CASE 1.2 INTEGRATED CASE Auto Concepts Nick Thomas is the CEO of Auto Concepts, a new divi- sion of one of the largest U.S. automobile manufacturers with multiple divisions representing several auto and truck brands. This company has been slowly losing market share to other competitors. Auto Concepts was created to develop totally new models that are more in tune with today's changing automobile market. A primary consideration in this development effort is the U.S. Department of Energy's Clean Cities Initiative that advocates the use of alternative automobile fuels such as propane, natural gas, biodiesel, electric, hybrid, and/or ethanol. At the same time, man- agement believes that the Internet of Things (IoT) with its E 7 Specialties: Two... TUPAT- The Internatio... capabilities of safe mobile connections, self- or assisted- driving, infotainment, on-board diagnostics, and more will be a prominent part of future vehicles. Nick Thomas knows he must come up with some in- novations in automobile design and engineering, but he is not certain in which direction he should guide his divi- sion. Nick realizes that he needs to find out what consum- ers' attitudes are toward fuel prices and global warming. This knowledge will help him determine a direction for the company in terms of automobile design. Nick also needs more data on consumer preferences. Will they want to stay with today's standard compacts or hybrids, or might they Marketing Research REVIEW QUESTIONS/APPLICATIONS 17 be interested in radically different models that promise much higher fuel economies? 1. In the development of new automobile models, which of the following should Nick be primarily concerned with and why? a. Engineering and production feasibility b. The brand image of his division's parent U.S. auto- mobile manufacturer K c. Technological innovation d. Consumer preferences 2. Should Nick use marketing research? 7 Discussion Question Sept. 10th - Sept. 17th: Should Nick Thomas conduct the research - why or why not. If he is to conduct the research what type of research should he use and what information should he gather? Begin by stating what the purpose of the research should be and how your recommended method fits with this purpose Either initiate the discussion or provide illustrations that support or oppose contributions made by your classmates.