Impact of Sustainability on Consumers: Auto Buying Decision Team 3: S. Gunderson - S. Manghi - E. Mark – J. Rodriguez

Agenda ▫ Elaine –Assumptions ▫ Shawn –Demographics ▫ Jose – Car Options ▫ Elaine – Sustainability ▫ Steve – Analytics and Wrap up ▫ Q&A

Consumer Assumptions ▫ Couple with combined income of 200K after taxes ▫ Jobs in downtown Bellevue and downtown Seattle ▫ 1 child, approximately 6 years old ▫ Considering having one more child ▫ Saving for private school ▫ Currently own 2 Suburu Outback cars with100K miles on each ▫ Seeking new commuter car under $45K at $766 payment per month ▫ Daily roundtrip approximately 25 miles

Sustainability Factors Considered ▫ Carbon Emissions ▫ Heavy Metals ▫ Toxins from Plastics ▫ Disposal Waste and Landfill

End of Life Vehicle (ELV) Directive ▫ The ELV directive came into effect in 2000 in the EU ▫ Requires manufacturers to be responsible for reuse, recycling, recovery and treatment of their products in an environmentally sound manner

ELV Solutions in the U.S. ▫ Programs to collect and recycle Mercury switches from end of life vehicles ▫ ELVS provides education, collection materials, transportation and record-keeping ▫ Participating Members:  BMW, DaimlerChrysler, Ford, General Motors, International Truck & Engine, Mack Trucks, Mitsubishi, Nissan, Porsche, Subaru, Toyota, Volkswagen, and Volvo Trucks

Operational Definitions

Relative Importance of Attributes

Alternative Evaluation - Preference Relative to Attribute Ranking Percentage Weighting