Erick Yao's Blog

BMW is one of the most popular car brands in the world. This German car positions in the luxury side of the industry as it sets its price above average. Indeed, the cheapest sedan costs around $40,000 and the most expensive models are over $100,000. Over the years, BMW has built a strong brand and is, today, known as a reliable and expensive car. This car company targets consumers with high income, people who like to have a special status in society, and people who like speed. With this in mind, BMW uses high quality material and closely inspect their car after manufacture in order to ensure consumer satisfaction after purchase. Although BMW is now seen as a common car in Vancouver streets, it is still considered to be a luxury car to most people compared to its direct and indirect competitors.

On the other hand, most people would consider Honda to be cheap and reliable. It is relatively fuel efficient and a lot cheaper compared to BMW as the least expensive model can be purchased at $15,000. The Japanese brand targets low income consumer who want to save on gas and only need a car for its transportation purpose. Because of its reliability, general consumers would rank it as a cheap and good quality car.

Hyundai has long been an inexpensive and low quality car in the eyes of consumers. Because of its reputation, people would hesitate when buying a Hyundai due to its safety issues and lack of options. It is, however, trying to position itself as a high quality and cheap brand over the past years by trying to integrate options and improving the look of its cars in general.

Aston Martin or Lamborghini are companies that are profit oriented. Although I am uncertain about the  manufacturing cost, I am assuming that they earn a large margin on each car sold. The price of those cars can range anywhere from $200,000 to $400,000. Because of such high prices, it is evident that not everyone can afford it. Those companies rely on this rarity to create value which is directly associated with its price and product.

Car companies try to differentiate themselves from competitors by appealing to different consumers. People with higher income would generally prefer a “better” car while lower income customers would want a cheaper car that possesses minimum safety standards. Additionally, some companies have developed into the “green” market and developed hybrids while others ignored the consequences of pollution in order to preserve speed. Ironically, the most expensive cars are not those that provide greater benefits to the environment but those that pollute the most. In today’s society, where everyone thinks of sustainability, I believe that consumers will soon prioritize eco-friendly cars over fast cars.