The influence of gasoline prices and consideration sets on the fuel economy of new vehicle sales
Thesis: S.M. in Engineering and Management, Massachusetts Institute of Technology, System Design and Management Program, September, 2020
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| Format: | Thesis |
| Language: | eng |
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Massachusetts Institute of Technology
2021
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| Online Access: | https://hdl.handle.net/1721.1/132862 |
| _version_ | 1826210617631965184 |
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| author | Ruckdaschel, James David. |
| author2 | Massachusetts Institute of Technology. Engineering and Management Program. |
| author_facet | Massachusetts Institute of Technology. Engineering and Management Program. Ruckdaschel, James David. |
| author_sort | Ruckdaschel, James David. |
| collection | MIT |
| description | Thesis: S.M. in Engineering and Management, Massachusetts Institute of Technology, System Design and Management Program, September, 2020 |
| first_indexed | 2024-09-23T14:52:48Z |
| format | Thesis |
| id | mit-1721.1/132862 |
| institution | Massachusetts Institute of Technology |
| language | eng |
| last_indexed | 2024-09-23T14:52:48Z |
| publishDate | 2021 |
| publisher | Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/1328622022-01-13T07:55:19Z The influence of gasoline prices and consideration sets on the fuel economy of new vehicle sales Ruckdaschel, James David. Massachusetts Institute of Technology. Engineering and Management Program. System Design and Management Program. Massachusetts Institute of Technology. Engineering and Management Program Engineering and Management Program. System Design and Management Program. Thesis: S.M. in Engineering and Management, Massachusetts Institute of Technology, System Design and Management Program, September, 2020 Cataloged from the official version of thesis. Includes bibliographical references (pages 56-57). Understanding the factors that influence consumer investment in fuel economy when purchasing a new vehicle is critical for stakeholders including environmental policy makers, automotive manufacturers and oil companies. The energy economics literature shows that consumers are relatively rational in how much fuel economy they purchase in response to changes in gas price. Yet the marketing literature suggests that consumers only consider a small number of vehicle makes/models - as few as 2-6 - when making their purchase decision. Given this, we consider the extent to which consumer's rational response to gas price changes is achieved by including different vehicles in their consideration set, versus choosing differently from within their consideration set. We analyze data from 210,885 responses to a new vehicle customer satisfaction survey collected over 9 years in which respondents state the vehicles they considered purchasing in addition to the vehicle they ultimately purchased. Our findings show that as gasoline prices rise, their purchased vehicle fuel economy increases more than their consideration set average fuel economy does, with both increasing. This is the result of considering more fuel-efficient vehicles and also purchasing higher within their consideration set fuel economy range. The degree to which the consumer adjusts is shown to correspond to the importance they place on the environment during their shopping process. Increased consideration and adoption of alternative fuel vehicles are found to be one mechanism the consumer uses to make these adjustments. Finally, we highlight how changing gasoline prices result in differing consideration set behavior for buyers of low and high fuel economy vehicles. by James D. Ruckdaschel. S.M. in Engineering and Management S.M.inEngineeringandManagement Massachusetts Institute of Technology, System Design and Management Program 2021-10-08T16:59:41Z 2021-10-08T16:59:41Z 2020 2020 Thesis https://hdl.handle.net/1721.1/132862 1263346730 eng MIT theses may be protected by copyright. Please reuse MIT thesis content according to the MIT Libraries Permissions Policy, which is available through the URL provided. http://dspace.mit.edu/handle/1721.1/7582 90 pages application/pdf Massachusetts Institute of Technology |
| spellingShingle | Engineering and Management Program. System Design and Management Program. Ruckdaschel, James David. The influence of gasoline prices and consideration sets on the fuel economy of new vehicle sales |
| title | The influence of gasoline prices and consideration sets on the fuel economy of new vehicle sales |
| title_full | The influence of gasoline prices and consideration sets on the fuel economy of new vehicle sales |
| title_fullStr | The influence of gasoline prices and consideration sets on the fuel economy of new vehicle sales |
| title_full_unstemmed | The influence of gasoline prices and consideration sets on the fuel economy of new vehicle sales |
| title_short | The influence of gasoline prices and consideration sets on the fuel economy of new vehicle sales |
| title_sort | influence of gasoline prices and consideration sets on the fuel economy of new vehicle sales |
| topic | Engineering and Management Program. System Design and Management Program. |
| url | https://hdl.handle.net/1721.1/132862 |
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