Used Car Markets Of Foreign Countries

Author : Johnny Ch LOK
Publisher :
ISBN 13 :
Total Pages : 262 pages
Book Rating : 4.6/5 (48 download)

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Download or read book Ecommerce Raises Second Hand Product Sale Chance written by Johnny Ch LOK and published by . This book was released on 2020-05-23 with total page 262 pages. Available in PDF, EPUB and Kindle. Book excerpt: Now for the cars market, when there is no used cars market, everyone is indeed forced to buy new cars which raises demand and consequently price. However, you are assuming that cars are a necessity and that the demand transfers 100% from used cars to new cars. Some people maybe only purchasing cars from used cars market because they see the value in the lower price. When there is no longer a used car market, if the price of the new car remains the same, then people would deem that price to be too expensive since they are unable to resell it later on and ultimately choose not to buy at all or opt for alternatives. This actually reduces demand. To capture the market of such consumers, the car companies would ultimately reduce prices to get the market share. This is from the Bertrand competition model point of view.In actual fact, Bertrand competition are not seen and huge companies work with each other more often then they engage in price wars. Now consider the Cournot competition model where inverse demand for the good is given as P = a - bQ (i.e. law of demand - when the price goes up, demand must go down ceteris paribus.) Since there is no used cars market, then demand for new cars market has gone up, the car companies produce more output (Q has gone up), ceteris paribus, P will come down. Just to reiterate, if there is a used cars market, then total output (Q) would be lower, therefore P will be higher.Note that both the Bertrand and Cournot model dictates that prices will go down without a used cars market, just that the Cournot model reflects the actual situation clearer.⦁Technology influences the car user demand change for the Auto IndustryThe growth of organized car rental industry is continuously growing with support of technology. The car customers in the present era are using mobile apps to book a cab at anytime and from any place in urban areas. The pricing strategy of cab operators had been positively influencing customers to book a cab instead of traditional mode of transportation like autos and local buses etc. Like most of the industries the car rental industry had underwent lot of transformation with internet technology. The consumers are able to access book cabs at competitive prices because of tough competition among the organized cab operators. In this regard the present paper briefs about the behavior of consumers while booking cabs. The variables like coupon redemption, innovativeness and price consciousness. 1. Quality > AffordabilityQuality can, of course, mean different things to different people and different markets. It's important for auto brands to dig further into this and find out what aspects (security, aesthetics, reliability) are most important for their target audience. For example,'Innovative products or services' in auto brands than those in other countries. Brands must do their research to ensure the product they're producing meets the quality standards in the regions and communities they're targeting. There's more to a car than getting from A to B.2. Sustainability and renewablesSustainability was not particularly popular , although many people globally named renewable energy as one of the biggest transformative technologies of the next year. This presents an interesting contradiction - while many think renewable energy will change the world in the next year, few of us are prioritizing sustainability when it comes to choosing auto brands. This could be because vehicles that don't harm the environment are very much still in the minority, and could be seen as too expensive or not practically viable for consumers. As climate change protests grow in number and size, it seems like the time is now for auto brands to move on this point.