Gasoline prices have varied substantially in the United States over the past decade, ranging from as low
Question:
Gasoline prices have varied substantially in the United States over the past decade, ranging from as low as $2.00 per gallon in some states to as high as $4.50 or slightly more in others. Consequently, when Mavis and Gerrard concluded it was time to buy a new vehicle, the factors that they would consider may have changed over time.
Fossil fuel cars, most notably those running on gasoline (while others use diesel) offer several advantages. Clearly, gasoline stations are the most accessible throughout the country, in both rural and urban settings. Automobiles come in a variety of sizes, shapes, levels of power, interior features, and degrees of luxury, and provide a variety of options. The newest models include safety devices never before available.
At the same time, both Mavis and Gerrard held sentiments about the importance of being good global citizens, which includes reducing their carbon imprint or footprint. Gas-powered cars contribute to pollution levels as well as global climate change.
At the other extreme, electric-only automobiles appear to be the most environmentally friendly. An increasing number of charging stations have become available, especially in larger urban areas.
Conversely, electric cars have range limitations. They also come with fewer options. The most notable disadvantage may be that they lack sufficient power to pass other vehicles without a long stretch of empty road to facilitate such a maneuver.
In between, hybrid cars combine many of the benefits of pure fossil fuel cars with the advantage of fuel efficiency. Gerrard and Mavis have noted that some of the major automobile manufacturers have been cutting back on production of such vehicles, primarily due to lack of sufficient demand. Such a trend may present problems in the future if repairs or replacement parts are needed for the cars.
Gerrard is something of a “car guy.” He does enjoy the status of driving a car that others might envy. Consequently, he has remained loyal to the Lexus brand in the past, believing it provides some of the prestige he seeks. Mavis is much more price-sensitive in terms of both the cost of the car and the fuel that will be needed to drive it. Mavis and Gerrard also prefer some of the newer conveniences, most notably back-up cameras that assist when driving in reverse to park.
Finally, the actual dealership matters. The couple has endured bad experiences with two local car lots, where pushy salespeople have alienated them, and the repair department only served to make matters worse.
Neither Mavis nor Gerrard actually enjoys car shopping. They would be likely to say they “endure” the process. Now, however, it was time to get started with the buying decision-making process.
3-35. Apply the concepts of evoked sets, inept sets, and inert sets to this situation.
3-36. If Gerrard chose to use an affect referral method for making the decision, what would happen?
3-37. If Mavis and Gerrard followed the multiattribute approach when making the purchase, which variables would be the most salient in their choice? Which would play roles, but would be less significant?
3-38. Explain how the cognitive, affective, and conative aspects of attitudes would play roles as the couple considers their various purchasing options.
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw