Analysis of car type preferences among students based on seemingly unrelated regression

Abstract

Vehicle type purchase intentions are interesting from a marketing point of view, because car manufacturers are competing to attract potential buyers. Furthermore, from the point of view of transport planners as well as the government, there are environmental concerns. This study focused on students' intention to purchase different types of vehicles. The study obtained a sample of 1,229 students from seven countries, to understand cultural differences in preferences. The dependent variables were intention to buy cars in different categories, including hybrid and electric cars. The aim was to explain intentions with three categories of explanatory variables: Psychological aspects, sociodemographics, and site-specific dummy variables. To account for correlation between the dependent variables, the analysis used seemingly unrelated regression. The study found that attitudinal factors are significant, particularly for the intention to buy more environmentally friendly types of vehicles; the paper discusses policy implications. The study observed the importance of the symbolic-affective value of a car in explaining car type preferences, as well as the importance of awareness of the negative effects cars might have on the environment and society. It is suggested that these findings can be used to promote more environmentally friendly cars.