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Uniqueness Seeking and Demand Estimation in the German Automobile Industry

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  • Marco Guerzoni
  • Rene Soellner

Abstract

This paper empirically tackles a behavioral aspect of consumer choices as a determinant of demand in the German automobile industry. Our primary goal is to refine the existing literature on demand estimation by exploring the impact of uniqueness seeking behavior of individuals. Using a dataset on the segment of compact cars in the German market, we show that consumers have an intrinsic need for uniqueness seeking, and the degree a product satisfies this need can be considered as an additional product characteristic. Finally, we can derive implication for firms’ differentiation strategies. Copyright Eurasia Business and Economics Society 2013

Suggested Citation

  • Marco Guerzoni & Rene Soellner, 2013. "Uniqueness Seeking and Demand Estimation in the German Automobile Industry," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(2), pages 179-199, December.
    • Handle: RePEc:spr:eurasi:v:3:y:2013:i:2:p:179-199
    DOI: 10.14208/ebr.2013.03.02.004
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    More about this item

    Keywords

    Demand Estimation; Discrete Choice; Differentiated Products;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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