Is there an overlapping market between national car producers in Malaysia?

This paper examines how the choice of three broad categories of automobiles in Malaysia (i.e.Proton, Perodua, and foreign automobiles) is affected by a change in the price of a specific car model. Using a sample of 478 automobile owners in Malaysia, a discrete choice analysis is conducted based on t...

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Main Authors: Drebee, Hayder Abbas, Abdul Razak, Nor Azam, Abd Karim, Mohd Zaini
Format: Article
Language:English
Published: Universiti Kebangsaan Malaysia 2014
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/14853/1/jeko_48%281%29-7.pdf
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author Drebee, Hayder Abbas
Abdul Razak, Nor Azam
Abd Karim, Mohd Zaini
author_facet Drebee, Hayder Abbas
Abdul Razak, Nor Azam
Abd Karim, Mohd Zaini
author_sort Drebee, Hayder Abbas
collection UUM
description This paper examines how the choice of three broad categories of automobiles in Malaysia (i.e.Proton, Perodua, and foreign automobiles) is affected by a change in the price of a specific car model. Using a sample of 478 automobile owners in Malaysia, a discrete choice analysis is conducted based on the conditional logit model.In general, it is found that the own-price effect on Proton (Perodua) cars is negatively related to a specific Proton (Perodua) model; in contrast, the cross-price effect on Proton (Perodua) cars is positively related to a specific Perodua (Proton) model. Of the nine models evaluated, three of them show a significant overlapping market segment. This finding implies that Proton and Perodua should differentiate these products further to lessen competition between them.
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spelling uum-148532016-04-18T00:26:10Z https://repo.uum.edu.my/id/eprint/14853/ Is there an overlapping market between national car producers in Malaysia? Drebee, Hayder Abbas Abdul Razak, Nor Azam Abd Karim, Mohd Zaini HC Economic History and Conditions This paper examines how the choice of three broad categories of automobiles in Malaysia (i.e.Proton, Perodua, and foreign automobiles) is affected by a change in the price of a specific car model. Using a sample of 478 automobile owners in Malaysia, a discrete choice analysis is conducted based on the conditional logit model.In general, it is found that the own-price effect on Proton (Perodua) cars is negatively related to a specific Proton (Perodua) model; in contrast, the cross-price effect on Proton (Perodua) cars is positively related to a specific Perodua (Proton) model. Of the nine models evaluated, three of them show a significant overlapping market segment. This finding implies that Proton and Perodua should differentiate these products further to lessen competition between them. Universiti Kebangsaan Malaysia 2014 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/14853/1/jeko_48%281%29-7.pdf Drebee, Hayder Abbas and Abdul Razak, Nor Azam and Abd Karim, Mohd Zaini (2014) Is there an overlapping market between national car producers in Malaysia? Jurnal Ekonomi Malaysia, 48 (1). pp. 75-85. ISSN 0126-1962 http://www.ukm.my/fep/jem/pdf/2014-48(1)/jeko_48(1)-7.pdf
spellingShingle HC Economic History and Conditions
Drebee, Hayder Abbas
Abdul Razak, Nor Azam
Abd Karim, Mohd Zaini
Is there an overlapping market between national car producers in Malaysia?
title Is there an overlapping market between national car producers in Malaysia?
title_full Is there an overlapping market between national car producers in Malaysia?
title_fullStr Is there an overlapping market between national car producers in Malaysia?
title_full_unstemmed Is there an overlapping market between national car producers in Malaysia?
title_short Is there an overlapping market between national car producers in Malaysia?
title_sort is there an overlapping market between national car producers in malaysia
topic HC Economic History and Conditions
url https://repo.uum.edu.my/id/eprint/14853/1/jeko_48%281%29-7.pdf
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