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Segmenting the Chinese New Energy Compact SUV Market: A Latent Class Analysis of Consumer Preferences
- 1 Zhuhai Yinghua Cambridge International School, Zhuhai, 519000, China
* Author to whom correspondence should be addressed.
Abstract
The burgeoning new energy vehicle (NEV) sector in China, particularly the compact SUV market, presents a dynamic landscape for consumer preferences and behaviors. This study employs a latent class analysis (LCA) to segment the Chinese new energy compact SUV market, aiming to identify distinct consumer groups with homogeneous preferences and behaviors. Utilizing a comprehensive dataset of 6,720 consumer samples sourced from a reliable automotive statistics website, the study delineates two primary consumer segments: "Luxury Brand Preference Buyers" and "Normal Brand Rejection Buyers." The findings reveal that the former segment exhibits a marked preference for luxury brands, and tends to make fewer purchases, predominantly in the last quarter of the year 2023. In contrast, the latter segment shows a strong preference for another luxury brand and a balanced distribution of purchase quantities throughout the year, with a clear rejection of normal brands. These insights are instrumental for NEV enterprises to develop targeted marketing strategies that cater to the specific needs and preferences of these consumer segments, thereby enhancing market share, consumer satisfaction, and loyalty.
Keywords
New Energy Vehicles (NEVs), Consumer Preferences, Latent Class Analysis, Marketing Strategies
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Cite this article
Zhao,Y. (2024). Segmenting the Chinese New Energy Compact SUV Market: A Latent Class Analysis of Consumer Preferences. Advances in Economics, Management and Political Sciences,109,130-136.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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Volume title: Proceedings of ICEMGD 2024 Workshop: Innovative Strategies in Microeconomic Business Management
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