Car price index survey

1.1 Connotation car price index

Automobile Price Index (Price Index) is a market analysis tool, his application there are four assumptions:

    First, the car as luxury goods, emotional value is very important, as shown in Figure 1, the brand is an important consideration in the consumer car buying decisions, for different brands such as "public", "Buick", "Chery" the minds of consumers will consider the appropriate premium brand. For example, for the same displacement, with the equipment of a vehicle, the suspension "public" LOGO, consumers are willing to bid for 150,000 yuan, but if replaced by "Chery" in LOGO, consumers' willingness to bid will be reduced to 120,000 yuan.

    Second, the perceived value of equipment, there is a level difference, but there is no brand differentiation. With models to enhance the level of consumer perceived value of the car is also equipped with a corresponding increase. Namely: C-Class cars Audi A6 user's perception of the value of the GPS with A-level speed Teng user's perception of the value of GPS is certainly different. But at the same level vehicle users, such as A-level users and Corolla speed soar user's perception of the value of GPS, there may be differences, but the differences are not very significant, and therefore in the calculations, we assume that there is no difference.

    Third, consumers are more characteristic of the product is rational. Differences between the models, in addition to brand differentiation, there are differences in equipment - including the presence or absence of differences and performance differences. Consumers can rationally perceived value by the equipment, carry out changes in terms of equipment. To compare different models of pricing is reasonable. This is also the basis for comparison between models - models of different brands can increase or decrease the value of the equipment and adjust to no difference in the status of equipment. For example suteng 1.6MT competing products and core guidance Corolla 1.6MT prices were ¥ 138,800.0, ¥ 132,800.0. In addition to brand differences, Sagitar 1.6MT 1.6MT more than the Corolla is equipped with "power outside mirrors with heating function," "mirrors with turn signal", "insulating glass", "ESP / VDC electronic stability program" and so on , but the lack of the "alloy wheels", "6 speakers" and other equipment, and engine power, fuel consumption and other indicators are also one hundred kilometers less than the Corolla. We assume that consumers will rationally calculated based on these differences in equipment price difference, so as to adjust the vehicle price difference.

    Fourth, product comparisons, ignore the impact of differences in appearance. This is because, first, to shape consumer preferences are purely emotional awareness, is a benevolent see benevolence and the wise see wisdom of judgment, there is no rational measure. Secondly, each brand has a specific shape style, such as Honda models generally have the appearance of fashion, young, sharp style, places classic Volkswagen models, simple features. Consumer preference for appearance, it has been integrated into the brand value perception. And our choice of competing products, it has been considered form factor, the appearance of similar competing products, into the core of competitive products range. Therefore, the price index on goods computing system, assuming the shape does not have an impact on consumer choice.

    Therefore, the price index in essence, is a hypothesis based on these four areas under the conditions, prices, equipment, brands, consumers perceive the value of the four key indicators of highly integrated market analysis tools. By price index dynamic tracking, on the competitiveness of their products evaluated to develop appropriate competitive strategies.

     Background 1.2 car price index produced in the market analysis, information on numerous aspects of both the guide price and the terminal transaction price changes daily, there are equipment adjustment, new product information on car programs, consumer preferences also constantly changing. Faced with a variety of channels, all aspects of information, how to make more effective dynamic tracking? How to accurately grasp the competitiveness of their products change? It is a thorny issue for each car manufacturer market analysts have to face every day

    I, as Volkswagen joint venture - FAW - Volkswagen employees at Volkswagen headquarters in the learning process, the contact of this analysis tool. Volkswagen car prices are company-specific analysis tools to track changes in various regions of the global market. Through careful study and apply it to their daily work. It found that price price index not only can accurately track the price changes, new car pricing, new cars and equipment definition, price adjustments and other auto automobile marketing efforts can also provide reliable and effective guidance, enriched analysis tools automobile marketing.

1.3 Calculation Method Calculation  car price index price index covers four key processes (Figure 2)


The first step, first determine the brand price index benchmark

    That is their own brand of competing products relatively normal and reasonable brand premium percentage. Here, the brand refers to the concept of big brands, such as "public", "Toyota", "Nissan", for "Sagitar", "Corolla" herein is called "model." This is the most critical indicators of the price index system, all calculated average price index system as a benchmark.

    Establishment of the standard brand price index is the result of three factors are generally considered: one based on the value of the car brand perception of consumers, namely whether consumers will feel this brand is relatively more upscale / low brand? As in the minds of consumers, "the public" more "Buick" brand premium number. Of course, the vast China region, in practice, in different regions, different brand value perception will change. For example, in Guangdong, Toyota has a strong market position in Guangdong consumer choice in the car, significantly prefer Japanese or the Toyota brand, market research also shows that Guangdong's consumers to consider Toyota brand value is higher than the Volkswagen brand. But on the contrary in Beijing, the situation is reversed.

    A second aspect of the situation based on the share of the national market, is the market leader or market challengers? As a market leader, the general price index will own benchmark specified above competing products because the market leader with more brand appeal, more consumer brand leaders will pay more premium appeal .

    The third aspect is to combine the company's own development strategy is to maximize the pursuit of market share, or to maximize profits, the pursuit of market share in the enterprise, it will be given its own price index benchmark average lower than competing products, in order to price to win.

    Brand price index benchmark is a business strategy level issues, the future market for car companies have a decisive role. Therefore, this decision-making power indicator is often determined by the Board or administered will, and once decided, in the short term will not change, will guide the direction of the enterprise market.

The second step, determine the model of core competing products.

    Core competing products is the most direct competition with the product, intense competing products models, the number should be less than equal to three, the price index system to track and compare benchmark. Confirm core competing products, often through the following four steps:

    First, list all models the same level. Because at the same level, all models are with the product model, the occurrence of potential competition, thereby constituting generalized competing products.

    Secondly, we screened the market mainstream models, the market is generally strong brand, from the share rankings, should Top10 models.

    Then, according to the model design and market performance, with a two-dimensional matrix further screening, shown in Figure 3. Because the car's design style is closely related to market positioning, a sporty style model, necessarily correspond favorite sport young user groups. Necessarily mean a similar design style, overlapping target user groups.

    Finally, according to the degree of approximation between the price of competing products with a determined final core competing products. Because the car as consumer staples, consumer behavior must have budget constraints, potential customers will be established within the framework of the budget, the price of similar models were selected. Similar to the price band, there must be intense, direct competition.

    One sentence to sum up the core of competing products and the product is the same level, a similar design style, with approximate prices, the strong performance of competing products market models.

The third step, market research user equipment perceived value.

Principle research equipment is: consumers can clearly perceive the concrete value of common equipment, generally 40 to 50 or so.

    On the level of research models, in accordance with the basic principles of AOO, AO, A, B, C, D six-level users to classify, the manufacturers can be reduced according to their product line to save research costs.

    Each level of research models are not necessarily the product's core competing products, but it should be all market segments of mainstream models.

    Due to the need to explain the purpose of the individual user equipment - to enable the user to this equipment's value depth thinking, it is recommended that the research methods of sentinel face to face interviews, make interviews in a friendly and peaceful environment, the time will be about 40 minute.

    In the survey the city of choice, should cover China's main administrative territory, in order to avoid sweeping since the region caused by differences in perception.

    Since the ultimate need to output one for the country's uniform and equipment perceived value data on survey data processing method is particularly important. User data with models to the arithmetic average of the calculation; user data with the level of different models, we recommend using the arithmetic weighted approach to car sales data as weights; data for each region, also recommended sales data weighted way correction adjustment.

The fourth step is to calculate the price difference unequipped

    Between the goods and core competing products, despite similar price, the target user group similar products similar, but still there are some differences specific configuration. This part of the work, based on the configuration of the product as a reference configuration of competing products, adjusted in accordance with the perceived value of the equipment. See Figure 4.

    If the goods are equipped with ESP (perceived value of 2500 yuan), while competing products have not, then we believe this product is more expensive than competing products, 2,500 yuan is reasonable, the user is also able to accept. No differences in equipment prices increased need for competing products on the basis of the current price of 2,500 yuan.

    If the product does not leather seats (perceived value of 3000 yuan), while competing products as the standard, then we believe this product than competing products low 3,000 yuan is reasonable. No differences in equipment prices need to reduce the current price of competing products on the basis of 2500 yuan.

    Sometimes, the situation will often encounter equipment performance differences, such are the 1.6L engine, but the power consumption indicators and different indicators; are equipped with central armrest, but different functions. If the difference can be quantified, such as power, fuel consumption, etc., will be adjusted by the formula. For example, every power user perceived value is 350 yuan. If the difference is difficult to quantify, such as more functionality or more sophisticated forms, which can only be adjusted by the experience.

No equipment will eventually price differences based on the output of the product, or the same level of equipment called the price!

The fifth step, the output price index

    No equipment based on the calculated price difference, the first of core competing products were arithmetically averaged to give an average price difference unequipped core competing products. The goods vehicle price of competing products and core equipment price differences mean percentage ratio, that is, the product model price index. See Figure 5

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