Case Study: Daimler/BMW

Q1

In the changing world, people have changed the view they have about owning a car as a status symbol. In the current day, it is more about convenience with is associated with it rather than a symbol of being rich. With this convenience, development car sharing has allowed individuals to share cars without spending a huge amount on it. Convenience comes with flexibility which is rented as per the needs and wants of the user (Lamb, Hair & McDaniel, 2013). A significant amount is saved in relation to maintenance cost which would result in inconvenience. Social and cultural factors have also brought a change as the basic need of the people has continued to change. Mobility is a clear indication that there are progress and development thus creating a new market. These factors have changed the way people approach a car thus creating a new market segment (Lamb, Hair & McDaniel, 2013).

Q2

The car sharing program has brought values to drivers as they form the larger group in the car market. They are well educated, energetic and well off are particularly concerned with pollution as well as sustainability in which the car sharing target market is. Major cities in the world have become crowded as there is a high reliance on private vehicles. As a result parking lots and congestions are a nightmare in these cities which in return cause massive air pollution (Lamb, Hair & McDaniel, 2013).

Q3 

Automakers have developed components that cater to the consumer’s lifestyle through the car sharing programs such as flexibility which is a driving force in the car market segment. Users can travel at their own time conveniently at affordable prices. The start-stop technology has been widely used by the automakers as it has increased the suitability of urban driving (Lamb, Hair & McDaniel, 2013).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reference

Lamb, C. W., Hair, J. F., & McDaniel, C. (2013). Marketing. Mason, OH: South-Western/Cengage Learning.