Children are more likely to drive cars similar to the brand their parents use, a new study finds.
It is no secret that parents highly influence many of their children's choices and the same applies for the brand of car they choose to use. A new study conducted by researchers from Michigan State University found that children are 39 percent more likely to buy a particular brand of automobile if their parents bought that brand.
Researchers noted that these findings could be very useful for automaker's marketing strategies and can help them target their audience better. Many automakers believe in opting for the "invest in young consumers and harvest old consumers" marketing strategy. This includes lowering prices on entry-level vehicles to attract young people and then raise prices on higher-end vehicles once they're hooked on the brand. However, this strategy only works well in the absence of inherited brand loyalty.
In circumstances where young buyers come into the auto showrooms when they are already loyal to a brands because of their parents, it might be a good idea for manufacturers to higher prices on entry-level vehicles.
"In theory, these findings could change the way automakers price and market their cars," the study authors said in a press statement.
For the study, researchers analyzed national survey responses related to auto ownership of more than 4,300 adult children matched to nearly 2,600 parents. Survey data from the families were collected every two years from 1999 to 2011.
Researchers based their preference according to auto brands such as General Motors, Ford, Chrysler, Toyota and Honda. It was found that similar factors such as budget and living area influenced both children and parent's buying decision. These findings were made after factors such as income, age, education, gender and family size were accounted for.
"Is this really about the cars or could it be other factors, like parents and children tending to be more similar to each other than other people?" the researchers said. "We're pretty sure it has something to do with the cars themselves."
Findings were published online in the Journal of Industrial Economics.
