Designing Value Proposition for Passenger Cars Based on Customer’s Preferred Attributes: An Emerging Market Perspective

With enormous economic growth in emerging markets, many business leaders want to identify the consumer insights. This study in automobile industry is an attempt to design the value proposition based on customers’ preferred attributes. By understanding the preferences of customer attributes for passenger cars, new product can be designed which are more suitable towards respective markets. In this study mainly rural and semi urban customers preferences were examined, through mix method approach. Depth interviews and focus groups were conducted followed by structured questionnaires. List of attributes was scientifically prepared and 879 responses were analyzed using univariate method. Five main constructs were studied, namely basic attributes, added attributes, dealer and network, pricing and finance, and brand related attributes. Within these main constructs 31 items were listed which were rated on a five point scale by customers. Finally value proposition has been deliberated reflecting customer’s preferences of these attributes in passenger cars. Customized strategies have been developed in the paper keeping in mind various demographic factors. This work shall fulfil the void in the literature regarding studies related to crafting value proposition. It would also benefit automobile managers by giving them more insights about consumer’s preferences and developing vehicles based on customers’ expectations and needs.