Friday, August 25, 2006

What's an ego purchase?

I'm sure that somewhere at one time all the automakers have tried to figure out and calculate what percentages of there sales are strictly done on appeal and ego and what percentage of their sales are done out of necessity. From my perspective almost 90 percent of Car sales

are really done out of ego or desire than they are ever are done out of need, after all, a twenty thousand dollar Honda Accord will perform

90 percent of the capability that a BMW 745i can do, what the Accord can't do is appeal to the ego of somebody with the means to have the BMW.

This argument could probably apply to the majority of products for sale. Automakers go to great lengths to instill desire in an individual that can afford a high end luxury car, or a low end economy car.

Car Builders sold millions of large and gas thirsty SUV's by creating the image and desire in people that they could go anywhere, on road, or off, drive thru raging snow storms in total safety and comfort.

In the real world, a good car with a low center of gravity and good road manners is a much safer bet than a heavy and bulky SUV, but image is everything and logic rarely applies in car sales, and with in a short time, what was once a market strictly for businesses exploded into a lucrative market with high sales margins.

But thanks to high fuel prices those days are over, car-truck hybrids such as the Volvo X70 and Nissan Murrano are gaining in popularity.

Minivans, that at one point fell out of favor  with soccer moms are making a comeback thanks to  sportier designs like the Honda Odyssey and Nissan Quest, combine this with safe and somewhat sporty handling, the argument can be made that Minivans are worth owning again.

The world today seems to resemble the oil shocked seventies, but  car companies  have such a great collection of emerging technologies that help with much needed fuel efficiencies, It gives me confidence that even more exciting times are down the road.

The ego will still rule when it comes to car sales, but thanks to unstable and rising fuel prices, practicality and common sense seem to be what's considered desirable these days.

 

J.

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