Cadillac's Laggings Sales - Research Proposal Example

CADILLACS LAGGING SALES Introduction For many years the top-selling luxury car in North America was the Cadillac. It reigned from 1950 to 1998. In 2000, it sank to sixth, behind Lexus, BMW, and Mercedes. Cadillacs sales during 2000 were half that of 1978, Cadillacs peak year. The problem is that Cadillac appeals mainly to older males. Younger people seeking luxury car shop elsewhere. Although Cadillac made $700 million in 2000, if the company does not pick up sales among younger shoppers, profits will go the way of fins. To put Cadillac back on top, it is necessary to understand who is buying. A survey of 250 luxury car buyers was undertaken. Information was gathered from random samples of recent buyers of the luxury cars. Data was analysed using excel where a one-way ANOVA was developed to understand if there exists a variation in the purchase of the different luxury cars based on the socio-economic factors such age, income and education level of buyers on the sales of the luxury cars. Methodology Data was collected by a random survey of luxury car buyers was undertaken. A total of 250 participants who were selected through a simple random selection took part in this survey. In order to explore the relationship between the dependent variable (type of luxury cars) and the explanatory variables (age, education level and the income), we used a one-way ANOVA. Excel software was used for the statistical analysis and the graphical visualizations. Results In this section, we present the results based on the socio-economic factors. i) Age Age is one of the demographic factors that we sought to find out. Does age affect the purchase of the luxury car? To answer this question we ran an ANOVA to check whether there is any variation in the mean ages for those who purchase the various luxury cars. The results are presented in the table below; Considering the group of age that use Cadillac we can see they are about 61 years old. Meanwhile , the average of age of people who buy BMW is about 45.28years> between these two kind we can see three groups of age , they are people aged 59.5 years who prefers Mercedes Bens and 50.96 who like Lexus. It means the adults group Prefers Cadillac while the younger generation prefers BMW. Anova: Single Factor SUMMARY Groups Count Sum Average Variance BMW 50 2264 45.28 22.32816 Cadillac 50 3050 61 14.12245 Lexus 50 2548 50.96 38.61061 Lincoln 50 2975 59.5 21.39796 Mercedes 50 2612 52.24 62.71673 The ANOVA table below gives the p-value for F-statistic to be 0.000 Read More