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, as 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 paper focuses on students’ intention for purchasing different types of vehicles. We obtain a sample of 1,229 students from seven countries in order to understand also cultural differences in preferences. Our dependent variables are intention to buy different types of car categories, including hybrid and electric cars. We aim to explain intentions with three categories of explanatory variables: psychological aspects, socio-demographics and site specific dummy variables. To account for correlation between our dependent variables, we use seemingly unrelated regression (SUR). We find that attitudinal factors are significant, particularly for the intention to buy more environmentally friendly types of vehicles and discuss policy implications. We observe specifically the importance of the symbolic-affective value of a car to explain car-type preferences as well as the importance of awareness to negative effects cars might have on the environment and society. We suggest these findings can be used to promote more environmentally friendly cars.