers.
Effects (b) and (c) push up the price of new cars, while effect (a) pushes it down. A priori, we cannot determine which effect dominates. However, when the consumers’ valuation of quality is uniformly distributed, it can be shown that effects (b) and (c) dominate, in which case the price of new cars is higher with experience."
None of the three effects are purely brand driven. I rest my case.
centurion said:Of course, if he does hate me, he hates me not because of me, but himself, so I take no credit here and I take nothing personally. And I'm not flattering myself either - look at the threads recently posted by toto, he thinks of me all the time, like I'm his obsession. LOL, just interesting as hell.
centurion said:Saify's innocently confused. OLL - not the same kettle of fish. Arsenal, also totally different kettle of fish.
This forum is similar to all other forums, there are love-hate relationships. Get use to these "kettles of fishes." In real life, nothing has really happened. All will meet at Kallang and talk cock after all the bantering and flaming. Getting out of cyber space and meet them in real life might change your perspectives. Get moving.