Questions 196-200 refer to the following report and memorandum. Higher Gas Prices Are Affecting Car Purchase Decision The percentage of car buyers changing their mind about their next new car purchase has increased 10 points from nearly 50 percent to nearly 60 percent in the last 30 days, according to a monthly automative study conducted by Robertson Marketing Research. The survey was first taken in July, when the national average cost per gallon for gas was $1.81, and then repeated in August to find out about changes in vehicle purchase intentions as the average cost per gallon increased 20 cents to $2.01. Auto sales in the last 30 days were relatively strong with the large SUV segment seeing slight increases in sales mostly fueled by heavy incentives and rebates added mid-month. Changes in Consideration from July to August
July
August
Percentage of car buyers who already changed their mind about what they are going to buy:
22%
25%
Percentage of car buyers who are strongly considering vehicles they normally wouldn’t consider:
27%
33%
Overall percentage of car buyers considering a hybrid vehicle:
6%
12%
Overall percentage of car buyers considering an SUV:
37.2%
37.5%
Overall percentage of car buyers considering a sedan:
36.3%
41.9%
Percentage of groups who have changed their mind or are strongly considering alternative vehicles:
18-34 year-olds
41%
58%
35-54 year-olds
41%
48%
Men
34%
46%
Women
45%
52%
MEMORANDUM TO: Warren Graf FROM: Steve Weir DATE: September 28 RE: Survey Gasoline prices are soaring and it shouldn’t surprise us that automobile buyers are becoming choosier. When I opened my first car lot 20 years ago, few buyers were worried about how many miles per gallon of gasoline the cars would get. Nowadays, almost every buyer asks me about the cars’ gasoline consumption. Personally, I think the performance of SUVs is extremely overrated. In my opinion and in the opinion of many people, SUVs consume far too much gasoline and are hard to steer. I’m not saying that I wouldn’t sell SUVs. I enjoy making a profit as much as any other person. However, the skyrocketing prices of gasoline cannot be ignored. Many drivers of SUVs buy them because they feel that they will be well-protected in case of an accident. They provide good protection because of their large size and offer a lot of space of large families. To whom would Mr. Weir recommend SUVs
A. Drivers who prefer compact vehicles B. Safety-minded motorists C. Car owners who try to save energy D. Lovers of luxury cars