The correlations of economic changes to the super luxury car sector

• Název práce v češtině: Vztah mezi ekonomickými ukazateli a prodejem luxusních automobilů
• Název v anglickém jazyce: The correlations of economic changes to the super luxury car sector
• Akademický rok vypsání: 2017/2018
• Typ práce: bakalářská práce
• Jazyk práce: angličtina
• Ústav: Institut ekonomických studií (23-IES)
• Vedoucí / školitel: doc. PhDr. Julie Chytilová, Ph.D.
• Řešitel: skrytý - zadáno vedoucím/školitelem
• Datum přihlášení: 14.06.2018
• Datum zadání: 14.06.2018
• Datum a čas obhajoby: 09.09.2019 09:00
• Místo konání obhajoby: Opletalova - Opletalova 26, O105, Opletalova - místn. č. 105
• Datum odevzdání elektronické podoby: 31.07.2019
• Datum proběhlé obhajoby: 09.09.2019
• Oponenti: PhDr. Mgr. Jana Votápková, Ph.D.

Seznam odborné literatury

Bibliography

1. Choi, S. (2009). Global luxury brands’ strategies to Fight recession.
2. Hofstede, G. H., (1991). Cultures and Organizations: Software of the Mind.
3. Picard, R. G., (2001). Effects of Recessions on Advertising Expenditures: An Exploratory Study of Economic
Downturns in Nine Developed Nations.
4. Hoffmann, J., Coste-Manière, I. (2013), Global luxury trends: Innovative Strategies for Emerging Markets
5. Serret, A. (2011), Impact of the economic and financial crisis on the luxury sector.
6. Salakari, H. (2013), The effect of recession on the operational performance of luxury goods companies -
Empirical evidence from the global luxury market between 2007 and 2010.

Předběžná náplň práce v anglickém jazyce

Research question and motivation

Do economic changes have an effect on demand for luxury cars? Are there cultural preferences between these brands? With many emerging markets such as China, India and Eastern Europe there are completely new markets for luxury car manufacturers in the likes of Bentley or Ferrari. However, also in western countries there are economic up and downturns, which might affect the demand for these companies’ products. That is why in my work, I want to look at these economic factors in different countries and analyze their effect on the demand for such luxury cars. On top of that, I want to see the cultural preferences regarding these brands.
Therefore, my hypotheses are:
1. Temporary economic downturns (e.g. 2008) do not negatively affect the demand for luxury cars.
2. Long-term economic downturns (e.g. Russia) do negatively affect the demand for luxury cars.
3. Above average long-term economic growth (China, Eastern Europe, etc.), positively affects the demand for luxury cars.
4. There are cultural preferences, which have an effect on the sale of luxury cars.
I am deeply interested in these brands and further understanding of the economic side of this market is something that I would love to gain. My knowledge is already fairly good. However, it will take in depth analysis in order to understand these aspects of the market.

Contribution

At the moment, there is literature on the reaction of luxury goods to economic fluctuations and it is described as “weak for the richest 5% of society” (Choi, S. (2009). Global luxury brands’ strategies to Fight recession.). This statement supports my first hypothesis. However, there is very little research on testing these claims and the actual numbers and correlations in different markets of a specific type of product. That is why I believe that my contribution will be significant. I will explore actual changes in the demand for luxury cars due to economic fluctuations and make specific conclusions. On one side, it will be interesting to have an example that goes into more detail than the broad research that has been done on this market so far. On the other hand, my findings will be useful for further understanding of the supercar market and it will help manufacturers and retailers to make better predictions based on the state of the economy.

Methodology

I will use the official data of countries in order to get the historical statistics on GDP per Capita, average incomes and growth rates, while using the annual reports of multiple luxury car producers to find out what the sales numbers in each market. From this I can create models that will provide the data that is necessary to either prove or disprove my hypotheses. For the cultural analysis, I will again utilize the data of the annual reports and analyze it in comparison to the Hofstede cultural dimensions. Here I can differentiate between the following dimensions while using the already available data:
a) The extent to which the less powerful members of organizations and institutions accept and expect that power is
distributed unequally.
b) The degree to which people in a society are integrated into groups.
c) A society's tolerance for ambiguity.
d) A preference in society for achievement, heroism, assertiveness and material rewards for success.
e) Connection of the past with the current and future actions/challenges.
f) The measure of happiness.

Outline

1. Introduction
2. Overview
a. The luxury car market
b. The main markets
3. Literature Review
4. Methodology and analysis of the underlying data
a. Temporary economic downturns
b. Long-term economic downturns
c. Economies with above average growth rates
d. Effect of cultural preferences
5. Interpretation of the results
6. Conclusion