Consumer Preferences Analysis for Auto Concepts: Insights into Automobile Desirability and Demographics

In this comprehensive Statistical Analysis assignment, we delve into the world of Auto Concepts, a division of a leading US automobile manufacturer, under the leadership of CEO Nick Thomas. Our analysis explores vital consumer insights and market dynamics, providing a deep understanding of the challenges and opportunities in the automotive industry. Through demographic profiles, concern for global warming, and preferences for innovative automobile models, we reveal valuable trends and preferences among American households. Additionally, our inferential analysis and hypothesis testing offer crucial insights into consumer behavior. Join us on this journey to uncover the pivotal data shaping Auto Concepts' strategic decisions.

Problem Description:

Nick Thomas, CEO of Auto Concepts, a new division of a major US automobile manufacturer, is facing market challenges and wants to align the company with changing trends in the automobile industry. They are considering alternative fuels and IoT features in their vehicle designs. To make informed decisions, they conducted a survey among American households to understand consumer preferences and attitudes. Celeste Brown, the data analyst, is tasked with analyzing the data to provide valuable insights.

Case Study Objective

The objective of this case is to analyze consumer preferences and attitudes in the context of Auto Concepts, a division of a major US automobile manufacturer led by CEO Nick Thomas. Auto Concepts is faced with the challenge of losing market share and aims to align its future automobile designs with changing industry trends. Specifically, they are considering alternative fuels and IoT features. To inform these decisions, they conducted a survey among American households.

The goal of this analysis is to provide insights on consumer demographics, concerns about global warming, desirability of various automobile models, traditional and social media usage, and to conduct inferential analysis including hypothesis testing on desirability and examining gender-based market segmentation. This information will guide Nick Thomas in determining the company's direction in terms of automobile design.

Demographic Composition:

The sample displays a diverse demographic composition. Of the respondents, 44% were female, 89% were married, and 76% were aged between 25 and 44. Approximately 70% earned between $50K and $125K, and 63% had a college degree or higher. The majority (64%) resided in mid-sized cities with populations between 100K and 500K.

Table 1: Demographic Composition

Concern for Personal Responsibility and Global Warming:

Around 74.6% of respondents expressed some level of concern about global warming. In terms of personal responsibility for fuel economy, 58% were in strong agreement. A Chi-Square test indicated that concern for global warming and taking personal responsibility for fuel economy are independent.

Desirability of Automobile Models:

The most desirable car in the sample was the 2-Seat runabout hatchback gasoline hybrid, with 39% finding it desirable, followed by the 4-Seat economy diesel hybrid (28%). The 1-Seat motorcycle electric was the least desirable, with 70% finding it undesirable. The analysis reveals that hybrid models are generally more desirable than electric or gasoline-only cars.

Table 2:Desirability of Automobile Models

Traditional Media Usage:

Traditional media usage is significant among respondents. For TV, 20% watch movies/mini-series, 18% watch drama shows, and 16% watch sports. In radio, 40% listen to pop and chart, and 16% to Jazz and Blues. Magazines are popular for various types of content.

Table 3: Percentage of Traditional Media Usage

Social Media Usage:

Social media usage is more limited among the middle-aged sample. About 34.5% have never used social media, while 25.7% use it 1-2 times a day.

Table 4: Percentage of Social Media Usage

Inferential Analysis:

Hypothesis Testing on Automobile Desirability:

Hypothesis tests were conducted on the desirability of automobile models. The results showed that the desirability of 2-Seat runabout sport electric and 2-Seat runabout hatchback gasoline hybrid was close to the Auto Concepts' beliefs. However, 1-Seat motorcycle electric, 4-Seat economy diesel hybrid, and 5-Seat economy gasoline deviated significantly.

Table 5: Hypothesis Testing on Automobile Desirability

Gender-Wise Market Segmentation:

Gender-wise market segmentation is relevant for the 4-Seat economy hybrid model. A Chi-squared test between gender and preference for this model yielded a significant result, indicating a gender-based association.

Table 6: Gender-Wise Market Segmentation

Preference for Radio and Television:

The preference for radio and television cannot be tested directly due to different category types.

This analysis provides Auto Concepts with valuable insights into consumer preferences and attitudes. It can guide Nick Thomas in making informed decisions about the future direction of the company's automobile design.