Toyota Camry Hybrid Price Sensitivity Analysis

Topics: Toyota, Toyota Camry Hybrid, Hybrid electric vehicle Pages: 4 (909 words) Published: January 19, 2007
Market context analysis:

1.Ad of a product priced high in its category: Toyota Camry Hybrid 2.Category: Family/mid-sized cars.
•2007 Toyota Camry Hybrid: $26,200
•Toyota Camry (non-hybrid): $18,270 - $27,820 – avg: $23,045 4.Main competition in US (according to, prices according to •Hyundai Sonata: $17,195 - $18,445 – avg: $17,820

•Mazda 6: $18,930 - $27,800 – avg: $23,365
•Saturn Aura: $19,945 - $23,945 – avg: $21,945
•Nissan Altima: $17,950 - $28,400 – avg: $23,175
•Ford Fusion: $17,295 - $22,730 – avg: $20,012.5
•Chevy Malibu: $17,155 - $23,410 – avg: $20,282.5
•Mitsubishi Galant: $19,899 - $26,999 – avg: $23,449
•Total average for the category: $21,636

Price sensitivity factors analysis

1.Unique value effect

There main value emphasized throughout this ad is the fact that it's a hybrid car, with all advantages thereof: cleaner exhaust, contributing to personal (though not stated clearly) and national economy. Although Toyota is not the only hybrid car manufactured (there are others by Honda and Ford), this ad doesn't mention it and presents it as a unique value inherent to Toyota Camry. The fact that a hybrid car is not a widespread phenomenon boosts the influence of this factor. We rank its influence as high (decreasing PS).

2.Substitute awareness effect

It's difficult to compare car prices and benefits just when reading this add, though most of the information is readily available for those interested, on the internet, for example. Because of this we rank the influence as low (increasing PS).

3.Difficult comparison effect
Although it might seem otherwise, comparing value for money of different cars is not trivial at best. Although there are several major factors used in comparison (such as engine capacity, horsepower, physical size), there are plenty of secondary characteristics (ranging from turning circle and engine torque to the model of the internal GPS device and...
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